The battle for your toy dollar is on! Toys "R" Us is opening hundreds of new seasonal stores on a temporary basis to ratchet up the competition against Wal-Mart, Target and the warehouse clubs.
Almost 350 "pop-ups," as they're called in the industry lingo, will be opened nationwide for business from October-January. These locations will be marketed under the Holiday Express name to avoid any confusion with the Toys "R" Us brand name.
The Holiday Express business model is a smart one at this point in the recession. After all, some estimates suggest 10 percent of all retail space is vacant and workers are in plentiful abundance to staff the stores.
Yet if you've had a rough year financially, you shouldn't feel guilted into buying gifts for children this season. When Clark was growing up, most children would receive just one gift. The notion of giving piles and piles of gifts and toys is a very modern one.
The penny-pincher recalls when his 4-year-old son was given too many gifts two years ago. He wound up being more interested in playing with Tupperware because it really stimulated his imagination and motor skills. The boy didn't need an official toy to engage in play!
Remember, your kids don't love you based on what material goods you give them; they love you based on how much of your heart you share.
MONEY-SAVING MOMENT: Christmas just got a whole lot cheaper as Wal-Mart has announced they'll price 100 different popular toys at $10 each.
This is a departure from prior years when Wal-Mart had knockoffs of name-brand toys priced at $5, $10 or $15. This year you'll see popular toys from Lego, Nerf, Tonka, Barbie dolls, the Littlest Pet Shop and more.
Clark suggests it might be wise to buy Christmas toys earlier rather than later if you're able to this year. Not sure what the hottest toys of 2009 will be? HotToys2009.com lists them by retailer and availability.
When it comes to the electronics category, many video game systems will be priced at $199 during the coming holiday season. Several discount retailers will even be bundling games with the purchase of a system at $199.
And this week marks the kickoff of the holiday sales season for cell phones. If you're cell phone is on the fritz, Clark suggests buying a used cell phone on eBay to serve out your sentence (ahem, contract) and then go to one of the new no contract plans.
There's been more government involvement in our lives during the past year than Clark can ever remember. Often it seems that President Obama's whole thrust is about more and more central control on our lives.
Yet there was a recent shocker from the Obama administration that ran completely counter to that assumption.
The feds are now trying to convince states in the clutches of teacher's unions that are hostile to innovation to give charter schools a try. Charter schools are typically beloved by Republicans. But good ideas (or bad ideas) can come from anywhere on the political spectrum.
The Wall Street Journal reports seven states have eliminated the vice grip that choked or outright prevented charter schools in their borders. This is good stuff, according to Clark. More competition from charter schools means better education for our children.
We spend huge money via our tax dollars -- whether you have kids or not -- to pay for a broken public school system. Of course, there are hardworking teachers in every kind of school, including public schools. But Clark believes our Soviet-style of public education has stifled the energy and enthusiasm of some of our best teachers.
He also wishes we had more of a consensus on vouchers. For now, charter schools are a decent halfway point. True, the quality of charter schools runs the gamut. But the marketplace sorts it out and puts the bad ones out of business.
Congrats to the Obama administration for doing something Clark didn't expect. The teacher's unions were a big supporter of the President's when he campaigned against McCain and he didn't think Obama would cross them.
A new survey from Country Financial reveals that more men than women think saving for a child's education is of greater importance than funding their own retirement.
The dads are dead wrong in this case, according to Clark. Mothers only fare slightly better, with roughly equal amounts falling on either side of the question.
As parents, we all know it would be great to do everything possible for our kids. But the most important thing you can do is provide good guidance and discipline, plus ensure the feeding and care of your children in a safe, healthy environment.
The idea of saving for a child's education is a very modern notion. It didn't exist for most of human history. Yet many of us are already fixated on this idea as the "be all, end all" of good parenting.
The whole debate makes Clark recall an episode from his life. Following his dad's death, Clark's mom began spending like mad. That prompted the consumer champ and his siblings to have a private argument about whether or not to have a serious talk with their mother about her spending habits.
One side said, "She's an adult, leave her be." But Clark disagreed. He reasoned that if they let her spending go unchecked, their mother might soon be asking them for money once she burned through her own. No one liked that scenario!
It goes back to something that Clark's late dad would often say: One parent can take care of 10 kids, but 10 kids can't care for one parent.
Just remember that there are no scholarships for retirement.
But for college, there are grants, work-study, regular jobs, scholarships, loans, reducing your educational costs by going into public service or the military, going the community college route, etc.
So dads, your hearts are in the right place, but your heads are not. You've got to do the practical thing and save for your future. We won't all be healthy enough to work for the rest of our lives. So listen to your wife on this one -- she knows better!
Clark has long believed we need to do something in America to make teenage drivers stand out on the road. After all, auto accidents are the No. 1 cause of death for teens.
The consumer champ has always been excited by the Europeans' approach of putting a huge red "L" on the back of a new driver's car. Doing so ensures that other drivers give them extra leeway on the road.
New Jersey is now the first state to take action on this issue. The Garden State will mandate that a learner's decal be displayed on the cars of new drivers until they turn 21. The move should greatly please insurers who incur great costs to insure teens.
Yes, this is a small step, but it's a very important one in Clark's estimation.
New Jersey is also joining with other states in placing tight curfews on teen drivers; banning multiple passengers in a teen's car; and restricting driver cell phone use while in transit.
The danger of death is greatly compounded when there's more than one passenger in a teen's car. The San Francisco Chronicle reports 61% of teen deaths occurred when the car was driven by another teen. Meanwhile, 1 in 5 of all road deaths involves teenage drivers.
As parents, we don't want to restrict the freedom of movement of our children. But our first duty as parents is to make sure we have children who are alive and safe.
Our educational system is essentially a Soviet-style government-run monopoly that could only be loved by the likes of Lenin and Stalin.
Consider this: The government decides where your kids go to school; what curriculum they'll study; and they even develop long-term educational plans just like the Communists did with their 5-year plans.
This kind of "one size fits all" approach really punishes kids. And zero tolerance policies are a symptom of the stranglehold our government has on our schools.
For example, there's currently a case going to the Supreme Court about an Arizona student who was suspected of possessing an Advil several years ago. For that crime, she was strip-searched to see if she had hidden the ibuprofen.
The Arizona school system has remained defiant through the years. They've constantly appealed court decisions ruling against their right to do the search and are now taking it all the way up to the highest court in the land. In the meantime, this process has taken so long that the teenager in the case has since become an adult.
(Editor's note: The actions of the Arizona school system were ruled unconstitutional on June 25, 2009.)
In another instance of an insane zero tolerance policy, The Washington Post reports that a teen was suspended for 2 weeks after taking a prescription birth-control pill during lunch. This was not a religious or moral issue; the school was instead arguing that it was illegal for students to have prescription pills on the premises. That student is now facing expulsion!
And in what may still prove to be an urban legend, a mother is said to have risked reprimand after baking a cake for her child. Her transgression? Bringing it to school with a plastic knife to cut the cake. Huh?!
This is what we've done by not offering school choice in our nation. Clark has long been a fan of vouchers and charter schools to bust up the government monopoly on the education of our children.
The CPSIA will require testing of children's toys and clothing for dangerous amounts of lead and phthalates. As a side-note, the single most dangerous category is costume jewelry for young girls.
Charities, yard sales and second-hand stores are beginning to worry that they'll be driven out of business overnight when the CPSIA goes into effect. After all, there are fines of $100,000 per violation if a potentially dangerous toy or article of clothing is sold.
But now, the thrift stores and others can breathe a sigh of relief -- testing won't be required of them. As Clark says, the problem is not with thrift stores or church sales, it's with the major retail chains who buy high-production volume goods.
