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Coping and being proactive

Financial Literacy – Kid’s edition – Part One

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On today’s journey I want us to discuss something especially important in my own home and that is the topic of finances.  It is important to understand how money works and describing to children how we operate with money.

Table of Contents

    What does this mean?

    Financial literacy is the ownership of skills and knowledge particularly that equips you with making educated and valuable choices regarding finances. Well, as an adult we learned the hard way as we had to get a job first and then understand how to balance our budget, pay taxes, bills and all these different aspects, which can feel like it is falling on top of our heads. Then we learn how to deal with these new responsibilities and manage it. However, imagine if you were given the gift of understanding finances ahead of the game even understanding how to manage, coordinate and move your money around so that by the time you are in adult you have some equity earned interest an increased in your dollar just by investing in yourself.

    Conversations

    First wallet, always starts the excitement.

    We bought this wallet at Oldtown in Orlando,FL. He loves it!

    In my household with our own children, when they turned five years old and they were able to write out their own names, I started individual bank accounts for them each. You can do a savings acct for them in the meantime but if you want them to understand the process starting at five is an excellent beginning point. If they had a deposit from their grandma, uncle, birthday, tooth fairy they would walk into their bank (with me as an escort) and do a deposit at the teller; I would stand by to assist but they would understand the jargon that was being spoken to them in that transaction and be able to answer questions and begin to understand the process. This is the important piece as they are physically part of these transactions. We typically would open a savings and checking account.

    Big Picture and Expenses

    We as parents concentrate on the big picture expenses for example: shelter, food, clothing, even entertainment. We also maintain anything they may need, which can include technological items such as computers, phones and gadgets for school and fun. Sometimes my kids want the latest game or a fashionable sneaker or trend and something of this nature I ask them about what they have in their allowance or what other items they want to do in the house to help work for these. So, how does this work?
    There are a couple of methods, but I will give the example of low end and high end. This just indicates the parent contribution not including gifts that you may receive. Other rules of financing and banking you should consider are the following.

    TypeBank RulesRate/AmountDetails
    Interest RatesCan range and payout annually or be accrued and offset monthly with your statement. 0.001% – 0.06%Some banks offer reward programs for a higher balance that can increase this. 
    Check with your financial Institution.
    ResponsibilityThe manager of the account is the parent.  However, when the child turns 13, they can usually download app and maintain account.  If it is a checking account since an adult is listed on the account a debit is usually issued.This rule can vary bank to bank this why financial education is important at an early age to prepare them for when they are a teenager. 
    Check with your financial Institution.
    FeesFees (Maintenance, overdraft, check bounce) can apply but for a child or student savings/checking account they can be waived$12 – $60To avoid Fees, you may need to keep a daily balance of $500 to $1500 after the age of 24. 
    Check with your financial Institution.
    TaxesIf the yearly balance does not go over 15000, taxes will not apply on the account.  Normally these deposits are post tax your individual income.  For the child, they are not required to report as you are listed on the account.  Until they are a legally recognized as an adult by the government standard and no longer a minor.$260 and up.For a single person, with no dependents at the age of 18.  They may owe $260 of a $2,500 taxable income.  Based on the IRS tax table, please speak with your accountant or taxing professional for your individual advice.
    FDICEach individual account at any bank is covered for up to $250,000.00 at any time.  If you accrue more than this amounts you may need to open a different account, trust, or fund.Not covered 250,000.01Individual accounts $250,000.000
    Joint accounts $500,000.00
    Check with your financial Institution.
    Life InsuranceExcellent way to plan, thinking positively.  Because this money usually has a fixed rate, that you can borrow from for braces, college, first car, down payment on a home)$35 -$100 MTHEvery provider is different.  Best to choose from are the Mutual of Omaha, Gerber, State Farm – reach out to find out more details.

    Now that we have an idea of the rules. How do we figure out the payments of allowance or money for our children? First you will need to set up three accounts Checking, Savings and Insurance. Of course, these are suggestions, but you may want to take advantage early.

