<p></p><h3>Introduction to Retirement</h3><p>Retirement isn’t as simple as getting to stop working at age 65, as lovely as that would be. Retirement can actually be broken down into multiple unique stages. Each of the retirement stages has its own key things to remember and to save for.</p><h3>It’s Never Too Early</h3><p>When you look up the retirement stages, they often start with someone being in their 50s, but it’s never too early to start saving. When you start saving early, you can give your investments time to grow and earn more money. When you're creating your budget for the year, always try to factor in a percentage of your salary to go into your retirement fund. Aim for 8 to 12 percent if possible, but anything is better than nothing. Put that money in a <a href="https://merrickbank.com/Learn/Personal-Credit-Category/Everything-You-Need-to-Know-About-Saving-for-Retirement">401(k)</a> where you can contribute pre-tax dollars to reduce taxable income.</p><p></p><h3>When Should I Formulate a Solid Retirement Plan?</h3><p>There’s a difference between just putting money away and having a plan for what to do with it. Now’s the time to sit down and work out what you want from your retirement and how much money that will take. If you are struggling with your plan, don’t hesitate to ask those around you for help or ideas! Once you have that answer, you can start taking the steps necessary to ensure you have the retirement you deserve. Always keep your plan for the future in the back of your mind and ask yourself if doing things like increasing your cost of living will take away from your retirement.</p><p></p><h3>In-Depth Dive Into the Stages of Retirement</h3><p>No one person is the same, so there’s no way to know exactly how each retirement stage will go. But here’s an outline to guide you and help you be prepared going forward!</p><img src="https://images.contentstack.io/v3/assets/blt6c40640a229ed552/blt2600c62bf93de27a/64c22dafa3f81b55bb517fa7/infographic.png" alt="Infographic of Retirement Steps" /><h3>Pre-Retirement Stage</h3><p>Once you hit 50, you enter the pre-retirement era. This means you’re about 10 or so years away from when you plan to retire. If you haven’t planned out your retirement before, this is the time to do so! If you’ve planned ahead and know what you’re going to do with your retirement, do a deep dive into your finances and see whether or not you’re on track. No matter where you’re at, adjust your saving and spending as needed. This helps ensure that your budget is set up to help you achieve your long-term goals.</p><p></p><h3>Early Retirement</h3><p>If you’re still saving for retirement in your 60s and beyond, you don’t need to fret! There are no rules on how to retire, and your savings clock doesn’t automatically expire at age 65. If you have concerns about your income and savings, consider returning to work either part-time or full-time. You can also see if a hobby you already love can help you bring in extra income in the form of selling your work or teaching a class! Even if you aren't concerned about finances, the extra income can be a good way to transition from being in the workforce to retirement. It’ll also help with any unexpected expenses you may face as you settle down into the next retirement stage.&nbsp;</p><p></p><h3>Mid-Retirement</h3><p>This is often when unexpected expenses and overall high costs start to decrease. Over the past few years, you may have downsized, met your main travel goals, or have fewer (if any) dependents. Just because things seem to have settled down doesn't mean you can take a break from financial planning. Inflation changes from year to year and this may affect your retiree benefits. Stay on top of your plan and review important documents like your will and estate. You may want to consider naming someone your financial power of attorney should you be unable to act on your own behalf.</p><p></p><h3>Late Retirement</h3><p>While the cost of retirement usually goes down when you’re in your 70s, it almost always increases in the later stages of retirement. Health care is expensive and can be hard to plan for. There’s no way to be sure what kind of care you may need and when you may need it. Some will need in-home health care, while others may have to move into an assisted living facility. Check with your health care provider (or who you plan to have as a health care provider when you retire) and ensure that you get proper coverage that makes it possible for you to cover your medical needs.</p><p></p><h3>Summary &amp; Key Takeaways</h3><p>The stages of retirement will look different to each person, depending on your own finances and goals. But it’s never too early or too late to get started planning for retirement. Formulate a plan for your retirement and then keep up with your plan during the 5 stages of retirement. It may seem overwhelming at times, but knowing your goals and laying out a plan to achieve them will make your retirement better in the long run!</p><p></p>

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Evolution of Saving for Retirement

<p>Whoever coined the phrase, “It takes a village to raise a child” probably wasn’t talking about money. But, setting aside the admirable merits of community involvement and moral support, with the costs of parenthood skyrocketing in recent years, the entire village’s combined wealth might not be enough. So, what do you do if you want to keep both your kids and your money? Here are a few tips to get the most out of your revenue when raising children.</p><h3><strong>STILL EXPENSIVE BY THE DOZEN</strong></h3><p>According to a recent government report, the cost of raising a child from birth to age 17<span>&nbsp;</span><span><div><a href="https://www.usda.gov/media/blog/2017/01/13/cost-raising-child"><span>now exceeds $233,000</span></a></div></span>&nbsp;for a middle-income married couple. That’s nearly a quarter of a million dollars to raise a single child. Food, clothing, medical, and other necessities are simply more expensive than ever before, to say nothing of the rising cost of housing. And, while it’s true that families with more children will experience an economies-of-scale effect (cheaper by the dozen), there’s no doubt that raising children is a pricey pursuit.</p><p>If you’re in the early stages of parenthood, and the cost of diapers and baby food seem extreme, you’re in for some sticker shock when you see how expensive it is to have a teenager. Like fine wine, kids only get more expensive with age. They eat more food, have higher transportation costs (including insurance costs), and generally get more expensive as time goes on. In fact, average annual expenses increase by roughly $900 for kids ages 15-17.</p><h3><strong>BRINGING HOME THE BACON</strong></h3><p>Next to housing, food expenses account for the largest share of the total cost of raising a child. The average family will spend about $42,000 (or 18% of the total child-rearing cost) just to feed a child through age 17, and that’s without taking inflation into account. That’s a hefty food bill, no matter your tastes. But, that doesn’t mean you can’t be smart about your nutrition, and make your food dollars stretch a little farther.</p><p>While it might be tempting to resort to take-out every night as your schedule gets more hectic, eating out is much more expensive than cooking at home. By planning out your meals and eating at home, you can save a lot of money, especially as your kids get older. The USDA’s<span>&nbsp;</span><div><a href="https://www.choosemyplate.gov/"><span>Choose My Plate</span></a></div><span>&nbsp;</span>website is a great resource to better understand the expenses involved in feeding a family. It includes a food calculator to estimate your costs and help you stay on budget, as well as healthy meal planning tips for your entire family.</p><h3><strong>A BUDGET FOR YOUR BABIES</strong></h3><p>Speaking of budgeting, a little financial planning can go a long way when it comes to parenthood. Remember, that $233,000 figure doesn’t include college expenses. So, if you plan to help with your kids’ education, you’re going to need to find a way to save some extra cash. Even if your kids are on their own to pay for college, working out a budget to save for your kids’ future expenses is always a good idea. Your budget will likely change over time, depending on your kids’ interests and activities, and that’s perfectly fine.</p><p>As long as you have a plan to keep on top of expected and emergency expenses that are coming down the pipeline, you’ll be all right. Simplify your budget so that you’ll actually use it. And, don’t be afraid to include a few of your own hopes and dreams, in addition to those of your kids, to give you a little extra motivation to stick to it.&nbsp;</p><img src="https://merrickbank.com/-/media/Merrick/Images/Blog/5_Raising-Kids.jpg?h=800&w=800&la=en&hash=17F73A3D64AD9EB929BC49511E4F79DF6CE5A324" width="100"/><h3><strong>CONCLUSION</strong></h3><p>The costs of raising children may be increasing at an alarming rate, but with a little budgetary planning and willingness to go the extra mile to save a little extra money, you can be ready for the expenses that parenting life throws at you.&nbsp;</p>

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The Rising Costs of Raising Children

