MONEY halloween

Here’s How to Turn Trick-or-Treat Candy Into Cold Hard Cash

dentures on top of candy
Aleksandar Mijatovic—Alamy

Hey kids, you know your parents aren't going to let you eat all of the candy hauled in on Halloween trick-or-treating rounds. So why not swap some of it for cash money?

The cash payoff isn’t the only reason kids might want to trade in candy soon after Halloween is over. Doing so also supports the troops overseas.

To participate in the annual program, called the Halloween Candy Buy Back, families should start by finding a participating nearby dentist’s office, via a search tool at the link or at the program’s Facebook page. There are thousands of participants around the country–in New Jersey, Ohio, California, and beyond. Chances are, there’s a poster up at your dentist’s office asking locals to join in its Candy Buy Back campaign.

While the particulars of each participating office may differ slightly, they generally all welcome unopened candy donations in the days right after Halloween, and they pay $1 per pound of candy dropped off, with a $5 maximum payout. Some also give treats or goodie bags for kids—toys, stickers, toothbrushes, sometimes pizza or local baked goods—as well as the chance to win iPods, gift cards, and other prizes. It softens the blow inherent in handing over the sweet and chocolatey fruits of one’s labor spent trick-or-treating.

The program was originally envisioned as a means to get massive quantities of Halloween candy “off the streets” and out of the bellies of America’s children, and the campaign truly caught fire when it partnered with Operation Gratitude, an organization that sends care packages to military veterans, new recruits, and most especially troops who are deployed overseas. Some 130+ million tons of candy has been collected over the years, and with the help of Halloween Candy Buy Back participants, Operation Gratitude was able to ship its one millionth care package last December.

As for the more mercenary kids out there—those who are trading candy in for cash at least as much as they are motivated to support the troops—they’re probably trying to figure out what candies weigh the most to maximize their payout.

MONEY Out of the Red

How I Paid Off $158,169 in Debt

G. McDowell Photography

Think there's no way to get out from under your obligations? This first in a series of profiles of people getting "Out of the Red" proves that it's possible.

Rachel Gause just wanted to give her three kids more than she had growing up. So, though she was receiving a secure income along with child support, she found herself living beyond her means every month—eventually racking up six figures in debt. With a whole lot of determination and almost a decade’s worth of belt-tightening, she’s climbed most of the way out. This is her story, as told to MONEY reporter Kara Brandeisky.

Rachel Gause
Jacksonville, N.C.
Occupation: Master Sergeant, United States Marine Corps
Initial debt: $179,625
Amount left: $21,456
When she started paying it down: 2006
When she hopes to be debt-free: November 2015

How I got into trouble

“I was just trying to keep up with everybody else. I’m a single parent to three kids, ages 10, 14, and 16. I was always spending extra on Christmas and on birthdays. Also, growing up, I didn’t have new clothes and new shoes at the start of every school year. But I wanted to make sure my kids always did.

Looking back, I wish I would have known not to rely on credit cards. I wish I would have known that it’s okay to keep your car for four or more years, as long as you maintain it.

I started going into debt when my first daughter was born, 16 years ago. I remember I had to get a furniture loan. By 2006, I had $55,848 in credit card debt and $76,711 in car loans. Then there were the personal loans. I had a consolidation loan that I used to pay off my credit cards. Altogether, it came out to $179,625.”

My “uh-oh” moment

“I wasn’t aware of how much debt I was in. The turning point for me was when I hit the 10-year point in the Marines, and I saw other people around me retiring. I wanted to sit down and see where I was at. And that’s when I realized I didn’t want to retire in debt. I didn’t want to be that person.

At the time, I had a Toyota Sequoia, and I couldn’t make payments on it. I knew I was in way over my head.

Even though I had three kids, we didn’t need that big truck. It was going to put my family at a financial challenge. So I spoke to a lady at my church, and I said, ‘I have this truck, and I’m going to trade it in for something smaller.’ And she said, ‘I always wanted a Toyota Sequoia.’ I sold it to her and got into a Corolla instead.

I realized buying that truck was a bad choice, and I knew I needed to develop better habits from there. That was my first step forward.

How I’m getting out from under

Now I put roughly $2,100 a month toward my debt.

For the rest of my income, I use the envelope system. Before I get paid, I do my budget. Then I have 13 envelopes—one for groceries, one for clothes and shoes, one for charity, one for dining out, one for gas, and so on. I go to the bank, take the money out, and divide it between the envelopes.

