A Financial Education Event
 

The Millennial Boomerang

BGadmin

“My kids will never come back to live with us after they are launched.”

“I don’t have worry about boomerang children, mine have great jobs.”

“Junior would never get into trouble and need me to bail him out, he’s a good boy.”

Have you ever made a declarative statement that you had to take back and eat, along with a big, fat slice of humble pie?  I have. In fact, I’ve eaten so many humble pies that I’ve put on five pounds just thinking about it! That’s why I’m approaching today’s blog very circumspectly.

“Failure to Launch” was not only a popular Matthew McConaughey movie (would someone puleeze give that man a shirt!). It’s also a syndrome in America among Boomer and Gen X parents and their Millennial babies. There are many reasons for this boomerang barrage. One primary factor has to do with the unemployment rate among 20 to 24 year olds, which was 15.4% last year according to the Bureau of Labor Statistics.

Furthermore, statistics from the Pew Research Center indicated that 13% of American parents with an adult child had a child move back into the family home. While 40% of recent college graduates still live at home.

Money matters are the number one reason why these kiddies come back home to mommy and daddy as well as the struggling economy, student loan debt, consumer debt and in some cases legal troubles. Another primary reason is that some parents just enjoy having their kids at home and don’t really see the need for them to move on and move out.

There is good news and bad news for families in this situation. A boomerang incidence is detrimental when the children have an entitlement mentality, don’t carry their own weight in the home, are not looking for work, and cause their parents to delay retirement to get them financially settled. No one wins in that situation.

The good news of the situation exists when this living arrangement is only temporary and involves a solid exit plan. In fact, it can be a great bonding time between generations, especially if there are grandchildren involved.

But one thing is certain:  boomerang babies introduce more stress into the household. If the old adage is true that “company and fish are alike, after three days they both begin to stink” then having adult children home for an months on end has the ability to raise your blood
pressure significantly.

But what to do? What to do?

Here is the Ellie Kay motto for a situation like this, just tell your adult children:  “My love for you is unconditional, by my money is not.”  Your “money” in this case includes your home, furnishings, food, car, cash, retirement fund, home equity, phones, insurance, and anything else in your monthly budget that is impacted by new peeps living with you!

Here are some guidelines to follow if you find yourself in this situation:

  • DTR – “Define The Relationship” by discussing the living arrangement and defining the expectations on both sides. Come to an agreement as to what is expected of one another and delineate the boundaries.
  • Develop An Exit Strategy First – A solid exit strategy will have them back on their own between 3 and 6 months. If they know when they will be expected say “sayonara”, then that gives them a deadline to work toward in becoming financially independent again. It also helps to eliminate resentment when the time doth draw nigh.
  • Do What – Do What? – This is your new song, in that you are going to ask that son or daughter to do their portion for the household, whether it is doing chores and paying rent, or contributing by buying groceries and paying the light bill. The more uncomfortable it becomes in the parent’s nest, the more motivation that birdie has to re-launch.
  • Define the Rules – Part of the exit strategy will include the establishment of a budget for the adult child. I like the mint app because multiple people can track the spending at the same time. If they are living in your home, then you have the right to oversee a budget that will help them live on their own again. The idea of this may seem to restrict their freedom but it’s all part of the diabolical plan to kick them back out of the nest again.
  • Do have them pay Rent – Once they are employed, then begin to increase the rent over the course of the next months until they are paying the same rent to you that they would be paying for a place of their own. If you want an idea of what rent is in your neighborhood, go to Rentometer to find out a fair rate. YES, it’s probably more than what your lovely room and board is worth—BUT THAT IS THE POINT! You want them to see how it’s not worth it to live with mumsey; it’s a better value elsewhere.
  • Do Unto Others –– If you want to be kind (and sneaky in a good way), then you can take half the rent they give you and put it in an account that you can then relinquish to them. This will help them pay the first and last month’s rent on a place of their own. But you don’t “owe” them this act of kindness, your money, after all, is conditional while your love is unconditional and don’t fall into the trap by defining your love with how much you pay their way.
  • Do Give Them Wisdom – In some cases, the best assistance you can give them (besides the establishment of a budget) is to get them to a financial counselor such as nfcc.org that will help them for free. The National Foundation for Credit Counseling can renegotiate loans, restructure debt and provide accountability outside of your direct influence. There’s nothing like a third party to be the bad guy when it comes to letting them know the real deal in the real world.
  • Don’t Bail them Out! – Just remember the idea of precedence: what you do once, you will have to do again for the same child or for another one of your children. Keep in mind your needs such as retirement, paying your bills, your credit scores and your financial future. We owe our children food, shelter and clothing for 18 years. We owe them unconditional love for a lifetime. But we don’t owe them a bailout when they overextend themselves or fail to plan responsibly.  

