Hey there! It's Talk About Money Tuesday, my favorite day of the week!🤑

With cooler weather firmly on the way, I can't ignore that fall is indeed here — and so are the rising costs of keeping a home running.

If your kids are like most, they're probably doing their part to keep your electric bill high by leaving all the lights on in the house!😂 They don't think about what those lights, hot showers, and warm rooms actually cost.

But adults know that families pay for utilities, insurance, repairs, maintenance, and more to keep a home running — plus rent or a mortgage. Some costs are monthly, while others pop up unexpectedly.

These everyday expenses create great opportunities to teach kids about money. And don't worry, you don't have to share your salary or open up the family finances to get these conversations started.

You can simply talk about why you set money aside for repairs, compare prices, or plan for higher winter bills. Even small conversations can help kids connect the dots between money and everyday life.

This month, look at the household expenses your kids might not notice. You may be surprised by how many valuable money lessons are hiding in plain sight, right at home!

Money Stat

76.1%

If you haven't made any upgrades to your home in a while, get prepared for some sticker shock.

According to a new report from LendingTree, the median cost of a home improvement project rose 76.1% between 2010 and 2015, from $1,200 to an inflation-adjusted $2,113.

Water heater, dishwasher, or garbage disposal installations or repairs were the most common projects, accounting for 11.7% of those cited in the report. HVAC installation or replacement was a close second, at 9.1%.

Money in the News

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The news: Depending on how you heat your home, your utility bills could eat up a larger share your budget this winter. Americans who rely primarily on natural gas could spend 9% less than last year, while households that use oil could spend 21% more.

What it means for young people: Heating costs vary by fuel prices and how homes are heated. Young people can learn why families budget for variable expenses rather than expecting every monthly bill to stay the same.

Tips for parents & mentors: Invite your child or teen to become an "energy detective." Have them identify three ways your family uses energy and guess which uses the most.

Then discuss which habits could reduce waste, like turning off unneeded lights, taking shorter showers, or adjusting the thermostat.

I struggle with turning the thermostat down because I like it tropical!🌴 But I keep at it because even small adjustments can add up to savings on your utility bill over time!

Get in the Zone

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Money skill: How to plan for irregular expenses

Why it matters: Some bills arrive like clockwork, while other expenses catch you by surprise. Learning to plan for both helps young people understand why a budget needs a buffer and why saving is a good idea even when there are no immediate purchases in sight.

Try this: Talk to your child about sinking funds and how they help people save money gradually for something they expect to pay for in the future. Then encourage them to start a sinking fund of their own.

They can choose a future expense, say an upcoming sneaker drop or the release of a new toy, and then help them calculate how much they would need to save weekly to reach their goal.

Helping your child start a sinking fund is a practical way to teach them how money management involves planning and patience.

If you know a school, college, or organization that could benefit from a financial educator who makes learning about money fun for youth and young adults, send them my way!

The Language of Money

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Use these youth-friendly definitions to help young people understand the often overlooked expenses that come with running a home.

Cost of living: The amount of money you need to pay for essentials, like a place to live, food, transportation, and household bills where you live.

Discretionary spending: Money you choose to spend on fun things you want— such as movies, games, or eating out — after paying for the things you need.

Fixed expense: A bill that usually stays the same each month, such as rent or a phone plan.

Variable expense: A cost that changes from month to month, such as groceries, electricity, or gas.

Money Talks

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Here are three ways to talk with young people about why a family might pay home insurance premiums year after year, even if they never need to file a claim.

1️⃣ Discuss how paying a predictable premium can help cover major unexpected costs, such as rebuilding after fire or storm damage or replacing flooring after a major water leak.

2️⃣ Explain that insurance doesn't prevent problems, but it can help cover repair costs and reduce financial strain.

3️⃣ Talk about how having insurance can help families avoid draining their savings or taking on debt to cover unexpected home repairs.

These conversations can help kids understand that insurance isn't just wasted money when nothing goes wrong.

Loose Change

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🏠 Tiny homes may seem cheaper to maintain, but these petite abodes aren't as affordable as you might think.

😟 Florida homeowners face the nation's highest average home insurance premiums.

💰 Some homeowners get blindsided by HOA fees that keep increasing and stick around even when the mortgage is gone.

Thanks for reading! If you want to read some of my past newsletters, click here. And if this newsletter was forwarded to you, please subscribe ​here​.

'Til next time,

Audrey
​Founder &
Certified Financial Education Instructor​
The FinLit Zone

600 1st Ave, Ste 330 PMB 92768, Seattle, WA 98104-2246
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