The Consumer Product Safety Commission will be charged with enforcing the CPSIA. They've been mum so far on the question of whether small businesses that make handcrafts will be put out of business by the CPSIA. But again, Clark wants to emphasize that the reality is the CPSIA was not written with small business in mind. It's more for the Wal-Marts, Targets and Toys R' Uses of the world.
Clark has a special warning concerning toy safety just in time for your last-minute holiday shopping.
The consumer champ has long railed against the Consumer Product Safety Commission's (CPSC) failure to truly protect children from unsafe toys. Now The Wall Street Journal reports that consumer vigilantes affiliated with the Center for Environmental Health (CEH) are taking matters into their own hands.
CEH members are going into stores armed with handheld X-ray guns that detect unsafe levels of lead in children's toys. These vigilantes are able to find violations that the CPSC can't seem to find.
Meanwhile, the CPSC is belatedly getting on the ball and starting to arm its agents with the X-ray guns as well.
In related news, which type of toy typically has the highest concentrations of lead? Jewelry trinkets. The Wall Street Journal article reports the CEH found a frog jewelry charm with high lead content at Wal-Mart that the CPSC missed.
The CEH brought it to the CPSC's attention, but they ultimately had to go to a state regulatory board to have it removed from shelves in California.
Clark is beyond angry about the FDA's actions regarding children's cold remedies. Here's the scoop: For years, the drug companies have been making big bank selling children's versions of their OTC cold and flu remedies for adults. The industry has been allowed to set its own labeling standards for the safe age to give children such medications.
6 years of age is the scientifically accepted demarcation age when it's safe to give a child an OTC cold or flu remedy. But the industry got labeling that suggests it's safe to dispense the medication when a child is 4. That's a complete lie, and it remains unsupported by any science to Clark's knowledge.
Prior to age 6, the only thing you should be giving your child for cold or flu symptoms is ibuprofen or acetaminophen -- unless, of course, you hear differently from your pediatrician or nurse practitioner. Do not allow the FDA's false labeling to sway you. They were bought by dirty money on this one.
If your family is facing tight financial times, it's important to talk with your children about the situation. The key is to have an informative conversation with your children -- without engendering fear.
Of course, this scenario doesn't always play out the way you'd like it to. Clark recalls hearing the following story back in the early '80s: When a father lost his job, both parents sat down with their 2 teens to talk about the sacrifices they'd have to make until he found work again. The parents felt they really got their point across; the kids were engaged and asked great questions. But shortly after, the daughter came back and asked for $20 to go to the mall!
The teens obviously missed the message. We've lived through a period of unprecedented affluence for our children. We are a nation that spends like crazy on kids in their formative years. Consider the Air Jordans phenomenon. The iconic athletic shoe goes for anywhere from $185-$230!
Some parents have lost huge amounts of money by fooling around with their children's 529 accounts, which are designed to build college savings.
The key to intelligently doing a 529 plan is to take an age-based approach to it. Simply put, the level of risk of the investments should adjust as your child ages. Let's say your child is 2 years old. You'd want to have most of the money in stocks. But when that same child is just about to start college at the age of 18, the money should be in the most conservative investments possible. When you use an age-based portfolio approach, the mix of investments automatically adjusts every 2 years or so.
Clark has a daughter who is a sophomore in college. Her 529 plan made a little over 1% this year, which is basically like a savings account. His 3 year old, meanwhile, has a more volatile portfolio since he has time to make up any losses.
What if it's already too late for you and your teenager in college? Well, there are always inexpensive community colleges and in-state schools. There's no tragedy in spending a year or 2 at such an institution and then transferring to a 4-year school.
Clark actually went to what was thought of as an expensive private college. His American University bachelor's degree (1973-1976) cost around $2,400/year. When you adjust that figure for inflation, it's around $6,000/year. Compare that to nearby George Washington University in Washington, D.C., which costs some $50,000/year for tuition, room and board. Wow!
The penny-pincher believes that private college tuition will moderate. If the money is not there from 529s or to borrow, colleges can only charge what the market will bear. The era of galloping college tuitions is about to come to an end.
Meanwhile, if you're a parent, do not feel guilty if you can't give your child a free ride at Party Central U. somewhere. College should make you grow up and become more responsible, in addition to letting you gain a skill to make a living.
As a child, Clark was given one single share of Walt Disney stock. He kept it for many years just to get reduced admission at amusement parks -- back when Disney still extended that perk to shareholders!
Now Disney has a new 2009 promotion where you can get in their parks for free on your birthday. The "What Will You Celebrate?" promo will be good for both Disney World in Florida and Disneyland in California throughout the entire next year. That's a savings of $75 in the admission fee.
Imagine being a twin or a triplet and going with all your siblings for a free family reunion! Of course, you must be able to prove that you were born on the date you say you were.
Meanwhile, guess where Clark will be on June 20, 2009…
In related news, Christa has 2 websites to recommend if you're planning on doing Disney. MouseSavers.com features a lot of info on how to save on the experience. And if you want to stay on the property, try renting a timeshare. MouseOwners.com has resources for both owners and potential renters.
Finally, you should expect unreal hotel deals if you're going to Orlando or Las Vegas soon. Demand for hotels has dropped as the airlines park planes that serviced those cities. Priceline is amazing for Orlando. Clark saw 3-star hotels as low as $30 on some days.
As a parent, Clark felt guilty last cold & flu season when he gave his children over-the-counter remedies after a warning came out specifically for kids under 6. Now he feels even guiltier -- there's a group of pediatricians petitioning the FDA to ban such remedies for kids under 12. The FDA now must look at their evidence and see if it warrants a further ban.
The pediatricians are warning that giving your children anything beyond generic ibuprofen or acetaminophen could result in hallucinations, seizures, trouble breathing, heart problems and occasionally death. If you have anything stronger than Tylenol or Motrin in your medicine cabinet, throw it out or just use it for yourself. Don't give it to your children.
And remember you should be buying generic Tylenol or Motrin -- not the brand-name stuff.
Here's a special warning for parents with children who are under the age of 21. The Los Angeles Times reports that the liquor industry is targeting underage drinkers with a new line of fruity alcohol drinks in pouches.
Clark says the pouches look very similar those of Capri Sun. These fruity concoctions can have up to 17% alcohol. They are pre-mixed; ready to drink; and very easy to conceal.
One member of the American Academy of Child and Adolescent Psychiatry had this to say about the marketing push behind the drinks: "Combining vodka with raspberry drinks and calling it a 'party in a pouch,' who are they appealing to? This isn't the kind of thing adults drink."
So, parents, be warned. You don't want your teenager to become an alcoholic because some distillers are looking to boost their bottom line.
New rules governing the safety of children's toys, cribs and more are set to go into effect by Christmas 2009. While parents won't get the benefit of the legislation immediately, there are a couple of free-market solutions that will cover upcoming holiday season purchases later this year. Read on for further details.
Under the new rules, there will be mandatory third-party testing of products for kids up to age 12. That's before the products make it to market. Other provisions include tougher standards for lead in toys -- which was a problem with imports from communist China. Meanwhile, there will finally be whistleblower protection. Previously, those insiders who blew the whistle risked being fired without any compensation whatsoever.
Fines of up to $15 million will be permissible if children do get hurt, whereas before there was essentially no fining permitted at all.
The new rules beg the question -- when should government get involved? If an industry monitors itself, Clark believes government should stay out. But the toy industry did not govern itself. So they brought the heavy hand of government into their world.