 

And Baby Makes Three – Ways to Save Bucks on Babies

BGadmin

 

“Mama, can you ask Miss Natalya if I can hold the baby?” my 6’ 4” son asked with hopeful expectation.

Moments later, he was holding the pretty little three-month-old baby girl and smiling proudly, “now take my picture.”

Ever since he was a teenager, he absolutely loved babies. Holding them. Having his picture made with them. Then giving them back when they made the tell-tale popping sounds that let him know the infant was filling up her diaper.

Father and son

Fast forward ten years. Past his years as a midshipman at Annapolis, past his years as a graduate student at Stanford, past combat tours in Afghanistan and Iraq. Fast forward to the present. Now, this Marine is holding his newborn son, Robert Philip Kay, III.

 

“Why are you picking up the baby when he’s sleeping?” I watch my son cuddle his 4-day-old son, the infant’s tiny features pronounced next to his big father’s duplicate profile.

 

“Because I’m the dad and I can hold him whenever I want.” He holds him. He has his picture made with him. And when the tell-tale popping noises indicate little Robbie is filling his diaper, he’s suddenly changed. He goes from a boy who has never changed a diaper to a man who changes every single one his tiny son fills (and his namesake filled six of those bad boys in only 24 hours.)

I’m proud of my man child who grew up so quickly, met a beautiful mermaid, married her before she got away and made me a “Glam-ma” to a tiny human who has my Hispanic hair, my husband’s name, his mother’s nose and his father’s legacy.

My daughter in law is a precious asset to the Kay family and not surprisingly, she’s great with money. Here are eight new mom tips that come from her recent experience and my background as a mom of many.

8 Ways to Save Bucks on Babies

  • Amazon Baby Registry – Whether you have three baby showers or none, it’s smart to have a list of items you can use for baby. Even if friends and family don’t buy off the list, they can still mark it as “purchased” to minimize duplicates. Once everyone buys what they want, the new parents are entitled to a 10% off one order (wither 60 days before and up to 180 days after the baby’s arrival) and 15% off if you are an Amazon Prime Member. My DIL used this discount to buy eligible items off her registry that had not yet been purchased and she used Amazon gift cards, to further minimize their OOP expenses. Plus, she had $1000 worth of gifts purchased by friends and family, which scored her $100 worth of free diapers and wipes.
  • Return Duplicates Promptly – Get a store credit or exchange items for something else you can use right away. If you wait until after the baby arrives, you may not have the chance to get around to returning the items in a timely manner and you’ll lose out.
  • Don’t Open Those Diapers! – My first son, Daniel, weighed 11 pounds and was 24” long. He never wore newborn diapers. My last son, Joshua, was 10.5 pounds. He never wore newborn diapers. Even if you don’t give birth to a sumo wrestler, you still need to be careful on your timing in opening new bags/boxes of diapers. Once you open them, they can’t be returned for a larger size. This is especially true when you open a 180 count box from Exchanging a brand name diaper is easy at Walmart or Target, where you don’t need a receipt to get a larger size package. But not if they’re opened.
  • Calling All Freebies – I went out to Annapolis to nest before the baby arrived and it seemed like every day, my DIL was getting freebies delivered to her door—especially baby formula. She also got free toiletries, diapers, books and more from the hospital. Manufacturers of baby products and hospital auxiliary groups provide freebies for new moms. Look inside the baby bassinet cabinet in the hospital and you’ll probably find diapers, swaddling blankets, alcohol swabs, a nasal aspirator, disposable nipples for bottles, a thermometer, and more. These are valued at $30 to $40 and you can always use them.
  • Nurse if Possible – Not only will your baby get colostrum, that helps to fight infections and illnesses, but you’ll get valuable bonding time with your little one. It’s been estimated that nursing moms save $1400 in the first year over those who use formula. My DIL got reimbursed for a pump through Tri Care and other insurance plans cover the cost of a pump as well. Don’t take the one from the hospital because those (usually) aren’t free and nothing can ruin a peaceful day at home with your newborn than the breast pump Po Po at your door, asking why you stole an $800 breast pump.Don’t give away your sample formula either, 85% of nursing moms stop by the time their babies are 6 months old.
  • Free Advice – Many hospitals have a lactation expert who makes the rounds and helps new moms learn how to nurse a baby. When Anne, the lactation consultant came by to see my DIL, I learned a few things as well. Even after nursing 5 babies, I didn’t know that “infants are nocturnal beings.” Um, yeah. I should have figured that out. This service is free and can cost $200 if you pay a lactation advisor. Ask about free hotlines and even volunteer services that may pay for a home visit. Plus, check your insurance provider’s coverages as well.One of the nurses, Leslie, was helping my DIL and when she realized I had raised 5 infants, she pointed at me and said to my son and DIL, “You are blessed to have her in your life. She’s one of the greatest resources of knowledge you have at your disposal.” I loved Leslie, she was my favorite.
  • Double Duty Accessories – When you’re filling out a wish list, try to get items that have more than one function. Like a Graco pack n play that also has a changing table built in as well as a bassinet. We got my oldest son a crib that converted into a toddler bed for his son, Liam, and we bought the conversion kit when we bought the crib. These styles are new every 9 months and if you wait to buy the conversion kit when you need it (2 years or so), then it may no longer be available.
  • You Have Not Because You Ask Not – Be sure you ask the OB/GYN and the pediatrician for product samples. Not only will you discover whether you like the product before you purchase a full size, you may only need a little of it to get you through the crisis (we will not talk about nipple cream now.) Sign up for baby food company newsletters and coupon offers. Go to Gerber, Beechnut, Earthsbest, and Stonyfield to get these offers.

