That’s why I use Google Calendar as my second brain.

Gmail is automatically connected to Google Calendar and the two work together to create reminders for users. Therefore, I can create a GCal “event” called “pay $300 student loan” on the 16th of June and set an e-mail reminder. On the morning of the 16th, I’ll receive an e-mail from GCal that will remind me to pay my student loan. Then I can sign into my bank’s site and send a check for the loan. Easy, right?

GCal’s effective because you don’t have to spend a month constantly reminding yourself to do a task; instead, you’re almost guaranteed to do it if you don’t procrastinate and complete it right when you receive the reminder email. GCal also declutters your life since a lot of people rely on sticky notes taped to computer screens or refrigirators to remember tasks. Remove those nagging pysical reminders (distractions) from your work area and your productivity will surely increase.

GCal can be used for any task, but here’s some ways you can use it to organize the money in your life.

Pay credit cards

I’m amazed at the stupidity of my credit cards online payments which have the option to pay a certain amount every month (say, $45), but don’t have the option to pay 100% of the bill. You wonder why peole say these companies are the scum of the Earth?

Therefore, it’s up to you to pay your credit card bill – and let’s be real – sometimes you forget. The problem is that one missed payment can cause the credit card company to jack up your interest rate and hurt your credit so it’s vital to pay your credit card on-time every month.

To combat this, click “create event” in GCal  and title it “Pay credit card(s)”. Figure out when your credit card bills post every month and schedule the event a couple days after. There’s no reason to wait until the day your bill is due to pay when a 9 hour memory lapse can cause a late payment; get it out of the way early in the bill’s life. You won’t miss a payment and your credit will remain in tact.

*Productivity bonus* You probably have more than 1 credit card so find a day after the bills post where all of your cards can be paid at once. Concentrating on one task always saves time, so scedule 1 event, instead of 3 or 4 different events for each card, and get the card payments out of the way for the month. You can also choose to have the reminder repeat monthly so you’ll receive the same e-mail reminder every month.

Schedule savings

A lot of online banks provide the opportunity to transfer a certain amount from your checking to savings every month, but sometimes the amount you want to save fluctuates in a given month. If you try to rely on the adige of “I’ll save more later” you’ll find a reason to not save and spend that money elsewhere.

Create an event called “SAVE NOW” (yes, capital letters – this one’s important) that will remind you to check your savings for that month and transfer money from your checking account to your savings account. Schedule this event 4 or 5 days after your paycheck for the month posts – or at the end of the month if you get 2 paychecks a month.

It could be $75 one month, and $1,500 the next, but it’s important to get in the habit of saving something every month. Don’t rely on your memory and optimism to make your savings grow; GCal takes the chance out of it and guarantees results.

Schedule investments

The same reminder idea can be used for your investments in IRAs, 401Ks, or taxable accounts. Sometimes you want to send contributions in January, other times in October. Your probably don’t invest every month, so schedule an event to remind you every 3 months to look at your investment accounts. At this time, go over your finances and determine if it’s the right time to to make your contributions to your accounts. Dollar-cost averaging can help your investments, so perhaps 4 different investments a year will fit your schedule and funds the best.

If you prefer a one time contribution for a Roth or Tradiitonal IRA, then using GCal is very easy. You can make your first contribution for the year in January, or your last one in April of the following year. Schedule one event within that time frame, make sure you have the funds in place, and purchase the funds, stocks, bonds, etc.

GCal takes the worry out of it and allows your mind to be used effectively in other areas instead of worrying about remembering to make your IRA contribution before tax day.

Reminders to increase student loan payment amounts

Many people set the amount they pay on their student loans right when they get the loan or are required to make the first payment. It’s easy to have that amount deducted from account each month and not have to worry about it. However, if you can afford it, you’ll save huge amounts of money by throwing extra money at your loans and paying them quicker.

Set a reminder every 6 months called “Add $$$ to Student Loans?”. When you get that e-mail reminder, take a look at your financial situation. If you have a healthy emergency fund and some savings under your belt, then increase the payment to your loans. If it’s not a good time financially, let it pass, and check again in 4 months.

The average person pays student loans for more than 10 years. You’re financial situation and income are bound to change in that time. Paying off your loans quicker is a guaranteed return on your investment and an easy way to save yourself a lot of money on the back end.

