Big Bird Wants To Teach Your Children About Money

Image by LR_PTY via FlickrBecause of our current economic climate, financial literacy, or lack of it, is in the forefront. Teaching of these vital skills have been put on the back burner at many schools. Researchers and educators think it's time to bring financial education back to the schools and even to the very youngest of children. Even without a basic organized education, children are being educated by their parents whenever Mom and Dad use a credit card or use an ATM. Through observation of their parents behaviors in life, children are learning behaviors, both good and bad.

There is a lack of educational materials to help teachers in the classroom. To combat this lack of educational materials for children to use to learn about money, Sesame Workshop has started a program called "For Me, for You, for Later: First Steps to Spending, Sharing, and Saving". With a 100 million dollar program, over a ten year period, Sesame Workshop has developed a learning experience for children. This program is being paid for by PNC Bank.

All this is happening at sesamestreet.org/save and pncgrowupgreat.com. Also more video content is available at Itunes and Amazon.com VOD. The titles to search for are called "Learn Along with Sesame".

At Sesamestreet.org/save there is a large amount of teaching materials amount money lessons. There are games to play, videos to watch, and printable items for fun and learning. All the Sesame characters are used in the videos to teach about money and the proper ways to use your money.
What's Being Taught?

The foundational teaching is concerned with showing the children to properly use their personal money. They are taught that you divide your money up three ways. In three separate piggy bank jars you label each jar "Saving, Giving, and Spending". The saving jar is to teach how you must save for future wants and needs. The Spending jar is for current purchases, and the giving jar is used to help others. In the videos, children are shown with their parents shopping with their spending jar, at the toy store. Also the children use their savings jar to save money to buy a more expensive item, sometime in the future. There are videos showing how the giving jar is used to buy cat food for abandoned cats at a shelter.

These videos are at the perfect level for small children. There are no religious subjects mentioned. Also purchases by a small child is are mainly things a 8 year old would like to buy. All the materials are politically correct and do not step on anyones toes. It's nice to see how basic moral values could be taught without bringing in any specific religion.

The website has many things to explore. Your child's favorite characters like the Count, Elmo, Cookie Monster, and others also appear. There is a mobile site if needed. Also there are parent-educator materials to help in implementing the great content. Also on the site are more links to Sesame Streets interesting educational websites.

I liked the idea of using Sesame Streets well known characters to teach a basic foundation on money. The three jar system is a great stepping stone to more mature teachings in the future. I was surprised at the section on the teaching of "Giving". That was the hook that got me interested in the program. They could of just of taught about saving and spending, but the giving part, helps you teach on being unselfish. A hard concept for to teach a 5 year old. 

How To Save $1000 Per Year On Groceries Without Clipping A Single Coupon

Image via WikipediaThe cost of food and gasoline has been rising at a disturbing rate for a long time now. The rising prices at the supermarket can sometimes make a big impact on the families budget. Finding ways to save money on food is especially important, today.

The cost of food and beverages has jumped 3.5% in the last year according to the Consumer Price Index that the US Bureau of Labor Statistics compiles. This percentage seems to low according to my own shopping experience.

Researchers have found consumers waste about 15 percent of their food every year. That amounts to about $1500 of wasted food for each household. On average, an American households that earns $52,000, spends 20% of their income on food purchases. Also according to the USDA a family of four spends between $611 to $1,200 on food every month. So reducing 20% of that waste can amount to a savings of $1000.

Prepare only the amount of food you will actually eat or store it in the refrigerator to eat the next day. My biggest beef is that people throw away good food after they have made too much for a meal. If there is food leftover, store it in the refrigerator for a left-over meals later in the week.

For one week a month, eat only what is in your house, so you can clear out your pantry. If you revolt at eating asparagus soup, well, you know never to waste your money again. You can sometimes extend this technique for a longer time period depending on the amount of food you have. Out of habit we tend to keep our refrigerators full like the apocylype is going to come and the stores will be closed for months. Don't fall for this, some people have a discomfort upon seeing a half empty refrigerator. Our they thinking they are Mother Hubbard and the cupboards are bare.