Three generations of Robert Philip Kay

Congratulations on your new baby. Whether you are the parent, grandparents, auntie, uncle or just a favorite friend—this is an exciting time for your entire family.

My husband and I are and thankful for our children and now our children’s children. We are often asked how we raised so many successful children, with success being measured as kids who are living their purpose and making the world a better place.

We usually answer this question with, “We tried to think of what was best for the child. I didn’t think about what I wanted to do, I thought about what was going to be the best option for my child.”

Gotta go check instastories for the latest baby video—until next time!

Saving Every Day, the Kay Way

BGadmin

This week, I got a phone call from Jonathan, my fighter pilot son, sharing his latest bargain. He may have gotten his flying abilities from the World’s Greatest Fighter pilot, but he learned how to save from another family member, who will remain nameless. He talked about how he scored a new bedding set at Bed, Bath and Beyond by layering the savings. As he shared, his excitement gained momentum,

“Yeah, so the regular price for the bed set was $245, it was on clearance for $109, then the clearance was marked down another 50% for one day only, so it was $55. Then I used my 20% off coupon (found at Retail Me Not) and saved $21 more.” He came up for air, with the coup de gras,

“I only paid $34 for a bedding set valued at $245.”

He is my favorite son. *

After I complimented his money savings prowess, I excitedly told him about my recent discovery from our local County of Los Angeles Public Library in Quartz Hills. I found out that instead of paying $14.95 for Audible, (which is a good deal if you listen to a lot of audible books) you can get them for free at the library online. It was so easy. You just download the Overdrive app for free, register your library card and voila! I’ve already downloaded Dr. Who, The Underwater Menace and Jodi Picolt’s Small Great Things. Since it’s a digital download, I can listen to iton my phone in the car or on a plane–all for FREE. When I’m done, it’s automatically returned on the system.

Truth be told, I taught my kids from an early age how to save money. It’s in their DNA and it’s served them well as millennials in the cold, sometimes cruel world of adulting. The good news is that these skills can be learned, even if you weren’t taught from the womb how to get the best bargain.

For example, my daughter’s friend, Kristen, went to Downtown Disney with my daughter and I recently and we educated her at the Rainforest Cafe in a major way.

The first perk we received was when we called ahead to make a reservation (at 4:00 PM) and were told there were no reservations left until 9:00 PM. To which I replied,

“But I’m a Landry’s Select Club member.” I heard a quick intake of breath on the other side of the phone.

“Oh well, that’s different. Just come to the front of the line when you get here and they’ll be a 15-minute wait max for you.”

Sweet dreams are made of this.

We were happily seated upstairs at a table overlooking the two-story Atlas fountain and right in front of our own personal monkey. While we perused our menus, I explained how the Landry Select Club works.

“You only pay $25 to get the card and you earn a $25 credit for every $250 you spend at hundreds of participating restaurants, casinos and hotels across the county. It’s not a credit card, it’s just like a membership card. Restaurants like Bubba Gump, the Chart House, Saltgrass & McCormick and Schmick’s.”  I paused for a quick breath and continued,

“Plus, you get $25 credit your birthday month. There’s no renewal fees and you always get priority seating.” About that time, the Manager came over and asked us how it was going (another perk of being a member.) As soon as the manager left, my daughter added,

“Also, as soon as you register your new card online, you automatically get a $25 credit. So it pays for itself right away.”

Just then the storm began with a loud clap of thunder. The elephants at the end of the aisle started snorting loudly and our monkey friend kind of freaked out at the weather.

It was the end of our educational session. But not the end of our passion about saving money every day–the Kay way!

What are some of your day to day savings discoveries? Let me know!

 

*To be  clear all of Ellie Kay’s kids are her favorites.  She’s not a horrible mom who loves one child more than another. (Except when they buy her gifts for no reason, then they really are her favorite because gift giving is her love language, which really is a thing.)

