|
|
|
Ask the Pro - Registered Education Savings Plans & Family Finances - 2008
Steve has been in the financial services industry for more than 18 years and his expertise incorporates private and public accounting, auditing, tax planning, and personal and corporate consulting.
Steve is the director of Bentley Financial, a financial services firm that was launched in 2003. Feel free to download the Bentley Financial Focal Point on Registered Education Savings Plans or contact Steve from Bentley Financial via the form below.
Browse the Q & A below or ask our RESP & Family Finances Pro
Steve Bentley your own question!
1. Is a Registered Education Savings Plan really the best way to save money for my children's education?
2. What’s New for Registered Education Savings Plans (RESPs) in 2008?
3. Was there anything in the February 26th budget for the average Canadian?
4. Is it worth purchasing life insurance for my children?
5. What tips can you provide on giving our two children a weekly allowance?
6. How do we start to teach our children how to be smart and save their money?
7. Do you have any strategies on how we can reduce our monthly expenses?
8. Are there effective strategies on how to use our son’s RESP funds now that he is heading off to University?
9. We are a young couple and are thrilled to soon be welcoming our first child into the world. Our money is tight and we are wondering if you have any advice for ways to make the first year easier?
10. Are there any steps you would recommend to young couples to help prevent identify fraud?
11. This month’s question reflects the expressions of some clients recently given our current economic difficulties and the costs associated with Christmas. It seems we have in some ways lost the meaning of Christmas. I wanted to suggest ways in which we can deal with the added expenses of the Holidays and reflect on the true importance of the season.
What is a Registered Education Savings Plan? - A Registered Education Savings Plan (RESP) is a special savings plan in which money grows tax-free until it is withdrawn for education after high school. Contributions to an RESP are made by a subscriber, on behalf of one or more beneficiaries named in the plan.
Why should I open an RESP? - An RESP is a good way to save because your money grows tax-free until it is withdrawn for post-secondary education. Having an RESP for a child also allows you to apply for special education savings incentives. The Canada Education Savings Grant (CESG) is a 20% government grant on the amount contributed per year to a maximum of $2,500. A Canada Learning Bond (CLB) of up to $2,000 is also available to lower income Canadian families.
When should I open an RESP? - The earlier you open an RESP, the sooner your savings will grow. If you
have named a child as a beneficiary, your savings will grow even more, if
you apply for the CESG and the CLB as soon as possible.
What do I need to open an RESP? - To open an RESP, you need a social insurance number (SIN) for yourself and for each beneficiary. There is no fee however certain documents are required.
How do I decide what type of RESP to open? - You can choose from three general types of plans: family plans, individual plans, or group plans.
Do I have to put money into an RESP? - No. If you qualify, you can get a CLB without putting money into an RESP. Otherwise, the amount you put into an RESP depends on your plan and the amount you choose to invest.
Are there limits on the amount of money that can be put into an RESP? - Yes. There is a life time limit on the amount that can be contributed to RESPs. For each beneficiary, the lifetime limit for contributions to all RESPs is $50,000. Although there are no annual limits on RESPs, the CESG will only be paid on the first $2,500 of contributions. RESPs can stay open a maximum of 26 years.
Can one child be the beneficiary of more than one RESP? - Yes. One child can be named as the beneficiary of more than one RESP. However, there are lifetime limits to the amount of money that can be contributed for each child.
How often do I have to put money into an RESP? - Every RESP is different. Some RESPs require monthly contributions. Others let you put as much money as you want into your RESP up to the RESP limits, whenever you want. Your RESP provider can give you more details about how often you must put money into the plan.
How long can I contribute to an RESP? - If you have a family plan, contributions must stop before your beneficiary turns 21. If you have an individual plan, depending on the terms of the plan you may be able to put money in your RESP up to and end of the 22nd year. RESPs can stay open a maximum of 26 years.
