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Buying vs. Renting

May 23, 2022

Image From: Mitskavets/Canva Pro

Article By: Kelly Kirk-Xu & Emily Stevens

“Home” can look different for everybody. Some people call a cabin in the woods home. Others call an apartment in the suburbs home. Some people live in transportable homes, while others have considered the same place home for generations. Want to know one of the most significant considerations one must make when looking for their next place to call home? That would be buying vs. renting.

Both buying a home and renting one out have a long list of pros and cons to offer. Walter the Vault is here to list a few to help you teach your child how to make an informed decision in their home-seeking process.  It’s good to talk with your kids about “why” you’re making your choices.  They will learn skills from your strategies and reasoning.

Buying

Buying can be an excellent option for some people seeking more control over their home decisions. Homeowners have more freedom in what you can do in a home you own than renters, like owning pets and decorating it as you please. 

One of the greatest things about buying a home is that it is an investment that you can make work for you in the future if appropriately handled, offering tax benefits and a wealth of other great financial advantages.

This doesn’t mean that buying a home comes without its cons, though. Homeowners still have a list of issues to consider when buying. Home maintenance becomes your responsibility as a homeowner, which can certainly add up. This isn’t all that cost more than renting, though. As a homeowner, you will also have to pay property taxes, and mortgage rates may be higher than renting rates in certain areas. Buying a home is a great option for people looking to settle down but maybe a disadvantage for those who aren’t quite done roaming.

Renting

Renting a house can be convenient for those who are not in a place of their lives to settle in one area just yet. If you don’t intend to stay in your city for long, renting may be the best option for you. That is because rentals can be month-to-month, quarterly, or yearly depending on your landlord. You won’t be responsible for repairs or property taxes, although you will undoubtedly have fewer freedoms with things like owning pets and decorating.

Deciding whether to rent or buy can be deeply personal, and each one can come with different pros and cons for different people. There is no correct answer to which is best, just an answer that feels right to you.


Summer Money Challenges for Kids

May 16, 2022

Image From: Weekend Images Inc from Getty Images Signature/Canva Pro

Article By: Kelly Kirk-Xu & Emily Stevens

Ah, summer- the most beautiful time of the year. The sun is shining, the birds are chirping, and the kids are out of school. While summer is a fun and exciting opportunity for the whole family to spend some extra time together, it can become overwhelming trying to think of new ways to keep your kids entertained.

What better way to keep them entertained than to teach your kids some new financial literacy skills? Few states require schools to teach financial literacy, leaving many kids entering the adult world clueless about handling their money.

If you would like to introduce some money mastering skills to your kids this summer, Walter the Vault has two fun challenges for you!

Creating a Summer Budget

There is nothing more satisfying than reaching a goal, am I right? Here is a challenge for you and your kid. Sit down together and think of a realistic money-saving goal (reaching this goal will be even more appealing if you are saving up for something in particular). Write up a budget together. In this budget, you can include your child’s weekly earnings through chores, allowances, and other money-making opportunities they pursue and how much they can spend each week while still being able to reach the end goal!

A Penny A Day Challenge

This challenge is a great way to instill money-saving habits into your child. It can go through the summer or continue all year round. Encourage your child to put a penny on the first day, two on the second, three on the third, and so on. By the end of the year, your child will have their saving habits off to a great start. This is also a fun way to teach them about compound interest! To keep track of the challenge, you can create a chart or search for a free one online to print and mark off each day!

Summer Money Making

Ask your kids to make a list of their skills & interests… then have them think about which of those items could make their money.  Encourage your kids to try out a business of their own.  Become entrepreneurs!  They can try out running a popular business like a garage sale or lemonade stand.  They’ll see that it’s actually quite tough to make money – but it’s very rewarding as well.  Plus, you can ask them to brainstorm why they want to make money, and what they plan to spend their money on.

Summer money challenges don’t have to be extravagant to teach your child money mastering habits! These are just a few challenges to get your child’s summer money challenge started!


Turning Negative Thoughts Toward Money, Positive

May 9, 2022

Image From: globalmoments from Getty Images/Canva Pro

Article By: Kelly Kirk-Xu & Emily Stevens

Do thoughts about money leave you feeling anxious, irritable, or overwhelmed? Sometimes, our childhood or even young adulthood can impact our entire outlook on money, leaving us with a bad taste in our mouth when it comes to anything dealing with finances.  The bad taste can also make us less likely to face our money problems.  We may avoid them, since it’s such a horrible topic to think about… which can lead to even more problems!  

