Teaching kids financial literacy? Don't forget entrepreneurship

Teaching kids financial literacy? Don't forget entrepreneurship

(ARA) - You teach them the value of hard work and the importance of telling the truth, how to be a loyal friend and a good citizen. But you might be overlooking one of the most important lessons you can teach your children to help ensure they do well in life - financial literacy.

Several studies seem to indicate that many kids just aren't getting the message about smart use of money and credit. A 2009 study by Sallie Mae found that the average credit card debt for college seniors is $4,100, and that 84 percent of all college kids have at least one credit card. Other studies have found credit card use on the rise among high school students as well.

The Great Recession taught many adult Americans how little they really knew about financial literacy. Over the past few years, educating children and teens about smart spending, saving and borrowing habits has gained national prominence among educators, legislators, financial experts and parents.

Even such financial luminaries as Warren Buffet are getting involved. Buffet has lent his name and expertise to the Secret Millionaires Club initiative, a website and series of webisodes that strive to teach children financial literacy and entrepreneurship.

"It's never too early to teach kids about properly managing their money," says Ken Chaplin, senior vice president at CreditReport.com, which is sponsoring the Secret Millionaire's Club. "We teach our kids to know the anatomy of a frog; however, we don't necessarily educate them on the ways to manage a checkbook. The Secret Millionaires Club 'Learn and Earn' promotion will help to provide financial information in a fun and engaging way that can benefit kids well into adulthood."

Teaching kids about money and responsibility is an interactive, team effort, experts agree. Tactics that parents may find useful include:

* Giving children a weekly allowance and helping them establish goals for their money, including saving some, investing a portion, donating some and spending a few dollars as well. This approach gives kids firsthand experience with how money will work for them when they're adults.

* Teaching them to be little bargain hunters. Parents should shop with children and help them understand how to stretch their dollars by looking for sales, comparison shopping, and avoiding impulse or advertising-driven buying decisions.

* Instill in children the value of saving. Teach them early to put a little away from all money they receive. Open a bank account with them and give them incentive to save by pledging a matching contribution for every dollar they save. And lead by example. When extra money comes into your hands - from a work bonus or gift - take your child with you to the bank to deposit the money into your savings account.

Fostering entrepreneurship is another important element of teaching children about financial literacy. The Learn and Earn contest gives kids a chance to put into practice the financial principles they learn through the Secret Millionaire's Club. Open to children ages 7 to 16 competing on their own or in teams of up to four people, the contest runs through Jan. 20, 2012, and encourages kids to create their own imaginary companies. Entries must include a complete description of the business, product and/or service and the structure of the company. Entries can be submitted online or via mail. One grand prize winner will receive $5,000 (per person for a team). To learn more, please visit www.smckids.com/learnandearn.

Cut your taxes with these year-end moves

Cut your taxes with these year-end moves

(ARA) - If you made a list of things to accomplish by the end of the year, would "review taxes" appear? If not, add the item and put it toward the top. You could save hundreds, even thousands, of dollars on your tax return with these simple tips.

Start by estimating your taxes. Tax preparation solutions make estimating your federal and state taxes easy. One of the leading solutions, TaxACT, releases its products in early October for free use.

An early estimate will reveal where there's still potential for savings. Specifically, look for tax breaks scheduled to expire at the end of 2011. You'll also see the impact of the latest tax law changes on your return. You may discover tax breaks you claimed last year have expired, changed amounts or have different qualifications. Conversely, new tax breaks may be available that require action by Dec. 31.

Knowing the approximate amount you'll be refunded or owe ahead of time may influence your year-end spending. If you expect a large refund, you can begin planning how to invest that money. If you have a balance due, make a payment now or adjust your withholding through the end of the year so you owe less at tax time.

Next, consider making these timely money-saving moves.

* Give charitably to IRS-approved organizations if you itemize deductions. Whether you donate cash, clothing or household items, save your gift receipts. Use the fair market value to determine the deductible value of your non-cash donations.

* Some energy-efficient home improvements made before Dec. 31, 2011, qualify for tax credits. Visit energy.gov for information.

* If you (not your mortgage company) pay your own real estate taxes, consider pre-paying taxes due early 2012 by Dec. 31 so you can deduct them on your federal return.

* Make your January mortgage payment by Dec. 31 to increase your mortgage interest deduction. If your mortgage interest statement does not reflect your pre-Jan. 1 payment, deduct the correct amount on your tax return and submit a statement explaining the difference between your deduction amount and the lender's statement.

