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A will. When you’re a parent, you need a basic estate plan, and that means writing a will. It’s the only document that allows you to name guardians for your children, which means you’ll be able to select who will take care of them if something happens to you. If you don’t have a will, the choice may be up to the court and the rules in your state. If your financial situation is rather simple, you can make an inexpensive will on a website like LegalZoom. If things are more complicated – you have a lot of assets – you’re better off seeing an attorney. It will cost you about $1,000 for a basic estate plan, but it’s more than worth it.

Insurance. Obviously, you want to make any necessary changes to your health insurance, so your child’s care falls under your plan. If you’re married and you and your spouse are on different plans through work, compare them to see which option has the best coverage for the lowest cost for your new addition (if you don’t have health insurance, every state has a program that proves free or very low cost coverage for children. Check out insurekidsnow.gov for details). You also want to make sure you have life insurance, because you now have a family dependent on your income. If something were to happen to you, you’d want them to be taken care of. I wrote about this in detail a few weeks ago here.

College. Maybe you’re not quite ready to save for college yet, and that’s perfectly okay. You’ll get there, and your own retirement needs to come first. No, that’s not selfish – it’s practical. Not only can your kids borrow for college if they choose to go, but the best gift you can give them is not having to rely on them in your retirement years. To do that, you need to have a healthy nest egg that will get you through.

But when you’re ready to start putting away money for college, you can do it in a variety of ways. I always recommend starting with a Roth IRA, if you don’t already have one, because it will allow you to pay for your own retirement, but also college for your kids. If, when your kids are ready to start school, you think you have enough banked for yourself, you can pull some money out of the Roth to help with tuition. If you’re behind, you can leave it in and continue contributing for yourself.

Beyond that, I like 529 plans. Every state has one (or more) and they offer some tax benefits for saving for college. You can stash a little money away automatically each month, and invest it appropriately for your kids age – when they’re young, you’ll be more aggressive; as they approach high school, you’ll get more conservative because the money won’t have as long to bounce back from any market downturns. To find a plan, start with your state, which will often give you extra incentives and tax benefits. If you don’t like the plan’s investment options, or it hasn’t performed well in the past, shop around. Savingforcollege.com is the best place to do your research.

Finally, go ahead an open an account with UPromise or BabyMint. Both allow you to save money by purchasing things you already buy anyway, because they partner with retailers to deposit a percentage of your purchases into a 529 or other account.

Of course she does. 

This is why losing 10 pounds is best achieved by aiming for 2 pounds a week — then taking satisfaction in the small movements of the scale.  And middle income folks who aim to save reasonable amounts save more — in total dollars — than those who set the bar too high.  Set a mark you can reach, cross it off your list, and like my friend Sasha, take pride in every move you make. 

Set a spending cap. Especially now, when families are tightening their belts, it’s important to set some spending ground rules to avoid any major fiscal repercussions. “If you can afford for your kids to try a bunch of sports, then go ahead and let them experiment!” says Pavini. But if your financial situation is a little more restricted, then you need to do some research on what a new sport or after-school activity will really cost once you add in all of the extras. If it’s too much, then you may need to cut an activity altogether – or see if there are any deals if you decide to only participate a few days a week.
 
Decide what’s a passion, and what’s a whim. Kids often want to try something new because their friends are doing it – whether it’s football or dance classes, you should always give your kids the chance to try it out. “Until you’re convinced that this is something they’ll commit to,” warns Pavini, “don’t make any big investments.” Many retailers like Play it Again Sports will rent used equipment, and often group lessons will come at a discounted rate.

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You’re probably thinking that your child doesn’t have much of an identity to steal, at least not financially speaking. And you may be wondering how thieves get their hands on children’s information in the first place – after all, young children don’t often shop online, at least not with their own credit cards, and they don’t use email the way adults do. But aside from the fact that children are increasingly joining social networking sites like Facebook, which can be a hot bed for scams, you have to remember that your child has a Social Security number and card, which can easily be stolen. Add that to the fact that about a third of identity theft is perpetrated by friends or family members, and your kids are at risk.

So what, then, do you do about it? First of all, guard kids’ Social Security numbers as securely as you do your own, and if your children use email or social networking sites or even online chat services, talk to them about the dangers involved in responding to or friending people they don’t know.

If you suspect that your child has been victimized, you can check his or her credit by writing to the three major credit bureaus – Experian, TransUnion, and Equifax – and asking them if there is a file with your child’s Social Security number on it. It’s possible that you’ll be asked to send in a copy of your child’s birth certificate or other information that confirms his identity, and that’s okay.

