Making Early Retirement Happen When You Have Kids

The following is a post by MPFJ staff writer, Kevin Mercadante, who is a freelance professional personal finance blogger for hire, and the owner of his own personal finance blog, OutOfYourRut.com. He has backgrounds in both accounting and the mortgage industry.

Nearly everyone it seems is holding out for early retirement. But what happens when you have kids? It’s not impossible, but it is admittedly more difficult. You have to rearrange your finances and your timing to accommodate the raising of children. It can be done, but it requires more creativity.

Think of Your Kids (and Grandkids) as Motivation for Early Retirement

While most people focus on the financial costs of having children, the flipside is that you think of them as being one of your primary motivations for early retirement. If it will be possible for you to retire while your kids are still fairly young, that will give you more time to be with them, and to raise them the way you want.

It will also eliminate the career stress and the financial uncertainty that can go with the dual obligations of child rearing and having a career.

And even if you are unable to retire when your own children are young, your Plan B can be to retire early and spend more time with your grandchildren.

You May Have to Adjust Your Independence Date

It probably won’t be possible to early retire on your own specific timetable. You’ll have to work your independence date around your kids.

Much will depend upon how far along you are in the planning process, but you may have the need either to accelerate early retirement to be home with your children, or to delay it until they are emancipated.

Flexibility will be a critical part of your early retirement planning strategy when you have kids.

You Know Those Kids Who Seem to Have Everything? Yours Won’t

In every neighborhood (or classroom or extended family) there’s always that one kid, or family of kids, who seem to have everything. It might be the latest and the best bicycle, motorized Kiddy car, cell phone, laptop, sporting gear or clothing. Such a child or group of children have a way of “setting the standard” for just about every other kid in the group.

That’s a game that you will not be able to play with your own children. It’s an arms race for the best stuff, and it’s a very expensive lifestyle. If you plan to retire early, you’ll have to prepare your children to live more conservatively.

That’s not being selfish on your part either. A conservative outlook when it comes to finances is a life strategy that will benefit your kids throughout their own lives.

Preparing for College on the Cheap

It can cost well over $100,000 to send a child to a state college, and more than $200,000 for a private college. Those are options you may have to scale back on.

You might want to start your kids at a community college for the first two years. From there, you might encourage attendance at a state school to finish their undergraduate degree.

You should also encourage any efforts to get scholarships or grants. And even though it’s fairly unusual these days, there’s nothing wrong with having your kids participate in providing at least some of the cost for their own education.

Your Time WILL be More Limited

This is a limitation that there is no skirting around. While a childless person may be able work two or three jobs, 100 hours per week, your life will require more balance.

Though you may have to work more than the average person does, such as a full-time job plus a side business, you will have to allocate plenty of time for your kids.

No matter how important the goal of early retirement is, this is a challenge that you will have to meet successfully. The time that you don’t spend with your kids when they are young will be gone forever!

This will perhaps be the biggest challenge you will face as a parent preparing for early retirement. And there’s no sugarcoating the fact that you will have to make trade-offs. Only you can decide what the specific balance between work and child rearing will be.

Think carefully, because there’s no do-over when it comes to kids.

And So Will How Much Money You Have For Savings and Investing

There’s also no debating that children will leave less money available for savings and investment. Children mean higher medical costs, disposable diapers, a succession of clothing and toys, afterschool programs, tutoring, day care and higher-than-you-think costs for participating in high school sports.

All of that will be less money available for savings and investing. But you must view the money that you will spend on your kids as an investment in their future. That’s no less an investment than preparing for your own retirement.

Do As Much As You Can Before Becoming a Parent

If you don’t already have children, but you want to, you will help your own cause considerably if you can do as much retirement preparation in advance as possible.

This will actually have to advantages:

1. The more that you can do before you have kids, the more likely it is that you will retire early in their lives and have more time with them, and
2. The more that you can do in advance will mean less pressure later on, enabling you to spend more stress-free time with your kids, while still being on track for early retirement

Advance preparation will include minimizing debt, and frontloading as much retirement and investment savings as possible before your kids are born.

This will not only give you a head start, but it will also set you up in the right life patterns. This will be extremely important once your first child arrives. Having children very much puts you in a position where you are dealing with the unexpected. If you already have your early retirement plans in a row before they are born, you can continue to make progress even as you deal with the uncertainties that children bring.

A Scaled Back Version of Early Retirement is OK

If in spite of your best efforts, you are unable to reach your early retirement age goal as a result of having children, you can simply regroup.

No major financial milestones are ever achieved without building a healthy dose of flexibility into the plan. If you have to delay your early retirement by five years, that will be a small price for properly raising your children.

And even if you are forced to accept an early semi-retirement – in which you mostly scale-back on your career in favor of more time off – you’ll still be better off than you would have been if you never prepared for early retirement.

Early retirement is a worthwhile goal, but it should never be seen as more important than raising your children. It takes some real talent to balance the twin goals of child rearing and early retirement. But if you can, you’ll be well prepared for whatever life throws at you.

How about you all?  Have you or anyone you know planned an early retirement successfully?  What roadblocks have you encountered along the way? Do you have other strategies for planning for an early retirement not listed above?

Share your experiences by commenting below!

***Photo courtesy https://www.flickr.com/photos/8058853@N06/2289540488/

4 Ways to Save Money on Moving

The following post is by MPFJ staff writer, Laurie Blank.  Laurie is a wife, mother to 4 and homesteader who blogs about personal finance, self-sufficiency and life in general over at The Frugal Farmer. Part witty, part introspective and part silly, her goal in blogging is to help others find their way to financial freedom and to a simpler, more peaceful life

Without proper planning – and even with proper planning – moving can cost a LOT of money. Between the prep work beforehand, real estate fees, moving expenses and getting adjusted in your new home, the costs can seem endless. Here are some ideas on how you can save money as you prepare to move from one home to another.

How to Save on Getting Your Current House Ready for the Market

A move to a new home often means you have to sell your current home. It’s important to maximize profits on the sale of your current home without spending a bunch of money you don’t need to spend. In order to make your house shine and save money in the process, try these tips.

• Stage your home yourself instead of hiring out. Most of home staging involves making the home look uncluttered and inviting. Check online sites such as Pinterest for home staging tips and do the work of staging yourself.
• Deep clean and organize your home. A clean, organized home where every corner has been decluttered will help the home sell for top dollar and will also cut down on moving expenses because there will be less stuff to move to your new home.
• Make inexpensive cosmetic repairs. This is another tip that will help you get top dollar for your current home. If you’ve got broken blinds, shabby curtains or ultra-worn furniture, seek out inexpensive resources for replacing or repairing them. A fresh coat of paint will do wonders. Freshly cleaned carpets (instead of replacing carpet) will make your home shine.

