Your Child's Bank Account

By charlie reese

Most adults are used to making, and sticking to, their household budget. Your income is so much, your expenses are so much and in order to make it all work, you've got to toe the line to make ends meet and achieve other longer term goals as possible. If you're paid twice a month, you need to coordinate bill payments, food and whatever else to that schedule. We all know that we should set aside a little of our earnings in a savings account, but in reality, few of us do. Even if you do make regular deposits to your savings, an emergency can put a big dent in that account overnight. In the current economy, this money management can be difficult for adults, so it's no wonder that kids have very little understanding of the value of money.

This is why, when you go shopping with young children, they can't understand why you might refuse to buy a toy or other fun item that catches their eye. Hey, Mom, it's only $10! They see a flat screen TV with a $600 price tag, so $10 sounds like a minuscule sum. One way to teach your child about money is with that child's bank account, opened with their name and you as the trustee. This means you must approve their purchases and keep track of statements. When you open a child's bank account, they see their name printed on the account, along with yours. This strategy gives your child a sense of power and control over their own money, making it much more likely that they'll see exactly how far their money goes.

Without such a child's bank account, you may buy a number of toys, games, craft items and the like, several times throughout the month, easily totaling $50 or more. Now, if you open a bank account for your child with an initial deposit of $50, that child will feel like Bill Gates " until they start spending it. Let's say you give your child an allowance of $20 per week, which must be deposited in the account every week.

At the same time as you open the child's bank account, open a savings account as well. Let your child know that he must deposit at least $3 of his weekly allowance into the savings account and that the money must be saved, not withdrawn. Explain that the bank will pay him a small sum for every dollar that remains in that savings account. Following this plan, at the end of one year, that savings account will hold more than $150. Meanwhile, your child's bank account affords close to $70 of spending money each month. Any kid can get behind such a program.

You might expect that most kids will want to spend it all at once, as soon as it's in the bank. The first week will surely turn up a $15 game or toy they'll want. Just let them know that, once spent, it's gone and you won't be refreshing their money supply until it's due. Point out that the desired item will likely be there next week, and keeping their money this week means double the spending power next week. Sooner or later, they'll catch on and begin being more thoughtful and less frivolous in their spending habits. The child's savings account also looks better and better, over time.

Teach them to record their purchases, writing out how much and for what. Go over their register with them each month, teaching them how to balance their account and reviewing expenditures, for value received in each choice.

One great advantage to a child's bank account lies in the child's perception of ownership and control. If they spend all their money, it was they who did it. They'll also learn the value of saving a portion of their income. Your child will leave the nest with a far better understanding of money management than most. - 23229

About the Author:

Charlie Reese likes giving banking and psychic advice on his horoscope website weekly.

Government Auctions Tax Lien Sales and How to Profit From Them

By Chris McKay

Every time someone defaults on their property taxes, the government can foreclose on their home. It's a common practice, and by the way things are going, they'll be listing foreclosures even more in the future. It goes without saying that this is a terrible ordeal for any homeowner, but there is a bright spot in the form of a tax lien auction as outlined in this article. In fact, a tax lien can help a homeowner prevent foreclosure while providing an a good investment, so it can actually turn out to be a win-win situation!

A public property tax sale, also known as 'property tax liens', are auctions organized by local government councils in an effort to dispose of tax debt. What occurs is that the public bids on the debt owed by the property owner. For argument sake say you are the winning bidder. That means you are paying off the tax debt on behalf of the property owner by buying a tax lien certificate which establishes you as the new lender to the property owner. The property owner has to pay you back with interest before the expiration of the redemption period as predefined by the government. This redemption period can be any time between 6 months to 4 years.

The homeowner must then pay the winner back all their money plus interest by a specific date. The date will be determined and agreed upon by both parties. The lender is allowed to raise the interest anytime the homeowner fails to make a payment. If the homeowner continues to fail on the payments, the winning bidder will then be permitted to take over the home and the title. Either by profiting on the interest or by receiving the title to the home, the lender wins both ways.

Even more, the lender can sell the property after obtaining the title. Imagine how much money they can profit from doing that! It's always best for the owner to keep up with all mortgage and tax payments, but sometimes financial problems can prevent that. Since we're still going through an economic collapse, the odds are more often than not AGAINST the struggling homeowner.

A tax deed sales is not exactly the same as a tax lien sale. The only thing the two have in common are that they're sold at government auctions. A tax deed sale means that the government is selling the actual home and title, and the highest bidder will win the rights to the home immediately. The current homeowners have no choice but to move out. Depending on the local and state laws the auction winner may be responsible to cover all additional liens against the property. This information is public information so it is vital to know of any outstanding liens as you wouldn't want to encounter any surprise expenses here.

Obviously, there are great opportunities for profit at government auctions, whether by earning money through tax lien sales or tax deed sales. Those who are business savvy can earn all kinds of money by either charging the homeowners high interest, or simply obtaining the home and reselling it for a nice profit. - 23229

About the Author:

To locate sites with the best property tax sale opportunities and receive a free Government Tax Sale Properties Report visit property tax sales or to visit the home page click government auctions.