Back to College – The Kay Way – part one

BGadmin

Back To College

When Bethany was four years old, she came running in the house sobbing uncontrollably. I smoothed her blond curls and held her, “What’s wrong, Bunny?”
“I don’t want to leave you and go to college!” Her chubby arms held my neck tight.
“Um, well, Bunny, you don’t have to go to college any time soon!” I soothed, while rubbing her back.
She sat up straight, “I don’t?”
Wiping away her tears, she sniffed, “Good! Can I go back to Julie’s house and play again?”
I figured out later that all the drama was because Julie’s older brother was leaving for college and her friend’s family was sad to say goodbye. She thought she was going to have to leave us and it made her sad.
Fast forward the better part of two decades and she’s now a rising senior at Moody in Chicago, majoring in media communications. She’s not crying when she goes back to school, although we miss her. The good news is that she, along with all our other kids, are graduating debt-free! We don’t have any student loans and we didn’t have to refinance our house. Here are a few quick tips to pay for college. For more info, email assistant@elliekay.com and ask for the “College Crunch File.”

1. Make the Right Choice – Choose a school not because it’s the best, but because it’s the best value. Change the conversation from “I’ll go to the best college that I can get into” to “I will go to the school where I can get the best education possible for the least amount of student loan debt.” Our son, Daniel, chose the University of Texas (Arlington) over the scholarship he got to Syracuse and TCU because he would still have 60K in student loan debt after the scholarships ran out. He graduated with honors and a degree in journalism. He’s a working writer in Texas and doesn’t regret his college choice. In fact, when his department downsized and he needed to find another job, many in his section were overwhelmed because of their student loan debt. But his lack of college debt allowed him the freedom to find a job he really enjoys and he didn’t have to take the first job that came along.

2. Save Big on Books by Renting – The average student pays more than $600 for course materials – the largest expense after tuition and room and board.  You may want to look at renting textbooks through Follett’s Rent-A-Text program, students can cut costs by 50 percent or more. Or go to amazon to find used textbooks, making sure that you have an amazon prime account and can filter the options with the prime filter to get free shipping.

3. Make Scholarships a Part-Time Job – Millions of dollars of scholarship money go unclaimed every year. This is free money that parents or prospective students who are willing to do some detective work may find more quickly than they think. Have your student go to College Board or Fast Web  to find scholarships that might be a fit for your student.

4. Create a Budget, and Stick to It – As a parent of a college student, your love for your student is unconditional, but your money is conditional. That’s what we’ve always told our kids. To ensure students are making the most of their money, set a budget for spending and manage it by downloading Mint to help track spending. And determine which on-campus retailers accept financial aid to be certain you’re making the most of your college dollars.

Join us next week for part two of our Back To College series and let me hear your tips and idea to make college more affordable!

Ellie Kay
America’s Family Financial Expert

Do You Believe in Good Credit?

BGadmin

I love a good hero.

When I was a little girl, I saw “Peter Pan.” I fell in love with Tinkerbell for all her spunk and fairy dust, she became my hero. I believed in fairies. I was convinced that if I wished hard enough and focused on happy thoughts, I could fly like Peter and Tink!

My BFF, Nanette Woffard, and I made fairy wings out of panty hose, wire hangers and glitter. We began to exercise our belief by jumping off her circular second story stairway, climbing a step higher each time. We were (five-year-old) girls interrupted when, about step number 8, her mom walked through the room with a load of laundry and discovered our exploits.

Mrs. Woffard encouraged our creativity, but grounded us from flight school. We wallowed our disppointment in homemade chocolate chip cookies and milk.

But I never forgot about my hero and how she could fly.

As a young adult, I met a hero who could fly—for reals (that’s millennial-speak for really and truly).

He flew jets and his wings were hard earned through Air Force pilot training.

We’ve had a fairy tale life so far and raised a passel of Kay kids who also learned to dream, believe and soar to greater opportunities than they thought possible. One of those kids even earned his own set of pilot wings last month. Flying, in life and in dreams, is something we’ve always encouraged.

But there’s nothing that will bring a dream crashing down faster than financial difficulties. That’s why we taught our millennial children how to manage credit and earn great credit scores.

When each of the Kay kids graduates from college, they have a good-to-excellent credit score at the age of only 22. It can be done, but the first step is to understand how credit and credit scores work.

Credit scores impact interest rates, insurance premiums, security deposits, employment and even security clearances. In our Heroes at Home Financial Events, we have various segments. I teach on spend plans and car buying. USAA sends JJ Montanero to speak on saving and investing. But we also have an entire segment on how to develop and maintain good credit in order to keep their security clearances so they can do their jobs.

Gerri Detweiller has been writing in the consumer credit space for years and as one of our speakers, she can attest that credit and debt are themes that bleed into all financial areas. A lot of what I’ve recently learned comes from Rod Griffen a financial educator from Experian, who teaches me the latest nuances in this sometimes complicated space.

What do you believe about credit and are those beliefs fact or fantasy? Here’s a quick quiz for you to gauge how much you know about today’s world of credit.

