The Free Financial Advisor

You are here: Home / Archives for Joe Saul-Sehy

Joe is a former financial advisor and media representative for American Express and Ameriprise. He was the “Money Man” at Detroit television WXYZ-TV, appearing twice weekly. He’s also appeared in Bride, Best Life, and Child magazines, the Los Angeles Times, Chicago Sun-Times, Detroit News and Baltimore Sun newspapers and numerous other media outlets.  Joe holds B.A Degrees from The Citadel and Michigan State University. 

My Experience in Landlording 101, or I’m Not Donald Trump

by 7 Comments

I’ve been renovating my rental property this week and haven’t had enough time to pick a Blog Post of the Week! Instead, you get obscure ramblings from an over-caffeinated blogger….I’ll have a Blog Post of the Week! again next week for you. Have a great weekend!

I Never Wanted To Be A Landlord

When I was an advisor, I’d hear horror stories from my clients with tenants. Early on I learned that I probably didn’t have the stomach for some of the negotiation and strong-arming that it takes to work with tenants. I prefer REITs for my real estate exposure.

But, after my home didn’t sell when we moved to Texas, I realized that I had two choices: short sale or try my hand at tenants. I opted for choice #2. I wasn’t completely green. I’d read extensively about landlord/tenant contracts, strategies and tactics so I could be useful to clients. While “fun” might not be the right word, it’d be educational to try it first hand.

The surprise? I didn’t know how much I’d like it.

I’m no Donald Trump and am still too much of a pushover. I want to be a little more callous with my tenants because they realize they can get away with stuff (and do). An example: my tenant the last three years was late with her rent EVERY MONTH. The good news is that I wrote a $100 late fee into the contract, which she gladly paid EVERY MONTH. I got used to her checks two weeks late and came to enjoy the $1,200 extra income from her.

Lessons Learned From Landlording

Is landlording a word? Probably not (Pages doesn’t think so….), but I’m running with it. That’s the kind of rebel I am.

  1. Don’t rent a furnished place unless you’re okay with everything being ruined OR you write penalties into the contract. None of our furniture matched our new house (of course, that would be made too much sense….), so we left most of the furniture there. My tenant, a school teacher, was excited about getting a home with nice stuff. Imagine my surprise three years later when my sofa, living room chair and desk were all destroyed. She apologized a ton, but no cash exchanged hands.
  2. Bolster your reserves or keep credit handy for surprises. We had a water leak, tree fall down, bathroom fan breakdown and flooding in the basement. If I didn’t have a reserve, there would have been trouble.
  3. Either live close to your rental or find reliable help. There are many people who will collect rent, fix up the house or manage the property, but most aren’t very good (according to my clients who were in real estate). You need great help or have to do as much work as possible yourself. I live halfway across the country from my rental, but have a great handyman, Dave, who is a quick call away, charges reasonable fees and responds lightening fast. To make sure he’s happy, I pay him the SECOND his bill arrives (that’s overstatement, but you know what I mean).
  4. Try to complete each “fix it” project yourself at least once, even if you’re going to find help.
  5. Remember that it’s a relationship with your tenant. My main goal is to have my tenant stay in the house. I’ve tried to make sure the house is well-maintained and I’m accessible so my tenant stays around. That said, I also need to keep up with economics. I’ve looked at rental prices in the area and raised the rent once in the past three years. I was poised to raise it again before I found out she had to move out (through no fault of mine…her son wants her to stay in his house while he’s away on business for two years. I can’t beat “free rent.”)

Are you a landlord? Have you rented from a good or bad landlord? Share your success or horror stories in the comments!

Photos: For Rent: Charleston’s The Digitel

Enhanced by Zemanta

Running and Your Career

by 6 Comments

My friend Stacey ran the Boston Marathon a few weeks ago. It was inspirational at best, and depressing at worst. When a good friend accomplishes a big goal while I’m grabbing the next doughnut it can make me feel a little self pity.

For the uninitiated, the Boston Marathon is unlike most others: you have to qualify for the race to even be allowed to enter a lottery to run in the race.

So, to review:

a) be one of the fastest runners in the world; and

b) be lucky enough to get into the race.

