Hope for your financial life and beyond

The Real Secret to Developing a Work Ethic in Kids

May 17, 2014 by 6 Comments

Hidden Nuggets Series #41 - “Therefore, I urge you to imitate me.” I Corinthians 4:16

Like father, like son

The messages this week at Luke1428 have all centered around the benefits, both financial and emotional, that children can receive from doing work. My wife and I have been teaching our children that labor leads to profit and that if they don’t work they won’t get paid. Those are big messages and the sooner they learn them the better.

Have you ever wondered how a solid work ethic gets ingrained in a child? Is it something they are born with? Does it come through the hearing of verbal instructions given by adults? Or maybe it results as a reaction to punishment received for laziness or disobedience.

Those ideas have merit. However, I don’t believe any of them in and of themselves will ultimately produce a child with a strong work ethic. What will ultimately do it? The answer is simpler than you think:

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Filed Under: Inspiration, Kids and Money, Work Tagged With: , , ,

Why We Don’t Give Our Kids Allowance

May 13, 2014 by 30 Comments

My wife and I are not giving our kids allowance simply for existing. We’ve chosen a different path to reward them with money.

kids allowanceDoesn’t it seem our culture has lost the passion for hard work? I look around and see adults taking risky, unnecessary shortcuts in an attempt to get ahead in their career. I see people playing the lottery to get rich quick instead of choosing to build wealth over time.

Then there are those people in tough financial situations that won’t take certain jobs because they consider the position beneath their standards. Really? Must not be that desperate.

Our mindset has changed to thinking we should be given things simply because we deserve it. Someone else (like the government) will provide for me, right? So why work?

Sad thing is, these attitudes are being scooped up by our young people. We have a generation of kids who bristle at the idea of doing a 30-minute homework assignment on a Tuesday night. Cuts into their Snapchat time. If they do muster the desire to attempt the work, they only put in half the effort. They shut down if the answer to a problem causes them to think for more than two consecutive minutes.

More and more kids are refusing to push themselves to work. They are opting out of excellence. And when they fail, someone or something else is to blame.

If we are going to succeed in life and with money, we have to clearly embrace a concept found in the Bible - “In all labor there is profit but idle chatter leads only to poverty.” (Proverbs 14:23)

That’s why we are not giving our kids allowance.

Giving Kids Allowance Doesn’t Teach the Value of Work

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Filed Under: Kids and Money, Work Tagged With: , , ,

How We Are Coping With the Family Rat Race

April 2, 2014 by 4 Comments

Four times in my life I’ve been able to experience the truth of this Bible verse:

“Behold, children are a gift of the Lord, the fruit of the womb is a reward.” (Psalm 127:3)

Each time I was moved to the point of tears as that new life came into the world. To think I helped create a completely unique person was very humbling. More than that, it was overwhelming, knowing that a large part of who they would become depended upon my parenting skills.

Psalm 127:4 goes on to say that children are, “Like arrows in the hand of a warrior…” The thought about parenting here is clear…the warrior is me, the parent. Just like a warrior breaks the stillness of the air and sends his arrow toward the mark, so parents are to raise children so they fly straight and true to hit the target.

But what target do we want them to hit? And why? How will we get them there? Will I know if I’m succeeding?

Those type of questions often leave parents confused and prompt us to make some poor decisions.

I’m talking more about this today as I guest post for Cat Alford at Budget Blonde. I’m very excited for Cat who has just become a new mommy to twins. Visit her site now and read my article entitled:

“The Evolution of Parenting: Are We Pressing Our Kids Too Far?”

Image at FreeDigitalPhotos.net

Next Post: Pain and Suffering Is No Excuse to Quit Moving Forward

Prior Post: Spring Break - Glorious Rite of Passage or Undisciplined Waste of Money

Filed Under: Kids and Money Tagged With: , , ,

How to Save Money and Cut Taxes by Hiring Your Kids

February 13, 2014 by 15 Comments

The following post is by Kim Fourman. Please note that this article is intended to discuss general tax topics. Consult your own tax advisor regarding your specific circumstances.