I don’t spend anything that doesn’t come out of those envelopes. Debit cards are nice, but swiping is less emotional. Cash makes me more aware of what I’m spending my money on. If I run out of money for something that month, I don’t buy it. But I’ve never run out of money for something important—now I’m more aware of how much I’m spending.

That’s because I also got a small composition book from Dollar General to track my spending. Every time I spend money, I write it in that book. Then I compare that to what I’m supposed to be spending, according to my budget.

I also do a quarterly audit on myself to make sure I’m not spending too much more on my cable or cell phone bills.

But it’s not all deprivation. We have a chart that we color in every time we reach a milestone, and we treat ourselves to something nice. For example, recently I went on a trip with my high school classmates to Atlanta—funded totally in cash.

My kids have been understanding about our debt-free journey. They know that mommy has made some bad financial decisions in the past. Now I teach them about needs and wants.

The other day, I was coming home from work, and I said, “Do you need anything from the store?” My son said, “We don’t need anything, but we’d like some candy.”

If they want a video game, they know they need to save their money to get that video game—and that means there’s something else they won’t be able to get. They understand if you have a big house, that means you have to pay big electricity and water bills. I’m teaching them to live within their means and not just get, get, get to try to impress people.

What I’ve learned that could help someone else

My advice would be to sit down, see where you’re at—first, you have to know how much debt you’re in—and then create a spending plan. (Some people are scared of the word “budget.”) You have to tell your money where to go, or it’s going to tell you where to go.

The numbers may scare you in the beginning. It takes two or three months before you can get the budget right.

And you have to be consistent. If you don’t put 100% into it, it’s not going to work. You can’t be half, ‘I’m trying to get out of debt,’ and half, ‘I still want to spend money.’ You have to sacrifice.

My hopes for the future

Once I become debt-free, I plan to build up my emergency fund and then start actively investing and saving for retirement.

Then I hope to get my kids off to a better start.

My daughter will go to college soon. We’ve talked about student loans.

The main reason I joined the military was to obtain my college degree for free. I earned my degree in business administration from the University of North Carolina-Wilmington last year. But while I was there, I saw so many kids taking courses for a second and third time because they were failing and they weren’t going to class.

So I told my daughter, you’ll pay for that first year, and we’ll see how you manage. Then I’ll assist you with your second, third and fourth years. But first, I need to make sure you’re dedicated.

After I retire from the military, I want to become a certified financial counselor so I can help people break the vicious cycle of being in debt and dying in debt. My passion is to put together financial classes for non-profit organizations like women’s shelters, churches, and organizations for military service members. There aren’t that many in this area, and I see a real need. I see so many people struggling to survive, living paycheck to paycheck.

I’ve already started counseling some people who ask for help.

Every now and then, I get a message on Facebook from someone I helped that says, ‘I just paid off another credit card’ or ‘I paid off my car.’ That’s my motivation now. I don’t want to stop – the need is out there.

Are you climbing out of debt? Share your story of getting Out of the Red.

Check out Money 101 for more resources:

MONEY First-Time Dad

How to Cook a Real Dinner for Your Family…and Finish Before 9 p.m.

Luke Tepper

First-time dad Taylor Tepper asks parents and cooking experts for advice on feeding a family while maintaining your sanity. What he learns: Focus on formats.

Last week, I stood in the first aisle of my local grocery store for a few minutes blinking at a bin of scallions.

I had a cart in one hand, a shopping list in the other, and a podcast playing in my ear. I needed to grab a bunch of groceries, get home and make dinner.

But at some point in the produce section, I fell victim to a momentary lapse of cognitive function, as if I was a computer that had overheated. For a moment, I wished I had simply ordered in Chinese.

A parent’s day is long. Ours starts at 5:30 a.m. with a groggy baby and two sleep-deprived parents, and I don’t return home with dinner’s ingredients in tow until 7 p.m.

To be clear, I genuinely relish the responsibility of providing my family with sustenance. Plus I know there are real benefits to eating real food prepared at home: We can eat more healthfully and save a few bucks in the process.

But my problem is that I’m terrible at planning. I’ll look up a recipe before I head home from work, buy everything on the ingredient list (often forgetting that I have a quarter of the stuff at home), walk home and make the meal. On that day last week when I paused in front of the scallions, for instance, I ended up preparing a baked chicken dish with Kalamata olives, dates, tomatoes with an herb jus and mashed potatoes.

