Welcome to the 145th Carnival of Personal Finance:  The Baby Education Edition.  With the new baby, I've been thinking a lot about how to properly raise a child and how to teach them about personal finance and business.  So what's better than a baby theme that will take us on the road of financial education.  All topics are separated and editors picks for each topic are indicated by a star (*).

Investing

Investing is an area where I'd like to start early with the child as we all know about compound growth and the power of exponential growth over time.  The one thing that a child has on their side is time. 

• * Kyle from Amateur Asset Allocator argues that Mutual Fund Companies Often Make Better Investments Than The Funds They Manage, and says, "Almost without fail, the stocks of mutual fund companies over the past decade have handily out-performed the equity mutual funds they manage."  For you Canadian investors, that would be a stock like IGM.

• * Preet Banerjee from WhereDoesAllMyMoneyGo.com presents Jim Cramer Controversy.  If you've ever watched the energetic Jim Cramer on TV, you'll know that he has a high opinion on his stocks.  Check out Preets post on how Jim Cramer really screwed a listener when asked about whether to sell "Bear Stearns" before it crashed.

• * Madison from My Dollar Plan presents How to Start an Investment Club.  Around here there are very few investment clubs if any.  I've always thought about starting one and wondered about the details involved.

• Dobromir Stoyanov from Dividend Growth Investor writes a Sherwin-Williams Company Dividend Analysis.

• Dividends4Life from Dividends4Life thinks that Dividends Are Gold in a Down Market, and says, "In a down-market when many people are rushing to buy gold, I already have mine. No, not that kind, but something much better!"

• Mr. Cheap from Quest For Four Pillars explains the Fallacy of Return On Investment, and says, "Return on equity is a more accurate measure than return on investment."

• Veteran Military Wife from Life Lessons of a Military Wife talks about Money for the Long Haul, and says, "Follow these seven tips and remember you are in it for the long haul!"

• Art Dinkin from Moment on Money asks If it will fix itself, is it really broken?, and says, "Commentary on market volatility and perspective."

• T Struck from Daily Money Tips tells us Don’t Chase Investment Performance, and says, "This article reminds readers not to "follow the herd" and chase hot investments."

• Passive Income Investor from Living Off Dividends & Passive Income writes about Investing In Lazard's World Dividend Income Fund, and says, "Looking at investing in LOR, an ETF with a 25% dividend yield."

• Dan at Everyday Finance from Everyday Finance presents High Yield Muni Funds with Steady Payouts – A Tax-Free 6% Plus, and says, "Municipal Bond Closed End Funds are not as boring as they sound at over 6% tax free."

• Kacper from KacperWrzesniewski.com presents Technical Analysis: Three most important rules you must know..

• David from Money Under 30 presents Asset Allocation for Investors Under Thirty, and says, "A simple introduction to an aggressive asset allocation strategy for investors in their twenties."

• nickel from FiveCentNickel presents Reconsidering Our Asset Allocation.

• BEIT from Building Equity in Toronto presents Dividend Achievers with the longest history of consecutive dividend growth, and says, "This post looks at Mergent's Dividend Achievers companies with the longest records of uninterrupted annual dividend increases."

• Freedom 45 from Freedom 45 presents A Primer on Options – Part 2, and says, "The second part in a multi part series on options and how to use them in an everyday portfolio."

• f.f. from Feminist Finance presents Your _______ Won't Have To Live Off Your Investments.

Photo credit: thelastminute

Retirement

This is a topic for both me and the child.  For me, I would like to retire a little earlier so that I can spend a little more time with my children along with pursuing some of my other dreams.  For the child, it's a great topic to get in to their minds as it puts perspective on their finances.  All three articles below are great. 

• Tim from Canadian Dream: Free at 45 presents An Engineer’s View of Retirement, and says, "Problem solving with an engineer's brain."

• Shana from Smart Easy Money presents Retirement: How Will You Live?

• NCN from No Credit Needed presents How Much Does It Cost, Per Month, To Fully-Fund Various Retirement Accounts?

Money Management

In my opinion, the whole concept of money should be introduced to a child at a very young age.  The younger they learn, the easier it is to excel in the subject as they get older. 

• * FMF from Free Money Finance presents How to Keep Your Child's Identity Safe, and says, "Identity theft among kids is a growing issue that needs to be addressed."  This is a topic that I've never covered, but concerns me.  How vulnerable is a child's identity?

• Steph from The Debt Hole writes about Spending Control, and explains, "My reflections on the two simple ways I keep my spending under control."

• Beyond Paycheck to Paycheck from Beyond Paycheck to Paycheck explains that Your problem isn't Starbucks, and says, "Many financial experts feel that the problems of the world (and especially of young people) would instantly disappear if we could only get rid of our coffee shops. They're wrong. . . but you're still in control."

• billspaced from Money Hacks asks Learning to Earn, Part 1 of … Many?, and says, "This is an article that lists and describes many, though certainly not all, ways to earn more money, which is one half of the First Commandment of Personal Finance, Earn more than you spend."

• GBlogger from Can I Get Rich On A Salary questions What Makes Up PFBloggers' Net Worth? (Part 1), and says, "This begins a series looking at what makes up the net worth of PFBloggers to see what can be learned from that."

• Aryn from Sound Money Matters analyzes Lease vs. Buy a Car – Running the Numbers, and says, "I compared the cost of buying vs. leasing a car over a ten year period. I'm sure every frugal person knows which won!"

• Foxie from Dreaming of Ferraris explains Love & Money: How I Make It Work, and says, "I've seen this carnival in quite a few places and this is my first time ever submitting to it. I'm hoping that my work is up to par, or at least close, with the many other great bloggers who participate in this carnival. :)"

• Steward from My Family's Money thinks that Emergency Funds Are the Coolest, and says, "An article about why we have an emergency fund and how we decided on the amount of the fund."

