Category: Budget

Budget, Parachute Services, Uncategorized

Raising Financially Savvy Kids: A Guide for Parents

Raising Financially Savvy Kids: A Guide for Parents

In today’s complicated economic landscape, equipping your children with strong financial knowledge and skills is more crucial than ever. It’s not just about saving for college; it’s about building a foundation for financial well-being into the future. Here’s a practical guide for parents on how to raise financially responsible kids:  

Start Early, Keep it Simple:

  • Toddlers (2-5 years): Introduce basic concepts like “money buys things” and differentiate between coins and bills. Use real money during playtime to familiarize them with it.  
  • Early Elementary (6-10 years): Explain the concept of earning money through an allowance or doing small chores. Introduce the idea of saving for a desired toy or treat.
  • Preteens (11-13 years): Discuss budgeting, comparing prices, and the importance of delayed gratification. Open a savings account together and explain how interest works. Emphasize how SMALL savings can turn into BIG savings over time.   
  • Teenagers (14-18 years): Introduce more complex topics like credit cards, loans, and investing. Encourage them to get a part-time job and manage their own spending.  

Model Responsible Behavior:

  • Children learn by observing. Be mindful of your own spending habits.
  • Involve them in family budgeting discussions, explaining how you prioritize expenses.  
  • Demonstrate responsible credit card usage and discuss the dangers of debt.
  • Show them the value of comparison shopping and seeking out deals.

The Power of an Allowance:

  • An allowance can be a powerful tool for teaching money management.  
  • Consider tying it to chores to reinforce the connection between work and earning.
  • Encourage them to divide their allowance into spending, saving, and giving categories.
  • Avoid bailing them out when they overspend; let them learn from their mistakes.

Saving and Spending Smart:

  • Emphasize the importance of saving for future goals, whether it’s a new bike or college.
  • Teach them to distinguish between “wants” and “needs.”
  • Encourage them to research purchases and compare prices before buying.
  • Explain the concept of compound interest and how it can help their savings grow.

Open and Honest Conversations:

  • Create a safe space for your children to ask questions about money.
  • Talk about your own financial experiences, both successes and failures.
  • It is okay to say you don’t know an answer, and then research the answer together.
  • Tailor your discussions to their age and understanding.
  • Discuss the importance of charitable giving and helping others.

Practical Tools and Resources:

  • Find age-appropriate books and online resources to supplement your teachings.
  • Consider opening a joint savings or checking account with your teenager.
  • Explore budgeting apps and tools that can help them track their spending.
  • Many banks and credit unions offer educational programs for children and teens.  

Values and Money:

  • Money is a tool, and it is important to discuss how that tool can be used.  
  • Discuss how your family values align with how you spend and save your money.
  • Discuss how to avoid materialistic values.
  • Talk about not comparing to others materially especially in the neighborhood and through social media.
  • Discuss the importance of giving back to the community.

By consistently reinforcing these principles, you can help your children develop the financial skills and habits they need to achieve a secure and prosperous future.

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan:

Would you like to meet one-on-one with one of our Financial Counselors to talk specifically about your budget? Check out our Financial Coaching Session https://parachutecreditcounseling.org/services/credit-budget-counseling/#financial-coaching  or call 716-712-2060.

Budget, Credit, Debt, Parachute Services

Living a Financially Peaceful Life

Creating and living a financially peaceful life is a journey, not a destination, and it’s very personal. It’s about aligning your financial habits and mindset with your values and goals so that money supports your well-being rather than causing stress. Here are steps to find this peace:

Deepen Your Understanding and Acceptance:

  • Revisit Your Money Story: Take some time to reflect on how your upbringing and past experiences have shaped your current beliefs and behaviors around money. Understanding the roots of your financial habits can help you approach them with more compassion and less judgment.
  • Practice Self-Compassion: Be kind to yourself regarding past financial mistakes. Everyone makes them. Focus on learning and moving forward rather than dwelling on regret.
  • Define “Enough”: In our consumer-driven society, it’s easy to fall into the trap of always wanting more. Take time to define what “enough” means for you. What level of financial security and lifestyle allows you to feel content, fulfilled and help you sleep at night?

Solidify Your Financial Foundation:

  • Craft a Conscious Spending Plan (Budget): Move beyond simply tracking expenses to creating a plan that reflects your priorities. Allocate your money intentionally towards your values and goals. Consider using different budgeting methods (e.g., 50/30/20 rule, zero-based budgeting) to find what makes sense to you.
  • Build a Robust Emergency Fund: Aim for 3-6 months’ worth of essential living expenses in an easily accessible, liquid account. Knowing you have this safety net can significantly reduce financial anxiety.
  • Prioritize Debt Reduction: Develop a clear strategy to tackle any outstanding debt. Whether it’s the snowball (start with small debts) or avalanche (highest interest rates) method, consistency is key. Celebrate milestones along the way to stay motivated.
  • Automate Savings and Investments: Set up automatic transfers to your savings and investment accounts on payday. This “pay yourself first” approach ensures consistent progress towards your future goals without requiring constant conscious effort.
  • Protect Your Assets: Ensure you have adequate insurance coverage (health, home/renters, auto, life if applicable) to safeguard yourself and your assets from unexpected events that could derail your financial peace.

