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6 Ways to Save and Invest Money for Kids

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6 Ways to Save and Invest Money for Kids

Heather Q. says:

I love the Money Girl podcast! I just opened a 12-month CD for my daughter and plan to give her the money when she’s an adult. But I have about eight more years to save for her. Should I open new CDs as I save more, or should I add money to the same CD once it matures?

Thanks for your question, Heather! I know your daughter will be thrilled to have a financial leg up as she launches and becomes independent. If you also have children or are thinking about starting a family, it’s essential to get familiar with strategies and accounts that make it a little easier to save and invest for your kids.

This post will answer Heather’s question by reviewing six savings options and the pros and cons for each one. Plus, I’ll discuss when to begin saving for a child’s future and how it should fit into your big financial picture.

When should you begin saving for kids?

Being a parent means you’ve got plenty of expenses and maybe ongoing financial stress. You want the best for your children, but you also need to make wise decisions for your own future. While the cost of college seems to rise faster than hot air, we’re living longer and may have less Social Security retirement income to count on in the future. That means you likely need a bigger nest egg than you think.

My point is that you should never forgo saving for your retirement to pay for a kid’s college or any other significant expenses. Instead, create a financial plan that includes your retirement and savings for kids as soon as you start a family.

The sooner you begin saving for short- and long-term goals, the less stress you’ll feel in your budget and emotionally. If you get a late start and can’t afford to pay for a child’s education, don’t feel guilty about it. Remember, putting retirement first is in your entire family’s best interest.

If you sacrifice your financial security for your kids, you may find yourself relying on them to support you in your old age!

If you sacrifice your financial security for your kids, you may find yourself relying on them to support you in your old age! While it might seem coldhearted for a parent to refuse to pay for a child’s education, don’t forget that kids have options, such as working, getting scholarships, and taking out federal student loans.

But there no loans or grants to support you after you stop working. If you’re less than 20 years from retirement and haven’t reached 80% of your savings goal, stay exclusively focused on building your retirement nest egg.

Again, shore up your financial well-being first, even if that means saving nothing or less than you’d like for your kids….

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Months after losing job, woman still waiting on VEC: ‘I deserve my money’

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RICHMOND, Va. — The Virginia Employment Commission is leaving hundreds, maybe thousands, of Virginians in the lurch by not processing their claims in a timely fashion.

Renita Hall knows this experience first-hand.

“I tried to call them to get in contact with them, that was in December,” Hall said. “It’s now April, and I have not received a bit of money and they take my claim every week.”

It’s a common problem heard over and over again. Virginians laid off during the pandemic apply for their unemployment benefits, and then wait. And wait.

“They got an answering machine thing that tells you that you can talk to a live person,” Hall said. “You’ll get on the line, and once you wait about 45 minutes to an hour, it cuts right off so you never talk to anyone.”

Hall was a full-time employee at a Walmart store in Ashland who was laid off at the end of last year.

Her application for benefits would seem to be straightforward: Anne Hatfield, Walmart’s Global Director of Communications, confirmed Hall’s job status. When Hatfield was asked via email, “Would you advise that I seek a response from VA’s Employment Commission as to what might be holding up her benefits?” replied, “Yes, since this is about VA, not Walmart.”

When that information was relied to VEC’s spokeswoman Joyce Fogg back on April 7, she did not respond.

The pattern of the VEC’s inaction has been noted by financial data website WalletHub, which says Virginia’s response time to employment claims is near the worst in the nation.

“Virginia unfortunately, has kept that same outdated system intact, and is now dealing with the same types of lag times [that they had early on],” said Jill Gonzalez, a senior analyst at WalletHub. “In fact, the lag times have been increased exponentially, because the number of people trying to file has also increased.”

That is why, four months and a day after her layoff and unemployment benefits application, Renita Hall is still waiting. Even with some of the legwork such as checking with her former employer already done.

“It’s been very stressful,” said Hall.” I can’t sleep because I try to get up early in the morning to be one of the first callers. I want my money, I deserve my money and I’ve been waiting. There’s no reason why they shouldn’t answer a person’s call or after you wait 45 minutes to talk to someone. It just cuts off, you talk to no one like they don’t even care.”

CBS 6 has asked repeatedly for a chance to sit down and talk with VEC Commissioner Ellen Marie Hess over the past several weeks.

And just like the hundreds of viewers who tell us they’ve not gotten any answers, we are still waiting for a response from Commissioner Hess’s office.

CBS 6 News is working for you. Click here to email a tip to the CBS 6 Problem Solvers. Be sure to leave us your name, phone number and detailed description of the problem. You can also leave a message by calling 804-254-3672.

