| June 10, 2013
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What You Should Know by Age 22

22

Here at BreadVault, we recently came across an article from a contributor on Business Insider titled, “22 things you should know about money by age 22.” The article focuses on the recent college graduate and how they can improve their financial literacy and be better prepared for financial freedom down the road.

The list is worth reading for graduates, almost-graduates, and any parent seeking some advice on what their kids need to know to succeed post
pep rallies, homecomings and dorm room living.

Here are some of our favorites from the list:

By 22, you should have … a budget — have your income figured out, including financial help from your parents. Make lists of all your fixed expenses and your variable expenses. Seeing your expenses at one time will make you aware of what you have left to save or spend.

By 22, you should have… an understanding of money management. Financial literacy is extremely important in setting up future success for a fledgling adult.

By 22, you should have… an honest talk with your parents about their expectations. If you move back home with Mom and Dad, find out if they expect you to contribute to the household, land a job within a certain amount of time, and how your financial situation will impact theirs. Be truthful about how much you can pitch in, and let them in on any anxiety you’re having. This type of clear communication will eliminate any elephant in the room.

By 22, you should be… setting aside at least 10% of any paycheck you make. You need to start building a nest egg you don’t touch, exclusively for emergencies like an unexpected layoff or a long bout of unemployment. The rule of thumb is to save up at least 6 months of living expenses.

The lesson here? We are all responsible for our own decisions and having the knowledge to make sound financial choices early on helps ensure a more successful financial future. And to those of you older than 22, you know what they say… better late than never!

Category: How to Save Money, Learn to Invest | Tags: , , , , , , ,
| May 29, 2013
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BreadVault Today

BreadVault isn’t the best app it can be yet. With some time, feedback, and frequent site and app use under our belt since its October 2012 launch, we know that we can improve the BreadVault user experience and make the app more of a go-to utility for kids and parents, alike.

Technology-based companies are often expected to be overnight successes.  I’d be lying if I told you we never have visions of that “going viral” moment, but our focus is mostly on “perseverance”.  We’ve built a first version of our product, and it will evolve with new ideas from developers and users at a sensible pace.

We sometimes have to remind ourselves and others, that BreadVault is a business just like any other, even though it’s a bit unorthodox.  It requires time and extensive deliberation and testing as much as it requires that we think fast on our feet to act on a breakthrough or to cut loss towards a dead end idea.  Some days, you strike out with all of your development ideas.  Other days you hit home runs, even some tape measure shots.  After the fact, some “great” ideas become duds.  Then again, other seemingly insignificant ideas have become critical to success.

This is the nature of every startup business. Startups are fluid and energizing, but every bit as stressful. You might experience “highs” and “lows” – sometimes multiple times a day – but I wouldn’t want it any other way.  I can’t imagine waking up and thinking the same thoughts every day and carrying out the same tasks every day. That’s just not how my DNA was wired. It works for some. It doesn’t work for me.  I need to operate in the healthy disruptive state of creating innovation.

BreadVault is soon going to solicit feedback from its growing user base by sending you a survey.  In it, we are going to present some ideas that have come out of re-engineering discussions.  Some of the development questions will probably prompt you to say “it’s about time”.  Other questions might even get you more excited about the potential for the app.  Undoubtedly, others might cause you to say, “that’s a stupid idea”.  All of these are acceptable responses.  Next to high participation rates, candor is the second most important element for a company like ours when conducting a survey.  We depend on your engagement for our improvement.

Keep checking in with us and continue to follow our progress on Facebook, Twitter, Pinterest, and our on our blog.  We continue to strive to build a great community of users and followers who know that we are putting our best foot forward to creating more household financial success stories.  Our purpose is to help your family make good financial decisions become second nature.

Sincerely,

Ross Almlie

Founder of BreadVault

Category: Uncategorized |
| April 12, 2013
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Financial Literacy Month

Have you heard? April is Financial Literacy Month! The focus of this national holiday is to encourage individuals and families to learn more about their finances so they can make informed, responsible decisions that will help them to secure a successful financial future.

How much do your kids know about money? How about the stock market? Taxes? Social Security? Your kids have most likely heard you talking about these things, but how much do they really know?

Take some time this month and find out what your kids know about saving money, spending money, investing money, etc. Then once the conversation is started, take that opportunity to build on what they already know.