How to Save on Real Estate Transactions

Real estate transactions such as realtor fees and taxes can also add up when it is time to move. Try these tips for saving on selling your current home and buying your new home.

• Negotiate your realtor’s commission fee. While the regular fee for most realtors is seven percent, it’s not unrealistic to talk a realtor down to six percent or even lower if you have a good reason. What justifies a good reason for a realtor to lower his or her fee? A turnkey property, a higher end property or a home in a valuable neighborhood. The easier your home is to sell, the more likely a realtor will consider lowering their fees.
• Ask the seller of your home to pay some or all of your closing costs for your new home. By negotiating some seller paid closing costs, you can save several thousand dollars.

How to Save on the Actual Move

This is where things can get expensive. Moving companies often charge several thousand dollars to pack up and move a family from one place to the next. Here are some tips for saving.

• If you’re moving locally, consider doing the packing and moving yourself, either by asking for help from family and friends or by renting a large moving truck.
• Instead of paying for boxes, head to local grocery and department stores and ask if they have any boxes they’d like you to take off their hands. Many stores will gladly give you the boxes their inventory comes in for moving purposes.
• If you’re moving out of town, get estimates and references from at least three different moving companies, as prices and services can vary wildly.
• If you have to hire a moving company, ask if they’ll give a discount if you pack up your own belongings instead of having the moving company do it.

How to Save as You Get Settled in Your New Home

There are expenses to every part of moving, including when you’re settling into your new home. Here are some tips for saving money as you settle in.

• Get more than one estimate for local utility, cable, satellite and Internet provider companies before you choose your providers. Ask for new customer discounts such as the first three months free or a waived installation fee.
• Do any cleaning and painting yourself if possible, as opposed to hiring out.
• Know beforehand what other items you’ll need to settle into your new home, and work to buy them at reasonable prices. When we moved from the city to the country, we found out quickly that we’d need a chainsaw for tree limbs that fell during storms and a decent snow plow for our long driveway. Because we hadn’t foreseen those purchases beforehand and had to make them quickly, we spent more than we needed to.

Moving is listed as one of the top stressful times in a person’s life, but with some forethought and planning, you can help make your move less stressful and less expensive as well.

How about you all? What are your tips for saving money while moving? How do you keep moving less stressful?

Share your experiences by commenting below!

***Photo courtesy https://www.flickr.com/photos/113026679@N03/14453910557/

What Should You Expect In Retirement?

The following post is by MPFJ staff writer, Marie. You can read more of Marie’s articles over at her own blog, Family Money Values. Enjoy! 

Although most of us are extremely busy leading our lives going about our daily routines, at some point, you might take a moment to wonder what to expect if and when you do ‘retire’.

Are there patterns that most people follow during their retirement years?  Are there similarities in things such as what we spend money on, how much we travel, amount of time spent with family, part time jobs or volunteerism activities.  Are there patterns that occur at different points in retirement – at different ages?

I’ve been retired now (or semi retired) since spring 2010.  I’ve observed some changes in the way I deal with retirement and have noticed changes in other retired folks that I know as well.

The Planning Years

Before you actually retire, you are probably spending at least some time thinking about finances after you leave the workforce.  How much do you need to save to quit work, how much can you spend after you retire, will your taxes be less (unlikely) or more when you do retire – all these can be ongoing concerns from the time you first start imagining a retirement.

Closer to the actual retirement date, you may spend time doing some analysis of current expenses to compare that to the income you anticipate drawing during retirement.  Of course you also need to add on any additional expenses that you may anticipate during retirement – moving, travel, health spending, new hobbies, etc.

I spent quite a bit of time in 2009 pouring through checkbooks and building spreadsheets of all our expenses for the past few years – then classifying them as required vs discretionary – to see where we would stand.

The Early Years

The early years of your retirement may diverge wildly from what other retirees do.

If you are healthy, active and well funded, these years may include multiple vacations, and/or more spending on entertainment such as concerts, tours, theaters and restaurants.  Some decide to pursue a dream – such as living in another part of the country or world, or selling the house and buying an RV, or pursuing more education or training.

You may decide to try to spend more time with family members, perhaps assisting with the care of your grandchildren or visiting out of town relatives or simply doing more with your spouse.

You probably are making adjustments to the absence of work related activities, associates and recognition.  You may be making related adjustments to the constant presence of a spouse – finding balance between the need for your own time and the time you share.

Most start these years with eager anticipation and many change lifestyles.  I dedicated time to learning how to build my website (FamilyMoneyValues.com) and finally achieving a life long desire to write and publish.  My spouse, after spending 30 years encased in a cubicle, has spent his retirement so far joyously working outside on our 6 acres.  A couple I know downsized from a luxury home to a luxury condo – not for the savings, but for the freedom from some of the homeowner chores.  They became snowbirds – relocating from the Midwest to the Southwest during the winter.  An aunt and uncle sold their subdivision home and went back to farm living – complete with vegetable gardens, fruit trees, cattle and cats.

Cautious retirees carefully track spending and income in their early years, until they are comfortable that their new levels of income will support their new lifestyles.  It can be difficult to adjust to varying amounts of income as opposed to a regular paycheck.  It is hard to anticipate what you can spend or what you will have to put aside for taxes when a good part of your income is paid out once a year at year end in the form of interest and dividends.

The Middle Years

After the initial thrill of not having to go to work every day wears off, retirees typically settle into a new pattern.  Spouses generally will have worked out new routines of living together and may have had an opportunity to deepen their understanding of each other (or on the other end of the spectrum, discover they are really incompatible).

On the whole, more than half of surveyed retirees report being well satisfied with life.

However, questions of self-worth may start to arise during these years, perhaps causing an interest in finding and supporting a cause – leading to volunteerism.  According to the National Institute of Aging’s Health and Retirement Study:

“People ages 60 to 69 at the time were most likely to have engaged in volunteer service, with one in three people in that age group having done so.”

To counteract feelings of worthlessness, some decide to take a more active role with grandchildren, or find a way to mentor others in an area of expertise.

Health issues may begin to plague us during our middle retirement years.    At a minimum, incidents of arthritis, hypertension and suspicion of cognitive impairment (you know – those ‘senior moments’) increase.

Some may find themselves slowing down, becoming less physically active due to depression, flagging interest in formerly enjoyable endeavors or health issues.

Loss of physical and mental ability can be disconcerting to us as we move through retirement stages.  Adjusting to fading eyesight and reduced hearing as well as increased difficulty in moving through the day can take awhile.  These signs of our impending mortality can make a person seek answers to the age old question of what happens when I die, or what purpose do I have on Earth.

