Out of the Red

I'm more frugal than hip

I wrote about iPhone anticipation for today’s paper. Click here for the story. When I came into work this morning, I announced to a colleague that I’d be sick if I spent $600 for a phone. (My frugal husband would too.)

My coworker simply said: "I disagree."

But he wants an iPod, and his cell phone is from the Dark Ages. Why by a phone and an iPod?

"That’s a good argument," I said.

But then again, you can get a free phone from your service provider every few years. That’s what I do. And, you can get a cheaper – albeit not as hip as the iPod – mp3 player. My Sansa player by SanDisk was like $80.

If I had an extra $600, I’d rather spend it on a vacation or – yes, I am finance nerd – save it.

What about you?

Kiddies in day camp?

Attention young parents: Got a child in day camp this summer? Did you budget for that in your dependent care flexible spending account?

If not, and you will have a child in day camp next summer, remember you can pay for that child care expense with pre-tax income by setting aside earnings in a dependent care flexible savings account. According to the IRS: "Unlike overnight camps, the cost of day camp counts as an expense towards the child and dependent care credit." For more info, check out IRS Publication 503, Child and Dependent Care Expenses, at www.irs.gov.

First house. First car. First job. First 401(k).

Yesterday, my series of personal finance stories about big "firsts" ran in MoneyWise.

First house. First car. First job. First 401(k).

Exciting and scary milestones.

Four 20-somethings talked about their experiences with each.

Writing about these financial and professional turning points took me back.

The first car I bought was a 1994 turquoise (yes, turquoise) Chevrolet Cavalier. I bought it purchased right after I graduated from Ohio University in June 1996. I had a down payment but don’t remember how much. The loan was for 48 months and the monthly payment was less than $200. I often paid a little more than the minimum and paid the car several months early.

My first job was as a reporter at the Birmingham (Ala.) Post-Herald. I stayed one year, not long enough to take part in the company’s 401(k) plan.

I started my first 401(k) after one year at my second job, at the Lexington (Ky.) Herald-Leader. I saved 7 percent of my pre-tax income; the company matched up to 6 percent.

My husband and I bought our first house here in Charlotte in June 2004, less than a year after moving from New York City. I had just turned 30.

Want to share your stories about buying your first car or closing on your first house? What about your first job? When did you start your 401(k)? Post your comments here or e-mail me at abaldwin@charlotteobserver.com.

Young banker

Fort Mill reader Joyce Clausen sent this e-mail, which I thought I'd share for young parents looking for a bank for their kids to set up savings accounts.

"I enjoyed reading your articles on kids and savings. Another kid friendly bank is South Carolina Bank and Trust in Fort Mill. They involved my almost six-year-old son in the whole account opening process and even had him sign his own signature card. The branch on HWY 160 also has a coin machine that the kids can use to count their loose change. Every time my son passes the branch he says that that's his bank."

To read the articles Clausen's talking about, see my June 21 post.

Know a kid-friendly bank? Post about it here.

Bright Lights, Big Bucks

The list of the world’s most expensive cities came out earlier this week. Moscow topped the list for the second straight year. A CD – the music kind – costs $24.83 there, according to this story.

Only one U.S. city cracked the top 20 with New York coming in at No. 15. NYC is certainly the priciest city I’ve ever lived. My hometown of Dayton, Ohio just doesn’t compare. By the time my husband and I left New York for Charlotte nearly four years ago we were paying nearly $2,000 a month in rent! In Queens!

What’s the most expensive city you’ve lived?

Start 'em young

A young father e-mailed me asking for a round-up of the advice I’d gathered on raising money-savvy kids. He has a toddler son and an infant son, but apparently is already giving some thought on making them money wise.

Click here and here for two recent stories in which parents talk about how they encourage their kids to save and invest. Some parents match the money their children put in their bank accounts. Other parents help the kiddos set up online investment accounts.

One mom used a strategy I especially liked. She gave her kids a fixed amount of money every month that they had to use on clothing, entertainment and extracurriculars. Essentially, they made their own spending -- or saving -- decisions. If they wanted to buy something, they had to budget for it. They couldn’t hit Mom up for more money or pitch a fit because they didn’t get something they wanted.

I might steal this idea when my daughter is older.

Number crunching made "foolishly" easy

Do you like online personal finance calculators? Nerds like me will need to go to The Motley Fool- www.fool.com. The site has 100 (yes, I counted) calculators on a variety of personal finance topics, including credit cards, car and home buying, budgeting, saving and retirement.

Among the calculators:

Should I consolidate my debts?

How much will it cost to raise a child?

How much should I put down for a new home?

What will it take to become a millionaire?

You could spend – invest, really – some serious time on this site.

Budget busters

My household’s current budget busters: Daycare and Costco.
Now, Costco is something I can control. I don’t really need to buy Perrier by the flat, though I do love the fizzy water. But daycare isn’t negotiable. In fact, it’s like another mortgage payment.

What are your budget busters? Post them here.