No legitimate business gets up in the morning with the intention of harming children. Yet there's a diffusion of responsibility throughout the industry. You have contract factories, final-assembly factories, wholesalers, distributors, retailers and more in the picture. The responsibility for safe toys gets lost in the mix.
But to the credit of the retail world, both Wal-Mart and Target have come out with their own stiff standards that importers and manufacturers have to meet. The Wal-Mart and Target standards will be effective this coming Christmas. Clark loves such free-market initiatives.
The Wall Street Journal's Personal Journal reports that a number of auto insurers are writing policies for brand-new teenage drivers for the first time in memory. Clark is stunned that Safeco, Nationwide, American Family and Fireman's Fund are among those doing this around the country -- with some conditions. In addition to requiring safety courses, some insurers want parents to install a camera in their teen's car. DriveCam.com offers one such device that can be monitored remotely.
This is not just about money. The No. 1 cause of death among teenagers is auto accidents. We as parents fear the impact that drugs and alcohol can have on our children's lives, but the thing that's most dangerous is the road. Several states have begun doing graduated licenses for teens. Clark recently told you that such plans have helped cut back on teen fatalities behind the wheel. As a parent, it may seem creepy to go the camera route. But Clark thinks it's reasonable. Other insurers make teens log their driving and turn in the logs.
A teen's newfound mobility does not mean they have good judgment. Clark's 19 year old recently told him that she thought she was invincible at 15. But she's changed her mind after being through 2 auto accidents where the vehicle was totaled. Thankfully she was not hurt either time.
It's a very odd time in Washington, D.C., right now with the Democratic elected officials skewing too far left of most Democratic voters; and the Republican elected official leaning too far right for most GOP voters. Independent voters, meanwhile, are completely disenfranchised from both parties' elected leaders. There's a huge gulf, and it's almost like nobody is speaking the same language anymore! While there's paralysis on the federal level, the states have become the new center of action. Just look at healthcare, the airline industry or the credit reporting arena and you'll see states taking action, not the feds.
The latest example is toy safety. The feds haven't been able to get their act together on this simple issue. So the states have stepped in again. Toy makers are going berserk over a bill in Washington state that would set strict standards for lead and cadmium in toys. There are similar initiatives being considered in about a dozen other states. And, picture this: Toy manufacturers and retailers are even considering a boycott of Washington state to get the state to back down. Who wants to be grinch who stole Christmas in Washington state?!
The big picture here is that our federal government should not be paralyzed because the parties can't get along. We've got a country to run here. McCain and Obama both have spoken about opening dialogue among all elected officials. After all, Newt Gingrich talks to Hillary Clinton! Crazier things could happen!
First, the student loan kickback scandal on college campuses...and now this.
The Wall Street Journal reports that some schools are now taking kickbacks from book publishers. For several years, publishers have had to compete against the online used book market for college texts. So they eventually came up with the idea of creating custom-edition textbooks in production runs that are small enough for specific university courses.
These books -- which may excise certain material or add a professor's published papers -- come embossed with a warning that it's illegal to sell back as a used book. The campus book stores are, of course, complicit because they refuse to buy these books from students.
Which schools are taking the kickbacks? The University of Alabama and Virginia Tech are both mentioned in the article. Penn State, meanwhile, recently stopped the practice.
Clark thinks it's unacceptable that your university is stabbing you in the back and stealing money from you. As if it's not expensive enough to send a child to college! Who knows what else they're doing to rip off your son or daughter?
Meanwhile, Clark recently picked up a $14 backpack for his third grader at a warehouse club. Christa went the slightly more expensive route and got her child an L.L. Bean backpack.
But you can one-up them both if you wait until late September to buy your child's backpack. That's when they'll go on clearance after everyone's gone back to school.
Clark and his wife have had some serious discussions about their middle child and her booster seat in the car. Their daughter was upset because at the age of 5 she was still using one while all her friends being dropped off at school were not.
The booster seat issue is one that's really been taken up by the states. Nearly 20 states have instituted new rules about the age that children have to stay in their boosters after they get out of the infant car seat. Maryland, Massachusetts and Michigan are among those with laws going on the books this summer.
Many states require children to remain in them up to their 8th birthday, or until they meet certain height and weight requirements -- usually 57 inches and 65 pounds.
Seatbelt design is such that a child may be killed or seriously injured in an accident that wouldn't greatly harm someone taller and heavier. In a panic stop, the shoulder part of a belt would hit a child directly across the neck. Enough said.
Is Clark trying to guilt you about booster seats? No, you have to make a decision for yourself. There's a certain expectation that childhood comes with a lot of bumps and bruises, but what we're talking about here is much worse than a bump or a bruise.
For almost the last 50 years, we Americans have lived according to the "freeway exit" rule: We've driven out as far as necessary until we reach a point where the houses are affordable. This worked well to bring people into the middle class lifestyle for nearly 3 generations.
But right now, Clark believes we are at a time when we're turning back inward. People don't want the long commute or to have to deal with a yard on the weekends. There's a boomerang effect among baby boomers that are now empty nesters. Meanwhile, people who came of age in the last 10 years are becoming "new urbanists."
These new urbanists have a car but feel disconnected from the suburbs and crave the interaction of a city. Of course, today's high gas prices provide a direct economic incentive for new urbanism.
If Clark is right about people turning back inward, that means price appreciation will dwindle in the distant suburbs. In-town neighborhoods will have the greatest increase in value, followed by close-in neighborhoods. In some extreme cases, suburban homes may not even keep up with the inflation rate.
There are also some serious implications for public transportation here. In short, cities like Dallas, Houston, Atlanta and Charlotte have growth corridors that could support more of it. This is separate from the issue of energy.
The price of gas will not necessarily trend upward forever like the headlines proclaim. But even if energy prices decline, Clark still thinks that in the long run you may want to look closer in if you're thinking of real estate as an investment.
It's no secret that Wal-Mart has a horrible reputation in the public eye. But the mega-retailer recently did something great that they're keeping very quiet.
Back in February, Wal-Mart secretly told toy suppliers that they would have to meet strict new standards for toy safety during the coming Christmas season. The new Wal-Mart standards govern how much lead toys can contain, what chemicals can be used in manufacturing and more. Toys"R"Us and Target have since adopted similar standards.
The toy safety issue really boiled over last Christmas with lead showing up in children's trinkets. Parents refused to buy certain items and Wal-Mart -- as the nation's biggest toy seller -- really suffered because of it.
So Clark applauds the company's new move – even though it's clearly profit-driven.
These standards should have come from our politicians. But they're too busy drinking "Inside the Beltway" Kool-Aid, and have lost touch with the people amid all their bureaucratic wrangling.
There's a sort of anarchy with retailers dictating standards to the manufacturers. Yet Wal-Mart, Target and Toys"R"Us account for more than half of all toys sales in our country. So the manufacturers will have to fall into line.
Clark and his wife like to go out and have a nice dinner every so often. Last week, they went to an extremely expensive place that offered a 3-course meal for $29. Usually, it's around $80 per person!
High-end restaurateurs are finding they're having trouble getting customers. And those customers who do come in are really picking and choosing what they order. The Dallas Morning News reports one restaurant has seen a 30% decline in desserts.
Appetizers, desserts and alcohol are what Clark calls the Bermuda Triangle of your restaurant bill. That's where most of your money disappears. By comparison, the markup on the main course is usually much smaller than on those items.
Meanwhile, the only segment of the industry that's doing well right now is fast food. So it's no wonder the high-end restaurants are experimenting with the tried-and-true "value meal combo" approach.
The Howards enjoyed their 3-course "value meal" so much that they've already lined up a different deal at another restaurant for their daughter's upcoming birthday!