Find unique, award-winning stories every day on CBS 6 News:

💰Mondays: CBS 6 Gives

📁Tuesdays: CBS 6 Problem Solvers Investigations

🏙️ Wednesdays: Our RVA

👔Wednesdays: Wayne’s World

🏅Thursdays: Beyond the Roster

🏅Thursdays: Beyond the Roster

✋Fridays: I Have a Story

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How to Spend and Invest Money in Ways That Contribute to Self Worth

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How to Spend and Invest Money in Ways That Contribute to Self Worth

We all tend to have one common goal in life, and that is to make enough money to live comfortably and support the ones we love. There is a lot of talk about making money, and how to get rich quick, and all other outlandish attitudes surrounding money-making, but where is all the conversation about spending money? As someone who started investing in myself earlier in life, one thing I learned is how to spend my money wisely and how to invest further in myself, my business, and in areas that contribute to something of importance.

I became successful in my business at a very young age. When I was 16, I read the book “Rich Dad Poor Dad” by Robert Kiyosaki, and it changed my life. The book allowed me to look into my financial future, and I realized that people put themselves into boxes and fail to believe that they can be the ones to break through barriers in life. For me, I asked myself one simple question that changed everything – “why shouldn’t it be me?” Three years later, I find myself with a successful 7-figure business and a good idea of how to spend and invest in myself and my business to set myself up for future financial success.

What’s taught to us as a society is that we need to make money. It is drilled into our heads that making money is extremely important in life, however, what people fail to talk about enough is how to make money work for you & spend that money properly and invest in yourself. Part of the secret to my success and what I’ve learned so far is that common expression “you have to spend money to make money.”

Education is the Best Investment You Can Make

Warren Buffett once said, “The best investment you can make is an investment in yourself.” Investing in your education is investing in yourself. Knowledge is power, and you have the ability to acquire knowledge through educating yourself. Whether it be through books, courses, schooling, online YouTube tutorials, or through news publications, acquire knowledge and never stop.

Everyone also has different skills. As Albert Einstein said, “Everybody is a genius, but if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid.” The modern-day school system is throwing kids off course. If you are someone who has a more creative brain, and you are forced into taking science curriculum that doesn’t make sense to you, how is this bettering you and setting you up for a successful future? The answer is that it’s not. Everyone has genius in them, but genius comes in many forms. Just because you underperform in school does not mean that you are not smart.

Investing in your education means taking your education into your own hands and building on the skills you already have or are interested in learning. I believe that education is the basis of how most of the problems in the world can be fixed. If you can be educated on only the topics that you genuinely care about instead of what the school system is telling you that you should care about, then you will have more confidence in yourself to aim for the stars in life. Never stop learning, and never stop investing in your version of education.

Invest Back into Your Business

You spend all your time and effort building a successful business, and now it is time to nurture it. Treat your business like you would treat yourself and invest in it. Building my business did not happen overnight and sustaining a business can be just as hard as getting started. When I saw that my business was taking off, I educated myself on how to best spend the money I was making, and the answer I kept seeing was that I needed to invest in my business.

The more you invest into your business, the better your business will run, and the higher likelihood that your business will sustain its profitability. If you have a team of employees who are working for you, and you are paying them fairly and offering them benefits and incentives, they will only work harder and be more satisfied and driven to push your business forward. Invest in your business, your employees and yourself, and your business will continue to thrive.

I became successful at a very young age because I was open to education, investing in myself, and investing in my future. I am open to all of the ways I can spend and invest my money wisely, and if you are open to it, you will become a successful spender as well.

This content was originally published here.

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Money

20 Frugal (Not Cheap) Hacks That Save Money and Time | The Simple Dollar

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20 Frugal (Not Cheap) Hacks That Save Money and Time | The Simple Dollar

The best frugal tips usually aren’t big, complicated practices, but little tweaks to ordinary things that you do that save a few cents or a dollar each time you do it. You keep doing the same thing you always did, just a bit more efficiently in terms of cost (and often time) just by being clever. They’re “invisible.”

Often, these very same tips save a little time, too. If you can change your way of doing something so that you spend a dime less and 15 seconds less without creating a lower quality result, that’s actually a big win, especially if you repeat it.

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Repetition is the secret ingredient here. If something saves you a dime each day, you’ve saved $36.50 over the course of a year. If you do 10 things like that, that’s $365. If those changes are effortless. … Why not do them?

What you’ll notice over time with these kinds of changes is that very gradually, it feels like more money stays in your checking account even though your daily life hasn’t really changed. That’s the real magic of little frugal hacks.

In this article

20 little frugal hacks

Estimated savings per day and per year are based on calculations from my own household, a family with two adults and three children in a 2,000 square-foot family home.

Financial Wellness

Go through this list, pick the ones that clearly and easily fit your life, and make them a reality. If you see one that might work for you, adopt it for 30 days and see how it fits. If it doesn’t work out, go back to the old strategy. Remember, if you adopt just five little changes, and each change saves you $0.25 a day, that’s approximately $500 a year in savings and you won’t even notice the difference.

We welcome your feedback on this article. Contact us at inquiries@thesimpledollar.com with comments or questions.

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