| Recently, I was on the phone with a friend of mine | | | | up a savings account, an online brokerage account, |
| from California who just purchased his first home. | | | | start a 529 college savings fund, there are a variety |
| He's a single father and he's in his early 30s. He was | | | | of ways that you can show your kids how to save |
| upset that his parents had never stressed the | | | | and how to help them understand the value of a |
| importance of owning a home or even talked to him | | | | dollar. |
| about how to save. "Man, I'm just thinking about all | | | | Now back to the house buying part. You're probably |
| of the money I wasted when I was younger," he | | | | thinking, that's cute, but how am I supposed to save |
| complained. It's true, before we had kids, what were | | | | enough money for a down payment on a house |
| we spending our money on? Remember when we | | | | when I struggling to meet my rent every month? |
| could shop at the store and it was all about us? Didn't | | | | Well, if you're serious about owning a home, you |
| have to worry about somebody putting Dora cookies | | | | need to know what obstacles you're facing. |
| or fruit roll-ups in the shopping cart? | | | | Get your credit report. See if you have anything |
| It's an understatement to say that having kids | | | | negative on it and then fix it. It may take a few |
| changes everything, especially our financial situation. I | | | | months or a year, but start working on it now. Open |
| know as a single parent it's hard to see the forest | | | | up an account for your down payment and have a |
| for the trees while trying to juggle work, bills and | | | | certain amount of money from your paycheck |
| kids. It can be difficult enough to imagine how to pay | | | | deposited into that account every pay period. Figure |
| for the plumber and soccer classes much less saving | | | | out ways you can trim down your budget to save, |
| enough for a down payment on a house. But it is | | | | i.e. bringing a lunch to work rather than eating out, |
| possible. | | | | kicking that smoking habit, etc. Also, look into doing a |
| When Shirronda and I first decided to purchase a | | | | FHA loan as opposed to a conventional loan. The |
| home together, one of the things we did aside from | | | | down payments are smaller. Start looking for a |
| making a wishlist for the type of house that we | | | | realtor, if you can't qualify for a mortgage, they will |
| wanted was to decide what to do with the house. | | | | tell you why and what you need to do in order to |
| We knew eventually we would move into our own | | | | get a home. |
| single-family homes but we were in agreement that | | | | Owning a home is one of the better investments |
| we would always keep the two-family for the girls. | | | | you can make. Unless you bought your property at |
| They can share one of the apartments and rent out | | | | an inflated price, the value in your home can only go |
| the other or they can live in their own unit. Whatever | | | | up. You get tax write-offs and you can always pull |
| they decide to do, at least they will have options. | | | | the equity out of your house if you need money. At |
| That's really the best gift we can give our kids. | | | | the end of the day, we are the best teachers for |
| Options. Teaching kids about financial responsibility will | | | | our kids. Let them form their opinions about money |
| ensure that they have many options. You can open | | | | by watching you save and spending it the right way. |