The Later Years

As we age through retirement, we encounter more limitations and health restrictions to our activities.  However, in spite of that most of us continue to own our own homes.  The Health and Retirement Survey is finding that even among those 85 and older, more than half of the study participants (which were selected to be a broad spectrum of the American population) live in their own home.

Spending on health care typically rises during these years – whether from increased out of pocket prescription and doctor costs; more frequent hospitalization; or from the need for increasing daily activity care.

That Aunt and Uncle I mentioned above that moved to back to the farm in their early retirement years later moved (in their 80’s) to a smaller home across the country to get closer to a daughter and now have settled into a graduated retirement living center.  They are now in their 90’s and are in an independent living unit, but receive house cleaning, maintenance and cooking services.  They are set to be able to receive more care from the facility if needed as their bodies continue to fail.  For now, they still enjoy the center’s activities, their church and weekly visits to the daughter’s house – and both still drive.

A 93 year old mother-in-law, was moved to a senior living center closer to family.  Although still mobile and alert, her failing eyes (macro degeneration) and unreliable knees cause multiple doctor visits a month.  A decade ago, she gave up driving due to her eyes, so one of the kids escorts her around town.  She has a one bedroom apartment in a multistory center and gets maid, laundry and meals and maintenance as part of her rent.  She is active attending family events her many children, grandchildren and great-grandchildren generate, as well as participating in activities put on by the senior living center – such as morning exercise.

How about you all? What have you observed about the patterns of retiree’s?

Share your experiences by commenting below!

***Photo courtesy https://www.flickr.com/photos/120360673@N04/13856204644/

Buying a Rental Property for Cash Flow

The following post is by MPFJ staff writer, Jeff. Jeff has been writing online about finance related issues since 2009, and after a lot of soul searching in 2015 has crystallized his goal of financial independence and blogs about his journey to freedom at zerotofi.co

Recently after a few life changes, I started making changes to my investment strategy. I have gone head first into the rental property market, and have closed on my first 4 unit building. I was able to learn a ton during this process, and would like to show you how to properly analyze a rental property to make sure that you don’t end up losing your shirt. Some people think it’s just as easy as collecting rent and paying the mortgage (not likely) and some think its going to be awful with maintenance issues and other problems left, right and center and you’ll lose your shirt (also, possible, but not highly likely). When looking into a rental property, here are a few things you need to account for to determine cash flow.

Lets assume you have a rental property that is a single family house, renting for 1,500 per month. Here is how you should analyze to make sure you’re not going to get caught with your pants down.

Vacancy Reserves

The unit isn’t going to have people in it the day after the prior group moved out, is it? Most likely not. It may take a few weeks or a month or 2 to fill it. You’ll need to make sure you have reserves for this. Many investors use 7-10% of the rental price. Since I like easy math, we will use 10%, for a final number of 150/mo for vacancies.

Capital Expenses Reserves

Shortened to CapEx frequently, this is a reserve set aside for big ticket replacements. A new fence, a new roof, new furnace, new water heater, etc. 7-10% of the rental price is common here as well. Since we like our math easy, we will use 10%, for 150/mo.

Property Management

You may self manage because you live at the place early on, but will that always be the case? You’ll want to build in for property management as well, when your life changes. 10% (again) is common here, $150.

Since this is a single family home, the tenants will take care of the water, sewer, and electric and gas bills. Any other things (such as upkeep, snow shoveling, etc) can either be done by the tenants or the property manager.

If you’re just looking to get started with rental real estate, don’t just think that if you earn more in rent than the mortgage, taxes and interest (Sometimes abbreviated as PITI) that you’ve got a good investment. The first blown furnace you’ve got will cause you major problems and really hamper whatever cashflow you may have.

How about you all? Are you interested or are you currently investing in real estate?

Share your experiences by commenting below!

***Photo courtesy https://www.flickr.com/photos/blapp/5802137177/

4 Factors to Consider When Buying a Central Air Conditioning Unit

The following post is by MPFJ staff writer, Melissa Batai.  Melissa is a freelance writer who covers topics ranging from personal finance to business to organics to food.  She blogs at Mom’s Plans where she shares her family’s journey to healthier living and paying down debt.

When we bought our house two years ago, we knew that the air conditioner was as old as the house, 17 years, and would need to be replaced in the near future.  Just a few weeks ago, our air conditioner started making a terrible ruckus and then stopped working all together.  Did I mention that we live in Arizona, and the temperature was 111 degrees that day?

It took four days and more money than I like to part with to get a new air conditioner.  Thanks to our own research and consulting with several air conditioning companies, we took a crash course on choosing the right air conditioner for our house and budget.  Here’s what we learned:

There Is a Limit to SEER Savings

How efficient an air conditioner unit is judged to be is measured in SEER, which stands for Seasonal Energy Efficiency Ratio.  Air conditioners on the market today typically range from 14 to 24 SEER.  Our 19 year old air conditioner that was original to the house had a 10 SEER, which isn’t even available on the market anymore because every new air conditioner is much more efficient now.

The higher the SEER rating, the higher the price you pay initially for the unit.  However, after a certain point, the models are so efficient that you don’t recoup the savings for the initial price of the unit in energy saved.  Rarely will buying the highest SEER save you the most money; you have to find the perfect point for your budget and your climate.

In the end, we chose to go with a 16 SEER unit.  That seemed to be our perfect point between money paid upfront and recouped costs in energy efficiency over the life of the unit, as it is for many people.  “According to Ed Purvis, vice president of the heating, ventilation, and air conditioning company Emerson Climate Technologies, a unit with a SEER rating of 16 or more could save you about $415 a year (compared with an older, low-efficiency model)” (US News).

Your air conditioner sales person should have a chart to show you initial cost of the unit versus savings over the years based on SEER rating, but if you want to do research first yourself, this SEER calculator is fun to play with and very informative.

Choose the Right Tonnage

Air conditioner units are measured in tonnage, i.e., 3-ton, 4-ton, 5-ton, etc.  The tonnage does not refer to the unit’s weight but rather it is “a measure of an air conditioner’s ability to cool.  One ton is the ability of your air conditioner to cool 12,000 BTUs (British Thermal Unit) in an hour.  Likewise, a “2-ton central air conditioner is able to cool 24,000 BTUs per hour” (asm-air).  BTU “is the amount of energy required to heat or cool one pound of water by one degree Fahrenheit.  So a 1-ton air conditioner can cool 12,000 pounds of water by one degree every hour” (asm-air).