Don’t shop when you are hungry. Studies show consumers buy more on an empty stomach — including items you end up throwing away. This a big one for me and it's so true. You start to get a taste for a particular item and it's usually an expensive one.

Buy only the fresh fruit and vegetables you know you will eat before they rot. If you buy three bananas, for example, plan on eating one a day. Bananas and tomatoes are the worse offenders. Before you know it they are to over ripe to eat. Don't purchase any fruit or vegetables without having them incorporated into you meal plan.

Don’t let coupons and buy-one get-one offers lure you into buying more than you can use. The thrill of a bargain isn’t worth dollars wasted in never eating the food. This is where people waste money. The thrill of the deal does not last very long when you have bought something you rarely use or need.

Have a plan to consume the food you buy. Don’t impulsively pickup groceries that may sit on your pantry shelves. Remember, even cake mixes have a shelf life. Food can be frozen for about three months before it risks losing taste or absorbing aromas from other items.

Take home a doggie bag when eating out. Even the free bread and chips and salsa can be taken home. Don't feal bad, the restaurant just throws it away. My wife has made this into an art form. She can make one restaurant meal last for days. We take home the bread, extra dressings and everything we can scrape up.

Pull the plug on that second refrigerator. There are some homes that keep an extra refrigerator in the garage. This only encourages buying more food to fill it. When we had 6 kids in the house we needed it because we went through 4 gallons of milk per week. I suggest to pull the plug on it and just use the kitchen refrigerator. Putting all your food in the one refrigerator, makes it look like you have plenty, filling it up will keep you from thinking you need to go shopping.

Saving money on food isn't hard, it takes planning and paying attention. When you see the rising prices on bread, milk, eggs and juices everyday it can be very motivating to have a  plan and save some cash.

The New Google Advisor Is Your One-Stop Source For Financial Products.

Image via CrunchBaseGoogle has launched a website where you can get information on mortgage, credit card, CD, or checking and savings accounts. This type of information has been the life blood of many personal finance blogs for many years. Now here is a one stop place to get all types of financial products.

We’ve all experienced the hit and miss associated with comparing financial products such as mortgages or credit cards. Often information is presented in an incomplete or otherwise opaque manner, and comparison between businesses and offers is confusing. Google has taken up the challenge of simplifying the process by creating a new service, Google Advisor, that makes it easy for users to compare products side by side.

Quote from the Official Google Blog

Financial decisions may be some of the most difficult decisions we face—whether it’s finding the right credit card or understanding the impact of paying an extra point on a mortgage. And these days, it seems like we have more financial options than ever.To help solve these problems, we began testing a mortgage comparison tool in 2009 and have added other financial products such as credit cards, CDs, checking, and savings accounts. Today, we’re rolling these tools into one place: Google Advisor, a site designed to help you quickly find relevant financial products from many providers and compare them side-by-side. Google Advisor is currently only available in the U.S.

Mortgage Results Page

I tried out the Mortgage function by entering my information. I clicked on refinance. Then value of the home, mortgage balance, cash out, loan type, and points. My state, county, home type was already entered magically. I was given 21 results. The list consisted of mortgage lender, interest rate, APR, Fees, points, and Contact details. As I enter different details the page updated dynamically. If I found one I wanted to pursue the contact details had links to email or phone numbers, and hours of operation. Overall a very thorough and well laid out page.

Credit Card Results Page

The Credit Card section results was divided by balance transferred, Intro purchase APR, Cash back, Air Miles, And Points. There was a total of 87 credit cards offered on this page. It states on the page that Google receives no commission from when you click on an offer. Also that the credit card information is updated twice a week for accuracy. The credit card results page can be sorted by intro APR, Ongoing APR, Annual Fee, and Reward Type.

