Here are a few free PDF downloads that may help out. Just left-click on the images at the bottom to save the item to your computer. (These were designed for kids in grades 6-9.)

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Helping Kids Make The Right Decisions

This has always been important, but with this year’s economy, Sandra Jensen, author of Guide To stress Free Holiday Entertaining says we can’t emphasize this enough!

In an unstable economy, it is dangerous and foolish to acquire debt. Especially now we should be managing our incomes as carefully as we can, and we should be saving for emergencies.

If these things concern you, or if you spent too much money on your Holidays last year and don’t want that burden hanging over your head again next year, now is the time to change that!

• Plan where and how you’ll celebrate the Holidays
• Determine to pay your November, December and January bills on time.
• Make your menus and grocery lists.
• Make your gift lists.
• Be realistic with how many people you can bless.
• Be realistic as to how much you’ll spend on each gift.
• Announce to your family and friends any changes you’re making this year. (Do it now before people start making purchases.)
• NEVER go into debt for gifts!

Be thoughtful and get creative with your gift-giving:

• Shop for bargains.
• Shop e-bay and other on-line discount places.
• Try making some of your own gifts.
• Give coupons for gifts of your time or talents.
• Remember, and teach your children the true meaning of Christmas.
• Practice selflessness, and stop selfishness.

Thanksgiving should be a great time of reflecting on the many things we have to be thankful for! Christmas should be a beautiful time of remembering the gift God gave us, His Son, Jesus Christ.  Hanukkah is the Jewish festival of lights. New Year’s should be a fun time of recalling triumphs of last year, and making plans for the new year.

These should be happy, peaceful times, not stressful or dreaded. The burden of debt is a real joy-stealer.

Decide NOW not to let debt rob you of your Holiday joy!

Sandra Jensen makes family meal time a priority and enjoys putting homecooked food on the table even when budgets and schedules are tight. Be sure to pick up Sandra’s newest ebook Stress Free Holiday Entertaining where she’ll provide you with tips and tricks to help you breeze through the Holidays and enjoy your friends and family for once.

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Paying for the Holidays

In the traditional marriage where the husband is the main wage earner, one concern is maintaining health insurance for the ex-wife after divorce. This is an important consideration if the husband is the one without health insurance, too, especially if they have pre-existing conditions.

It is not uncommon for women over 40 years of age to develop severe health problems. Some become almost uninsurable, at least at a reasonable cost. This is a real concern where they are suddenly on their own and responsible for acquiring health insurance.

The COBRA law passed in 1986 allows a spouse to continue to get health insurance from their ex’s company if it has at least 20 employees, for three years after the divorce. The normal COBRA provision states that, if an employee is fired or leaves a job, he or she can get health insurance from that company for 18 months. However, in a divorce, it is extended to 36 months.

Linda and Bob are getting divorced. Assume that Linda decides to continue health insurance under COBRA from Bob’s company. Linda must pay the premium as agreed. If she misses a premium payment, the health insurance company can drop her and they do not need to reinstate her.

Typically, Linda will not get the discounted group rate but will be charged the full rate. It is important to shop for health insurance, even though the COBRA provision may supply a quick solution to health care coverage, it may not be the best. It may be purchased at a lesser cost somewhere else.

There are two drawbacks to using the COBRA health insurance provision:

1. It’s usually very expensive because you’re getting the corporate health insurance plan but not the corporate billing rate.
2. If you have an illness or injury during the 3 years, you may not be insurable when the 3 years of COBRA is over.

If you’re healthy, I recommend getting your own health insurance policy NOW, even if you’re not yet divorced. Then if something happens, as long as you pay your premiums, you are covered. Otherwise, at the end of three years, COBRA drops you and you have to start shopping for your own insurance. At that time, you may not be insurable.

Even something like a breast cyst, anti-depressant medications, back problems or headaches can disqualify you for health insurance in some states. A friend of mine used her husband’s health insurance for acupuncture to relieve her stress and she is now uninsurable! Doctor visits, therapy, chiropractic, chiropractic and massage that’s paid for with insurance remains in your medical records when you apply for health insurance.