Reminder to increase mortgage or car loan payments

The same idea is true for your house and car loans. Remind yourself every 4 months with a reminder called, “Increase house/car loans?”.  At this time, look at your finances and see if it’s a good time to increase your payments so you’ll save money by not paying as much interest over time.

These are especially important reminders because they’re such big money events in your life. Big events are usually the one’s we procrastinate on the most, so a kick in the butt to look at your payments a couple times a year is something you need.

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The key to making these reminders work is the follow-through. If you click “archive” on the event reminder emails, you’re tasks will pile up and you’ll end up forgetting them.

When you see the e-mail, complete the task. Every time – no excuses. You’ll be saving tons of time making your money tasks reminders, so take a tiny chunk of that time and pay a bill, increase a loan payment, and improve your financial standing.

Humans are pretty smart, but sometimes a little technology can bring some clarity to our lives – and help out our wallets too.

Photo: Kingologik

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I’ve always been interested in how countries handle money, so this week’s carnival will take a look at different currencies from around the world.

Enjoy some quality posts, and I hope you learn something about money you never knew before!

Euros - .74 = $1

Eliminate the Muda – Health Care For Kids When You Can’t Afford It!

Not Made of Money – How to Save Money When Buying Plane Tickets

Free From Broke – Home Costs To Consider

Money Help for Christians – Exploring Credit Card Fanaticism

Australian Dollars – 1.077 = $1

Learn Save Invest – Investing Isn’t About Being Sexy

The Millionaire Nurse Blog – Improve Your Money Management: 10 Reasons to Start Now!

Narrow Bridge – A Look at Personal Financial Statements

Little House in the Valley – Are Lazy People Dumb?

Chinese Yuan – 6.8 = $1

Financial Samurai – The Curse Of Making Too Much Money And Not Pursuing Your Dreams

Cool to be Frugal – Why the Waste?

Clarifinancial – Should You Buy Life Insurance at Work?

Budgeting in the Fun Stuff – BFS Way to Diagnose Your Financial Health

Russia’s Rubles – 29.1 = $1

Personal Finance by the Book – Upcoming Tax Changes and What They Mean to You

Car Insurance Comparison – How to Find Cheap Car Insurance

Rainy Day Saver – Obsessive Personalities: Debt & Debt Repayment

Frugal Zeitgeist – A Budget Egypt Vacation

Malaysian Ringgits – 3.18 = $1

Evolution of Wealth – 7 Ways Permanent Life Insurance Isn’t Permanent

Canadian Finance Blog – Meet The Money Mavens Network

Money Reasons – Choose the perfect location to raise your family

One Money Design – Ways to Improve Your Finances (Part 1)

Japanese Yen – 94.2 = $1

Redeeming Riches – 5 Things Dora the Explorer Teaches Us About Personal Financial Planning

151 Days Off – Day 29: Who Wants to Live in a Small Tropical Island?

Deliver Away Debt -Newton’s First Law of Debt Reduction

Thanks for reading and make sure to check out next week’s carnival at Little House in the Valley!

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Last week I wrote a long overdue post on a topic that means a lot to me, money education in high school.

One of the biggest challenges with creating courses about money is differing opinions about what is important for students to learn, and what is best left to be learned on your own.

Because of this, I opened up the forum to the readers and said I would post their thoughts about what a money course should entail if they were good.

Well, of course they were.

Here are some of my favorites:

Ryan @ Planting Dollars:

I always thought high schoolers should go through a class simply titled “why?” to discuss why they do the things they do. Related to that they could figure out what their goals are in finer detail and then from that be inspired to learn about money.

The only reason I care about money is because of the freedom and ability to achieve my dreams associated with that. Therefore I think more than anything inspiration and making kids realize through proper money management they can achieve their dreams is more important.

Len @ Len Penzo:

Believe it or not, when I was in school we learned how to balance a checkbook in the 4th grade. Not sure when that disappeared from the curriculum but it needs to return.

I think you need to add to your basic curriculum the most important rule of all after learning how to balance that checkbook. The Rule of 72! It is a very versatile tool that I use quite often to help me make quick estimates on interest-related problems.

William @ Business is Personal (Finance):

Seems like might end up being another “blame the teachers” scenario if PF classes don’t produce a turnaround. Let’s just say I’m unsure of how receptive students will be.

Joe @ Personal Finance By The Book:

I have been pro-active in helping my local high school teach our seniors about finance. I purchased a Dave Ramsey high school curriculum that our high school has integrated into a “Resource Management” class…a requirement for all seniors.