<p>Ready for that relaxing and fun vacation, but trying to avoid the inconvenience of traveling, finding the right hotel, and the added expenses that keep growing? Escape the stress of planning a vacation getaway by opting for an amazing staycation in your own state. Playing tourist in your backyard can be just as exciting as getting out of town, but without the expensive price tag and extra hassle.</p><p>With summer on its way, it’s time you took a vacation without the heavy financial burden, and these six ideas and tips are critical to ensuring your staycation is truly the dream vacation you’ve wanted. Welcome to your perfect staycation.</p><p><strong>Staycation Activity Ideas.</strong></p><ol><li><strong>Try new foods.</strong>&nbsp;Just because you’re not in an exotic location doesn’t mean you can’t experience something different. Try something new, like the neighborhood restaurant you have heard about or try something off the beaten path. Websites like&nbsp;<a href="http://www.yelp.com/">Yelp.com</a>&nbsp;provide local ratings on restaurants and even pictures of food items from previous customers. With the money you’re saving on your staycation, pick a nice restaurant and splurge a little on your meal. Or if trying new foods isn’t your thing, change where you eat. Have your breakfast outside, eat dinner at the park, or have your favorite meal delivered.</li><li><strong>Get back to nature.&nbsp;</strong>No matter where you live, the outdoors always has a lot to offer. Find a nearby hiking trail.&nbsp;<a href="http://www.alltrails.com/">AllTrails.com</a>&nbsp;allows you to search for trails and parks near you, and even shows the level of difficulty so you know whether the hike is suitable for your children or grandchildren. Plant some favorite herbs in your backyard. Get to know the environment in which you live. Whether you’re near mountains, plains, or water, there’s beauty in everyone’s backyard.</li><li><strong>Explore the local scene.</strong>&nbsp;Be a tourist in your own town, you might be surprised at how many free, local events are available in your own town. Check out the public library for free events and activities. Take an afternoon to see a concert, visit a museum, or browse your local farmers’ market. Spend an evening under the stars with a movie in the park. You’ll get to know the flavor of your town, and meet other locals who are interested in the same things.&nbsp;<a href="http://www.tripadvisor.com/">TripAdvisor.com</a>&nbsp;is an easy way to search for “Things to Do” near any city.</li></ol><p>&nbsp;</p><img src="https://merrickbank.com/-/media/Merrick/Images/Blog/summerpicnik-800x800.png?h=800&w=800&la=en&hash=3FF5A20C64BBBB39B2970E6ED04ACF69D4DADC4F" width="100"/><p><strong>Staycation Planning Tips.</strong></p><p>Here are a few tips to keep in mind as you plan your nearby excursions.</p><ol><li><strong>Disconnect.</strong>&nbsp;Take a break from emails, appointments, chores, and errands. After all, the key to the best staycation is taking a break from the routine. Even though you’re home, you’re still on vacation. This is your time to relax and have fun.</li><li><strong>Budget.</strong>&nbsp;Like any trip or vacation, you’ll still want to set a budget. The goal of a staycation isn’t to spend&nbsp;<em>no</em>&nbsp;money, but to&nbsp;<em>save</em>&nbsp;money. Even with a budget in place, you can still find ways to treat yourself with something as simple as a fancy dessert or a day doing something you want to do. Look for extra savings using sites like&nbsp;<a href="https://www.groupon.com/">Groupon.com</a>&nbsp;and&nbsp;<a href="https://www.livingsocial.com/">LivingSocial.com</a>.</li><li><strong>Plan.</strong>&nbsp;Don’t let your staycation be just another weekend at home. To make it memorable, plan your activities in advance. Do your research ahead of time so you know what events are going on and what the weather will be. Then make a game plan to ensure this will be the best staycation yet.</li></ol><p>Smart financial decisions don’t have to get in the way of new experiences and a fabulous vacation. By following these staycation ideas and tips, you can relax and enjoy yourself without breaking the bank.</p><p><em>&nbsp;</em></p><p><em>Merrick Bank is not affiliated with Yelp.com, AllTrails.com, TripAdvisor.com, Groupon or Living Social. Reference of said websites are strictly for informational purposes only. No endorsement or authorization is intended or implied.</em></p>

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Six Ideas and Tips for the Perfect Money-Saving Staycation

<p><strong>This article was written by the&nbsp;FICO® Score Open Access team. It has been published on our website with their permission.</strong></p><p><strong>&nbsp;</strong></p><p>My husband and I recently sat down with our 28-year old son to discuss purchasing his first home.<span>&nbsp;<span>&nbsp;</span></span>His millennial friends have been wanting to do more “adulting” - move into something they can call their own and be out of a small apartment or even their parents’ basement.<span>&nbsp;<span>&nbsp;</span></span>My son has a master’s degree and a good job at a large retail bank, but he bounced around at his first few jobs, so he hasn’t been with his current employer that long.<span>&nbsp;<span>&nbsp;</span></span>Even though he’s free from student debt, unlike many of his peers and friends, he’s still facing a few hurdles as he recently learned from the mortgage expert at his bank.<span>&nbsp;</span></p><p>&nbsp;</p><p>Housing prices in Northern California are notoriously high, making breaking into the market is particularly challenging.<span>&nbsp;<span>&nbsp;</span></span>It’s simply not affordable for most young people.<span>&nbsp;<span>&nbsp;</span></span>This is his challenge as well, since his debt to income ratio makes it difficult to qualify, so he’ll need to save to make a substantial down payment.<span>&nbsp;<span>&nbsp;</span></span>The time it will take to build the savings may also work in his favor with a longer job stability on the application.<span>&nbsp;</span></p><p>&nbsp;</p><p>Being realistic and considering a fixer-upper is also important.<span>&nbsp;<span>&nbsp;</span></span>Another critical piece of the puzzle is making sure he can qualify for the best possible rates when he is ready to take out a mortgage.<span>&nbsp;<span>&nbsp;</span></span>Having the highest possible FICO® Score may help him get a lower interest rate.<span>&nbsp;<span>&nbsp;</span></span>The score doesn’t consider income in its calculation, but it does include information about any missed payments, amount of debt outstanding and other things about his credit history. Since FICO® Scores are an important piece of information used by mortgage lenders, he knows it is very important to have a good track record on paying existing debts, keeping his credit card balances low, and not applying for any new credit unless he really needs it.&nbsp; He also knows that keeping on top of his FICO® Score is key taking control of his financial health, and fortunately, a couple of his creditors use FICO® Score Open Access, so he has been able to keep an eye on his FICO® Score.<span></span></p><img src="https://merrickbank.com/-/media/Merrick/Images/Blog/MER19-0031_VP_Apr-Jun_Blog-Post_FICO_800x800-05.jpg?h=800&w=800&la=en&hash=DD49F4C29E1873475B6DED3360FB0A15E2A8A48F" width="100"/><p>By FICO® Score Open Access team<br /><br/>FICO is a registered trademark of Fair Isaac Corporation in the United States and other countries.</p>

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Preparing to Buy a Home - My Millennial Son's Journey