Most states have insurance for those who are uninsurable and cannot get health insurance any other way.  This insurance is often very costly. It is better to look ahead and get individual health insurance for a lower premium while you are still healthy than to gamble that you will still be healthy three years from now.

I know this is one of the “unfair” things about getting divorced. Health insurance is critical to your future financial, emotional and physical well-being. Our current health care laws and systems are a national disaster but you must work to make sure you and your health are taken care of.

A few legislative changes that would work in your favor are:

• A Public Option for health insurance purchases
• Elimination of disqualification for pre-existing medical conditions
• Portability – being able to take your current medical insurance to another job or another state
• Reasonable rates for self-employed or unemployed

This is a good time to let your Senators and Representatives know you need these changes to be made because all Americans need safe and affordable health insurance.

In the meantime, seek out an independent health insurance broker to find an individual policy for yourself NOW. Put it at the top of your list of “to do’s”!

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Divorce and Your Health Insurance

According to a Gallup poll, the average American family will spend $801 this year on Holiday gifts. Remember an average means that some people spend way more and some people spend a lot less. With economic times tough this year for most people, it’s a good chance to talk to your friends and family about cutting back on Holiday gift giving, seeking alternatives or even eliminating it altogether. Most people have more than enough “stuff” and that’s why they are so hard to buy for.

I’m going to be below that average number for several reasons. About 20 years ago, when the grandkids started arriving most of my extended family decided not to purchase Christmas gifts for each other with the exception of my sister and her husband who have no kids but are generous with the nieces and nephews. Even my Mom and Dad suggested that we not exchange gifts this year due because of the hit their retirement accounts have taken.

I’ll be buying wine from Phelps Creek Vineyards for my sister and hubby (Sh, don’t tell), my son gets a ski pass and my daughter a check because she’s saving to go to London for the Spring term. That’s it for me. How about you?

And remember, the Holiday isn’t all about buying and giving! Most people want more of the spirit of the season — friendship, music, love. Don’t be so obsessed with the buying and spending that you wind up with stress, hassle and shopper’s burnout. Plan to incorporate the things that really matter in life: spending time with family and friends, being part of a community, enjoying your faith and just plain having fun.

Doing some planning now along with a shift to the spirit of the season, can make the New Year much happier since you know massive credit card bills won’t be filling your mailbox.

Here are some specific ideas. Implement one or all!

1.       Make a Spending Plan and Stick To It. Decide in advance how much you’re going to spend on each person AND the total amount you plan to spend on everyone. That way, if one gift is more expensive than you expected, review the rest of your list to find reductions so you don’t exceed your overall spending plan. Don’t forget decorations, cards, stamps, wrapping paper. Download my free Holiday Spending Plan resources (scroll down).

It can be tough to stick to a budget when those around you are big spenders. If you want to change the gift giving pattern, do it early before people start making purchase.

2.       Do Something Different This Year. Instead of buying a gift for every person, you can draw names (Have kids draw other kids and adults draw each other). One family I know always has an additional twist like buying something for the person that starts with their first name. For example, Jean might get a Jacket and Rebecca a Robe. Have a dollar limit.

You might also consider purchasing a family gift or brothers and sisters can go in on something bigger for Mom and Dad than they could purchase individually. My kids have been doing that for years because we set a low dollar limit on how much they could spend on us and each other.

A “white elephant” take away is also a fun way to spend the day and everyone gets a good laugh. Ornament gift giving can also be fun and a way to create memories for many years to come.

3.       Set a Limit on the Number of Gifts. Young children get overloaded very easily with quantity so Mom and Dad might limit the number of gifts their children get. You can spread the gift giving out over several days, too, which gives them time to play with their gifts. If you do get too many, think about putting some away for a few weeks.

4.       Spend time, not money. If you’re short of money, offer gifts of your time: Baby-sitting services for exhausted new parents. Painting assistance for a friend who just bought a house. Pet-sitting for traveling neighbors. Grandparents can teach grandkids a skill. I can still remember the Christmas my grandmother taught me to knit.