I’m a runner. I’ve run five marathons and three half marathons in 400 days (two of the half marathons were the day before a marathon). Sometimes, like today, I’m staring out the window, thinking I should be slugging through another run, but I’m sitting at the keyboard instead. My friend Stacey ran Boston because she wouldn’t have made the same choice. She ran it because there was no doubt in her mind that it was the right thing to do.

Business is the same way. We’re a product of our choices. In my time working with executives it’s been interesting to see what’s successful and what fails. Often, the person wasn’t able to see the failure until it was pointed out to them. It took a coach or good friend, or sometimes a poor review to set them on the right path.

Here are similarities in my mind between running and your career:

1) Better preparation creates better race results.

I don’t like speed workouts. They don’t feel good. Because of that, I’m often left as the slow guy when the run heats up. It’s the same with business. Early in my career, I’d “wing it” because I was good on my feet. Only

2) Don’t get overly emotional.

Business is a marathon. When I run a 5k, I play pump up music on my iPod to bring me through the three miles. In business, that’s like getting all fired up about a single staff meeting. Sure, it’ll help in that meeting, but business is a marathon.

For longer races, I’ll intersperse mellow tunes to actually keep my adrenaline down. In business it’s easy to get on an emotional roller coaster. “Is the customer going to buy? Will they call me back? Is that supplier going to come through?” By keeping your emotions in check you’ll make better decisions instead of the in-the-moment expediting one.

 

3) Focus on your attack, not on the pain.

When a run gets down to the final miles, it’s painful. I’ve coached enough runners that succumbed to the pain to know: working through pain ain’t easy. Everyone wants to find a way to win, and to do so, you have to be able to control your mental state. Job one: constantly worry about your priorities and overall strategy. This keeps out the pain of the moment.

 

4) Remember Jens Voigt

I often think about cyclists when I’m in the middle of a long, boring workout. My favorite rider in the Tour de France is a guy that many casual fans haven’t heard of named Jens Voigt. The biggest group of riders (called the peleton) ride behind someone who works as a windbreaker. This person sets the tone and pace. The mental and physical exertion of a rider in the front far exceeds that of riders who follow.

Jans Voigt is 40 years old and is often found at the front. He doesn’t win races, he helps others win. Everyone wants Jens on his team because he can ride for long distances pulling the load.

Often in mind-numbing business situations I remember Jens Voigt. I have to pull through the boring parts successfully to get to the satisfying finish. It isn’t the final few steps that matter…it’s those little steps in between that create a championship race. I call those Jens Voigt moments.

I’m not the only one who likes Voigt. Here’s a Wall Street Journal article about why Jens Voigt is a role model for so many: Nobody Suffers Like Jens Voigt.

 

5) Nutrition is Your Key to Success

In Jim Loehr and Tony Schwartz’s book The Power of Full Engagement: Managing Energy, Not Time, is the Key to High Performance and Personal Renewal, they compare athletes to business people. In a race, you should stretch beforehand, manage your pace so you can finish, and continually feed your body water and nutrients to make it to the end of the marathon.

Why is it that we don’t do the same for business? Why do we think that we can eat a cheeseburger and mess of fries for lunch and perform in the afternoon? Why don’t we stretch out and get the blood pumping before big meetings? We take all of this research that athletes have learned over the years and dump it. Instead, bosses tell workers to sit longer and “get more done.” I’d suggest that those two ideas don’t work well together.

 

Photos: Women Running: Infomatique;

Enhanced by Zemanta

Homeowners Insurance: My Friend’s Best Friend

by 21 Comments

Here’s the best way to score a table at a busy restaurant. Walk up to a table of nice people and say, “Let’s talk about insurance!” Within seconds, the table is yours.

Nobody enjoys the topic, but I think we all recognize the need for homeowners insurance.

I was reminded why again last week.

I received a message that good friends of ours who lived around the corner from our house had their home burn down. They’d recently relocated to Colorado.

Those forest fire pictures you’ve been seeing in the news? Those are the flames that destroyed nearly everything our friends owned.

We don’t like to talk about insurance, but events like this are a good reminder that we should revisit the policy periodically to make sure we know what protection we own.