Answer the following as either FACT or FANTASY:

  1. If I have never had a credit card or debt, then I won’t have a good credit score.
  2. Carrying over a balance on my credit card helps me build good credit scores.
  3. My credit history is the area that has the greatest impact on my score.
  4. If I pay off my balances each month, then I don’t have to worry about Debt Usage or Utilization (the amount of debt to credit available).
  5. If I co-sign a loan for someone else, it will still be their debt and not mine.
  6. I have three credit scores.
  7. I can get a free copy of my credit report at Annual Credit Report for each of the three main credit reporting bureaus.
  8. My credit report and my credit score are both free and they are basically the same.
  9. It’s a smart credit move to repeatedly take advantage of introductory APR rates by opening new credit cards and transferring these balances to the lower APR. Then cancel the cards and you will still have a good score while taking advantage of the lower rates.
  10. If I only have credit cards and student loan debt, then it’s important for me to get a car or motorcycle loan for the expressed purpose of building diversification to help my credit score.

Answers

  1. Fact. No credit history means you haven’t started to positively build your credit score. This means you would have a low score on many of the scoring models.

FIX: Start out with a secured credit card where you can’t charge more than you have secured in the credit card account. You can review cards at Bankrate but read the fine print to know what you are getting. This will establish a history and help you start to develop good credit.

  1. Fantasy. Carrying over a balance only means you’re paying interest every month on the balance you carry—which isn’t a smart credit move. Maintaining a credit card balance doesn’t help to build your credit.

FIX: Pay your credit bills on time, carry lower balances and have credit cards for a longer period of time in order to build positive credit.

  1. Fact.  Credit history accounts for 35% of your score and Debt Usage (Utilization) accounts for 30% of your score.

FIX: Concentrating on these two areas (Credit History and Debt Usage) are the most effective means of helping you build good credit.

  1. Fantasy. Even if you pay off your balances every month, you could take a hit in the Debt Usage area if you charge more than 30% of the available credit at the time that the snapshot of your account is taken. So if you have 10K available on the credit card and you’ve charged 9K in order to get points, you’ll have a 90% utilization record if this account is recorded before you pay the balance when the bill is due.

FIX: If you charge items to get points and your utilization is high, then transfer a payment BEFORE the bill is due. You’ll still get your points, but you get ahead of the Debt Usage scenario.

  1. Fantasy. Once you co-sign, then you are responsible for the debt if the other person doesn’t pay. If they pay, it’s not problem, but if they don’t, you will.  You’ll have to pay off that motorcycle, the remainder of the lease or the credit card, should that person default.

FIX: Don’t co-sign on a loan. We’ve lost friendships and relationships with family members when they tried to take us hostage by trying to force us to co-sign. If the lender determines they won’t take a risk on them without a co-signer, then why would you take the risk?

  1. Fantasy. Rod Griffin from Experian, our Heroes at Home credit educator says he could probably pull 80+ scores on any of his audience members. There are three main credit reporting bureaus, but many credit scoring models.

FIX: To know if you have a good credit score, pay attention to the scoring model. On some scales 750 is a good score and on other scales, it could be average.

  1. Fact. You can and should get your free copy of your credit history from each of the three main reporting bureaus listed at Annual Credit Report. But be careful, you have to opt out of paying for scores, monitoring or other services.

FIX: When you order your free score at this site, don’t ever give your credit card info or you could inadvertently be signing up for a product or service you don’t want. However, you do need to be prepared to give your social security number at this secured site.

  1. Fantasy. A credit history is different from a credit score. The history gives a list of all the various credit accounts/debt you’ve have in your lifetime. The credit score is a number that determines your credit worthiness to lenders. The credit history is free at Annual Credit Report.

FIX: Free credit scores are available at Credit.com and CreditKarma.com. But make sure you are getting the free service and not accidentally signing up for a paid service. You can also check your credit card bill to see if your company provides a free copy of your score. If you are military, get a free score at your Family Readiness Center.

  1. Fantasy. This is a good way to deteriorate your credit score. Lenders can see you are transferring balances and taking advantage of a new card’s APR offer. It can even look like you are floating the note or trying to pay Peter by robbing Paul. When you open and close multiple accounts, you shorten the overall length of your credit history and can ruin your score.

FIX: Pay attention to your credit history and remember that every new card you open shortens the overall credit history length of all your accounts combined. Open new credit accounts sparingly and don’t credit card jump to try and save money.

  1. Fantasy. While it is true that different kinds of loans build diversification in your credit profile, diversification only accounts for 10% of your score. So the idea that you SHOULD go out and buy a car or motorcycle (and finance it) in order to get a better credit score is pretty ludicrous.

FIX: Buy a car or motorcycle because you need one and you can afford it. Make sure you budget to be able to pay the note, insurance and other vehicle ownership expenses.

