Friday’s need-to-know money news

bankruptcy_formToday’s top story: Careers that can help you conquer your student debt faster. Also in the news: What a good credit card company will offer people with bad credit, how to pay for bankruptcy when you’re broke, and five apps that automate your money.

Some Careers Can Help You Conquer Student Debt Faster
Kissing your student debts goodbye.

4 Things a Good Credit Card Issuer Will Offer People With Bad Credit
Getting on the path to better credit.

How to Pay for Bankruptcy When You’re Broke
A classic Catch .22

5 apps that automate your money and make you richer
Building your savings a few cents at a time.

Thursday’s need-to-know money news

imagesToday’s top story: Four ways to help teach you kids about finances. Also in the news: The best jobs for the future, how to not let debt collectors ruin your life, and how to save money on the summer’s big music festivals.

4 Analogies That Help Teach Children About Finance
Making a complicated subject easier to understand.

Best jobs for the future
Time for a career change?

Don’t Let Debt Collectors Ruin Your Life
Being in debt is stressful enough.

5 Ways to Attend Summer Music Festivals on the Cheap
More money for t-shirts!

Maximize Your Grocery Budget With the Inverted Pyramid Method
It’s not as complicated as it sounds.

Match.com Babies Can Win a College Scholarship
Yes, you read that correctly.

Is it time for you to get unstuck?

Getting UnstuckBob Sullivan’s excellent book, “The Plateau Effect,” is finally out in paperback with a new, snazzier title: “Getting Unstuck: Break Free of the Plateau Effect.”

Co-written with technology entrepreneur Hugh Thompson, “Getting Unstuck” covers what to do when hard work stops working. Whether it’s advancing in your career, trying to lose weight or building relationships, a plateau can leave you stranded putting in more effort while achieving less.

The book has already garnered a lot of attention. The Miami Heat used it last year on their way to a second NBA championship. It was featured on the cover of O! Magazine and in the Wall Street Journal.

But a lot more people need to discover and read this book. Understanding how the plateau effect works can help you stop wasting time and effort, and start getting better results.

 

Baby coming? What to consider before you quit

Dear Liz: My husband and I have decided that next year we want to have a baby. So we have at minimum a year and nine months to make sure we’re financially prepared. I did some cursory Googling and I’m already a bit overwhelmed. I’m not sure where to start.

I know I should figure out how much the medical costs will be, but how do I figure out how much everything else costs? Do you have a checklist of things we should be aware of and consider? One thing I could use some guidance on is whether I should stay home or put our baby in daycare so I don’t miss out on work benefits like healthcare and 401(k) matching. I like my job and bosses, and if I leave I will have to find a new job that may not be as good when I decide to reenter the workforce. But if we decide to have a second child, I’m worried that childcare costs will be too much for two young children. Know of any good books on this subject?

Answer: By leaving work you wouldn’t be missing out only on benefits. Research by economist Stephen J. Rose and Heidi I. Hartmann, president of the Institute for Women’s Policy Research, found that women’s average annual earnings decline 20% if they stay out of the workforce for one year and 30% if the absence stretches to two or three years. Many find it tough to rejoin the workforce after extended absences.

Quitting work is the right choice for some parents, but you shouldn’t do so simply because you fear childcare costs. For a few years, those costs might eat up most or all of your paycheck, but such expenses decline over time. If you continue to work, your earning power and retirement contributions will continue to grow.

Meanwhile, some parents find they can reduce childcare costs by staggering their work schedules, tapping family members or sharing a nanny. Research the childcare options in your area so you have an idea of what’s available and the costs.

You can continue your research into budgeting for a child with the excellent, constantly updated book “Baby Bargains” by Denise and Alan Fields. This field guide offers product reviews and realistic assessments of what you actually need to buy for your child and what you don’t.

Another good resource is financial writer Kimberly Palmer’s “Baby Planner,” available on Etsy.

With all your planning, keep in mind that parenting always presents surprises. You may decide to stop after one child or keep going until you have a houseful. The important thing is to remain flexible and don’t assume you know how your future self will choose to live.

One of the best pieces of advice in Facebook Chief Operating Officer Sheryl Sandberg’s bestselling book, “Lean In,” is that women not cut themselves off from career opportunities because of how hard they think combining work and child-rearing will be. “What I am arguing is that the time to scale back is when a break is needed or when a child arrives — not before, and certainly not years in advance,” she writes.