6 Steps to Taking the Fear out of Finances

October starts this week.  A time of ghouls, ghosts, and goblins.  Kids are discussing who to go as for Halloween – if trick-or-treating is even going to be something they can do.  Fear is abundant as we look at the last quarter of the year, fiscal health for the holidays, and the fear of sickness.  All things scary. 

This month I am hoping to tackle some of the scary things I get asked about when it comes to parenting a special. The number one questions I am asked about is what happened when we found out about the life-changing diagnosis; I recommend checking out The Moment for more on that.

Today, I am going to attempt to tackle one of the scariest things people deal with in life – finances.  This is a constant fear for most, especially as the unemployment rate rises in America. I was blessed to have parents who taught me the value of work and a dollar.  Because of these lessons, I graduated with my undergraduate degree debt-free and paid off my student loans for graduate degree 2.5 years early.

Understanding finances starts young and should be taught in all households.  A good understanding of finances will lead to less stress, less debt, and a healthier economy.

How do you teach finances to children?  It can be hard, especially if you do not feel comfortable with finances in the first place.  So here are six steps we use with our kid to help him understand finances as he gets older.

1.       Talk about it: One of the most common things I hear from young adults is they do not know anything about finances.  And really, why should they? We stopped teaching it in schools and 62% of America is in credit card debt with 62% of credit card debtors as college graduates! I often encounter people who explain their collection accounts, late payments, and bankruptcy due to being “young and immature.”  This is really a claim of ignorance.  If we want our children to be out of debt, we have to teach them from the get-go.  We have to let them know that food they eat costs money, that light they are using costs money, and those clothes they like cost money.  That money only comes from hard work.  There is a balance.  Talk about it.

2.       Teach work ethic: Chores are an excellent way to teach work ethic.  Having chores for as long as I can remember, taught me to balance, allowed me to work multiple jobs in college while going to school time and a half (and having a social life), and how to creatively think through problems. Work ethic will benefit children, families, and communities.  Good work ethic is reflected in showing up on time and completing the task on time the right way with a good attitude.  This should be reflecting in their chores and school work.  Teaching these young will help ensure our children have this ingrained in them when they enter the workforce.  A good work ethic will lead to better opportunities through more recommendations, higher bonuses, and promotions. 

3.       Teach giving: This is essential and often left out of finance conversations. If you don’t want to give money, try volunteering. This is a great way to change perspective and priorities. Financial giving is financially sound. This helps encourage budgeting by helping you shift priorities.  We practice a 10% rule with my son.  It is an easy number mathematically for him to understand.  Whenever he gets money (for work done or as a gift), we immediately take 10% and save it for whatever he wants to give to.  Sometimes it is the church, sometimes it is the zoo, sometimes it is buying a meal for a homeless person.  He gets to pick.

4.       Teach saving: This one is hard for most people in our instantaneous world.  We are gratified instantly in almost all we do in the first world.  We watch as three bubbles pop up on a screen showing a response to our message. We can stream almost any movie and binge-watch entire seasons of shows.  Waiting is not something Americans, and most first-world people, are comfortable with.  Saving is something that can actually financially save you.  To help our little one, we also immediately take 10% of his money and put it into savings. This is what is used for unexpected expenses as adults (the car tire blew out or pipes blew).  This account can also be used to save for vacations, new toys, and special experiences.  Our son is saving toward a trip to Sea World to meet marine biologists and a loftier goal of adding a red panda exhibit to our local zoo. 

5.       Teach taxes: As a political scientist, I find teaching this concept is really difficult.  Taxes are often taken right out of the check upfront, so when you calculate a budget, this number is very important. Taxes are designed to pay for things like that pothole-free street you drive on daily.  Taxes pay for that public library and park you enjoy taking the kids to.  Taxes pay for those firefighters who fight fires so you don’t have to.  Taxes are helpful to each community.  Taxes are paid either upfront or on tax day, but they are paid.  We teach our son this but taking 10% of his income immediately and setting it aside in a Taxes account.  This way, when he breaks something in the house (which is inevitable), the money to fix it is there.  He paid his taxes, so that glass/towel rack/doorknob, etc. he broke can be replaced.  The household tax teaches him about the income tax and where that money should go. A great resource for kids on taxes and finances is Finances 101 for Kids: Money Lessons Children Cannot Afford to Miss.

6.       Teach budgeting: Budgeting is hard.  It takes self-control and patience.  When practiced regularly, it is actually quite easy and helps prevent that dreaded debt we all hate so much.  Teaching our children this valuable tool is life-changing. Budgeting ensures you always have enough money for what you need and those things that are important for you.  It also helps you shoot for a goal.  If your hourly $10.00 job is insufficient, it gives you a goal target for where you want to be.  Below is an excel spreadsheet that we use for our kiddo that helps.  It is filled in with an example. Sometimes seeing the budget in black and white helps change a concept to concrete practice.

For more ideas on how to help kids become the best they can be, take a look at my Facebook page.

10 Easy Steps to Successful Time Management – How to keep your School/Work/Home Life in Harmony

Sometimes it feels like life is a juggling act.  Juggling school and work.  Juggling play dates and cleaning.  Juggling parenting and being a spouse.  Juggling life.

How do we find peace in the chaos? Simple. Time management.

