Personal Finance Advice

The holiday shopping season started off strong with a busy Thanksgiving weekend but since then many retailers have reported that traffic has slowed considerably.  It is also difficult to quantify how much of an effect the toy recall is having on sales.

At this point it’s shaping up as a disappointing quarter.  However, retailers are still holding out hope for a late surge in holiday sales.

Contrary to popular belief the day after Thanksgiving isn’t the busiest shopping day of the year but rather the weekend just before Christmas.  So, if you’ve been procrastinating don’t worry because you’re not alone. 

At least that’s what retailers are hoping and with them desperate for your business, good bargains can still be had.  Many savvy shoppers also realize that some of the best deals can come after Christmas is over.  Whether it is better to shop toward the beginning or end of the holiday season is still a matter for debate.

However, there are some doubts that this late surge will occur this year.  Consumer confidence has taken a sharp hit the last few months with growing concerns of a recession as well as rising food and energy prices.

Many analysts will be studying these holiday sales figures extensively since consumer spending has such a large impact on our economy.

With the price of oil inching closer to $100 a barrel everyday, home heating bills will rise again this winter.  Those that use home heating oil will be hit the hardest but even those who use natural gas and electric heating systems won’t be spared a hit to the wallet.

While only a minority of the country still uses oil to heat their homes, estimated at around 7%, they are predominantly located in the northeast, where temperatures have been unseasonably warm the past 2 years.  If the weather returns to its normal pattern in the region, consumers there could see their bills rise higher than even what most analysts are anticipating.

But it’s not too late to get ready.  While it can be expensive to convert heating systems, natural gas is substantially cheaper than oil heating and will save you money over the long run.  Utility companies may offer discounts for new customers and your local government will often offer tax credits for the installation of a natural gas heating system as well as for the disposal of your old oil tank.

If you live in an old house, getting new triple paned windows can save you a significant amount of money.  Installing new insulation is another popular method to help conserve heat. 

If the above things are out of your price range then there are still many little things you can do as well, as there are many web sites out there that offer tips on how to “winterize” your home.  If your from a qualified low income family, many local governments will offer programs that provide a subsidy to help assist your heating needs.

How is your child with money?  Do they spend all their money or are they able to save some of it?  Many of us had allowances when we were growing up or had a part time job after school or on weekends which helped us become aware and learn the importance of saving what we earn.

My oldest sister helped me open my first savings account when I was about 10 years old when my family felt I was old enough to have control of the money I had received from birthdays and various holidays.  I remember being excited about opening my first Certificate of Deposit, of course it didn’t hurt that I was getting 12% either not really knowing all that much about inflation at the time. 

As I grew older and got my first job I would usually spend about half of what I earned on video games or hanging out with friends and saved the rest.  By the time I went off to college I had quite a bit saved up and was able to live very comfortably while my friends were surviving on ramen noodles.

Every situation is unique and no matter what your financial status is don’t be afraid to discuss the issue of money with your child.  Many of you must be thinking I don’t want my child to have to worry about money at such an early age but even if you don’t discuss money with children, they will eventually see how you act with money, but will have less understanding in the long run. 

Once you have brought up the topic of money with kids, set a goal that they are able to reach. Perhaps providing an incentive if they save a set amount  of money over a certain time period.  Even if your children fall short of reaching this goal, try to provide encouragement.  Let them spend the money they saved if there was something in particular they were trying to save for.  This will give them a sense of accomplishment. 

Learning how to act wisely with money today can help shape their future spending habits as an adult.