Later in the day another treat-  hearing my name called at the University of Pennsylvania Graduation.  It was a lot of years in the making- but I finished something that was near and dear to my heart. See the article below for details.

TV Money Expert Adds New Credentials to Her Financial Toolkit

PHILADELPHIA (May 13, 2012) – Television host Mary Caraccioli participated in graduation ceremonies at the University of Pennsylvania where she earned her Masters of Liberal Arts degree. Caraccioli’s concentration in the multi-disciplined program was money and leadership. Her thesis examined the interconnectedness of money and beauty as motivators and a source of stress in professional women’s lives.

Caraccioli said “Working toward this Master’s degree gave me the opportunity to step back from my day to day money reporting and really examine how money affects us emotionally. Through exhaustive research and one on one interviews I gained new insight into how money drives us and how it creates stress – no matter how big the paycheck.”

The Emmy® Award winning journalist is the host of the nationwide financial reality show “We Owe What?” produced by 6ABC WPVI-TV, airing on the Live Well Network and weekends on ABC owned stations in the nation’s top television markets. The show offers practical advice to families struggling with their financial lives. “We Owe What?” is in its first season.

Caraccioli also has earned an MBA degree from Drexel University and a Bachelor of Arts degree from the University of Pittsburgh. She is an EMMY® Award-winning financial journalist who has a track record for creating award-winning programs for broadcast, cable and digital mediums.

For more information, follow Mary on: Facebook (facebook.com/TheMoneyConfidante) and Twitter (@MoneyConfidante).

On facebook you can find me at https://www.facebook.com/pages/Mary-Caraccioli/287501997607

or  Like my show We Owe What? at https://www.facebook.com/WeOweWhat

On Twitter I am at @MoneyConfidante

We have an all new episode of We Owe What? Coming up this Saturday April 14 at 5:30 PM on the LiveWell network
and Sunday, April 22, 1:00 PM on 6abc WPVI-TV in Philadelphia

Where to find LiveWell in your town: http://livewellnetwork.com/feature/8376859

This sunny morning my job was to explain money to Becca and Carrie’s kindergarten class.  At five and six years-old, they are ready to start grasping financial basics.  As they gathered in a circle around me, on a big blue rug, I saw just how hungry this age group is to learn about the topic mom and dad seem to know so much about – money.

Make it Visual

The first rule for teaching about money to five and six year-olds is to make it visual. I pulled out a debit card, a credit card, a check, and a few dollar bills. I asked the kids which of these objects were money.  The dollar bills were picked first, but others thought the cards and check were also money. They had seen their parents use them to buy things at the store.  That was my opportunity to have a teachable money moment.

The bills and coins are money. The other items are tools that help you pay for things but are not money. The debit cards and the check are convenient ways to access your money when you go shopping and you are not sure how much money you will need or don’t want to carry that money with you.  But, if you don’t have cash in the bank – those tools won’t work.  They got it.

Six year-old Olivia asked: “Does that mean the worker at the store has to run to the bank to get your money?” Great question! It was an opportunity to talk about how businesses work (a bonus money lesson). I told her that stores collect all the checks they receive during the business day and then make one trip to the bank. She was relieved to hear the workers didn’t have to run back-and-forth 100 times a day!

The last tool we discussed was the most abstract – credit cards. I asked what the kids knew about them. And they didn’t have too much to say. So I explained that a credit card is not money at all, but an easy way to borrow money to buy something. But I said if the borrowed money isn’t returned quickly, the thing you bought will get more expensive.  The lesson for using a money tool like a credit card, is to not use it unless you will have the money to pay it back soon.

When you talk to your kids about money tools like checks, debit or credit cards, explain the safety issues just as you would with other tools like a hammer or a saw. When money tools are used safely they can help to make big jobs a lot easier. But if they aren’t used safely they can end up causing problems – problems that could make paying for treats or special things more difficult.

Tricks for talking about money to other age groups

Preschoolers

I start my money lessons with preschoolers because I think the earlier you get in the habit of talking to kids about money, the smarter they will be. The visual rule works with this group too. I love to bring in banks and to have them draw pictures. Tell your kids to draw a picture of something they want. Then have them draw a picture of something they want to give. Using an image that matters to them, you can talk about how it takes money to buy certain thing – and that other things, like hugs and kisses are free. Encourage your preschooler to start saving their pennies and those cash gifts that come in birthday cards or their allowance.

7-12 year olds

I love playing the grocery store game with kids in this age group. It can be modified to fit their level of understanding. Here is how it works: Have them help you write a list for the grocery store shopping trip (great bonus lesson – because it will teach them not to go shopping without a list). Next, have a rough idea of what these groceries will cost (keep your previous receipt for some help here). Then, tell them if they can help you fulfill your list for less than the total you wrote down – they get to keep the savings. This game teaches them to really look at prices when you shop and to understand that choices have to be made to keep you within a budget. Allowing them to keep the difference is incentive to save.