What size unit you need depends on many factors: where you live geographically in the country, the square footage of your home, and the type of air conditioner that you’re installing, just to name a few factors.

Getting the right tonnage is important.  If you choose an air conditioner that has too much tonnage for your home, you will likely suffer with an air conditioner that quickly cools your home but then turns off, allowing the temperature inside to rise again.  This air conditioner will turn off and on all day long, which will not be good for your electric bill.

If the tonnage is too small, the air conditioner will likely run constantly trying to cool your home, which is also not good for your electric bill.

Our old air conditioner was 5-ton.  When we got a quote from one company, they also suggested a new 5-ton air conditioner.  However, the company that we ultimately went with measured how much insulation our home has and also plugged into a computer the layout of our home, where the evening sun hits and the square footage to determine that we actually only needed a 3-ton unit, which we went with.

This chart, which gives a rough gauge of the tonnage you will need based on the geographical location of your home and the square footage, also placed our needs as 3-ton.

Consider a Variable Speed Fan

There are two types of air conditioners—standard and variable speed.  The standard air conditioner is the one that many of us are familiar with.  When it turns on, cool air comes out full blast, and when it turns off, nothing comes out.  Throughout the day, the air conditioner cycles on and off as the temperature in your house rises and cools.

An air conditioner with a variable speed fan, by contrast, comes on full force when the temperature rises, but then, when the temperature cools to the desired level, the fan turns down to a lower setting and continues to circulate air through your duct work and your home.  This type of air conditioner “saves energy by operating at lower speeds, but energy savings also results from avoiding repeated stops and starts, a process that requires a large amount of electricity” (Angie’s List).

The Bottom Line Isn’t Everything

Buying a brand new air conditioner unit can certainly cause sticker shock.  For many, the tendency maybe to go with the least initial damage and purchase the air conditioner that is the cheapest with a single fan and a lower SEER rating.  However, remember that central air conditioning units usually last 10 to 20 years, so that gives you plenty of time to recoup your initial cost in lifetime energy savings.

Consider that “air conditioners with a variable speed handler generally cost about 30 percent more than standard units, according to Chris Cunningham, owner of Service Plus Heating Cooling Plumbing in Fishers, Indiana.  But he calls the added expense a worthwhile investment because of the energy savings, the lessened wear and tear on the system, and especially the comfort increase.  ‘It runs longer with lower output, gets out the humidity and balances the house’s environment,’ he says. ‘That’s worth every bit of the additional third of the cost’” (Angie’s List).

When deciding between air conditioning companies, make sure to check online reviews from a variety of sources.  In addition, consider what other perks come with the install.  For instance, the company that we went with will send a service technician out for free twice a year to service our unit for the next two years.  In the spring, they’ll service the air conditioning unit, and in the fall, they’ll service the heater.  In addition, the air conditioner comes with a 10 year warranty on parts and labor, so that will save us in the years to come.

In the end, we decided to go with a 3-ton, 16 SEER air conditioner with a variable speed fan.  Our old unit had NOT been energy efficient.  Thanks to this new unit, we’re looking to see significant savings on our electric bill.  Considering that we live in Arizona and often run an air conditioner eight months of the year, energy efficiency was as important to us as the initial cost.  (I’m not going to lie, though, paying for the unit upfront was painful!)

How about you all? Have you recently replaced a central air conditioner unit, or are you planning to in the near future?  If so, what other factors are you considering?

Share your experiences by commenting below!

***Photo courtesy http://www.idpinthat.com/edit/445

Are Conferences Really Worth the Price?

The following post is by MPFJ staff writer, Chonce. You can read more articles by Chonce over at her personal blog, My Debt Epiphany. Enjoy! 

Attending a conference is a great way to network and connect with others, learn new skills and strategies, and gain tons of inspiration. There are probably thousands of conferences dedicated to each specific industry that occur all over the country each year.

Whether you are an entrepreneur, retail manager, gamer, or finance enthusiast, odds are there’s a conference out there for you.

Conferences are often referred to as in investment due to how expensive they can be. Most conferences are between 2-5 days and tickets can range anywhere from $250-$1000+. The average conference attendee who is paying out of pocket can expect to spend at least $1000 for the entire experience in most cases when you consider the cost of your ticket, travel, your hotel stay, food and extra non-including activities and so on.

Now you may be wondering, who can afford to spend that much money on a conference?

Americans spend that type of money on vacations, dining out annually, clothes, etc. very easily. Investing that money in an educational conference instead might be a better way to spend your money, only if you see the return on your investment.

Here are a few ways to determine whether or not a conference is really worth the price.

Determine How Valuable the Education Is

Will you be receiving an education worth $1000+ by attending a particular conference? I know this is hard to determine if you’ve never attended the conference. However, you can do some research by reading reviews from past attendees and checking out the main conference website to look at the agenda for each day.

If you are considering attending a conference in the first place, you must have a main goal in mind that you would like to achieve as a result of the experience. Look at the titles of the sessions along with the bio for each presenter to see if you are interested in the presentation topics and if you will take anything away from it. What skills and strategies do you hope to learn and will they help you save time and money? What issues are you having that could possibly be solved during one of the sessions?

It’s best to organize your schedule before heading to a conference and map out which events and presentations you will attend. You should even write out a series of questions.

What Kind of Networking Opportunities Does the Conference Provide?

Networking opportunities are a given at conferences. When you put a ton of people who have similar interests in the same area together for a few days, there are bound to be active conversations in the hallway, during breakfast, and in between sessions to say the least.

You will definitely meet new people and receive tons of business cards for follow ups which are good things if you’re looking to expand your network.

If the conference you are considering attending offers additional, more specific network opportunities, that is an added bonus. For example, last year I attended FinCon which is an annual financial bloggers’ conference. It’s not just for financial bloggers, though. Podcasters, financial advisors, fin-tech businesses and other companies also attend.

What I loved about FinCon last year was the private networking session they have for freelance writers who were actively looking for work. Before the conference, personal writers had a chance to reach out to blogs and websites that were hiring to set up a time to talk during the conference.

There were also opportunities for people who didn’t set up formal meetings to walk around the room and introduce themselves to potential clients. This event was right up my alley since I was looking for additional clients and I gained a ton of leads that day as this event.

Priceless networking opportunities like these are so worth it.

What Types of Sponsors of Brands Will be There?

Conferences have several sponsors and a lot of them may try to sell you something or get you to sign up for something at the conference. However, some brands and sponsors may also be looking for partnerships as well.

If you own a blog, website, or business, attending a conference can put you face-to-face with popular national brands so you can connect with them on a personal level and secure some new opportunities for yourself.

