Stashing cash around the house is anything but harmless. It can seem like a fun, creative way to save money – $100 bills stuffed in the bottom of a cookie jar, $50 bills stuck between the pages of a book, even more money buried in the backyard. But it is actually a dumb and unsafe way to hold on to your money. Here are several reasons why hiding cash around the house is a bad idea:

1. You are missing out on ‘free’ money
2. The money is not FDIC-insured
3. You could loose the money
4. The money may not be covered by renters or home insurance
5. You are losing out to inflation
6. A loved one might end up having to search for hidden money upon your death

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Teaching your children about money at any stage is going to take time on your part. It won’t always be easy. But if you want your children to know how to successfully manage their money when they get older, taking the time will be worth it.

One of the best ways to teach your kids about handling money is to give them a chance to make some of their own! With the

Teen Entrepreneur Toolbox you’ll get all the tools you need to help them start their own business and learn real-world skills.

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When is the best time to talk to your kids about money?

Right now.

Your kids will learn about money from someone. If you want to change your family tree, you’ve got to change your mind-set.

Here are five tips for talking to your kids about money:

1. Start slow
2. Be honest
3. Talk values, not figures
4. Set family goals
5. Learn about money together

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Sometimes a big-ticket purchase is nothing more than a waste of money. Spending money on expensive things you don’t need is a surefire way to deplete your bank account and lower your net worth. many big-ticket purchases are made on impulse or otherwise represent poor judgement. If you really can afford to buy a costly status symbol, rog right ahead. However, if you want to get the most out of your money, there are many expensive items that you can and should live without. Here are several examples of big expenditures you shouldn’t make:

1. Timeshares
2. Recreational vehicles
3. New cars
4. Designer clothing
5. Cutting edge technology
6. Toys for grown-ups
7. Watches that cost a bundle
8. Expensive vacation trips

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There are ways to conquer your money fears:

1. Money is a tool. Period. It isn’t a symbol of anything, unless you place that belief onto it.
2. It doesn’t matter what anyone else earns or spends.
3. True wealth is the ability to live aligned with your values, not someone else’s.
4. Financial security means being able to withstand unexpected setbacks.
5. If money can fix it, it’s not a real problem.
6. Happiness is knowing the difference between needs and wants and living it.
7. I don’t care how warm and fuzzy the TV commercials from financial institutions are; the companies that pay for them have their best interests at heart.
8. The job of advertising (all advertising) is to convince you to buy what they are selling
9. Your “number” – that’s the amount of money that will be sufficient to satisfy your goals – is uniquely yours.
10. Your money history creates your beliefs, behaviors and habits.
11. Give yourself a money motto – save for a rainy day
12. Make sure you and your partner are on the same page
13. Your financial life does not have to be complicated
14. Avoid hot stock, the hot IPO and the hot fund manager – unless you are prepared to loose
15. Most people understand less about money and financial issues than you do, even if you don’t think that is true
16. You biases control your decisions. Just because you believe it doesn’t make it true
17. Before you sign onto working with any financial advisor, read the fine print, ask questions and get a clear picture of any conflicts of interest
18. Financial success is not a set-it-and-forget it process. It should not consume your life
19. Ask yourself what threatens your financial stability. Identify the risks and work like hell to mitigate those risks wherever possible
20. Your money life doesn’t have to be a source of pain, discomfort and certainly not terrors. Past mistakes are in the past.

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Taking money out of your employer’s 401(k) plan while you’re still on its payroll is about to get easier. The federal government’s new rules about “economic hardship” withdrawals from retirement savings plans like 401(k) go into effect  in January 2020. Pulling money out of your retirement savings before retirement is, generally speaking, a bad idea. That’s why personal finance experts, including me, urge cautions before using the new rules to make an early withdrawal. Americans, on average, are under saved for retirement. The idea of premature extracting money from a retirement plan in an era when people are under saved doesn’t seem great.

Reason for an early 401(k) withdrawal:

• Medical care expenses for the employee, the employee’s spouse, dependents or beneficiary
• Costs directly related to the purchase of an employee’s principal residence (excluding mortgage payments)
• Tuition, related educational fees and room and board expenses
• Payments necessary to prevent the eviction of the employee’s
• Funeral expenses for the employee, the employee’s spouse, children, dependents
• Certain expenses to repair damage to the employee’s principal residence
• * 401(k) early withdrawals vs. loans: loan will not require a tax penalty and can be used for the above mentioned items

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Seniors flying Southwest Airlines will soon have to pay full price for their airfares. The airline plans to discontinue its senior citizen discount on Dec. 11, according to an announcement on its website. Senior passengers will still be able to take advantage of Southwest’s other perks like no-change fees and two free checked bags. Refunds are still also available with the airline’s “Anytime” and “Business Select” fares. Just because Southwest is sunsetting its senior discount fares doesn’t mean seniors are now relegated to paying full price. Other major carriers still offer discounts to flyers aged 50 and up.

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Out of the blue, you receive a phone call from the IRS saying that you must immediately pay $5,000 or you will be arrested. What are the chances that this call is legitimate?

a. 0 percent

b. 50 percent

c. 75 percent

a. This goes for an angry phone call from the Social Security Administration, too.

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Among women in their 50’s, which group is at greater risk of a lower standard of living in retirement, per a recent study by the Center for Retirement Research at Boston College?

a. Single women

b. Married women

b. One reason why, says the center, is that two-earner couples tend to under save for retirement. In about half of these couples, only one of these couples, only one of the earners has a retirement plan and may not save enough for both spouses.

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Five years ago a violation for texting while driving would raise your insurance rates about 1 percent, the insurance website the Zebra reports. How much will it raise your rates now?

a. 5 percent

b. 10 percent

c. 15 percent

d. 20 percent

d. Your rates will rise an average of 20 percent, or $289, according to the Zebra-and more than 50 percent in some states.

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