When you have a negative relationship with money, it can be difficult to teach your child healthy money habits. No worries! Walt the Vault is here to help you turn those negative thoughts positive.  A wise person once said, “if you are prepared, you don’t have to be scared”.  So prepare yourself and your family with money skills that will last a lifetime.

Keep a Journal

One of the first steps to turning negative thoughts positive is to build self-awareness around them. Keeping a journal is a great way to observe your thoughts and figure out ways to turn them around. It can also be a great way of keeping track of your relationship with money. In a journal, you can keep track of your emotions and thoughts about money, the way you have felt about it in the past compared to today, and your money goals for the future.

Begin with Short-Term, Easily Achievable Money Goals

Starting with easily achievable goals and gradually making them more difficult is a great way to build your confidence in money. Write down a small money goal and allow yourself to bask in the glory of achieving it.  It sometimes may even make sense to break that small goal into even smaller goals.  Get your goal to a place where you’re comfortable taking the first step – then start from there!  Build up the momentum and make your dreams come true.

Know Your Long-Term Money Goals

When you have long-term money goals to work toward, it can help you create smaller plans that will get you closer to your ultimate end goal! As you take each step closer to achieving your greatest money dreams, allow yourself to celebrate and watch as your relationship with money takes a turn for the positive.  Your end goal may end up changing along the way (which is totally fine!) What’s most important is to just get started down the right path.

Talk to a Therapist

Sometimes, our money issues go much deeper than anything we can work through ourselves. There is no shame in seeking the help of a professional to build a healthier, more positive relationship with money!


Teaching Your Kids About Setting Realistic Expectations

May 2, 2022

Image From: Markus Spiske temporausch/Canva Pro

Article By: Kelly Kirk-Xu & Emily Stevens

As your child is still working on getting a grip on the value of money, they may have expectations for your wallet that are far too difficult to meet. Have you found that your child expects the newest and coolest toy they can see every time you make a grocery run? Does your teenager expect weekly mall trips to make sure they can keep up with the latest trends in school?

Sometimes, our children can build a habit of expecting our money to stretch as far as they wish it to, which can quickly become a problem. Whether your child is younger or older, it is always a great time to teach them about setting realistic expectations for money.

You can teach your child how to set realistic expectations through just a few pieces of advice. Walter the Vault is here to help you do just that.

Be Open About Finances

When you sit down to plan your family budget, you may benefit from including your kids in the discussion. Let them know how much money you have, where it is going, and how much is available to spend on fun things without breaking the bank. They may be very surprised to hear about how quickly money can be spent.  They will likely have a better understanding of your reasonings – and why you can’t buy everything on your “wants” list.  This is a great way to teach your kids about the value of each thing they purchase, helping them be more mindful when it comes to the things they buy.

Let Them Make Their Own Money Decisions

We all learn best from experience. This is why giving your kids their own money to manage may be a great way to teach them about setting realistic expectations for what they can and cannot afford.  Plus, when they spend THEIR money (versus YOURS) they may realize that the random toy they *sorta-kinda* wanted may not be worth it after all.

Know That it is Okay to Say No

Setting boundaries with your child around spending habits can help them learn how to realistically manage their expectations of money. While I know that you don’t want to be the cause of turning that adorable smile upside down, setting boundaries can be a great learning experience for your child that will benefit them in the long run!  The alternative would be saying “yes” to everything, which is extremely unrealistic for their experience outside of your home.  It’s good for kids to learn what it is like to hear “no” and learn to work for themselves to get things they really want.  


Planning for Retirement from a Young Age

April 25, 2022

Image From: Wavetop from Getty Images/Canva Pro

Article By: Kelly Kirk-Xu & Emily Stevens

I know what you’re thinking- how could I even begin to think about my child’s retirement options when I’m not even retired? While it may make you feel a bit older than you are ready to feel, it is never too early to plan for your child’s future. Yes, from the moment your kid gets their first job – they’re qualified to open tax-friendly accounts that help them save for retirement.  The younger a person starts planning for retirement, the larger their head-start on retirement savings will be.  

If your child has worked a summer job or landed some money-earning gigs like babysitting, they may be eligible to open a Roth IRA.  

A Roth I.R.A. is an account that can allow your child to grow their investments tax-free.

