Saving money might seem difficult for children, but it can actually be easy given you follow a couple of tips. Below are some of the best ways to help your children form awesome money habits. Using these tips can help set your children up for success in the future.

1. Instill the Habit of Saving at a Young Age

The earlier you start teaching your children about money, the better. It’s never too early to start a conversation about finances with your kids. You can begin by simply explaining what money is and how it’s used. As they get older, you can start to instill the habit of saving.

One way to do this is to set up a piggy bank or savings account that they can contribute to. Every time they receive money, whether it’s from an allowance or gifts, encourage them to put some of it into their savings. Help them to set goals for what they want to save up for and praise them when they reach their targets.

2. Encourage Them to Spend Wisely

Teach your children the difference between needs and wants. Needs are things that we must have in order to survive, like food and shelter. Wants are things that we would like to have but don’t necessarily need.

Help them to understand that we can’t always have everything we want and that it’s important to spend money wisely. One way to do this is to give them a set amount of “fun money” to spend each week. Once it’s gone, they can’t spend any more until the following week. This will help them to budget and understand the difference between spending money and saving money.

3. Teach Them About Giving

Giving is an important money habit to teach your children. Not only is it good for others but it can also benefit your children in the long run.

When your children receive money, encourage them to set aside a portion to give to charity. Many websites can help your child give donations online. Giving donations will help them to develop a habit of giving and also show them the importance of helping others.

4. Help Them Understand Debt

Debt is something that many adults struggle with, so it’s important to teach your children about it from a young age. One way to do this is to explain the difference between good debt and bad debt. Good debt is something that we take on in order to improve our lives, like taking out a loan for a house or an education. Bad debt is something that we spend money on that doesn’t increase our net worth, like credit card debt.

5. Create Ways to Earn Money

You can create a chore chart with different earnings attached. You can design your own with your kids or you can find a downloadable chore chart online. With 1.8 billion websites operating at the same time every day, you can find downloadables on sites like Etsy, Pinterest, and more.

Another way to earn money is through an allowance. You can give your kids a set amount of money each week for completing their chores. This is a great way to teach them about budgeting and saving.

6. Teach Your Child How to Budget

One way to help your child budget is by giving them a set amount of money each week for spending. This could be their allowance or money they’ve earned from completing chores. Once the money is gone, they can’t spend any more until the following week. This will help them understand the importance of budgeting and not spending all of their money at once.

Teaching your children about money is one of the most important things you can do. By instilling good money habits, you’ll set them up for success in their future, save them from financial stress, and help them to make smart decisions with their money.

What is House Sharing?

For people who want to strike a balance between a sense of community and financial stability, sharing a home has emerged as an advantageous and sociable choice. The idea of house sharing also referred to as professional house shares, has become extremely popular as people look for methods to divide costs, take advantage of the company, and create comfortable living spaces. The complexities of house-sharing are examined in this article, along with its advantages, the growth of house-sharing websites, and the forces at play when cohabitation becomes a significant relationship.

House sharing refers to a living arrangement where individuals or families share a single house, splitting the rent and expenses. House sharing offers cost savings, companionship, and shared responsibilities. It is a popular option for students, young professionals, and older adults looking for affordable and sociable living arrangements.

 

The Rise of House Sharing

The housing market has taken an unexpected and disheartening turn for prospective homebuyers and current homeowners alike. Mortgage rates, which have been on an uptrend for the past year , are now delivering a harsh blow to anyone seeking to purchase or refinance their home in the current market where 7% APR is the average.

Finding inexpensive housing can frequently be difficult because of the high cost of living, particularly in urban regions. In response, many people have turned to house sharing as a practical way to control costs. Rent, utilities, and other expenses are divided among a number of housemates in order to greatly lessen the financial load on each person. House sharing is especially tempting to young professionals, students, and those seeking to save money without sacrificing comfort because of this financial advantage.