The class is a scaled down version of Dave’s Financial Peace University, complete with DVDs of him giving the talks and worksheets that fit the talks. The class is called Foundations in Personal Finance…you can learn more here:http://www.daveramsey.com/school/foundations/

The beauty is that Dave is doing the teaching, so the content is not left to some teacher who might not have a clue.

Bret @ Hope to Prosper:

Back when I went to high school they did teach some personal finance, along with auto shop, home economics and a number of other usefull subjects that are gone today.

We had a mandatory “Life Skills” class. And, we had an imaginary checking account that we got paid in, then had to write out checks to pay all of our imaginary bills. It was awesome and it should still be required. Of course, it would need to be updated, since people didn’t have many credit cards, student loans or online banking, back in ‘82.

Paul:

I would just add there should be some discussion of insurance. Everyone has to buy auto insurance, and most people will someday either need to or want to buy homeowners/renters insurance, not to mention life insurance and all the other kinds of insurance that are out there.

A student should be able to understand various limits of auto insurance, the differences in type of homeowners insurance (HO3 vs. HO6) for instance, and in general how insurance functions. Many people think all insurance is the same, and shop on price or funny commercials only, and they don’t realize what the actual coverage they are getting is. It isn’t until it is too late and a loss already occurred that somebody realizes they didn’t have nearly the right amount of insurance.

Terry @ Transition Your Life:

I’d suggest the students have practical assignments such as tracking what they currently spend over the weeks and then having in class discussions on how their choices effect their spending habits. Hearing how their peers spend or save can be eyeopening.

Anther projects – such as how much does it cost to “feed” you and your “baby” – might be a good investigation and discussion topic.

I’d also suggest the teens become familiarized with aggregates such as http://www.mint.com that help track spending.

Discussion on tracking spending and saving is an important component for today’s students. They are less likely to write checks, or balance their checking account. Most today rely on what the ATM or online banking account tells them.

Gail @ Wide Island View:

It’d probably also be useful to give students a primer on stock market investing. It’d be interesting to do a class competition where students pretend to invest in stocks and see who comes out on top in the end.

And, I feel a little silly suggesting this, but I also wonder if it’d be worth it to touch on retirement saving. I imagine retirement is the last thing on the minds of high school students but it won’t be long before they actually have to make decisions about contributing to 401Ks or Roths. And of course it’s best to start saving as early as possible.

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A huge thanks to all of the readers for their input. I”ll update this post with more reader comments from the original post as they come in.

Now, a new question for you:

What’s the next step to getting a money course in to a high school? Thoughts, questions, concerns, opinions – leave them in the comments.

Photo: Kevin Dooley

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Ever since I started learning about money in the summer of 2008, I’ve been fascinated with the lack of money education in our lives. No one teaches us anything about money, yet, every single person in this world deals with money every day.

America’s a nation that repeatedly struggles when it comes to money, but no one is stepping up to address and fix the problem.

High school students take classes like Spanish, clothing, Science, French, wood shop, and technology but for some reason basic money management is vacant from a majority of high school curriculums.

In order to improve the money savviness of Americans, mandatory money classes must be implemented in high schools around the country.

It doesn’t need to be a huge class taking up tons of school resources and time, but here’s what I think a money management curriculum should look like for high school students.

Class 1: Introduction to Money Basics

Sophomore Year

1 semester

2 days a week

Freshman are busy acclimating to new surroundings and are too preoccupied trying to find someone to kiss so the first class would be for sophomores.

This class should cover the basic money essentials in one’s life. This course will provide a stable money foundation for the teenagers as they move on to get part-time jobs, start driving, and eventually move onto college.

Topics covered in this course would be:

Banking

- An introduction to checking and savings accounts

- Online banking

- Interest rates

- Compound interest

Budgeting

- How to save for future goals

- How to create a budget for expenses

- How to track expenses and create savings goals

Credit (cards)

- What makes up a credit score

- How to use a credit card

- Understanding the numbers behind a credit card (APR, interest, minimums)

- The real cost of credit card debt

Class 2: Money in the Real World

Senior Year

1 semester

2 days a week

It’s easier for parents to keep an eye on their child’s spending when they’re living in their home, but when they go off to college and the credit cards start sprouting out of no where, a money education is even more important.

This class takes the basic money education the students learned in the sophomore class and builds on it as it applies to real world money situations.

