The Money Jar

By Abbie

The purpose of the money jar is to help you handle your money better.  How often you put money in and how much is totally up you.  With a jar holding your money so that you can actually see how much you have, it makes it easier to make financial decisions.  You need to be smart when you're spending, and this jar helps you keep track of your money easier.  It's a wonderful budgeting idea for those who have never found another way that works for them.  If you try it and it's not for you, at least you know you gave an attempt. 

One really cool things about these jars is that it's close to home.  Years ago, back in the 30s, when society was going through the Great Depression they lost a lot of their money.  Many still have trust issues with the banks because of that, so when it comes to this jar, you have the money safe at home with you.  Now that's not to say you can't have bank account open, but at least you have money on the side in case something happens.

Now there's always ways it can go wrong.  Like, people can just reach into this jar and take your money with ease (as long as you and/or your family aren't watching) and the jar is fragile so it can be broken.  A thief could come in a take the jar easier than if it were a safe as well.  Overall, however, I think it's a pretty good idea and the concerns I mentioned above aren't very likely anyway.  Just be careful and if you're really worried, put it somewhere safe where you and your family can get to it easily.

http://www.gailvazoxlade.com/articles/budgeting/magic_jars.html

Retiring on a Pension Plan

By Abbie

A Pension Plan when you regularly (like perhaps monthly) place money into a savings account for when you retire.  It's something that you definitely want to start as soon as possible so you can get a good sum of money when you're done.  A defined benefit plan and a defined contribution plan are the two different kinds of pension plans. 

The defined benefit plan makes sure you have a certain amount of money regardless of what you have invested.  They generally base this on age, salary, and how long you've been with the company.  It assures you have a certain amount of money monthly.  This plan is costlier for businesses so many are switching to the defined contribution plan.  Railroads and airlines are two that used this plan and today are struggling so they had to stop, unable to afford it.

For the defined contribution plan you just put your own money in.  However, you control the sum going into the defined contribution plan, so although it might sound harder, it's probably better.  Often the defined benefit plan doesn't leave you enough money to live comfortably after you have retired.  It's also just less of a risk for companies to leave your retirement fund up to you to work out, because if they promise you that they'll give you a certain amount of money monthly, they must provide you with it.

https://www.investopedia.com/articles/retirement/06/retirementforminors.asp

https://www.thebalance.com/what-is-a-pension-plan-2385771

http://time.com/money/collection-post/2791222/difference-between-defined-benefit-plan-and-defined-contribution-plan/

https://www.money-rates.com/personal-finance/employee-pension-plans-disappear.htm

Robo Advisors

By Abbie

There used to be two options when you were dealing with financial issues.  You could either do it yourself or hire a FIA (Financial Investment Advisor).  An FIA would be great if you had a ton of money, but if you're young and/or have a low net worth, it's not ideal.  Basically, robo advisers do what a human advisor does, but for less money.  Now there are still things that humans do better, like answering tricky questions, but since it's cheaper it's worth it.  Despite this, robo advisers can manage more accounts than a human can, so really it there's are pros and cons just like with everything else.  Besides, today we have the internet we can go to for any questions we may have, and while sometimes people online can lead you wrong, there's a lot of information to be found.  People are also greedy at times, so working with humans isn't always the easiest to do.

I like the idea of working with a robo advisor instead of a human one.  It's likely less awkward than dealing with a real person and it's cheaper.  I think it's lack of ability to answer certain questions can be fixed by looking for help online, and that's really the biggest downside that I found.  It seems a lot less confusing, too, and great for those just beginning to deal with finacial issues.

http://www.businessinsider.com/what-are-robo-advisors-2017-9

https://investorjunkie.com/35919/robo-advisors/

Consumer Debt:

By Abbie

Consumer debt is when purchased items don't rise in price over time with borrowed money, like with a credit card.  Worst case scenario, it can lead you to bankruptcy.  The purchase could be clothing, gadgets or even a vacation.  It is debt, as the name says, that you owe from goods you have purchased.  Payday Loans and credit cards are just two common examples of consumer debt.  Being in debt is not ideal as it can lead to stress and even make it harder for you to make regular payments.

Although consumer debt may sound bad, there are some positives to it, like going in to debt to boost your earning power.  For example, you could take out a car loan so you could travel to a higher paying job.  It's something you need to be responsible about, so don't go around making rash and the worst thing in the world, you just need to be smart.

https://www.investopedia.com/terms/c/consumer-debt.asp

https://loanscanada.ca/debt/what-is-consumer-debt/

http://www.theheavypurse.com/how-to-teach-your-kids-to-think-about-debt/

Buying a New Car Vs. Buying a Used Car:

By Abbie

Buying a new car is exciting, which I'm sure most would agree with.  It's very ideal and you don't have as much to worry about.  It has a warranty, no one has used it before, it's yours.  It also has a good possibility of having little to no interest in a long-term payment plan.  With a new car, you avoid people trying to scam you into the used car and paying the bills for it.  They could also be trying to dump a bad car into somebody else's hands.  If the used car was handled badly previously, it could make it harder to get a warranty on it or even if they made modifications.  Getting a mechanic to look over your used car can also be costly.

However, buying a used car is cheaper than buying one new and less time consuming.  You can have used cars checked for any damage to lessen your worries.  You can get an extended warranty as well, but even if you don't, warranties these days can be for three to four years so depending on how old the car is when purchased you could still be covered.  Not only that, but we've come very far since the first car, so there's less reason to doubt the cars ability to function safely because it's not brand new.

It's up to you on whether or not you trust buying a used car.  There's lots of ways you can assure that it's safe, but in the end if buying a new car feels safer and you can handle all the problems that will come (because either way there's going to be a downside) then do what makes you feel more at peace.  I think that either way works, however the used car seems ideal for its cost compared to the new car.

http://www.autotrader.ca/newsfeatures/20170428/buying-new-vs-buying-used/