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Re-imagining the 3 Little Pigs
Re-imagining the 3 Little Pigs
By Bob Masterson
Once upon a time there were three little pigs who were sent off by their mother to go out and make their fortune. Mother Pig’s final words were, “work hard, do your best; good fortune will find you, I do not jest.”
Now the first little pig wasn’t buying into this hard work advice. “I don’t have time for all this,” said the first little pig. “I have fun things to do that I just won’t miss.” So the first little pig built his house out of straw because “hey,” it’s the easiest thing to, leaving plenty of time for play.
The second little pig wasn’t too eager to work hard either. “I’m too tired and need my rest,” said the second little pig. “I’ll just build something easy out of sticks and save my best for after I slept a few ticks.”
The third little pig listened to his mother’s wise words and said “I don’t plan to live like the birds. No straw nor sticks will do for me; I plan to build my house solidly.” With his goal clearly defined and a budget in mind, the third little pig developed a plan and a timeline. “With a little hard work and some shopping around, I’ll have my brick house to keep me safe and sound,” said the third little pig.
“Look at how hard our poor brother works,” laughed the first two little pigs. “Every day he toils, while we nap and have fun all day in the sun.” Through weeks of hard work, anticipation, and saving the third little pig was now ready to build. With supplies all purchased and a nice plot of land, he built a fine brick house just like he planned.
A short time followed when along came a wolf, who loved fat, little piggies of which he could not get enough. The first house he saw was the one built of straw. The big bad wolf said “Hey little piggy, let me come in, or I’ll huff and I’ll puff and I’ll blow your straw house in!” “Not by the hair of my chinny chin chin!” said the first little pig. But being a house made out of straw, it didn’t take much, before the big bad wolf had himself a delicious pork lunch.
The following day while meandering along, the wolf spied a plump little pig humming a song. When the little pig saw the big bad wolf coming, he dashed into his stick house and stopped his happy humming. “Hey little pig, I like your gig,” said the big bad wolf with a smile. “Why don’t you invite me in and we’ll jam awhile.” “Not by the hair of my chinny chin chin!” sang the second little pig. A huff and a puff seemed to be enough and that plump little pig soon became some tasty stuff.
Liking the town and easy pickings he found, the wolf decided to hang around. The wolf later came to the nice house of bricks and with great confidence proclaimed, “Little pig, little pig, your brothers made it easy and so should you, now open your door, it will be over in a few.” “You can huff and you can puff, until your blue in the face, but this is one little piggy I’m sure you won’t taste.” said the third little pig. So the wolf huffed and he puffed and he puffed some more, but the house would not budge as did the houses before.
But being sly and determined, the big bad wolf was not one to give up easily. “I’ll just climb up the roof and slide down the chimney,” thought the proud wolf to himself quite grimly. But staying one step ahead, the little pig built up a roaring fire instead. Then placing a large kettle of water on top, it wouldn’t be long before the wolf went plop. So with a tumble, a slide, and a big KERSPLASH, the third little pig’s troubles were over in a flash.
While sitting at table enjoying his great feast, he recalled his mother’s sage advice: “Work hard, do your best, and good fortune will find you.” The little pig proved this when put to the test. And the little pig lived happily ever after.
Copyright Re-imagining the 3 Little Pigs © 2011. All rights reserved
What Teens Really Know About Money
By Bob Masterson
How financially savvy are our teens when it comes to money? Charles Schwab recently released their 2011 Teens & Money Survey Findings and I was quite surprised by the results, especially when comparing them to 2007 results. This annual survey polls more than 1,000 teens 16 to 18 years old and provides insights into their money attitudes, behaviors and expectations.
When it comes to being savvy about money, the line between what teens think and reality is as wide as the Grand Canyon. Most teens surveyed believe they are financially savvy. But when asked about specifics such as establishing good credit, balancing a check book or what a credit score is, the majority of teens were in the dark. In fact there is a notable decline in teen’s knowledge of money management skills between 2007 and 2011, especially around how to balance a checkbook or check the accuracy of a bank statement. Of course a key contributor to this decline could be that far fewer teens have saving or checking accounts than they did in 2007.
On the positive side, the recession has had a significant impact on teens especially around the importance of saving and 73% of teens feel it’s important to have an emergency savings. Teens also reported a shift in their mindset with 64% saying they are more grateful for what they have and listen to this, 56% say they have a greater appreciation for how hard their parents work. Another positive from this recession is it has produced more discussions within the family about money and money management.