Clark has been a real nuisance for MySpace and Facebook over the years. He thinks they created a dangerous environment for teens, and was shocked by how reluctant they initially were to stop Internet predators.
However, MySpace was the first site to come to heel after action taken by the attorneys general of 46 states. Now Facebook has reached a deal with all 50 states.
The new arrangement has several requirements. Facebook must go through special steps to ensure people are who they say they are online; teens will only be allowed to receive carefully vetted ad content; and they'll also receive continuous safety warnings while online.
Facebook has also joined a task force (along with MySpace) that seeks to make social networking sites safer.
Clark salutes these efforts, but knows there's no way to eliminate all the predators out there. So you as a parent must request to be added as a "friend" on your child's social-networking site of choice. Then you've got to be diligent in monitoring their online circle of peers.
Every other year, the Federal Reserve tests high school and college students on their basic knowledge about money. The most recent test results reveal that the average high-school student got a 48, out of a possible 100, on the test. The average college kid only got a 62. People often ask Clark why they don't teach about money in high schools. Some schools actually do. They may have a lesson about the real cost of a car, for example, in math class. Yet the credit agenda -- not savings and investing -- is pushed in most of the teaching materials supplied to schools by the banks. Visa put money behind an effort to get pre-teens to have their first "Fee-isa" cards called the Buxx card. Thank goodness that effort bombed.
The responsibility to teach children about money lies with the parents, not the schools. Unfortunately, many families consider it impolite to talk about money. But that's a mistake, Clark believes. His second grader has already asked him, "How much money do you make, Daddy?" He prefers to give a non-answer, saying that he makes enough to save for a rainy day; save additional money for retirement; and still pay for their home, car and food expenses. Of course, that answer entails explaining that a "rainy day" has nothing to do with precipitation!
These kinds of talks with your kids need to be ongoing; discussing it just once is not enough. A couple that Clark used to know found that out the hard way. When the father lost his job, both parents told their 2 teens about the sacrifices they'd have to make until he found work again. The parents felt they really got their point across. But shortly after, the daughter came back and asked for $20 to go to the mall!
When it comes to teaching kids, Clark loves the 3 jars concept that came out of the Christian fundamentalist movement. Each jar is marked with a red, green or yellow heart. One jar can be used to hold money for charity; another jar holds money for current spending; and the third has money for longer-term savings. This provides a very simple, clear and tangible lesson for children.
Before 1965, the concept of credit as we have it today didn't really exist. In some cases, you could buy a car on a 3-year loan, but more than likely you paid cash. Houses required a real down payment. There was no complexity about what constituted money. It wasn't a credit card and it wasn't a debit card. It was cash! So watch your kids if they have debit cards. That plastic makes it hard to understand the concept of finite resources.
RIP-OFF ALERT: Most of us do not tell our loved ones what we want at the time of our death. Is it cremation, burial, a fancy casket, a cheap pine box? We may try to bring up the topic, but our loved ones may not want to hear it because it's painful.
The funeral industry has gone through major changes in last 2 decades. Large national chains like SCI and Stewart have bought up ma-and-pa businesses, yet they haven't changed the old names of the funeral homes. That way they give the illusion of still offering the personal hometown touch. The Funeral Consumers Alliance of Greater Kansas City surveyed 74 funeral homes in their area to compare prices. Prices ranged from $3K to over $7K for the exact same services and products. The most expensive homes were owned by the major funeral chains. Curious about what inflation will look like in 2040? Go to a chain funeral home, Clark says!
Of course, you can avoid costly funeral arrangements at the time of your death by planning in advance through a nonprofit memorial society like Funerals.org Clark has been member for 31 years. You get the benefit of group buying power for prices that are at a 70% discount. If you join, be sure to tell your loved ones and give them the necessary paperwork you've filled out.
Most people, however, won't join a memorial society. So if you're faced with a sudden death in the family, you may want to contact EverestFuneral.com. For a fee of $500, they'll negotiate the best prices on your behalf. That can amount to a savings of thousands of dollars. Finally, be sure your loved ones know about your organ donation wishes. A new study finds that more than 90% of Americans want to donate their organs, but only about 25% are signed up to do so.
Talk about a real belt-tightening time. If you're single, you just have to worry about yourself and your spending habits. But if you're married or have a partner, both of you have to be on the same financial page. Christa's new blog chronicles how she and her husband handle money. Right now they're on a mission to stop making frivolous purchases and take better care of what they already have.
Some challenges have popped up along the way. For starters, the family's new puppy recently chewed up many of Christa's beloved shoes. So what did Imelda Marcos do? She resisted the temptation to buy new ones and has instead been wearing cosmetically damaged heels. Check out her blog for pictures! Meanwhile, her husband Mike (aka Brand Name Man) temporarily derailed the dynamic duo's money-saving efforts when he bought a whole case of Gatorade's new Tiger Woods-branded thirst quencher.
How do you negotiate these kinds of financial challenges in a marriage? Well, you have to let some things go, according to Christa. Compromise is important in marriage -- though talking about Brand Name Man's purchasing follies on the air may shame him into better choices going forward. However, Clark has a different vision of Team Christa's future. He hopes that the next time Mike buys a case of Gatorade, it's some failed athlete's brand on deep discount!
There's new data from the census bureau on the fastest growing metro areas. Dallas is the top city and added 160K+ people in a year; Other cities include Atlanta (No. 2); Phoenix (No. 3); Houston (No. 4); Riverside, CA (No. 5); Charlotte, N.C. (No. 6); Chicago (No. 7); Austin (No. 8); Las Vegas (No. 9); and San Antonio (No. 10). Clark finds it very telling that 5 of top 10 cities are all located in places with no state income tax. Texas, in fact, has 4 of those cities. The Lone Star State offers affordable housing, flexible labor laws and low taxes all around. Weather is also a big factor in growth; Chicago is the only cold-weather town on the list!
The bottom line is that if you tax too heavily, you run the risk of making people flee. High-tax states provide for their citizens, but at what cost? High taxes harm long-term economic growth. Clark predicts that you'll see Congressional seats evaporate from high-tax states and migrate to low-tax one. Yet it's so odd that representatives from low-tax states get to Washington and start spending money like they don't remember where they've come from. Must be something in the water on Capitol Hill!
It's a very odd time in Washington, D.C., right now with the Democratic elected officials skewing too far left of most Democratic voters; and the Republican elected official leaning too far right for most GOP voters. Independent voters, meanwhile, are completely disenfranchised from both parties' elected leaders. There's a huge gulf, and it's almost like nobody is speaking the same language anymore! While there's paralysis on the federal level, the states have become the new center of action. Just look at healthcare, the airline industry or the credit reporting arena and you'll see states taking action, not the feds.
The latest example is toy safety. The feds haven't been able to get their act together on this simple issue. So the states have stepped in again. Toy makers are going berserk over a bill in Washington state that would set strict standards for lead and cadmium in toys. There are similar initiatives being considered in about a dozen other states. And, picture this: Toy manufacturers and retailers are even considering a boycott of Washington state to get the state to back down. Who wants to be grinch who stole Christmas in Washington state?!
The big picture here is that our federal government should not be paralyzed because the parties can't get along. We've got a country to run here. McCain and Obama both have spoken about opening dialogue among all elected officials. After all, Newt Gingrich talks to Hillary Clinton! Crazier things could happen!
"But daddy, all the other kids have TVs in their bedrooms! Why can't I?"
Clark went through this routine with his 18 year old for years before she left for college. Now he's going through the same thing with his 8 year old. The New York Times recently reported on a study that found 70% of 3rd graders have a TV in their bedroom. The consequences of this include sleep problems, lower test scores, childhood obesity and more likelihood to begin smoking. The study also found that kids with TVs in their rooms watch 50% more TV per week -- that's 30 hours per week!