Delicious. Only, my wife and I finished eating close to 9 p.m.—at which point I devolved into a coma.

I know I’m wasting time and money. I need help. I need a plan.

So I turned to a few experts: KJ Dell’Antonia, who as the lead writer at the New York Times Motherlode blog has written on her successes and failures of cooking for a family, my friend Cara Eisenpress whose cookbook and blog BigGirlsSmallKitchen.com document dinner prep in a diminutive Brooklyn apartment, and Phyllis Grant, a former pastry chef whose blog DashandBella.com chronicles meals made with her kids.

The Game Plan

“Obviously I’m a big fan of planning,” says Dell’Antonia. “There’s nothing like realizing that it’s 4 pm and you’ll have to make dinner again tonight—but not only do you know what it is already, but you’ve got all the ingredients and maybe some prep work done. Saves my life every time.”

But what type of plan is best for a busy working parent like me?

Cara told me to forget about specific recipes and think more broadly.

“When planning, think in terms of formats,” she says. “Pasta, hearty soups, stir fries, roasted cut-up chicken, and eggs are all classes of weeknight dinner that are so simple to vary.”

In other words, rather than shopping for a pasta dish on Monday (like Lemon Fettuccine with Bacon and Chives) and then returning to the store on Tuesday in search of ingredients for for another (say Orecchiette Carbonara with Scallions and Sun-dried Tomatoes), plan on whipping up two pasta dishes and a chicken entrée over the next few days and then map out recipes from there. That way you’ll buy overlapping ingredients.

At the same time, though, be mindful of planning too far ahead, says Cara.

“Don’t shop for the seven nights’ worth of formats—you’ll waste food and money if something comes up,” she advised. “Better to plan out fewer and then grab a few miscellaneous staples that could turn into dinner as needed, like extra onions (caramelized onion grilled cheese), a box of spinach (lentil soup with spinach), or some bacon (breakfast for dinner).”

Grant even suggests preparing more than one night’s worth of a neutral protein like chicken, which she notes “can be a life saver, You won’t get sick of it because you can dress it up with some many different flavors and techniques.”

Most importantly, Cara said, make sure you have a stocked pantry—including olive oil, vinegar, mustard, salt, rice, pasta and cheddar, among others—to augment whatever recipes you’ve chosen.

The Defense Formation

After you’ve figured out the formats and recipes you’re interested in for the next couple of days, it’s time to actually buy the food.

But the grocery store is like a casino: The thing is designed to have you spend more time shuffling along the aisles so that you look at more food. They even mess with the music (see #19 here).

If you’re not careful, you’ll arrive home with a beautiful jar of jam that will sit in your fridge for the next six months. (Guilty!)

That’s why Dell’Antonia recommends shopping with a list, “and not buying anything that’s not on it,” says. “Ridiculously, I save money by sending my babysitter to the grocery store when I can. Her time costs me less than I’d spend in ‘Oh, look! Halloween Oreos!'”

Also, look for items that will make your cooking life easier, says Cara. “Don’t shy away from shortcut ingredients. Find brands of tomato sauce, salsa, stock, pre-washed spinach, ravioli, etc. that you like: each of those gets you a third of the way to dinner. There are some vegetables I think of as shortcuts too because they require so little prep: a potato you can rinse and then bake, and my go-to, fennel, where you just remove the outer skin, quarter what’s left, and roast to get a super simple serving of vegetables.”

Kickoff!

Time to practice my new strategy.

I replenished up my pantry—I was a little low on olive oil and pepper—and decided to prepare Chicken with Figs and Grapes from Grant’s blog. I even bought a little extra chicken and stock for some soup later in the week (guess I was in a chicken format mood.)

Her recipe calls for about a dozen different ingredients, but since my pantry is already full, I only need to pick up the chicken, anchovies, figs and grapes.

I’m in and out of my local grocery store in five minutes (without jam!) and before long my kitchen is humming right along.

The dish is relatively easy to prepare and after a little less than 30 minutes in the oven, my wife and I have a meal for tonight and tomorrow. I arrived home by 7:15pm and we finished eating around an hour later, about 45 minutes quicker than normal and nearly a Tepper weekday record.

Our stomachs were full, the kitchen relatively clean and my brain didn’t wither like a raisin during the process.

