Few areas of credit are as complicated today as that of student loans. There are many types, with lots of terms, complicated conditions, and fine print. But studying those options is important in order to make the best long-term choice for education funding.
You’ll find basic ideas about student loans and that is where you should start.
Recently, my eight year old son got a lesson on this topic. We were getting ready to watch a movie and the children asked for popcorn. We went out to the kitchen. I went to the cupboard and grabbed a bag of the Aldi popcorn. Kellen grabbed a bag of Trail’s End popcorn. If you aren’t familiar with Trail’s End, it is sold as a fund raiser for the Boy Scouts and marketed as “gourmet.” We received a big box of this as a present, and I had put it up until we finished what we already had in the cupboard. My son really wanted the Trail’s End, so I let him get one out. This is what we were holding.
He took the outer wrapping off the Trail’s End popcorn, and I thought, “That is interesting.” I took the outer wrapping off the Aldi bag. This is what we saw.
“How can this be?” said my son, “They are the same bag!” I explained to him that often manufacturers and processors make the same product for different companies. They just use different packaging, according to what each company wants. You are paying for the name, the packaging, and marketing when you purchase the name brand at a higher price.
I am not sure how much the Trail’s End popcorn was since we received it as a gift. I can tell you the Aldi box of six bags was $1.39. I’m sure the Trail’s End was significantly more expensive. It is good popcorn, no matter how much you pay for it!
I really don’t mind paying a bit more for the Trail’s End because it is a fund raiser. I know I am paying for packaging, a name, and a good cause; not better popcorn! But what about other food items? Are the name brands really different from the store brands, or are they the same thing in a different package? Save yourself some money, buy the store brand!
If you still aren’t convinced, I challenge you to conduct your own blind taste test. Buy the brand and the generic. Have someone else (bet the kids would love to do this) open the container, and place a sample from each on a plate. Look at and taste both products. Are they the same? If not, which do you like better? Then have the other person tell you which was the name brand and which was the store brand. You may be surprised by the results.
Apart from spending less, another option to pay your debt faster is to increase your income. You can make money for an extra payment with a little creativity and a few ideas to get you started. You know the best debt reduction technique is to pay faster.
The first step to the ideal financial life is to get organized. Some people are naturally organized, the rest of us have to learn how to do it. Create your personal space to deal with finances.
The idea is to make your finanacial life more efficient. Keeping all papers in one place is a first step. We will reorganize the rest slowly.
Eating out is expensive. Cooking at home is much more economical. With kids, eating out can really take its toll on the budget. Eating out should not be a regular occurrence, if you are trying live frugally or pay off debt, but it is not practical to expect to never go out to eat. Sometimes, you find yourself out and about with out a packed meal, and suddenly there is a car full of hungry, grumpy kids, not to mention parents. (See below for some tips to prevent that.) Sometimes you just want to go out to eat as a special treat. So, when you do dine out, here are some tips to help keep the cost down.
Drink Water
It is amazing how much this will save you. Adult drinks can be up $2 at some restaurants. Kids drinks $1 or more. It adds up quick when you are with the family. Do the kids really need more sugar and/or caffeine? Do check the kids menu closely. Sometimes their drink is included, so you wouldn’t save money by drinking water. Let them have milk or juice if it is part of their meal.
If you do choose to buy drinks, buy the smallest size. Most restaurants have free refills. No matter how thirsty you are you can be satisfied with the smallest size.
Know your Restaurants
Pay attention to their ads and signs. Many places have days when the kids eat for free. A local Italian place here has Two for Tuesdays. Remember them or write them down. Save your special treats for those days. Some restaurants have good deals for kids everyday. Shoney’s gives you one free meal per adult buffet.
Don’t go to fast food.
It really is not that cheap, especially if you buy the kids meals. Yes, you do pay for the toy. You can eat better food (though I’m glad to see some healthier options at fast food places) for the same, or less money elsewhere.
Eat at Buffets
Buffets may not always be an adult favorite, but they are great for kids. Here are a few reasons:
Better food and more options than fast food.
Instant gratification for the kids. They don’t have to wait after they order.
It often costs less than fast food. Younger children often eat free.
Great for picky eaters!
One of our regular choices is CiCi’s. The kids love CiCi’s. We have four children. Two eat free there. We drink water. Our total bill is $22. Another tip about CiCi’s, if they don’t have the pizza you want on the buffet, they will make a pizza to your order, and bring it to your table. Golden Corral is reasonable too. They price kids according to age.
Probably our favorite buffets though are the local ethnic ones. Pricing varies, but at most at least two of our kids are free, some price by age, and usually the adult prices are very reasonable. It is a great place to have the kids try new food. Ours love Chinese. We went with the kids to the local Indian buffet once. I love Indian! The kids were a bit hesitant at first, but found many things they liked. Total with tip $27. We can spend that much on fast food.
Consider how much your kids really eat.
Do your children finish a whole kids meal. Can they share a meal? Younger ones usually can. Often, the adult portion is large enough to share with a child. Another trick, order small sandwiches for all, but share sides.
Avoid Getting Caught Out and About
With good planing dining costs can be cut substantially. Try to prevent getting “caught out and about” at meal time by planning errands between meals. Keep a stash of snacks in the car for those times things take longer than expected. If you need to get something while on the run, convenience food at the store is cheaper than at the drive through.
Eating out is something we are going to do. We can do our best to avoid unplanned dining, and save dining for a special treat. When we do choose to eat out, keeping these tips in mind will help keep the costs under control.
On the practical side, as obviously you have to pay your debts, finding extra money to pay them faster can make your month. How to save for an extra payment on your credit card? Probably you are looking for some practical tips to get you started. There are some common sense steps you can take and some you probably are. Check the list to be sure your have a tick on each point and you are saving as much as you can.
Once all a kid had to do to become a meaningful adult was to be able to hunt or gather food. As we evolved, children had to acquire farming and do it yourself skills and some more brainy ones, like reading and writing -not such a matter of fact ability only a hundred years ago- and a talent for numbers. All that is not enough today: it is necessary to get money management expertise
How can parents instill the value of money and the ability to manage it in their little ones?
An allowance is the best way to teach kids personal finance skills, such as:
Even if their decisions are not all wise now, be certain they are learning. They are learning how to survive consumerism and how to tell wants apart from needs; be sure they will be faster to evaluate and take better decisions when they grow. There is an immediate benefit: having their own money and using it as they see fit will increase their self-confidence and sense of independence.
Unclaimed Money blog is a good start in your path to financial freedom.