During FinCon last year, I got the chance to sit down with the team at Credit Karma and share my money story on camera. Months later, they reached out to me with an interest in getting permission to use my story either on their site or for their training materials. When I agreed, they sent me a $500 gift card for compensation – more than the price of my conference ticket itself.

Will There Be Any Freebies or Additional Features and Perks Included?

If the owner or company that is hosting the conference has some additional freebies and offers in store for you, that is always a good thing. Some conferences offer a discount on your hotel room rate, free swag from sponsors, free or discounted entry to events that occur outside the normal conference schedule, a few meals throughout the day and so on.

If a conference doesn’t offer any of these things, you don’t have to write the opportunity off completely, but be cautious of conferences where you are expected to pay for every little thing out of pocket. Freebies and perks can go a long way in terms of lowering your costs and making a conference worth it in terms of your budget in ROI.

Additional Ways to Lower the Cost of a Conference

Speaking of lowering the costs of attending a conference, here are some additional things you can do to make sure you are getting the most out of the experience and not going too overboard on your budget.

Attend a conference in a nearby city first – This may be a good option if you are on the fence about paying for an entire conference experience. Back when I was trying to become a professional resume writer, the National Resume Writer’s Association was hosting their annual conference in Chicago which was only about 45 minutes away from me. I practically couldn’t resist attending because I didn’t have to worry about booking a flight or staying in a pricey hotel since I could stay with my sister who lived in Chicago for the duration of the event.

Order Your Ticket Early – Most conferences have early-bird rates that are extremely discounted so if you know you want to attend a conference, you can probably purchase your ticket for cheap at least a year out in advance.

Consider a Roommate – Even if the conference organizer negotiates a lower hotel room rate for attendees, staying in a nice hotel can still be pretty expensive. For FinCon I got a roommate and it cut the price of the hotel room for 4 days from $650 to only about $325 plus tax. Ask the organizers of the conference if they have any groups for attendees to communicate before the event and secure a roommate.

Cash in Credit Card Rewards for Your Flight – If you have credit card rewards or cash back, attending a conference would be a great time to cash those rewards in to save money on your flight.

All in all, you must keep all these factors in mind and weigh the benefits in comparison to the costs of the entire experience to determine whether it will be worthwhile for you.

How about you all? Have you ever attended a conference? Do you think conferences are worth the price?

Share your experiences by commenting below!

****Photo courtesy https://www.flickr.com/photos/dionhinchcliffe/3020387867/

Why Universal Life Insurance Premiums Are Rapidly Rising

The following is a post by MPFJ staff writer, Toi Williams, who is a professional personal finance blogger of American Consumer News. She has backgrounds in personal finance, sales, and real estate.

Many people holding universal life insurance policies received an unpleasant surprise this year, as the premiums for many of these policies skyrocketed. Some consumers who purchased their policies decades ago saw their premiums increase by 20 – 40 percent, leaving them with few options other than to pay the higher cost or let their insurance policy lapse. Policyholders are understandably frustrated, with some taking to the courts to try to halt or limit the premium increases.

So why are the premiums for universal life insurance policies rising so quickly?

The main reason for the dramatic premium increases is the long-running, low-interest rate environment. Low interest rates lower the income insurers make from high-grade corporate bonds and U.S. Treasuries, which insurers hold to maturity. This income pays for most of the cost of insurance. As life insurers’ assumptions about interest rates are falling short of economic reality, it becomes harder for them to pay the benefits for the policies. Insurers have few options to deal with the shortfall other than hiking the amount the policyholder pays into their policies via premiums.

Universal life insurance policies are already more expensive than term life insurance policies because they typically last for the policyholder’s life, guaranteeing a death benefit regardless of when the policyholder dies. These types of insurance policies also have a savings component that accrues value over time, making them attractive for use in saving for retirement. The policies were widely popular in the 1980s and 1990s, when interest rates were higher. In the early 1980s, when interest rates rose to about 15 percent, universal life insurance policies accounted for a quarter of all life insurance sold to individuals.

Premiums for universal life insurance policies are based on multiple factors, including interest, mortality, taxes and expenses associated with the policy. Because of the numerous variables that go into calculating the premium price, the premiums can vary over the life of the policy. Many of the customers affected by the latest rate hikes say that their monthly payments on the policies rose before, but always in relatively small increments.

Some universal life insurance policyholders who bought their policies from the Transamerica Life Insurance Company were notified last year that their rates would increase by an estimated 38 percent. Other companies, including the AXA Equitable Life Insurance Company and Voya Financial, have also been notifying customers of large rate increases for universal life policies. The National Association of Insurance Commissioners is now examining whether the increases were justified.

What options do holders of these universal life policies have?

Universal life insurance policyholders are left with few options to cope with the premium increases. If policyholders don’t pay the higher rate imposed by their insurer, the higher deduction amount will eventually deplete the policy’s cash value account, and the policy will lapse. For policy holders that are near retirement, finding affordable replacement policies would be difficult now because they are much older.

Holders of universal life insurance policies could reduce the death benefit of their policy, increasing their period of coverage in return for less of a payout. Policyholders also have the option to surrender the policies and take whatever cash value remains. However, taxes would probably be owed on the cash, reducing the amount the policyholder receives even further. Roughly a decade of low-interest rates has already made it hard for savers trying to preserve their nest eggs in low-risk fixed-income investments.

In theory, premiums could drop if a sharp and sustained increase in interest rates occurs. However, there is no indication from the Federal Reserve, which sets benchmark interest rates, that rates will be rising anytime soon. The agency raised interest rates by a modest amount last December after nearly a decade of historic lows, with further rate increases expected throughout 2016. Subsequent economic headwinds have delayed those plans for the foreseeable future.

Breaking down the Transamerica lawsuit

Angry consumers have filed a lawsuit against Transamerica over the premium increases imposed on their policies. The lawsuit, which is seeking class action status, accuses Transamerica of trying to “impermissibly shift to the policyholders its own, independent obligation to make good on the interest rate guarantees in the policies.” Plaintiffs allege that the premium hikes constitute a breach of obligations under the policies and have led to damages against contract holders.

The cost increases by Transamerica began in August 2015 on universal life insurance contracts sold in the late 1980s and early 1990s. Most of these policies guaranteed an interest rate of no less than 5.5 percent annually. The complaint says that Transamerica raised monthly charges by as much as 38 percent “to subsidize its cost of meeting its interest guarantee, to recoup past losses on the policies and on its investment portfolio, and to make the policies more profitable by inducing policy terminations by those policyholders who could not afford the increase.”