A sense of peace had been restored in my life.

Adulthood can be difficult—after a long day of work, it often just feels easier to order a delicious Korean BBQ kimchi burrito than expending the time and effort to put together a meal. So sometimes the Teppers do just that.

But as Cara says, “Cooking at home is one of the best parts of being a grown-up. You get to eat exactly what you want when you want it. So, if you like to eat, you like not spending all your money, and you like putting relatively healthful food in your body, you should probably learn to cook.”

And if you’re going to do it, plan ahead.

Taylor Tepper is a reporter at Money. His column on being a new dad, a millennial, and (pretty) broke appears weekly. More First-Time Dad:

MONEY First-Time Dad

Why Work-Life Balance Is Just As Impossible for Dads

141014_FF_TEPPERBLOG
This mug is what I'm missing out on when I'm working late.

We're struggling with the same issues working moms face, says MONEY reporter and first-time dad Taylor Tepper.

Sometimes I feel like a bad dad.

Doubts over my parental savvy often correlate with how long I’m at the office. When I call to tell Mrs. Tepper that I’ll be here until 7:30 p.m. working on a magazine feature—and won’t be home to put our son Luke to bed—the soft disappointment in her voice stays with me like a faint ember.

The same guilty feelings apply to my job, too.

I’m 28 and now is the time to work long hours, take on more responsibility and show my bosses just how willing I am to immolate myself for the greater good. Every time I leave the building at 5:30 p.m., a part of me thinks I’m sacrificing future promotions, raises and glory.

What it means to be an American father, and the responsibilities therein, have changed radically in the last few decades. In 1975, 45% of families consisted of a male breadwinner and a stay-at-home mom; today 31% do. And now, men are taking on more chores and spending more time with their children than their dads spent with them.

But this blending of gender roles has done much to confuse the male mind. We want to spend more time with the kids and earn accolades on the job; we want to attend the soccer game and become senior management; we want to be Bill Cosby and Steve Jobs.

Many of us feel—just as working moms do—that we’re succeeding at neither.

The Research Backs Me Up on This

According Boston College’s Center for Work & Family, 86% of dads agreed or strongly agreed that “my children are the number one priority in my life.”

That’s well and good.

At the same time, though, more than three in four fathers wished to advance to a position with greater responsibilities and three in five demonstrated a strong desire to reach senior management.

Half of working dads say they find it very or somewhat difficult to balance the responsibilities of work and family, according to Pew.

And on the whole, we don’t feel like we’re living up to the dad role either. Almost eight in 10 dads want to spend more time with their children on an average workday, and one in two say they spend too little time with their kids. (Only 23% of mothers feel that way.) From first-hand experience, there is nothing quite as enervating as coming home from work to an already-sleeping son.

In Boston College’s research, you also see dads grappling with perceptions of what they want and the reality of how things are.

While today’s fathers also recognize that parenting is a two-person job—65% say they believe that partners should take care of a child evenly—only one in three say that they actually split the work in half. Women typically spend more than three times as many hours per week solely looking after the child than men.

Even on weekends, men fail to live up to their ideal. On Saturdays and Sundays, moms spend 1.2 more hours on housework and childcare than dads do. When it comes to time spent on leisure activities, dads out-loaf moms by an hour.

While Mrs. Tepper and I have something of a modern marriage—split chores, female breadwinner—she almost certainly watches Luke more on the weekends, especially when sports are on.

In spite of my few hours more on the couch, however, I’d still argue that achieving and maintaining true work-life balance is impossible. You can’t achieve these competing goals—working at the top of my game, being the best dad and husband ever, and getting in a few NBA games to recharge my own engine—within a finite number of hours in the day.

So, What Is a Modern Dad to Do?

I put that question to Sara Sutton Fell, the CEO of FlexJobs.com, a job search site focusing on companies that allow for flexible schedules and telecommuting. Her advice: to think of work-life balance as more of a journey than a destination.

“As a working parent with two young sons, I believe that work-life balance is often mistaken as an end-point that we reach eventually,” she says. “In my experience, it’s more of a balancing act—shifting your weight back and forth between your various responsibilities.”

Some days you’re going have to work long hours at the office to close out a project or meet a deadline, in other words; and some days you’re going to work from home to take your kid to the doctor.

Try to find an employer that will embrace that flexibility, Fell says.

This makes sense.