<p>Here’s some good news: your family can make a few small changes that add up to big savings over time.</p><h3>1. GO REUSABLE</h3><p>Disposable products, including water bottles, lunch bags, and paper goods like plates, cups, and towels are convenient, but they’re also expensive. Chances are that you’re probably spending a lot of money on disposable goods each month. Try swapping out bottles for reusable containers, and trade in your paper goods for reusable plates, cups, and towels to<span>&nbsp;</span><div><a href="https://money.com/savings-eliminating-plastic-money-tips/"><span>save some extra cash</span></a></div><span>.</span></p><h3>2. BUY USED</h3><p>Buying brand new is fun, but after the initial thrill of opening a package, your new stuff is often the exact same as something used. You can find computers, bikes, video games, musical instruments, and just about everything else your kids want at much cheaper prices when you buy used. This same rule applies to many of your bigger family purchases, including cars. Most new<span>&nbsp;</span><div><a href="https://www.nerdwallet.com/article/loans/auto-loans/compare-costs-buying-new-car-vs-used"><span>cars depreciate 40% to 50% within the first three years of ownership</span></a></div>, which means you can find great deals on fairly new cars without having to bear the majority of the depreciation costs yourself.</p><h3>3. FIND FUN HOME ENTERTAINMENT</h3><p>Going out as a family for movie night or mini golf is a blast. It’s also expensive. The average U.S. household spends about<span>&nbsp;</span><div><a href="https://www.thesimpledollar.com/banking/blog/a-look-at-the-average-american-budget-and-how-the-average-american-can-start-saving-more/"><span>$2,500 on simple entertainment every year</span></a></div>. That’s more than $200 per month. And while finding ways to have fun as a family is important, you can also make memories without spending a lot of money. Look for<span>&nbsp;</span><div><a href="https://wideopenschool.org/programs/family/PreK-5/?gclid=EAIaIQobChMIq9j58d7D6gIVEL7ACh36yQuoEAAYBCAAEgKhK_D_BwE"><span>resources online</span></a></div><span>&nbsp;</span>to find fun, affordable family entertainment. You can also use local community resources to find nearby recreational activities, including hiking trails, parks, and more. Just Google “free activities for families” in your city to see what you can find. There’s also nothing wrong with a quiet family evening at home playing games or watching a movie.&nbsp;</p><h3>4. FIND WAYS TO SAVE ON FOOD</h3><p>If you have a family with lots of mouths to feed, there’s a good chance you’re spending even more than that. Food is one of the largest expenses for families every month, and prices are only going up, especially on staples like meats, eggs, potatoes, and dairy. In fact, in April 2020, the<span>&nbsp;</span><div><a href="https://www.cnn.com/2020/05/13/business/grocery-prices/index.html"><span>price of groceries grew 2.6%</span></a></div><span>.</span><span>&nbsp;</span>That’s the largest month-over-month increase in grocery prices since the early 1970s. And many experts believe the<span>&nbsp;</span><div><a href="https://abcnews.go.com/Health/wireStory/us-food-prices-historic-jump-stay-high-70969164"><span>price increases are here to stay</span></a></div>. By<span>&nbsp;</span><div><a href="https://www.everydollar.com/blog/create-a-meal-plan#:~:text=Meal%20planning%20saves%20money.&text=That's%20because%20you'll%20look,already%20have%20in%20your%20pantry.&text=By%20planning%2C%20you'll%20spend,throwing%20cash%20into%20the%20trash)."><span>planning meals</span></a></div>, limiting trips to the store, and buying fewer packaged foods, your family can save money on food. You can also buy produce in season, buy frozen foods that keep longer, and utilize coupons to combat price increases.&nbsp;</p><h3>5. PLAN A BUDGET WITH THE WHOLE FAMILY</h3><p>Meet regularly with your family to talk about ways to save with your kids and<span>&nbsp;</span><div><a href="https://www.thebalance.com/set-up-a-family-budget-3129262"><span>plan out a budget together</span></a></div><span>.</span><span>&nbsp;</span>When every family member understands the importance of living within a budget (and what that actually means), you can help each other stick to your goals and make corrections together. Plus, planning a budget with the entire family gives you the opportunity to save for vacations and other big purchases together, which can build excitement and make the rewards of saving money even more rewarding.</p><h3>6. TALK ABOUT UTILITIES</h3><p>You might not think of your utilities as family expenses, but your entire family has control over how much you spend each month on energy and other recurring bills. Have a discussion with your kids about smart ways to save. Make it a part of your family budgeting process and review how seemingly small behaviors like using energy efficient lights, limiting hot water use, and improving your home’s efficiency can help lower the nearly $2,000 energy costs most Americans spend per year.</p><img src="https://merrickbank.com/-/media/Merrick/Images/Blog/MER20-0055_VP_Jul-Sep_Blog-Post_Family-Expenses_800x800_V1.jpg?h=800&w=800&la=en&hash=D1E5D3CB2FD950F53983D770DA0AD3C084966BB1" width="100"/><h3>7. BE CLEVER WITH CLOTHES</h3><p>While sibling hand-me-downs and buying used are great ways to save, sometimes kids need new clothes. Doing simple things like<span>&nbsp;</span><div><a href="https://www.thepennyhoarder.com/save-money/20-ways-to-save-money-on-clothes/"><span>buying clothes</span></a></div><span>&nbsp;</span>that fit now and buying quality clothing can actually save you money, even if you have to spend a little more upfront. You can also sell what your kids don’t wear to recoup the cost of buying new. And, as always, keep an eye out for sales. The markup on retail clothing is significant —&nbsp;<div><a href="https://smallbusiness.chron.com/markup-percentage-retail-clothing-80777.html"><span>sometimes as high as 62%</span></a></div>. You can almost always find deals on clothing by shopping discount racks/stores or buying wholesale to avoid retail markup.</p><h3>8. COORDINATE YOUR CAR TRIPS</h3><p>Gasoline and car repairs are<span>&nbsp;</span><div><a href="https://pocketsense.com/ten-biggest-expenses-of-the-american-family-5646654.html"><span>major family expenses</span></a></div>. Before you run all around town on errands and chasing after kids, take a little time to coordinate your trips to reduce travel. Doing so can lower gas expenses and limit the wear and tear on the family car, saving money now and in the long term. If public transportation is a feasible option for your family where you live, consider taking advantage of the services available before buying another car for your growing family of drivers. Besides the purchase price, a new car requires registration, gas, insurance, upkeep, repairs, and interest payments from financing.&nbsp;</p><p>&nbsp;</p><p>Families are expensive. While you might not be able to eliminate every expense of raising kids, following these 10 tips can help you save more money together and be a more frugal family.</p>

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Our Top Tips for Saving on Family Expenses

<p>In today’s world of home improvement shows, online pin boards, and do-it-yourself blogs, owning a home is more exciting than ever. But while it may look like a lot of fun, homeownership is a serious, life-changing decision. If you buy before you’re financially ready, you may get into trouble quickly. So, how do you know if owning a home is the right move for you? Ask yourself the following questions.</p><h3><strong>ARE YOU READY TO SETTLE DOWN?</strong></h3><p>One of the most common mistakes people make is buying a home before they really know their long-term plans. Real estate can be a good investment, but the market is also unpredictable. Unless you know you’re going to be there a while,<span>&nbsp;</span><div><a href="https://www.forbes.com/sites/trulia/2016/08/31/7-warning-signs-youre-not-ready-to-buy-a-home/#3e517e3064c5"><span>buying a home isn’t always the right move</span></a></div><span>.</span><span>&nbsp;</span>There are benefits to buying a home, but if there’s a chance you’ll have to relocate in the near future, you’re probably not quite ready.</p><h3><strong>DO YOU HAVE ENOUGH SAVINGS?</strong></h3><p>Buying a home means coming up with at least a little cash for a down payment. And while paying the traditional 20% down can mean a lower interest rate, there are<span>&nbsp;</span><span><a href="https://www.fearlesshomebuyer.com/lesson/types-of-home-loans-fha-va-usda-omg/">other types of loans</a></span>&nbsp;if you don’t have that kind of cash on hand. Of course, the down payment is<span>&nbsp;</span><div><a href="http://money.cnn.com/2018/04/26/real_estate/ready-to-buy-a-home/index.html"><span>only the beginning of the expenses</span></a></div>. There are other costs and fees associated with buying a home and closing a loan, which can add as much as 2% to 5% of the loan value. And beyond the essentials, you’ll likely have other expenses associated with getting your home move-in ready.</p><h3><strong>DO YOU HAVE ENOUGH INCOME?</strong></h3><p>Using a simple<span>&nbsp;</span><span><a href="https://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx">online calculator</a></span>, it’s easy to estimate a monthly mortgage payment. But don’t forget about the other costs that get rolled into that amount, like homeowner’s insurance and property taxes. Most banks prefer to make loans that won’t go above<span>&nbsp;</span><div><a href="https://www.bankrate.com/calculators/mortgages/new-house-calculator.aspx"><span>28% of the borrower’s monthly income</span></a></div>. And if your total debt exceeds 36% of your monthly income, it can be difficult to get a home loan. Also, don’t forget about utilities, upkeep, repair expenses and luxuries like cable TV and internet.</p><p>&nbsp;</p><p>On TV and online, home ownership looks fun, easy and affordable. But before you pick out paint colors or draw up a floor plan, make a plan for responsible home ownership. Ask yourself all the right questions, then decide whether or not you’re ready to buy a home.</p>

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Is Buying a Home Right for You?