 

Benefits of House-Sharing

Sharing a home is a lifestyle decision that offers numerous benefits that go far beyond simple cohabitation; it’s not just about dividing the expenditures. Let’s explore these advantages in greater detail and see how house-sharing changes what it means to live in a single household:

 

1. Cost Sharing

A significant financial benefit of house sharing is expense sharing. Housemates share the cost of living, including rent, utilities, and maintenance. In the current economic climate, where growing living costs can stretch even the most carefully constructed budgets, this financial respite is especially helpful. Housemates who share financial duties are not only better able to manage their money but also have more money available for other activities like personal development, travel, or investments.

 

2. Social Connections

More than just a utilitarian arrangement, house sharing serves as a springboard for developing deep interpersonal relationships. People get exposed to a wide range of personalities, histories, and viewpoints when they live with housemates. These encounters encourage the formation of solid ties over time, which may result in true friendships. A sense of community that goes beyond the practical requirements of cohabitation is created by shared experiences, late-night chats, and the camaraderie of daily life. Housemates frequently transform into a chosen family, supporting and encouraging one another through life’s ups and downs, from preparing meals together to celebrating milestones.

 

3. Shared Responsibilities

In a shared home, the task wheel has a whole new meaning. Sharing duties, such as cleaning, grocery shopping, and home maintenance, promotes a cooperative living situation. By splitting up the labor, each housemate feels more responsible and accountable while simultaneously having a lighter workload. This teamwork-based approach to household management promotes good communication, compromise, and a greater respect for the contributions made by all parties. In response, this culture of cooperation raises the standard of living generally and fosters a peaceful environment.

 

4. Comfort and Space

House sharing often makes it possible to afford a more luxurious and roomy living situation. Many people discover they may rent larger homes that are out of their price range. Greater personal comfort and flexibility are made possible by the additional space, which improves quality of life. Ample living space, a peaceful study corner, or a backyard garden are just a few examples of how having more space improves well-being and leaves room for leisure and personal hobbies.

 

5. Shared Experiences and Lifelong Memories

Shared housing memories frequently play a significant role in one’s life story. Housemates will remember these shared events, which range from movie nights to themed parties to unplanned get-togethers, for years to come. These memories hold a special place in the heart and add to the tapestry of life by fostering a sense of nostalgia. That empty spare room could be space that built a lifelong connection.

 

The Digital Landscape of Professional House-Sharing Platforms

The prevalence of internet platforms designed to match possible housemates and facilitate easy transitions into shared housing has increased along with the popularity of house sharing. House sharing websites have become virtual gathering places where people may connect with others looking for similar living situations. These websites include a variety of services that make it easier to find and book compatible roommates and lodging.

 

1. SpareRoom: Navigating the House Sharing Universe

In terms of housing-sharing websites, SpareRoom is a shining example. It acts as a virtual hub where people can submit ads for available rooms or search for accommodations that suit their needs, thanks to its user-friendly layout and extensive features. It is simple to filter results depending on location, budget, and desired amenities, thanks to the platform’s user-friendly design.

 

The emphasis on establishing thorough profiles for both potential housemates and available rooms is one of SpareRoom’s distinctive features. Through this method, people can learn more about one other’s interests, expectations, and way of life, which promotes openness and compatibility. Users can find the appropriate house-sharing arrangement on SpareRoom using its comprehensive search parameters, whether they are looking for a professional house share, a student flat, or a cozy home with other like-minded people.

 

2. Craigslist: A Diverse Marketplace for House Sharing

The popular classifieds website Craigslist has established a specialized market for house sharing. The platform’s housing segment offers a range of house-sharing alternatives despite covering many different categories.

 

People can advertise and search for postings for available rooms, establishing direct contact with potential roommates. While dedicated house-sharing services may have a more complex style and organization, Craigslist is still a good alternative for anyone looking for shared housing.

 

3. Roomster: A Global Approach to House Sharing

Roomster caters to both local and international house-sharing needs, taking house-sharing to a new level. The platform sets itself apart from other house sharing sites by providing thorough profiles with background checks and compatibility scores. These tools improve the safety and standard of house sharing while giving potential housemates’ lifestyles and preferences greater transparency.

 

The philosophy behind Roomster’s house sharing goes beyond simple postings; it aspires to provide an environment where people may find not just housemates but also friends and other social connections. This more comprehensive viewpoint is consistent with the notion that house sharing is not just about sharing expenditures but also about building a sense of community and companionship.