If a credit report is discovered under your child’s number, that likely means something fishy is going on. Inform the bureaus that it is a fraudulent file, in writing, and keep a paper trail, including notes of who you speak to if you communicate by phone as well as mail. All three bureaus should automatically add a fraud alert to the file – follow up to make sure that happens.

At that point, you can head to your local Social Security office and ask if anyone is working under your child’s Social Security number. You have the right to ask that, and if the answer is yes, have the administration issue a new number for your child. File a report with your local police department as well.

Once you have that new Social Security number, it’s back to square one. He can start fresh, and the credit reporting bureaus will wipe the old number out, if it was active, so it can no longer be used. If you can, you want to get all of this taken care of by the time your child turns 16; otherwise, he’s getting close to college and private student loans, if they’re needed, will rely on the student’s credit history. The process of wiping out the old number and starting fresh can take a couple of years, so give yourself some room.

Even if you haven’t had any of these issues in your house, you should still be aware of signs. Here are a few of the most common indicators that someone could be using your child’s identity:

Pre-approved credit applications sent to your child.

Bills or bank statements mailed to your child’s name for accounts that aren’t his.

Calls or letters from debt collectors.

Denial of a driver’s license. This could mean that another person already has a license under that Social Security number.

But that doesn’t mean there aren’t jobs out there. I asked Kimball about where there are still opportunities if your teenager hasn’t found work yet. “There are lots of sectors still hiring,” he says. Right now, SnagAJob has postings ranging from positions at 11 Six Flags locations to shelf-stocking and cashier work at national craft stores like Michael’s and JoAnn Fabrics. Keep in mind, however, that some of these positions have age regulations. “National companies likely won’t hire you until you’re 16,” says Kimball.

If you’re trying to think out of the box, Kimball suggests approaching companies with an idea of your own. “Go to a non-profit organization to see if they need help stocking shelves or organizing donations for a nominal stipend,” he says, “and prove that you’re willing to help them get work done.” Also, if your child is particularly handy, you could pay them to do the work around the house you’d normally hire someone else for, like repainting the porch or mowing the lawn.

While some positions require a high school diploma, many do not. “Small businesses are always looking for teens and young adults,” says Kimball, for part-time help with organizing their office, helping with social media sites, and answering phones. According to SnagAJob, 61% of small business owners say that they’re hiring. “This is where you want to use your network of family and friends as leverage,” says Kimball. Now is not the time to feel shy about asking the friend who asked you for connections to return the favor. Or about putting your own teens to work.

Tom Gegax, author of The Big Book of Small Business, thinks hiring your own kids is a win-win. Instead of putting the money you’d pay them in some other teen’s pocket, you keep it in the family. “If your business is providing your family’s livelihood, your children might be some of your most honest and hardworking employees you can hire,” says Gegax. “Hiring your own children gets a bad rap sometimes, but you’re hiring them already knowing their attitudes and what they’re good at.”

But what if your child’s interests stray from your business’ focus? Perhaps you and another small-business owning friend could swap. Start with ground rules. You’ll need to set the same expectations of your own child or a friend’s as you would of any of your other employees. And paying them the same wage (I don’t think collusion laws apply in these circumstances) would eliminate any familial tensions. Then let them put the experience on their resumes and use it to get a job on their own after college, a time when Gegax doesn’t approve of hiring your own kids. “They need to understand job searching and have experience with other employers. They need to see how tough it is.”

Dear Kerry,

How great would it be if every family had friends like yours! You’re right that you don’t have all that much time to invest the money — particularly for your ninth grader. So, as you decide what to do with it, I’d keep two things in mind. First, putting it somewhere where any growth is sheltered from taxes. And second, although you’re focused on growth, not losing the money is equally, if not more, important.

For both of those goals, I’d take a look at a 529 college savings plans. These work a lot like Roth IRAs in that you contribute after-tax money to the account, and your dollars are then invested and grow tax-free. When you pull the money out, as long as you use the proceeds for education, no taxes will be owed.

When it comes to picking a 529, you have a few options. In Nevada, the Vanguard 529 plan is the direct-sold (as opposed to adviser-sold, which tend to have higher fees) version of the Nevada 529. It has a wide array of age-based, static options. “529 college savings plans can be used for room and board, books and supplies in addition to tuition and fees,” says Mark Kantrowitz, publisher of FastWeb.com and FinAid.org, “so in this case, sticking with the Nevada 529 college savings plan might be best.” If, however, you find that this plan doesn’t really suit you, visit savingforcollege.com to consider all of the options you have available. You should consider 529 plans based on their performance, investment options, expenses, and perks.

