Recently in Saving Money Category

1. This is where you will (not can) save any money you come across (birthday, holiday, etc.).

2. Once you put money into the little blue book you really do not want to take it out.

3. The bank will give you some money in return for keeping a little blue book full of money.

The lesson above was very simplistic; namely, that saving is good and should be taken seriously.  Beyond setting up a savings account for me, my parents also exposed me to their financial goings-on from a very early age (I knew for example how much my father made via his paycheck, what our tenants would pay in rent each month, and how much my dad would collect for small handy-man type projects).  My parents hid nothing about our financial life or status, so I was "in the know" from a very early age.  Some experts have argued, especially in light of the recent recession, that parents should aim to shelter financial goings on from their kids given stress, anxiety, etc.  And while every parents should customize parental advice for his or her child (read: understand what type of child you have and adjust parents style), I believe in empowering children and raising smart, pragmatic, kids who will be ready to face the world!

So, when beginning your child's fiscal eduction you want to make sure you do the following:

1. Set up a savings account and describe what it is meant for and how you make regular deposits.

2. Expose your child to every inch of your family's financial life (in a sense treat the child as an adult and describe how much money the family makes <and the different sources of money>, what the family does with money, and what money can and cannot provide).

Start the personal finance discussion slowly and make it as easy to digest as possible.  That is to say, talk about saving money and not interest rates or how money is needed for a home, food, and security and not to buy video games, go out to eat, or impress people.  

I know of some families that never discuss money matters and this can be potentially dangerous to a child's personal finance eduction (which isn't taught in schools, unfortunately, and is the responsibility of the parent).  Money is not a dirty word nor should parents treat it as formal topic only open to adults.  The sooner a child feels comfortable dealing with money the quicker he/she can begin to see the value of money what it can and cannot provide an individual (security versus happiness, for example).  

2. New homebuyers will get a tax break in the form of a $8,000 subtraction from the income tax they owe (on a principle residence purchased through 11/31/09).  There is a phase our for individuals earning between $75,000 - $95,000 and couples with an income of between $150,000 - $170,000.

3. The Alternative Minimum Tax increases exemption to $46,700 for individuals and $70,950 for couples.

4. If you've lost your job you will be able to forgo taxes on the first $2,400 of unemployment compensation (in previous years, all income from unemployment was taxable).

5. Cars buyers get to deduct sales tax on a new car purchase. (for purchases up to $49,500 from the day the stimulus starts through the end of 2009).  Of course, the deduction phases out for singles with a salary between $125,000 - $135,000 and couple earning between $250,000 - $260,000.

6. If you've lost your job, maintaining insurance through your old provider got easier in the form of a 65% reduction in cost.  Cobra costs also get cheaper.  There are also qualification in terms when you got laid off.

7. The American Opportunity education tax credit allows for a $2,500 partially refundable tax credit to cover all four years of college. (this goes until 2010 and thereafter the Hope Credit comes back into play).

8. If you have a 529 college savings plan you can use withdrawals in 2009 and 2010 to purchase a computer or "computer technology" (previously the college needed to stipulate that a computer was needed for study).