 

5 Important Homeowners Insurance Provisions

 

1) Replacement value coverage– Most homeowners policies are replacement value coverage, but it’s worth checking. If yours isn’t, you’ll receive the fair market value of each item you claim. That five year old computer? Probably not worth the $1,000 you spent on it anymore….

2) Valuables itemized and insured separately? Although policies will replace your belongings, high value jewelry, artwork and personal items should have a separate endorsement. Insurance industry friends tell me to check with your agent or company because competing insurers have different levels of personal endorsements.

3) Renters? Roommates? Here’s a sticky point. If you’re living in a home but don’t own it, you’ll need renters insurance for your personal items. Many people rent because they have a tight budget, but this is one important area to spend the money (and hopefully never have to use it).

4) Deductible. Remember that recommendation some crazy website made about funding a cash reserve emergency account? Partly, that’s so you can self-insure and tell the insurance company to take a hike! As your deductible grows, the amount you have to pay for insurance declines. That’s the good news. The bad news? You’ll owe a larger amount when you have a claim, so don’t raise your deductible until you’ve funded your emergency fund.

5) Inflation protection. Because thinking about your homeowners insurance is feared worse than a trip to the dentist, inflation protection increases the value of your coverage over time. This way, even if you forget, you’ll have protection that keeps up with rising costs.

While I can’t say that you’ll be the hit of the neighborhood by having a great homeowner’s policy, you will be able to relax a little after disaster strikes. I’m glad my friend’s family is okay. You can always replace a house.

Let’s keep the discussion going in the comments. Now that we’ve covered some important homeowners insurance provisions, how do you score a good deal buying it?

Photos: Fire Fighter: Roby Ferrari; Forest Fire: National Guard

Enhanced by Zemanta

Two Guys & Your Money Episode #1: Top 5 Moves to Make in a Volatile Market

by 4 Comments

Happy Monday!

I’d be a ton happier if we could get you the podcast.

The Good News: It’s done.

More Good News: We think you’re going to like the new product.

Still More Good News: The problems we’re having getting the podcast to you we’ve experienced before, so we know how to handle them.

The Bad News: We’re having “new podcast” issues at Libsyn, similar to those we had with The Worst of the Free Financial Advisor.

UPDATE (7:30 AM Eastern): Libsyn is now uploading the new show. You should have your hands on it shortly if you directly download!

UPDATE 2 (7:40 AM Eastern: and it’s up! Enjoy it here. On to iTunes)

Still More Bad News: iTunes hasn’t approved the show yet.

We’ll update you throughout the day as we clear each hurdle!

 

Show Notes

 

<Open> Welcome!

<> I love $6,000 shower curtains!

<> On the Blog: Teaching Kids About Money: High School

Games mentioned:

Acquire (Amazon Link & Boardgamegeek Link)

Powergrid (Amazon Link & Boardgamegeek Link)

<> Fractional Cents w/ PK from DQYDJ.net 

<> Giveaway! Our Facebook Page

Send emails to joe@thefreefinancialadvisor.com to win You’re Broke Because You Want To Be

<> Roundtable

Orbitz Issues:

when is DIY appropriate/not appropriate

<> Top 5 Moves to Make in a Volatile Market

<> Movies! Brave, Madagascar 3

 

5 Summer Activities to Create Money Savvy Kids: High School

by 29 Comments

Ah, we made it! It’s most rewarding yet the most challenging to work with high school students on money management.

While these activities are the most fun for parents, high school students are more difficult to engage than younger children.

If you don’t have high school age children yet, you may not know this, but your brains will disappear for about four or five years.

Looking for tips for younger children? Try:

5 Educational Summer Activities For Kids – Early Elementary

or

5 Summer Activities to Create Money Savvy Kids: Upper Elementary to Middle School

 

5 Great High School Activities

 

1) Family book club. Right now, my 17 year old kids and I are reading I Will Teach You To Be Rich by Ramit Sethi. If you haven’t read this book yet, by all means, start now. It contains powerful advice wrapped in easy-to-understand language.

Every day the kids read a chapter. Then, at dinner, we discuss that day’s reading. Sometimes these conversations devolve (“why does a stock go up or down?” “what’s a good Roth IRA investment?”), but I love it. Who doesn’t want to have relaxed conversations about money with a curious 17 year old?