Teenagers

I like to use the idea from the grocery game and apply it to clothes and technology – areas where most teens spend, spend, spend. Making a list before they go shopping and encouraging them to find cheaper alternatives to things on that list – then letting them pocket the difference – will help them prioritize their spending. Forcing teens to live within their allowance also shows them the basics of managing their own finances.  Remember, they are awesome negotiators, so once you’ve decided the wallet is closed for the week – stick to your guns. No matter how tough it is!

For all ages

Make sure you say no – regularly. It isn’t easy telling your baby they can’t have something. But the earlier you start saying no, the easier it will be as your child ages.  Even if buying that extra doll or pair of jeans isn’t going to break the bank, still find the strength to say no.  I often say things like, “I don’t think you need it” or “it is not something I think our family should spend on today.” It shows that it is not a matter of being able to afford something – but a bigger reason you aren’t buying it. It is not something that adds value to your family.  Eventually your kids will learn to think about how much value the things they buy bring to their life.  And that is a money lesson they can keep for life!

I have received a lot of requests from viewers who want to know how they can get on my TV show “We Owe What?” If you’ve got a money problem that you need help with- we want to hear from you. It is easy to get started. You go to the link below and fill out an application. Once that happens our team of producers will contact you and get the process rolling. We travel around the country finding families, singles and couples who are looking for help to get to a better place with their money. I can’t wait to hear from you!

http://livewellnetwork.com/We-Owe-What/feature/Apply-to-be-on-We-Owe-What/8505156

By Mary Caraccioli

Too many Americans know that awful feeling of becoming overwhelmed by their debts. It can feel like you are drowning. There is a way to stop that sinking feeling and get control over your financial future.  It is possible!  I have worked with many people who have changed their lives by adopting these five steps.

There is a catch – you’ve got to do all five steps and be committed. If you are wishing for a fairy godmother to come wave her magic wand and make your debt disappear – this plan is not for you.

1) Stop all unnecessary spending today: Get on a cash budget. Budget enough money for food, transportation and the other expenses you encounter each week. Once that cash is spent – that is it. No more spending. You may keep one credit card in your wallet for emergencies – but you should put it in an envelope that says “for emergencies.”  Chances are you won’t rip that envelope open for a latte.

2) Learn debt collectors’ language: Debt collectors often come across as heartless – they are trained that way. You won’t win them over with a sob story – even if it is true.  Talk to them with numbers. That is where you will get their attention. If they see you are serious about paying down your debt you will likely get them to work with you. Keep talking. Things gets worse when the dialogue ends.

3) Take responsibility: There are many reasons we end up over our heads in debt. Promises aren’t kept; emergencies happen…jobs are lost. Life changes happen. You get the idea it’s because of these reasons we are in the pickle, and usually others to blame. If you are serious about getting out of debt – own it. Then, and only then, you will have what it takes to fix it. By the way, this doesn’t mean others are off the hook. It just means you aren’t waiting for others to right YOUR ship!

4) Get a great partner: There are a lot of shady players promising to help consumers get out of debt. The best source for finding a reputable counselor is through this website: NFCC.org. Here is a link to finding a counselor near you: http://www.nfcc.org/firststep/firststep_01.cfm

I have worked with many non-profit counselors all over the country. They know how to talk with your creditors and can help you organize your finances to get out of debt.

5) Write out your plan: Whether you decide to pay off the card with the highest interest first or the one with the lowest balance – you’ve made the right choice. It’s all about developing the plan that is right for you and sticking with it. Pick a plan for paying down your debt including you weekly budget for necessities, payments to debtors, and ways to get added income (sell stuff or take on a part-time job). Writing the plan down is very powerful and will help you follow through.

By embracing all five steps today, you will immediately stop drowning in debt and begin a new phase of rebuilding your financial life. It is possible, but it takes commitment.

My job and my research has given me the privilege to talk to so many people, of different economic backgrounds, about money.  What has been surprising is that money issues keep a lot of people up at night- even people who earn very big paychecks.  The good news is that with a little work you can make bedtime- a time of rest- not anxiety. Here are my top 5 moves to make when money keeps you up at night.

1) Diagnose the problem in daylight.  Instead of trying to tackle your money woes in the middle of the night, promise yourself you will take on the problem solving by the light of day.  Get up early or skip that lunch and put pen to paper to figure out what the problem really is. “Not having enough money” a common worry, is often not the real problem it is only a symptom. The real problem is often more about employment issues or how we handle the money we already have. Many parents have told me they worry about whether they will be able to support their children, be able to put them through college etc. When you get to the issue, dig deeper ask yourself why you are worried about it. Why am I under-employed? Is it me or is it the industry I am in? By digging deep objectively (no self pity or excessive blame here- be clinical) you can get to the heart of the problem and begin the treatment to better financial health and a better night’s sleep!