80% of teens surveyed, up from 53% in 2007, said learning about money management, including budgeting, saving and investing is one of their top priorities with 82% of the teens saying they primarily learn about money management from their parents. Teens stated they would like their parents to talk with them more about investing, establishing good credit, career aspirations and how to budget their money.
So what does this tell us? Most importantly we need to narrow the financial literacy gap between where teens think they are and where they actually are. On the plus side teens have expressed the desire to learn about money management, which is the most important step in moving forward.
Education begins in the home and it’s never too early to begin. Kids are forming their opinions and behaviors around money at a very early age by watching us parents in how we handle and manage our money. This was the primary reason FamilyMint was developed, to act as the modern replacement for the piggy bank, where kids can learn about money management and goal setting in a safe, interactive environment, while emphasizing the importance of saving, setting and achieving goals.
Copyright What Teens Really Know About Money © 2011. All rights reserved
Story of Goldilocks and the 3 Imitation Bear Skin Rugs
Story of Goldilocks and the 3 Imitation Bear Skin Rugs*
By Bob Masterson
Once upon a time there was a girl named Goldilocks in search of a new imitation bear skin rug for her room. She had worked hard to save up $500 for this purchase. The first rug Goldilocks looked at was by the famous designer, L’bear. L’bear’s rugs were all the rage, but with a hefty price tag of $1,000, it was much more than Goldilocks had saved. But it was so soft and luxurious!. “Of course,” she thought, “I could just charge it. Just think of what all my friends would say when they found out I had a genuine L’bear rug of my own.”
But not wanting to make a rash decision as she worked hard for her money, Goldilocks decided to look at a couple more rugs. The next rug she looked at was made by Fuzzy Wuzzy in a country far, far away that was not known for making the best quality products. This rug was only $200, far below her budget and thus very tempting to purchase. The rug was not as soft as the L’bear rug and the back of the rug seemed much thinner as well. “But the rug is only $200,” thought Goldilocks, “think of all the money I’m saving and what else I could purchase with the difference.”
Of course there was still one more rug to look at before Goldilocks made her decision. This rug was made by Grizzly, a well known reputable rug manufacturer that had always been ranked high in quality. The Grizzly rug felt soft and luxurious like the L’bear rug, seemed very well made and at $495 this rug was within her budget.
Now Goldilocks had to make a decision on which rug she was going to purchase. Should she purchase the famous L’bear designer rug that was double what she wanted to spend, but would greatly improve her status among all her friends? Reflecting on this Goldilocks thought to herself, “It’s not worth the extra debt I would be getting myself into for the brief thrill of showing off a L’bear designer rug.” So she crossed that one off her list.
Next she reflected on the Fuzzy Wuzzy rug and all the money she could be saving. She could even buy two rugs at that price. The temptation to purchase a lesser quality rug for the savings was great. But thinking back to her mother’s wisdom of “you get what you pay for,” Goldilocks thought better and did not purchase the Fuzzy Wuzzy rug. Besides, Goldilocks said to herself, “Fuzzy Wuzzy was an imitation bear that tended to lose its hair and even with great care, she’d be forced to buy a new one in a year.”
So turning to the Grizzly rug, Goldilocks proclaimed “This imitation rug is just right!” and made the wise purchase taking into consideration quality, reputation and price and lived happily ever after.
The moral of the story is…money takes a lot of hard work to earn so we want to make that money work hard for us. Making thoughtful decisions in purchasing the things we want or need will save us money and headaches down the road. Buying something because it’s cheap will often make you weep, and to purchase to impress never works out for the best. Most often paying a reasonable price for good quality will pay for itself in the long run.
*No real bears were harmed in the creation of this story
Copyright Story of Goldilocks and the 3 Imitation Bear Skin Rugs © 2011. All rights reserved
Amazon Mom
We learned of a new program Amazon recently launched called Amazon Mom. In the spirit of sharing great ways to save money we thought we’d share it with you. Here are the details:
- It’s free.
- You get 3 months of Amazon Prime shipping, and for every $25 you spend in the Baby Store, you get an extra month of Prime shipping (up to a year).
- It’s not just for moms. Anyone that has kids (mom, dad, grandparent, etc.) can join.