Why I like it: I get to ensure my kids get to college with some clue about money before they arrive. Because I made sure the book was fun and easy to read, and because I don’t preach, we’re able to have great talks about money.

2) Engage kids in the Family Meeting. If you’ve read this blog before, you’ll know that I love the idea of a family meeting. Budgets within a family are more about good communication than about counting pennies. If everyone is on the same page spending each day will be more careful, and life is made up of these little crisp 24 hour periods.

Some people have a violent reaction to this advice. “Show my kid my bills and my savings? That’s none of their business.” You are correct, but lets challenge your assumptions: why is it taboo to talk about your financial situation with others, especially those as close as your teenager.

Boundaries must be drawn. You’ll have to explain what happens when the whole street learns about your finances. But in the bigger picture, if they help you pay the bills, evaluate savings and plan large purchases, you’ll hand them a lifetime of knowledge that they’ll appreciate down the road.

Why I like it: When we began talking frankly with our children about bills and savings, they began to see how tight every month is for the average family. Next year we were planning on going to France for their graduation. The reality of two children in college at once has set in and we’re downgrading the vacation plan to a rental house on Lake Michigan for seven days. No groans from the kids because they understand the math behind the decision.

 

3) Find a job. I’m not talking about grabbing the local Dairy Queen gig (if I had that summer job I’d weigh about 750 pounds!). I’m talkin’ about helping junior through the process of fighting for a summer internship at a resume-building position. If they’re interested in engineering, try to find opportunities with a large local company. If law or medicine, apply at  the hospital, a law firm, or the local doctor’s office.

There’s a ton that junior learns while creating a resume, dressing appropriately and speaking well. The training involved in competing for these positions is a good primer in adult life skills.

Why I like it: By working in a professional environment, high school kids get a first hand look at how business works. Studies have shown that people who work in “real jobs” before college are more likely to do well in the classroom because they know how their learning might apply in the real world.

4) Scholarship hunt. Finding money for college is a full time job. The internet is brimming with opportunities for money, but you have to know who to ask and what scholarships to pursue. Most high schoolers only scratch the surface when it comes to searching for scholarships.

Instead of one-offing each opportunity, we found quickly that many of the scholarship opportunities were similar. My kids could write a couple of basic essays and then modify them to fit each particular offer. Most needed references from teachers and community members. We didn’t just learn about scholarship, we learned about creating systems to efficiently attack more quickly.

Why I like it: By formulating essays and asking for letters of reference, kids learn about the importance of written and verbal communication. They also realize that “going it alone” isn’t usually a good idea. It makes sense to find some powerful friends to help you….AND my kids were surprised that most powerful people want to help.

5) Board games. I’m back with more board games to teach the family about money. This time the games are downright fun for adults. Games such as Acquire can teach simple mergers and acquisitions. Power Grid is a modern-day version of monopoly involving power companies. And, in this year when the politics of the nation are up for grabs, 1960: The Making of a President is a good primer on the campaign process while also serving as a fun way to learn some history.

Why I like it: Board games are a great way to spend time with your kids. Instead of arguing or fighting about curfews and money, you’ll enjoying each other’s company over a communal activity.

How do you teach high school kids about money? Let’s have some more ideas in the comments below!

 

Photo Credit: Reading: NannySnowflake; Internship: ChesCrowell

One More Week!

by 10 Comments

Hey, everyone, I’m finally done running around the country. We’ll be back with a real live post again tomorrow morning. See you then!

If you’re here looking for the Worst of the Free Financial Advisor Podcast, you might want to listen to last week’s episode. On that show we announced that we’re excited to announce our new show in SEVEN SHORT DAYS!

 

 

Why Should You Listen to Two Guys & Your Money?

 

Here are the 10 least lame ones:

10. Everybody’s doing it.

9. You love winning books on our weekly giveaway.

8. You’re a fan of laughing.

7. Every once in awhile you like to learn about money, but you don’t want it shoved down your throat.

6. Financial shows where people yell at guests turn you off.

5. You’re a fan of interviews with cool people.

4. You think PK from DQYDJ.net has a hot voice.

3. Since great bloggers weren’t available, we secured the next best thing for our roundtable: Len Penzo, Dr. Dean (Millionaire Nurse Blog), Carrie Smith from Careful Cents and of course, the handsome and talented Dominique Brown from Your Finances Simplified.

