College! Oh No! Already?

2018-03-24_1546Before my boys entered school and I would take them to the grocery store and huff and puff because one would run away and the other would not stop talking or complaining, I remember a cashier saying, “The time goes so fast!  They will be out of school before you know it!”  My time was in slow motion and I couldn’t wait for them to start school!  But now, as my oldest finishes senior year in high school – oh boy was she right!  How did this happen?

How could my little rambunctious 2 year old be 18 and heading to college in 5 months?  Wait!  How did college costs escalate so dramatically?  How did the college fund end up not even covering a full year of tuition and room and board?  Yikes!  As parents we want to be able to fund our children completely for college, but for most cases, it is just not possible, nor is it a wise financial decision.  Not only should the children have a financial stake in their own education, the parents should not neglect their own retirement savings to pay outright for college. 

There is nothing wrong with coming out of school with student loans!!!  Nothing!  If you overspend on a car or house and cannot pay back the loans, the car and home will be taken away.  If you overspend on your own educational investment, NOBODY can take away your degree and experiences.  It will be yours forever! 

So parents – here are a few tips………..  Enjoy your kids as they grow!  Enjoy every stage and age!  Each one of those stages and ages make sure you are completely funding your retirement year by year.  Max out your 401K and IRA every single year.  Scholarships, grants, and loans can fund your children’s education.  There are no scholarships, grants, or loans to fund your retirement.

Student loans are OK!  Don’t freak.  As long as you set yourself up so that you can retire, all will be good.  The problem lies when your kids have to pay back their student loans and fund you in old age!!!    

This entry was posted on March 24, 2018. 1 Comment

Family Financial Values


Summer is unofficially coming to a close.  Kids are going off to college.  High schools that follow the college semester structure are opening next week.  Despite the fact that the solstice gives us another month and a half of technical summer; for kids – it’s just about over.  Don’t let your beloved offspring jump off into their own lives and worlds without taking the time to educate them on their own financial responsibilities.

The State of Illinois, where I live, requires one semester of Consumer Education. Unfortunately, many teachers dread teaching this course, most students take it knowing it’s required, and enthusiasm on both ends is completely lacking.  This equates to a waste of time unfortunately.  This is probably one of the most important classes you can take in your entire lives!  But parents, don’t allow the schools to teach it all.  Since conditions are never perfect and kids need repeated prompts to learn anything, it is most important to teach financial lessons at home.  Now.

For example, I took my high school senior to the bank to open a high school checking account.  He already had a savings which we linked to his new checking.  With his part-time summer job, I explained how to put the money in the ATM machine, 1/2 into his checking and 1/2 into his savings account.  Because he is under 18, I have access to both accounts.  He was given a debit card that will only be used from his checking account.  Therefore the money in his savings is untouchable.  All personal spending that he chooses to do will be with his debit card so that we can monitor and keep track of it.  I explained every step, process, and reason.  This has given him the independence and responsibility that boosted his self esteem and promotes his self worth.  He is not just learning the concepts of earning and saving, he is physically doing it.

As we continue to use and monitor this account, I will also make certain, he analyzes what he is spending to make great choices and decisions now and in the future.  By giving him this responsibility, he will learn early on the concepts of saving, necessities, wants and delayed gratification.  We won’t go anywhere near the $0 mark as to avoid all fees.  In this learning process, that is my job as the parent to cut it off if that should happen.  This is a fantastic financial independence step into adulthood.  Every bank offers a high school checking account that has no or relatively low fees and a minimal balance.  Start this process now.

Use this last week to deliver values that will benefit your children for a lifetime and beyond.  As you teach kindness, gratitude, consideration, responsibility and values, always include finances.  The world will be a better place for it.

Don’t Break From Your Bills

summer billsNow that the Fourth of July festivities are over and our country made it through with minor scathing, it’s time to get back to business or back to summer break as usual.  I love summer because when I get up right before 6:00 am, it’s already completely light out! There is so much possibility and time in the day to get everything done that needs to be done and time left over for play.  However, this requires prioritizing.

Youch!  Prioritizing?  During the summer?  Isn’t that supposed to be a time for freedom and leisure and taking a break?  Of course, but there are some necessary items that must be taken care of consistently.  Like bills!  If you have automated all of your fixed bills (good for you!), but that doesn’t account for all the other items you are spending.  These must be adhered to as well.  You can’t break from your expenditures and say “I’ll just look at these in the Fall”.  With rising interest rates on credit cards you will paying these expenses for years to come.