But we’ve also got to try to overcome our own guilt. That means accepting our limitations as parents and workers and people, and setting realistic expectations for ourselves.

It’s difficult to remember, but today’s dads spend more time with their kids than their fathers spent with them by a factor of three. Today’s fathers are by and large more engaged in their kids’ lives than previous generations. So we’re definitely doing better, if not up to the standards we’d hold for ourselves.

When I’m stuck in the office until dark, maintaining that perspective is difficult. But I try to remember that the next morning I’ll be there when Luke wakes up, and with any luck, arrive home in time to help his mom put him to sleep.

And if not, there’s always tomorrow.

Taylor Tepper is a reporter at Money. His column on being a new dad, a millennial, and (pretty) broke appears weekly. More First-Time Dad:

MONEY Kids and Money

You Can Teach a Two-Year-Old How to Save

child's hand with ticket stubs
Frederick Bass—Getty Images/fStop

Worried about your children's retirement? With the help of a few carnival tickets, says one financial adviser, you can get them started early on saving.

A new type of retirement worry has recently surfaced among my clients. These investors are concerned not just about their own retirement, but about their children’s and even grandchildren’s retirement as well.

Much of our children’s education is spent preparing them for their careers. But in elementary school through college, there is little discussion about what life is like after your career is over. Little or no time is spent educating children about the importance of saving — much less saving for their golden years.

When it gets down to the nitty-gritty, parents want to know two things: One, at what age should they start teaching their children about saving? And two, what tactics or strategies should they use to help their children understand the importance of saving?

While parenting advice can be a very sensitive subject, discussing these questions has always worked out well for my clients and me. I keep the conversation focused around concerns they have brought up. In a world where student debt is inevitable and other bills such as car loans and mortgage payments add up quickly, parents are concerned for their child’s financial future. We now live in a debt-ridden, instant-gratification society, so how can our children live their lives while still saving for the future?

Here is what I tell my clients:

You can start teaching children the value of saving as early as two years old. At this age, most children don’t necessarily grasp the concept of money, so instead I recommend the use of “tickets” or something similar — maybe a carnival raffle ticket. As a child completes chores or extra tasks, he or she receives a ticket as a reward. The child saves these tickets and can later cash them in at the “family store.” This is where parents can really get creative: The family store consists of prepurchased items like toys or treats, and each item is assigned a ticket value. The child must exchange his or her hard-earned tickets to make a purchase.

I’ve seen first hand, and been told by others, that the tickets end up burning a hole in children’s pockets. They want immediate gratification, so they cash their tickets in for smaller, less expensive prizes. This is where parents can begin to really educate kids. Through positive reinforcement, they can encourage their children to save their tickets in order to purchase the prize they are really hoping for.

Eventually, saving becomes part of the routine. As children receive tickets, they stash them away for the future with the intentions of buying the doll, bike, video game or whatever their favorite prize may be.

As the child gets older, parents can transition to actual money using quarters or dollars. Now the lesson has become real. Parents can also implement a saving rule, encouraging the child that 50% of the earnings must go straight to the piggy bank. By age five, most children can grasp the concept of money and can begin going to an actual toy store to pick out their prizes. By starting out with tickets, parents are able to educate children about the power of saving at a younger age. By switching over to real money, children can then begin to learn the importance of saving cash for day-to-day items while still setting aside some money for later.

While this tactic may seem like it’s just fun and games, I have received feedback from several clients and family friends that it does in fact instill fiscal responsibility at a young age. Most importantly, I have seen it work first hand. My wife and I used this system with our five-year-old daughter. She was like most children in the beginning and wanted to spend, spend, and spend. Now, it is rare that she even looks at her savings in her piggy bank. She has graduated to real money and seems to really value its worth. She identifies what she wants to buy and sets a goal to set enough money aside for it. Before purchasing, she often spends time pondering if she actually wants to spend her hard earned money, or if she wants to continue saving it. In less than a year, she developed a true grasp on what it means to save and why it is important.

By implementing this strategy, financial milestones like buying their first car, paying for college, or purchasing their first home could potentially be a lot easier for both your clients and their their children. And the kids will learn the value of saving for their retirement, too.

———–

Sean P. Lee, founder and president of SPL Financial, specializes in financial planning and assisting individuals with creating retirement income plans. Lee has helped Salt Lake City residents for the past decade with financial strategies involving investments, taxes, life insurance, estate planning, and more. Lee is an investment advisor representative with Global Financial Private Capital and is also a licensed life and health insurance professional.