<p>When you look back on your childhood, can you think of any experiences that shaped your financial habits? Were the people around you careful with their cash? Or did they spend money like it was in endless supply? Whatever your background, your good and bad money habits likely developed at an early age. And like it or not, the same is true for your own kids.</p><h3><strong>Be Open and Honest</strong></h3><p>When money is tight, it’s natural to want to shelter your loved-ones from your financial woes. But sharing stories about past regrets and present financial difficulties can<span>&nbsp;</span><a href="https://www.daveramsey.com/blog/how-to-talk-to-your-kids-about-money"><u>help your kids learn valuable lessons</u></a><span>&nbsp;</span>about managing their own money. Of course, there’s no need to give your kids nightmares by sharing every intimate detail of your financial problems. But being honest about your regrets and your plan to get back on your feet is exactly the type of early education that can positively impact your kids’ money habits. Talking honestly with your kids about your finances can teach them how important it is to plan and prepare for financial success.</p><h3><strong>Set Shared Savings Goals</strong></h3><p>One of the best ways you can teach your kids about money is by setting shared savings goals and following through with your plans. Start by thinking of something you and your kids would like to do together, if you had the money. It could be a vacation, a video game, or something as simple as a trip to the golf course or local swimming pool. Whatever your goal, come up with a plan to budget and save money together.</p><p>If your kids are old enough to work, ask them to come up with a certain amount every week or month. Or give your younger kids jobs around the house to earn extra cash. Then match their contributions when they supply their share of the savings. For more simple savings goals,<span>&nbsp;</span><a href="https://www.daveramsey.com/blog/how-to-teach-kids-about-money">keep your earnings in a clear jar</a><span>&nbsp;</span>where your kids can easily see their savings accumulating. And when you have enough, celebrate the occasion in style to let your kids know they’ve done something special.</p><h3><strong>Use Every Day Experiences</strong></h3><p>Your bank probably provides modern, online conveniences that make trips to the local branch a less frequent part of your life. But making a special visit to the bank with your kids can<span>&nbsp;</span><a href="https://www.aba.com/advocacy/community-programs/consumer-resources/kids-money/talk-your-kids-about-money">spark conversations about money</a><span>&nbsp;</span>and teach them valuable lessons about saving. Talk to your kids about how saving money can generate more money through interest. Show them how to deposit a check and use an ATM machine. On your payday, explain to your kids that the money you earned will be used to pay for food, clothing, and housing expenses in the coming weeks. And then discuss the importance of setting aside a portion of your paycheck to pay for retirement and other future expenses.</p><p>When you buy groceries, teach your kids how a debit or credit card works. Talk about the difference between needs and wants. Even playing games with your kids that involve pretend money and made-up transactions can help. Your kids are information sponges. And using every day experiences as opportunities to teach them about money will go a long way in their lives.</p><p></p><h3><strong>Be an Example</strong></h3><p>As with almost everything else in life, your kids will learn good or bad money habits by example. If you make a point to pay your bills on time, there’s a good chance your kids will pick up on your behavior. If you use a budget to plan your expenses, your kids will likely take notice. And if you spend recklessly and get into financial trouble, your kids will probably follow suit.<span>&nbsp;</span><a href="https://www.aba.com/advocacy/community-programs/consumer-resources/kids-money/personal-finance-for-children">Kids tend to emulate their parents’ behavior</a>, so remember that they’re watching and learning from your financial successes, as well as your mistakes.</p><p>There’s no time like the present to start talking to your kids about money. Remember to be open and honest with them about your finances. Set shared savings goals and celebrate their accomplishments. Use every day experiences as opportunities to talk about money. And above all, be an example of the way you want them to behave down the road. Because in all likelihood, you’re shaping their financial futures through your own actions today.</p><p></p>

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How to Talk to Your Kids About Money