Clark watches zero TV -- except during football season, when he watches about 15 hours per week. When his 8 year old does watch TV, it's only in limited quantities. Every parent must make their own decision about what's right for their child. Meanwhile, when is it appropriate for a teen to have a computer in his or her bedroom? In Clark's house, that age was arbitrarily set at 16. But he suggests you track what websites they visit or use permissive software to only allow them to view sites that you approve.
Clark is one man who lived a true bachelor's life before getting married to his wife Lane in 1995. At that time, all he had in his home was used or damaged furniture he'd gotten at repossession sales. Over the years, his wife purged every piece of used furniture except one -- a little love seat that she still lets him keep. Life involves compromise. Clark came into the marriage with "cheap" stitched across his forehead. His wife was the exact opposite, preferring taste over budget pricing. They've each had to learn to tone down their natural inclinations a bit over the years.
Recently they were looking for a comforter set for their 2 year old, who is transitioning from a crib to a bed and really loves trains. So Lane was online and had found a train comforter that cost $320. Clark was about ready to croak over the price. He asked his wife if he could look online for a few minutes on his computer. After visiting the usual closeout/clearance sites, he found a similar train comforter set for $39. His wife looked at it, loved it and told him to make the purchase.
That's the spirit of compromise. You have to look for a place where you can meet in the middle. There was recently a story about "financial infidelity" in the media. It's so common that couples hide things from each other about money, which in turn creates distance in other areas of their lives. It's not a good idea. While Clark and Lane don't need each other's permission to spend, they try to be respectful of one another when it comes to joint purchases like those for the house. It isn't always easy; Lane believes in taste, while Clark believes in price and has no sense of taste!
As a parent, Clark is sick over the fact that the Consumer Product Safety Commission is not doing its job of ensuring that toys are made and sold in a safe manner. CPSC honcho Nancy Nord instead sees her job as protecting manufacturers who have unsafe products on the market. Congress recently gave her the authority to ban lead-filled toys and children's trinkets. But she refused to do so and continues to allow the toys to be sold. If you have young girls, you need to be especially cautious about cheap jewelry and trinkets that are made to look like real silver. Clark advises parents to quietly dispose of these potentially lead-filled trinkets.
It's just insane that Nord has worked to put kids in harm's way in order to protect manufacturers. Clark is beyond anger over her activities; at this point, he's just deeply saddened. The whole thing becomes even more incomprehensible when you consider that Nord is a mother herself. The policy on her watch has been to keep things hush-hush when there's an unsafe product out there. Manufacturers get to sell off their dangerous inventory with the understanding that they'll have to comply with safety standards in future production. Visit SafeKids.org for the latest news. There is no cop on the beat, so you've got to be extra vigilant.
A few years ago, Clark told you about a website that lists trash facilities and toxic waste sites in a given area. Potential homebuyers could use the service to vet a neighborhood before a purchase. Then he recently read about a website called CrimeReports.com that allows you to do the same thing for crime statistics. CrimeReports.com is still a fledgling effort so there's not too much info in the database yet; so far Dallas and Chicago are the only big cities listed. One of the main impediments to growing the website will be from politicians and police departments. Unfortunately, a lot of politicians don't want their local police departments to be honest about crime rates. Spikes in crime reflect poorly on a politician's leadership. So we'll see how this site progresses in the future. CrimeReports.com was the brainchild of a man in Virginia who had been the victim of a crime. The site could prove to be a real boon to community-based policing of the sort that was favored by former New York mayor Rudy Giuliani.
For years, Clark has been warning parents about the dangers their children face when using MySpace and Facebook. Recently both of the social networking sites stepped up to the plate with procedures and initiatives to safeguard minor users. Just as parents across the country breathed a collective sigh of relief, a disturbing study done by the University of New Hampshire was published in the Journal of Pediatrics. The study found that kids are in greater danger from predators in chat rooms and via IM than on the social networking sites.
As a parent, you need to monitor what your child is doing online. The rule in Clark's house has been that his teenager was not allowed to have a computer in her room until she turned 16. Meanwhile, his 8-year-old is only allowed to surf websites that are on a favorites list that he and his wife set up for her. Be sure to control your child's buddy list when it comes to IMs. You have to know and approve of every person on there to keep your child safe.
Many people feel Clark doesn't give enough emphasis on his show to the environment. They say he's too concerned with one kind of green (money) and not the other sort. So here's a story for all those folks. Clorox is introducing a new line of products called Green Works. The Sierra Club will even be branding these products with its own seal of approval like Good Housekeeping! The San Francisco Chronicle reports that only 1.3 percent of our dollars spent on cleaning products go to green brands. But this will probably grow in the years to come as prices drop. Think about organic food. It grew from a niche market to a more mainstream one as price went down. Meanwhile, Clark's executive producer Christa suggests using white vinegar and water as a home-made green cleaning solution.
There's a lot of debate about when to go to a lawyer. The truth is that in some situations they're necessary, and in others they're not. Take the situation of making a will. Most people don't have a will or they have one that's grossly outdated. The danger in those situations is that the state may decide who gets your money, or your kids could end up with that relative who is your worst nightmare when you die. People are usually reluctant to do a will because they're either afraid of death, afraid of lawyers or both! One simple way to do a will is with NOLO.com. This legal self-help service features the highly respected WillMaker software. This may be a good option if you have simple family arrangements and aren't filthy rich. WillMaker asks you questions and then pops back answers as you make your will. If you get confused, stop and see a lawyer. Or proceed with WillMaker and then pay a lawyer to review the will you create. But you definitely want to hire a lawyer if you have family members who will squabble over money, or if you have any kind of complicated family arrangements. Ditto with divorces. In some states, you can obtain a divorce yourself by using a kiosk at a courthouse. This may be a wise choice if there are no assets to fight about and there are few debts. Just be sure to hire a lawyer if there are custody or financial issues.
Lawyers get angry at Clark whenever he talks about this topic. The Texas Bar Association actually got the state legislature to make it a crime for Texans to purchase a NOLO book. NOLO got so much publicity in the process that their sales skyrocketed elsewhere. On the other end of the spectrum, Arizona is one state that's very progressive and where you don't always need a lawyer. Likewise, paralegals in California will prepare documents for you to file at a courthouse. Just for the record, Clark is not anti-lawyer. You just have to be Clark Smart about when you really need one.
With Christmas fast approaching, Clark wants to tell you how to manage your holiday shopping list without going over budget. But first he has a dirty little secret to reveal: Half of all holiday shopping you do when they're supposedly shopping for others is actually for you! While this isn't true of everyone, this is a very typical pattern. So be honest with yourself and come up with a holiday shopping list that includes everyone you want to shop for and yourself. How much money can you afford to spend on yourself and others for Christmas? Decide what the total dollar amount is and stick to it. That way you'll avoid that January hangover effect when the credit card bills come due. Once you have your list and the grand total, you've got to put a dollar amount down for each person. When push comes to shove, you may have to drop people off the list or reduce the dollar amount by each name—including yours—until it fits within your intended budget. Bring this list with you when you shop. Consult it when you make a purchase. If you overspend one on person, cut somewhere else. If you spend less than you anticipate on someone, you have more money left to spend on somebody else. Clark loves it every season when people come up to him in the stores and show him their lists! One last hint: You may also want to purge the plastic from your purse or wallet and try paying for holiday shopping with cash only. When there's no cash left, there can be no more purchases. Clark recently spoke to a credit counselor who sees tons of clients by March because they can't handle their holiday bills. Don't let this be you!