What about taxes? Do I get a tax deduction? - Your money grows tax free while it is in your RESP. You do not get a tax deduction for the money you put into an RESP, but the money your investment earns while it is in the RESP is not subject to tax until you close your RESP, or until money is taken out to pay for the education of a child named in your plan as a beneficiary:
- When you close your RESP, you may be able to reduce the taxes you have to pay by transferring your accumulated income payment to a Registered Retirement Savings Plan (RRSP).
- Money paid out of the RESP as an educational assistance payment is taxed in the hands of the student. Since many students have little or no other income, they can usually withdraw the money tax free.
What should I do when a beneficiary chooses not to continue education after high school? - If a child named in the RESP decides not to continue education after high school, you may be able to:
- Wait for a period of time, he or she may decide to continue studying later;
- Use the money for a brother or sister who does continue education after high school;
- Transfer the money into a Registered Retirement Savings Plan (RRSP) to help you save for your retirement.
- Withdraw your personal savings, tax free.
What happens to the Government money in my RESP when my beneficiary does not continue his/her education after high school?
- When it is clear that a beneficiary is not going to continue education after high school, any money in that child’s RESP from a Canada Education Savings Grant must be returned to the Government of Canada or, under certain conditions, may be used for a brother or sister’s education; but
- Money from a Canada Learning Bond must be returned to the Government of Canada. The Canada Learning Bond cannot be used by another child.
- You can withdraw your personal savings tax free.
Families can save more money for their children's education in 2008 as a result of the 2007 federal budget. The maximum amount that can be contributed in 2008 to a RESP per child has risen to $50,000 from $42,000. The $4,000 annual limit for RESP contributions has been eliminated.
The Canada Education Savings Grant (CESG) has increased to $500 from $400. A contribution of $2,500 in 2008 now generates the new maximum 20% grant of $500. If there is unused grant room from previous years, the maximum CESG for a year is now $1,000. The lifetime CESG limit remains at $7,200.
RESP eligibility is also extended to more part-time studies. Rules on Education Assistance Payments (EAPs) have been relaxed to accommodate qualifying part-time programs that don't meet the 10 hour a week requirement. They now require at least 12 hours a month be spent on courses to qualify. Students 16 years of age or more will be able to receive up to $2,500 of EAPs for each 13-week semester of part-time study.
Yes there was! While there were a couple of changes, the most beneficial will be a new Tax-Free Savings Account (TFSA).
Starting in 2009, people can put up to $5,000 per year in a TFSA and incur investment gains without paying tax. You won’t get a tax deduction for contributing money to a TFSA like a RRSP, but the ability to invest in and be free of taxes is a huge offset.
What does tax-free mean? Let’s say you invest $5,000 for a year in a high-interest savings account paying 4 per cent. Normally you’d pay $80 a year in taxes (40% tax rate). If the $5,000 was invested in a TFSA, your tax bill would be zero.
TFSAs will be like RRSPs where people will be able to invest it in many types of investments including stocks, mutual funds, bonds, GICs and savings accounts. TFSAs will complement RRSPs which are used to accumulate money to live on after you retire. TFSAs will be offered by banks, life insurers, credit unions and trust companies.
Need an example? Saving for a car? Drop $5,000 into a TFSA, invest wisely and then withdraw the money any time without paying tax. Once you've withdrawn $5,000, you can re-contribute that money at any time. Likewise, you can catch up on contributions you didn't make in previous years, and you can contribute to a spouse's plan.
This is definitely a personal decision. When I considered buying life insurance for my own children, I thought about the life insurance policy my dad bought for me when I was young. If you're considering buying life insurance for your children, you might want to ask yourself some of the same questions I did.
What's the financial benefit of buying insurance now - Children grow up fast and one day they may want their own life insurance policy. Insurance advisors will tell you to 'buy it now and save.' Buying a permanent insurance policy now means that premiums will be paid over a longer period, but your children will pay less when they take over the policy as an adult. Another good option for your children is a child term attachment which insures your children under your own policy. It has built-in guaranteed insurability and it is also good for people who do not want large amounts of insurance on their children.