    TypeAvailabilitySocial Security NumberPaymentsFrequencyDown PaymentFace ValueGuardian
    CheckingOnce Social Security is issued.Yes$1 – $26Bi-Weekly$25 – $1500Annual AmountParent only, at 13, a child can manage with parent, transitions at 18.
    SavingsOnce Social Security is issued.YesVariesVaries$125 – $500Annual AmountParent only, at 13, a child can manage with parent, transitions at 18.
    Insurance14 days old to 17 years of age.No$35 – $100Monthly or annually$5,000 – $500,000Parent until 18

    Plan Capital for Equity

    Now, have your children walk through the process with you. Understanding the game plan, in my mind is the first step. I have two options that can work for any income. They are called Low End and High End. Again, this does not include gifts or birthdays but just the payments on the parents’ end.

    TypeCheckingSavingsInsuranceOther
    Low End – AllowanceBased on age$125 at beginning (year 0)
    $500 at age 18.
    $35 a month (Based on policy ages 0-17 then transfer to whole life policy for adults)NA
    High End – AllowanceBased on age$125 at beginning (year 0)
    $576.9 bi-weekly from (0 – 16)
    $14999.40 a year total (under the $15,000 taxation mark)
    $250,000.00 lifetime (for this period 0-16 years)
    $100 a month (Based on policy ages 0-17 then transfer to whole life policy for adults)NA
    Bonus – Tooth FairyNANANABased on age per tooth. 
    Ex. 5 years old = $5.00.  20 teeth by rate = $100. 
    Have the child take the cash and make the deposits.

    Allowance Types

    What it looks like. Be warned there are many graphs here, these are estimated.
    For both Allowance types: Low End and High End, the checking stays the same.

    YearType RatePaymentsYearly Amount
    0Checking $   1,500.0011500 (Continued threshold)
    1Checking $           1.002626
    2Checking $           2.002652
    3Checking $           3.002678
    4Checking $           4.0026104
    5Checking $           5.0026130
    6Checking $           6.0026156
    7Checking $           7.0026182
    8Checking $           8.0026208
    9Checking $           9.0026234
    10Checking $         10.0026260
    11Checking $         11.0026286
    12Checking $         12.0026312
    13Checking $         13.0026338
    14Checking $         14.0026364
    15Checking $         15.0026390
    16Checking $         16.0026416
    17Checking $         17.0026442
    18Checking $         18.0026468
    19Checking $         19.0026494
    20Checking $         20.0026520
    21Checking $         21.0026546
    22Checking $         22.0026572
    23Checking $         23.0026598
    24Checking $         24.0026624
    25Checking $         25.0026650
    26Checking $         26.0026676

    The Low End and High End types really apply to the savings account. The idea in this plan is to make at least the low amount or any up until the high amount. You do not want to exceed on this account more than $15,000 per year but you want to have at least $125 until they turn 18 then $500 to prevent fees. Of course, if you are a millionaire, you can do whatever you want but for the average person this can meet multitudes of income ranges and teach your children how to save.

    YearType High EndPaymentsYearly AmountYearType Low EndPaymentsYearly Amount
    0Savings $ 500.0015000Savings $ 125.001 $ 125.00
    0Savings $ 576.902614999.418Savings $ 375.001 $ 375.00
    1Savings $ 576.902614999.4
    2Savings $ 576.902614999.4Total500
    3Savings $ 576.902614999.4
    4Savings $ 576.902614999.4
    5Savings $ 576.902614999.4
    6Savings $ 576.902614999.4
    7Savings $ 576.902614999.4
    8Savings $ 576.902614999.4
    9Savings $ 576.902614999.4
    10Savings $ 576.902614999.4
    11Savings $ 576.902614999.4
    12Savings $ 576.902614999.4
    13Savings $ 576.902614999.4
    14Savings $ 576.902614999.4
    15Savings $ 576.902614999.4
    16Savings $ 576.902614999.4
    Total255489.8

    For the life insurance, this works by specific policy. As a child’s medical is usually not put into question and the application process is simplified. Anyone can open a policy as the social security number is truly not needed. As low as $35 a month to $100 a month or annually from $420 to $1200 you can buy coverage. Typically, this covers death as it is a life insurance policy. What is not told to you is that the face value, which can be $5,000 to $500,000.00 is based on an index amount. And when the policy matures you can use it, which is typically at the age of 100. When the child is turning 17, you can begin to transfer the plan to whole term for an adult and they can take over the payment. For example, if they need braces, or want to buy a car, or later a down payment on a house, depending on where you are in your policy you can borrow that cash from the policy. Whether paying it back or not, which will deduct from the face value. Other benefits, include not needing to be reported on taxes and the money is all post taxable dollars. This is how the wealthy maintain their financial health within their portfolios.

