Dictionary For Dads

All parents and families in spite of the irresistible TV ads, promotions and glittering in store displays,have to face the reality of the economic recession. Every responsible family will implement a scaled back family budget to protect their resources and survive this economic melt down.

Parents and families can not afford to engage in the behavior of impulse buying during this economic recession. Parents and families this year should develop a new budget that eliminates most of the excess spending. Free time should now be based more on making family memories and and less on commercialism and unrestrained spending. It is a good time to focusing on the value of families and sharing time with each other.

This year is a perfect time to teach a lesson of a lifetime to your children and teenagers; Financial Responsibility.

For many Children, money means the magic card that comes out of mom's wallet or cash obediently emerging from an ATM. Parents lead the way in teaching kids respect for money and the value of budgeting, saving, and buying only what you can afford. It's never too early to teach children that money really doesn't grow on trees and there has to be money in the bank before those magic cards and ATMs can be used.

This Recession may be the perfect time to teach kids the object lessons around money and family economics. Give the younger kids a piggy bank to encourage saving for special purchases and take the opportunity to explain the basics of finance to older kids, especially if there is resistance or anger about the new economy and family budget.

• American Recovery and Reinvestment Act 2009
  The $800 Billion “Stimulus Package” has a provision in it to help home buyers. Specifically, there is now an $8,000 credit to home buyers (compared to the previous $7,500) who buy between 1/1/09 and 12/31/09. This money does not have to be paid back if the home is not sold within 3 years. More specific details of this plan will be released on March 4th.
  
• Set a budget and stick to it. The budget should reflect current debt and monthly financial obligations.
  
• Make a list of expenses including transportation, supplies, insurance, rents, food, and entertainment. Everyone in the family who is old enough to work should consider earning where they can to help. These tasks such as baby sitting, or mowing lawns and shoveling snow all add and contribute to the family.
  
• Remember, it's a mistake to go deeper into debt when there are low cost alternatives to meeting your family needs.
  
• Make a hard copy of the budget and take it with you when you go shopping to remind yourself how much you have to spend as you resist compelling sales pitches and pressure from starry eyed kids.
  
• Think outside the box to come up with meal ideas within the budget. These may require some extra prep time but will save you money.Consider home made pizza, and snacks that are cheaper to make and double as a fun family activity
  
• A Brown Bag lunch for all family members takes a big chunk out of the family budget.
  
• Minimize individual activities for children and brainstorm economical group activities the whole family can enjoy. Such as watching a movie, a camping trip, a subscription to a magazine, attending a local High School sports event, ice skating, local theater,  Take girls to a bead shop or do scrap booking with everyone involved in bringing the family history together. It is easier to budget entertainment when the whole family is doing the same activity. Parents can sometimes get group or family rates that are more economical.
  
• Family traditions create those long lasting, meaningful memories, play a special board game, sing favorite songs, tell funny stories, cook a funky meal, and visit other extended family.

1. Without alarming kids, have a planned age appropriate conversation about the economic recession and make them aware that everyone in the family is on a tight budget. Many teens have no idea about monthly expenses and are stunned to find out what it actually costs to run a home. Ask your teenager what he/she thinks it costs and then compare the real cost with them.  (Many teens think the monthly costs are for an entire year!)

2. Teach your children how to create and live within a budget, the value of saving, and an understanding of basic financial terms. The most important section explains the realities of credit cards including the upsides and the downsides of impulse buying, accumulating interest, user fees and the slippery slope of credit card debt.  

3. Help kids to set budgets of their own and suggest home made hobbies, recycled CD's or computer games.. Encourage children to save for big ticket items by offering matching fund. 

4. Utility Bills- Things such as water bills, heating bills, or electric bills are absolutely necessary, but many times there are things that can be done to cut back on the amount you are spending on these each month. Simple things such as turning the thermostat down at night in the winter and just using warm blankets can save money. Don't wash any small loads of laundry if necessary, more loads is more money in hot water, elctric and or gas for the dryer so combine the loads.

5. Cell Phone bills- Most family members can find ways to get by with a cheaper cell phone plan than the one they currently have. Utilize all the cell phone competition that are out there now in this bad economy and find the best plan for your family. You also may be able to disconnect your home phone and rely on the cell for all communication.

7. Shopping- It is a hassle but be smart and start doing things like using coupons and buying in bulk when things are on sale to save money.

6. Gas station- Yes the price of gasoline has decreased, but you can still save money by car pooling or simply cutting back on the amount of driving you do. Plan your driving trips to make sure you use your gas efficiently

8.This Economic Recession may curb families spending but it will not prevent families from connecting and enjoying each other. In fact, it may be very meaningful and  give families an opportunity to learn about economics and pull together as a family unit..

Dictionary For Dads thanks Sheena Berg for submitting parts of this article for publication.