Clark has long been excited about educational vouchers in our country. But these days it seems like he's alone in his beliefs. Utah voters recently shot down the nation's first universal school voucher program. The system was originally pushed through by the state legislature, and it earmarked money for every child in every public school in the state. Parents were given the option to take the funds and apply them to private school admission for their children. Under the system, children from poor families would get more money than those from rich ones. But Utah is often considered the reddest of the red states, and voters overwhelmingly threw out the voucher idea. Clark is stunned and disappointed; he's obviously also out of touch with the opinion of many Americans.
Milwaukee, Cleveland and Washington D.C. are all places where vouchers and charter schools have been popular. Clark loves the idea of parents having choice in the education of their children. He feels we spend way too much per child in public schools for the poor results we get. The problem, as he sees it, is that our educational system is a government-sponsored monopoly. In the marketplace, businesses must adapt to new conditions or go out of business. But there's really no equivalent in the schools -- and our children suffer because of it.
Do you want a free pass to financial trouble? Try being among the more than 50 percent of Americans who does not have a will! In a surprising twist, Forbes recently revealed that 1 in 3 wealthy Americans doesn't have a will either. What's going on, people? Clark wants to guilt everyone into having a will. Did you know that if you have minor children and don't have a will, the state can take your kids away at the time of your death and decide who gets them? They could go to a stranger or a relative who can't get their life together. Likewise, the state can decide who gets your money if you die and don't have a will. It could go to a family member you don't like, while your spouse may only get 10 cents on the dollar.
If you made a will years ago, you may need to dust it off and update it. You can do this yourself if your financial situation isn't too complicated. You can also go to a site like LegalZoom.com or try the highly respected WillMaker software. But you should go to a specialist if you have substantial money to protect. Retirement savings really need close attention. The beneficiary designation on your 401(k) or IRA accounts will trump whatever you have in your will. So check those designations carefully! One final note: California may be the exception to the rule that living trusts are not useful and should be avoided. That's because the Golden State has a very corrupt probate system. Some lawyers have even been able to arrange guaranteed revenue for themselves as a percentage out of someone's estate. If you own real estate in California and live elsewhere, you may want to hold it in a trust to avoid these corrupt probate courts.
People often assume the house you own is a ticket to wealth. But the reality is that the more you spend on your home, the less wealthy you'll be in the long run. Houses depreciate, they do not appreciate. The land they sit on may go up in value, but the houses themselves decline. One of the keys to gaining wealth is trying to keep your housing expenses low. Forbes has analyzed all the major markets in the nation and come up with a unique list of the Most Affordable Places To Live Well. The emphasis on the last three words is what's really important here. These are all places that offer affordable housing, great cultural opportunities, exceptional quality of life and a low cost of living.
So what's the top city? Minneapolis! The editors at Forbes obviously don't know about the winter in Minnesota! Indianapolis, Cincinnati, St. Louis, Milwaukee, Pittsburgh and Columbus, Ohio also made the cut. So that means 7 of the Top 10 selections are Midwestern cities. Several emerging Sun Belt cities also round out the list. Houston, Dallas and Atlanta -- 3 of the nation's fastest growers -- are unlike the others in that they come with some traffic and air pollution problems. The one common link among all 10 cities is that housing is a deal. Being wealthy involves limiting the amount you spend on the roof over your head, the taxes on that roof and all the assorted utility bills every month.
Many people are getting ready for daylight-saving time to end this week. Clark's 8-year-old daughter will probably be much harder to get out of bed in the mornings for school. She must take after her father, who admits to having seasonal-affective disorder (SAD). The switch back to standard time will take place across the nation -- except in Arizona, Hawaii, throughout the Navajo Nation, Puerto Rico, the Virgin Islands, Guam and a select few other spots. The reason for the annual time change is to save energy by having extra daylight time. That's because people use less energy in the early evening hours. Clark thinks it's interesting that our clock is controlled by economics. He probably needs to be a two hemisphere kind of guy -- he should move to South America during the winter to take advantage of their opposite seasons! There is one person who is even more affected by the time change than Clark -- that's Mike, the husband of Clark's executive producer Christa. When daylight-saving time ends on Nov. 4, he'll say we're entering "The Tunnel." If you're wondering why daylight-saving time was pushed back a week this year, it's so that kids across the country could do their early Halloween trick-or-treating in sunlight. One word of caution to all drivers: Dusk is the most difficult time to see children in the streets.
The Consumer Product Safety Commission (CPSC) has been front and center in Clark's mind over the whole issue of unsafe Chinese toys getting into our marketplace and harming children. This is a federal agency that's charged with seeing that dangerous products get pulled. But the CPSC really isn't doing that at all, thanks to the actions of chairwoman Nancy Nord. By law, the CPSC is prohibited from issuing public reports about unsafe items until after a multiyear investigation. Nord has been lobbying to not have additional authority to deliver reports in a quicker manner. She's also fighting a move in Congress to fine manufacturers who make unsafe products. So what gives? Clark would love for Nord to come on the show and explain her position. Perhaps she's the ultimate libertarian who believes that capitalism is the best way to deal with products that kill children. Clark is just shocked that a woman whose job it is to protect consumers is actively campaigning to undermine efforts that would allow her to do so. But Clark doesn't want to jump to conclusions. After all, he doesn't personally know Nord and has no idea if it's her goal to harm children everyday. In addition, he does know what it's like to be on the receiving end of completely off-base attacks on the Clark Stinks message board. So he wants to hear right from Nord herself why it's a bad idea for government to ensure the safety of toys.
Clark recently saw healthy Halloween treats in the candy aisle at a supermarket. Who really wants to be the Scrooge who ruins the holiday for kids by handing out nutritionally smart treats? Yet there was a recent article in the The Los Angeles Times about the growing healthy Halloween candy trend. Little pretzel packs, Teddy Grahams and even packets of carrots are among the items that some people now hand out. The idea is for kids to have fun without getting rotten teeth. Clark's 8-year-old daughter is usually not able to eat her Halloween candy because she's allergic to nuts. But she gets a Starburst from her mother for every piece she gives up. If you like to give out Halloween candy, make sure you buy a type you don't like -- that way you won't eat the excess! Bring leftovers to work if you can. Clark brings candy to his workplace that he buys after Halloween for 75 percent off! Clark's executive producer Christa thinks you can save leftover candy and use it next Halloween. But even Clark says that giving out stale candy is way too cheap for him! One caller suggested that leftover candy makes a great Christmas stocking stuffer -- and it won't be stale by then either!
Have you heard of Hannah Montana? No doubt you can answer affirmatively if you're a parent with a young child or teen. Montana is a teen actress/musician with her own Disney show. She is also the daughter of country star Billy Ray Cyrus. In addition to her TV career, Montana performs her music live around the country. Her shows are a very hot ticket for those in the "tween" age group. There's been a big brouhaha over ticketing for Montana's recent concert dates. Unfortunately, scalpers were able to use software to fool Ticketmaster into selling them all available tickets online. Parents who wanted to take their children to see Montana perform had to go through scalpers to get tickets. Now a federal judge has issued an injunction making it illegal to use the software. This is just one indication of how the ticket market is in turmoil. Another example comes from the world of sports tickets sales. The New England Patriots recently filed suit against their season ticket holders who used StubHub to sell tickets for games they weren't able to attend. The Patriots instead wanted season ticket holders to use their team's monopoly website to resell tickets. The court ruled that StubHub had to disclose the names of all buyers and sellers, and the team is penalizing sellers by taking away their season passes! How unfair is that?