- 30% off diapers & wipes (if you sign up for subscribe & save)
- Some other benefits of a full paid Amazon Prime account like instant streaming videos are not included.
We love Amazon and this seems like a pretty good deal. We’ve tried Amazon Prime in the past and, although it can be addictive to get stuff shipped in just 2 days, we didn’t find that we really had the urgent need for speed enough to pay for it. However, add some sweet discounts through Amazon Mom and make it free… and it’s worth another try!
See more details and sign up here:
Amazon Mom
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.Copyright © 2011. All rights reserved
You Can be Frugal and Green
By Annette Kingsbury
Everyone wants to be “green” these days, but there’s a common perception that environmentally friendly is expensive. It doesn’t have to be that way.
“I have always been frugal and it pairs well with being environmentally conscious,” says my friend Heather. She’s not just blowing smoke; a stay-at-home mom, she’s recently been searching for work after her husband lost his job. But she won’t give up her environmental bona fides.
“There are certain things I won’t compromise, like quality food,” she says. She’s cooking and baking more now from scratch and skipping unnecessary purchases. “Instead of gym membership this summer, we have county and state park passes and this will be a year for the beaches. We also plan some bike path adventures and regular attendance to the free park concerts,” she says.
So far, so good. But there’s much more a family can do to be frugal and green, especially when shopping for routine needs. Simplemom.net, a Web site whose goal is to make everyday life less expensive, suggests turning away from single use, disposable products. Things like paper plates and all the cleaning products so heavily advertised now, such as sheets used for dusting, scrubbing and mopping.
Disposable may be convenient, but it’s not cheap, and it’s certainly not green. When contemplating packaging, don’t settle for recyclable. Ask yourself: Was this made from recycled materials? Do I really need it? What would Grandma use?
Eating local is another way to be green, according to simple-green-frugal.blogspot.com. Not only is your food more nutritious because it’s picked at the right time, it also hasn’t been trucked hundreds of miles, using up gas and emitting greenhouse gases. Local farmers markets are a great way to open up your menu to whatever is in season and try something new. If you don’t know where your nearest farmers market is, check out localharvest.org. Then sit back and enjoy truly ripe fruits and vegetables at very competitive prices.
Copyright You Can be Frugal and Green © 2011. All rights reserved
How to Start a Nest Egg
By Annette Kingsbury
My dad has a cute little saying he uses to explain his philosophy of saving money: Pay yourself first.
It’s his simple explanation of how he and my mom, despite raising six kids, managed to save enough money to see themselves comfortably through 20 years of retirement (and counting). “Pay yourself first,” means that money goes into savings for the future first, before it goes into Mom’s or Dad’s (or the kids’) pockets.
Like many of his generation, my dad entered World War II as soon as he was old enough, then returned home after the war to get a job, start a family, and go to college on the GI bill. As soon he was eligible to get into his employer’s investment plan via payroll deduction, he did so.
“Mother and I talked about it once, and we never talked about it again,” he said. “I considered it an emergency fund.”
The fund was occasionally dipped into for major emergencies. But by and large it sat there and grew. Over the years Dad diversified his investments, but rarely took risks.
This philosophy has served him exceedingly well. Though he never could have imagined his employer, General Motors, going bankrupt, he saved enough in other solid investments to stay on an even financial keel.
As the oldest of those six children, I can tell you that it wasn’t always easy. We didn’t take vacations, but there was always food on the table. Though I didn’t know about Dad’s plan as a child, I grew up with an abiding sense of the value of hard work.
Today’s parents can set the same example for their kids, who are bombarded with all sorts of expensive, “must have” electronic gadgets du jour. No matter how your child earns money, teach her how to save it, if only as a stepping-stone to bigger and better down the road.
How to start a nest egg? Simply start.
Copyright How to Start a Nest Egg © 2011. All rights reserved
5 Money-Smart Shopping Tips
By Bob Masterson
Who doesn’t like to shop? Oh, I know there are guys out there that will say they hate shopping, but you catch them on the web surfing for a new Ipad or the latest and greatest gizmo. We’re a consumer society. That’s what we do…we buy stuff. But there’s smart shopping and not so smart shopping. Who wants to be a smart shopper? Well here are 5 tips to help you and your kids stretch your dollar:
1. Plan ahead. What? That’s crazy talk. No, seriously, impulse buying is the root of all shopping evil. By planning ahead, you have the opportunity over time to determine if what you’re planning to buy is something you really want. Ever hear of buyer’s remorse? We all go through it. Buying something and ten minutes or days later thinking to ourselves, “Why did I buy it?” Planning helps to avoid buyer’s remorse. The other great thing about planning ahead is it allows you to save. That’s a bonus. Have your kids set up a goal in FamilyMint and learn how much fun it is to plan, anticipate and achieve!