If they ask something that you don’t know the answer to, why not research and find the answer together? You’ll both learn something new and benefit from the experience!

Make the most of Financial Literacy Month!

Stephanie, BreadVault Project & Marketing Assistant

Category: Invest as a family, Save as a family | Tags: , , , , , ,
| March 27, 2013
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Phone Books and Fungicides

I owe an apology to CenturyLink, which delivers my phone book to me every year.  I also owe one to a fungicide company whose name I can’t remember.  You see, I fell into that social media trap of updating my status with a sarcastic quip about the joy of receiving another new phone book and later about the lack of television advertising creativity about broad leaf weed fungus (did I even say that right?).  I’m full of subtle jabs against entities.  It’s been my social vice.

Some days, social media just lures me in to making bad decisions.  There were definitely plenty of more significant topics that I could have opined about yesterday, but I tend to stay away from the hotly contested ones.   Instead, I picked on the low hanging fruit targets and ended up cyber-bullying my phone company and a fertilizer company.

Surely, there will be a day this coming year when I am too lazy to log onto my computer or dig out my iPad and will, instead, opt for the phone book to find the number to Domino’s Pizza.  And if I stopped my sarcastic tone for a moment and looked at the use for fungicide in a more intelligent context, I would not be critical of a company that is helping combat the scarcity of our food sources.  So, my apologies to anyone who endured my drivel yesterday.

I know the apology may seem trivial to you, but this self-reflection of guilt was part of my larger epiphany about social media today.  Each of us “has the floor” in every status update and tweet we write, and we also have the added luxury of not having to face the adversaries we sometimes opine about.   No one has to walk in the shoes of their adversaries because in the vacuum of social media, your opponent is “them” or “those people”.  We view them as just labeled populations of people who have eyes without a face and whose stories we will never truly know.

I scanned through my own friends list tonight on Facebook, and I don’t really Know-know the majority of them.  I consider them all friends to one degree or another.  I’d love to know them all better, but time and space don’t afford me that opportunity.  Nevertheless, they all are my audience, and I am theirs.  When I write a quip about the phone book, it’s my way of encouraging them to gang up with me in satirizing paper-based solutions in a world that has gone digital.  It was trivial.  It was also prideful, indulgent and unnecessary.

I guess my own admission of fault has me wondering if the entire collection of comments known as “news feeds” has decimated our ability to find common ground, work together towards compromise, show respect for others whose opinions we disagree with or simply be pleasant to one another.  We get ourselves so wound up.  Yet, I know we wouldn’t act the way we write in the company of our social adversaries, who are often also our social friends.

Today, I’m starting with an apology to a phone company and a fertilizer company.  Tomorrow, I’ll start to choose my words more wisely on social media and only speak – er, update my status or tweet – when I have something good to say.  There are plenty of olive branches to go around.  Grab one, and let’s see if we can lower the toxicity of the web.  Just friends helping friends…without knocking each other down.  Let’s build each other up again…

Category: Uncategorized | Tags: , , , ,
| March 7, 2013
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Investing in your kids’ future

During America Saves Week, I personally pledged to save money each month for my daughter’s education. The 20-year-old me probably would have been more likely to save for something flashy like a new pair of expensive shoes or a shiny car with features I didn’t need. However, now older and also a parent, I find myself eager to save for bigger investments, like college tuition. And since college tuition continues to rise, the more I can save, the better!

grad_baby

 

I will admit it feels a bit odd to me to be saving for my daughter’s college tuition when I myself am still paying off my own student loans, but then again that’s all the more reason that I want to start saving early so that the money we put away for her education has time to grow in a 529 plan. Hopefully she can avoid some of the headache that comes from exiting college already thousands of dollars in debt.

While very excited to pursue this savings pledge that I made, I do frequently wonder about one thing though – will my daughter appreciate this gesture?

The answer – who knows! Especially if she takes after me (the 20 year-old-me was ready to blow her money on expensive shoes, remember?) But I think someday she will, even if it’s not until she has kids of her own.