The lawsuit, filed in Los Angeles, alleges that Transamerica breached its contract and acted in bad faith. It notes that the insurer is raising its rates as the time nears when policyholders will begin collecting on the policies. Harvey Rosenfield, founder of Consumer Watchdog and one of the lawyers working on the case, said in a statement, “After taking their premiums for many years, Transamerica is attempting to dump its elderly and retired policyholders at a time in their lives when they are counting on the policies.”

A Transamerica spokesman says that the increases were permissible under the policies and that no policyholders are being charged more than the maximum rates specified in their policies. Another said the firm has communicated with policyholders about expected changes based on what it forecasts future costs to provide coverage will be. Further rate increases can be expected in the future if interest rates remain low.

How about you all? Are you familiar with or have any experience with universal life insurance or know someone involved with the Transamerica lawsuit?

Share your experiences by commenting below!

***Photo courtesy https://www.flickr.com/photos/68751915@N05/6551520247/

10 Smart but Frugal Wedding Gift Ideas

The following post is by MPFJ staff writer, Laurie Blank.  Laurie is a wife, mother to 4 and homesteader who blogs about personal finance, self-sufficiency and life in general over at The Frugal Farmer. Part witty, part introspective and part silly, her goal in blogging is to help others find their way to financial freedom and to a simpler, more peaceful life.

With wedding season in full swing, some might be a bit overwhelmed with working extra money into their budget for wedding gift expenses. Wedding gift shopping is of a whole different genre; you want to give a gift that the newlyweds will cherish forever. So, how to make that special gift mesh with a frugal budget? Here are ten ideas for frugal wedding gifts that come from the heart and will bring joy and remembrance to the wedded couple for years to come.

Personalized Cookbook

Purchase a blank cookbook and fill it with hand-written versions of your (or their) favorite recipes (if you don’t have great handwriting, print out the recipes and glue them to the book page). You can also use some pages to put photos on or to share memories you have about the couple’s pre-wedding years. Remember to leave at least half of the pages blank so that the newlyweds can add their own favorite recipes.

Themed Gift Basket

Themed gift baskets can cover so many different genres and are a joy both to give and to receive. Here are some basket ideas:

A cleaning supply basket containing:

• A brightly colored cleaning bucket
• Staple cleaning supplies such as window cleaner, toilet bowl cleaner, dish soap, hand soap, etc
• Sponges, paper towels and/or cleaning rags

A dinner basket containing:

• A box of pasta
• Your favorite sauce
• Non-refrigerated garlic or other bread
• Croutons (for a salad)
• An inexpensive bottle of wine
• Inexpensive wine glasses

A bonfire basket containing:

• Hershey’s chocolate bars
• Marshmallows
• Graham crackers
• A cozy blanket

A picnic basket containing:

• A picnic basket
• Plates, silverware and napkins for two
• A cozy blanket
• An inexpensive bottle of wine
• Wine glasses

There are a host of other gift basket ideas you can use too; just check online at sites such as Pinterest for more ideas. Wrap the baskets in clear cellophane and use a bow to add extra sparkle to the gift.

Framed Wedding Photo or Wedding Invitation

Purchase a nice but inexpensive wedding frame and use it to frame their wedding invitation or a great casual photo you have of the couple, either from their wedding reception or from another event.

Personalized Stationery

Hook the newlyweds up with a package of personalized stationery designed to fit their personalities, and add a nice but inexpensive pen/pencil set if it’s in the budget. Online sites such as Vistaprint have a host of different types of personalized stationery at affordable prices.

First Anniversary Bottle of Wine

Go to the wine store and find a nice, specialized bottle of wine – maybe something locally produced – and place it in a basket with a nice hand towel, some inexpensive wine glasses, a corkscrew and a note saying that the basket is for the celebration of their first anniversary. Wrap the basket in cellophane and a bow to keep it looking nice for the year.

Photo Scrapbook

If you have access to a dozen or so photos of the newlyweds, consider buying an inexpensive scrapbook and making a nice album for them to hold cherished memories of their life pre-wedding. Take advantage of craft store coupons when buying supplies to save even more money on this gift.

Personalized Christmas Ornament

A personalized Christmas ornament ready for their first Christmas together as a married couple is another great gift idea. Online stores, sites like Etsy and brick-and-mortar stores such as Things Remembered are great venues to find personalized ornaments.

Digital Kitchen Timer and/or Scale

These are two items that I really find helpful in our kitchen but didn’t take the time to buy until years after I was married. You can pick up a digital kitchen timer and a digital kitchen scale for less than $40 if you shop right.

Lawn Chairs and/or a Full-Sized Cooler

This is one of those gifts that your newlywed friends will likely use over and over again. An especially great gift if the couple likes to hang out in the great outdoors.

A Nice Blanket or Quilt

We received two really nice blankets from different people as wedding gifts and we still use both blankets nearly every single day after twenty years of marriage. Every time we use them, I think about the people who gave them to us with fond remembrance for this useful gift idea.

With a little thought, you can come up with a cherished wedding gift for your newlywed friends that won’t break your budget.

How about you all? What are your favorite smart but frugal wedding gift ideas?

Share your experiences by commenting below!

***Photo courtesy https://www.flickr.com/photos/43027029@N00/1078586764/

The College Talk that You Need to Keep Having Every Year

The following post is by MPFJ staff writer, Melissa Batai.  Melissa is a freelance writer who covers topics ranging from personal finance to business to organics to food.  She blogs at Mom’s Plans where she shares her family’s journey to healthier living and paying down debt.

I met with some of my friends a few nights ago.  One woman I’ll call Rose has a daughter who will be a senior in high school this year.  Rose is frustrated because her daughter has her heart set on attending one of three different colleges twelve or more hours away.

The distance away isn’t Rose’s concern.  She’s concerned that each of these colleges costs $40,000 to $50,000 a year, and her daughter will not consider any other options.  Rose and her husband refuse to go tens of thousands of dollars in debt for their child’s college education, and they don’t want their daughter to leave school saddled with debt, either.

Unfortunately, this scenario will be played out across the country as upcoming seniors set their sights on their dream colleges, which often cost a fortune.

However, your child doesn’t have to be one of these kids with unrealistic expectations, especially if you talk with him regularly from middle school on about what you can pay for college.

Here are some strategies you can use to help keep your child’s expectations in line with your financial reality:

Let them pay for their own expenses

Many high school seniors who have unrealistic expectations about attending a pricey college haven’t had to handle their own budget.  Their parents may supply them with a car and insurance when they’re teens.  When it’s time to go out with friends on Saturday, they just ask mom or dad for money.  This dependent relationship isn’t helping the parents or teens.

