economy

how is the economy affecting you?

Permalink Reply by Heather Olsen on January 3, 2009 at 8:57am: We have seven kids, and our college funds have been hit really hard. We've told them that they might have to rely more on scholarships, so they'd better get to working hard on the grades. Right now I am making my menu for the next two weeks, making my grocery list from that and sticking to a budget more than I ever have before. We've bought board games to replace our entertainment budget (it cost about $100 to take them all to a movie, ice skating etc) I'm driving less, and trying to carpool more. We have to do all this, and my husband has a great job with a great salary. I don't know how people who have been laid off are making ends meet. Our goal now is to be great stewards over what we have and plan every dime so we can help others more with what we have been wasting on unplanned purchases in the past.; ▶ Reply to This

Permalink Reply by Retro on January 3, 2009 at 9:05am: Playing board games is old fun that families have forgotten. I have a choice to go out and I still love playing when friends come over. Kudos to you for buckling down, and doing the best with what you have. Also, kids can get student loans and grants. What you don't want to do is not put into your retirement instead. You can't get a loan to retire.; ▶ Reply to This

Permalink Reply by Heather Olsen on January 3, 2009 at 10:33am: Thanks Retro. That's a great point about retirement. We lucked out with the retirement thing ,going throught the crazy tech stock craze in the 90's with a start up when we were young. We have a good chunk saved, but who knows what will be left with the way things are going now. We have time on our side though- we had hoped to retire at 55 (in 15 years) but we figure now we'll just stick it out like everyone else until 65 since we'll have to pay more for the kids college expenses out of pocket. We are just grateful to have work and be healthy enough to do it.; ▶ Reply to This

Permalink Reply by Meg on January 3, 2009 at 11:02am: Heather...I love that you involve the family in the finances. Many believe that this is something that should not be discussed as a family. We discuss family finances, saving, and the need to cut back on unnecessary expenses with our kids. Although the economy has not hurt us from job standpoint...we have had a substantial drop in retirement and college funds. That said, we will still faithfully contribute; as our oldest will not begin college for 6 years and we will not be eligible for SS for over 10, our goal was to retire at 55, we will see if that will come to fruition. My company matches my 401K contribution up to a certain percent. It is foolish not to take advantage of the free money. Way to go Heather. You would make Suze Orman proud!; ▶ Reply to This

Permalink Reply by Heather Olsen on January 3, 2009 at 3:35pm: Meg- Thanks for the pat on the back :) I read a lot of Dave Ramsey....but maybe have to look into a little Suze Orman too!
You brought up a point that I have been wanting to ask someone "in the know" about 401K. We lowered our contributions to only what the company matches for now because of the downturn- we have a daughter who starts school in two years. What can we do to protect her account? Would it be wise to put it in a safer, lower interest rate vehicle for now?
I haven't done much here on Kiddnation but this is great to talk to other people about how they're handling this stuff!; ▶ Reply to This

Permalink Reply by Meg on January 3, 2009 at 4:31pm: Left a message on your page.:-); ▶ Reply to This

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