MONEY Estate Planning

The Hardest Part of Making a Will: Telling Your Kids What’s in It

Kids taking cookies from plate
Gene Chutka—Getty Images

An awkward part of estate planning is telling your kids how much — or how little — they'll get. Here's how a financial planner can help.

For clients, one of the most stressful aspects of estate planning — already an emotionally difficult process — is the prospect of telling heirs what they plan to do with their assets. Because conversations about legacy plans can be terribly difficult, clients may avoid them at all costs — and the costs can indeed be substantial.

Financial planners, however, can help clients overcome the challenges of having these important conversations. Here are a few suggestions for how to do it:

  1. Encourage clients to communicate their values about money in a larger context. Often, clients’ estate plans reflect lifelong values such as a commitment to charitable giving or a wish to provide first for their families. If children are familiar with their parents’ values, chances are they will have a good idea of what to expect from their estates.
  1. Help clients evaluate their children’s money skills. Just because kids grew up in the same family doesn’t mean they will have the same knowledge and attitudes about money. Especially if children will inherit significant amounts, conversations about estate planning can become part of larger conversations designed to help teach them how to manage and become comfortable with their legacies.
  1. If a client’s estate plan does not treat children “equally,” for whatever reasons, it’s best to share that information well in advance and to communicate it privately to each child. There are many reasons why treating children differently in an estate plan can be the fairest thing to do, but that doesn’t mean it’s a wise to let them learn the specifics when a will is read. If parents and individual children can discuss these provisions and the reasons for them ahead of time, there is less likelihood of conflict between siblings after the parents are gone.
  1. Encourage clients not to allow children to assume they are inheriting more than is the case. Not telling them may avoid conflict now, but it will sow seeds for deeper conflict and resentment after your client’s death.
  1. Help clients prepare children for large or unexpected inheritances. I’ve worked with heirs who were stunned to receive legacies much larger than their parents’ lifestyles had led them to expect. If clients have a substantial net worth that’s under the radar — perhaps in the form of land or business ownership — their children may be totally unprepared for what they will inherit. Planners can suggest ways to help the heirs learn more about both the financial and the emotional aspects of managing inherited wealth. They may also encourage parents to consider options, such as giving more to the children during their lifetime, that might reduce the impact of a sudden inheritance.
  1. Acknowledge clients’ fears, even indirectly. Although it is seldom expressed, perhaps the strongest reason for not discussing estate plans with family members is fear. Parents may be afraid that children will be angry or disappointed, will build too much on their expectations for an inheritance, or will be resentful of other heirs.

Talking to family members about estate planning and legacies can be difficult and even painful. Those discussions, however, will almost certainly be less painful in the long run than the stories children may make up after parents are gone about why they made the choices they did.

Financial planners can play an important role, not by taking on the task of telling heirs what parents want them to know, but by facilitating the family conversations. In especially difficult circumstances, the help of a financial therapist can be invaluable. Supporting clients as they discuss their wishes with family members can be an important estate planning service that enhances the legacy parents want to pass on to their children.

———————

Rick Kahler, ChFC, is president of Kahler Financial Group, a fee-only financial planning firm. His work and research regarding the integration of financial planning and psychology has been featured or cited in scores of broadcast media, periodicals and books. He is a co-author of four books on financial planning and therapy. He is a faculty member at Golden Gate University and the president of the Financial Therapy Association.

MONEY mobile banking

How Millennials Will Change the Way You Bank

woman with iphone image of her mouth in front of her mouth
The mobile generation wants to do everything with pictures instead of words, including paying bills and depositing checks. Maciej Toporowicz—Getty Images/Flickr Select

Nearly all young adults carry a smartphone and prize the camera as its key feature — not just for selfies, but as a means to conduct their life without words.

If a picture is worth 1,000 words, soon we may not need words anymore. Nearly nine in 10 young adults are never without their smartphone, and a similar percentage say the camera function is among the most important features, new research shows. This love of the visual has broad implications for all businesses, perhaps most notably banking.

The youngest millennials have almost no memory of cell phones without cameras. They post pictures to avoid writing about events in their lives and snap photos as reminders to perform ordinary tasks. A third of all pictures taken are selfies, according to a report from Mitek Systems and polling firm Zogby Analytics.