Topics covered in this course would be:

Student Loans

- How to find them

- The difference between private and public loans

- How to properly use them

- How to pay them off

Cars and Car Loans

- Difference between leasing and buying

- How to save for a car

- Understanding car loans

Housing and Mortgages

- Renting vs. owning

- How to find a house you can afford

- The specifics of a mortgage

- How to properly save for a house

The cost of real-world bills

- Understanding the bills adults have

- Phone, electricity, rent, etc. .

- How to budget for them

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I’m really interested to hear what you guys think about this one so let me know in the comments what you think should and shouldn’t be included in a money class.

If there are enough comments, I’ll put together a comprehensive curriculum of reader’s choices in a future post.

What kind of format for classes would you like? Are 2 classes enough? When should the classes be held? What topics are essential and what could be left off the curriculum?

Thanks, I’m really looking forward to what you guys up come up with!

Photo: cdsessums

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Karmin is a renowned reporter for The Wall Street Journal so I decided to dive into a subject I didn’t know too much about. Besides, I write about money 3 times a week – and it doesn’t hurt learning more about your favorite subject.

The book is split into just 6 chapters, but is still 250 pages. Karmin discusses several aspect’s of the dollar including its rise to power, history, how it’s made, and impact on the world

With all of the negative media talk about the dollar recently, it was scary to read how vital the dollar is to the world’s financial health. Many countries outside of the U.S. rely on the dollar for trading and even Saddam Hussein’s palace had hundreds of thousands of dollars stored away in case of a financial emergency.

Here’s my thoughts on the positive and negative parts of the book.

You can tell Karmin has spent a better part of his adult life writing about finance for the WSJ. His inside stories and accounts of financial moments are really fascinating. For example, he talks in depth about the specifics behind the foreign currency market. I learned how popular this market is and that the amount of trading done on the forex market destroys the amount done on the regular stock market.

My favorite parts of the book were the information about counterfeiting. The amount of time and energy the government puts into thwarting potential counterfeiters is truly amazing. The specifics within the bill, the way it feels to the finger tips, and the specific weight are all meticulously discussed and reworked.

Readers also get an insider’s look at the Bureau of Engraving and Printing. These are the people in charge of making the dollars that are sent around the world. The security is tight and the BEP is actually a private company – charging the Federal Reserve around 5.7 cents for each dollar it creates.

The accounts of BEP workers trying to steal cash was my favorite part of the book. Any bills that are mistakes are to be destroyed, but occasionally workers try to steal them as they are awaiting their death. They usually didn’t get far, but the book actually had me laughing out loud at some of the creative ways workers tried to smuggle out money.

Besides, learning about the tangible money, it was fascinating to learn how much other countries rely on the dollar. For example, Ecuador, El Salavador, and East Timor have all been using the dollar for almost 10 years. This is incredible to me, and really shows how powerful the dollar is.

Other countries will only trade with dollars. So if a country called Austin wants to trade with a country called Morgan, Austin will change their money to dollars, and then to Morgan’s money. The dollar is the great equalizer in many trades around the world.

This is a picky choice, but I didn’t really care for stories about what made the dollar rise or fall. The last 1/3 of the book read rather slow for me and I found myself skipping sections because I wasn’t interested in what caused the dollar to fall in 1981. If you’re interested in the economics of the dollar, you’ll love this part, but I could’ve done without it.

The book isn’t for beginners so if you’re looking to learn more about money for the first time, I wouldn’t start with Biography of the Dollar. Some of the discussions about foreign exchange markets were over my head and I had to skip sections that seemed way too complicated for my interests.

I loved the parts about the tangible dollar, but would’ve liked to learn more about the history behind the dollar’s creation. Not the idea of the dollar, but the physical piece of paper you and I have in our wallets. Who’s idea was the dollar? What were some stories about its rise to what we have today? This was the most fascinating stuff to me, and I was disappointed the book left me wanting more in that category.

I would suggest The Biography of the Dollar to anyone who is intrigued by money at all. As the dollar loses power, it’s important to understand what we actually have in our wallets.

In 2006, only 66% of the world’s cash reserves were in dollars, compared to 71% in 1999. More and more people are holding their money in multiple currencies and this book will introduce you to a new way of thinking about your money.

If you’re not interested in the economics of the dollar, but are interested in the history of the dollar, then you’ll still enjoy the read.