To open a Roth I.R.A., your child will have to have a parent or guardian’s permission and acceptance of responsibility. By this, I mean you, as their parent, will have to agree to manage and open the custodial account for them until they are 18 years of age.

While it may be a little challenging to get your child to wrap their head around saving up their hard-earned cash for the future, they don’t have to be the only ones contributing. Since you will also have access to the account, you will have the perfect opportunity to contribute to your child’s future yourself!  Additionally, you can help them look at charts and fun bar graphs to see how their money can grow.  Start researching the cost of things they may want to buy in the future (a car, house, college tuition, fun holidays) and show them how possible their desires will be if they make small sacrifices now.  

Teaching kids about compound interest is one of the coolest things you can do, too.  Ask a kid if they’d rather take a job for a month, making $100/day OR making $10/day to start, but doubling each day.  Once they’ve given you an answer, work out what the monthly total will be… and you’ll see – they’ll be blown away by the power of compound interest.  You can then do some research together about how to start investing and get compound interest working for you!

Every penny counts when starting investments early, so no amount is really too small to contribute. You can match what your child contributes, double it, or just contribute when you have some extra cash if you decide to do so!

Research your child’s retirement planning options with them. Different options will have different account minimums and fees. Choose the option that works best for you and your teenager and sit back as your money master builds wealth for their future. 


Greed vs. Need

April 18, 2022

Image From:  annakraynova/Canva Pro

Article By: Kelly Kirk-Xu & Emily Stevens

In a world of consumerism, we all struggle to differentiate between our wants and needs from time to time. And this is true for consumers of all ages!! As we scroll through Instagram and see that influencer’s fashionable outfit, the temptation can make it feel like a need.  When we see a commercial for the latest iPhone, its hard not to look at your current phone and feel like you could use an upgrade. That juicy hamburger on your television may get your tummy rumbling and have you driving to McDonald’s before you even realize what is happening.

Our children are no exception to these desires. Has your little one become a little obsessed with having the newest things? Most parents have dealt with that “I want it!” stage. You know, the stage where you have to avoid the toy aisle at all costs.

Well, this just might be the perfect time to begin teaching your little one the differences between “wants” and “needs.”  Not everything they “want” is worth their time and money.   That sounds great and all, but you may be struggling to figure out just where to start. No worries! Walter the Vault has got your back!

Lead by Example

Have your consumption habits gotten out of hand recently? Our children learn the most from the behaviors they see from us, the parents. Talk through some buying decisions with your future money masters.  It’s good for them to hear about your struggles and decision making processes.  They will hear that their role models have to resist temptations as well, and learn from your example.

For example, imagine you have just watched a commercial for the newest model of that luxury car you’ve been dreaming of. Mention how much you would love the car to your child and talk to them about why you cannot just purchase it right then and there.  You can talk about budgeting, expenses, and setting realistic expectations.  Sometimes “imagining” having something can be just as good as actually having it.  You can play pretend and talk about all of the things you’d do “if” you had that thing.  Eventually, your kids (or your own) interests may move onto something new.  And if so, well done!  You avoided a huge expense, while still enjoying the benefits of *pretending* to own it. 🙂

It’s Okay to Say No

Parents tend to do whatever it takes to make their little ones happy. But did you know that too much instant gratification can reduce happiness? It is perfectly okay to pick and choose the things you decide to say “yes” to.  It may even be helpful to list off all of the things you’ve recently said “yes” to, to help your little ones realize that you actually have quite a lot.  Practicing gratitude can be a wonderful habit.

Teach Them the Value of Money

Let’s face it- life can get expensive. When your child has no concept of the value of money, they may see no reason why they can’t get what they want.  I mean, they see that you have money – so why not spend it on what they want?  Check out some of our other posts to learn more about teaching your child about the value of money!  It’s important to learn that we can assign a job to each dollar.  Some money will be spent on bills, some will be spent on housing, some on transportation, and whats left can be spend on extra nonessentials.  Teaching your kids this reasoning and these habits will help them understand the decision making process when it comes to spending their money. 


Should You Spoil Your Grandkids?

April 11, 2022

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Article By: Kelly Kirk-Xu & Emily Stevens

Grandchildren are one of the greatest joys in a person’s life. They fill up any room they enter with giggles and joy and can help you see the magic in life again.  As you have gotten older and realized just how valuable each fleeting moment is, getting to be with your grandchild feels just that much more special.

