“I also know that we live in a society that has lived beyond its means. Much of the wealth around us was created by a huge increase in debt. Now, with the economy shrinking and credit tightening, much of that debt is going to disappear. Like it or not, America may once again become a place where people watch every penny.”

There is no doubt that being frugal can be hard on family members that don’t share the same sensibilities when it comes to money.  This was especially true when the whole nation was going crazy with debt.  Now that a lot of the big spenders are facing foreclosure or other severe financial strain, it is important to point out to your family what can happen if you over-extend.

Originally posted on pfhacks.com: On the Virtues of Being Cheap

Middle-income families can expect to spend $204,060 on feeding, housing and schooling a child born in 2007 until his or her 18th birthday, the U.S. government reported on Monday.

Housing will be the single largest cost for U.S. families — making up 33 to 27 percent of total expenses across income groups, USDA said.

The number quoted in the first paragraph is without inflation, with inflation factored in, the cost rises to $269,040.

The study does not include the cost of college.

Originally posted on pfhacks.com: Raising A Child Born In 2007 Will Cost $269,040!

Photo: exfordy

I found an interesting article in the February, 2008 issue of money magazine titled: "Get Your Grown Kid to Leave Leave (Finally)".

It’s presented in a comic book type format, that illustrates how one needs to be prepared with answers to the excuses that you child will inevitably provide.

Here are some key points:

1. Choose a moment when he’s likely feeling flush.
2. If you really think he can afford it, don’t let him off the hook.
3. If he’s enjoying the comfort, make home life less comfortable.
4. If he has genuine money worries, offer a compromise.
5. But make it clear that ultimately he’s got to leave the nest.
6. If he’s still worried, assure him you’ll be there to help out if disaster strikes.

I couldn’t find the article online, so try and take a look at it next time you are at a news stand or library.

Originally posted on pfhacks.com: How to Get Your Grown Kid to Leave Home