CD Results Page

The CD section results allows you to enter the amount to deposit, maximum term,and account type. Whether it's a regular account or an IRA. The results page is divided up into columns APY, Minimum Opening Balance, Term Length, Actual interest earned for the term, Early Withdrawal penalty, and Apply details. There is a link to apply online.

Savings Results Page

The Savings Section asks for savings amount, regular savings or money market, and zip code. The results are displayed by name of institution, APY, Minimum to open, Monthly fee, Interest earned, and details with a link to apply online.

Checking Results Page

The Checking Section wants your initial deposit, a check box for no monthly fee and interest checking, and zip code. There is a check box if you want to exclude Internet only banks. The results give you Bank name, APY, Minimum, monthly fee and details with an apply online link. In the checking and Savings account section you can also search by a specific bank.

Again, Google is saying they receive no compensation on the credit card, CD's, checking, and savings applications. But on the mortgage page, Google does admit they get paid when you contact a lender through the site.

I like the overall experience of Google Advisor. It's laid out well for navigation. The search results are many. I also especially like the link to apply for the products, it takes you to the actual site to make an online application, making the application progress almost painless.

The only other competition to Google Advisor is Bankrate.com. Bankrate.com has more bells and whistles than Google. But I'll have to give it to Google for an easier to navigate interface. Bankrate's interface is a little dated and could use a little modifying.

Give Google Advisor a try. advisor.google.com

Drinking Coffee Is Now Good For You

Image via WikipediaGood news today on the health front. Coffee drinking is now a healthy thing to do. A leading study out of the Harvard School of Public Health claims drinking one to 3 cups of coffee per day lowers your risk of prostate cancer by 30%.

Also other findings state.

• Men who consumed the most coffee (six or more cups daily) had nearly a 20 percent lower risk of developing any form of prostate cancer.
• The inverse association with coffee was even stronger for aggressive prostate cancer. Men who drank the most coffee [six or more cups!] had a 60 percent lower risk of developing lethal prostate cancer.

This study followed 48,000 Boston men for 12 years and found that those who drank six or more cups a day reduced their risk of developing aggressive prostate cancer by 60 percent and of developing any form of the cancer by 20 percent. The study even found a risk reduction in men who drank about three cups a day.

More Studies.

Another study followed 5,929 Swedish women, half of whom had breast cancer, and found that those who drank more than five cups of coffee a day reduced their risk of developing estrogen receptor-negative breast cancer (a particularly aggressive type of the disease) by 33 to 57 percent compared to those who drank less than a cup.

Caffeine is credited with a host of health benefits, including cutting the odds of asthma, Alzheimer’s and multiple sclerosis. But in this case, the researchers believe that other plant chemicals in coffee are behind the benefits. They think compounds such as anti-oxidants may cut the odds of prostate cancer and reduce the likelihood of deadly tumors by altering levels of sex hormones, regulating blood sugar levels and cutting inflammation.

Be Skeptical

I am always skeptical of such conclusions from these studies. Remember, 30 years ago Harvard had another study that claimed too much coffee increases the risk of pancreatic cancer among men and woman. Ooops!

All this medical information neither sways or encourages coffee drinking. People who do or don't will continue with their opinions.

Coffee drinking is a part of our culture. Coffee is the way we start our day. It's the same with everything in life, if done in moderation you will be fine.

5 Costs Homeowners Pay That Renters Don't

Image by GreyArea via FlickrThe debate over Renting vs. Home Ownership goes on. The common advice is "Don't waste your money on rent, invest in a House." With the many costs of home ownership, renting is starting to look a lot better. Lets start with the down payment. Renters don't have to pay that big up front expense. The home owner has the pleasure to also have a nice mortgage payment to make every month for thirty years. That's quite a long lease. Plus if home owners don't pay they get foreclosed on, renters are just evicted.