Once you’ve put the money into the plan you choose, you need to decide what to do with it. A 529, like an IRA, is an account. Once the money is in it, you decide how you want to manage it. Personally, I suggest using an age-based portfolio, which works like a target-date retirement fund. For your 9th grader, you’ll want to choose a more conservative option – perhaps choosing one that includes a CD, so a portion of your money is FDIC insured — whereas you can choose a more moderate, balanced portfolio for your younger kids. However, your children are past the age at which you’d want to have a stock-heavy, aggressive portfolio, so be sure to keep that in mind.

Jean

With the school year coming to a close, moms everywhere are wondering how to keep the kids busy this summer without going broke. If you don’t have tons of money for camps and lessons, you can still keep your kids active and entertained thanks to some great in-store workshops and money-saving strategies.

Summer Reading Programs
Most community libraries host their own summer reading programs, but did you know that you can also sign up for them at a book store near you? You don’t even have to leave the house to get started. Download Barnes and Noble’s Passport to Reading form online and after your child reads eight books, bring it to a store to receive a free book. Check out the Double Dog Dare Reading Program at Borders, where kids get a free book after reading ten.

Tween Techies
Kids ages 8-12 can get creative with computers while they learn to produce photo slideshows, edit videos, or create custom CDs with their iPods at nearby Apple stores. When they’re done, they may even be able to teach their technically-challenged parents a few things! Registration begins in June, but you can submit your email now at the Apple Camp page to be notified when classes are announced.

Zoos and Museums
Most museums offer free admission one day a month or at certain times during the week. Go during those times to experience some culture – completely gratis. Other great discounts may be available through your employer, AAA, or your credit card. Some libraries even offer museum memberships for checkout as they would books and other media.

Summer Movie Camps
Summer movie camps have made theater-going for kids affordable again. Usually held mid-week when traffic is slow, theaters can offer showings classic movie favorites at rock-bottom prices. In some cases the passes are totally free. Just be sure to get there early to grab a good seat!
AMC Theaters
Cinemark Theaters
Regal Theaters

Playgrounds and Parks
Take your meals on the go and enjoy a picnic at a nearby park or playground. To make it more fun, consider packing balls, sand toys, bubbles, Frisbees, scooters, bikes, in-line skates or binoculars. Even national parks that normally charge admission fees have announced free entrance days this year. Their 2010 summer dates include June 5th -6th and August 14th-15th. To find a park in your state, visit this link.

DIY – Kid Style
Future home-improvers and crafters between the ages of 5-12 can create simple projects on Saturday mornings if they live near a Michaels, Lowe’s or Home Depot store. Check on upcoming projects and dates and register online.
Lowe’s Build and Grow Workshops
Home Depot Workshops for Kids
Michaels The Knack

Game On!
Kids can bowl two free games a day at participating AMF Bowling Centers all summer long. Sign up for a family summer bowling pass for just $23.95, and up to four adult family members can bowl along with them, making it a frugal summer activity that’s especially great on rainy days. Log on to Kidsbowlfree.com to check availability and to register.

Kimberly Danger is the creator of Mommysavers.com, an online community that helps moms live well for less. She is the author of Instant Bargains: 600+ Ways to Shrink Your Grocery Bills and Eat Well for Less and The Complete Book of Baby Bargains: 1,000+ Best Ways to Save Money Every Day. She lives in Minnesota with her husband and two kids.

For starters, you should know that nothing about this bill is immediate. It takes awhile to get the ball rolling with a huge piece of legislation like this, and it is certainly going to take some time for the insurance companies to get acclimated. But two big changes are going to come in September, and I want you to be prepared for them.

The first is that health insurance companies will no longer be permitted to decline coverage to children because of pre-existing conditions. That means if you’ve been struggling to find care for a child with asthma or other medical conditions – or you’ve been paying an arm and a leg for the coverage you have – you may want to shop around again come September. Believe it or not, buying individual coverage can sometimes be cheaper than group coverage, so it pays to do a little research. If you find a good children’s policy on the open market, you can keep yourself on your work’s plan – especially if your employer pays for a portion – and set up your children on the individual plan. You can shop and compare plans at ehealthinsurance.com.

The second big change when it comes to children is that they can now stay on their parent’s health insurance plan until age 26, regardless of whether or not they’re in school. Prior to this, states made the rules here, and often coverage was cut off at age 18 or 19. This could be a big money-saver, but no one should cancel their plan before the new coverage is in place. If you crunch the numbers and determine that it would be cheaper for your child to have coverage through you, rather than an individual plan, wait until they are safely on your plan, then cancel the old.

Finally, if you participate in your state’s Children’s Health Insurance Program (CHIP), which is for lower-income families, the reform included a provision that maintains that program at least until 2019. That means that even in extreme budget shortfalls, your state can’t cut your child’s coverage – certainly a sigh of relief.