Most parents will have the drug and the sex talks with their children, but what about the money talks? Statistics show that very few adults have been educated properly on how to manage their own money. This may be indicative of the enormous amount of personal debt our society is facing right now.

Today’s parents can change this by teaching their children to be financially responsible starting at an early age. Remember, children are great imitators and learn by observation so it is important that you lead by example and teach your children how to make responsible money choices. Start sharing information with your children today and continue as they grow and develop. The financial skills that they learn will help them on their lifelong journey toward healthy finances.

A great lesson begins with hands-on money management experience. Start by encouraging them to save a certain percentage of all the money they receive from their allowance, gifts and jobs well done. They can spend their remaining money as long as it is meets your established family limitations and values.

We all learn from mistakes, so allow your child to make them. If they spend all their money on one item and have none left, they will have to wait until they earn more money before their next purchase. This is a great lesson in delayed gratification.

Teach your children how to set goals. Encourage them to work hard and continue saving to reach their goal. They will learn that by continuing to save their money, it will grow into a larger sum which will enable them to make that special purchase. This will help them experience a great feeling of accomplishment.

As your child matures, teach them the art of budgeting as well as the differences between debit and credit. You can do this by making them aware of your monthly household bills and teaching them how you are responsible for paying each on a certain date. You may also want to show them how purchasing on credit can incur interest charges which can greatly increase the cost of the items purchased.

Giving your children a financial education will help them develop skills of independence, reasoning and responsible money practices. They will learn that money must be earned through skills and hard work and that saving and spending wisely is important for their future financial health.

Through education and example, you will be helping the next generation work towards a successful financial future.

AZ Answers

“Financial Issues to Consider during Divorce”

Thursdays • February 28 & March 7, 2013

5:30 – 7:00pm • (2-Part series)

Women’s Resource Center of Greensboro • 628 Summit Ave. • Greensboro, NC •27405

(336) 275-6090 www.womenscentergso.org

 Registration Required • Childcare not provided

Class 1 – February 28th: • Financial Issues to Consider during Divorce • Beginning the Transition • Tips on Negotiating • Financial Management & Independence • Dividing Assets

Class 2 – March 7th: • Choosing Medical Coverage after Divorce • Insurance Policies Needed after Divorce • Healthy Financial Planning • Keeping on Track and Staying on Track Financially

Chicks, Chat and Change Financial Terminology 101

Welcome back. I am Ann Zuraw

We are continuing on with our Financial Terminology 101 and keeping it very simple and general.

Today we are going to talk about what Market Capitalization or Market “Cap” is. Market Cap is one measure by which a company’s size is classified. Market cap is a way to use the stock price to establish the value of a company. The way the Market Cap is calculated is by multiplying the stock price by the number of shares of stock the company has actually issued.

For example, your cake company has issued 10,000 stock shares and each share is selling for $10. You would multiply the 10,000 shares by the $10 stock price and have a market capitalization of $100,000. What this means is that if you had the money and all of the stockholders were willing to sell you their shares, you could buy that company for $100,000.

Market Cap doesn’t necessarily have anything to do with the actual value of the company assets. What it does do is put a value on the ownership which includes all the assets of the company plusany future profits that are expected. It’s possible to have a company that doesn’t own any assets but has a great idea for making money. Google is a good example. They have a market cap much higher than their assets because their investors are assuming the company will be able to increase its profits at a fast pace.

AZ

The stories I am hearing are wonderful and right on target for our financial discussions and I will be sharing them with you in upcoming videos.

Here’s today’s story. Early on in her marriage a young newlywed decided that she would be diligent about using coupons for everything and she always would take the savings and put it aside for emergency purposes or perhaps their retirement dream home in Maine.

Her husband knew she had been doing this, but never paid much any attention to it. She handled the the money and taxes, etc. in their household. She never made a big deal out of it because she was afraid that the temptation to take a little bit here and a little bit there would end up defeating her goal. She never left home without her coupon organizer in her purse and used them for everything. Her friends always teased her about this.

Well, 25 years later and 3 years out from retirement, her husband lost his position with a company he had been with for well over 20 years. He was devastated not only for the loss of his job but that their plans to retire to Maine would not become a reality in the near future. They had worked hard and put two kids through college and law school. They had their retirement’s plans in order but the economy had played havoc with the value over the few years.

Well, last week she surprised her husband with what he always called her little coupon account…$478,000! She had stuck to her savings plan, invested well and let it grow.