    Piggy Banks

    All my children have one that is completely full of money from when they were born. We have never touched it and when they graduate high school it is theirs. One of the banks if from Tiffany’s so I ask that they manage with care. They also have individual banks like superheroes that they fill and often forget about.

    I still recommend a good old fashion Piggy Bank. Once they get full, take them and deposit into their checking and savings accounts. We consider this for them as income and explain the 2/3 policy.

    The 2/3 Policy is a strategy

    When you are an adult, you need to pay bills that are deducted from your wages that include taxes, utility, living expenses, gift, entertainment, miscellaneous, etc.  This concept teaches the child that no matter how much money they receive they will be responsible for a “bill” payment in the amount of 2/3 of the income.  You will truly only enjoy about 1/3 of it.  To plan for this mindset, in the example below I have $100 as the hypothetical gross amount in the piggy bank.  Here 1/3 of that money goes into checking as net and 2/3 into savings where it is saved for a future bill as the deduction. Although this really isn’t going anywhere it is stashed away. 

    Gross = Amount of Piggy BankNet = CheckingBill (Deductions) = Savings
    $100$33.33$66.67

    The best part is when they get their first paycheck/statement they will understand why they are “missing” the gross amount.

    Please leave comments below.

    Let me know, if you do something like this with your children, or if you try this method how did it work for you?

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    Check out this complimentary, Podcast about Financial Literacy for Kids and thank you for joining me on this journey of Fannytasticlife!

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    Hi Louis!

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    Have fun, enjoy life and dont forget to reward yourself! On this journey of Fannytasticlife!

    Loving yourself is especially important, self-love and self-care as I mentioned before. The value of this increases over time within yourself. I always set goals with rewards, some of these rewards are easily attainable and some require effort, money or focus but nonetheless all these rewards are promises I keep for myself.

    The other day my family and I went to The Mall at Millenia in Orlando, FL where they have many stores that you can enjoy shopping at. While shopping there it was a surprise to come across at first sight Yves Saint Laurent, Bvlgari, Rolex, Tiffany, Burberry, Chanel and then realize right in front of me was Louis Vuitton. I looked at my husband with beyond a Starbucks gaze and said pretty please may I take this moment. My husband took the kids and sat down; he knew that I recently made one of my goals a reality.

    My goals was to achieve my MBA, which I am so proud of!!!!

    That is me, circled in green. Yes, it is virtual but I am so happy here. Graduate 2021!

    Now, a lot of people graduated this year with so much to celebrate. The reason it is important to me, is because I have promised myself this moment, my whole life! My grandmother in 1974 got her master’s and she was 45 years old at the time. She always said do not wait your whole life to have this credential. However, life has taken its toll on me, and I am now 41 and so proud that I finally achieved this goal. I had promised myself that when I achieve this goal I will buy my dream, Louis Vuitton Bag and today at Mall – this purchase was my destiny. My grandmother always insisted that I should set goals in my life and when I can reward myself. This was the behavior she often taught me with my weight and many other life goals. She insisted since I was seven that my masters were non-negotiable,

    I particularly, have always studied law and you may have suspected that I would have a natural progression to a Juris Doctor (J.D.) as my grandmother always prescribed. However, I am very much into analytics and business, so I changed the course of my education to focus on Business Administration.

    I wanted to focus on key elements of human capital, marketing, financing, organizational behavior, economics, management and business ethics, I have mastered the art of payroll through my own life development. Ethics are very important to me as well as integrity and we discussed these topics within my coursework as well as deep dive into communication and analytics. While working with ADP I was able to tap into my analytics skills and become a subject matter expert in Analytics and Insights. I worked very closely with the product team and enjoyed these relationships as well as stayed in contact with them through Linkedin <3

    My goal was particular and detailed as I planned on not just graduating with the MBA but I had to a have earned a minimum of a 3.5 GPA. This was the important factor on whether or not I truly earned my reward.