It’ll be interesting to come back to this book in 25 years to see how the dollar’s place in the world has changed. Karmin and Biography of the Dollar does a terrific job of making sure you better understand the complexities of the dollar and will be able to react accordingly as the dollar’s place in the world changes over the next couple of decades.

Grade: 78 out of 100

Where do you think the dollar will be in 25 years?

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Personal finance blogs often dwell on savings, investing, and self-sacrifice for the greater good of your financial life. But when it comes down to it, if you don’t spend your money on the things you love, you’ll go crazy and end up spending $499 on a new dining set at Costco just because you kept the lock on your wallet to tight.

I’m sure that some people assume since I write about money related topics, I sit at home and monitor my bank account 12 hours a day. I do pay close attention to my money because personal finance interests me, but I spend my money on stuff just like the average person who doesn’t pay attention to their money.

Since I’ve started learning about personal finance, I do spend significantly less than I did. I recall going to 6 concerts my spring trimester of freshman year. I loved each of the experiences, but that’s something I wouldn’t spend my money on now.

I do spend on things I love. For example:

Travel: Last weekend Corinne and I traveled to Nagoya to visit our friend and go to a concert. I had a wonderful time and the memories from the trip are worth more to me than a new iPod or shirt would be. Next weekend, we’re headed to Osaka to see sumo. I didn’t think twice about the price tag when the opportunity arose. This December, after a year and a half of working, Corinne and I are planning on going to Hawaii. It’ll be a chance to experience some America for the first time in 18 months, get warm, and visit a place I’ve always been interested in seeing.

Memories appreciate with time and paying for travel will always be something I’ll do.

Food: I’m not a large guy, but I love to eat good meals. Corinne enjoys cooking so we often share nice sized meals if we have a night together. We shop frugally, but we don’t smother our food budget to save an extra $25 a month. A nice glass of wine and a well-rounded meal is worth it to us. We’ll spend on groceries because we enjoy the time spent, the socializing, and the food that comes with a meal at home.

We also enjoy going out to meals. We won’t blow $150 bucks, but if a friend invites us out to dinner, we’ll definitely go because the experience, the socializing, and food are what matters to us.

On the other hand, there are some things that I won’t pay extra for and I do attempt to cut in order to save:

Clothes: I enjoy dressing nice, but I’m rather cheap when it comes to clothes. I was a big thrift store fan when I was in America and I still have t-shirts that are over 5 years old.

I’ll never spend over $25 on a nice shirt or $40 on a pair of pants. I rarely go shopping for clothes and instead try to use the ones I have for a long period of time. I realize these prices aren’t that low, but compared to how some people compulsively shop, I consider myself very frugal when it comes to clothes.

Books/movies/music: All these items are the ones I got at the library in America. I rarely spent money on these items since I could usually wait less than a week and have them for free at the library.

I will spend money on an iTunes album if it’s for a band I love, but that is about the only time I’ll spend money on this category of entertainment. On top of savings money, a big reason I avoid purchasing these items is the clutter. It’s not worth it to have them sitting around an apartment, taking up space, and collecting dust.

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So on this Sunday, I ask you the readers a question:

What do you love spending money on? What areas do you cut back on to save an extra buck?

I’m interested to see what the results are – enjoy your Sunday!

Photo: Rpongsaj

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There are a lot of big purchases in our lives – TVs, laptops, phones, iPods, Kindles. A lot of the time we think we can’t live without these items for more than a couple of days – maybe a week at most. Often if they break or wear down, we immediately go out and buy a replacement without thinking.

But for people who still receive some presents on Christmas or birthdays, having a little patience and the calendar on your side can lead to big savings with these big-ticket items.

Here’s how Corinne and I saved $750 on a laptop using this savings tip.

When Corinne came to Japan in September she came without a laptop because she wasn’t sure if she was going to find a company to sponsor a visa. Fortunately, she found a company, but we found ourselves having to share a laptop without a TV, books, or any other entertainment device readily available.

We were out of options.

We couldn’t find an American laptop anywhere in our city. We could’ve purchased a Japanese laptop but we didn’t want to deal with the keyboard and memory loss from the Japanese fonts. Buying a Mac was another option because Apple is the only company that provides free international shipping, but we didn’t want to shell out an extra $300-400 for a laptop we didn’t love.

Fortunately, we realized that by sacrificing for a couple of months we could wait until Christmas and ask for a new laptop as a joint present from different family members – saving us hundreds of dollars.