Insurability - What is it and why do I need it - Guaranteed insurability allows your children to buy more life insurance at specified times up to their 45th birthday, regardless of their health, occupation or lifestyle. This ensures they will have access to additional insurance, even if they become uninsurable.
Could my children become uninsurable in the future - A common obstacle to buying life insurance is a medical condition. It's possible that some day your children might not be able to get life insurance because of a health condition. If they are accepted, the bigger the risk, the higher the premium will be.
Hobbies and adventures children pursue may make them ineligible for insurance - If your children take up some high risk activity such as racing motorcycles or skydiving, insurers will consider them as a higher risk. If the policy you buy for you children has guaranteed insurability, they won't be penalized for being adventurous.
A cash value can provide a fund to draw on for future opportunities - Premiums paid into a permanent life insurance policy build up equity in the form of cash value. The cash value of a policy is an asset. Your children might use the cash value to borrow money to pay for school supplies or cover an emergency expense. The borrowed money can also help them take the important step of establishing credit. The cash value also ensures their policy will remain in force if you are unable to pay the premium.
What if the unthinkable happens - As much as we avoid talking about life insurance for our children, realistically, if something happens, our family income levels would be seriously affected. We would need to take time off work, likely for an extended period. The proceeds from life insurance could assist those with this financial hardship.
While kids typically learn about money and its value at school and sometimes at daycare, how to manage money happens at home. Providing your kids with an allowance is a great tool for creating early understanding about the concept of money. Starting when a kid is old enough to identify a quarter, dime, nickel and penny as well as a $5 bill is a great time. Here are some quick ideas:
Start with math money lessons. Stack coins so a child can learn to associate that a $1 coin is the same as 4 quarters, 10 dimes, 20 nickels or 100 pennies. If you child can grasp the concept that a bigger coin doesn't mean 'better' and that a dollar coin can be broken into change that equals the same amount, your child is ready for the ABCs of money.
Start with an allowance at an early age. An allowance for a 3-year-old can be as little as two quarters each week to go toward a drink, a ride on the coin-operated horse, or piece of candy. Even a small amount of money to call their own that a young child can put into a purse or wallet lets them start the concept of worth and how things cost money.
Establish an appropriate amount. This is where it varies greatly. Some financial advisors recommend paying a child an amount equal to their age each week (a 7-year-old gets $7 each week). Others think that is too much and recommend an allowance that is half of their age. For older kids, you can calculate weekly expenses and then add some additional funds to either save or to be able to spend.
Be consistent and firm. Remember you are the teacher about money management, and if you say one thing and then do another, then you are teaching the child that the behaviour is okay. If you tell a child that he has to use his allowance to buy a toy and then give in and buy it for him, he has learned there are ways around saving. That's not to say you can't buy your child toys. If you plan to buy a child something, then don't tie it to his allowance. Be sure to keep consistent and then not to give into pleas and whines for ‘exceptions.’
Allowance should not be tied into family responsibilities. Do not tie allowance into family chores or responsibilities; they do these because they are contributing members of the family and not because they get rewarded financially. However, you can always offer 'extra' chores for money that don't normally fall into the scope of chores. Having kids do extra duties for pay will help their self-worth and teach them the value of working.
Teach them how to manage their money. It's not enough to simply give a child a billfold and ask them to keep track of their money. Smart parents will start showing them how to track expenses and weekly savings. An effective parenting tip is to install a whiteboard in a child's room for the use of tracking savings and expenses for easy viewing and updating.
Don't forget about raises. Once you set an allowance rate, don't forget about increasing it as a child gets older or increases responsibility levels. You expect periodic raises with work. Remember, childhood is a kid's job too!
‘It took me two years, but I finally saved enough to buy it!’ These are the words to me when I walked through the front door from a client’s 10-year-old son, announcing the purchase of a new bike. Adam’s parents have taught him about the value of money. When he achieved his first goal, he was proud.
Many parents spend time teaching their children how to play sports or stay safe. If we want our children to be financially responsible adults - set goals, manage their money and achieve their dreams – we must teach them how to be smart savers. Here’s how to start:
Teach your children sound financial values. That will help them to become adults who can manage their finances confidently. Focus on honesty, self-discipline, responsibility and sharing.
