Week #8: Financial Challenge

My apologies again for the late Reminder but Friday, February 22 marked week #8.

Week #8
Deposit Amount: $8.00
Total Saved: $36.00

Two months down and 10 more to go. In a few weeks the weekly deposit amounts will be in the double digits. Start thinking of ways you can budget your money to be able to keep up with the deposits for this Financial Challenge. Skip the daily Starbucks or Jamba Juice run a few days a week. Bring home lunch an extra day or two in the week. Have a garage sale.

Help for Gap Families

I had a conversation with a friend about him and his family moving back to the mainland. He moved back home to Oʻahu sometime last year and has been working here on the island to support his wife and their 4 children. I was under the impression that they made the move so that his children could grow up around his family and so that they were raised in the "island lifestyle" instead of the hustle and bustle of the mainland. I asked him why he was moving back to the mainland, and his answer was because itʻs too expensive to live here and that they are struggling.

Only he works full time with lots of overtime, while his wife stays home to care for their young children, with the youngest only being about a month old. I asked him if they applied for welfare and he said that they kept getting denied because of the amount of overtime that he works. So here is a gap family who does not qualify for state assistance, yet barely makes enough to be able to pay for necessities and obligations.

This is the case for many of our families here in Hawaiʻi, especially on the Waiʻanae Coast. Why should families seek "cheaper" places to live instead of being able to raise their children at home where they want to? This is exactly why I am passionate about financial literacy and education. I want to be able to assist our families and give them the knowledge and teach them the skills that are needed to survive in Hawaiiʻs economy. Itʻs not easy to afford rent, transportation, food, necessities, etc nowadays, however with the right guidance, families can see what small behavioral changes they can make to be able to rest a little easier at night, to not fight and argue about finances, and to have peace of mind that their financial future is one to look forward to, and not one to be afraid or uncertain of.

In addition to holding future workshops, I plan on providing one-on-one consultation and guidance to those who are ready to make positive changes with their finances. I am willing to help you, all you have to do is ask.

Financial Education for all ages: Toddlers, Preschoolers, College Students, Parents....

Since the inception of this blog I have been blessed by being asked to share some manaʻo about financial literacy/education to 2 different groups. The first group are young adults who are sophomore college interns. The second group are parents of children ages 0-5 years old.

I am thankful for the opportunity to make a difference in these young lives. There are many things someone told me about money and finances when I was in college, seeing as it was during those 4 years in my undergrad program that I made most of my financial mistakes. If each college student can just walk away with one little bit of information that will help them as they finish college and enter in to the work force, then I know that they will have a leg up in life.

For the parents and pre-school children, if I can empower the parents to talk about money with their children at a young age and teach them the skills necessary to be successful in life then these keiki will have an additional head start in life. My objective is to also have the parents of these children learn a skill or two about the way in which they handle their finances and be mindful of the example that they are giving to their children.

I hope to gain some feedback from these two groups to be able to apply to my future work as a Financial Educator and to help guide the principles on which I develop my future non-profit organization.

I will be sure to post on my experience with both groups and I know that it will be an engaging learning experience for the 2 groups as well as myself.

Unexpected Teaching Moments: When life throws a 5 year old a financial curveball

As promised, I said I would update on our trip to the Toy Store, Credit Union and Church. On Sunday, we attended church and Ku got to fill out his tithing envelope and give his $3.00 tithe to the church. He was really excited about being able to drop his tithe into the box.

After church we took a trip to Toys R Us and quickly found the Game section where he found the Ninjago game he had chosen to save for. However, the price on the shelf was more than what was online. The price had previously been $24.99 on the Toys R Us website. In the store the price was $33.99. When I looked up the price online on my phone while at the store, the price was then $29.99 online. I asked a sales associate if they would honor the web price and she said that they would. However, Ku had only put aside $26.00 for his purchase so far and would still be short a little over $5.00.

I could have just told him that I would throw in the $5.00, but decided to turn this situation into a lesson. I asked him if he remembered how much he put aside for his game, and he knew that he only had $26.00 to spend. I showed him the price on the shelf and he knew that he didn't have enough to make the purchase. He said that he would just find something else that he could get right away, but I explained to him that if he worked really hard this next week at doing his chores and reading his books, that he would earn enough to be able to come back in a week to make his purchase of the Ninjago Game that he has been saving for all along. He wasn't disappointed, and surprisingly as we exited the store, he didn't ask for any toys or say that he wanted anything, he was content with just looking.