 

Scoring

10 Correct

 Superstar – You know a lot about credit, so you are probably: 1) in the financial industry or 2) really well informed and good with money or 3) you cheated. If you didn’t cheat, you might even qualify to be one of our superstar speakers at Heroes At Home because you certainly know enough to teach this topic!

 

8-9 Correct 

Excellent – You may be kicking yourself or crying “trick question” because you got almost all the right answers. Nonetheless, even experts can learn a few things about the ever-changing world of credit. Be sure you are giving your mentees up to date advice and pay attention to the nuances of building excellent credit.

 

6-7 Correct

 Good – You have a good working knowledge of credit, but you’re no expert. You’ve believed a few fantasies instead of the facts in some of these areas. Pay attention to the questions you missed and make it a point to readjust your thinking so that you can build even better credit.

 

5 or less Correct

 MEH – You know just enough to be dangerous and you are at the greatest risk of crashing and burning when it comes to credit mistakes. Study the wrong answers and make sure you understand how credit works before you open new lines of credit, cosign a loan or try to get a loan for a new vehicle.

 

 

 

 

 

The Heroes at Home Financial Event Tour Update

We’ve visited JBSA, San Antonio, Lackland AFB, Randolph AFB, Laughlin AFB and the last stop was Sheppard AFB. At every base there are things that are the same: 1) we have a lot of fun presenting financial education to our military audiences 2) everyone wants to win the iPad 3) they are surprised that they can learn and have a good time simultaneously and 4) we are always grateful to USAA for providing for so many aspects of this tour. But

Friends and family at every base!

at every base there are also challenges that our military members face that are unique to that base.

At JBSA there are 11 different units from all branches and consequently we have a “purple” audience with Airmen, soldiers, Marines and sailors in attendance. As a mom with sons in each of these branches, I can still relate to my audiences. At Lackland, which is “out in the middle of nowhere” they were so appreciative that we came “all the way out” to Del Rio, TX, (right by the border) to spend time with them. They were a welcoming audience and have a unique mission of training pilots who will go into all parts of the world, flying different kinds of airplanes. We called them “the little base with a big mission,” they also have big hearts.

This past week, we went to Sheppard AFB and saw yet another demographic of Airmen who are in freshly out of boot camp and in military training for their big world mission. Many are mechanics, but there are all kinds of technical professions trained there as well—60,000 per year. There’s also ENJPT (Euro NATO Jet Pilot Training) where future fighter pilots are trained (about 200 per year).

One of the unique challenges of Airmen at Sheppard is that they are vulnerable

A Full house at Sheppard AFB. Photobombing my fellow speakers Ingrid Bruns from USAA and Bethany Grace our high energy emcee!

financially in two areas: family and love. Some of these young military members are pressured by extended family members to send money back home. We stressed that when you are getting a flight briefing from the flight attendant on a commercial airline, she says, “If the cabin depressurizes, air masks will fall from the upper compartment. If you are traveling with someone who needs assistance, put on your own mask first, then assist them.” That’s the same premise we stressed with our young Airmen, “take care of your own finances first and get financially fit and healthy, then teach your family how to do the same.” From the platform, I stressed the old adage, “You can give a man a fish, and feet him for a day. But you can teach him how to fish and feed him for a lifetime.” Yep! We gave some fishing lessons.

The other thing that slips up Airmen is love. They spend money they don’t have trying to impress a significant other by going out to eat, to movies and even buying them jewelry. Some of the jewelry stores convince these young Airmen to sign on the bottom line and they end up paying for years at 30% interest for a necklace or a ring. At one point, I almost shouted from the stage, “If you don’t remember anything I said today, remember this: NEVER SIGN FOR A LOAN WITHOUT HAVING SOMEONE LOOK IT OVER!” I believe the 1300 trainees in the audience got that point. “There are folks at Airmen and Family Readiness who would be more than happy to review a loan before you sign it.” This tip alone could save them thousands of dollars on auto, jewelry, computer and personal loans.

     One of my favorite aspects of the Heroes at Home Financial Event is reconnecting with friends and family. In San Antonio, my BFF Brenda Taylor was there in the audience. A friend knows a lot about you, a BFF knows enough to blackmail you. Brenda can blackmail me many times over! At Laughlin AFB, my good friend Beth Runkle was not only instrumental in getting the spouses together the night before the financial event, but she also introduced me as well. I love the heroes in the Runkle family! At Sheppard, our longtime friends, BG Pat “Moon” Doherty and his wife Dee Dee were there to welcome us royally. I’d call him the World’s Greatest Fighter Pilot because he did fly me in an F15E Strike Eagle once, but Bob would beg to differ about that designation. These Heroes not only brought me out to Seymour Johnson AFB many “moons” ago, but they were instrumental in bringing this tour to the Air Force!