Instead, put your kids in charge of their own budget as early as possible.  When kids are in 7^th grade, increase their allowance (perhaps based on the chores they do) and let them assume some of their own expenses.  Let them buy their own clothes and pay for their entertainment.  Don’t forget to also teach them to save.

Your child will quickly learn that she’s not earning enough money to meet all of her wants.  When she’s shopping for back to school clothes, maybe she’ll pass on the $90 jeans and instead by two pairs of the $30 jeans.  (True penny pinchers may even check out the thrift store.)

The earlier a child understands the concept of money and how far it can or cannot stretch, the more he will understand why a college that costs $50,000 a year is not feasible.

Match their own college savings

One easy way to motivate your children to save for college is to match their college savings contribution.  My husband and I want to help our children with college, but we don’t want to just hand them money that we alone have set aside for their college education because we don’t believe they’ll value the money or the education as much.  Instead, we want our kids to be invested in saving and paying for college.

Our son just turned 12, and for the last six months he’s been saving for college.  Of course, he’s also used his money for other things, but so far he’s saved $100, and we matched that amount.  We have it invested, and he gets excited seeing the money grow (even though at such a small amount it’s not earning much interest yet).  This strategy not only helps him invest in his own education, but it also teaches him about matching, which will be so important when he’s in his twenties and newly employed.  I’m quite sure, based on this experience, that he’ll take advantage of the company match on retirement savings.

Let them borrow money from you and pay it back with interest

At least once or twice, when your child’s wants are greater than her available money, let her borrow money from you with interest.  Put her on a payment plan, though make the repayment terms a bit aggressive.  Maybe she has to use 50% of her allowance per week to use to pay back her loan to you.  Also include interest.

While this tactic sounds mean, it teaches your child how constrictive student loan payments can be on a budget, especially when it’s a large student loan with steep monthly payments and the borrower is earning a relatively low salary when starting out.

Hopefully, after a time or two of borrowing money, your child will learn that it isn’t worthwhile.  If she doesn’t learn the lesson, however, feel free to turn her down for loans.  She also need to learn to stick to her budget so that she doesn’t constantly borrow money as an adult and stay in a never ending debt cycle.

Clearly outline what you can contribute to their college education

No parent likes to tell their child no, but for your own sake, you may need to.  Decide in advance with your spouse how much you plan to pay for college per child and then have a chat with your child, as early as possible, perhaps even as early as 8^th grade and then repeat the conversation every year.

This talk will help your child understand how much is available when shopping colleges, and it may also motivate her to look more aggressively for scholarships or to pick more reasonably priced schools.

Remind them grad school might be time for the school of their dreams

If your child will need to attend grad school for his chosen career path, encourage him to choose a more reasonably priced college for undergrad.  Then, he might choose the college of his dreams that is best in his field for grad school.  There are more opportunities to help fund grad school such as assistantships than there are for an undergraduate degree.

Let them apply to the unrealistic college

Finally, if all else fails and your child is adamant about the unrealistic college choices, as my friend’s daughter is, let her apply to the schools.  Once accepted, she can then fill out the financial aid package.  This may be the time that your child finally accepts financial reality.  Or, it may be the time that you’re surprised by the generous financial aid package.

I went to a community college for the first two years of college.  When it was time to transfer, I looked at our local four year college and a more prestigious four year college several hours away.  I was shocked when I got the financial aid packages.  It was cheaper for me to attend the prestigious college after financial aid, even though that college cost about 50% more.  Turns out the college had generous alumni, so that school was able to offer more financial aid.

When it comes to raising your children, college is likely the biggest expense you’ll face.  However, if you regularly chat with your child about how much you can afford to pay for college AND if you teach your child financial responsibility from an early age, hopefully you can avoid a fight over which colleges your child should plan on attending.

Most importantly, stand your ground.  A child who doesn’t get to go to his dream college will likely understand years down the road and thank you, especially when say “no” to your child and expensive college parental loans means saying yes to your own retirement funding.

How about you all? How did you handle college choices and expenses with your child?  Or, if your child is not yet that old, how do you plan to handle this situation?

Share your experiences by commenting below!

****Photo courtesy https://pixabay.com/en/graduation-grads-cap-diploma-907565/

How to Help Your Child Explore the World of Work

The following post is by MPFJ staff writer, Marie. You can read more of Marie’s articles over at her own blog, Family Money Values. Enjoy! 

In days past, finding your occupation could mean just following in your father’s footsteps.  Often, the son would follow the father in whatever occupation he had.  Hence many of our current day surnames actually derive from occupations – Smith (as in Blacksmith or any type of learned trade in fact), Taylor (as in clothing tailor), Potter (as in making pottery), and Carpenter (as in working with wood) are just a few examples.  If there wasn’t room in the family occupation for all the sons, some of them would be apprenticed out to local area businessmen.

Benjamin Franklin was apprenticed by his father into his elder brother’s printing business.

In other words, there wasn’t a whole lot of choice about what you ended up doing for a living (practically none for women in fact).

Although in recent history, we have more freedom to choose our own path, it is sometimes difficult for a young person to figure out what that path should be.  We tend to limit our choices to what we see around us – those things to which we are exposed in life.

Assuming you want your child to find one (or many) enjoyable and profitable career opportunities, how can you widen their view of what is available?  How can you as a parent (or grandparent) give the child a broad base of experience AND knowledge about current or potential future career choices?

In my book, Choose Wealth – Be a Millionaire by Midlife, I theorize that we need to be exposed to a wide variety of experiences to even begin to understand what it is we want out of life – to learn how to “dream big” and find a way to provide ourselves and our dependents with the monetary and psychological wealth needed for a happy and productive life.

There are numerous ways to help your child develop a broad base to soak up and consider the opportunities available in the world of work around them.

Here are a few of those ideas.

Activities

We all learn best by doing.  From their early years on up, encourage your child to try out different activities.  Help them find ways to learn how to draw, play a musical instrument, pitch a baseball game, dance, act, use math, organize events, see different things and experience different ways of living.  Without trying out some of these things, how will your child ever know if he or she has a knack for them or enjoys them?

Observations

Train them (and yourself!) to be aware of the world around them.  As you go through your every day life, point out how people are making their livings.  Talk to them about what the grocery clerk does, and about who owns the grocery store and what they do.  Let them know that there are behind the scenes people doing jobs to support any number of visible jobs – the engineers behind the design of the space craft, the architect behind the construction of a building, etc.

Chores

Lots of experience can be gained in your own home, by letting your child handle age appropriate household tasks such as mowing the lawn, fixing a broken lamp, doing the laundry, helping to plan an event such as a family vacation, fixing the family dinner or figuring out how much paint you need to buy to re-paint the living room.  Hands on experience with many of these will not only prepare your child to be self sufficient but will also allow them to decide if they enjoy that activity and want to pursue it.