    Back to the mall, so I was waiting online and so many people were also, some who already had beautiful bags. One of the line expeditors approached me and asked, “Is this your first time?” I thought she may have asked because I took a selfie… but she was asking everyone. She shared why she valued the store and some information, and I really enjoyed her level of engagement.

    While on line, I snapped this picture of me in the moment!

    I finally, make it to the head of the line and I am asked to meet Natalia. Natalia, smiled through her mask, and she was elegant, classy, and professional. Her look was clean lined with a pallet of neutral, black, and white and crisp red nail polished. Stunning! We started to walk through the store, and we discussed the House of Louis Vuitton, this was very enchanting. We also discussed types like canvas and leather, monogram, classic, etc. She asked me if I knew what I wanted or did I have something in mind, which I did. I knew I wanted something that my grandmother had, like her style as the MBA is in her legacy.

    I wanted a Monogram Empreinte leather in black only with a gold chain but not just any chain, we discussed many bags and then I saw the Multi Pochette in cream, but I did not say anything. She went to gather some other bags and then she unwrapped the Multi Pochette in black and I was in love and floored!!!! The chain had an iconic look similiar to Chanel. This is exactly what I have had my eyes on for the past three decades to purses similar. Some of the features I loved was the gold chain with the leather cord and the pouch attached that was removable with an addition across the shoulder strap, which made these two bags in one!!!! I saw the price and knew this was a purchase. We still looked at other bags – just in case. I thought to look at canvas and boots just to make certain I was sold, I was.

    Louis Vuitton mission statement is to”embody unique savior-faire, a carefully preserved heritage and dynamic engagement with modernity and to represent the most refined qualities of Western “Art de Vivre” (The Art of Living) around the world; to be synonymous with both elegance and creativity; to blend tradition and innovation, and kindle dream and fantasy”,to be creative and aim for excellence.

    zarnab wajahat

    This was complete white glove service and I was treated like a goddess, we shared, and laughed and over all my experience was incredible. I noticed people who came in and did not purchase were also treated amazingly and when they left were still given the respect. This confirmed my overall opinion on this experience, which was excellent.

    Here is my accompanying podcast regarding goals, rewards and of course Louis Vuitton!

    Here is what I purchased, which is available in store and online at Louis Vuitton

    Here is a Tiktok, enjoy 🙂

    Here is the bag, my reward! These pictures you can find on their website.

    My next goal is Doctor of Business Administration: Management – Qualitative Research degree, which I plan on attaining by 2024. At that point I will be Dr. Fannytasticlife and yes my reward will be … can you guess … Chanel. Possibly the Chanel Quilted Lambskin Extra Large Briefcase or something like that… who knows (wink wink)

    Thank you for joining me on this journey of Fannytasticlife.

    Please leave your comments and also I would love to hear you messages and publish them on my podcast click on the image below and select messages. Thank you. Bye Now!

    https://anchor.fm/fannytasticlife

    October is Breast Cancer Awareness Month

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    Being Proactive

    Monica’s Story

    Monica a vibrant career professional in New York City, who recently had just moved from Florida, but was originally a New Yorker. Making herself acquainted in Queens. Settling in with her family and matriculating her children into school. Terribly busy and always initiative-taking with her and her family’s health.

    She previously worked for a hospital in Florida who made it part of their standard operating procedure and general office protocol to have the employees in her department receive yearly mammograms, which in her case were always negative.

    In the process of her moving, she missed the examination for that year and while changing careers her appointment lapsed when she was due for her mammogram. In a self-discovery, she came across something that would change her life forever.

    With Monica Patino

    At 37 years old Monica discovered, that she had a lump in her breast. Immediately she had her self-checked out and it was determined that she had Breast Cancer Stage 2B; had she not let the examinations lapse she may have caught it before it had gotten so serious.

    Stage 2B, describes “breast cancer in which: the tumor is larger than 2 cm but no larger than 5 cm” (Breast Cancer, 2020)

    Monica underwent many procedures that changed her life forever. These procedures included and were not limited to: chemotherapy to shrink the two large cancer cells, full mastectomy, and followed by the radiation. She has now been cancer free for the past four years, thank GOD! Now, Monica is a self check activist,”learn your body and feel it.”