<p>Emergencies are one of the inevitable things of life. They tend to come when you least expect them, and they’re almost always more expensive than you’re anticipating. But that doesn’t mean you can’t be prepared financially for your next family emergency. Here are a few pointers and best practices to help you start saving for your family emergency fund.</p><h2><strong>What Is a Family Emergency Fund?</strong></h2><p>A family emergency fund is money that’s separate from your regular savings. It’s specifically set aside to help you and your family sustain life and get back on your feet after an emergency. Essentially, it’s a safety net of funds to pay for expenses that arise from emergencies and to cover everyday costs in the aftermath of an emergency.</p><h2><strong>Importance of Having a Family Emergency Fund</strong></h2><p>In the wake of a family emergency, you might have to pay for repairs to your car or home. You might have unexpected medical expenses. You may even miss work or experience a loss of income. The nature of the emergency will determine your exact expenses, but the unfortunate reality of emergencies is that the rest of the world doesn’t wait for you to recover.</p><p>A family emergency fund can help you keep current with your bills and avoid taking on too much debt. In fact, according to the<span>&nbsp;</span><div><a href="https://www.consumerfinance.gov/an-essential-guide-to-building-an-emergency-fund/"><span>Consumer Financial Protection Bureau</span></a></div>, families who have less savings set aside for emergencies tend to struggle to recover financially following an unexpected event. They may have to rely on loans or draw from other accounts to cover costs, which can set them back for a long time.</p><h2><strong>How Much Should You Save In Your Family Emergency Fund?</strong></h2><p>The size of your emergency fund will depend on several factors, including your income, family and expenses, but most experts recommend saving<span><span>&nbsp;</span><a href="https://www.nerdwallet.com/article/banking/emergency-fund-calculator">three to six months’ worth of expenses</a></span>.</p><p>Saving that much all at once is a big ask for any family, but remember that an emergency fund is a fluid account. You’ll draw and replenish your emergency cash reserves on an ongoing basis. Start by saving for emergencies a little at a time, with the eventual goal of having a full three to six months’ worth of savings. You can even start with a smaller goal of $500 or $1,000 and increase that goal over time.</p><h2><strong>How To Save A Family Emergency Fund</strong></h2><p>Planning is one thing, but actually saving for emergencies is another.<span>&nbsp;</span><div><a href="https://merrickbank.com/Learn/Budgeting/7-Ways-to-Build-an-Emergency-Fund"><span>Put your emergency savings plan into action</span></a></div><span>&nbsp;</span>by using the following ideas to budget your income and prioritize your savings plan.</p><ul><li><strong>Make A Budget:</strong><span>&nbsp;</span>Give your family emergency fund a strong foundation by making and living by a budget. Plan out your expected monthly expenses and include a category for emergency savings. Putting away a little money every month will help you get in the habit of saving so that you can<span><span>&nbsp;</span><a href="https://merrickbank.com/Learn/Budgeting/The-ABCs-of-Building-Your-Emergency-Budget">build your emergency fund quickly</a></span>.</li><li><strong>Track &amp; Cut Your Spending:</strong><span>&nbsp;</span>Every good budget requires some amount of upkeep over time. Check your budget often to make sure that you’re spending within your means and saving for emergencies. If you find that you’re having trouble allotting money to your emergency fund every month, track and cut your spending where necessary.</li><li><strong>Prioritize Your Money Saving Goals:</strong><span>&nbsp;</span>Rather than waiting until all your bills are paid and your money spent, set aside emergency savings at the beginning of every month. Prioritizing your emergency fund will force you to trim unnecessary spending in your monthly budget.</li><li><strong>Adjust Your Savings Habits:</strong><span>&nbsp;</span>Consider stashing your emergency fund savings in a dedicated account, away from your regular savings and/or checking account. You may even decide to automatically transfer a portion of every paycheck to your emergency fund. Doing so will help you earn extra interest on your money and ensure that your emergency fund remains off-limits until it’s actually needed.</li><li><strong>Create Ways To Earn Extra Cash:</strong><span>&nbsp;</span>Building up savings to satisfy three to six months of expenses is a tall task. If you’re struggling to build your family emergency fund, consider finding extra ways to earn cash until you’ve built up sufficient cash reserves. Consider doing something as a family to earn extra money, like having a garage sale. Finding extra ways to save now is always easier than scrambling to save with the added stress of a family emergency.&nbsp;</li></ul><h2><strong>When Should You Use It?</strong></h2><p>What defines a family emergency is different for everyone. But if you<span>&nbsp;</span><div><a href="https://merrickbank.com/Learn/Personal-Credit-Category/6-Tips-for-Handling-Money-During-a-Disaster"><span>set clear guidelines now</span></a></div>, you can avoid the temptation and justification to use family emergency funds to pay for non-emergency events, including vacations, weddings, and other family activities.</p><ul><li><strong>Death In The Family:</strong><span>&nbsp;</span>A death in the family can disrupt your everyday life, including your ability to work. On top of potentially losing income, the costs associated with the funeral and burial of a loved one can be a shock to any family’s finances. Don’t hesitate to use family emergency funds to supplement income and pay for expenses.</li><li><strong>Job Loss:</strong><span>&nbsp;</span>Losing a job is another reason to use family emergency funds. Your funds can replace your income and help your family pay bills and maintain quality of life until you’re able to find work.&nbsp;</li><li><strong>Medical Emergencies:</strong><span>&nbsp;</span>Medical emergencies can be extremely expensive. Even if your insurance helps cover some of the costs associated with a medical emergency, you may still be responsible for a portion of the bills. That’s on top of the toll a medical emergency may take on your ability to work and earn an income.</li><li><strong>Home &amp; Vehicle Repairs:</strong><span>&nbsp;</span>Transportation and shelter are among the necessities of life. They also enable you to bring in more money for your family. Just make sure that you<span>&nbsp;</span><div><a href="https://merrickbank.com/Learn/Budgeting/5-Ways-to-Prioritize-Your-Savings-Goals"><span>clearly define needs versus wants</span></a></div><span>&nbsp;</span>when it comes to home and vehicle repairs. Getting back on the road or repairing plumbing in your home is obviously different than using funds to purchase a car or home that you can’t afford.</li></ul><h2><strong>Can Insurance Help Protect You In an Emergency?</strong></h2><p>Depending on your particular family emergency and insurance plan, your insurance company may step in to help cover expenses. In fact, finding the right insurance for your family can be an important part of saving for emergencies. But that doesn’t mean you should save with the assumption that insurance will cover everything.</p><p>Oftentimes, insurance won’t kick in to cover a family emergency. Even when it does, you’ll be responsible for a sometimes-sizable deductible or co-payment. As a general rule, find the right mix of insurance coverage for your family, but build your family emergency fund with the expectation that insurance may not cover everything.</p><h2><strong>Where Should You Keep Your Family Emergency Fund?</strong></h2><p>Your family emergency funds need to be accessible at a moment’s notice. At the same time, if you’re lucky, your funds may sit in your account for an extended amount of time. You might as well be earning interest on your emergency savings.</p><p>Find an account that’s separate from your ordinary savings that will give you the best of both worlds — access and interest. An interest-earning savings or money market account at your financial institution is a great place to start. Just make sure you can withdraw funds without incurring fees or penalties and you won’t be tempted to use it for non-emergencies.</p><h2><strong>Bottom Line</strong></h2><p>Every family should have an emergency savings fund. Sooner or later (hopefully later) emergencies happen. Those families that are prepared with the right savings plan and emergency cash reserves can avoid the financial struggles that can sometimes follow emergencies. Use this article as a guide to start your own family emergency plan. When the unexpected eventually happens, your family and your finances will be in a better place for your planning and preparation. &nbsp;</p>

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How to Save For Family Emergencies & Build Your Family Emergency Fund

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Breaking Down a Wedding Budget