If you're a parent, do you know where your kids go when they're online? Are you aware that predators often lurk on popular social-networking sites like Facebook and MySpace. Contrary to popular belief, online predators don't just target teenage girls. Facebook and MySpace are social interaction hubs for both girls and boys. Kids set up their own pages and invite people they've never met to become their online friends. The real danger comes when people with bad intentions want to meet your child in person. Facebook previously shrugged its shoulders about the predator problem, but the company has now reached a deal with the Attorney General of New York to institute new security practices. MySpace likely will follow suit with its own similar initiatives. The truth is that most parents don't know what their kids are up to on the Internet. As a parent, this frightens Clark. His teenager didn't have a computer in her room until she was 16. But even then Clark and his wife monitored their daughter's computer use. Parents have a right to be nosey and know what kids are up to when they live at home. Clark advises parents to not sneak behind their kids' backs -- instead, simply tell them that you are a nosey parent and will be monitoring them online. You may decide altogether that your children won't be allowed to have a presence on social-networking sites. The choice is up to you. Meanwhile, MySpace has struck a partnership with Skype and will soon offer users free Internet phone services.
One of the hottest areas of Clark's site is his 529 Plan Guide. He's now made his fourth revision to this invaluable resource so that you can continue being "Clark Smart" when saving for a child's education. The idea behind 529 Plans is that the money you save will grow tax-free and can be spent tax-free on college education. If the child doesn't go to college, you can transfer the plan to another child for free without being taxed. If there are no other children you want to have the money, you can use it yourself. But beware that you'll pay a 10 percent penalty plus tax if you take this latter option.
All 529 Plans must have state sponsorship, but you're not limited by where you live as far as making contributions. You may, however, enjoy a state tax deduction if you select your own state's plan. 529 Plans are great when they're purchased correctly. But a lot of money goes in the wrong way through commissioned salespeople, banks, stock brokers and financial advisors who take a cut of your money. You should buy 529 Plans directly through the state that sponsors them. If your state isn't listed in the "Honor Roll" section of Clark's guide, pick a state from his "Dean's List." There you'll see plans from Utah, Iowa and New York. These are the lowest-cost plans available across the board. Utah is by far the single best plan in the country. One of the most unique things about 529 Plans is that they're all very flexible. You can put in as little as $15/month or a rich grandparent can pop in as much as $60,000 all at once. One caveat from Clark: Do not save for your child's college education until you save for your own retirement. There are no scholarship plans for retirement!
Wal-Mart is taking a pre-emptive strike against protected sluggish holiday sales by lowering the price on toys very early in the game. As the world's largest retailer and the largest seller of toys in the United States, Wal-Mart is really putting the heat on fellow retailers such as Target with this move. There's no one toy that's a runaway hit this season, so price is really going to become the key seller. One recent favorite, the Nintendo Wii, is back on the market after a serious shortage. Clark thinks the Wii is really interesting since it gets users up and out of their seats when they want to play a game. Now is the time to grab a Wii, which goes for the suggested retail price of around $249; don't wait until it becomes scarce again. For adults, the holiday sales season will be very promotional. The prices of hi-def TVs are set to drop precipitously. Clark recently saw Fry's selling a 32-inch hi-def TV for $397 -- so much less than a year ago. Plasma TVs will also be extra cheap, but DLPs remain the best deal if you have the space for them. One word of advice: don't buy a hi-def DVD this season. Wait until the format wars between HD DVD and Blu-ray get sorted out and then buy the winner.
There's a new recall of children's cribs that parents need to know about. One million cribs sold under the Graco and Simplicity brands between 1998 and this past May pose a structural danger to babies. Following is a list of the affected cribs. There's more information available online or by calling 1-888-593-9274. The recalled Simplicity crib models include: Aspen 3 in 1, Aspen 4 in 1, Nursery in a Box, Crib N Changer Combo, Pooh 4 in 1, Chelsea and the following cribs with the Graco logo: Aspen 3 in 1, Ultra 3 in 1, Ultra 4 in 1, Ultra 5 in 1, Trio and Whitney. The model numbers are: 4600, 4605, 4705, 5000, 8000, 8324, 8800, 8740, 8910, 8994, 8050, 8750, 8760 and 8996.
Sometimes a recall is not what you think -- you may not just simply return the item and get your money back. In the instance of this recall, you'll be sent a kit to make repairs yourself to bring the product up to code. Clark says there needs to be laws in place to make sure our kids are safe. Libertarians will argue that the market will punish those who make unsafe products, but how do you replace a vulnerable child who is injured or killed because of a manufacturer's negligence?? The Chicago Tribune recently reported how the feds sometimes look the other way when it comes to recalls. One retailer that's handling recalls the right way is Target, which has recalled its Cool Toyz play-set. Target is offering a full refund for the roughly 200,000 play-sets out there with lead paint. But how many have been returned so far? The Washington Post reports only 766, even though the paint in the play-set has 15 times the lead allowed by law. Meanwhile, the recent Thomas the Train recall must have received more media attention because the return rate there is about 40 percent. The responsibility must not fall on just the government, the media, the retailers or the manufacturers; it's one that should be shared jointly with parents. The safety of your children is important and you must protect it.
Five years ago, Clark's daughter Stephanie was three years old and received a pre-approved offer for a Visa credit card -- what she then called a "Wisa" card. Stephanie loved the fake plastic card that came with the offer and often tried to scan it using her Barbie cash register. At that time she didn't really understand that you have to apply for credit and use it responsibly. Now that Stephanie is eight years old, she's received a solicitation from American Express. She wants to apply and so far Clark hasn't discouraged her. She's going to list her income as zero, her occupation as a student and disclose her true age. Then she'll wait to see if her application gets approved. Clark wonders what he's going to say to her when she's declined. Even worse, he's wondering what to say to her if she gets approved! The credit-card companies are so desperate for customers that there have even been documented cases where they've extended credit to people's dogs. Clark thinks his executive producer Christa should sign up her cat Willow for e-mail lists from merchants and assorted cat-alogs -- pun intended! The whole trend of young people having credit cards is very dangerous in Clark's eyes. One in 10 high-school students has one. But teens should be learning about saving, not spending. It's also important to look at the message about credit that we as parents are giving our children. If you run a balance every month, you need to get your own finances in shape before you try to teach your children by example.
Clark often confuses people with his talk about choice in schools because they think he's getting political. But he sees it as an issue that's simply about giving every child an opportunity to succeed -- regardless of their family's socioeconomic background. Monopoly schools and arbitrary zoning either sentence kids to a stinking school or reward them with a good one based on where they live. That's pretty much the norm across the country. But some states like Arizona have been very innovative with allowing school choice and having an active charter school movement. Clark grants that there have been financial scandals in some of the Arizona charter schools, yet he thinks they're on the right track. He also likes the idea of vouchers, which are like gift certificates where you take the public money that would have been spent on a student and give it to them to subsidize private school tuition.
Parents who home-school their kids really impress Clark. There are nearly two million kids who receive this kind of education. Clark admits that he doesn't have the intestinal fortitude to home-school his own brood! Yet home-schooled kids are usually overachievers. Colleges once shunned them because they have non-traditional transcripts and grades. Now The Washington Post reports that nearly 85 percent of colleges have formal evaluation policies to come up with a class rank of sorts for home-schooled kids. There's even a whole cottage industry of learning materials that have sprung up around parents who home-schools. Clark sees the teaching materials for sale at stores in August and September. With home life being such an important factor in a child's education, Clark wants to salute parents who home-school.