It’s only natural to want to give that cute face everything their heart desires. I mean, who wouldn’t want to be the reason their grandchild’s eyes light up, or for that ear to ear grin, or for those happy giggles? But, what happens when the spoiling gets out of hand?

Over-indulging your grandchild can lead to a number of issues within the entire family, including:

  • Behavioral issues
  • Boundaries being crossed
  • Tensions arising

Nobody wants to encounter this. That is why Walter the Vault has developed three tips for spoiling your grandchildren in a way that benefits everybody!  Balance is key – and it’s good to make sure short-term choice lead to long-term success.

Prioritize Experiences and Memories Over Material Items

It can be easy to fall into the trap of thinking your grandchild needs every new toy or outfit you see in the store. They deserve it, right?  They’re so cute!!  However, this habit can create expectations from your grandchildren that can actually impact their relationship with impulsivity, patience, and delayed gratification! When your grandchild grows to expect a gift every time they see you, the relationship can suffer.  If you ever DON’T give the a gift, they may feel disappointed.  Its almost like you mistakenly conditioned them to expect gifts from you – when, really, you want to share and spread love.  You want them to appreciate your time together.  This is why you may benefit from spoiling your grandchild with fun experiences and activities over gifts and material items. Together, you will build memories to last a lifetime.

It’s the Little Things That Count

Grandparents are known to indulge their grandkids every once in a while. Put your heart into the little indulgences, like taking the kids for a trip to grab a Happy Meal, letting them have that extra scoop of ice cream, or picking up that goofy Congratulations card when you’re feeling proud of them. Little things can add up to grand memories of the love you have for your grandchild.

Spoil Them with “I Love You”

You can’t go wrong with showing your grandchildren a little affection. Let them know just how much you love them through little acts of love. Tell them you love them and what they’re doing well. Write them a letter when you’re thinking about them. Show off their little pieces of art on your fridge. Making your grandchild feel special through little acts of love and attention will go a long way.


Spring Cleaning and Donating (Tax Benefits)

April 4, 2022

Image From: yavdate from Getty Images/Canva Pro

Article By: Kelly Kirk-Xu & Emily Stevens

As the flowers bloom, the sun shines just a little bit longer, and the weather finally begins to warm up again, we all know what time is coming. Yes, with the early spring blossoms comes a great opportunity to purge your clutter. In other words, it’s spring cleaning time!

Spring cleaning is the perfect opportunity to gather your money masters and help them learn about decluttering, donations, gratitude, and giving. That isn’t all spring cleaning is good for, though. Did you know that those donations can actually bring you great benefits come tax season?  Charitable donations can help you save money on taxes.

Yes, as you Marie Kondo your entire home and send the extra items to be donated, you could be cutting your tax bill. How does one get the most tax benefits out of their donations? Well, Walter the Vault is here to help you learn how.

Donate to Tax-Exempt Organizations in Your Area

There are many well-known tax-exempt organizations with locations all over the place, such as Habitat for Humanity, Goodwill, and the Salvation Army. If you have a specific organization you like to donate to, but don’t know if they fall under this category, give them a call and ask about it. There is also a tool to help with that known as the Tax Exempt Organization Search.

Collect Those Receipts

When you donate to these organizations, collect receipts. Save each and every one of them so you can easily record every donation. You may want to take pictures of the products to help determine the value of your donated items. There are limitations on what is eligible for tax benefits and what is not, so you will have to do your research. There is also a limit for how much you can claim under non-cash donations. You can check out the IRS website to find out this information.  Some people choose to max out their donations in each of these categories to take full advantage of this opportunity – while simultaneously helping others!

This is also a great “teaching experience” for your kids to learn about, as well.  You can ask them what items they’d like to donate from their personal collection.  After, you can determine the value of each item and make a list.  They can help contribute to your tax savings, as well!

Taxes are a more complex piece of the money mastering puzzle. Get your donation and tax receipts organized and let your mini money masters see you bask in the benefits of your spring-cleaning donations come tax season. 


Teaching Kids About Delayed Gratification

March 28, 2022
Image From: Rifka Hayati from Getty Images Signature/Canva Pro

Article By: Kelly Kirk-Xu & Emily Stevens

In a world full of speedy deliveries, streaming services, and meals that are ready in one minute, it is no wonder so many of us have fallen into an, “I want it, I got it,” mindset.  Sometimes, we end up getting more than we want or need.  We spend money without even thinking… only to, later, look at our bank accounts and question how the balance got so high??