Cultivate a Peaceful Financial Mindset:

  • Practice Gratitude for What You Have: Regularly acknowledge and appreciate the financial resources you currently possess. We can always be grateful for something.   
  • Embrace Mindful Consumption: Before making a purchase, pause and ask yourself: “Do I truly need this? Will it genuinely add value to my life? Am I buying this for emotional reasons?”
  • Detach Your Emotions from Market Fluctuations: If you’re investing, understand that market ups and downs are normal. Avoid making impulsive decisions based on short-term market noise. Focus on your long-term investment strategy especially if years away from retirement.
  • Limit Exposure to Financial “Noise”: Be mindful of how much financial news and social media you consume. Constant exposure to others’ seemingly “perfect” financial lives or fear-mongering headlines can increase anxiety.
  • Focus on Progress, Not Perfection: There will be months where you overspend or face unexpected expenses. Don’t let these setbacks derail your overall progress. Learn from them and adjust your plan as needed.
  • Practice Generosity: Giving to others can foster a sense of connection and purpose, which can contribute to overall well-being and a more peaceful relationship with money.

Nurture Your Financial Well-being:

  • Regularly Review and Adjust Your Plan: Your financial goals and circumstances will likely change over time. Schedule regular check-ins (e.g., monthly, quarterly, annually) to review your progress and make necessary adjustments to your spending plan and goals.
  • Seek Knowledge and Education: Continuously learn about personal finance. The more you understand, the more confident and in control you’ll feel. There are ample free resources. 
  • Communicate Openly About Money: If you share finances with a partner or family, have open and honest conversations about your goals, values, and concerns. This fosters trust and collaboration.
  • Know When to Seek Professional Help: Don’t hesitate to consult a fee-only financial advisor, therapist or counselor (e.g., Parachute) if you’re struggling with financial stress, anxiety, or making sound financial decisions.

Creating a financially peaceful life is a process that involves practical steps and a shift in mindset. By focusing on clarity, control, and aligning your finances with your values, you can move towards a future where money supports your overall well-being.

Would you like to meet one-on-one with one of our Financial Counselors to talk specifically about your budget? Check out our Financial Coaching Session https://parachutecreditcounseling.org/services/credit-budget-counseling/#financial-coaching  or call 716-712-2060.

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan:

Budget, Debt

Unlock Summer Fun Without Emptying Your Wallet

Summer can be a time for fun, relaxation, and making memories. However, it can also be an expensive time of year with vacations, activities, and increased utility bills. By being mindful of your spending and implementing some smart strategies, you can enjoy all that summer has to offer without draining your bank account.

Budgeting and Planning

  • Create a Summer Budget: Before summer begins, take a good look at your finances and determine how much you can realistically allocate for summer-related expenses. Factor in any vacations, day trips, entertainment, potential higher utility costs, and any summer camps or activities for children. Just a little bit of planning can go a long way!  
  • Track Your Spending: Once you have a budget, keep track of where your money is going. This will help you identify areas where you might be overspending and allow you to make any adjustments as needed. You can use budgeting apps, spreadsheets, or even a simple notebook.
  • Plan Affordable Getaways: Summer vacations are a highlight of the year for many, but they don’t have to be extravagant. Consider budget-friendly destinations, explore staycation options in your local area, or travel during off-peak times to save on flights and accommodations. Look for deals on hotels and activities well in advance.
  • Take Advantage of Free Activities: Many communities offer free events during the summer, such as outdoor concerts, movie nights in the park, and festivals. Check your local listings for free entertainment options. Parks and recreation centers often have low-cost or free programs and activities.  
  • Pack Lunches and Snacks: When heading out for day trips or activities, pack your own food and drinks instead of buying them along the way. This can save a significant amount of money, especially for families.