We could’ve shelled out the extra cash for the Mac and had the computer by October, but we waited too long – which played out in our favor.

We only had the problem of getting it to Japan, but when we realized another ALTs family were going to be visiting we asked them to bring a computer for us if we had it shipped to their house. Thankfully, the agreed.

Our savings plan

Our family wanted to get us presents for Christmas, but they didn’t know how to go about it with us being 6,000 miles away.

When we wrote them an email saying we were in need of a new laptop and we had a creative plan to get it to us if they helped finance the gift, they happily obliged to split the cost of the laptop knowing this was what we really wanted.

We ended up bunching our Christmas presents from my mom, Corinne’s parents, and my grandparents into one laptop.

By waiting 3 months until we were close to Christmas, we saved $750 of our own money on a laptop.

Were those 3 months difficult sharing a laptop? Yes. Were they worth the savings? Definitely.

Save with patience

Patience is an underrated aspect of savings. If you can wait until a birthday, Christmas, Hanukkah, or Easter is near you can batch your presents from different family members into one big-ticket item.

You may have to wait a couple of months for the new iPod, but it’ll be worth the savings and your family/friends will be content knowing they helped get you a present you truly wanted.

If you think the price of the item will be too much for your family to cover, ask them to help subsidize the price of the item. It’ll still save you a ton of money and they’ll still feel content with helping you out.

This savings tip works out for both parties and also avoids the problem of wasted presents that plagues too many holidays.

So the next time one of your electronics dies, take a deep breath, and see if this savings tip can fit into your life.

Photo by MJTR

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Sometimes we overlook the fact that a lot of people who are attempting to jumpstart their finances aren’t aware of the financial accounts they should have.

In the video below I introduce a simple way to visualize the important financial accounts for your life.

It’s called the Financial Family Tree and in 5 quick bullet points you’ll better understand what accounts you should have, what to look for when shopping around for an account, and why they’re so vital.

This is only my second video, so let me know what you like and dislike about the video in the comments below!

[If you can't view the video, click here to go to the page]

[:21] –  What accounts should you have?

[:39] –  The Financial Family Tree

[1:02] -  Father: the checking account

[1:45] -  Mother: the online savings account

[2:35] - Daughter: retirement accounts like 401ks and IRAs

[3:15] - Son: taxable investing accounts

[3:53] – Pets: credit cards

[5:00] – Choose simple and efficient accounts and you’re finances will be ready to grow.

Which accounts do you think are necessary for people who are just starting off with their money?

Once again, I’m new to the video format so let me know what you think by leaving a comment below!

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Clark Griswold embodies the American dad. A caring family man who wants nothing more than to host the perfect Christmas for his family and leave everyone smiling. As we know, there were some wrinkles in the process but in National Lampoon’s Christmas Vacation, Clark manages to carve out the perfect Christmas for his family.

Here are 10 money tips I learned from Clark Griswold and Christmas Vacation. I also included a quote with each money tip to get you in the Christmas Vacation mood.

Happy holidays!

1) Don’t buy what you can’t afford

Buying on credit is a risk you should avoid at all costs. Clark put a down payment of $7,500 (almost $13,000 in today’s money!) on a new pool for his family when he didn’t have enough in his checking account to cover the cost.  He was expecting a Christmas bonus to come his way, but this risky financial move nearly left him and his family in a money nightmare on Christmas Eve.

Instead, save up for big purchases, like a pool or a vacation, by taking a percentage of each paycheck and automatically transferring it to a sub-savings account named for the savings goal. This way you can properly save for the goal and avoid any risky purchases that could put you and your family into a money hole.

Ruby Sue: “Uncle Clark, are you sure you ain’t Santa Claus?”
Clark: “I’m sure… I can’t even afford to be an elf.”

2) Everyone needs an emergency fund

If Clark couldn’t afford a pool, he was probably living paycheck to paycheck with no real savings. If his Christmas bonus wouldn’t have come, he would’ve been in deep debt. His poor money habits almost ruined Christmas for not only him, but his entire family.

An emergency fund is vital for everyone’s finances. At first, start by putting a percentage of each paycheck aside in a separate savings account. Eventually, this fund should hold anywhere from 6-12 months worth of expenses to starve off a job loss or major financial crisis. At first it may be difficult to build up this fund, but your financial life will become much less stressful as soon as you get this fund to a comfortable place.

Clark: “It’s a membership to the Jelly of the Month Club.”
Eddie: “Clark, that’s the gift that keeps on giving throughout the entire year.”