This generation wants to do everything with a snapshot—from clicking a picture for online purchases to depositing money or paying a bill by snapping an image of a check or invoice. Four in five millennials say it is important for retailers to have a high quality mobile app; nearly nine in 10 either have or would deposit money in their bank with mobile technology, the report found.

“There is a substantial disconnect between what young people have come to expect and the often horrendous consumer experience they get with mobile,” says Scott Carter, chief marketing officer at Mitek. Banks have been among the slowest to respond, he says. About half of consumers who try to open a bank account online give up because it is so tedious, Carter says.

A bank that adopts more sweeping image technology such as facial recognition or fingerprint identification and uses it to replace passwords and the need to fill in account numbers would be a big winner—and not necessarily just with the younger set. Mobile banking is taking off with all generations. Only 12 million people used mobile banking services in 2009, according to Frost & Sullivan, a research firm. That number was expected to hit 45 million this year.

More than one in eight Americans have deposited a check within the past year using a mobile app, the American Bankers Association found. Of those, 80% use the app at least once a month. Other findings from the Mitek survey of millennials:

  • 34% have deposited a check by taking a picture
  • 54% would pay for goods using their smartphone as a mobile wallet instead of credit cards
  • 45% would pay a bill by taking a picture if the technology were available to them, vs. the 21% who do so now
  • 36% have switched where they do business based on a company’s mobile app
  • 60% believe that in the next five years everything will be done on mobile devices, much of it through images

We will never be a wordless society. But just think about those awful assembly instructions that come with a box of parts at IKEA or Target. If a YouTube video or other image makes it easier, why fight? A lot of people think of banking and personal finance the same way—and for them, a picture really is worth 1,000 words.

MONEY Kids and Money

Why More Parents Are Talking to Toddlers About Money

toddler counting pennies on table
Derek Henthorn—Corbis

The money talk is occurring as young as age 3. Here's how that could change the world.

Talking about money at home has long been a taboo subject. But the Great Recession changed that, and now we’re seeing evidence of more open discourse—and maybe even a payoff.

Nearly two-thirds of parents with children between the ages of 4 and 12 pay their kids an allowance to teach them basic money management lessons, according to a survey from discount website couponcodespro.com. On average, these parents began teaching their kids the value of money at age 3, the survey found.

In a similar study two years ago, the American Institute of Certified Public Accountants found about the same percentage of parents using allowance as a teaching tool. But they did not start as early. In that study, kids typically received allowance by age 8. In another study, fund company T. Rowe Price found that 73% of parents talk to their kids regularly about money—and about one in five stepped up the frequency since the financial crisis.

Talking more openly about money inside the household is one of the recession’s silver linings. Many families experienced such a financial blow that they could not avoid the discussion. But even setting aside the recession, starting earlier and talking more frequently makes a lot of sense. In the online world, kids begin making money decisions earlier than previous generations, and when they come of age they will have far fewer safety nets. They need to begin saving with their first paycheck and never stop.

The most common money conversations between youngsters and parents revolve around saving in a piggy bank (73%), working for pay around the house (66%), budgeting for things the kids want (57%), and finding bargains at the grocery store (29%), according to the couponcodespro.com survey. The survey also found that the average weekly allowance across the age group was $13.50, which is higher than the often-recommended rate of 50¢ to $1 per week per years since birth.

The survey also found that 73% of parents paying an allowance admit to buying their kids treats, a practice that can undermine the value of paying allowance in the first place. “Sweets and clothes I can understand,” says Nick Swan, CEO of couponcodespro.com. “But buying them toys for no reason when they are being given an allowance can backtrack on everything they are trying to teach their children about money.”

Still, money talk may be beginning to make a difference. In a recent survey of Gen Z teens (aged 13 to 17), Better Homes and Gardens Real Estate found that half say they know more about money than their parents did at their age. Two-thirds attribute their knowledge of money matters to discussions in the home, and two in five credit discussions in school. Three in five have already begun saving.

This youngest generation also seems to be managing credit cards more adeptly than their older cousins, the Millennials. These are encouraging trends that, if they persist, will help the economy long term and may just insulate this youngest generation from another crisis.

 

 

 

MONEY First-Time Dad

Why Millennials Should Have Kids—and Soon

Luke Tepper
Yes, he costs a ton, but he's worth it.

There are plenty of financial and lifestyle reasons to not have a child, but there are also costs to delaying or forgoing, notes MONEY reporter and first-time dad Taylor Tepper.

