FoxEd Newsletter July - September 2022 Raising Money Smart Kids It’s hard to learn the true value of money without actually having some money to save and spend. That’s why setting aside a specific amount each week as an allowance for your children can be a good way to show them, among other things, that cash is a limited resource. Here’s how to make an allowance system work for your family: • Start When School Starts Typically, kindergarten or first grade is the right time to begin an allowance. By this time, your child will likely have opportunities at school in the form of book sales, candy carts, and other treat days where they will want money to spend. Little ones will also have plenty of exposure, through you and their grandparents, of other places to shop both in person and online.
• Get it in Writing and Prepare for Negotiation Make a list, figure out how much those items cost and then share that information with your kids. The list of what your children are expected to pay for should be fairly simple in grade school and get more detailed as kids get older. Over time, add to the list of what they need to pay for: concert tickets, gifts for friends and family, gas money for the car. As years go by, there will likely come a time when your child asks for a larger allowance. Before making a decision, ask your child to give you several reasons they need or want more money. By doing this, you are teaching your children real life skills that will help them later when they ask for a raise at work.
• Settle on the Right Amount If you are unsure of a fair amount to start with, crowd source it through your social networks. Ask your friends and neighbors to see how much they’re giving. Perhaps the best way to decide how much money to give your child each week is to determine what you expect that money to cover. Will they pay for their own school lunches and snacks? Gifts for friends? In general, this amount will increase as they age. • Help Them Earn More What happens when your child wants budget-busting clothes or a Nintendo Switch on a $15 a week allowance? This is where the lesson of delayed gratification comes in. You can start a mom and pop 401(k) at home and match each dollar saved with another of your own. That will help your child reach the goal faster and be more likely to see it through. You can also offer your kids extra cash for extra work. If you go the extra job route, pace the cash flow and don’t make the payoff too fast. After all, you want to raise a saver who appreciates what they have.
Financial education tips are provided by SavvyMoney. Services offered through SavvyMoney are separate and distinct from any business conducted with Fox Communities Credit Union and are not guaranteed by or obligations of the Credit Union. For more information visit foxcu.org/savvymoney.
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Whether you’re interested in creating a workable spending and savings plan, getting out of debt, or taking a look at your credit report, BALANCE can help. • Pick up free money management information at any of our locations. • View the BALANCE website by going to foxcu.org/balance-financial-fitness and tapping “Visit Balance Website.” • Receive free budget/debt counseling by calling BALANCE at 888-456-2227.
You’re just a click away from a powerful resource for getting a handle on your debt. With SavvyMoney Checkup, you will learn how to pay down debt, create a personalized budget, monitor your spending, and more. Visit foxcu.org/savvymoney.
M3 Money Club features information and resources for children 12 and under. Train to be financially knowledgeable with games, podcasts, comics, and more. Elements of Money helps teens make smart financial decisions on things like summer jobs, saving for college, and more. Visit foxcu.org/youth-financial-literacy. Fox Communities Credit Union (Fox) is not an affiliate of BALANCE, SavvyMoney, M3 Money Club, or Elements of Money. Third-party sites are not operated or under the control of Fox. Fox is not responsible for the content and does not represent those who enter into a transaction. Fox deposit products are federally insured by NCUA.
Inflation Fighting Tips to Preserve Your Spending Power Saving for the future can take a back seat during inflation and even after prices stabilize, putting families behind in their savings goals. To preserve wealth and buying power, a strategy is needed for survival, and here are valuable tips to use starting today: • Put an end to those nuisance fees once and for all With every dollar worth less, no one can afford to waste them. So now is the time to get rid of those monthly bank service fees, ATM charges, and other costs that may be lingering. • Banish food waste The only thing worse than spending more at the grocery store is watching those dollars disappear into the trash or down the garbage disposal. With inflation on the rise, it has never been more essential to banish food waste. Embrace those leftovers, freeze the excess, or share the bounty with those in need. • Stock up on shelf-stable staples Even with prices on the rise, there are bargains to be had. When deals pop up, it is time to stock up. Filling the pantry with pasta boxes, jarred sauce, and canned vegetables will be good for future finances, so clear some space and start shopping.
Free financial education webinars and radio shows The goal of our webinars and radio shows is to help you build a stronger financial future for you and your family. Please visit foxcu.org/calendar for a full listing of upcoming sessions. Registration is required for webinars.
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• Experiment with meatless meals With the price of meat rising faster than other grocery store staples, now could be the time to embrace an inner vegetarian. Maybe a meatless Monday is a way to experiment. Of course, giving up meat entirely isn’t necessary, but eating meatless one or two days a week could make a big difference in the size of monthly grocery bills. • Put off major purchases If you are contemplating a major purchase, ask if it is something you can live without. If so, putting it off until the worst of the inflation spike is over might result in considerable savings.
• Seek out inflation friendly investments If extra cash is available to save and invest, looking for products that benefit from inflation is smart. From government savings bonds that track the rate of inflation to stocks of companies with rising earnings, these smart money investments could be suitable for the short term and the long term. Consult a financial advisor for the best options. • Optimize your fuel economy The price of gas has been especially problematic as of late, and inflation at the pump is surely one of the most painful aspects of rising prices. Looking for ways to maximize fuel economy can have an outsized influence in this environment. Think about the way you drive as well as how many miles are traveled. Are there other, less expensive transportation options available? Financial education tips are provided by BALANCE. Services offered through BALANCE are separate and distinct from any business conducted with Fox Communities Credit Union and are not guaranteed by or obligations of the Credit Union. For more information visit foxcu.org/balance.
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Financial education webinars are provided by BALANCE. Services offered through BALANCE are separate and distinct from any business conducted with Fox Communities Credit Union and are not guaranteed by or obligations of the Credit Union. Radio shows are brought to you by Fox Communities Credit Union and are intended for educational purposes only and does not replace independent professional advice. Statements and opinions are those of the presenter individually. Fox Communities Credit Union deposit products are federally insured by the NCUA.