Property Taxes

These are the taxes paid to your local and state governments for salaries and services of government. It's a never ending expense that just goes up as the value of your home appreciates. They vary according to region. Looking at the property taxes for the home is important when your purchasing. Sometimes living in a different county can sometimes lower your taxes because of differing assessments.

Home Maintenance.
Renters are lucky because when the water heater breaks they just have to call their friendly landlord to fix it free. The home owner has to go through the expense of buying and paying to install a new one. Maintenance is a big factor in home ownership. The rule of thumb is to set aside 1% of your homes value for yearly repairs. On a $200,000 home, you will need $2,000 per year. I believe this is a low figure. I would estimate that 4% is the necessary amount needed for home maintenance, at least $8,000 per year for a $200,000 home.

Mortgage Interest.
Again renters win. Over the duration of a 30 year $200,000 mortgage at 5%, the home owner gets the privilege of paying over $200,000 in interest. The amount of interest depends on your interest rate and your duration of the loan. The benefit of paying interest is home owners receive a mortgage interest deduction on their tax return to ease the pain a little.

Homeowners Insurance.
Renters don't have to pay this expense, but they should carry renters insurance. Renters insurance covers the contents of the apartment. Home Insurance covers the structure itself and sometimes the mortgage payoff amount. If your home is lost to fire, flood or other disaster home owners insurance comes in to save the day and puts everything right again. Homeowners should yearly check their policies to see if they have replacement cost on their insurance, not just current value. The average insurance is $950. But if your living in a hurricane, tornado, or flood plane your insurance can be substantially higher.

Real Estate and Legal Fees.
When you rent you just leave a deposit and first months rent and you then get the keys. A home owner has to pay real estate agent fees, lawyer fees, title transfer fees, and closing costs when purchasing and selling a home, renters don't have any of these expenses.

It's understood that landlords pass on these fees to their tenants who rent. Yet landlords get the profit that comes when a home is sold. Even though a mortgage payment can be lower than a rental amount, many other things go into the finances of home ownership.

Your Perception Is Always 20-20 But Your Looking In The Wrong Direction

Image via WikipediaIf you watch the TV on a regular basis, listen to the radio, or surf the Web you will hear and see that the economy is on the brink of collapse. Bad news seems to be in an ever abundance these days. From the tsunami in Japan, European economies on the brink, Medicare and Social Security in danger of failing, and our incredible debt; it can keep you up at night. Bring it down to your own situation. How's your personal economy?

We all are on different points on our life's path. Some are doing better than others. Personally, times our a little tough. My income is down and my expenses are continually rising. But for some, things are looking pretty good.

A friend of mine, ten years older than me, has recently retired. He has a pension from the state, a sizable investment portfolio, Social Security and Medicare. With all that, he lives very comfortably. His house and car are paid off and he has no debt. But the icing on the cake is he has been hired part time at $45 per hour in the same type of job he had before; and he can set his own schedule to work only when he wishes to. Not bad!

If I ask my friend how the economy is, he responds, "Pretty Good!". When we think about our personal economy we judge it by how well we are doing financially in our own lives. Our neighbor can be out of work and in foreclosure and it won't effect our perception. The neighbor's perception of the economy is that it's in the toilet and that he will be standing in a soup kitchen line any day now.

Perception is key here. It's hard to feel the pain of others, but easy to feel our own. What we all need to do is turn off the news and Internet. Get out a book, watch sports, go on a picnic, or just take a walk. Look around you and see a wonderful world. Visit your kids and shut the noise out. Get a hobby or just spend time with family. Soon you will see that your perception will change. You will see that things are not so bad and you will have the energy again to work through your problems.

In life, we walk a path of hills and valleys. For most now we are in a pretty deep valley. Valleys in the world usually never continue forever. By definition valleys are surrounded by hills and mountains. Soon we will be approaching the hills again, followed by mountains. It's going to take a while though.