Teaching our youth to look to their future

Our youngest child (2nd grade) just received a project from the teacher requesting that she and her classmates to create something. I wonder if this is how they are teaching our youth to look to their future, or simply trying to get parents to think outside of the box that they may be in.

Keep in mind that it is somewhat involved in that they have to write a paragraph on what the invention is, but also have to draw a quick picture of what it should look like, and even a small model of the invention. My wife and I are ready to go but are trying to get her to think it through. She’s already come up with something that is pretty nice and has good intentions.

But I wonder what some of the parents are going to do. I know that my wife and I will probably over think it, or get our child to over-reach, but we’re trying to think outside the box.

Paper mache deer mask Paper Mache cat mask

I can remember when our oldest two children were asked to make a mask for their 3rd grade class. The school was looking for something like a face drawn on the back of a paper plate that they could use a rubber band or similar item to hold it onto their face. Just to show what kind of insane parents we are, we asked them if they would like to do a paper maché mask. They said, "That sounds really neat mom & dad!" :-) Well, that’s just what they did and most of the work was done by them. After all, mixing up the paper maché goop and letting them dip newspaper into it and then putting it onto a latex balloon didn’t required that much work. They even painted the masks themselves after I dried them very well using a hair dryer. The whole process took about 3-4 days even though they did it in addition to their homework. If they push themselves for something as simple as creating a mask, then they will most likely push themselves for doing other things just as much or more.

Final thoughts: Our belief is that children should be taught to strive for a balance between pushing themselves to maximize accomplishments while enjoying their youth.

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Are you smarter than 12th grade economics

I was perusing around the web a couple days ago and strolled onto this little economics test. Now all you have to do is answer are you smarter than 12th grade economics?

Are you smarter than a 12th grader in economics 101?

I did end up missing one of the questions, number 5 which would have been a 90%. So what did you score?

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Save money so you can still live life to the fullest

I know this has been written about before, but I want to chime in on this as well. When you are younger, while you have a lot of things you want to do and so little time to do it, you should make it a point to start saving from your very 1st paycheck. You can save money so you can still live life to the fullest by avoiding debt for anything other than a house or education only.

First, the reason for this post is twofold. I was visiting Jacob's website over at Early Retirement Extreme, and secondly my own personal circumstances and lack of foresight, or inability to see the forest through the trees.

What do most kids want to be when they grow up? Rich. Yes, we all wanted that when we were younger, however we may have let one or more things cloud our judgements on where to spend our hard earned cash. And in some cases, we did something even worse to ourselves … signed up for that store credit card and may have chosen not to pay it in full when the bill arrived in the mail (*head smash*). Keep in mind that I don't hate credit cards, but I do not like the ease at which you can chop off your own foot, with swipes of the card. I also don't believe that it is the credit card company's fault for providing you credit that you may never repay.

Let's say you're 17 or 18 getting your first part time job. You really want that ultimate video game, gorgeous pumps, awesome tattoo, great set of wheels, etc. But unless you are buying something with money that you earned at least 1 year ago, you are doing yourself a terrible disservice. Think in a more simplistic way when you're working, by taking your entire take home paycheck and putting it in the bank and not touching it. You are after all 17 or 18 years old, and your parents will often still be feeding you, clothing you, and keeping a roof over your head. That covers ALL your basic necessities, so for the first year don't spend a penny of your paycheck and put it into a high yield savings account, or even better yet into a brokerage account. You also didn’t have that much money just the year before that. After that 1st year, go ahead an spend some of the money that your investments have generated. Continue reading

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Price gouging fines should be returned to those affected

Upon driving to work this morning I heard the newscast state that some of the companies involved in price gouging during Hurricane Sandy would receive fines for overcharging customers during a crisis. I believe that the price gouging fines should be returned to those affected by the judgement against those companies receiving the fines, from the state of NJ.

There were a few companies that performed the price gouging during Hurricane Sandy. Price gouging is an act where they charge at least 10% more than the going rate within a certain timeframe. As an example, for the purchase of items such as gasoline, propane, etc. Here’s an article regarding the crackdown on this ridiculous crime. Continue reading

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Ensure that you document how you want your wealth distributed

A discussion between my wife and myself recently arose regarding family finances and how to minimize potential problems of passing on one’s assets. One of your most important parts of building wealth is to ensure that you document how you want your wealth distributed, or passed forward to your heirs. Granted if you do not, it will go through the probate process which can be very long depending upon the state and how many legalities they have to verify.

