Sample issue

Hi there,

This issue's stretch: make "surprise" costs boring

Back-to-school, birthdays and holidays come around every year, but they still feel like emergencies. A sinking fund fixes that:

1. Write down what you spent last year on one of them, say back-to-school: $480.
2. Count the months until you need it: 8.
3. Divide: $480 / 8 = $60 a month. Move it to savings every payday.

When August arrives, the money is just sitting there. More in Sinking funds for kid costs.

Try this with your kids (ages 4 to 8)

Label three clear jars Spend, Save and Give. Next time they get money, split it together right away. Let them draw what they're saving for on the Save jar. Seeing the jar fill up is the whole lesson. Our allowance planner works out the split.

Reader question

"Should allowance be tied to chores?" Families do it both ways. Many keep everyday chores unpaid ("we all help at home") and pay for extra jobs. The key is to decide, explain it and stay consistent. See Allowance: how much, when and what for.

Stretch on,
Your Money Stretcher