Organize an Appetizer potluck or Progressive dinner with your friends or family. Everyone brings or prepares something so the cost and work are spread around. And make sure everyone does their share of clean up, too!

5.       Connect with your Community. Whether or not organized faith services are part of your tradition, there’s a lot going on. Here in Hood River, there are food drives, community meals, holiday concerts and performances, and lots more. It’s a good chance to get out and catch up with people you might not see but once or twice a year.

6.       Gift Giving Alternatives. Donate to a cause that’s important to the recipient (check out charities at www.CharityNavigator.org). Purchase gifts that benefit others. Lutheran World Relief – one of the top-rated charities (www.lwrgifts.org) has lots of great ideas from critters to water to education. You might want to ask them what cause they’d like you to support.

Ask family members to consider contributing to your kids’ college accounts. That’s a gift that last for the rest of their lives.

7.       Use up Store Credits and Gift Cards. This is going to be especially important because a number of stores are already slated to close their doors after the Holiday season and a lot more will probably do so before the end of 2009. Many gift cards lose value or expire over time so get them out and use them up.

8.       Take Yourself Off the List. The National Retail Federation reports that the average shopper will spend $99 on themselves! You might also talk to your spouse or significant other to create a plan – maybe you could the money for something you need for the house or cars and if you’re not sure of your job prospects for next year, start a savings account at ING Direct.

9.       Use Send Out Cards for Christmas Cards and Gift Giving This Year. Send Out Cards allows you to choose a card from over 13,000 designs and you can even upload your own photos and have a custom card. They’ll print them and send them out with a real first class stamp for about $1 per card. And you don’t have to go to the store, post office, or lick! You can even make some money when you do! Contact me if you’d like to send a few cards on my dime.

10.   Create Your Own Family Traditions. Everything in our world is shifting and it’s a chance for you to create your own activities and traditions. The first year the kids got ski passes, I told them that’s all they would be getting. They asked “What will we do on Christmas?” and I said “Go Skiing!” I didn’t plan Christmas Day dinner and they were starving when we got home so I made Tuna Noodle casserole and that became our Christmas Day dinner tradition!

Think forward to end of the Holiday Season and how you’ll feel about the amount of time, energy and money you spent. If you don’t like the outcome, change it now. There’s no such thing as the Holiday you read about in a book or see on TV – you don’t have to be held hostage to the Super Christmas. Take a few moments now, check in with your spouse and kids and decide how you want your Holiday to turn out.

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10 Best Debt-Busting Holiday Strategies for 2008!

If you have checking, savings and credit cards spread across several financial institutions, Quicken Online is just the product for you because it gathers all the accounts into one web site which saves you time and money.

Your home page shows balances for all your accounts plus how much money has come in and out and your savings. You can also see a pie chart of share you are spending your money on.

You can always see just how much money you have available to you and where it is.

Quicken Online – One Place, One Password. Manage all your accounts on one place.

Try it today! It’s free so you have nothing to lose!

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Quicken Online Now Free

How about you? The long drive to California and my parent’s party gave me a chance to reflect on what my parents taught me about money and finance…

Mom and Dad were Depression babies who grew up in blue collar families. My Dad (#2 of 6 kids) was the first one to go to college and he did it all on his own for 2 years, then they got married and both worked to support themselves.

We always lived in nice, suburban houses (there were 3 kids) but none was ever the nicest one on the block; we rode in Ford station wagons (I always wanted the one with the wooden sides and the seats in the trunk, though), and went camping or visited family for vacation. One year they took us to Florida because my Dad’s company had an apartment they let us use and when I was in high school, we flew to Florida for spring break.

We even had a 2-way “party” line until I was in Middle School and we were never allowed to talk for more than 30 minutes! We got our first color TV when I was 12 and never had more than one.