2. Did we say “everybody’s doing it” yet?

and the #1 reason you should listen to our new show:

1. We told Mom we’d be famous some day and need your help. Like…a ton, because we know nobody and hope you do.

 

So, for now, stretch out, grab your iPod and listen to the WFFA Podcast Episode #13…then go enter to win our giveaway. Your chances of winning? Fantastic.

In The Trenches: New Advisor Tales

by 18 Comments

I’ve been traveling across the country this week, so I haven’t read enough blogs to decide on a Blog Post of the Week! Instead, how about if Uncle Joe tells you a story about the good ol’ days….

I’ve had requests from people who read this blog for stories about how advisors are trained. I obviously can’t put a dot on “the one way” people are trained. Even within the organization I worked in, some were trained well and others poorly. Some came with great skills and others with none.

Here’s how my journey began:

I always imagined that anyone working in the financial planning business spent most of their day either in meetings with clients or in a room full of computers drawing up strategies or watching them unfold.

Yeah, that stuff happens.

In fairy tales.

Nope. Conditions in my office were so bad initially that I’ll tell everyone reading this not to follow my route. It was an ugly way to start a career.

 

How We Spent Our Days

 

My early clients would never want to hear that I didn’t have time to prepare adequately or follow up enough with their plans. We spent about 80 percent of our time making phone calls. By “we” I mean me and about 12 other brand new recruits who were trying to break into the business. We’d gather daily in a large conference room, pop a film like Rambo or Wall Street on a television and call as many people as possible.

 

Young Financial Planners

Why we wore suits is still beyond me. I could have been in sweatpants and felt more comfortable while I cold called hundreds of people a night.

 

Why didn’t we work on strategies more? The reason is simple: I couldn’t survive on three or four clients and the management machine knew it. Sure, I was ignoring my early clients, but I needed to still have a job in the future if those first clients ever expected to get decent help from me.

When people tell you that you should hire an advisor who’s been in the business 10 years, it’s for two reasons: first, they’ve been in the trenches and have probably seen damned near everything. Second, they don’t have to worry so much about marketing and actually DO spend time on client strategies.

When did we work on a client’s business? Maybe for about an hour each morning. They weren’t very well thought out. We had calls to make.

 

Our Marketing Strategy

 

The call strategy, no longer used by the company I was with, was called “A/B.” On call A we’d offer free literature about tax planning, retirement planning, or college planning, whichever the victim of my call thought might be most helpful.

How did we get names? We used phone books.

If someone took us up on our offer, we’d call back after sending them a generic brochure to see if they had questions about the literature and just exactly “why they requested it.”

Here’s a typical call. This happened about 24 Million times:

Me: So, why did you request the information, sir?

Them: I didn’t request the information, you called and asked if I wanted it. I said I don’t care.

Me: Well you must have thought tax planning was important at some point.

Them: Listen, I just declared bankruptcy. I don’t really care about taxes.

But, once in awhile, I’d hear this response:

Me: Why did you request the information.

Them: I’m not happy with my financial advisor and I was hoping your firm would do better.

Me: (pause. I’m pissing my pants. Somebody said something positive.)

Them: Hello? You still there?

Me: Uh…yeah. We’re really good advisors. (why did I say that? I’m such an idiot.)

Them: Can I  come in and meet with you?

Me: (I just want to do a dance right about now) Sure. When would you like to stop by?

Them: I’m sure you’re pretty busy. What times do you have open.

Me: Pick a time next week and I’ll be here waiting.

I was that desperate.

So was everyone else in the room. Most people washed out.

Why did I stay? How did I make it?

It was because of a woman we’ll call Renee.

 

Renee’s Story

 

I earned the nickname Gepetto because Renee, this older, gray haired Russian woman who sat next to me during the end of my first year, was a liar. She escaped to her car a few times every day to drink vodka, and come back glassy eyed and give every guy in the place back rubs. It was more than a little uncomfortable.

Worse? Wait til you hear what she’d say to clients on the phone.

Renee: What rate you get on CDs at you bank

(everyone in the room would stop talking because we knew there was a whopper on the way) She’d listen on the phone, unaware that we were all hovering around.