Allow your children to make their own decisions. Give them an allowance, provide guidance regarding spending and saving, then leave them to work it out. The allowance should cover enough for regular expenses and some discretionary spending. Discuss the different ways of spending and saving money. If your children spend their allowance on treats and don’t have enough for pizza at school, don’t bail them out. Their decisions have to have consequences.
Allow children to participate in the family’s finances. Discuss how Mom and Dad work for money and what they buy with that money. Address what the children are expected to buy with their allowance. When writing a cheque for a school trip, explain the concept of the money behind it. Involve everyone in decisions regarding major family purchases (e.g. ‘Do we buy a new TV or do we rent a cottage next summer?’)
Discuss the differences between wants and needs. Provide opportunities (e.g. washing the car) which will enable them to save more money. Offer incentives such as, ‘If you save half the cost of the ticket, we’ll give you the other half.’ This provides extra motivation and encourages children.
Help your children set and achieve age-appropriate goals. An 8-year-old won’t understand saving for university, but can learn to save for a video game. Help them set up a bank account and explain how interest works and how savings grow over time.
Discuss money with your children when they express a desire to buy something. For example, when on vacation, rather than repeated requests of ‘please buy me this,’ give your children $20 each and tell them it has to last for the entire trip. This will initiate a new learning experience: when the children see something they want to buy, tell them what the item cost and how much money they would have left. They quickly learn the value of $20!
By teaching your children to be smart savers, they will be able to experience the joy of using their own money to go on that dream vacation or buy their first home with their own down payment. The confidence of a secure financial future - what better gift can you give them?
If you look closely at your spending, you might be surprised how many opportunities you can find to save money without making any major lifestyle changes. Here are twelve tips on saving on your day-to-day spending.
Don’t talk to me until I’ve had my morning coffee – If your morning trip to work involves a stop for that large double-double, your caffeine fix is costing you about $330 a year. Consider brewing your own. Put that automated coffee maker on your wish list.
Let’s just grab a quick bite on the way – If the majority of lunchtime conversations include 'would you like to make that a combo?' consider packing your own lunch. Grabbing lunch on the go four times a week could cost you $1,400 a year or more.
You can’t win if you don’t play! – Everyone’s talking about tonight’s monster jackpot? Play it safe and I guarantee that you’ll be the big ticket winner by pocketing the $416 you’d spend buying two tickets a week for a year.
I have to stop at a bank machine – Stopping at another bank’s ABM August seem small at $1.50-$2.00 in extra fees, but paying for even one additional ABM fee a week could add up to $100 in service charges per year.
Pick a card …any card – If you have enough credit cards in your wallet to deal out a hand or two of Texas Hold’em, it’s probably time to think about consolidating your debts. Cancel all but one of your credit cards and make sure you pay off the balance each month. Or, look into a debt consolidation loan to lower your interest payments further.
300 channels and still nothing to watch? – Ask yourself whether your $800+ a year 'VIP' cable television package really stands for 'very inflated pricing?' If so, re-visit your cable package and, if you can get by with fewer channels, streamline your selections to make sure you’re getting better value for your money.
Now paying at a theatre near you – Take the family for a night out at the movies and, after ticket prices, drinks and snacks, you could easily be looking at $60 or more. Do that once a month over the year and you’ve spent $720. Consider going to a matinee performance and grab a snack at home before heading out, or stay at home and rent a movie – you’ll be guaranteed to have the best seats in the house.
Extra! Extra! Read all about it! – If you find yourself buying 2 or 3 magazines a month from the store, it can cost your upwards of $200 a year. Consider purchasing subscriptions for the magazines your read most and you’ll realize savings of 50%, 60%, even 70% or more. Now that’s a good story!
Water, water, everywhere – If you thought gas was expensive, just be thankful your car isn’t running on bottled water! At vending machine prices, you’re paying around $2 a litre and, even if you buy just one bottle a day, you’re still pouring over $300 a year away. Fill up at your tap instead, buy in bulk, or bring your own water with you.