2. Make a list. Well yes, this is the same as planning ahead. Good catch. Any time you run off to the store, make a list and stick to it! This will help you avoid the root of all shopping evil – impulse buying.
3. Compare prices. Whether it’s a big purchase or a small purchase, do your homework. In the grocery store, it’s easy…multiple brands of the same product are before you…it’s up to you to decide generic or brand name. You can do the same of course on the web. There are numerous resources out there that provide price and product comparisons and reviews. Just do a search for the product you wish to purchase. Referring back to (1), by planning ahead you have the time to do the research and get the very best price for what it is you want. Oh yeah, don’t be afraid to consider buying used. You can save a bundle. Just be sure it’s a reliable source you are purchasing from.
4. Don’t fall for sales tricks. Stores know our buying behaviors. They’ve spent millions studying it and refining their tactics to squeeze out every last dollar from you that they can. Why do you think they have loaded up their check out areas with stuff to buy? Because they have your attention and understand our nature to buy on impulse. I’m in the sporting goods store and I’m presented with candy and toys at the register. Why yes, a Snickers bar would hit the spot about now. Impulse purchases are the quickest way to a light wallet. Refer to (1) above.
5. Save the receipt. Even though you planned and made your list and compared prices, this doesn’t mean you won’t still change your mind after you have brought your purchase home. Or by chance, the very next day, the item you just purchased goes on clearance for half what you just paid for it. If you have kept your receipt it will be easy to return your purchase or get a price adjustment.
We’d love to hear all the ways you shop smartly.
Copyright Are you and your kids smart shoppers? © 2011. All rights reserved
The Personal Story of a FamilyMint Family
I met Dave & Jill Spieldenner last summer and we quickly found we shared a passion for kids and financial literacy. The Spieldenner’s have been coaches for organizations such as Crowne Financial and Veritas Financial. I found their personal story fascinating and the journey they’ve been on one to learn from. They’ve graciously agreed to share some of their story, perspective, and advice in the FamilyMint Blog and this is their first entry. – Jeff
Introduction to the Spieldenner F
amily
When Jeff Eusebio invited me to write on the FamilyMint blog, I immediately started to struggle with deciding which awesome tid-bit of wisdom I would share with my very first blog entry. What came after that was several months of writer’s block. The pressure was so great, and I had several starts with brilliant ideas that transformed into mediocrity that could not possibly represent my first blog entry. Today, I decided to do a simple introduction in order to break the ice.
My wife and I have been married for 13 years this August. Through most of our married life we have lived in Northwest Ohio, not too far from where we grew up and went to high school together. Our oldest son was born the October after our first wedding anniversary, and has been a rock of stability and justice within our family. He was followed by our second oldest a couple years later, who has always provided plenty of comic relief. Six years later, we adopted our little angel from China, and she has blessed our family with sweet giggles, tutus, nail polish and lots of pink. Finally our youngest son was born 2 months after we returned home from China, which made him and his sister always feel a lot like twins.
Having a family of 6 in today’s society means that being disciplined in managing family finances must be a priority. This realization, and ultimately a commitment to do something about it is what brought my family to FamilyMint. If you are reading this blog….your probably have a very similar story.
The event in our lives that is somewhat unique, and most significant in our journey of financial prudence was the adoption of our daughter. When we decided that the calling of adoption was in our future, we had a budget that was balanced (meaning we did not have any extra left over after paying our bills), a mountain of debt (in the form of school loans, car loans and a mortgage) and virtually no savings. We knew that the total cost of doing the adoption would be somewhere around twenty thousand dollars, so we had to make some changes and develop some discipline if we were going to be able to afford the adoption.
We started off by getting very serious about budgeting. We knew that we were going to have to start setting aside a few hundred dollars a month, and we had to have an accurate picture of our spending habits to identify a way to set aside this money. I consider myself fortunate to have the type of wife who is very good about logging our transactions on the computer, and she ultimately is the key to our budgeting success. We then became very frugal and eliminated any fixed expense that was not absolutely necessary, such as our newspaper subscription, cable, internet, eating out, etc…, which freed up enough cash for us to set aside $200 a month towards adoption.