     But the one audience member on this tour whom I love more than life itself is my son Jonathan, who is a student at ENJPT and was a smiling face that I adore. I removed a slide or two that might prove embarrassing in front of 1300 Airmen and tried really hard to not highlight my son in my presentation or during the tour day. If you want to know if I was successful in this regard, you’ll have to ask Jonathan. Apparently, parents can embarrass their kids without even knowing they are doing that. There was just one time, when I ate a blue mint in the General’s office and then addressed his staff of 55 commanders that might have been a problem. I was told later, my teeth were Air Force Blue.

We may be coming to a base near you, this schedule is constantly changing and we are adding news dates regularly. Contact us at assistant @elliekay.com for more info and continue to Aim High!

Money Savings Kids!

Well, my kids are getting in on the money savings act–literally! Jonathan went to Texas to visit his older brother, Daniel. While he was there, Daniel and his fiancee’, Jenn, decided to give Jonathan “the” money savings tips talk. The took some tips from one of my books and make a short film about savings money! So funny!

Please enjoy watching “The Hendersons” as they teach their son about saving money!

http://youtube.com/watch?v=omPIoJcp6rw

You’ll see that the apple doesn’t fall far from the money tree!

Also, here’s an abbreviated checklist on how your kids can be Fiscally Fit. For the longer version, email assistant@elliekay.com and request “Fiscal Fitness”:

Age 2 to 4

  • Picks up toys cheerfully
  • Is on a schedule for sleep, play, and work (or school)

Age 4 to 6

  • Makes bed in a basic way (not necessarily neat)
  • Picks up room regularly
  • Brings clothes to hamper
  • Knows how to set and clear the table
  • Knows how to take out the trash

Ages 7 to 10

  • Knows how to sort laundry into whites, coloreds and darks
  • Can fold laundry and put it in everyone’s room
  • Is given an allowance
  • Has a savings account at home and at a bank
  • Manages a fun kid budget (restaurant, zoo, amusement park, etc)

Ages 11 to 12

  • Begins to do additional “jobs” for hire within the home and occasionally for friends or family.
  • Has a savings account with at least $200 to $250 in it.
  • Is learning the meaning of delayed gratification
  • Can save up for half of a larger ticket item they (bike, skates, video games, etc)
  • Is regularly contributing to a community organization either through volunteer hours or donating goods (clothing, toys, money)

Ages 13 to 15

  • Can manage and balance their own checkbook with supervision
  • Has enough in savings to take out $200 to $300 to start a mutual fund
  • Able to do outside jobs for hire among approved employers in the neighborhood
  • Regularly pays for non-family outings (movies, theme parks, etc)
  • Is saving for a vehicle
  • Is aware of the fact their grades in high school will impact their ability to get into college and earn scholarships for college

Age 16 to 20

  • Can balance a checkbook without supervision
  • Has an additional credit card (on parents account) and can use it responsibly
  • Can manage and balance a clothing budget and personal financial budget
  • Regularly works inside and outside of the home during breaks from school
  • Has paid for 1/3 to 1/2 of the cost of their car
  • Maintains a good GPA (or what they are capable of)
  • Has a regular volunteer position (hospital, coaching, church involvement, etc)
  • Can use social media to learn ways to save money

Ellie Kay
“America’s Family Financial Expert” (R)
http://www.elliekay.com/

Summertime! Vacation Time!

When I was a kid, my parents stuffed three children in the back of a Volkswagon Bug and hit the road from Texas to Indiana to see Grandma Laudeman. It seemed like our travel days lasted for weeks. My dad had two goals: 1) to never stop the car and 2) to avoid hearing “Are we there yet?”  My mom also had two goals: 1) to save money and 2) to keep dad happy. 

     Fast forward a couple of decades and I found myself as a mom with seven people stuffed into a Suburban, traveling from coast to coast on a family vacation. Not surprisingly, my husband’s road goals are the same as my dad’s and like my mom, my goal is to save money and keep the peace.

      There are ways to make the miles go smoother, and also save money on your road trip, even if you do have to stop occasionally along the way. Here are some trends and tips to keep in mind when planning this year’s travel.

Better Early Than Late

     Pack everything the night before and plan on waking the kids by dawn’s early light. In doing this, you not only save money, but you’ll also save your sanity as well. Those who hit the road early tend to avoid traffic, slow downs and traffic jams, which saves on gas mileage. By embarking while the kids are barely awake, you will get 2 to 3 more hours of quiet time while they sleep and you get to enjoy a conversation with your spouse without being interrupted.

