Family Finance: The Essential Guide for Parents

Cover......Page 1
Title......Page 2
DEDICATION......Page 4
CONTENTS......Page 5
Why a Book about Family Finance?......Page 9
A Whole New Ball Game ix......Page 10
Information Overload xi......Page 11
What You Won’t Find in this Book xii......Page 12
ACKNOWLEDGMENTS xiii......Page 13
1. That Was Then, This Is Now 1......Page 14
The Financial Heebie-Jeebies 1......Page 15
What It Really Costs to Have Children 3......Page 17
Why So Many Families End Up 
Hitting the Debt Wall 7......Page 20
Are You and Your Partner Financial Soulmates?......Page 22
The Dirty Little Secret 12......Page 26
How Financially Fit Is Your Family?......Page 27
Analyzing Your Net Worth Statement......Page 29
Analyzing Your Income and Expenses......Page 33
3. The Perils of Plastic 23......Page 36
HOW TO AVOID GETTING IN TROUBLE WITH CREDIT CARDS......Page 38
FINANCE CHARGES: DO YOU NEED AN INTERPRETER?......Page 39
FINDING A CREDIT CARD YOU CAN LIVE WITH......Page 41
BEATING THE CREDIT CARD COMPANIES AT THEIR OWN GAME......Page 43
HOW MUCH DEBT IS TOO MUCH DEBT?......Page 45
WHAT YOU DON’T KNOW ABOUT YOUR CREDIT 
RATING CAN HURT YOU......Page 48
Big Brother Is Watching You......Page 49
How to Check Your Credit Rating......Page 50
HOW TO TELL WHEN IT’S TIME TO CALL IT QUITS......Page 51
What to Do Before You Throw in the Towel......Page 52
4. Will That Be One Income or Two? 41......Page 54
The Rest of the Story 42......Page 55
The Hidden Costs of Working......Page 57
The Hidden Costs of Staying at Home......Page 61
What the Numbers Won’t Tell You......Page 62
Making a Decision You Can Live With......Page 63
How Can You Quit When You’re the Boss? 50......Page 64
Household Expenses......Page 65
Food......Page 67
Clothing......Page 70
Bank Charges......Page 71
Credit and Debt......Page 73
Travel......Page 74
Health Care......Page 75
Child Care Expenses......Page 76
Us, Inc. 64......Page 77
5. The Wish List 67......Page 80
What’s Wrong with This Picture? 67......Page 81
Taking a Step Back 68......Page 82
Walking the Talk 71......Page 85
Short-Term vs. Long-Term Goals......Page 86
6. Home Is Where the Mortgage Is 77......Page 90
How Much House Can You Afford? 79......Page 93
What to Do before You Call Your Lender 81......Page 95
How the Banks Decide How Much to Lend You 83......Page 96
What Your Lender Will Want to Know 84......Page 97
When to Apply 86......Page 99
Bottom Line?......Page 100
Variable-rate mortgages (adjustable rate mortgages)......Page 101
Other Important Mortgage-Related Terms......Page 102
Interest Zappers 90......Page 104
All in the Family 91......Page 105
House and Lot......Page 108
Closing Costs 96......Page 109
What Every Homeowner Needs to Know about Property Insurance 99......Page 112
Selling Your House 100......Page 113
The Biggest Homebuying Mistakes — and How to Avoid Them 101......Page 115
The Tax Implications of Home Ownership 102......Page 116
7. Hello SUV, Goodbye Car 105......Page 118
The Money Pit Revisited 105......Page 119
Getting the Best Possible Price
on a New or Used Car......Page 120
Winning at the Trade-in Game......Page 124
Saving Money on a Car Loan......Page 125
The Hidden Costs of Leasing......Page 126
The Dos and Don’ts of Shopping for Auto Insurance......Page 127
Operating Costs Revisited......Page 129
8. Hitting the Books 117......Page 130
What It Costs to Send a Kid to College......Page 131
When to Get Started......Page 132
Education IRAs......Page 133
Section 529 Plans......Page 135
Prepaid Plans......Page 136
Do-It-Yourself Investing......Page 137
The Tax Implications of Saving for Your Child’s Education 126......Page 139
A Matter of Trust......Page 140
Tax Breaks Available to Students and Their Families......Page 141
Do Your Homework......Page 142
Grants versus Loans......Page 143
Home Equity Loans......Page 145
Borrowing from Your Retirement Savings......Page 146
9. Surviving the First Year 135......Page 148
Don’t Shop till You Drop 135......Page 149
Your Baby’s Wardrobe 138......Page 151
From Here to Maternity 140......Page 154
Shopping Secondhand 141......Page 155
Your Baby’s Room 143......Page 156
The Rest of the Story 144......Page 157
10. Death and Taxes 145......Page 158
The Fine Print......Page 159
Choosing an Executor......Page 162
Housekeeping 101......Page 163
Choosing a Guardian for Your Children 150......Page 164
Minimizing Probate Fees......Page 166
Jointly Held Property......Page 167
Estate Tax Planning 156......Page 169
Writing a Living Will......Page 170
Updating Your Will......Page 171
11. Hedging Your Bets 159......Page 172
Life Insurance: Who Needs It? 159......Page 173
Types of Life Insurance......Page 176
Taking Care of Business......Page 179
Whom Should I Choose as a Beneficiary?......Page 180
Disability Insurance 167......Page 181
Shopping Around for a Policy......Page 182
Indemnity Plans......Page 184
Health Maintenance Organizations (HMOs)......Page 185
Medicare......Page 186
Medigap......Page 187
12. Who Wants to Be a Millionaire? 175......Page 188
Saving versus Investing: What’s the Difference? 176......Page 189
Your Investment Game Plan......Page 191
The Basic Rules of Investing......Page 192
The Feeling Is Mutual 181......Page 194
The Types of Mutual Funds......Page 195
Dollar Cost Averaging......Page 199
Settling Up with Uncle Sam......Page 200
SCAM BUSTERS 187......Page 201
13. Life after Children 191......Page 204
The Not-So-Golden Years 192......Page 205
What You Can Expect to Get from Government Coffers 196......Page 210
How Social Security Works......Page 211
Corporate Pension Plans 199......Page 212
Defined Contribution Plans......Page 213
Voluntary Plans......Page 215
Individual Retirement Accounts (IRAs)......Page 219
Plans for the Self-Employed 209......Page 222
14. The Next Generation 211......Page 224
Raising Money-Smart Kids 212......Page 226
Making Allowances 215......Page 228
CONCLUSION 219......Page 232
GLOSSARY 221......Page 234
RESOURCES 229......Page 242
Credit Counseling Agencies (Not for Profit)......Page 243
Education......Page 244
Government and Consumer Agencies......Page 245
Insurance......Page 247
Investing......Page 248
WEB SITE DIRECTORY......Page 249
Credit Bureaus......Page 250
Financial Planning Organizations......Page 251
Government and Consumer Agencies......Page 252
Insurance......Page 253
Investment......Page 254
Money Web Sites for Children and Teens......Page 255
Real Estate and Mortgages......Page 256
Retirement......Page 257
RECOMMENDED READINGS 245......Page 258
Magazines and Online Publications......Page 259
INDEX 247......Page 260