Renee: 4 percent? You get 4 percent? We give you 6 percent. Guaranteed. I guarantee you that when you come in, you get 6 percent here.

(I’m not making fun of her accent here…there was plenty about Renee that I could make fun of, but the way she spoke wasn’t one of them.)

I felt bad for her, so I didn’t want to hurt her feelings. But on the other end, being one of the senior people in the room (I had the second highest seniority in my office once I hit the one year mark), I had to help her learn that it wasn’t acceptable to just throw out a rate of return. Plus, we were planners, not brokers. Regardless, I didn’t know of ANY CD at the time that paid better than 4 percent. Anywhere.

So, to save her feelings, I started to call her Pinocchio. It was a way of hinting at the fact that she might not be entirely truthful.

So, the crazy people I worked with started calling me Gepetto.

By the time she was fired, this woman had eight clients. Eight people had sat across from this woman who CLEARLY lied and definitely was drunk a fair amount of the time and said “She’s the kind of help I need.”

So when people ask me how I succeeded and made it through the system without any really successful planners to emulate and only spotty product training, for the most part it was because of Renee. I knew if I worked hard enough, no matter how bad things got, that I was better than Renee and she had eight whole clients. If she can get eight, I should have 800.

It’ll work for you, too. I think in any field if you work hard and realize that life is about pressing on, you can find your opening and build a career.

How about you? Any horror stories about where you work/worked? Let’s hear about some in the comment section. I’d love to know how you got started in the trenches….

 

Photo: Businesspeople, Businessman: Victor1558

5 Summer Activities to Create Money Savvy Kids: Upper Elementary to Middle School

by 14 Comments

Looking for educational activities for younger kids? Check last week’s installment: 5 Educational Summer Activities for Kids – Early Elementary.

I mentioned before that I have a love/hate relationship with summer.

To keep my twins from just attacking the XBox every day, I designed a bunch of fun summer activities, many that taught important life lessons. Let’s tackle those games I used when they were from third grade till about 6th or 7th grade.

 

Steal These Ideas!

If you have kids between the ages of 9 and 14, and wonder how you’ll keep the family entertained all summer, here’s a well-used list of activities that I can personally endorse…because we did them all.

Next week we’ll move into the High School years.

 

Grocery List

 

1) Grocery Store – Good news parents: if you plan correctly, the grocery store game only gets better as kids get older. At this age we had a couple of games. First we planned the trip to the store. Not only did they help me find valuable coupons, but they also searched online for deals on items we knew we’d need. This wasn’t just educational, it actually saved me time and money. At the store, each child had a personal list of items to find. After a few weeks we knew the store like the back of our hand and could get in and out in no time. The best news? They were so excited about the cash register and whether we made the budget or not that the “can I have one of these?” moments went out the window.

Why I Like It: At 17 I feel like my kids are already becoming savvy shoppers. They hunt for deals and are willing to compare costs before making a purchase.

 

2) Open a Savings Account – I’ll admit that we were late to the game here. We should have started this at 10 years old but didn’t get there until much later. My mistake. By taking kids into the bank and getting them acquainted with how it works, my kids already enjoy the banking experience. We compared different savings account options (even though they only had money at the time for the basic savings).

We talked about the difference between savings and checking, and decided together to forego the ATM card. The bank was great about this. I think so few kids are interested that they really enjoyed the fact that my kids seemed interested. We took a bank tour and they spent time answering all of my twin’s questions.

Why I Like It: I would have liked it better if I’d done this task at 10 years old with them (earlier ages, in my opinion, have limited “educational” returns). My kids both realize now how valuable a bank account is and how dangerous an ATM card can be. I think they’re getting close to ready for college and accounts on their own. At the very least, they’ll feel comfortable with the bank when they go to open their own account.

Lemonade

3) Start a Business – Lemonade stand. Carnival. EBay products. Dog sitting. Baby sitting. Heck, even blogging. Opening a business can be a rewarding experience, but not if you just hand junior a bunch of stuff and tell her to go sell it. If she keeps all of the proceeds, I think you’ve done her a disservice. Instead, create an overall plan for the business. Talk about an advertising campaign. Look at the cost of goods. Help them buy the product (via a loan from you) and then talk about their mark up. When they make money, they have to return the money they borrowed from you before making money. We had many little businesses along the way, and ran them this way each time.