Books

Books are the time honored way of getting outside your own world.  Encourage your child to read about other people and what they have done.  Biographies are great for this.  Take them to the library and let them pick out one at their reading level – any one that spikes their interest.

Movies

Movies are a great way to entertain your child and let them see other possibilities.  Documentaries can also feature various careers – Planet Earth for example, showcases not only photographers but also other occupations.  The One Week Job documentary follows a Canadian college graduate as he ‘tries out’ multiple jobs over a year – working each for one week.

Seeing features such as Mary Poppins or The Sound of Music can spur discussions on child care occupations.  Watching Apollo 13 with your older child can give insight into the many supporting professions behind our space program.  Watching short videos such as Curious Kids   or some of the Biz Kid$  episodes can shed light on opportunities as well.

Movies are about life.  In life we have to support ourselves.  Almost any movie can be a starting point for a discussion of career opportunities.

Family and friends

As in days gone by, our nearest career examples may be with family or a friend.  Use this.  Make sure your child knows what you do for a living and why.  Let them talk with and interview family members about their careers.  I asked members of our family to make a short video about what they do – for my grandkids to watch in my annual Grandma Rie’s Money Camp.

In my family alone, we have CFO’s, accountants, auditors, web developers, software engineers, government workers, self employed business people, farmers, chefs, lawyers, dietitians, nurses and more.  Yours is probably the same.  Use it.

School clubs & activities

Most schools at every level have clubs and activities students can join.  These can be an excellent way for kids to try out aspects of different careers.  The school newspaper (in middle or high school) can be a springboard to reporting, photography, editing, publishing, marketing and more.  The speech club can let a student decide if they like public speaking.  Math and science clubs give kids a taste of the usefulness of each.  Drama clubs and school plays and musicals help kids experience theater, back stage, directing, acting and more.

School counselor

In late middle school and high school your child’s counselor can be helpful in locating opportunities outside the school.

There may, for example, be  programs in the community to help high school students learn about careers for such as these two I found in the US Midwest:  Northland Career Center and Northland CAPS.  Some of these provide off school site programs regarding specific types of careers using area industry workers as teachers and potentially providing internships for students at area companies during the summer months.

Area college programs for high school students might also be identified by your counselor (or by you through library or internet searches).  One such program at St. Louis University has a myriad of summer workshops high schoolers can attend, such as their Adventures in Medicine and Science program workshops.

School counselors may also recommend interest or personality testing tools that can help a person figure out what they are interested in and what careers might currently be available that utilize those interests.

Summer camps

The sky is the limit on what kinds of involvement and learning can be had at summer camps for kids and teens.  Everything from STEM to sports to equestrian skills to drama and more are available.  Most camps are for profit and can be expensive.  My grandkids for example, have attended a Junior Achievement camp called Biz Town, to learn about jobs and businesses, music camp to practice viola, horse camp to learn to care for and ride horses, as well as more rounded activity camps which provide multiple types of experiences.

Civil Air Patrol

If you think your child might be interested in flight or military options, take a look at the Civil Air Patrol.  They have a youth program for kids 12 – 19 years old that (according to their site):

“The CAP Cadet Program is a year-round program where Cadets fly, learn to lead, hike, camp, get in shape, and push themselves to new limits. If you’re dreaming about a career in aviation, space, or the military, CAP’s Cadet Program is for you.”

One of my grand kid’s cousins is a youth member and has had the opportunity to fly and learn a bit about piloting.

Volunteer projects

Even kids can volunteer on projects that help them gain strengths in several areas.  Kids even start their own charities – fostering organizational skills, communication abilities, persistence and etc.  Here are 10 examples.

When your kids are young, you will probably want to volunteer alongside them – for their safety and so they can observe you in action.

Find opportunities through any number of websites including:

• Volunteer Match
• United Way
• Volunteer Gov
• National and State individual park openings
• Your local church or school

There is even a site especially for the young – Generation One

One of my nephews volunteered internationally through his church.  He had to raise his own air fare and cover his own expenses.  In return, the church sent an adult to supervise the volunteers and my nephew experienced a whole new (and more primitive) way of life while directly helping a village.  He now is aiming at a medical career in Public Hospital Administration.

Student Exchanges

Exposing your child to another culture can be accomplished by participating in your school’s student exchange program.  Most programs bring a foreign student into your home and then that student’s family reciprocates by bringing your child to their country and home.

Not only will your high school-er get in depth language practice but will see a whole new way of living and thinking – at each home.

Take your kid to work day

If your work place allows, do take your child to work on the designated day (and on other days as applicable).  Show AND TELL them what you are doing and why when they come to work with you.   Better still, if possible, let them help. Watching you sit at a computer terminal and type isn’t all that instructive without the tell part.

When my boys were high school and college age, I arranged for several of my colleagues to do a pretend job interview with them.  I paid for lunch and my boys got to interact with professionals in my field in an interview situation – without any interference from me (or even knowledge of how it went).

Job shadowing

Your child’s school counselor (or you via your own contacts or through searches) may be able to arrange for your kid to shadow other people in different career areas.  Following a doctor or school teacher or another worker around for a day or so can give your child some idea of what that career is like.  PrepScholar does a decent job of describing this.

Summer jobs

Of course, actual work experience can be the best way for your kid to know what they like and don’t.  But encourage your student to select a job, not just on how easy it is to get or what it pays or the hours but also on what they might experience while working there.

One summer I worked for a large chemical company – as a mail clerk.  But I got to deliver mail all over the executive offices and see what went on there – as well as learn about mail rooms.

Some students work throughout the year at part time jobs either before or after school or on the weekends.  It is my opinion, that unless absolutely necessary, this can be more detrimental than beneficial to a young person.

Internships

Summer internships can be had, even in high school.  If your student is willing to work for free – rewarded by the network he or she is building and the learning taking place, they are easier to land.

Advice from others

Check out the Career Planning for High Schoolers guide at the US Bureau of Labor Statistics and Wikipedia’s list of organizations providing career and technical training for more information.

Although my own grandchildren are only 12 and 9, this summer in my Grandma Rie’s Money Camp, we will be focusing on starting to explore the World of Work – using some of the above resources.  We will watch some of the movies and videos, go on field trips to observe and interview folks doing different jobs, make a movie about an interesting career and they will also have to come up with and perform a skit with a focus on careers.

How about you all? How do you help your child explore the world of work?

Share your experiences by commenting below!

****Photo courtesy https://www.flickr.com/photos/usacehq/14146897913/