I wanted to teach him that even though he wasn't able to get what he really wanted at that moment, that it wasn't wise of him to just pick whatever he could get at the time to temporarily fulfil his urge to purchase something with his money. A lesson, that I think we can all try to remember from time to time.

We had a really busy weekend and with Monday being a holiday we weren't able to make it to the Credit Union for him to make his deposit. Unfortunately the Credit Union that he has his account at does not use deposit slips, therefore I cannot teach him how to deposit using one.

I am super proud of my son as we share in these experiences together. As adults, we sometimes underestimate the power in decisions that our children have the ability of making. I have confidence that the small lessons about being smart with his money that we are instilling in him now, will guide him in to being a responsible and prosperous adult.

Budgeting and Envelope System: Even a 5 Year Old Can Do It

Itʻs been about four weeks since we introduced a chore and allowance program with our 5 year old son. Today, we went through his bank and counted his earnings. He had a few financial blessings this month that helped him get ahead. But just as in adult life, once in awhile we get thrown a blessing of a little extra money. He received $20 from his Aunty who was visiting from the mainland and hasnʻt seen him since he was an infant, he received $5 from the tooth fairy for his first tooth, and he received a $3 allowance bonus from his grandma for helping her wash her car. However, he missed out on receiving allowance while Sam and I were on our trip, but I think his bonuses made up for those missed earnings.

His total earnings were $37.75. He had set his goal of saving $26.00 to be able to purchase his Ninjago Game that he had seen in the store. But before he could use any of the money for something he WANTED. He had to put aside $3.00 (10%) to give away to charity. When I asked who he wanted to give the money to, he automatically said "Church." So tomorrow when we go to church, I will help him fill out a tithing envelope so he can give to the church. He also had to put aside $7.00 (20%) into his bank savings account. Which left him with $27.75, so he now has enough to buy his Ninjago Game. The extra $1.75 was left in his piggy bank so that he has a little head start on his next month of earnings.

I follow an envelope system when it comes to budgeting my money, so weʻre starting him early with the envelope concept too. He has three envelopes which he labeled "Hoʻolilo" (Spend), "Makauliʻi" (Saving), "Haʻawi Wale"(Donation). He put the respective amounts in each envelope and this weekend we will take a visit to Toys R Us so he can get his Ninjago game, The Credit Union so he can make a deposit, and to Church so he can tithe.

Iʻll keep you posted on his next Savings Goal and how his trip to the Toy Store, Bank, and Church went.

How will you use your Tax Refund?

Itʻs Tax Time! Which means that we see an influx of Rent-To-Own ads coming in the mail. We see flat screen TV boxes near rubbish cans along the street as we pass by. Vacations Hawaii has a nice long line of people making reservations to take a trip to Vegas.

If youʻre like me, you receive a decent amount of money from your Federal and State Tax Refund. Which is just that, a REFUND! Not Free money, as some people may think. So, what is the responsible thing to do with your tax refund? Pay off debt, Invest, Give to Charity, Save. Any of these options are ideal.

However, too many people treat their tax return as if they won the lottery. As if it was money they found in a duffle bag at the bus stop. Your tax refund is some of the money that Uncle Sam has been taking out of your paycheck all year long.

Iʻll be honest, I take a small portion of my tax refund and treat myself to a new outfit or a nice dinner out. But about 85-90% of my tax refund is put towards paying off debt. I have yet to file my taxes for 2012, but my plan is to use the money (if I receive a refund this year) to pay down my car loan so that I can be pretty much debt free (with the exception of student loans) come the end of 2013.

So my question to you is....What will you (or did you) spend your tax refund on?

Week #7: Financial Challenge

I apologize for not posting a reminder for last week, Week #6 on Friday, February 8, 2013.

Last weekʻs deposit was as follows:
Week #6 Deposit = $6.00
Total Savings Amount = $21.00

This weekʻs deposit is:
Week #7 Deposit = $7.00
Total Savings Amount = $28.00

It was also recently brought to my attention that you could have been doing the Challenge backwards, starting with $52.00 in the first week and working your way down. If you were to do this method, your total savings would currently be $343.00.

Week #5: Financial Challenge

Week #5: Financial Challenge

Todayʻs Deposit: $5.00
Total Saved: $15.00

If you still havenʻt thought about what you are saving for, itʻs okay. Just keep saving!