    The cancer hit Monica and her family fast, and hard. Her life was immediately impacted by this and thankfully she found a lot of support with her family, friends and job who sponsored her during the annual Breast Cancer Walk, walking with Monica’s Soldiers.

    Currently, her good friend is walking in her honor and you can provide sponsorship in the name of Monica Patino, a survivor of Breast Cancer, who is still fighting every day and staying strong and finding peace.

    Resources

    Stay Healthy (Breast Cancer, 2020)

    Screening Information

    #AskHer – Atlantic Health System’s #AskHer campaign encourages you to ask the women you care about to schedule their annual screening mammogram, or take the initiative and do it for yourself. Early detection saves lives. (Atlantic Health Systems, 2020)

    WebMD – You can get a free mammogram every 1 to 2 years if you’re over age 40. (WebMD, 2020) and

    CDC – Find a Screening Program Near You (CDC, 2020)

    Important Dates

    Importance of October 23 – wear PINK and show support all over the world!

    Fannytasticlife, Coping with feeling left out! Fannytasticlife

    Missed memo, no RSVP… it happens. You will never be left out of Fannytasticlife join me on this journey, no invitation necessary! — This episode is sponsored by · Anchor: The easiest way to make a podcast. https://anchor.fm/app — Send in a voice message: https://anchor.fm/fannytasticlife/message Support this podcast: https://anchor.fm/fannytasticlife/support
    1. Fannytasticlife, Coping with feeling left out!
    2. Fannytasticlife, motivation starts and ends with you!
    3. Fannytasticlife, Meditation of Patience.
    4. Fannytasticlife, Teachers who inspire!
    5. Fannytasticlife, ZUMBA for wellness and business.

    Check out Monica here on Fannytasticlife LIVE on Twitch – 21 Questions w/Monica Patino

    Or check out the Stream page where we post all our Twitch content.

    Monica Patino – Wearing Pink – Continuing to fight

    References
    Atlantic Health System. (2020). Mammography & Breast Imaging. Retrieved from Atlantic Health System: https://www.atlantichealth.org/conditions-treatments/radiology/mammography-breast-imaging.html?gclid=Cj0KCQjwoJX8BRCZARIsAEWBFMLqPXgZIPjN_rRV7O8g-0BMO9RZyVhQrWQr7dSG6S_da5admIkw9IEaAobxEALw_wcB


    Breast Cancer. (2020, October 13). Stage IIA & IIB Treatment Options. Retrieved from Breast Cancer: breast cancer in which: the tumor is larger than 2 cm but no larger than 5 cm

    CDC. (2020). Find a Screening Program Near You. Retrieved from Center for Disease Control and Prevention: https://www.cdc.gov/cancer/nbccedp/screenings.htm


    WebMD. (2020). Free Breast Cancer Screening & Prevention. Retrieved from WebMD: https://www.webmd.com/health-insurance/free-breast-cancer-screening#1

    Highest Percentile, one day at a time.

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    From my first sons doctors appointment, to my third childs recent physical going to the doctor has always been very interesting. This is because the doctor would always say that they are big; and, much bigger than other children.

    One time the doctor said what are you feeding him, chicken!” I replied no one breast milk, serious he was less than three months old.

    When they were very little I got so annoyed I had changed doctors.

    They were taller, their feet were bigger and they were heavier than other little boys their age but they are my little baby boys.

    My new doctor, at that time for them was amazing he listened to my concerns and let me know this was because of hereditary and where our family was from.  We have this expectation of norms but people from all over the world are different. 

    We moved and unfortunately I had to find a new doctor.  We found a new practice in my new town. My youngest son needed a physical recently, I warned him that the doctor is going to bring up his weight.  I actually had to have a conversation with a four year going over his feelings, reactions and what to expect from the doctor.  We went and as I predicted the doctor mentioned it. My son told him that he understood and let him no that he loved himself.  I had to laugh at that.

    My sons are active and eat healthy I don’t foresee them ever reasonably being the same size as “their normal” as they would need to physically shrink.