Getting ripped (off) – Getting in shape is great! Getting your annual $600 gym membership renewal isn’t – especially if you only used it for a few months after last year’s resolutions. Consider looking for other, less expensive opportunities to get fit. Working out at home, or getting out for a walk with your friends or family is a great way to slim you – and your expenses – down nicely.
You call that a calling plan? – Charges for long-distance calls, cell phone usage, texting, and system fees can all add up quickly. While each plan is different, yours could be costing you many hundreds of dollars a year. And, if you have a teenager in the house – look out, you August need to take out a loan to cover your annual billing! Look for more affordable alternatives: consider pay-as-you-go plans, call outside of peak hours, get a family plan, or whatever it takes to bring your costs down.
The eastbound lanes are gridlocked, as are the collectors – Leave your car at home just once this week and find an alternative way to work. Take transit, car-pool or even walk if you’re close enough. And, while you’re enjoying that new-found quiet time on the way in, think about the $1,000 or more a year you’d otherwise have spent on gas, parking, and maintenance on your vehicle.
Spend your savings wisely:
Try monitoring your own spending habits for a week to see where your money is going. It would be easy to save an extra $1,000 a year without any significant lifestyle changes.
Now that your son has graduated from high school and is heading off to his first year of university, there are definitely some strategies on how best to use the funds accumulated in his RESP to pay for his educational costs. The way money is withdrawn from the RESP can either cost or save money. Here’s a quick course in withdrawal strategies:
1. Limit initial withdrawals. The government restricts the withdrawal of plan income and government funds (including the Canada Education Savings Grant or CESG) to a maximum of $5,000 in the first 13 weeks of you his program. You can obtain extra cash to supplement the $5,000 by redeeming some of your RESP contributions, but try to avoid doing that because removing contributions early stunts the plan's tax-deferred growth.
2. Seek permission for an early withdrawal. It is possible to exceed the $5,000 limit on the withdrawal of plan earnings by requesting permission in writing from the Minister of Human Resources. This avoids withdrawing plan capital (and potentially having to repay some of the CESG monies), but be sure to make your request as early as possible to receive a response and find out whether or not this strategy can work before the school year begins.
3. Make the right withdrawals to avoid paybacks. You may be required to refund some of the CESG grant money if there are any earnings remaining in the plan after your son completes or leaves university. To avoid a potential CESG payback, be sure to use the plan's earnings before withdrawing contributions.
4. Take advantage of tax savings. The earnings withdrawn from the plan will be taxed as part of your son’s income - meaning they could be effectively tax-free because your son's income is likely to be very low.
5. Get everything in order as soon as possible. Before releasing any plan earnings, your RESP carrier will require proof of enrollment from the post-secondary institution. To be sure you'll have the money when your son needs it, get that documentation to the plan carrier as early as possible.
6. Take advantage of left over contributions. If, at the end of your son's post-secondary experience you find yourself in the happy position of having contributions remaining in the plan, you can use that money as you wish. Transfer the cash to another child's plan, withdraw it for your personal use or you may be able to transfer it to your RRSP if you have contribution room.
If you're careful, the cost of your baby’s first year can cost less than you think. You might be surprised to learn that you don't have to cut a single corner to wind up with a low price tag and your baby is better off with the bargain deal.
Nursery - When you're putting together your baby's nursery, it can be difficult to resist splurging. Instead of splurging on the color-coordinated wallpaper and curtain set, consider this: For less than $20 dollars you can stencil the nursery walls. Stencils are practically idiot proof: head to your local craft shop, pick up a brochure and supplies and do a trial run on posterboard.
Furniture and Car Seats - There are two items on which you should spare no expense: your baby's crib and car seat. Do not buy either these items used - they may not be up to current safety standards. To ensure your child's safety, educate yourself first. Check out what consumer reports say about the various brands, talk to other parents, decide what you want and shop at reputable stores for the best price. The rest of your baby's furniture can be purchased new or used. Make sure used furniture isn't painted with lead-based paints. You don't need a separate changing table. Try using a padded surface on top of your baby's dresser or even the floor.
