Money Management Newsletter

Money Management TIPS for Young Families

Money Substitutes

Dr. Josephine Turner, CFP

Professor, Family and Consumer Economics

To keep the cost of living in line, perhaps it is time to make full use of money substitutes. To do this, you stretch your money by using time, ability, knowledge, possessions and public goods and services. In order to be successful at using these resources, you need to use what you already have to better advantage and to spend less. Make these ideas into a game. To acquire a high score, your family will need to try out various practices to see if they are economical. Then, evaluate the effect of those practices on family well-being and adopt those that prove worthwhile.

 To get you started, here are some questions to think about.

Does your family: •     feel it doesn't have enough money to meet its needs? •     alter or recycle goods on hand before buying new ones? •     use public facilities to enrich their life? •     seek knowledge to improve personal ability?

YES ____ ____ ____ ____

NO ____ ____ ____ ____

Any "NO" answers indicate you have some way to go to make full use of money substitutes.

TO USE YOUR MONEY SUBSTITUTES MORE EFFICIENTLY, TRY THESE IDEAS

As a family group set up a project to make fuller use of money substitutes. At the same time don't forget to keep accurate track of all money used.

1. Begin by recycling the attitudes of family members. Get them to think "thrift" in every action and also to consider the non-monetary rewards from these practices.
2. Take an inventory of idle or surplus items and decide if they can be recycled. Check all types of inactive items -- foods, clothing and accessories, furnishings and equipment, household products, education and recreational items, toys, personal items and tools. Design a calendar for recycling. Include items to be recycled, persons responsible, dates for finishing recycled items, and how they will be used -- at home or for gifts.
3. Seek opportunities for family members to learn new knowledge and skills. Contact public agencies including Cooperative Extension Service, technical schools and libraries for information on the training desired.
4. Plan family "Fun Projects" for producing your own goods and services in order to save money. Can you reduce spending for: convenience foods, eating out, transportation, barber and beauty shop services, clothing, furniture, and furnishings household maintenance, recreation and gifts.
5. Buy goods for basic function, long durable service and low maintenance. Cut out purchases with frills, fads, gadgets, and buy the standard models and classic styles.
6. Stretch the service life of all items. Use, maintain and repair everything in order to get longer service. Get rid of all forms of waste.
7. When possible use community goods and services rather than purchasing similar goods and services. Good sources are education and public information agencies, health care and recreation activities.

 FAMILY ACTIVITY: Complete a Two-Month's Pilot Project on Increasing Your Family's Use of Money Substitutes.

1. As a family group, take inventory of all idle money substitutes. Record this information in a form like this.

Money Substitute	Quantity Available	Ideas for Profitable Use	Gains Family Will Receive

  2. Make out a schedule and follow through on these ideas. At the end of two months evaluate the value of this project to your family and decide how you will continue to practice thrift and make use of Money Substitutes.

Next month we end the series. It will be time to take stock to see how you have progressed in using Money Management Tips for Young Families.  Next month's Tip -- Your Financial Success