3) Spend money on the things you love

Personal finance isn’t about sitting at home with your lights out and eating rice to save money. It’s about making smart money choices so you can spend on what you love.

Clark loved the holidays and his favorite part was going all out to decorate his home. He probably spent a lot of money on the 25,000 Christmas lights which covered every square inch of his home. But Clark took pride in decorating his house and it was a Griswold family tradition that he was sharing with his son. This was money well spent because it was what Clark truly enjoyed.

Aunt Bethany: “Is your house on fire, Clark?”
Clark: “No, Aunt Bethany, those are the Christmas lights.”

4) Be a smart holiday shopper

Stores break out all kinds of tricks to get consumers to purchase unexpected items during the holidays. Clark fell for one of these tricks: the attractive cashier. Although you don’t see it, would you be surprised if Clark left with four expensive necklaces that he didn’t plan on purchasing? Recognize, that stores try to manipulate you into spending on items you don’t need. Go shopping with a list and stick to it in order to save this holiday season and beyond.

Clark: “Oh, I was just smelling – smiling. I was just blouse – browsing.”

5) Treat others with respect because it may help with money, too

Treat others with respect and dignity and your actions may help you financially some day. Clark welcomed – although hesitantly – an uninvited Cousin Eddie and his family into his already packed home for Christmas. As a thank you for Clark’s hospitality, Cousin Eddie kidnapped Clark’s boss when he found out Clark wouldn’t be receiving his Christmas bonus. This wouldn’t have happened if Clark wasn’t inviting to Eddy’s family and his actions saved Christmas for the Griswold family.

Remember, you never know where help will come from so treat everyone the way you’d want to be treated.

Clark: “My cousin-in-law, whose heart is bigger than his brain…”
Eddie: “I appreciate that, Clark.”

6) Money allows you to do what you want

We all love Cousin Eddie, but he’s not doing himself or his family any favors by being unemployed for 7 years. I’m all for following dreams, but sometimes you have to suck it up and get a paycheck. With two kids (my reader Joanne points out in the comments that Eddie has 4 kids, thanks!), a wife, and a dog that eats more than the family combined, he needs to be more rational about his employment situation. Any sort of income from a job would provide at least something for his family to live off.

This is why smart money decisions when you’re young are so important. They allow your finances to breathe so you can make the decisions you want instead of freeloading off your extended family for dog food at the local supermarket.

Clark: “Seven years and he can’t find a job?”
Ellen: “Catherine says he’s holding out for a management position.”

7) Money isn’t the end word

Clark’s boss thought he was saving the company and himself some money by cutting the Christmas bonuses from the budget. What he ended up realizing was that he was lowering morale of his workers and this would hurt his business even more in the long run.

Not every decision comes down to the numbers. Debt, buying a home, and education are just some of the financial situations we come across in life that have more weight to them than just the numbers. Make sure to take into account personal well-being and how a decision will effect you over the long haul. Thanks to Cousin Eddie, Clark’s boss ended up making the right money decision, and this ends up helping not only his workers, but his business.

Clark’s boss: “I guess a healthy bottom line doesn’t mean much if to get it you have to hurt the one’s you depend on. It’s people that make the difference. Little people like you.”

8) Quality time with family is the best and most affordable entertainment

No matter how many TVs, cars, or Xbox 360s you buy, there’s nothing like sitting with family around a Christmas tree as you exchange presents. This is something you can never buy and this is what Clark holds closest to his heart. All he wants is for his family to get along and have a wonderful Christmas under his roof, and that’s what he ends up delivering.

So remember, if you can’t afford presents or a huge turkey dinner, hold your family and friends close because they’re your most valuable gift this holiday season.

Clark: “The most enduring traditions of the season are best enjoyed in the warm embrace of kith and kin. Thith tree is a thymbol of the the thspirit of the Griswold family Chrithmath.”

Have a wonderful holiday with your family and friends!

Merry Christmas from Foreigner’s Finances!

Photos courtesy of Warner Brothers

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Note: I’m writing this post while completely content with my life in Japan. I’m suffering from very little homesickness and this post is in no way a vendetta against Japan. I’ve wanted to write a critical post about Japanese finance for a while, but in no way is this me being sad and missing home and Chipotle. Well, I do miss that one a little.

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The perception of Japan in America is one of futuristic technology, ninjas, and sushi. For the most part, this is accurate. But not much is known about how the Japanese handle their daily finances.