 

 

The Art of Connection and Compatibility

The potential of these digital platforms to link people with similar ideals, lifestyles, and preferences is what makes them unique. Compatibility becomes important as house sharing moves beyond simple cohabitation. People are empowered to make knowledgeable selections regarding potential roommates and accommodations because of the comprehensive profiles and sophisticated search filters supplied by these platforms. These portals enable customized searches that meet specific demands, whether someone is seeking a professional house share, a peaceful study space, or a buzzing social scene.

 

Navigating the Digital Landscape: Tips for Success

Although house-sharing websites make it easier to find compatible housemates, it’s still vital to take your time and be thoughtful as you travel. Following are some pointers for navigating the online world of house-sharing platforms:

 

Create Comprehensive Profiles

Be truthful and detailed when describing your lifestyle, routines, and preferences while building a profile. This openness will draw roommates with similar values.

 

Utilize Filters

Utilize search filters to narrow down choices based on region, price range, and particular needs. Unless you’re in a desperate situation, be as strict as you can with our requirements.

 

Engage in Conversations

Once you’ve located suitable roommates or lodging, strike up a chat to learn more about each another. This process is essential for determining compatibility and building rapport. Find out as much as you can about their background and reasoning behind taking the house sharing route.

 

Set Expectations

Potential roommates should be made aware of your expectations and boundaries. This will assist in avoiding misunderstandings and provide a peaceful living situation.

 

Conclusion

Sharing a home has become a realistic and affordable solution in a world where housing costs can be prohibitive. Finding matching housemates and accommodations is now more straightforward than ever, thanks to the growth of house-sharing services. What starts out as a financial choice typically turns into a journey of making friends, sharing experiences, and establishing a sense of belonging. The art of house sharing continues to alter lives, homes, and how we view the idea of cohabiting as people try to achieve a balance between financial security and a sense of community.

 

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As you know, we have been on our own debt-free journey for some time now. My husband and I have come a long way, but before we got together (and even for a while afterwards), we’ve made some pretty awful money mistakes. Here are three stories from my past that still keep me up at night.

That Time I Cosigned For A Car

Let’s go back nearly a decade to 2013. At the time, I was living with my boyfriend. We’d been together several years and we combined some of our finances to pay the rent as well as other bills. However, we maintained separate bank accounts and still supported ourselves, for the most part.

That was, until his older car broke down and he needed a new one. His car being out of service hindered me quite a bit – I worked full time and commuted to college, so sharing my car was difficult. So, he went to see about buying something new and I went along with him.

Of course, his credit wasn’t approved for the car and he asked if I’d consider cosigning. Without thinking, I did it. Two years later, after he failed to make payments, the car was repossessed and it remained on my credit for several years. It made it hard for me to get a car on my own and even made it difficult to get approved for housing.

Never again! It still haunts me.

Paying For My Books On Credit

Another past financial decision that I’m occasionally reminded of is applying for an Amazon Credit Card in college. It was a horrible idea. I bought all of my school books on credit through Amazon, but not only that. I was buying anything and everything I could with that credit card. I maxed it out and neglected to pay it on time.

Eventually, my mom helped me pay it off, even though the account was closed. I think about how much debt I was happy to rack up at that time and it’s insane.

Ignoring Bills Until They Go To Collections

At one time, I used to ignore bills that I couldn’t afford and just let them go to collections. It got so bad that, at one time, I had more than $5,000 hanging out in collections. Crazy, right?

Now, I’ve changed a lot of my own personal finance habits to make sure none of these things happen ever again, but…

They still do keep me up at night sometimes.

What are some of your financial horror stories? Share them in the comments below!

Read More

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• Household Debt Is At An All-Time High In The U.S.: What You Can Do To Avoid It
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What happens to my credit score when I pay off all my debt?

This question came up in the Our Debt Freedom Family Facebook group recently, and I know a lot of people have the same question when getting out of debt.

So in this article we’re going to be answering the following question:

“How does being debt free affect your credit? We’ll be paying off our debt soon. When we do, we’ll keep our credit cards open, but what will my credit score look like when all the other loans are closed?”

