Friday, September 27, 2013

Talking money with kids

Discuss your plans beyond initial retirement years 
There are financial decisions to make as you approach old age, from providing for your care to putting a power of attorney in place in case you are someday no longer able to make your own decisions. Let your kids know your plans so they can help ensure your needs are met and your interests are protected.

Continue financial discussions even when they reach adulthood
When an adult child first moves out, it can be a critical time for his or her finances. Make sure your children are handling things responsibly and not feeling overwhelmed. They may be reluctant to bring up problems themselves, but raising the topic of money casually may ease some of their hesitation.

Discuss financial basis with kids
Teach your high school age kids how to set up a budget and manage a checking account. Also talk to them about credit and the hazards of accumulating too much debt. Many kids this age are naturally cynical, so play to this by explaining how advertising is often geared toward getting people to buy first and ask questions later. 

Demonstrate smart buying
Show that you plan your purchases in advance and look for bargains, rather than buying on impulse. Witnessing that type of restraint may help your children control their own buying impulses.

Have your kids earn what they want:  teaches value 
While it's fine to treat your kids from time to time, don't get in the habit of reflexively buying whatever they ask for. Encourage your kids to set goals and agree on ways to earn what they want. This can help teach the fundamental of work, money and rewards.

Show that you take bills seriously
Even small children will pick up on how you view this responsibility. Discuss how paying bills provides a solid foundation for financial health. By using water and electricity conservatively will help minimize monthly utility cost and allow more money to "play with".

Don’t argue over money in front of the kids
You should avoid arguing in front of your children. Money is known to be one of the leading areas of tension in relationships. Instead, try to display the ways you and your spouse practice cooperation.
Lifetime gift
With tight budgets for working families and high expenses for senior care, not everyone is going to leave an inheritance to the kids. But there is one thing of value you can be sure to hand down: a good set of money skills. The federal Head Start program says that by age 5, kids have already started to observe money in action. It’s never too early to teach responsibility. 

Good health, 
Trisha M. Pacenti RN, BSN › Parents › Money

Friday, September 13, 2013

How will your family pay for your final expenses?

Accidents can happen at any given moment. Cancer diagnosis are on the rise. Illness and accidents can change your life in a split second. Are you financially prepared to meet the increasing costs of health care and funeral expenses? The importance of preparing will provide peace of mind knowing there is a plan in place. Life insurance will cover the unpredictable and high expenses associated with end of life issues.

The time to buy life insurance is now. Today you are healthiest you will be. You are buying a financial plan that will provide asset protection for your family. You are providing the finances needed to pay for final expenses generated by death. The world is nothing without free will. Everything must be carefully considered when financial stability is brought into question. It is whether you are willing to take those risks and use your individual situation to your own advantage.

We all have heard the tragic stories happening to people who experienced a sudden loss of a loved one and no life insurance was in force. The survivors are left with a major financial burden and many unanswered questions. Having a suitable plan in place will help your loved ones meet current financial obligations. Life insurance provides financial protection for them. You cannot be faulted for preparation.

It is important to do your research and decide which type of life insurance is suitable for you.  Each of us has our own situation that is different from our neighbors and friends. Only you know what goes on in your household. Keep in mind, what may be best for someone else does not necessarily mean that is the best thing for you. Which is why YOUR needs must considered when purchasing a policy.

So, why have life insurance? Just a couple reasons:

Reason 1

Do you have any bills, a mortgage? This alone is a pertinent reason to have life insurance. This major bill will be paid off and not left to your survivors to deal with.

Reason 2

Young, fit and healthy? Then this is the best time to get life insurance. Your premium will be affordable and if you take out a policy that allows you to keep the same premium until the age of 65, you will have considerable savings... the earlier you start, the better. And then if you develop any health issues throughout your life, it doesn't matter, because you already have the policy in force.

Reason 3

Are you married? Do you have a domestic partner? Should you parish and leave no money behind to help cover bills, you now just placed a heavy financial burden on your loved ones. Do you want to put them through added financial stress on top of the emotional turmoil caused by your death?

Reason 4.

Peace of mind. If you develop a terminal illness, your life insurance will pay out a lump sum upon confirmation from your treating physician. You will have the money to help get your affairs in order.

Having life insurance is a small piece of the pie to make sure you and the future of your family are fully protected.

Good health,
Trisha M. Pacenti RN,BSN