I always thought most countries used debit, credit, ATMs, online bill-pay, and other 21st century finance concoction like Americans. Upon landing in Tokyo in July, I was introduced to a different side of Japanese finance.

The way the Japanese handle their finances seems like they’re ten years behind America.

Here are the 4 aspects of Japanese finance I’ve been disappointed with.

1) Bank Books / No Online Banking

After signing up for my bank account I was issued a bank book. A physical bank book. It’s blue and has cartoon dolphins on it. Initially, I held it in my hand and just shook my head in disbelief. It’s a little more boxy than a checkbook was in America in 1997.

The bank book keeps a running total of my bank balance because there’s no online banking in Japan. Whenever I head to the ATM to make a withdrawal, I insert my bankbook and it updates my withdrawals, deposits, bills, and provides a running total of the money in my account. I appreciate that it prints out the totals instead of having to balance my bank book, but it’s still a shock to my American finance system. It’s bulky and a pain to carry when I want to update it. I was also issued a bank card so the bank book adds clutter to my financial life.

The no online banking is an inconvenience, but it doesn’t have me cursing the Japanese Ben Bernake. I check my online financial accounts too much already so not having another money website to worry about is fine. But it’s disappointing when I want to see what bills have been charged to my account and I have to pack up my bank book and trudge to the nearest ATM (only .5 miles, but it’s the principle).

*Updated 12/7/09*

I’ve now had a couple people inform me that online banking does exist in Japan, but it appears you have to sign-up for it when you initially go in to the bank to get your account. According to my friend Dawn, who went in to the bank with a girl who speaks wonderful Japanese, it takes 2 months for the online banking to start. I’m not saying this is a universal rule, but this appears to be the case in my prefecture.

Perhaps this is a topic for another post, but the idea of having to opt-in to online banking seems ridiculous. It’s proven that opt-in programs don’t support high percentages participation and I just don’t understand the benefits of the banks not having their customers use online banking.

Anyway, thanks to my readers for the heads-up on this.

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2) Credit Cards Exist, But They’re Hiding

I’m pro credit card. I always paid of my balance at home and reaped the rewards from cards. I love the convenience and the ease of not carrying cash. That all changed when I left O’Hare in July.

My post earlier this week about the credit card use of Asian countries showed that Japan is warming up to credit cards but I have yet to see one person pull one out at a store. Cash is king and it doesn’t seem like any of the stores push credit cards. I never see signs saying they accept Mastercard or Visa and it seems like a non-issue. I’m in a rural area of Japan, so it might be different when you get to the big cities. Regardless, it’s very surprising to see no signs of credit cards in my day-to-day life. This leads to my third disappointment.

3) Change is Everywhere

Since cash rules, I find myself carrying a lot of it. Japan also uses change more prominently than America. 100 yen is about a dollar and Japan has change for the 1, 5, 10, 50, 100, and 500. In America, I recall trying to get rid of some change at a store to free up my pockets or bedside table and feeling really good about myself when I handed it over to the 7-11 employee in exchange for another Slurpee. It felt great to be free from the constraints of dirty coins. In Japan, it’s a never-ending battle against my change and one I’ve forfeited because it’s not going to cease until I leave the country.

4) The Non-Existence of Debit Cards

Debit cards are everywhere in America. Even the anti-credit people are usually ok with debit cards. They provide ease and you don’t have to worry about interest rates, debt, or missing a payment. They don’t exist here. I need to do some more investigative work to see if anyone has them, but it seems like debit cards are about as popular as credit cards.

So, why?

Japan is loaded with tradition and their respect for the way things have been is the only reason I can come up with for the four grievances above. The idea of a major country-wide financial change seems unlikely in a country that holds the elderly in such high regard and is inherently conservative towards most topics.

Not everything is negative. My bills and paycheck are automatically withdrawn and deposited into my account. I’m also told by friends that overdraft fees are more lenient. I’m not going to try to test this one out, but if you don’t have sufficient funds in your account for a bill the bank just waits a while to see if you fix it. Pretty trusting of them if you ask me.

I’m sure as the younger generation comes up, plastic and the internet will play a more prominent role in their daily financial lives, but it doesn’t look like any big splashes will be occurring soon.

Which of the four gripes surprised you the most about Japan? Am I being too picky about my money or are these warranted complaints?

Photos by and Mike Cash & iMorpheus

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