<p>When it comes to planning for a baby, you want to give them the best of everything. However, your bank account might not agree with that plan. It’s a matter of fact that having a baby is expensive. Between the diapers, the crib, the stroller, the diapers (again), and the hospital costs, your new little bundle of joy can cost a whole bundle of money.<br /><br /><br/>If you're a first-time parent, it can be tempting to buy everything. The truth is that most parents buy far more for their babies than they actually need. Talk to other parents about the practicalities of every potential purchase. When in doubt, err on the side of acquiring fewer things — chances are, if you’re wondering whether you’ll need it, you probably won't.</p><h2>How Much to Save for a Baby</h2><p>So where do you start when figuring out how much to save for your baby? It can seem overwhelming to determine an exact figure you’ll need. And as with all things financial, the exact amount you’ll need will depend on your personal needs and priorities. There won’t be an exact figure that will work for every single person.<br /><br /><br/>However, you can look to research to get you started.<span>&nbsp;</span><a href="https://www.healthsystemtracker.org/brief/health-costs-associated-with-pregnancy-childbirth-and-postpartum-care/#Average%20additional%20health%20spending%20associated%20with%20pregnancy,%20relative%20to%20women%20of%20the%20same%20age%20who%20do%20not%20give%20birth,%20among%20people%20with%20large%20employer%20coverage,%202018%20-%202020">One recent study</a><span>&nbsp;</span>found that health costs associated with pregnancy, childbirth and post-partum care averaged a total of $18,865. Most of this cost, however, will likely be covered if<span>&nbsp;</span><a href="https://www.magnifymoney.com/banking/costs-to-have-a-baby-and-how-to-start-saving/#:~:text=The%20total%20cost%20of%20pregnancy,average%20between%20%242%2C655%20and%20%243%2C214.">you have health insurance</a>.<br /><br /><br/>There are also a variety of resources out there to help you figure out what your personal costs will look like.<span>&nbsp;</span><a href="https://www.thebump.com/a/advice-for-saving-up-for-a-baby">The Bump has a great breakdown</a><span>&nbsp;</span>of the average costs associated with a new baby. You can also find some great advice for covering your expenses<a href="https://www.parenting.com/pregnancy/planning/the-cost-of-raising-a-baby/"><span>&nbsp;</span>from Parenting.com</a>.</p><h2>How to Save For a Baby</h2><p>Before the delivery, you’ll want to put together a plan for how much to save and how you’re going to save that money. Use the pre-delivery planning steps below to get started.<br /><br /><br/><strong>Pre-Delivery Planning</strong><br /><br/>Understand Your Health Insurance &amp; Anticipate Costs: Before the baby arrives, you’ll want to understand what kind of insurance coverage you have. Educate yourself on what is covered with your insurance plan and get estimates for how much you’ll pay out of pocket. Don’t leave anything to guesswork! If you aren’t sure about something in your plan, reach out to your insurance provider to get the answers you need.<br /><br /><br/><strong>Plan for Maternity/Paternity Leave</strong><br /><br/>Both you and your partner will need to know how much time you can take off work and whether or not you’ll be paid during that period. Take the time to understand what options you have under your company's policies and what laws are in effect in your state. The time you get off will also affect when you may need to pay for someone to take care of your child while you’re at work.<br /><br /><br/><strong>Create A Budget For Before &amp; After Labor</strong><br /><br/>Where possible, you should plan for every expense associated with having and taking care of your new baby. Write down every expense you can think of. Then, create your budget for expenses before and after labor.<br /><br /><br/><strong>Choose a Pediatrician within Your Insurance Network</strong><br /><br/>The mother and the baby will both need aftercare, so be sure to find doctors and clinics that are covered by your insurance. Once you know which places are an option, take your time to call around and find what works best for your family.<br /><br /><br/><strong>Monitor Your Emergency Fund</strong><br /><br/>It might seem overwhelming to plan out the cost of everything associated with a baby. But there is one more account we need to talk about. Even with the chaos and cost of a baby, you shouldn’t neglect your emergency fund. You never know what may happen, so it's best to have a nest egg sitting off to the side for unexpected emergencies.<br /><br /><br/><strong>Buy Diapers In Bulk</strong><br /><br/>As you might have guessed, babies go through lots and lots of diapers. Ask any parent and they’ll tell you that a baby’s favorite time to demand a new diaper is immediately after the most recent change. Look into bulk for items you will need a lot of. Diapers are a big cost, so it's best to be smart with them, plan to get them in bulk or look into reusable cloth diapers. Long term, both can save you a lot of money.<br /><br /><br/><strong>Get a Convertible Crib &amp; Car Seat</strong><br /><br/>Kids don’t just outgrow clothes — they get too big for toys, bassinets, cribs, car seats, and just about everything else. Regulations and product features relating to your child’s safety are constantly being updated, so it doesn’t always make sense to buy a used car seat or crib. However, that doesn’t mean you can’t shop around for something that your child can use long-term. Many car seats and cribs can adjust to your child’s ever-changing size, giving you a convenient and less expensive one-size-fits-all option.<br /><br /><br/><strong>Invest in a Quality Stroller</strong><br /><br/>Saving money doesn’t always mean spending less upfront. At times, it pays to spend more money now, so you can save money later. Your child’s stroller is one item where it pays to think long-term and invest in quality. Inexpensive strollers (not unlike inexpensive cars) tend to break down at the worst times. Buying one nice stroller now is better than buying two or three lesser-quality strollers within the first few years of your child’s life.</p><h2>Quick Money-Saving Tips After Delivery</h2><p><strong>Use Your Hand-Me-Downs</strong><br /><br/>As fast as your little one grows, buying and rebuying brand-new clothes, shoes, etc. can be expensive. In some cases, your baby will wear a certain size or a specific outfit only a handful of times. Buying used and/or graciously accepting hand-me-downs from a family member or a friend is a great option when it comes to saving for a baby.<br /><br /><br/><strong>Ask Other Parents &amp; Friends For Help</strong><br /><br/>Don't be afraid to reach out to the people around you! They say it takes a village to raise a child and no one is expecting you to do this by yourself. See if your neighbors are willing to help with meals, ask friends and family to babysit, and always remember you aren't alone.<br /><br /><br/><strong>Bring Home Hospital Samples &amp; Items</strong><br /><br/>There’s a good chance that you’re paying for every little thing you get at the hospital. Even if you don’t technically see the free samples on your itemized list of expenses, your hospital bill more than justifies bringing home the diapers, bottles, baby formula, pacifiers, wipes, lotions, shampoos, etc. Doing so can give you a great start and save you some money while you figure out which products and brands work best for you and your baby.</p><h2>Beyond Delivery</h2><p><strong>Adjust Your Beneficiaries</strong><br /><br/>Be sure to make your child a beneficiary for things like life insurance or IRAs. Keep in mind you may need to adjust how the money will be available to them should something happen.<br /><br /><br/><strong>Seek Disability Insurance</strong><br /><br/>While life insurance is important to help those around you should the worst happen, you are far more likely to need disability insurance. Check that it is enough to meet your main expenses while you are unable to work, and double-check that it is still enough to cover everything now that there is a new member to the family.<br /><br /><br/><strong>Write or Adjust Your Will</strong><br /><br/>For the same reason, it's important to have an emergency fund, it's important to have a will. You never know what may happen and it is the duty of the parent to protect their child. Designating a guardian and ensuring how any estate is to be divided up is a good place to start.<br /><br /><br/><strong>Keep Funding Your Retirement</strong><br /><br/>Don't forget your other long-term plans and personal financial goals! Things like saving for retirement are very important and you need to keep on top of it so your child doesn't have to support you in your old age.<br /><br /><br/><strong>Save For Your Baby’s Education</strong><br /><br/>While it is unlikely you will save enough to cover the full cost of your child's education, every bit helps to keep them debt free in the future! Start a savings account now and add to it when you can.<br /><br/></p><p>While having a baby may be expensive, you can put a plan in place to take some of the stress off your finances. Plan as far ahead as you can and do your research to see how much you should save before your baby arrives. Stick to a budget and take advantage of any money-saving tips you can find for new parents. Being financially smart for your new baby will help you focus on what’s most important – taking care of your new little one.</p><h1>&nbsp;</h1>

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Best Money-Saving Tips: Saving For a Baby

<p>When you’re expecting a new baby, advice seems to come from just about everywhere. From family members and well-wishers to entire best-selling books, there’s no shortage of places to find friendly suggestions about how to be a parent. But for all the advice, not much is said about money. And yet bringing another human being into the world is a major financial undertaking. So at the risk of giving you even more advice, here are 8 things you can do to prepare financially for a new baby.</p><h3><strong>1. PRE-BABY BUDGET</strong></h3><p>Bringing a new baby into the world also means bringing a lot of new stuff into your home, including a car seat, stroller, and crib. And it all costs money.<span>&nbsp;</span><a href="https://merrickbank.com/Learn/Budgeting/Six-Basics-of-Building-Your-Budget"><span>Set a realistic budget</span></a><span>&nbsp;</span>that will allow you to buy everything you need for your little one without necessarily going overboard on buying the fanciest, most expensive baby things money can buy. And don’t forget to plan for the cost of checkups and prenatal care for mom and baby.<span><div></div></span></p><h3><strong>2. POST-DELIVERY BUDGET</strong></h3><p>As you meet with doctors to plan your baby’s birth, ask hospital administrators and insurance providers about the<span>&nbsp;</span><a href="https://www.nerdwallet.com/blog/health/15-financial-must-dos-to-prepare-for-a-new-baby/"><span>out-of-pocket expenses you will have to pay after the baby is born</span></a>. Not all expenses are predictable, but you should at least plan to pay your out-of-pocket portion of doctors' bills and the cost of a hospital stay for baby and mother. Also, save a new place in your budget for recurring costs like buying food, clothing, and diapers.<span><div></div></span></p><h3><strong>3. PLAN LEAVE</strong></h3><p>Recovery from having a baby can take time. And learning to become a parent doesn’t happen overnight. If you haven’t done so already, check with your employer to see whether you and/or your partner can get paid paternity and/or maternity leave. If your leave isn’t compensated, have a plan to cover bills and other expenses during the time you take off.</p><h3><strong>4. CHILD CARE</strong></h3><p>If you plan to enroll your child in daycare so you can get back to work, be prepared for a major expense. Whether in-home or at a daycare facility in your neighborhood, the<span>&nbsp;</span><a href="https://www.cnbc.com/2018/08/28/forget-college-tuition-annual-childcare-costs-exceed-20000-here.html"><span>cost of child care can exceed $20,000 a year</span></a>. That’s a cost on par with college. If you can afford to be at home with your child or even work from home, you can save a lot of money on childcare. If not, be sure to budget for care expenses every month moving forward.<span><div></div></span></p><h3><strong>5. INSURANCE</strong></h3><p>Now that you have a new dependent, you’ll need to put an extra person on your health insurance plan. You can check with your current insurance provider to see what adding a dependent will cost you each month. And because that little one now depends on you for everything, it’s a good idea to have a life insurance policy, which can vary in cost.&nbsp;</p><h3><strong>6. START SAVING</strong></h3><p>It’s<span>&nbsp;</span><a href="https://www.thepennyhoarder.com/smart-money/prepare-for-a-baby-financially/"><span>never too early to start saving</span></a><span>&nbsp;</span>for your baby’s future. With a tax-advantaged investment plan, you can save for your kid’s college or other upcoming expenses. And the earlier you start, the more opportunity you give your investments to grow. Talk to an adviser about the risks and benefits of investing your money, as well as any other charges and fees associated with investing in your state.<span><div></div></span></p><img src="https://merrickbank.com/-/media/Merrick/Images/Blog/MER19-0022_VP_Jan-Mar_Blog-Image_new-baby_800x800.jpg?h=800&w=800&la=en&hash=807450FA2FA965836AA1FDB16FC1AC3214D8BD13" width="100"/><h3>7. ESTATE PLANNING</h3><p><span><div><a href="https://www.parents.com/pregnancy/considering-baby/financing-family/a-nine-month-plan-for-getting-your-familys-finances-in/"><span>One of the most important things you can do as a new parent</span></a><span>&nbsp;</span>is to make a will. A will allows you to dictate who you want to care for your child if something were to ever happen to you. It also gives you an opportunity to spell out how your assets should be distributed and who should administer those assets upon your death.</div></span></p><h3>8. EMERGENCY FUND</h3><p>Kids can be accident prone. They also depend on you to make a living to give them the necessities of life, including the unexpected expenses. Now is the time to start planning and saving for emergency expenses. You should have at least<span>&nbsp;</span><a href="https://www.nerdwallet.com/blog/health/15-financial-must-dos-to-prepare-for-a-new-baby/"><span>3 to 6 months’ worth of living expenses saved away</span></a><span>&nbsp;</span>in case you’re unable to work or your little one incurs some unforeseen costs.<span><div></div></span></p><p>Having a new baby isn’t all dollars and cents, but being financially prepared can make the experience a whole lot smoother. Plan ahead, start saving, and expect to pay for the unexpected and you and your new baby can be financially prepared for just about anything life throws your way.</p>