Saving on Everyday Expenses

  • Save on Cooling Costs: Warmer temperatures often lead to higher energy bills. Use strategies like closing curtains and blinds during the day to block sunlight, using fans to circulate air, and adjusting your thermostat a few degrees higher. Consider using smart thermostats to optimize energy usage. Regularly maintain your AC unit by cleaning or replacing filters. Try to run the AC in off hours (early in the morning or at night) to take advantage of cooler temps.  
  • Cook at Home More Often: Dining out can add up very quickly! Take advantage of seasonal produce and cook more meals at home. Plan your meals in advance and make a grocery list (and stick to it!) to avoid impulse purchases. Consider grilling outdoors to avoid heating up your house.  
  • Look for Sales and Discounts: Keep an eye out for summer sales events, such as holiday weekend discounts and back-to-school promotions, for potential savings on various items. Many museums and attractions offer discounts for local residents or through daily deal sites.  
  • Reduce Transportation Costs: When possible, walk, bike, or carpool instead of driving alone. This can save on gas and reduce wear and tear on your vehicle. Check if local public transportation offers summer passes or discounts.
  • Utilize Free Entertainment Resources: Take advantage of your local library for free books, movies, and even events. Explore free streaming services or borrow DVDs instead of going to the movie theater.  If you do go to the movies, go to the matinee whenever possible. Ask for student and senior discounts.

Smart Spending Habits

  • Differentiate Needs vs. Wants: Before making a purchase, especially on non-essential items, ask yourself if it’s a need or a want. Prioritize essential spending and be mindful of impulse buys. Then, direct any savings to summer fun. 
  • Use Cash Instead of Credit: For discretionary spending, consider using cash. This can help you stay within your budget and make you more aware of how much you’re actually spending.
  • Automate Savings: Set up automatic transfers from your checking account to your savings account at the beginning of each summer paycheck. Even small amounts can add up over time without you having to actively think about it.  
  • Review Subscriptions and Memberships: Take a look at your recurring subscriptions and memberships (e.g., streaming services, gym memberships) and cancel any that you don’t use regularly.  
  • Consider a Spending Cleanse: Before summer begins, try a “no-spend” week or weekend to reset your spending habits and identify areas where you can cut back.
  • Involve the Family:  Give small jobs to each member of the family for shared summer goals. Have the kids look for and save change, host lemonade stands, help neighbors with errands or lawn work for some extra spending money. 

By implementing these summer savings tips, you can enjoy the season’s activities and maintain a healthy financial outlook. Remember that even small changes in your spending habits can lead to significant savings over time!

Would you like to meet one-on-one with one of our Financial Counselors to talk specifically about your budget? Check out our Financial Coaching Session https://parachutecreditcounseling.org/services/credit-budget-counseling/#financial-coaching  or call 716-712-2060.

Budget, Parachute Services

FREE June 24 Virtual Workshop – “Have a Blast on a Budget: Summer Savings Hacks”

Have a Blast on a Budget: Summer Savings Hacks   

NEW TIME!! Tuesday, June 24 from 6:00 p.m. – 6:30 p.m.

Don’t let rising temperatures lead to runaway spending! Discover smart ways to save on food, entertainment, and even your utility bills.

We’ll show you how to make small changes that add up to big savings. Unlock a summer that’s memorable and budget-friendly!

Spread the word! Share the attached flyer with your employees, friends, family, clients – anyone who could benefit from these valuable tips.

See you there!

P.S. Don’t miss out on this FREE opportunity to take charge of your finances!

All workshop attendees will be entered to win a free Parachute appointment!

Would you like to meet one-on-one with one of our Financial Counselors to talk specifically about your budget? Check out our Financial Coaching Session https://parachutecreditcounseling.org/services/credit-budget-counseling/#financial-coaching  or call 716-712-2060.

Budget, Parachute Services

Join us for a FREE Parachute virtual Zoom workshop:  Financial Fumbles: 10 Mistakes Sabotaging Your Savings

JOIN US! This workshop will review the top ways we often fumble with our savings. Learn the small behaviors (habits) that can add up to big returns and grow our savings in strong ways PLUS hear about current Bank-On efforts to make banking more accessible. 

Financial Fumbles: 10 Mistakes Sabotaging Your Savings  

NEW TIME!! Wednesday, May 14 from 5:30 p.m. – 6:00 p.m.

Register now! Spots are limited!

Register at: https://bit.ly/parachutefumbles

Spread the word! Please share with your employees, friends, family, clients – anyone who could benefit from these valuable tips.

See you there!

P.S. Don’t miss out on this FREE opportunity to take charge of your finances!

Budget, Parachute Services

Budget Strategies During Times of Inflation

During times of rising inflation, here are some budget strategies you can use to help stay financially sound. 

Track Your Expenses and Spending Habits:

  • Know How Much You are Spending and Where It is Going: Before you can make any helpful adjustments, you need a clear picture of your spending habits. Track your income and expenses for a month using a budgeting app, spreadsheet, or even pen and paper. Research budget apps at https://www.nerdwallet.com/article/finance/best-budget-apps. Be honest with yourself about what it is you truly need and what you want. Be real about this for maximum effect. Needs reflect those things we need to survive like food, clothing, medical care and shelter. It’s a matter of degree!  For example, we all need to eat, but we can choose prepared meals at home based off of a grocery list versus eating out at a restaurant several times a week. Wants can often wait for future paychecks. 