Boy at a weaving station - circa 1908

One of the most overlooked ways for small business owners to save on taxes is by hiring your kids in the business. Here’s how it works:

Consider What Work Can be Done

The first thing to consider when hiring your kids is the work that your child can do. Their work must be age appropriate and must be legitimate work for your business.

For example, having your child do household chores would not count as working for your business, but picking up trash and cleaning up the yard at your rental property would. The IRS has accepted employment by a child as young as seven. You do not run afoul of any federal child labor laws when you employ your own children, but make sure to check with your state department of labor.

You Must Do the Paperwork

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Filed Under: Kids and Money, Taxes Tagged With: , , ,

The South Ain’t Gettin’ Personal Finance

February 3, 2014 by 41 Comments

I happened to enjoy some extra reading time last week because Snowmaggeddon 2014 kept most of Atlanta captive to their homes. I ran across this article from Time Business and Money that talked about the plight of Americans and their money. In it, they cite the Assets and Opportunity Scorecard report from the Center for Enterprise Development. This report found 44% of Americans were living under “persistent economic insecurity that makes it difficult to look beyond immediate needs and plan for a more secure future.”

According to the article, this segment of the population has less than $5,887 in savings for a family of four. With credit scores also shot from the latest recession and housing crisis, they feel their only alternative to manage through emergencies is to resort to high interest credit cards or payday loans. As those of us deeply focused on personal finance know, these types of programs only serve to bring further damage to the individual’s financial state.

Being an investigative personal finance blogger, I decided to look up the full CFED report and find where my home state of Georgia ranked. A couple of clicks and…uh-oh…that doesn’t look good. However, the results showed an even more alarming trend as it relates to the entire U.S. South. Here are the ranks for states 42-51 on the list (District of Columbia included):

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Filed Under: Kids and Money, Managing Money Tagged With: , ,

Dealing With My Daughter’s BIG Milestone

October 23, 2013 by 34 Comments

Growth AheadMy oldest daughter, Miss LukeTeen28 (MLT28), is quickly approaching a major milestone. To be honest I’m having difficulty believing my wife and I have reached this point. It seems like only yesterday we were meticulously buckling her into the car seat at the hospital (as only newbie parents can), readying her for the first car ride home.

Boy, did I take that trip carefully.

Now 12 ½ years later, we are about to cross that invisible yet unmistakable line that serves as a right of passage for kids as they grow towards young adulthood. Most parents dread this moment because it signals their child is becoming capable of deciding his or her own path. While I will admit to a certain level of anxiety, I’m really looking forward to it. I want to see how all these years of teaching, training and modeling will play out as she makes decisions.

The right of passage to which I refer has nothing to do with my daughter becoming a teenager though. It’s a much greater issue that will provide her with great lessons as she matures into adulthood. What could possibly be this big a deal for an almost 13 year old?

Making her first BIG purchase with her own money. Here is what she wants:

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Filed Under: Kids and Money, Saving, Spending Tagged With: , , ,

Celebrating Victory: Reward Yourself For Life’s Achievements

August 28, 2013 by 31 Comments

I love celebrations! Especially when it involves my family or myself, either being the intended target or getting to help put the celebration on in some way. Call me selfish, call me self-absorbed but celebrations and finding ways to reward yourself are infinitely better when you have a personal stake in it.

Like the time my wife surprised me for my 25th birthday. We went out for dinner with another couple and came back to our apartment to have some coffee and play cards. I opened the front door to the dark apartment and was greeted with lights flipping on, the popping of balloons (which I thought were gunshots) and shouts of “Surprise!” from a dozen or so of our friends from church. The momentary shock contorted my face and caused me to curl my body into the fetal position. I posed like Lee Harvey Oswald being struck by Jack Ruby’s bullet.

Parties are great for significant birthdays, anniversaries, graduations and weddings. But we shouldn’t limit their usage to just those occasions. Perhaps the best time to throw a victory celebration is when you have achieved some personal goal in your life. The Luke1428 household reached a milestone last month that we’ve been working on for three years and boy, did we have a blast celebrating it this past Saturday night.

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Filed Under: Goals, Kids and Money Tagged With: , , ,

Are You Setting Your Kids Up For Success?