A similar question was asked last year about how your score is affected when you close out one of your old credit cards. I wrote an article in response, and in that article, I went into great detail about how your credit score is calculated and how closing out the card affects your score.

To summarize, the most commonly used credit score is calculated using software created by the Fair Isaac Corporation, also known as FICO. Your FICO® score is determined and weighted by the following five factors:

• Payment history — approximately 35%
• Amounts owed — approximately 30%
• Length of credit history — approximately 15%
• New credit — approximately 10%
• Types of credit in use — approximately 10%

If you close out all of your cards, pay off all of your loans, and never use credit again, eventually, the reporting agencies won’t be able to provide a score for you.

However, if you leave your cards open and use them once in awhile and keep them paid off, your credit score is likely to be very high.

In fact, I recently interviewed Christine Odle who paid off $500,000 worth of debt (house and everything) since 2009. She said that she has one credit card that she pays off several times each month, and her score is over 800.

My husband and I also have one credit card that we use and pay off each month (in addition to our mortgage) and our credit scores are over 800, as well. We’ve definitely seen our credit scores increase as our debt total has decreased over the past few years.

My question to anyone else concerned about their credit score is this —

Once you’ve paid everything off, do you plan to use credit again in the future? If not, then it probably won’t have much affect on your life. But if you do, it might be worth using a credit card and paying it off every month to keep that good payment history on your record.

Don’t Pay To Check Your Credit!!!

You used to need to pay to check your credit score.  Don’t do that!!  Instead, get your credit score for free.  Here are four completely free ways to check your credit score.

Annual Credit Report. Federal law says the three credit reporting bureaus must provide customers with a free credit report once per year. Just go to www.annualcreditreport.com and sign up.

Chase’s Credit Journey. Chase will not only provide you access to your credit score, but also gives you a set of great tools to improve your credit score.  It is 100% free to sign up.

Lexis Nexis. Another way to get a free credit report is to get your Lexis Nexis file. The report will have personal information gathered from public records and third party sources. You can get a copy of what information about you they have on file by sending in an application with your ID.

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Keep moving forward toward your goals. You really can live the life you dream about!

Have you considered adding a side hustle to help you break up with debt?

Well, in today’s video, we’ll learn how Melanie Lockert used a side hustle to break up with debt.

If you don’t know Melanie, she’s the personality behind the award-winning blog, DearDebt.com, where she chronicled her journey out of $81,000 in student loan debt. Through her blog, she inspires readers to break up with debt by writing their very own breakup letter to debt.

In 2015, Melanie (and her journey out of debt) was named one of the top five most inspiring personal finance stories of the year by Yahoo! Finance. She currently works as a freelance writer and event planner. Melanie and her work have appeared in Business Insider, The Huffington Post, Yahoo! Finance, INC, and more.

After graduating from college with $23,000 in student loans, Melanie had the opportunity to attend her dream school, NYU, to earn her master’s degree. There, she incurred $58,000 more in student loans for a total of $81,000.

Upon struggling to find a stable, decent-paying job after graduating from NYU, Melanie made some extreme changes in her life to pay off her student loans. In December 2015, Melanie made her last payment and became 100% debt-free.

She is also the author of a brand-new book, “Dear Debt:  A Story About Breaking Up with Debt” which shares her journey and her advice for those in the process of breaking up with debt.

In the interview with Melanie, she shares:

• What drove her to rid herself of her student loans
• How she cut her expenses and started side hustling to bring in extra income
• How her side hustling has led to an unexpected career path
• Her best advice for how to find a side hustle that’s right for you, and
• What to do if you want to get out of debt but feel overwhelmed and don’t know where to start

Melanie has an inspiring story that I think anyone struggling with debt needs to hear, and she shares it all in this interview. So here is my interview with Melanie Lockert from deardebt.com. Enjoy!

Thanks again to Melanie for sharing the good, the bad, and the ugly about getting out of debt with us!

[bctt tweet=”How a side hustle helped Melanie Lockert (@DearDebtBlog) break up with debt” username=”MonicaRLouie”]

I hope you pick up her book, “Dear Debt:  A Story About Breaking Up with Debt.” I know it will help you break up with debt once and for all.

