Inflation (price increases) means your money will get you less tomorrow than it will today. This concept is important because it has an impact on salary increases as well as savings rates. Here is one example: Tell your child you are giving them a salary of $1 for the month and with that $1 they can buy a favorite…
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Teachable Moments Series: The True Cost of Debt
One may be tempted to buy on credit, but the next time you decide to buy something using a credit card go through this little exercise with your child. Suppose you buy a pair of pants for $40 using a credit card at a 19% annual interest rate, compounded daily. Compounded daily means you owe more and more on your…
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Teachable Moments Series: Budgeting Basics
Budgeting is not instinctive for most of us. The word itself can induce all kinds of emotions including nausea. Budgets restrict. Budgets prevent. It’s not in the budget. Do you like hearing those words? Contrary to many beliefs, however, budgeting is a great way to keep control of your finances and keep you on financial track. It can be liberating.…