My Mom and I sewed all my clothes (and I had something new for every date I went on!) They didn’t buy me a car or pay my insurance. I didn’t have any student loans because they covered college for me along with my high school savings. We didn’t talk about money much but one of my favorite memories is sitting with my Dad at the breakfast table reading him the stock market pages.

I remember being about 15 and adding up all the bank accounts we had – it was $20,000. Wow, I thought that was a lot of money. When I told my Dad, he made a face and a disgusted sound. I asked him “Why?” and he said, “That’s not a lot to show for 20 years of work!”

My Dad moved us around every 2-3 years (Cincinnati, Detroit, Cleveland, Dayton, Cleveland, New Jersey, California) and every move meant a new company. This was before “vesting” so he didn’t have any retirement or pension plan until he was 40-45. They did do well with homes they purchased in California and New Jersey after 1975 and they maxed out IRAs and 401-(k)s when they became available. I’m sure this is why I focus on retirement with everyone I work with.

Now, they live in a luxury retirement development where they have time and resources to travel and party (non-stop) with their friends.

So what’s the lesson here?

They focused on the basics with their kids, didn’t create debt and saved as much as they could. They got a late start on retirement but didn’t let that stop them from taking advantage of every retirement account they were eligible for. Now, they can live forever (and I hope they do) and still not run out of money.

What did your parents teach you about money? You can post your comments below!

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What I learned about Money from Mom and Dad

Parents all struggle with allowances. Should we just give them money? Should we only give them money if they do chores? How much should we give them?

I’ll be answering all these questions and more in my all new “5 Reasons to Give your Kid an Allowance” ebook.

While you wait, here’s a bunch of good reasons to give your kid an allowance. Feel free to add your 2 cents worth!

1. They can make mistakes under your guidance
2. They will learn how to save for the future
3. They will learn that money doesn’t “grow on trees”
4. They will appreciate what they have
5. They will learn to make choices and set priorities
6. They may stop nagging you for money
7. There will be less friction in your household
8. They will learn healthy financial behaviors
9. They will learn your values
10. You can teach them that it isn’t all “about the money”
11. They will learn how to spend wisely
12. They will be prepared to enter the grown-up world.
13. Allowances will teach your children to be resourceful, independent and unique.
14. An allowance is a “tool to empower your children to avoid commercialism’s clutches.”
15. You can teach them to avoid the pitfalls of debt
16. You can help them improve their communication skills around money.
17. An allowance now could help them avoid future “marital money chaos”
18. They’ll learn the difference between quantity and quality.
19. They’ll learn how it feels to make a poor choice and have to live with it.
20. They’ll learn how to resist impulses (sometimes, maybe!)
21. They’ll learn to appreciate and take care of their things

Warmly, Cindy

Stay tuned for my all new “5 Reasons to Give Your Kids an Allowance” ebook!

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Raising MoneySmart Kids

Is that how you want to be remembered?

Of course not!

AND, if you don’t have a Will, your state has one for you and you probably won’t like how they divide your assets. For example, your estate doesn’t automatically go to your surviving spouse. Without a will, it can be divided between your spouse and your children or your spouse and your parents.

If you have children, a judge will determine who they go to and they may be stuck in the foster care system until that is decided.

So, since we’re all going to die anyway, let’s get our affairs in order and allow our friends and family to focus on what we meant to them and leave a legacy of calm and organization!

Now that you’ve faced your death, where can you go to get your Will? (Don’t even think about trying to do it yourself).

	A local attorney ($$$)
	DoYourOwnWill.com (Free)
	Simple Will Book ($)
	Quicken Willmaker ($)

What else should I do?

A Living Will indicates your wishes regarding how long/if you want to be kept alive by medical means (life support).

An Advance Medical Directive authorize someone to make medical decisions on your behalf if you are unable to.

Power of Attorney designates someone to handle your financial affairs. You can choose one which will become effective immediately or one that only becomes effective when you become incapacitated (known as a springing power of attorney).

Don’t forget to update your Will and other documents every few years or when there is a major life change such as a new child, a beneficiary or executor’s death, move to a new state, divorce or marriage.