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8 Financial Steps to Bringing Home Your Baby

<p>If you don’t teach your kids, someone else will — words of wisdom that apply to table manners, cartwheels, and just about everything in between. This also applies to how we teach and talk to our kids about money.</p><p>Teaching your kids about money is a great way for them to get some valuable life lessons directly from you. And you may even learn something new as part of the process too. So, here’s a little homework to give you a head start on your kids’ financial curriculum: 7 tips for teaching your kids about money.</p><h3>1. TEACH THE VALUE OF EARNING INCOME</h3><p>One of the best ways to teach your kids about the value of money is to allow them to earn it themselves. If you have the means, give your kids chores around the house and let them earn an allowance for their efforts. Or, if they’re old enough, help them find ways to earn money by themselves. This can be through a lawn mowing service, pet or child babysitting or even the classic lemonade stand. Understanding that earning money takes time and hard work to achieve can help them put money in the proper perspective.</p><h3>2. TEACH THE DIFFERENCE BETWEEN NEEDS AND WANTS</h3><p>When it comes to spending your own money, it’s always a good idea to budget for all your needs (food, house payment, rent, utilities, etc.) before spending money on things you want (the latest electronics, designer clothes, etc.). Teaching your children the difference between<span>&nbsp;</span><a href="https://merrickbank.com/Learn/Budgeting/Balancing-Wants-vs-Needs-to-Build-a-Better-Budget"><span>needs and wants</span></a><span>&nbsp;</span>is a great way to help them understand the basics of a budget. You can explain to them that needs are things we must have to survive and be comfortable, and money should always be spent on those first. Then, you can spend whatever money you have left on the things you want to buy or save.<div></div></p><h3>3. TEACH THE VALUE OF SAVINGS</h3><p>Impatience is one of the tried and true hallmarks of being a kid. When most kids decide that they want something, they think they should get it right now. But money and impatience don’t always play well together. We often have to save for the big ticket items we all want, like computers, laptops, bikes and more. So instead of indulging your child’s every want right away, teach them to save up for that toy, bike, video game, or computer. Help them see that once the necessities are paid for, they can save up for the fun stuff with what’s leftover.</p><h3>4. TEACH THE SECRETS OF SAVINGS</h3><p>Once you’ve gone over the basics of why saving money is important, you can move to the next level of teaching them how to save. If there’s something everyone in the family wants – like a vacation, movie, video game or other fun experience – you can tell your kids that you’re all going to work together to save for it. You can place a jar somewhere that everyone can see it and have everyone deposit money into the jar as they can. If your kids are older, you can help them open a bank account and show them that each month, their money can earn more money. Teach your kids the concept of earning interest at an early age. It will leave a strong impression and help motivate them to spend less and save more. While you’re at it, take the opportunity to teach principles of<span>&nbsp;</span><a href="https://www.investopedia.com/terms/c/compoundinterest.asp"><span>compounding interest</span></a><span> </span>and the<span>&nbsp;</span><a href="https://www.investopedia.com/terms/t/timevalueofmoney.asp"><span>time value of money</span></a><span> </span>to give your kids a true appreciation for the earning capacity of their money.<div></div></p><h3>5. TEACH THE CONCEPT OF BORROWING MONEY</h3><p>Have a heart to heart with your kids about the benefits (and dangers) of borrowing money. Talk about how borrowing money responsibly will eventually help your kids build credit, buy a car, and purchase a home—all great financial pursuits. In relation to your conversations about compounding interest, help them understand that borrowing money comes at a price. Perhaps most importantly, teach them the value of staying on top of their debts and making payments on time every time. Discuss some of the consequences of falling behind with their bills. You could even use their own chores as a good visual and metaphorical example. (What happens when you go too long without cleaning your room or cutting the grass?) Staying on top of finances is always easier than trying to play catchup.</p><img src="https://merrickbank.com/-/media/Merrick/Images/Blog/MER21-0071_VP_Apr-Jun_Blog-Image_Teaching-Kids-Money_800x800_v1.jpg?h=800&w=800&la=en&hash=0F7B50725B0D436ED2BBC048B54B5CE20EB173B0" width="100"/><h3>6. TEACH EVERYDAY EXAMPLES OF GOOD FINANCIAL HABITS</h3><p>Pay attention to how many times you interact with your money during a given day. Use these interactions as teaching opportunities for your kids. At the grocery store, for example, show your kids the difference in price between brands. Show them how much you spend on a typical trip. Teach them about using a credit card to pay for a week’s worth of food. And, explain that the money you earn and deposit in your account will eventually pay for everything you buy. Your kids already pay attention to these simple financial interactions. If you take the time to teach valuable financial lessons, you can prevent your kids from making assumptions and taking money (and groceries) for granted.</p><h3>7.<span>&nbsp;<span>&nbsp;</span></span>TEACH AND LEARN TOGETHER</h3><p>As you teach your kids about money, you may be surprised about how much you learn about your finances in the process. Being the teacher forces you to practice what you preach. It also helps you better understand difficult financial concepts when you put them in simpler terms and say them out loud. Learning about finances together also means asking your kids if they have questions. They may eventually ask you something you don’t know, forcing you to do a little more research and helping you save and spend smarter.</p><p>&nbsp;</p><p>Make financial learning fun for you and your kids. The lessons you teach (and learn) will pay off for you and your family.</p>

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7 Tips for Teaching Your Kids About Money

