How to Raise Spoiled Kids: Sweet 16 Party April 28, 2006
We all are trying to save on monthly costs, cut tax costs, or spend less to gather enough for a major purchase that has meaning in our lives, such as a home, college tuition, retirement, or emergency expense (at least those of us in the personal finance blog world and responsible spenders). I’ve been able to cut out $290 per month and counting, without noticing any difference in my lifestyle. But when I read about MTV’s ‘Super Sweet 16′ show about super-spoiled 16 year olds, I get sick to my stomach. I mean, all the effort by parents working and saving money for a secure future goes down the drain thinking about kids who throw temper tantrums because they want a party that will cost upwards of $200,000, goes down the drain. This behavior by children starts with the parents. One parent who is on the MTV show says:
“If you can afford to have a grand celebration, then why not,” said Dr. Kothapalli, who immigrated to the United States from India in the mid-1980’s. “It’s the American way. You work hard and you play hard.”
It’s no mystery that hearing this from parents results in kids like the one who says:
“We both want to lose three pounds,” said Priya, who received a Mercedes convertible and an assortment of diamond jewelry for her birthday. Her sister’s graduation gift package included a Bentley, diamonds and two homes in India.
“I was really surprised,” Divya said, “because I was only expecting a Bentley and one house.”
If you want to instill responsible money habits in your kids, they need some wisdom from parents about finance before they can become responsible citizens of the world, not to be wasteful. How sad when we are in a world where most people are dealing with poverty, environmental disasters, war, and energy crisis. I hope these parents who are raising these kids come to their senses.
Source:
MTV’s ‘Super Sweet 16′ Gives a Sour Pleasure
NY Times
By LOLA OGUNNAIKE
Published: April 26, 2006
Tax Due Today! What Now? April 17, 2006
Tax day is here for the US. So if you owe money to the IRS, you’ll need to send payment along with your request for an extension. Otherwise, you will be subject to interest and penalties on the amount owed. I went for quick peek at the post office this morning, and saw a long line to mail out tax forms. Hope you weren’t one of those people! If you’ve already sent in your tax forms, congratulations. But there are some things you can do to start preparing for next year. Here are some suggestions:
- Review your tax withholding for 2006 - if the government owed you money this year, consider reducing your withholding amount so you don’t give away a free loan to the government.
- Organize your receipts and spending - get a file organizer or a folder where you can save your receipts and expense records so you have them in one place. This has helped me reduce time for tax preparation.
- Create a spending budget for 2006 - knowing where your money is going is a key to saving money. Stick to your budget!
- Put away emergency money - If you received a refund, or a year end bonus, put it in an emergency fund, so you will be comfortable when an unexpected event comes along.
- Donate to charity - Each year, I donate to charity, but I wish I had more to donate. During this season, having a tax return or bonus allows me to donate. Do so now before you lock away your money or spend it.
- Chill - Reward yourself for your hard work. Be nice to your family and neighbors, and enjoy the warm weather!
Expect no Inheritance from Your Parents March 27, 2006
There was an interesting article from yesterday’s NY Times about the expectations of receiving an inheritance. According to the article, the majority of the US households (86%) do not expect to receive an inheritance. I’ve read that hundreds of billions of dollars are being passed on every year. However, most elderly Americans can probably forget about passing on an inheritance to their children.
After all, the evidence shows that baby boomers are going to need it: working Americans are unprepared for their own retirement, economists say. They have little savings of their own, and are facing the possible erosion of Social Security and the limits of company pensions…
In 2004 median inheritances — half were bigger and half were smaller — amounted to about $29,000 in today’s money, according to a Federal Reserve analysis of the Survey of Consumer Finances.
The two biggest reasons for the decreases in inheritance are healthcare costs and longer life expectancies. The poor and middle class will spend more and more on healthcare and retirement living, while the small percentage of wealthy families are getting a bigger slice of the inheritance pie. The wealth and inheritance $782,000 is concentrated in the top 2 percent of the richest.
It’s a good idea to live and spend as if you will not receive any inheritance. We shouldn’t have a sense of entitlement about getting things from our parents. Plus, we should feel lucky that our parents will live longer than previous generations. I’m not even sure my parents will have anything left to pass down, but we’re saving as much as we can into our 401k retirement plan since we don’t expect any inheritance. In fact, we should plan on taking care of our parents as they took care of us growing up.
Source:
NY Times: Inherit the Wind; There’s Little Else Left
By EDUARDO PORTER
Published: March 26, 2006