Pay attention to your daily expenses.  Look at your bank account and compare it to your debit card transactions.  Look at your credit card expenses online and daily bank account transactions.  Are you spending the same each month?  More?  Did your monthly interest charge go up?  Can you transfer your balance to a 0% interest 15 month credit card?  Can you develop a plan to pay off your bill before the 0% runs out?  Seriously ask yourself these questions.  Plan on the next week taking a hard look at your daily spending habits.  You will learn a lot!  Force yourself to come to terms with your spending habits, deserved or not.  As you enjoy your summer, you must also be cognizant of your bills.  Don’t let them slip away as you bask in the sun or float down the river.  It’s worth the little extra time you may have and do have once you prioritize.


Summer Fun! Don’t Financially Regret.


June 21st marks the first day of summer.  It is a pleasurable season for most people.  We slow down, enjoy the weather, spend more time with the kids and just give ourselves a reason to relax temporarily.  This could be a costly experience or a cost saving experience depending on how you plan.  Taking the family on lavish trips because time is available and all your friends are doing it, could prove to be a very costly experience. Exploring what your city has to offer and enjoying the solitude of your own backyard is a cost saving experience.  Each scenario may or may not fit into you “budget “or time schedule.  Both result in fabulous memories to cherish for a lifetime.

So how can you decide if indeed you can spend that money on that once in a lifetime vacation and not stress over the bills that accompany it later?  What happens if you have it booked and are set to go within the next 2 months but you suddenly regret that it has a nonrefundable $1000 deposit?  Then it is time to scrutinize your finances.  And yes, summer allows you the time to relax and slow down and ………crunch numbers.  It is an invaluable project.  I know it’s hard to put money aside each month towards a vacation fund.  This is something that requires delayed gratification which has become a lost art. Most people don’t think like that.  They want.  They do.  They finance it.  They stress and regret.

I challenge you in the last week of June to pull up your credit card statements and bank account statements for the last 3 months.  Determine which expenses are fixed, meaning they are the same every month and do not change (car payment, mortgage).  These should be automated.  They should be set up to be taken out of your bank account every month on the date you choose (preferably before it’s considered late).  Take away the thought process, time and burden.  As the summer progresses, I will take you through some more tips on rediscovering your finances so that you can take those trips, stay within your means, pay it off before you travel and remain free of regret!

Enjoy your June!

This entry was posted on June 21, 2017. 1 Comment

Organize Your Closet? Organize Your Finances!

Organize finance

Doesn’t it feel wonderful to have your closets organized just the way you want it?  Whether you pay a professional to do it or just find a rainy/snowy Saturday afternoon to put the time in yourself, it feels amazing!!!!  Your whole outlook on life can change and get simplified and free your stress.  You don’t need 5 black tank tops.  You don’t need 6 black blazers (unless you are Rachael Maddow).  Eliminate and consolidate.

The same philosophy can be applied to your finances!  Eliminate and consolidate!  Just as you would evaluate your entire wardrobe before you decide what stays or goes, that’s what you need to do with your finances.  Take all of your expenses and put them together to see exactly what you have.   This is the consolidation phase.  You may find redundancies or surprises or just plain what was I thinking (like that multi-colored ruffled skirt lying on the floor of your closet).  Now we can eliminate!  Your first priority in your financial organization is credit card debt!

With interest rates on the rise, despite the advantages of your investments increasing, did you realize that your credit card interest rates will also rise?  Why should you pay more than what you bargained for?  Figure out what you can eliminate from your expenses and put that money towards paying off your credit cards before they become even more expensive.

Don’t have a clue how to begin this process of organizing your finances?  Call an expert!  Just as you would pay a fee to professionally organize your house or closet, you can hire someone to organize your finances.  It is an investment in you.  You not only deserve it; you need it!



Love and Taxes

The month of February brings cold, dark days if you are living in the Midwest so the holiday makers invented Valentine’s Day smack dab in the middle of it.  I know that really isn’t the history of Valentine’s Day, but it is nice to remember to honor the one’s you love in the longest, shortest month of the year.  It is also the time for pulling your tax documents together.  Can you love this process?  Well maybe not, but it is an incredibly important task.  Let’s start with your year end credit card statement.  Obviously, most people are using their credit cards for numerous purchases (as established by the high rate of credit card debt in this country).  Most banks will send you a statement that categorizes all your spending on that card for the entire year!  This may not be accurate to a T, but is a wonderful place to find a lot of information!  Use this for business expenses, real estate taxes (if not paid within your mortgage), charitable contributions, medical expenses, and any other itemized deduction expenses you may have charged.  It is very useful and you can learn to love it. Maybe it will help you develop a budget for 2017 too!love-tax