* Contribute the maximum allowed amounts to your 401(k) or 403(b) retirement plans.

* Convert your traditional IRA to a Roth IRA. The gross income cap for who can convert has been removed.

* Defer income like year-end bonuses and stock options until Jan. 1, 2012 to decrease your taxable income for 2011.

* If you own stocks with big losses, consider selling them in order to offset taxes on gains.

* If your state offers 529 College Savings Plans, your contribution could be deductible.

* Pay your spring college tuition now if you haven't yet reached the Tuition & Fees Deduction $4,000 maximum.

Information about these tax breaks and others for federal returns due April 17, 2012, are available at www.irs.gov.

After you've done everything possible to maximize your tax savings by Dec. 31, gather and organize your tax documents. View or print a list of documents and information you'll need for your return at www.taxact.com/checklist.

Preparing early will allow you to file your return as soon as you receive all your W-2s and 1099s in January or early February.  If you owe taxes, you can still file early and schedule payment later (any time before the filing deadline).

Finally, cross taxes off your year-end list and enjoy some peace of mind. It's a great way to end the year and start a new one.

Learn more about TaxACT and start a free federal tax return at www.taxact.com.

Five ways to stay upbeat and energized during the holidays

Five ways to stay upbeat and energized during the holidays

(ARA) - As Christmas carols hit the airwaves and the snow begins to fall, the joy of the holidays brings out the best in everyone - right? With a seemingly endless to-do list of shopping, cooking, entertaining and decorating, the holiday season can quickly become a recipe for anxiety. A recent study by the American Psychological Association shows that one-third of Americans are living with extreme stress.

The true meaning of the holiday season can be overshadowed by the demands of preparations, but it shouldn't be. By planning ahead, taking care of yourself and making sure to spend quality time connecting with loved ones, you can stay upbeat and energized during the holidays.

Try these tips to make sure your mood is as bright as the lights on the Christmas tree.

Plan ahead: Instead of subjecting yourself to the last-minute trips to the mall, get shopping done earlier, and do what you can online. If you need to hit the mall, get there when it opens and develop a list beforehand so you can quickly check off what you need. Establish a schedule for the month of December and plan several days in advance for holiday meals and parties. Also, create a budget early in the season, and stick to it. Studies show that finances are often a major trigger of stress during the holidays.

Make meaningful connections the entire season long. Making time to connect with close family and friends - whether through a phone call, e-mail or Skype - will help you remember the true meaning of the holiday season. You can also let your loved ones know you're thinking of them throughout the season by surprising them with the jacquielawson.com Advent Calendar. The animated e-calendar includes 25 holiday animations that transport recipients to a magical version of London. It's a meaningful and unique gift for friends and family, near and far - you'll love sharing stories with loved ones from that day's holiday animation.

"We heard stories of extended families living thousands of miles apart yet sharing the daily ritual of watching the day's animation and then talking with or emailing each other about it," says jacquielawson.com co-founder Mike Hughes-Chamberlain, speaking about the company's first-ever Advent Calendar last year. "Many customers asked us to keep making new calendars each year so it could become a new family tradition."

Take time for yourself. Escape the hustle and bustle of the mall by going to a movie with a friend, or curling up by the fire with a bestseller. Taking a moment to breathe and focus on something unrelated to the holidays will give you a chance to regroup and more effectively tackle the next cookie recipe or holiday party on your schedule. Try spending a few quiet moments of alone time each morning to recharge for the day ahead. And, if you feel like splurging, enjoy a few hours at the spa while you're picking up gift certificates for others on your list.

Avoid over-committing. With holiday parties to attend and host, cookies to bake and deliver, and tackling an ever-increasing Christmas card list, the holidays can easily swirl out of control. Decline the office cookie exchange this year, and cut down your gift list. You'll be better able to savor the most important things of the holiday season when you're not frantically running from one commitment to another.

Exercise and eat right. In a season where schedules get busier as the holidays get closer, make one thing a standard in your daily routine. A trip to the gym or an exercise class helps you relax and unwind. If you can't make it to the gym, incorporate more walking into your daily routine. Park a little farther from the store entrance, or take a walk to see the neighborhood Christmas displays. Try to focus on your nutrition and avoid overeating, a major cause of holiday and post-holiday anxiety. Make sure to incorporate fruits and vegetables into your diet, and avoid that extra cookie when you can. Usually, one is enough to satisfy your sweet tooth.