 

Stephanie, BreadVault Project & Marketing Assistant

Category: How to Save Money, Learn to Invest | Tags: , , , ,
| February 26, 2013
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The Birthday Buyout

So, my daughter is turning 11 next week, and I offered her a deal.  She could have the usual party where mom and dad shell out $150 for her and ten of her friends to swim at an overcrowded hotel pool OR she could just take the money.  We offered her $100 in a buyout – the fair value of that pool experience.

money-gift

It was a tough decision for her because she lives for social opportunities spent with her friends.  However, part of her social opportunities also exist in her desire to get an iPod Touch and an Instagram account, which she is about $125 short from purchasing.  After some intense deliberation, she took the buyout but bargained to host a sleepover for just two of her friends.  We honored her negotiating skills, and we struck a deal.

Next week, she will be the proud owner of an iPod Touch, and mom and dad will have a stress-free Saturday afternoon.  I love a Win/Win…Not to mention, we saved a lot of parents a Saturday morning trip to Target or Wal-Mart to find a last-minute gift.

Category: How to Save Money, Save as a kid, Uncategorized | Tags: , , , , , , , ,
| February 25, 2013
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10 Ways to Save $100 During America Saves Week

Guest post by Meg Favreau, Senior Editor of personal finance blog Wise Bread.

Money is like a cake. When you get that delicious dessert, it can be tempting to eat it all at once. But if you do, you’ll end up with a stomachache, that sugarcoated feeling on your teeth, and perhaps most importantly – no cake for later.

Similarly, if you spend all of your money, you’ll probably end up regretting your splurges – and wishing you had some funds sitting in the bank.

Often, savings strategies are obvious – you set a big piece of cake aside, and it’s there waiting for you. But sometimes, it’s the little things that make that cake disappear. I’m reminded of the time my childhood friend Mike held a cake on his lap while we were driving home. He took fingerful after fingerful of frosting – and when we got home, Mike discovered that he had completely defrosted the cake without realizing it.

The following list features both kinds of savings strategies – big ones that work all at once, and little ones that add up over time. All of them can be put into action during America Saves Week, and every single one ensures that you can have your cake and eat it too.

1. Track Your Spending, and Make a Budget

Understanding where your money is going is the best way to start saving, which is why your first step is to make a budget. It might be that, once you make your budget and realize how much you’re spending in certain categories, you can immediately save $100 by making little trims here and there.

2. Pack Your Lunch

One of the keys to saving is developing long-term habits – such as bringing your own lunch to work instead of eating out. If you’re worried you don’t have time, cook something on Sunday and put it in individual Tupperware containers. Start this week, and over the course of a month, you can easily save $100.

3. Check If You’re Being Over-Serviced

It’s easy to “set it and forget it,” paying the same bills every month. This week, take a look at your regular services – are you using all of your cell phone minutes? Do you have more coverage than you need on your car insurance? Are you utilizing any extra cable channels you pay for? If your answer is no to any of these, call your provider, and change your plan.

4. Negotiate Your Bills

Checking for over-servicing isn’t the only way to lower your regular bills. If you’re not paying a promotional rate for services like cable and Internet, you’re paying too much. Call your service provider, and ask if there is any way you can lower your bill. If they don’t automatically say yes, suggest that you’re going to find another provider. Be patient, nice, and firm, and you can get a better rate.

5. Vow to Reuse, Repair, and Repurpose Instead of Buying New

Every time you think about buying something new, ask yourself – do you really need it, or can you make do with something you already have or that you can borrow from a friend?

6. Get to Know Your Credit Card

Visit your credit card company’s website and read the fine print. Many credit cards offer free benefits that are not well publicized. These benefits may include extended warranties, free tickets, price drop protection, extra discounts, concierge services, and cash giveaways. Of course, you should not use a credit card at all if you carry a balance every month. If you can’t control your spending, consider switching over to a cash-only system.

7. Change Your Living Situation

Yes, this is a big change – but it also has big financial rewards. If you have extra space in your house, try renting out a room, either permanently or to travelers using a service like Airbnb. Or, if you live alone, it might be time to get a roommate.

8. Clean Out Your Pantry

Empty your cupboards, see what you have, and plan meals around the ingredients you want to use up. You’ll slash your next grocery bill, and you’ll help ensure that food doesn’t go stale.

9. Create a “Cheap Fun Club” With Friends

If you’re trying to save money, it can be disheartening when friends invite you to things that you don’t want to spend money on. Instead, be proactive, and invite your friends to share in frugal activities with you, such as potlucks, watching movies at home, and board game nights.