I encourage you to check out Melanie’s blog at DearDebt.com and consider writing your own Dear Debt letter to break up with debt.

For others that have got out of debt check out these articles.

How Alice and Scott Paid Off $200,000 of Student Loans in Less Than 7 Years
From Credit Card Debt to Loving Her Money with Sarah Li Cain
How Lauren Greutman, The Recovering Spender, Paid Off $40,000 of Debt

Now I’d love to hear about you!

What did you learn from Melanie’s story? Have you started a side hustle yet so you can break up with debt? Please share in the comments below.

Have you joined our free community yet?

Join me in our private Facebook group called Your Debt Freedom Family, where we’ve got an awesome community of people who are breaking up with debt so they can break free and live life on their terms.

Click here to join the fun!

I’d love to see you there!

Keep moving forward toward your goals. You really can live the life you dream about!

If you’ve been keeping up with us recently, you know we’ve had some unexpected expenses, including my being in an upcoming wedding this weekend. We haven’t made any huge progress where our debt freedom is concerned, but we are looking into things that may help us in the near future.

Our Update For October

The last detailed update we provided on the blog was in August and we were completely stalled. We have made some progress since then, but not a ton. In August, the numbers were as follows…

• My Car Amount Owed: $21,333
• Drew’s Car Amount Owed: $0
• Credit Card Total For Both: $483
• Student Loans (Mine): $24,002
• Matco/Snap-On: $7,543
• Amount in Collections: $679

About two months later, we haven’t seen a whole lot of progress. Here are the updated numbers…

• My Car Amount Owed: $21,302
• Credit Card Total For Both: $502 (interest is a KILLER, folks)
• Student Loans: $24,184 (I had this pushed off until the beginning of the year because my husband has been out of work)
• Matco/Snap-On: $7,449
• Amount in Collections: $679

If you do the math, you’ll see our overall debt has actually increased to $54,116 from $54,040. Unfortunately, this is due to interest rates and, where my student loan payments are concerned, deferring payments.

Despite us still being stalled in many ways, we’ve both been looking for ways to increase our earnings. As you know, my husband was out of work for a bit. He has gotten more steady work and is beginning to get paid regularly again. I was also lucky enough to score an Instagram influencer gig that will bring in an extra $1,200 later this month. That will all go towards paying off some kind of debt.

IRS Tax Debt

One of the biggest things weighing us down currently is my payment arrangement with the IRS. Because I largely freelance for work, no taxes are withheld and I fell behind . Additionally, I filed for an extension, which is due later this month. This will only add to my IRS bill.

That is SUPER stressful. Right now, I am paying about $129 per month to the IRS. It will increase slightly once I file. I’ve been looking into tax forgiveness programs that may be able to assist us, especially since my husband has been out of work so much within the past couple of years.

Total tax debt forgiveness is a myth, but there are a few options you may want to consider if you’re in a similar situation.

1. Innocent Spouse – This can give you the ability to claim deniability if your spouse owes a lot of money. It will get you off the hook for the tax bill, but your spouse will still need to pay. This program isn’t for forgiveness but helps ensure the person responsible is the one being billed.
2. Offer in Compromise (OIC) – An OIC agreement with the IRS can help you decrease the amount you owe significantly. However, not many people qualify for this type of program. Less than 25 percent of those who apply for OIC each year are approved. You also have to provide very detailed information about your finances, which can backfire on you with the IRS.
3. Currently Not Collectible (CNC) – If you really can’t pay anything back at the moment, you can try to request a CNC. To qualify for this program, you will need to be in a situation that would put you in financial hardship if you made the payments. The IRS will revisit your status after some time though, so you may end up having to pay down the road if you become able. Your tax debt “lives” for 10 years.

I’m not moving forward with any of these options yet. I will be consulting a tax professional, however. My husband and I are hopeful we will be able to get some help from a client of his for next to nothing. He has experience getting people off the hook for their tax bills (or finding more write-offs to make the amount owed much less).

For now, we will continue to have our sites focused on becoming debt-free, including this looming tax debt. Readers, where are you in your debt-free journey? I’d love to hear from you in the comments!

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