2) Create a goal.  After you have diagnosed the problem, you know where you are now. Your goal now is answering the question, “where do you want to be?”  Write it down. I am also a fan of posting it everywhere- bathroom mirror, fridge, front door, etc.

3) Take stock of  your resources. What you do have already? Take stock of your skills, stuff, friends and your network. These are all resources you can leverage for help.  So often we dwell on what we don’t have, this list will remind you of all you do have.

4) Make a realistic plan to change your situation.  You’ve set the goal, know what  tools you have in your arsenal, now it is time for you to create the roadmap for change.  As you work on the plan you think about the different ways you can achieve your goal by using your resources or perhaps acquiring some new ones.  Weigh the pros and cons of each step, does it make sense to downsize, can you partner with someone, etc.  I like to put everything on the table for discussion.  Once you set your goal and you know what truly matters to you, old sacred cows are often easily sacrificed to make way for our new goals.  Keeping your goal in mind makes prioritizing easier.

(Hint- don’t allow for too many non-negotiables here- the more ideas you allow for discussion the better).

5) Create buy-in.  Ideally this whole process involves you and other financial decisions makers in your household. I also believe in bringing in the kids into the discussion at appropriate times- after all they will be affected by your decisions.  Involving everyone in the discussion will allow for easier buy in for the plan and allow all of you to be on the same page when it comes time to execute the plan.

Remember friends and others are usually willing to help our cause when they see we are committed to a plan wholeheartedly.

Good luck! -Mary Caraccioli

My thanks to the Woronicak family. It was a pleasure working with you!

Catch this very special episode Saturday at 5:30pm and Monday and Thursday nights at 7 and 7:30pm
Check out LiveWell’s site for local listings (left side of the homepage where it says sign up stay informed). Here is a link: http://livewellnetwork.com/index  Thank you for watching and supporting my efforts to help all of us get better control over the money part of our lives!

Thank you Tammy and Ed!

Creating a budget can be done on a piece of paper with a pencil and grade school addition and subtraction made even easier with a calculator. And as far as being restrictive, I see it differently; budgets empower you to live the life you want by forcing you to prioritize.

I created a budget for the Lafferty family, who we featured on my new show “We Owe What?” and showed them that a budget allows them to but their priorities- their kids- first.

The basic function of a budget is to help you manage the money you have. First you take stock on what is coming in, and then you divvy it up (hopefully with a little left over). Put the things that matter the most to you first- the stuff you don’t want to give up.

Often we put the fun stuff at the end of a budget – I say of something is truly important to you put it first. You can add the necessities next and then everything else. I have included the Lafferty budget below so you can get an idea of how to create one for yourself.

Put your estimate in month exp and the actual amount in once you know it. The difference is the amount over or under your estimate.  It will help you make a better estimate next time!

Here is how you can find me on those sites
twitter/marytalksmoney

https://twitter.com/#!/marytalksmoney

facebook/Mary Caraccioli

https://www.facebook.com/pages/Mary-Caraccioli/287501997607

facebook/We Owe What

https://www.facebook.com/WeOweWhat

YouTube

http://www.youtube.com/user/MaryandMoney

Many businesses have 5 – 10  or 15 year plans. But very few individuals or families do these types of plans for themselves.  I want to change that! I think they are so useful in so many ways. I have broken these benefits down to the 4 P’s.

1) Prioritize
2) Plan
3) Pay
4) Picture

Start with the 5-year plan. You make a list of all the things you expect will happen in the next 5 years, births, birthdays, vacations, graduations, career changes, raises, pay cuts, reunions, new cars, appliances, house maintenance, etc.  Next, write down your current expenses.

Now all you have to do is plug in the years (see the document below to see how I did this for the Carolus family).

Writing down and then agreeing on what your family will fund for the next 5 years allows your family to prioritize.  What matters to each of you? When I met with the Carolus family for my new show “We Owe What?” there was some debate between Tami and Ed as to where they wanted to put their money. This type of debate is great and so important. It is key here to listen to everyone invited to the discussion. When I say listen, I mean really listen- don’t just assume you know what they are going to say and shut down. Insist that you are granted the same courtesy.

Get the kids involved too! Tami and Ed were surprised to learn that their daughter Beth put volleyball over racecar driving. What you will get from the discussion is buy-in from the whole family. Everyone knows how and why decisions were made.

This allows you to plan. Will you need extra funds in 3 years to pay for that new roof? Do you want to retire earlier? Seeing exactly where you are financially the year you want to act on something is fabulous. You will see “yes I can afford it” or “I need to work a side job to make that happen” – either way you are empowered and determining your own destiny!

The plan allows you to see how you will pay for things. Do you have enough in savings, or should you cut something else out so you will have enough? Is this something you want to buy on credit- then how much of a burden will that add to the years ahead? You will see it all!

Finally, this is a place for you to dream to picture the type of future you want and then come up with the best plan to pay for it. I encourage families to picture their future – it makes the work we do today easier because we are reminded of why we are working so hard!