Kid Krates

     No, I don’t mean you should put your kids into a crate, but you should assign a small box for each child to pack for the road. This saves money on the road. You can help them pack their favorite, healthy snacks and drinks, some toys, books, art supplies or anything else that will keep them distracted and happy on the road. Kids who pack their snacks and meals are five times more likely to be content with their food options and far less likely to complain. Keep the crates within arms reach of the child and have them ask permission before they open it or you might find out that they’ve eaten all their food within the first hour! You can add inexpensive “surprises” to each child’s crate, that they get to unwrap every hour on the hour if they don’t ask the verboten question: “Are we there yet?”

Fun Eats and Tech Savvy Treats

     Be on the lookout for specials in your destination’s area. For example, on travelzoo.com, you can not only find sales on hotels, but you can also receive notification when Restaurant.com puts their $25 gift certificates on sale for $2.  At entertainment.com, you can find values by entering your destination’s zip code and previewing coupons for attractions, hotels, restaurants and more. These coupon books cost around $35.

    There are some great phone apps that can save you money such as Coupon Sherpa, which eliminates the need for a traditional coupon book by providing hundreds of in-store coupons for many merchants on your iPhone or iPod Touch. The coupons can be scanned by optical scanners from your phone. Save money on food, hotels, restaurants, amusement parks, travel, and more. You can find coupons by category or store name, email coupons to friends, create your own favorites list of stores and find the store nearest you.

     Another free app to launch on your iPhone, iPod Touch, or android phone is Yowza. It instantly goes about finding deals and coupons in your geographic area. When you walk up to the cashier, just show the deal on your device and let them scan the barcode or type in the coupon code. No need to remember which location that restaurant coupon was good for. It features city and zip code based coupon searches, notifications when your favorite store adds a coupon and you can share your savings via Twitter, Facebook, or Email. To get the best value in a travel or vacation related app, go to the review site Appolicious.com.

     Social media sites such as Groupon, facebook and twitter are great resources.  From these sites you can discover “flash sales” for everything from restaurants, ice cream, theater tickets, and hotel sales. It’s also a great way to get insider information about last minute deals.

Finishing Well

       The most important part of your road trip is spending time with the family. Keep in mind that sometimes a new experience for a child becomes an adventure as well, so look for new activities and open the doors for loads of fun. Creating forever memories with your family is what a successful road trip is all about!

Ellie Kay

America’s Family Financial Expert (R)

Back to College – Debt Free (part 1)

Back To College—Debt-Free (part 1)

When Bethany was four years old, she came running in the house sobbing uncontrollably. I smoothed her blond curls and held her, “What’s wrong, Bunny?”
“I don’t want to leave you and go to college!” Her chubby arms held my neck tight.
“Um, well, Bunny, you don’t have to go to college any time soon!” I soothed, while rubbing her back.
She sat up straight, “I don’t?”
Wiping away her tears, she sniffed, “Good! Can I go back to Julie’s house and play again?”
I figured out later that all the drama was because Julie’s older brother was leaving for college and her friend’s family was sad to say goodbye. She thought she was going to have to leave us and it made her sad.
Fast forward the better part of two decades and she’s now a rising senior at Moody in Chicago, majoring in media communications. She’s not crying when she goes back to school, although we miss her. The good news is that she, along with all our other kids, are graduating debt-free! We don’t have any student loans and we didn’t have to refinance our house. Here are a few quick tips to pay for college. For more info, email assistant@elliekay.com and ask for the “College Crunch File.”

1. Make the Right Choice – Choose a school not because it’s the best, but because it’s the best value. Change the conversation from “I’ll go to the best college that I can get into” to “I will go to the school where I can get the best education possible for the least amount of student loan debt.” Our son, Daniel, chose the University of Texas (Arlington) over the scholarship he got to Syracuse and TCU because he would still have 60K in student loan debt after the scholarships ran out. He graduated with honors and a degree in journalism. He’s a working writer in Texas and doesn’t regret his college choice.

2. Save Big on Books by Renting – The average student pays more than $600 for course materials – the largest expense after tuition and room and board. I’ve recently partnered with Follett and found that by renting textbooks through their Rent-A-Text program, students can cut costs by 50 percent or more. CafeScribe’s digital textbooks are another great way to save, and both options are available to purchase at more than 800 Follett bookstore locations and online through efollett.com. Students at non-Follett schools can also purchase their digital textbooks on CafeScribe.com. I ordered Joshua’s textbooks this week and saved 52%!!

3. Make Scholarships a Part-Time Job – Millions of dollars of scholarship money go unclaimed every year. This is free money that parents or prospective students who are willing to do some detective work may find more quickly than they think. Go to www.collegeboard.com or www.salliemae.com to find scholarships that might be a fit for you.

4. Create a Budget, and Stick to It – As a parent of a college student, your love for your student is unconditional, but your money is conditional. That’s what we’ve always told our kids. To ensure students are making the most of their money, set a budget for spending and manage it by loading funds on a campus card to help track spending. And determine which on-campus retailers accept financial aid to be certain you’re making the most of your college dollars.

Ellie Kay
America’s Family Financial Expert