Diapers and Baths - Cloth diapers can be as expensive as disposables if you use a service. If you launder them yourself, cloth diapers can save you money. Costs can vary widely so it's difficult to estimate costs. Talk to other mothers, and decide what feels best to you. Bathing your baby is relatively inexpensive. Spend $20 on an infant tub or take your baby into your own bath. Baby soaps and shampoos cost about the same as adult versions and are gentle on your baby's sensitive skin. In the first few months, you don't need to bathe your baby every single night. A bottle of liquid baby soap should last several months.
Dressing Baby - You don't have to buy your baby many clothes at first. You'll most likely receive most of what he needs as gifts. Before your baby is born, you should buy just one outfit for coming home from the hospital. After you see your baby's size and the size of the pile of presents waiting for you at home, you can buy whatever is still needed. Buy 3-to-6-month sizes; they'll be a big at first, but you'll be amazed at how quickly your baby grows!
Toys and Strollers - Toys are also budget breakers. In the first few weeks, your face is more exciting to your baby than expensive toys. You'll probably get lots of toys from friends and family. When your baby is 3 to 4 weeks old, you can evaluate what you've received and see if there is something else your baby really needs. Expensive strollers are often more of an inconvenience than they're worth. The estimated cost for a stroller is $150 to $300. Consider buying a sling instead. Most cost about $60. A well-designed sling can be used through toddlerhood. Your baby loves to be close to you. A sling keeps him near the warmth of your body and the reassuring sound of your heartbeat.
Feeding Baby - How you feed your baby can have a major impact on your finances. Breastfeeding is free, but there are sometimes a few 'start-up costs' involved. You might need a lactation consultant and a good breast pump can cost as much as $200 to $300. Formula can run as high as $1,500 in a single year. Formula feeding means you'll need a full supply of bottles and nipples, a bottle scrubber and a sterilizer. Soy formulas are more expensive than dairy versions and ready-to-pour canned liquid costs more than powders you have to prepare.
Answer: Everyone should be aware of the steps fraudsters will go to. They probably have affected someone you know. I received a copy of this employee communication from a client, a corporate attorney, who obviously will remain nameless. It provides good advice. Take the time to read this and put in a safe place just in case.
We've all heard horror stories about fraud that is committed by stealing a name, address, Social Insurance Number (SIN), or credit card. Unfortunately, I have firsthand knowledge because my wallet was stolen last month. Within a week the thieves had ordered an expensive monthly cell phone package, applied for a VISA credit card, had a credit line approved to buy a computer, received a PIN number from the Ministry of Transportation to change my driving record information online, and more.
Here's some critical information to limit the damage in case this happens to you:
- We have been told we should cancel our credit cards immediately. The key is having the toll free numbers and your card numbers handy so you know whom to call. Keep those where you can find them.
- File a police report immediately in the jurisdiction where your credit cards, etc. were stolen. This proves to credit providers that you were diligent and this is a first step toward an investigation (if there ever is one).
But here's what is perhaps most important of all:- Equifax Canada: 1-877-249-2705
- Trans Union: 1-877-525-3823
I had never heard of doing that until advised by a bank that called to tell me an application for credit was made over the Internet in my name. The alert means any company that checks your credit knows your information was stolen and they have to contact you by phone to authorize new credit. By the time I was advised to do this, almost two weeks after the theft, all the damage had been done. There are records of all the credit checks initiated by the thieves' purchases, none of which I knew about before placing the alert. Since then, no additional damage has been done, and the thieves threw my wallet away. They seem to have been stopped dead in their tracks. Someone turned in the wallet shortly thereafter.
Here are some more pointers:- The next time you order cheques have only your initials (instead of first name) and last name put on them. If someone takes your cheque book, they will not know if you sign your cheques with just your initials or your first name, but your bank will know how you sign your cheques.