I finally realized that I’m no longer in charge of my own life a few of weeks ago.

It was a Tuesday at 9:45 p.m. I had arrived home from work at 7:30, just as my wife was putting our son to sleep.

I cooked dinner for the two of us. We ate together on our small dining room table and then spent the rest of the night preparing for tomorrow. Mrs. Tepper collected Luke’s toys and straightened up around the house while I programmed the coffee maker and started to load the dishwasher… only to discover that we were out of soap. Sigh.

I jabbed my feet into my slippers. The dishes needed to be washed, so I found myself headed outside in my pajamas.

As I plodded to my neighborhood grocery store, it dawned on me that I wasn’t running this chore because I wanted to, but because our delicate family ecosystem demanded that the dishes get washed at night. Otherwise, the milk bottles and containers wouldn’t be ready by the morning, meaning my wife wouldn’t be able to pump at work and my son wouldn’t be able to eat.

This two-hour spell of cleaning, organizing, and readying felt like the actualization of a Millennial nightmare.

I had handed over the keys to my liberty to an infant. Before Luke was born, I could sleep all morning, grab a pint whenever I wanted or fly around the country to visit friends. I could quit my job, write a novel, start an artisanal pickled beet company or simply toss a Frisbee in the park all day.

Those days are over. Full stop. But the real question is: Would I ever want them back?

The opportunity cost of having kids

Most people of my generation aren’t like me. In fact, just over one-in-four Millennials tied the knot between the ages of 18 to 32, according to Pew Research Center. That’s 10 percentage points lower than Gen Xers at a similar point in their lives in 1997 and more than 20 points below Baby Boomers in 1980.

Further, research by Wharton School of University of Pennsylvania’s Stewart Friedman seems to indicate that the majority of my peers aren’t interested in kids. Friedman’s study looked at the views Generation Xers had toward bearing children as they graduated college in 1992 and Millennials in 2012. Almost eight in 10 Gen Xers said they planned to reproduce, Friedman found, compared to only 42% of Millennials.

Parenthood comes with a price that Millennials may not be eager to pay. According to the most recent numbers from the U.S. Department of Agriculture, it will cost middle-income moms and dads an average $245,340 to raise one child up to age 18—a stunningly large figure for those who are already burdened by student debt and who graduated into a nasty Recession.

It doesn’t help that America is one of two countries without any kind of paid maternity leave and childcare is very expensive.

Another factor that might dissuade Y women: Mothers who alter their career paths to care for their children can lose out on a lot of potential income. Economist Bryan Caplan pegs the opportunity cost as high as $1 million.

And, of course, there are the non-financial opportunity costs of bearing children: less freedom, less time, and less sanity.

The payoff of having kids early

I understand all of this. I’m living it. My wife and I spend the vast amount of our weekends doing the laundry, sweeping, mopping, shopping and organizing. We schlep and push and haul all day long. Not to mention the $1,600 a month we’re giving to someone else to care for our child. We could have put that money toward a dream vacation, a starter home… or alcohol.

But conceiving a family in your 20s comes with certain advantages. For instance when Luke leaves the nest, my wife and I will be in our mid-40’s and just entering our peak earning years. That means while he’s off at college, we can power save to boost our retirement portfolio.

Plus, you’re more likely to have flexibility at work in your 20s, since you probably have a more junior position with less responsibility. The higher up you get on the food chain, the tougher it is to leave early to go to a parent-teacher conference or soccer game (or so my older colleagues tell me).

There’s also the fact that your ability to actually conceive children decreases as you age, per the Mayo Clinic, while the risks of complication—from C-sections to pregnancy loss—increase in your mid-to-late 30’s. And complications typically mean more money for health expenses.

Look, there are many reasons not to have a child. You may simply not want one—and that’s fine.

But to dismiss the idea of raising a child, or raising him now as opposed to ten years in the future, because you haven’t yet traveled the world or written that magnum opus slightly misses the point of it all. When you raise a child, especially with someone you’ve committed your life to, your self-interest becomes tied up in theirs.

To put it another way, what a lot of people don’t think about is that there’s an opportunity cost to deciding not to have a child: You don’t get to experience the sublime joy of yielding your wants and desires for the happiness of the people you love.

Taylor Tepper is a reporter at Money. His column on being a new dad, a millennial, and (pretty) broke appears weekly. More First-Time Dad:

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