I’ve created some additional worksheets you can download if you’d like:

Burial Instructions
Financial Inventory

Please take care of this right now while you’re thinking of it. Your family will thank you.

Warmly, Cindy

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What Will Happen When You Die?

Question: My spouse and I are getting divorced and we have a lot of debt. Do you have any tips I should know about?

Answer: Yes, this is a very important topic. In your divorce, you’ll probably each take some of the debt (and whatever assets are available). The divorce decree will state who is taking responsibility for which debts.

The thing you have to know, however, is that the credit card companies don’t give a “hoot” about the divorce papers. If it’s a joint account, you are still responsible and if your spouse isn’t able/willing to pay it, they will come after you. This is true for state and federal income taxes, too.

A client recently came to me with this very situation. Her ex-husband had been paying on the debts just fine until he had a very bad motorcycle accident and ended up in bankruptcy. The creditors came after her for the balances.

The best thing you can do is to get all the joint debts paid off out of the proceeds of the assets if at all possible.

Warmly, Cindy

P.S. I am a Certified Divorce Financial Analyst and can help you with these matters. Please contact me if you need help maximizing the division of your assets and minimizing the debt issues.

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Divorce Debt

Question: What advice can you give recently divorced women on how to manage their finances now that they are facing life as a single mom on a limited income? What should be their first priority? Lisa A. Fredette ~ CTA Certified Life Coach ~ Passionate About Life Coaching ~ http://www.lisafredette.com

Answer: Hi Lisa, that’s a really great question and I’m sure most newly divorced single moms are wondering the same thing. I could write a book about that!

Seriously, there are several things you’ll need to do to manage your finances now – some “outer” and some “inner”.

Outer:

1. Live below your means. That means creating a spending plan that takes future expenses into consideration including car repairs, home repairs and medical expenses. I recommend www.INGDirect.com for keeping that money.
2. Take advantage of any government programs you are eligible for such as food stamps or free/reduced meals for your children. You may also be eligible for Earned Income Credit – check with your Tax Preparer (H&R Block doesn’t charge you to do estimates).
3. Review your employer’s benefit programs such as 401k (the match is free money and your contributions reduce your income taxes), health savings accounts (also reduce your taxes). Also check to see that you don’t have too much being taken out of your paycheck for taxes. It’s always nice to get a tax refund but it’s been your money all along and you lend it to the government interest free all year.

Inner:

1. Take time to play. Play with your kids, play with your friends and take time for yourself. Kids don’t need you to spend money on them, they would rather play make-believe or bake cookies with you. When my kids were little, we used to have “no silverware dinner” – ribs or chicken nuggets, oven fries, veggie sticks or artichokes (“Mom, who do you think invented artichokes,” they would ask). They’re teenagers now and they still get a kick out of seeing only plates and napkins on the table. Get together with other single moms for a potluck or picnic at the park or movie night – you don’t have to go out to have fun. Do a babysitting swap so you can have time for yourself – just to read, take a walk or a bubble bath.
2. Express Gratitude Daily. Even though times are tough, it will get better. Expressing gratitude can keep life bright for you. It’s a great tool to teach your children, too. Practice giving back – help them weed for an elderly neighbor or pick up a few groceries for someone who’s housebound. Work together at a food bank or a Habitat for Humanity project.
3. Talk to kids about money. Teach them how to figure out unit costs and sale prices. Teach them how to make choices. Teach them about saving for things they want in the near future and far away like college. When they ask for something, ask them “how can we make that happen?” rather than “we can’t afford that”. Offer to match money they’ve saved or help them make money. Give them an allowance appropriate to their age and transfer responsibility to them. For example, make the entertainment money you hand them out of pocket part of their allowance and the same for clothing. An allowance doesn’t have to mean that you are giving them any more money than you are already spending on them but that you let them decide how to spend it. They’ll stop “nickel and diming” you and you’ll be surprised at the choices them make when it’s their money rather than yours!

Warmly, Cindy

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Recently Divorced Finances