Cut Back on Variable Spending:

  • Identify Areas to Trim: Once you see where your money goes, pinpoint areas where you can cut back and eliminate those pesky budget leaks!  Think for a moment of leaking pipe under your sink.  After you place a bucket there for (even a small) leak, and come back 3 days later, you will find that bucket is nearly full of water and heavy. It’s the same impact on our budget with the dollars flowing out. Our leaks can include regularly dining out, hidden fees, entertainment subscriptions, impulse purchases or our small daily habits that add up quickly. It also is eye opening to run the numbers and see what we are actually spending.
  • Embrace Frugal Fun: Find free or low-cost alternatives for entertainment. Explore local parks, plays or shows at high schools or colleges, museums with free admission days, or board game nights with friends. As the weather gets warmer, there are often many outdoor, low cost events. 

Stretch Your Groceries:

  • Plan Your Meals: Plan meals around what’s on sale and utilize coupons. This reduces impulse purchases and food waste. This is an area where most people say they can greatly tighten their budget and boost savings to “pay themselves”. 
  • Consider Generic Brands: Store brand staples are often just as good as name brands at a fraction of the cost. Shop at discount grocery stores in your area such as Price Rite or Aldi. Even check out dollar stores for staple items.
  • Embrace Meatless Meals: Meat can be a significant expense. Try incorporating more vegetarian meals into your diet. Identify more high protein items like peanut butter, legumes, and tofu and eggs when reasonably priced. Stock up when these items are on sale.

Be Strategic with Debt:

  • Focus First on High-Interest Debt: Focus on paying down credit card debt first, as high interest rates can quickly increase the cost of borrowing. Start with those credit cards with the highest interest rates first. Know that you can contact your creditors if you are having trouble making minimum payments. They may be able to work with you to temporarily lower your interest or your payment amount to help you catch up. The sooner you address, the more you save.
  • Explore Balance Transfers: If you have good credit, consider a balance transfer card with a 0% introductory APR to temporarily reduce your interest charges. Be disciplined and use the new card for balance transfers only and pay it down before the introductory rate ends. This is critical!  

Boost Your Income (if possible):

  • Explore Side Hustles: Look for ways to generate extra income, like freelancing, online gigs, selling unused or unwanted items, making deliveries, etc. Check out https://www.bankrate.com/investing/passive-income-ideas. Also, if inflation is eroding your purchasing power, consider having a conversation with your employer about a raise or extra hours to keep your salary competitive. Use that extra money to pay off debt or build savings, even very small amounts of savings matter in the long run.

Additional Tips:

Shop Around for Better Deals: Compare prices on everything from groceries to insurance to ensure you’re getting the best value. This helps you avoid impulse buying if you prioritize your research

Review Subscriptions: Audit your monthly subscriptions and streaming services and cancel any you don’t use regularly even if you need to do this temporarily. 

Utilize Cash: Using cash for everyday purchases can help you stay more mindful of your spending. Multiple studies show that we spend less when using cash instead of a credit or debit card. When you do use cash, save all that change.   

Research Ways to Lower Utility Costs:

Adjust Your Thermostat: A programmable thermostat allows you to adjust temperatures when you’re away or sleeping. Lowering your thermostat in winter and raising it in summer can significantly reduce energy use.

Unplug Unused Electronics: Even electronics in standby mode draw a small amount of power. Unplug chargers and devices often not in use to eliminate “vampire energy drain.”

Wash Clothes Smarter: Wash clothes in cold water whenever possible and air-dry laundry when weather permits.

Shorten Showers: Every minute counts. Reducing shower time can significantly lower hot water usage and lower water heater temperature: Most water heaters are set too high. Adjust the thermostat to 120°F (49°C) to save energy without sacrificing comfort. Some folks actually set a timer!

Fix Leaks: A leaky faucet or dripping showerhead can waste a lot of water, energy and money. Repair leaky fixtures promptly.

Switch to LEDs: LED lightbulbs use significantly less energy than traditional incandescent bulbs and last much longer.

Embrace Natural Light: Open curtains and blinds during the day to maximize natural light and reduce reliance on electric light.

Consider Alternative Billing Options: Some utility companies offer time-of-day billing where rates fluctuate throughout the day. This can be advantageous if you can shift energy usage to off-peak hours for things like running a dish washer and washer/dryer.

By implementing these strategies, you can tighten your budget and make your money stretch further during times of high inflation.

If you’re dealing with high interest debt payments as well, see what you can save with Parachute’s Debt Management Plan https://parachutecreditcounseling.org/dmp-calculator/

Would you like to meet one-on-one with one of our Financial Counselors to talk specifically about your budget? Check out our Financial Coaching Session https://parachutecreditcounseling.org/services/credit-budget-counseling/#financial-coaching  or call 716-712-2060.