So, any money generating items in your purse?

If you are one of the many who became unemployed or have had to move out of town to find a job, you may qualify for additional tax deductions for the year as long as you are searching for a job within your current occupation. You are still allowed to still take deductions even if you are temporarily working in another area just to make ends meet, but continue searching for a job in your field. Any job related expenses associated with preparing your resume can be deducted. You can also deduct mileage, parking fees and any additional childcare costs resulting from going on interviews. If you working with an employment or an outplacement agency and there are non-reimbursed expenses, you are probably eligible to take these deductions even if you don’t get the job — including airfare, hotel and car rental.

Keep track of what you do each day by writing down everything related to your job-hunt along with what money you spent — even if you don’t have an actual receipt in hand.

I have mentioned just a few of the deductions you might be eligible for. Check with a professional and see what other deductions you qualify for. By not checking, you could be leaving extra money on the table.

Thanks,

AZ

Join us for a Special Women’s Seminar as we explore our Financial, Spiritual and Physical well being in the New Year.

This session will be not only informative but fun!  Experience whole health as you connect the mind,  body and spirit.   

When:                  Saturday, January 26th, 2013   

Where:                Get Fit Mat Pilates Studio

                               252 Summit Avenue

                               Greensboro, NC 27401  

                               (Parking lot is adjacent to building)     

Time:                    10:00 a.m. – 1:00 p.m.

Speakers:             Ann Zuraw,CFP®, CFA®, CDFA ™

                                Tamela Duncan, LCSW

                                Tonya Martin, B.S. Exercise Science

Cost:                     $65.00/per person – Lunch will be provided

                                  Please mail check to:

                                 Tamela Duncan, LCSW

                                 200 E. Bessemer Avenue

                                 Greensboro, NC 27401

 Space is limited – Please R.S.V.P. to Theresa Anile @

tanile@compassfp.com before January 21st, 2013

Tamela Duncan and Tonya Martin are not affiliated with, nor endorsed by LPL Financial.

Join Chicks, Chat and Change
For
An Informative Session on Long-Term Care

Ann Zuraw, CFP®, CFA®,CDFA® 

Please join us and bring along a friend as we learn more about Long-Term Care Insurance and plan for a healthy financial future. 

When:             January 17th, 2013

Time:              12:00 to 1:30 p.m.

Where:           Ann Zuraw, CFP®,CFA®,CDFA™

                        Compass Financial Partners, LLC

                        3623 North Elm Street, Suite 201

                        Greensboro, NC 27455

Speakers:      Ann Zuraw

RSVP by:       Monday, January 14th, 2013

                              Theresa Anile   tanile@compassfp.com

                                        (336) 510-7777

Lunch will be provided

Seating is limited

Comprehensive Financial Planning for the Planned and the Unexpected.

During the holiday season, shopping for presents can bring on two things –emotional and financial stress! Over spending and running up large balances on your cards can lead to high interest charges in addition to your holiday purchases. It might also mean that you don’t end up paying off these charges until the spring or summer.

Start by thinking back to your holiday shopping patterns over the last 5 years. Choose a year that you bought gifts for everyone on your list, but spent a reasonable and affordable amount. Add the approximate charges for these gifts and then divide the amount by 12. The end number should be the amount you set aside every month. If you have no idea how much you have actually spent yearly over the last 5 years, sit
down and figure out right now what you can comfortably afford monthly and start putting the money aside.

Take the time to develop a budget that works for you year after year — allowing you to actual enjoy the holidays and still stay within your budget. It is important to plan ahead, make your lists and stay within your established yearly budget.

Learn how to shop for the holidays and enjoy them.

Thanks,

AZ

It is never too early or too late to teach your kids about money. If you don’t talk to your kids about money, it can lead to bad habits and bad habits can stay with them for a lifetime — possibly leading to bad money decisions down the road.

Kids need to know the difference between their wants and needs. Teach your kids to be smart shoppers. Explain to them why you bought something that you needed on sale at the grocery store. And because you did, you will have extra money left-over for other things.

Show your kids how their money can grow and earn interest just by being in the bank. Teach them about compound interest. Explain to them if they put their birthday money, holiday money and even their tooth fairy money into a compound interest savings account they are not just earning money on the principle, but on the entire amount as the account grows and earns interest. Explain to them that they will be earning interest on their interest without having to do anything!

By teaching your kids the importance of financial independence, you may learn a few things yourself.

Keepin it simple from AZ