Time management is not a complex theory of life, as some may think.  Time management taking (or not taking) simple steps to make life easier. The continuous use of these simple steps will make you more productive at school, work, and life with an added benefit of decreased stress.

Here are the 10 steps of time management my family uses:

Photo by Jess Bailey Designs on Pexels.com

1)      Allow time for planning and Make a List: Planning can often seem like a waste of time.  But, this small step at the beginning can save you tons of time at the end of a project.  We set a tentative plan for the month/week and modify as our needs change.  Life happens, plans change.  Planning ultimately allows for flexibility. We also use this planning time to make lists.  We love to check things off.  It gives a simple sense of accomplishment and keeps us motivated to move forward when things get complicated.  

Photo by Andrea Piacquadio on Pexels.com

2)      Keep work with you: I don’t know about you, but I always seem to find downtime in my day.  Whether it be while driving or walking to an appointment, or waiting in line, or waiting for a doctor show to a scheduled appointment, I wait. Waiting is a part of life. Knowing how to use this downtime efficiently can be a huge advantage.  We have a choice. We can either scroll through a social media page or we can practice a new language or worksheet, or read a required book, or practice and review your notes for the day (study habits will be in the next blog).

3)      Be Realistic and Flexible: It is really easy to over commit.  We have to be realistic with our strengths and weakness.  We have to be honest with how long something is likely to take us.  Just as important, we have to be flexible.  Some of the most highly effective people have a “bumper” set in every schedule.  Do not schedule activities back to back.  Include a “bumper” of time to account for meetings/classes going long, traffic, accidents, forgetting your homework/assignment, and needing to head back to the house.  This will ensure you have flexibility without encroaching on others’ time.

4)      It’s OK to say NO: This took me a really long time to learn.  If I am honest, I still struggle with this. It is OK to say, “No.”  You do not have to agree to do everything everyone wants you to you.  You are only human.  Knowing your limits (time, personality, requirements for sleep), are all essential to creating quality products and lasting relationships.  If you do decline, just make sure to do it with grace, and perhaps a referral.  I like to decline with a “Thank you, but not at this time.  Perhaps you can consider So-and-so.  I think they would be very interested,” or “Thank you, but not at this time.  I would be happy to donate my time to next month’s fundraiser/money to the event/set up the flowers to be delivered/etc.”  This simple referral allows the other party to feel heard, valued, and perhaps come back to you for help at another more appropriate time.

5)      Find your productive time: I once watched an episode of Brothers and Sisters, where a political character stated, “I have done more by 8:00 am than most people do in a day.” This really stuck with me; so much so, I changed my entire schedule.  I am more productive in the wee hours of the morning than I am from noon to five.  So, I ensure my workday reflects that productive time.  I learned in grad school no one bothers me between the hours of midnight and seven in the morning.  So, I set up my focus hours then.  As a mom, I do not stay up all night but know I ensure I am at my computer no later than 6:00 am to start work.  Before work is prayer, meditation.  After work, I help with school, and then we do a workout, field trip, or fun activity to wind down for the day.

6)      Create a dedicated work/school schedule: Schedules are so important.  They help keep you organized and ensure you have set time aside to complete the required activities.  Knowing when you are required to work/school (and the prep time for each), helps to ensure you are not double booking, over-scheduling, or ignoring (for those procrastinators) an important task.  The trick is to keep the schedule flexible as needed, but it should be used in the majority of situations.

7)      Budget your time: Budget your time like you would budget your finances.  Track where you are spending time and where you are not using the time to your advantage. This will help you prioritize when is productive, what needs more focus, and where you can rearrange to have more productivity. B a clock-watcher.  If you know what time it is, you have a better grasp of your time throughout the day.

8)      Exercise to clear your mind: Physical movement is so important to both production and retention. Study after study shows a connection between physical exercise and productivity at work.  Some companies are even paying their employees to work out as it increases productivity, decreases stress, improves social connections, and oh, makes us healthier.  For students, exercising after learning a task has been shown to improve memory and retention. So, burn some calories, get stronger, and strengthen your brain and production all in one thirty-minute workout.

9)      Don’t get sidetracked: Distraction is the key to failure. My son is the king of distraction.  I can ask him to put the dishes aware and all of a sudden, I have a robot in my kitchen.  The trick to time management is not to get distracted.  We teach this to my son by using a HIIT timer.  He attaches this to his belt loop and every time it beeps it reminds him a) to be on task and b) that the allotted time to complete the task is diminishing.  To introduce this, we started it as a game.  Now, he uses it for everything from a work out to clean his room.   At work, I use the 25 minute rule. I work on a project without distraction (no emails, texts, or calls) and then can take a break between my next 25 minutes and catch up on all those things.

10)   Get a good night’s sleep: I love sleep. Good sleep.  The body was designed to do some of the most intensive work while we sleep.  Our bodies rebuild and process the day while we sleep.  Sleep is essential to process and retention, but also, for us to have the energy to complete another crazy busy day.  Sleep helps us learn, strengthen our memory, increases our creativity and insight.  Sleep does so much!   (learn more, strengthen memory, increase creativity and insight)

Now that you have some tips, take this quiz on where you are in time management to know where you might want to focus your attention in the future. Create your time-use log. Do it for at least 24 hours. The longer you do it, the more you’ll see where you lose/waste time.