<p>Football leagues, didgeridoo lessons, science tutors, Boy and Girl Scouts. The costs of after-school activities can add up fast for unprepared parents.</p><p>In fact, since the inception of the Huntington Backpack Index—which tracks extracurricular costs and supplies—annual costs of extracurricular activities have risen more than 90 percent. In 2019, school supplies, extracurricular fees and technology can cost parents:</p><p>●<span><span>&nbsp;</span></span>$1,017 for elementary school students</p><p>●<span><span>&nbsp;</span></span>$1,277 for middle school students</p><p>●<span><span>&nbsp;</span></span>$1,668 for high school students</p><p>We all want our children to succeed in school and in any after-school activities they want to do. So if you’re looking for options to keep costs down this school year, consider some of the following methods.</p><h3>1. FIND LOW COST TUTORS</h3><p>Instead of shelling out money for high-priced teachers, search local college postings for student tutors. If friends or acquaintances specialize in a subject your child likes, see if you can enlist their help.&nbsp;</p><h3>2. LOOK FOR LOCAL OPPORTUNITIES IN YOUR COMMUNITY</h3><p>Community centers and libraries often have arts education programs ranging from basic watercolor painting to music, sculpting, or drama. Many art and science museums provide inexpensive or free programs for elementary and junior high students.</p><h3>3. EARLY REGISTRATION</h3><p>Some after-school leagues offer percentage discounts for early registration. If you plan to register early, it will also give you some additional time to put more money into a savings account for costs when the season or class begins.</p><h3>4. SCHOLARSHIPS AND SPONSORSHIPS</h3><p>Some leagues and programs, especially local ones, have sponsorship programs with local businesses. Finding these programs through either community bulletin boards or your school can help keep costs down. Other leagues might provide scholarships to help with the costs.&nbsp;</p><h3>5. TRY FUNDRAISING</h3><p>Many sports teams and art programs will offer fundraising opportunities to help you pay for their activities. Ask ahead of time if the team or class will offer a fundraising opportunity. If not, consider putting together your own fundraising activity that your child can help with, such as baking cookies.&nbsp;</p><img src="https://merrickbank.com/-/media/Merrick/Images/Blog/MER19-0037_VP_Jul-Sep_After-School_800x800_v1.jpg?h=800&w=800&la=en&hash=E33FBC54B3912840BB91417E182918BEF24F95DF" width="100"/><h3>6. VOLUNTEER</h3><p>Find a way to volunteer or otherwise exchange services for a cost discount. Being able to provide coaching, technical assistance (think mending uniforms or maintaining equipment) or simply transportation can help you negotiate a lower cost.</p><p>&nbsp;</p><p>In addition to these specific cost savers, there are more general ways you can save on after-school activities. Make some snacks or meals ahead of time to keep them from having to pay for restaurants. Renting equipment is significantly cheaper in the short term until your child is ready to commit to an activity. Finally, setting up carpooling groups with other parents can save cash on gas over time.</p><p>There are plenty of ways to use the money you save, whether it’s investing your child’s college fund or putting it towards other after-school expenses. Whichever you decide, remember to invest the cash wisely in a way that it can grow.</p>

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6 Ways to Save on After-School Activities

<p>You’re head over heels for your future spouse. But if you or your future spouse are upside down with debt, it can put a serious strain on your marriage. Before you tie the knot, tie up a few loose financial ends and have a discussion about money with your better half. Here are a few questions you can ask to get the conversation started.</p><h3><strong>1. DO YOU HAVE ANY DEBT?</strong></h3><p>When it comes to matters of money, it’s best not to beat around the bush. Start by asking the most direct question of all and see where your debt discussion takes you. It might be as simple as reviewing a car loan together. But it also could be much more involved, including a discussion about student loans and credit card debt. Find ways to<span>&nbsp;</span><a href="https://www.netcredit.com/blog/10-financial-questions-to-ask-before-getting-married/"><span>speak frankly about financial matters</span></a>. An open discussion about debt can be good for your relationship.<span><div></div></span></p><h3><strong>2. HOW WILL WE MANAGE OUR MONEY?</strong></h3><p>Make the decision before marriage whether you’re going to combine your incomes and accounts.<span>&nbsp;</span><a href="https://www.lifehack.org/articles/featured/30-money-questions-ask-your-fiance-before-marriage.html"><span>Who’s going to take the responsibility for paying certain bills</span></a>? And if you do have debt, how much of your income will go towards paying off your loans each month? While you’re at it, discuss setting up a budget to pay for wedding expenses and other expenses early in your marriage. This is also a good time to talk about putting money away for emergencies and starting to save for retirement.<span><div></div></span></p><h3><strong>3. WHERE SHOULD WE SET DEBT BOUNDARIES?</strong></h3><p>Regardless of your current debt situation, it’s important to establish spending boundaries with your future spouse.<span>&nbsp;</span><a href="https://www.nerdwallet.com/article/finance/7-money-questions-ask-getting-married"><span>Have a discussion about when it’s okay to go into debt</span></a>. Talk about responsible credit usage, including maintaining acceptable credit card balances. And take the opportunity to research and review recommended credit usage for your combined income categories. By setting debt boundaries early, you can avoid getting into debt trouble later in life.<span><div></div></span></p><h3><strong>4. DO YOU KNOW YOUR CREDIT SCORE?</strong></h3><p>If you’re eventually going to buy a home or make any major purchase with your partner, it’s important to know their credit situation. You could even<span>&nbsp;</span><a href="https://www.netcredit.com/blog/10-financial-questions-to-ask-before-getting-married/">t<span>ake some time to review your credit reports together</span></a>, just so there aren’t any surprises after marriage. Take the opportunity to take steps to repair any negative comments on your credit report and make goals to pay down some debt before the big day.<span><div></div></span></p><img src="https://merrickbank.com/-/media/Merrick/Images/Blog/MER19-0031_VP_Apr-Jun_Money-Questions-to-Ask_800x800.jpg?h=800&w=800&la=en&hash=14690C3BD16E714DB40AC41FE8BF7E53492C98ED" width="100"/><h3><strong>5. WHAT FINANCIAL GOALS DO WE WANT TO ESTABLISH?</strong></h3><p>No two people have the exact same financial goals. So, it’s important for every relationship to<span>&nbsp;</span><a href="https://www.netcredit.com/blog/10-financial-questions-to-ask-before-getting-married/"><span>discuss individual financial goals</span></a><span> </span>and come up with joint goals that both of you can work toward. Write down your goals and remember that every good marriage includes at least some compromise. You may be on the same page in other areas of your life, but finances are a different ballgame. Find common ground and be supportive of one another’s financial goals.<span><div></div></span></p><p>All is fair in love. But if you or your future spouse don’t talk about money before marriage, you’re not being fair to each other or to your marriage. Find time to discuss money and you’ll start your life together on the right financial foot.</p>

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5 Money Questions to Ask Before Marriage

<p>There are two ways to share a credit card: via a joint account (owner) or as an authorized user. Both options have risks and advantages that fluctuate depending on each user’s unique situation, so it’s important to understand each before choosing one.</p><h3>How they’re similar</h3><p>In either scenario, both users are authorized to use the account for purchases. In most cases the payment history is reported on both of your credit reports, regardless of who actually uses the account.1 They’re both effective ways to build your credit history or help someone else build theirs—as long as each of you use that credit wisely.</p><h3>How they’re different</h3><p>The most significant difference between sharing a joint account and being/having an authorized user is the person responsible for making payments and repaying the debt.</p><p>On a joint account, both parties are held equally responsible for making payments on time and keeping credit usage to a manageable level. If payments are made on time, both parties benefit from having positive payment history reported to the credit bureaus. If payments are late or skipped, it could negatively affect both credit reports. Joint accounts are normally recommended for couples that already share expenses, and in general are initially opened as joint accounts rather than adding someone to an existing account.&nbsp; Please keep in mind, however, not all issuers are the same.&nbsp; Merrick Bank, for example, does not offer joint accounts.</p><p>Authorized users, on the other hand, are in general not legally responsible for making payments, even though their credit profile may be directly affected by the payment history on the account. Before becoming an authorized user on someone’s card, consider what you know about their habits, and whether you believe the account will be managed responsibly.</p><p>On the flip side, adding someone as an authorized user to your credit card account—usually a spouse or child over 16 years old2—may be a great way to help someone begin using credit and establish a credit history. Just be certain that they will be responsible and follow your parameters for usage. Authorized users can usually be removed from the account with a simple phone call.&nbsp;<strong>Please keep in mind, however, not all issuers are the same.&nbsp; Merrick Bank, for example, will add anyone as an authorized user, but account history will only be reported to a spouse’s credit bureau.</strong></p><h3>Consider carefully before choosing either</h3><p>With a joint account or an authorized user, you’re counting on the behavior of another person, so the choice is not to be taken lightly. It’s best to keep it in the family and not share credit with friends, roommates or others unless you have a strong, trusting relationship.</p><p></p><h3>Sources</h3><p>1 http://credit.about.com/od/creditcardbasics/f/authorizedjoint.htm</p><p>2 https://www.nerdwallet.com/blog/credit-cards/difference-between-authorized-users-and-joint-cardholders/</p><p></p>

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