August 13, 2013 by 11 Comments

“Indeed I have taken much trouble to prepare for the house of the Lord one hundred thousand talents of gold and one million talents of silver, and bronze and iron beyond measure, for it is so abundant.” — The words of King David speaking to his son Solomon in I Chronicles 22:14

What I desire for my children can be summed up in three simple assertions:

  1. To love God with all their heart
  2. To respect and serve others
  3. To find their passion and pursue it

That’s it. If those three realities emerge at some point in their development, I’ll be the happiest parent around.

Those are real broad, big-picture type goals. How to specifically teach and impart these goals by taking advantage of what life brings our way is another story altogether. I continually wrestle with how I can best move each of my children forward in these areas. I know this one thing for sure though - none of it will happen unless I’m involved in their lives.

I cannot assume they will get there on their own, without direction from me. I’ve got to be present every day - modeling, teaching, correcting, encouraging and guiding them. (And having a TON of patience.) I can help set them up for success but only if I’m an engaged parent, who maximizes their strengths, confronts their weaknesses and meets their needs.

Parenting is a hands-on affair.

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Filed Under: Kids and Money

What’s Rich to a 6-Year Old?

June 22, 2013 by 8 Comments

Nothing quite says summer like swim lessons. It has been an annual ritual in our household for the last five years as our two oldest, and now our two youngest, are learning the basics of swimming pool survival. It really puts me at ease knowing my kids can make it to the ladder in the deep end. (But I’m still on guard when they jump off the diving board.)

This past week it was swim lessons for our youngest two who are 5 and 6. We take private lessons at a lady’s house who has been doing swim lessons for the past 34 years. She loved teaching so much she built her own in-ground pool in her backyard 32 years ago and has been packed with would-be swimmers ever since. She is known throughout our town as being one of the best around.

Her pool and deck area is beautifully landscaped with shrubbery and flowery plants all around. There is a rock waterfall nearby that flows to a pond at the bottom, filled with lily pads and small goldfish. She also has three friendly dogs that roam the backyard which my kids love.

On Tuesday, as we were leaving lessons, the 5 and 6 year old were having a discussion about all the “cool” things that were at the lady’s house.

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Filed Under: Kids and Money Tagged With: , ,

Students Comparison Shop for Generics and Save Big!

April 30, 2013 by 17 Comments

Does your child ever groan when you buy generic brands at the grocery store? That’s what happened recently on one of my shopping trips. I was trying to comparison shop when I reached for the generic brand peanut butter.

“Dad, do we have to get that?” whined my 12-year-old daughter. “We always get Jif.”

“You don’t even eat a lot of peanut butter,” I replied. “Besides, your sister is the peanut butter connoisseur of the house. Let’s test it out and see what she thinks.”

Much to her chagrin, her five-year old sister loved it! Oh, did I mention our food budget also liked it? There’s a $1.80 difference between comparable jars of Publix peanut butter and Jif and a $2.50 difference between the Publix brand and Skippy or Peter Pan.

This led me to do some field research on food prices, using my high school personal finance class as data collectors. I gave them a list of about 20 items and asked them to comparison shop the difference between name brands and generics at their local grocery store. They were then to calculate the difference they would save by buying the generic brand.

The result was a real eye opener for them.

Comparison Shop Data: Name Brands vs. Generics

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Filed Under: Kids and Money, Saving Tagged With: , ,

Hey Parents…It’s OK to Create Cheap Memories

April 23, 2013 by 26 Comments

I’m a parent…four times over. Like anyone else, I love seeing my kids enjoy themselves. And I’ve spent a lot of money the past 12 years in an effort to create plenty of fun and lasting memories for each one of them.

We’ve done Disney and Sea World - several times. We’ve rented the condo at the beach. We’ve booked the Royal Caribbean cruise. We’ve done the day trips to the Georgia Aquarium, the Atlanta Zoo, and the Coca-Cola museum.

All were awesome experiences with great memories. However, they all required major budget planning sessions. The vacations forced us to save for months.

Recently my oldest son reminded me in an interesting way, memories don’t have to bust the bank. They can be created with very little money leaving our wallets.

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Filed Under: Kids and Money, Relationships Tagged With: ,