We used a budgeting method known as envelopes. This means that we did not simply use a budget to track where our expenses were going, and compare that to the amount we planned to spend for the month. We distributed the money from my paycheck into virtual envelopes (very similar to the process FamilyMint uses to distribute allowance into goals), and when an envelope was empty, we would stop spending against that category until the next paycheck deposited more money into the envelope. If an envelope would go red (negative), we would have to take money from another envelope that was green (positive) to get the envelope back to zero. In one year, we went from living paycheck to paycheck, to actually having $800 in our checking account when we were cashing a paycheck. All along we continued to set aside $200 a month towards our adoption.
We also began focusing on reducing our unproductive debt, since we looked at those monthly payments as an opportunity to increase the amount of money we could set aside for the adoption. The first debt we were able to eliminate is our school loans. This meant that we could set aside an extra $150 per month towards our adoption. Then we paid off our minivan, and committed ourselves to driving it as long as we could, which allowed us to set aside another $300 per month. Before we knew it, we were setting aside $650 each month towards the adoption.
Though it did not feel fortunate at the time, the adoption that was supposed to take 9 months to complete ended up taking about 4 years. As our wait seemed to drag on, this was a “blessing in disguise”, as that delay in the process gave us more time to save. When the email finally arrived with the picture of our little Golden Flower (our daughter’s name in China), we had about $10,000 saved up, which was the amount we needed to finalize the process (we had already paid about $10,000 in fees over the 4 waiting years). Being able to finalize our adoption without incurring debt (and paying off all our other debt in the process) is more than we could have ever expected.
Looking back on that experience, I am so grateful that we were able to afford the adoption of our little girl, because she fits into our family so well! I am also very appreciative that this financial challenge has caused us to develop good spending and savings habits that will pay dividends to our family for many years to come.
Copyright The Personal Story of a FamilyMint Family © 2011. All rights reserved
5 Ways to Cut Teen Summer Travel Costs
By Mike Morland
According to the National Consumers League, 70-80% of teens will have some type of job during their high school years. Of those, 50% will work more than 15 hours a week during the school year. After months of saving, many teens anticipate spending part of their summer traveling with friends. However, it’s important for teens to plan trips as wisely as they save for them. Whether it’s an overnight camping trip or a week on a coastal beach, smart planning is equally important to financial success.
1. Travel When Others Don’t. Many teens like the idea of a weekend flight, but according to Rick Seaney of the travel website FareCompare.com, one of the best day to fly is Wednesday. If your teen can avoid traveling on a Sunday, it could save them some major cash. Sunday fliers are often hit with a “peak air traveling surcharge,” which can be up to an additional $30 each way.
2. Split the Cost. If your teen is planning on staying in a hotel, encourage them to room with friends. According to a recent Travelocity.com search of the popular Myrtle Beach destination, many hotels can accommodate from one to four occupants without major price fluctuations. If your teen doesn’t mind bunking up, it could save them several hundred dollars.
3. Take the Bus. If you’re concerned about your teen driving long hours, you’re in luck. One of the newest and best kept traveling secrets is the MegaBus. Since 2006, MegaBus has offered lost cost travel with free Wi-Fi to all its passengers. According to megabus.com, a ticket from Ann Arbor to Chicago is $15 one way or $30 round trip.
4. Second Choice isn’t Second Rate. If there’s a place your teen would love to visit, but it’s just too expensive, try a nearby alternative that’s less expensive (because it’s not a tourist trap). Some of the best vacation destinations are the ones less traveled. Advise your teen to use the internet as a tool and do some homework with them on alternative destinations. Plus, any word of mouth recommendations from a reliable source could save you some money over a travel agent.
5. Set a Budget. As a parent who’s traveled before, express the importance to your teen about setting a budget and sticking closely to it. Help them manage several expense categories including things such as supplies, food, accommodations and even souvenirs. Helping your teen set up an itinerary of what they are doing on what days can help budget planning go more smoothly.
Helping your teen plan their trip can be a challenge. However, with a little advice and guidance now, you are preparing them for a lifetime of smart financial traveling.
Copyright 5 Ways to Cut Teen Summer Travel Costs © 2011 FamilyMint. All rights reserved