10. Sell Your Stuff

Taking the time to declutter your house and sell your extra stuff has multiple benefits. Not only can you make money getting rid of your old items, but you might also discover other useful things you had forgotten about.

How are you planning to save money for America Saves Week?

asw2013

Category: How to Save Money | Tags: , , , , , , ,
| February 21, 2013
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Gearing up for America Saves Week

Set a goal. Make a plan. Save automatically. Sounds simple enough, but less than 50% of Americans have a savings plan with specific goals.

Set a Goal. Make a Plan. Save Automatically. This is the slogan for America Saves Week, an annual opportunity for organizations to promote good savings behavior and a chance for individuals to assess their own saving habits. This year America Saves Week will take place from February 25 – March 2.

BreadVault has joined the nation-wide movement and is excited to help promote the importance of building wealth, not debt, and teaching kids the benefits of saving. You can join too by taking the pledge to save.

As America Saves Week nears, we’re dedicating ourselves to finding the best money saving tips and advice that we can share with you, starting with our 10 simple rules. So stay tuned for more and prepare to save. We’re also pledging and picturing our own savings goals here at the BreadVault office:

 

 

Set a goal. Make a plan. Save automatically. It’s that simple!

Stephanie, BreadVault Project & Marketing Assistant

Category: How to Save Money, Save as a family, Save as a kid | Tags: , , , , , ,
| February 17, 2013
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Taking an Honest Look at Your “Needs”

Not to be outdone by the Almlie family’s weaning off cable TV, I decided to share how my own family is saving money in 2013. I, however, must admit that this strategy did not come about through an evaluation of expenses and how to reduce them. It actually was a decision to not incur an additional monthly expense (and one that I really wanted!).

Resisting the alluring call of the smartphone:

For those who have never owned a smartphone, ignorance truly is bliss, not even knowing what you are missing without one. Me – I had one through my employer and was spared from even having to think about the cost of the phone or the addition of a data plan to my monthly bill. Then along came a job change and no more company smartphone. I was suddenly left feeling lonely without instant access to my email and social networks, lost without navigation, and bored without apps to explore or games to play. So I of course told my husband that I was going to upgrade my boring old “dumb” phone for a smartphone, to which he replied, “You don’t need a smartphone.”

beadvault-honest-look-at-needs

Excuse me?? Instantly insulted, I began my rebuttal, “Of course I need a smartphone! I need it for things like checking my email, taking videos, Facebook, navigation, and…” That’s about as far as I got with my argument. While defending my need for a smartphone, I was thinking to myself, “Why do I need a smartphone?”

The truth is, I had gotten used to some of the conveniences that come with owning a smartphone, but none were a legitimate need, or could not be done on a different device that we already owned. So I begrudgingly told my husband he was right (I hate it when that happens!) and decided to continue using my old “dumb” phone, which really isn’t so dumb. After all, it still serves its ever-important purpose of allowing me to make phone calls and send texts, which I remember seemed pretty cool to me back when I first got a cell phone!

Now here I am, less connected to the mobile world and sometimes missing those smartphone features (like my BreadVault app!), but proud knowing that I consciously decided to forego an expense that was very tempting to justify, though wasn’t really a necessity.

Stephanie, BreadVault Project & Marketing Assistant

Category: How to Save Money, Save as a family | Tags: , , , ,
| February 14, 2013
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Make a Charity Your Valentine This Giving Hearts Day

Talk about an appropriate charitable event this Valentine’s Day! The Dakota Medical Foundation (DMF) and Impact Foundation are currently holding their 6th Annual Giving Hearts Day where for one day only, DMF and other community donors will match online donations of $10 or more made through impactgiveback.org to the charitable causes they’ve noted on their website.

What a fantastic opportunity to give back to these causes that do so much to make a difference in the world we live in. If you haven’t done so already, please consider donating today. And great timing for those of you BreadVault users with charitable giving goals met in your Give Channel!

Here is just a handful of the many charities you can help today:


Happy Valentine’s Day!

Stephanie, BreadVault Project & Marketing Assistant

Category: Donate as a family, Donate as a kid | Tags: , , , , , , , , ,
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