Episode #33 Family Financial Issues–Part I (Educating Your Kids and Saving Money)

Do your family finances challenge you?  Does your money seem to evaporate after each paycheck?  What about your role as a parent?  Have you tried educating your children about good stewardship of their money?  Join Rick and Brandon as they examine these challenges and give tips on sound financial planning.
 

1. Educate your children about finances
   1. Pay them an allowance for household duties and hold them accountable.
   2. You may want to discuss a matching dollar for dollar arrangement up to an amount that you can afford for their first car. Start this as early as they can understand in order to get them saving at a young age.
   3. Open a bank account for them
   4. Explain your financial decisions and hard choices and why you made certain decisions.
   5. Show them the whole story of your financial history and what you have learned, and what you have accomplished.
2. Informing your spouse about the family finances
   1. Show where all of the Wills and other important documents are
   2. Make a list of all life and disability insurance policies.
   3. Provide a place, usually with the Wills of log in sites, users and passwords for all bank accounts, investments accounts, and credit cards.
   4. Create a relationship with a local bank manager or employee that your spouse can turn to for help.
   5. Introduce your spouse to all important financial persons like insurance agent, certified financial planner, attorney, CPA, etc., if you have not done so.
3. Protecting yourself against financial fraud
   1. Are you shredding all financial information when not needed?
   2. Are you shredding unwanted credit card applications, bank statements, etc.?
4. Estate planning
   1. Find an attorney that specialize in estate planning
   2. Be prepared to answer the hard questions:
      1. Who are your beneficiaries?
      2. Who will be guardians over your children, if you have some?
      3. At what ages should your children get access to money?
      4. Who is the Trustee, and successor Trustee?
      5. Who has authority for your medical conditions if you are incapacitated
      6. Who has authority for your financial decisions if you are incapacitated?

5. Starting a business
   1. Decide your legal structure
   2. Decide your tax structure
   3. Possible fictitious business name
   4. Check to make sure there are no other state requirements like for professional organizations like licenses.
   5. Federal ID number
   6. Open a bank account
   7. State payroll number
   8. Sign up for a payroll service
   9. Obtain worker’s comp insurance
   10. Obtain general liability insurance
6. Saving money
   1. A certified financial planner can help you set up the tools
   2. feedthepig.org from the AICPA
      1. Turning financial goals requires three things:
         1. Money
         2. Debt management
         3. A rock solid plan
      2. Can be done at $5.00 to $10.00 at a time
   3. Start a nest-egg or emergency fund.
   4. Tax advantages
      1. Flexible spending account from your employer
   5. Paying off your mortgage
      1. Depression mentality: Pay off
      2. Post depression: Trade up; borrow against your house for other purchases
      3. Run these options by your financial planner and CPA.
   6. Starting a retirement
      1. Check out your employer-sponsored plan
      2. Self-employed- Various types of plans
      3. Neither: Start an IRA

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