Why I Like It: You’re teaching so many skills with this activity I can’t even begin here. Marketing (persuasive writing), technology, math, economics, are only a few of the skills kids will pick up while trying to learn to sell a product.

 

4) Board Games – Last week I mentioned what a game geek I am. Board games can teach kids so many money skills. An older game, Payday, is one of my favorites for financial lessons. You get paid once a month, pay bills and try to take advantage of opportunities (deals) when they arise. Buy insurance to guard against health and auto issues. On that note, another bad game but great teacher of financial lessons is Life. Have children, go to school (or not), buy insurance (or not), move up the career ladder. Sure, the game is very luck dependent, but it’s fun to move around the board and see just how many kids you can fit in that car (until you have to feed them….).

By age 12 kids will be able to grasp games that are better simulations, such as Agricola, Power Grid and Puerto Rico.They may not teach a child a ton about money today, but they do give kids a leg up on analytical skills and grabbing opportunities.

Why I Like It: Playing board games is a great way to teach lessons while playing as a family. I ‘m glad my kids like to play games. We generally aren’t competitive and have a few laughs together that I think we’ll all remember forever. (IF you want to purchase games listed AND help support the blog, you can use the Amazon links above to make your purchase. Thanks!)

 

5) Hold a Stock Tracking Competition – Step one of owning stocks is gaining a basic understanding about how the stock market works. Don’t think you know how it works well and worried you won’t be able to teach them? Learn together! Make a list of companies you admire. Research whether they’re public or not (and have stock that you can track). Give yourself an imaginary sum of money and invest!

We’d have a summer-long competition. The winner’s prize? They picked what we were having for dinner one night and we bought ice cream to celebrate.

Why I Like It: To effectively teach anything you have to brush up on skills yourself. I found that because I was teaching my kids, I paid better attention to my own portfolio.

 

What are your favorite activities with older children? Did you start any businesses at that age? Share in the comments!

 

Photo: Grocery List: MStewartPhotography; Lemonade Stand: EvinDC

The Worst of the Free Financial Advisor, Episode #13: Top 5 Ways to Teach Young Children About Money

by 4 Comments

And we bid you farewell….

We explain in the show, but the WFFA podcast is going away. In two weeks we’ll be back with our new moniker (that’s a complicated way of saying “a new name”), art, music….but the same content you’ve grown to love. For more of an explanation, listen to the show! What are you waiting for? Press the button! You know you want to!

Never listened to a podcast before? Here’s the iTunes page all about podcasts and how to listen to them (they’re free and you’ll be addicted if you work out or have a commute!).

 

Show Notes

<Open> Show changing!

<3:16> Funny Money article – Comedian teaching kids about money

<10:46> Banking app flaws article….some scary stuff.

<15:55> Fractional Cents, starring PK from DQYDJ.Net: Pay Down Debt or Invest?

<24:06> Giveaway time! We announce the winner of the Julie Clow book, Work Revolution, Freedom and Excellence for All and announce the new giveaway and how to win Larry Wingett’s You’re Broke Because You Want To Be

<30:52> Roundtable: Estate Planning – What do you need & Is It Okay to Give Wishes From Beyond the Grave?

Thanks to Greg from Control Your Cash (seriously, one of our favorite websites…check out A Message To Graduates Everywhere) for joining the team this week!

Our weekly team of contributors:

Len Penzo from Len Penzo dot Com: 100 Words on Why You Should Never Buy a Timeshare

Carrie Smith from CarefulCents: 5 Reasons to Take a Break and Get Away This Weekend

Dr. Dean Burke from The Millionaire Nurse Blog: Dementia and Your Money

<1.06:55> Top 5 Ways to Teach Young Children About Money

<> End of Show

5 Educational Summer Activities For Kids – Early Elementary

by 16 Comments

I have a love/hate relationship with summer.

Without any direction, my kids have one thought: XBox. It takes a ton of energy to continually point them to worthwhile summer activities when they aren’t at work or sports practices (even when I take away the XBox).

I love spending time with my children during the summer,

…but my professional goals get chucked out the window when they’re home.