I know that in our own case, I have my wife setup for 100% primary beneficiary, and each of our children set up at 25% contingent beneficiaries since there are 4 of them. That is for all of the checking, savings, retirement, and insurance accounts. While my wife is listed on our combined debts, although I am considering changing that. I need to research what the guidelines are in our state (NJ), regarding debts and surviving spouses. Continue reading

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Maintenance of yard equipment knowledge you may be able to use

I’m a bit handy as most of my family and friends know, from basic housing repairs to maintenance of yard equipment. As luck would have it, our gas powered trimmer stopped working at the end of last season and I had completely forgotten about it. Hopefully I can make you aware of some maintenance of yard equipment knowledge you may be able to use.

Since it’s a gas powered trimmer, I tried to see if I could prime the engine by using the prime bulb. That’s the device that’s in between the gas tank and the carburetor used to start getting fuel closer to the engine.

Why do I think this may benefit some folks? Knowing that they can go to the store and pay $10 or less to get a few of these bulbs could prevent them from having to pay an additional $65-$200 to replace the trimmer with a new one. Continue reading

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The good market is now, what is your exit plan

The stock market is at all-time highs. With the DJIA and the S&500 are both at their highest levels in 5 years. Since the good market is now, what is your exit plan. After all, you should pick a point either in time or at a certain level for when you want to get out of the market.

Keep in mind that I’m not referring to getting out of the market for good, because even the folks that are retired should have some level of their investments in the higher risk investments that aren’t just bond funds. We should all make the decisions for when we need to … or can afford to … be in the market, with the caveat that it could always go down. The old rule of “Buy Low, sell high” should always be in the back of one’s mind when investing in the market. That is even if you are investing in bond funds. Continue reading

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Shares per transaction costs, per dividend

I had previously analyzed how some transaction costs can really hurt your bottom line. this is when you are examining the number of shares per transaction costs, per dividend. Another way to look at things may be how much the dividend is, as compared to the shares per transaction fee.

I recently analyzed a buy order and the stock would have required either an increase in the stock price by the exact same amount of the dividend per quarter, or of course the actual dividend coming through in order to hit a break-even point on the stock purchase. This has the effect of making the stock purchase more risky since there was a 50/50 chance that it would be a good buy at the current stock price and with the given number of shares. Keep in mind that this is usually when you’re talking about a low number of shares purchased.
Continue reading

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Reason for being in the market

What is the single most important item you should consider when making any stock/fund purchase if you are “in the market”? It is simply to understand what is the reason for being in the market. There can be many different reasons for being in the market or not to be in the market, including but not limited to: portfolio growth (very risky), safe growth (not so risky), etc.

This is where you your choices to maintain or grow the balance in your portfolio to ensure success. You wouldn’t want to make a very large purchase only to watch the stock drop several months after taking most of your assets with it, right? Unless you’re a fool who can easily be separated from his assets, I wouldn’t think that you would want to take this path. Continue reading

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Corporate America is bad while people are good

Do you find yourself driven to get angry at corporate America, only to be driven into it’s arms? I mean, if corporate America is bad while people are good, doesn’t that sound you’re limiting yourself by focusing only on yourself in a bad way?

As I was heading in to work this morning, I heard a woman on the radio protesting rate hikes for the Jersey Central Power & Light (JCP&L) company, saying that they should be digging into their corporate profits not the customer’s pockets to pay. This is where the double-edged sword or bipennis gladio comes in as I see it. Her complaint was an often heard one regarding rate hikes to pay for losses associated with some kind of a disaster, natural or otherwise.
She could have chosen to purchase some shares of JCP&L and since they pay a decent dividend of $2.20/share or 4.8%/year currently, helped to hold back any impact to her bottom line by using the profits that she received from “the corporation” and used that to pay any additional increase that occurred. This would be the philosophical version of simply flipping the double-edged sword over, but maybe it may make her feel better in the end.
After all, don’t a lot of us work for a company that may want to be profitable in order to increase our paycheck and their own profits at the same time? Isn’t that the goal of a business in the first place, and thus the employees that work for the business? I see it as a symbiotic relationship, the corporation needs us just as much as we need it.

PS: At a quick glance, the ex-dividend date is 5/3/2013 currently, so if you want to get in on the dividend just buy some shares before that date. :-)

Final thoughts: Double-edged circumstances abound throughout life. Some swords are dull, while others are razor sharp. Deciding what is in our best interest is important, but also helping others is imperative in helping us to keep forward momentum as a species.

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