- Do not sign the back of your credit cards. Instead, put 'PHOTO ID REQUIRED'.
- Never keep your birth certificate in your wallet. It is the hardest to replace and is the first piece of identification you need to replace the others.
- When you are writing cheques to pay your credit card accounts, DO NOT put the complete account number on the 'For' line. Instead, just put the last four numbers. The credit card company knows the rest of the number and anyone who might be handling your cheque as it passes through the processing channels won't have access to it.
- Put your work phone number on your cheques instead of your home phone. If you have a PO Box, use that instead of your home address. If you do not have a PO Box, use your work address. Never have your SIN printed on your cheques. You can add it if it is necessary, but if you have it printed, anyone can get it.
- Photocopy contents of your wallet. Do both sides of each license, credit card, etc. You will know what you had in your wallet and all of the account numbers and phone numbers to call and cancel. Keep the photocopy in a safe place. Also carry a photocopy of your passport when you travel, both here and abroad.
These steps may assist you avoid becoming the next victim of identity theft if not make it much more difficult.
Answer: The current difficult economic times has many parents struggling over the cost of Christmas gifts and how it will affect their children this year. There are many families that are going to be forced this season to make choices. Although everyone is affected, the elderly, the parents that have recently been laid-off, and the poorer families, are being hit particularly hard. Unfortunately, the financial reality of 2008 has been poor and things are not expected to improve dramatically by Christmas.
While I certainly do not mean to minimize the pain and difficulties that this Christmas season may bring, it can present opportunities to recapture some of the traditional Canadian family and Christmas values. Our fondest childhood memories are usually those that centered on family involvement. Think about your fondest memories when you were a young child. What were they? Chances are they were something you did with your family. The money or the gifts that may have been involved are not what you typically remember the most. What follows are some suggestions on how to deal with these issues.
- Make some of your own Christmas decorations. Make this a family project and involve the children. This can be inexpensive and fun to do together. There are many craft books chocked full of ideas that can be checked out for free from your library. It is amazing all of the neat things you can make with paper, tape, and string. These things should always be done with - not for - the child.
- Remember stringing popcorn when you were a child? This is still a fun and inexpensive activity that can produce beautiful garland to string around the windows and doors. Again - be sure your children help and are involved.
- An inexpensive children's book makes a wonderful gift that can last over time. I am talking about a book that you read together with your child. One that has content designed so that you can easily discuss the stories with the child. Remember children's books can also be checked out free from your local library.
- Don't forget that if your situation does not allow for buying a book or easily visiting a library, make up your own stories! My grandfather did this with me when I was a child. Those times and stories are among my fondest memories.
- Drive - or walk - around with the family and look at the Christmas lights in your area. Riding together in the car is also a great time to sing a few holiday carols.
- Start a new family tradition: Everyone, including Mom and Dad will make one Christmas gift for each family member. It doesn't have to be fancy or expensive. It will be the thought - and the process - and the love - that will count.
Chances are you still have the small things that your child has made for you tucked away somewhere for safe keeping. Those precious things are the thoughts and memories that I am talking about. Remember your children will be looking to you to understand what is happening and how they should feel. Smile and share your joy for each other and celebrate the season with your children. Do this - and they will smile and celebrate with you. We can't change our difficult financial times and what may be a lean Christmas, but we can greatly influence how our children will experience them.
These ideas may assist you in bringing the family closer at Christmas and to deflect some of its commercial valuations.
Bentley Financial, directed by Steve Bentley, is a financial services firm that was launched in 2003. As a progressive financial services firm, Bentley Financial has developed an extensive portfolio of investment and insurance expertise. We provide our individual and business clients access to a professional advisor team that incorporates a wide range of experience and knowledge in tailoring solutions unique to each client and delivered in their own personal plan. Not every plan is the same. Our team’s unique skills and capabilities allow each plan to be carefully tailored to ensure you realize your dreams. Our mandate is to secure your future goals and ambitions. These change over time and your plan needs to be dynamic and this is why we will be with you every step of the way.
|
|
|
|