The question of why people spend money in ways that don't make sense is one that's addressed by behavioral economics. This field of study used to be discredited in serious academic circles, but now it's gaining validity. A recent University of Virginia study attempted to explain why parents who were struggling with modest incomes would buy the latest video games, clothes and shoes for their kids -- even when they couldn't meet their other financial commitments. Researchers think it can all be explained by "the search for dignity." That's what happens when parents feel it is more important for their children to fit in and not feel different than it is to make wise choices that will help avert financial Armageddon.
Is it right to blame modern culture for creating situations where "the search for dignity" emotion kicks in? When Clark went to high school in the late '60s/early '70s, there was no Disney Channel or Nickelodeon to create a want in kids for certain products. But today once something is "cool," people instantly know about it. Take the popular film High School Musical for example. Disney sold more than a billion dollars of ancillaries -- High School Musical CDs, books and more -- after the flick's success. Clark's wife recently emceed a teen talent contest and all the kids performed songs from the movie. Modern culture has raised the level of expectation among children; it's like "keeping up with Joneses" has no lower age limit anymore. But Clark thinks there's value in telling a child that you can't afford something right now if that's the case. As he says, there's nothing in the Constitution about upgrading your child's Game Boy Advance to a Nintendo DS!
One of Clark's staffers was recently on vacation for four days. While in San Diego, she spoke to some Europeans who laughed at her meager "holiday" time -- they were abroad for eight weeks! The Wall Street Journal recently reported that only one in seven American workers takes a "long" vacation of two weeks at a time. In fact, people don't even use all the vacation that they've accrued. More than one in three forfeits vacation days. Then there's also the working vacation trend, where you go away but spend most of your time working remotely. Clark thinks people are better as workers and family members when they take some time to chill out. He sees a lot of people with "emperor syndrome," where they think that the company can't survive without them. "Impostor syndrome" is also common. That's when people become afraid that the company will realize they're not necessary if they're out on vacation. These kinds of insecurities can really drain your productivity over time. Clark advises people to get away when they have the chance and turn off their "Crackberry" devices. The world won't collapse if you take a few days to enjoy yourself. Yahoo! recently sent around an internal e-mail trying to compel staffers to take their vacations. The employees were outraged by the move, and the company had to back down and make vacation a voluntary thing. There is, however, a ray of hope on the horizon; members of Generation X (those born between 1965-1978) tend to take 100 percent of their vacation time. When's the last time you took a week off from work?
Did you know the average wedding today costs around $30,000? If you go back just two generations in this country, you'll discover that people routinely got married for under $100. But if you've planned a wedding anytime recently, you know that the price tag associated with every aspect of the big day has been ballooning. Some brides have been known to pay $2,500 (and even up to $35,000!) for their dresses. Thankfully, there are a number of inexpensive wedding dresses available on the market. Retailers like Target, David's Bridal and Filene's Basement offer them in the $100-$200 range. As Clark says, your special day is not about the dress, the caterer or anything else; it's about picking the right mate. It's a day that should be about having a big heart, not a big wallet.
If you're a longtime listener, you may know that Clark absolutely hates traffic and lengthy commuting. He's made the choice to live about 10 minutes away from where he works just to avoid it. But most average Americans live along a freeway at an exit where they can have the house and lifestyle they want, which usually means living in the suburbs. Yet commuting from a suburb to a city can be grueling. In fact, there's now a backlash against the suburban lifestyle. Call it the Death by Suburb phenomenon -- that's the title of a book and accompanying program that's been making its way around suburban churches. Clark believes the real angst of life in the 'burbs comes not from the distant location, but from the fact that many parents pack their kids' schedules too full. A little downtime for children is healthy, according to Clark; there's nothing wrong with unstructured free playtime. Kids are having the spontaneity drained from their lives with busy schedules that can include tae-kwan-do, sports, ballet, gymnastics and more. Stop and think about the treadmill you're putting your kids and yourself on when you have to run them around endlessly everywhere. Just some food for thought!
The internet can be a difficult thing to navigate. You start to type in an address of the site you are looking for and you end up going to a site that you definitely did not want to go to. This can make things very scary for parents who don’t want their kids to go to adult content sites by mistake just because of a mistype. There are now fantastic services available that help parents monitor and control what their kids see when on the internet. Parentalcontrolbar.org and Kidrocket.org are several of the best tools out there for you to check out what your kids are viewing when on the internet. These sites are great for not allowing your kids to see things you don’t want them to see. So try them both for free.
MySpace.com is not taking predators on their site seriously at all. If you have kids that go on MySpace, make sure you watch out for them. What is wrong with this company that they just allow registered sex offenders roam their site? Someone even set up a MySpace page for Clark that he didn’t want. He tried to call them and get things fixed and they treated him like dirt. Shouldn’t they take just a little of the huge amounts of money they are making to protect their consumers?
There has been a lot of talk about childhood obesity lately. It has really become an epidemic in America as kids eat more junk and get less exercise. But which matters more - how much more teens eat these days or the number of calories they’re taking in? Would you believe that kids are eating just one percent more than they did a generation ago. It’s the sedentary nature of our children that is literally killing them. Today, kids sit for hours in front of computers and play their Game Boy machines or instant message with their friends. In addition, many schools have done away with recess for budgetary reasons. So, children aren’t burning off calories at all. Parents are the best influence for getting their kids off the couch in doing something active. So, if you’re a parent, participate with your kids and everyone benefits.
Teenagers, especially girls, like to test their parent’s patience by dressing in questionable clothing. Britney Spears has been the role model for young girls, who frequently wear short skirts, low riding pants and very racy clothing. There is a constant struggle between some parents and their kids over what to wear to school. Thankfully, that trend seems to be disappearing. Retail stores are starting to sell more preppy, conservative clothing. Those that sell the racy clothes are not getting much business. The recent hype over back-to-school clothing was what finally showed us the trend change. And the kids are all for it. That is great news for parents, who were concerned about what their kids were wearing. But your kids may want a whole new wardrobe! In other fashion news, females can now put digital imagery on their fingernails. Women are actually putting art designs and pictures of their boyfriends on their nails for about $3 a piece. So, the designs are not that expensive. We’ll see how big this gets.
Clark has gotten some terrific feedback about cutouthunger.org. It’s the grocery shopping Web site created by Stephanie Nelson, the one-person machine who has started services in 22 states. The great thing about the site is that it not only helps consumers save money, but it also helps the lower income families receive food. She shows you how to get free samples, buy food the right way, and use coupons. The information is updated every week and is categorized by region of the country and supermarket. She will even send you e-mail messages with the best tips on how to save money every week. Check it out.
The latest wrinkle in the cell phone wars could be a great asset to you. It’s known as “sticky services,” and it’s been very successful in some markets. The idea is to create a web of reasons to stay with a particular company. The cell phone industry has a terrible problem with turnover. Companies lose about three percent of their customers every month, which is a massive loss. So, they’ve started promoting family and network plans. The original family-to-family plans, which allowed you to talk to family members only, were not that successful. So, now companies have come up with network plans, whereby you can talk to anyone on the same network for nothing. The deal is that you can talk to someone on your same plan and it doesn’t count against your minutes. You’re essentially “off the clock.” It creates an incentive for discipline in a family or corporation to use one plan. All of the employees are on the same plan, so it costs less. That is the carrot. But the stick is that companies will require you to sign a one- or two-year contract. You just simply decide whether it’s worth it to you. Clark carries two cell phones – one for local calls and one for long distance. Two companies, in particular, specialize in the local calling plans, and Clark loves their business models. The companies are Cricket Communications and MetroPCS, and both offer unlimited calling. The unlimited talking model is slowly growing with other companies, and soon the block-of-minutes plans will be a thing of the past. They all range between $40 and $45, and that is the sweet spot that people are willing to pay.