 Teaching your child about the importance and satisfaction of delayed gratification may just be what prevents them from drowning in debt in adulthood. Walter the Vault is here to help you teach your kid about delayed gratification- before the buy-it-now, pay-it-later temptation has a chance to grab hold of them. 

We’ve all been there: you’re cruising down the grocery store and accidentally pass the dreaded toy aisle. The first sparkling doll calls your child’s name and an explosion of “please, Mommy” and tears suddenly erupt. While this is certainly a stressful situation, it is one that provides you the perfect teaching opportunity about delayed gratification. 

Have your little one create a list of the things they want. Every time they see something new they’d like, you can pull up the Notes app in your phone or pull out an old-school pen and paper and write it down along with the price. Sit your child down and help them set money goals. You can ask which wants are top priorities, how much money they currently have, and what they have to do to save enough for their dream toy.  As kids learn that resources are limited, and they only have a certain amount of money to spend on discretionary items, they’ll learn to prioritize their purchases – and resist the impulse buys.  This can be a great strategy for parents to practice as well.  You all can talk about your experience together!  It’s alright to give kids a peek into your thoughts, accomplishments, and struggles.

Your child will likely slip up a time or two as they get a grasp onto the value of holding out on small, insignificant wants for larger, more important ones. That is perfectly fine. This is why it is so great to start teaching them young. It allows them to get the tough mistakes that come with learning out of the way before they can land them in thousands of dollars in debt. 


Teaching Kids About Comparison

March 21, 2022
Image From: ljubaphoto from Getty Images Signature/Canva Pro

Article By: Kelly Kirk-Xu & Emily Stevens

Have you ever heard the saying, “Keeping up with the Joneses?” We all do it from time to time, we try to “keep up” with the community around us – with the latest trends, cool holidays, fun parties. As we see that old friend from high school post about their most recent luxury vacation, the green eyed monster of jealousy seems to just take over and we begin wondering why we can’t have their life!? It’s not fair!!!  Especially with the impact that social media has these days, it’s hard to avoid seeing how “great” others appear to be doing!! Though… is it the whole story?  And… is sending out the message that “your life is so great and glamorous” really THAT important?  

Our opinion: Of course not!! Not if it’s a waste of money and not actually making you happy.

The issue with comparison (and especially comparing ourselves to others) is that we often forget that everybody has different versions of happiness. While some of us are happy traveling the world, others might be happy spending their money on growing a farm. Comparison has been said to be the thief of joy and, in my opinion, this couldn’t be more true. 

Comparison fogs our vision, preventing us from finding contentment and loving the life we have been blessed with. We all have different loves, passions, and talents.  Perhaps, instead of comparing ourselves to others, we can compare ourselves… to ourselves!  Look at yourself last year (or 5 years ago) versus today… how have things improved or declined?  What can you work on to be a “better you”? 

Kids are often comparing themselves to others.  Growing up, it can be easy to question your self-worth and your “place in the world”.  Do you really “belong” or do you feel like you’re an “imposter”?  These feelings can be very common and normal.  Teaching your children about contentment from a young age will likely follow them to adulthood, helping them find happiness with the life they have and preventing them from falling into debt while trying to “keep up with the Joneses.” A few tips for helping your child (and yourself!) combat comparison include:

  • Teaching them that their best is good enough 
  • Celebrating personal growth rather than the end results
  • Encouraging them to set and pursue goals THEY want to accomplish
  • Encouraging them to embrace their uniqueness
  • Having them name three things they love about themselves daily. 

When a person focuses on their own goals, their own talents, and their own passions, they will be less likely to get caught up in the comparison game.  Additionally, we don’t want to be obsessed with comparing ourselves to others, because, we only see a “filtered” version of others.  People often show of their “best” moments… while, with ourselves, we see every moment!  This isn’t a fair comparison.  

We all have a unique version of success and happiness. Getting caught up in trying to conform to society’s version of success will only leave a person feeling unfulfilled and unhappy. Let’s teach both our children and ourselves that our best IS good enough, what we have IS enough, and our goals ARE something worth pursuing.  Are you working hard to be the best version of “you”?  Remember, that’s enough.  You are awesome!!


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