I avoid frustration by realizing that my kids won’t be here forever. This helps me realize again that I want to spend every minute possible doing summer activities with them. They’re already past the “dad’s cool” age (I’m not sure we spent much time in that stage….sigh), so I’ve decided that educational fun is best. Why not have a good time and learn something at the same time?

I can’t believe that in 14 months I’m going to lose them to college.  After that, who knows where the wind will take them?

 

My Experience Is Your Gain

 

If you have kids under age 10 and wonder how you’ll keep the family entertained all summer, here’s a well-used list of educational activities that I can personally endorse…because we did them all.

This week we’ll tackle Early Elementary years (I’ve blocked out everything before that). Next week we’ll hurdle Late Elementary, then we’ll move into the Middle and High School years.  I’ve noted whether each educational activity is an indoor game or outdoor game to help you find what you’re looking for.

Comparison Shopping

 

1) Grocery Store – (indoor games) I can’t keep up the “keep your hands off that”, “no, we can’t get it,” “Put that back!” game for very long. You can call this game “self preservation.”

First, clip coupons. Give them the scissors to cut out the ones that you want. Have them help you organize them in a box. Then, make the list together.

At the store, make it a scavenger hunt. As you approach aisles with coupon items, tell them that you’re getting close to treasure. It’s not only one of our favorite educational summer activities, but a good one for all year round.

Why I Like It: A trip that can be a drudge becomes fun for the kids and bearable for you. Plus, I actually begin seriously looking for grocery deals that might become more “treasure.”

 

2) Count Change – (indoor games) Each day we’d come home and empty pockets into a jar in front of the piggy bank sitting on top of a piece of paper. Here’s what we’d do then:

  • First, talk about the different denominations. It’s a mystery to a 5 year old why a dime is worth double the value of a nickel when it’s half as small. Mind bender.
  • Second, track the years of the coins. For fun one day we started looking at the years on the coins. With newer quarters we started collecting states.
  • Finally, we’d track the amount of money that went into the piggy bank on paper. Initially they’d watch me do the math. Later, as they improved, they’d do some or all of the math.

Why I Like It: Besides being a coin geek, my kids realized that change is valuable and they learned some simple math skills. They’re still great at math!

 

Film School

 

3) Insurance Video – (indoor games) Your homeowners’ insurance policy (hopefully) allows you replacement value of all the items inside (with the exception of high-dollar assets, which should be separately insured). The problem? You have to remember what you owned.

So, I pretended we were making a movie. We dressed in costumes (by we, I mean “they”…I’m a geeky dad, but the costume thing is beyond me). We created some silly plot line where they had to open drawers as I peered inside. That took almost three days to make and we had a blast.

Why I Like It: You’re completing a task hardly anyone accomplishes and entertaining the kids at the same time. You’re a ninja.

 

4) Board Games – (indoor games) You may not know what a game geek I am. I started playing board games in 8th grade when my family got rid of the television (my grades went through the roof AND we had family game nights all the time…and still do).

Monopoly Jr. is an awesome game to teach young kids about money. My kids had their breakthrough (finally understanding the difference between a bill with a $1 on it and another with a $5 on it) while making change in this game. Different than Monopoly (which I can’t stand), the game is short and has a theme more fitting young kids: you’re buying rides at an amusement park.

Why I Like It: The game is widely available AND fun for everyone involved…even dad. (IF you want to purchase the game AND help support the blog, you can use this Amazon link to make your purchase. Thanks!)

 

5) Charity Drive – (Indoor games / Outdoor games)What’s more fun than cleaning the garage? Cleaning the garage with your kids and giving stuff to charity. This one is last because it’s a little like herding goldfish….but we got it done. Load up unwanted items and head to your favorite charitable institution.

Once I explained what we were doing, my kids decided to donate some toys they didn’t use anymore.

Why I Like It: It’s important for me to teach my kids that we live in a community and not everyone is as fortunate as our family. I also appreciate the tax deduction!

 

What are your favorite summer activities with children? Or do you remember a favorite from when you were a child? Share in the comments!

 

Photo Credits: Grocery: epSos.de @ Flickr; Man and Camera: puukibeach @ Flickr)

Enhanced by Zemanta