    The interesting part is when we came home my sons were very mature about this situation and assured me that the doctor was just doing his job.  Proud mom moment.

    My other son said atleast he got an A because the record showed he was the highest percentile.  He also added that I should be proud that he passed both test hearing and vision.  I was, very proud!

    Always proud of my #Chicoboyz

    They inspire me to stay healthy in this Fannytasticlife.

    Listen to my Podcast trust you won’t be disappointed ♡

    Fannytasticlife, Coping with feeling left out! Fannytasticlife

    Missed memo, no RSVP… it happens. You will never be left out of Fannytasticlife join me on this journey, no invitation necessary! — This episode is sponsored by · Anchor: The easiest way to make a podcast. https://anchor.fm/app — Send in a voice message: https://anchor.fm/fannytasticlife/message Support this podcast: https://anchor.fm/fannytasticlife/support
    1. Fannytasticlife, Coping with feeling left out!
    2. Fannytasticlife, motivation starts and ends with you!
    3. Fannytasticlife, Meditation of Patience.
    4. Fannytasticlife, Teachers who inspire!
    5. Fannytasticlife, ZUMBA for wellness and business.

    New baby, rusty?

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    Brought home a brand new baby boy, three weeks ago today. And I’m so happy so proud, so blessed and so exhausted. The last time I had a baby was five years ago and two years before that for a total of seven years ago, so maybe I’m a little rusty.

    He is just so sweet, so cute, so loving, so little so lovable. He is also a nocturnal sleeping baby who refuses to sleep at night and this ol’ gal is spoiled when it comes to sleep.

    Like every new mother I read all the books of what to expect when expecting and did all the research I could and went to the library and referenced all the possibilities of having a newborn. Seven years later, who does that? Everything now, is Google this and Google that.  I mean really who has time to go to the library, look in the Dewey Decimal System which, I honestly love. Then, Figure out reference guides and books; it just doesn’t happen like that anymore. So, what I have become a big fan of his Pinterest and of course Google. 

    Pinterest really opened my eyes to blogging.  This is because I simply put a search topic in and boom thousands of articles pop up! How simple, pretty easy and accessible.  So many hits on how to do just about anything. I have referenced everything I can possibly think of on Pinterest starting from: what to pack in my bag for the hospital; what to expect when I get to the delivery ward; how to manage nursing; top name brands for strollers and cribs; etc. You name it, it was easy and accessible. 

    I am going off on a tangent, so now back to my brand new baby boy. The day came I brought home my baby introduced him to his older brothers.  First week done, I was flowing with milk, and glowing. 

    Week two, creeped in, hubby went back to work and circles appeared under my eyes.  A cold came over me on Thanksgiving day and the sensation to nap has become more important than anything,  including self maintenance.

    Now, week three settles in and a feeling of relief has come in.  And balance is back, just a smidge.   We have had a plethora of guests which, kept my sanity. Today, my husband and I went to the mall for some Christmas shopping with baby after we dropped off the boys to school. Just spending time with them has also helped the sanity.

    The first two weeks I almost thought I was neglecting my older sons by holding back on the attention I give them.  However,  my children (who are very outspoken) told me that they felt a lack in attention but they understand the baby needs me.  Although, I felt guilty I also felt relief that we discussed it and it is normal.

    Today, when they came home our schedule was back on track and homeostasis was at base line. Ofcourse not perfect, babyboy, is fighting sleep as I am writing this but it is ok.

    Why?
    Because, he is a newborn.
    He only knows his mommy and her scent.
    He doesn’t understand his new world yet, which is outside the womb. 
    He is just wanting, to be comforted, fed and changed.  He will sleep when he is ready.  My rusty stage has now transitioned to titanium mommy courage.

    FANNYTASTIC Lesson # 1.
    The oldest golden rule that was told to me when I was a new mommy seven years ago was,  “Sleep when the baby sleeps.” To add to that, like with my other children, I need to pay attention to his clues.  Learn his schedule and then figure out the balance (possibly set up an alarm on the fancy phones we all seem to have as an aide) that way I am healthy, sleeping and energized for the new born.

    Have a Fannytastic Life!