• Jon from The Money Mythos talks about Splitting Costs in a Marriage.

• Shanti from Antishay Ventenne shows How I Can Set a Good Example – Living the Dream and Teaching, and says, "This post is about what I've learned through my debt journey, and how I use my experience to walk my two younger sisters through wise money choices as they come into adulthood."

Frugality

This is a big topic that I want my children to learn and live by.  Frugal living, to me, is probably the easiest way to build wealth.  Hopefully my children can learn by example as I did from my parents.  

• * Squawkfox from Squawkfox presents Just say 'NO' to crap!, and says, "The sources of crap are vast and deep. But the most insidious forms of crap are financial crap, food crap, and consumer crap. I want readers to get high on life, not crap. Here are five reasons to kick the buying crap habit!."  A very creative article explaining how to increase your wealth by simply reducing your "crap" that we all buy.

• billspaced from Money Hacks continues Two for Tuesdays #10, and says, "This is a regular theme where I tell you how to immediately save lots of money."

• Steve from Sushi Money asks Have Gas Prices Changed Your Driving Habits?, and says, "With gas prices higher than ever, we've changed our driving behavior to spend less money at the pump. Besides driving less, there are a few things we can do to improve mileage. How have gas prices affected you?"

• Chief Family Officer from Chief Family Officer shows us Creative strategies for coping with rising costs – Part Two: The Drugstore Game.

• Brooke from Dollar Frugal gives us hints on Gifts For/From a Frugal Person.

• lpkitten from Defying Debt…in 2 Years lists the 10 Questions to Ponder Before You Buy Something, and says, "Ask yourself these 10 questions before making a purchase and make wiser decisions about how you spend your money."

• Elliott Russell from ElliottRussell.ca presents Challenge: Drink Only What is Free, and says, "This is a one month challenge for me and my readers. It aims to save money and promote better habits.

• SGM from Single Guy Money explains how to buy a reliable used car.

• Ryan Suenaga from Uncommon Cents shows us The Incredible Shrinking Interest Rate, and says, "The "high" in high yield is getting lower and lower…"

Photo credit:  timparkinson

Taxes

• *Mr Credit Card from Ask Mr Credit Card lists My 7 Step Plan For A Hassle Free Tax Season Next Year.  Every year while preparing for my taxes, I alway think about ways to make it easier for next year.  Mr. Credit Card has some excellent tips to help you prepare for the tax season.

• *Lily from The Honest Dollar explains 11 Ways to Trigger an IRS Audit.  Think you might be audited this year?  Lily has a great summary of some IRS red flags that you should watch out for.

Credit

An important concept to cover with children as they grow older is credit.  Learning the basics and benefits of paying off the credit card balance in full every month will flow into adult life.  I personally use a credit card for most of my expenses to take advantage of the point rewards, but never keep a balance.

• * paidtwice from I've Paid For This Twice Already… asks How Small a Transaction Before Plastic Seems Absurd?.  I'm a big fan of running ALL possible expenditures through a credit card for the points (no, I don't keep a balance).  There can be some issues with this though with small purchases.  Paidtwice goes through the scenario of when using a credit card is absurd.

• NtJS from Not the Jet Set presents I'm Thinking of Getting a Credit Card, and says, "I'm a debt-free, credit card company hating, Dave Ramsey fan. I have never had a credit card in my entire life and have no desire to have one. So why would I of all people now be considering getting one?"

• Ron Haynes from The Wisdom Journal writes about Another Way Credit Card Companies Will Stab You in the Back.

• vh from Funny about Money says that Credit Cards Are Good for You.

• JS from Smart Money Daily presents 6 Steps For Checking & Fixing a Credit Report, and says, "When I was turned down for a routine personal loan, which I should have easily qualified for, I discovered by accident that I had a low credit score. This story is about the steps that I took to correct the problem and some other general guidelines for monitoring and spotting any potential credit zapping mistakes or errors in your credit report."

• Debbie from American Consumer News shows us How to Read Your Credit Report.

• Lazy Man from Lazy Man and Money explains how to Hack Your Credit Score.

Photo credit: eliazar

Debt

• Finance Girl from Finance Gets Personal thinks that Debt as a Symptom of Sexual Addiction, and says, "This post talks about debt being a symptom of a problem in your life, and the specific problem of sexual addiction."

• Broke Grad Student from Broke Grad Student shows us that Debt Is 90% Mental.

• Deamiter from Handling Finances presents Cheaper Financing is a Funny Route to the American Dream, and says, "Mortgages have become universal in our culture, but what would happen if mortgages just disappeared?"

• Brainy from Pants in a Can shares a Moment of Clarity: When I Figured Out How to Fix my Finances.

Real Estate

Investing in real estate can teach many financial lessons.  Value investing, leveraging, cash flow management, people management and tax minimization are among the list.  I hope to get my children involved with real estate while they are fairly young.

• * BeThisWay from Are You Going To Be This Way the Rest of the Time I Know You? presents Twenty Things to Do Before We Buy a House.  Interested in buying a house?  This article will help you prepare for the big event!

• * Peter from Plan Your Escape asks Is Your Mortgage Interest Tax-Deductible?, and says, "An illustrated look at how an asset swap can be an effective way to make all or part of your mortgage interest tax-deductible."  A helpful and descriptive article to aid those who are interested in the Smith Manoeuvre.

• Matthew from Twin Commas questions Ready to Buy a Home? Use Competition to your Advantage.

• The Financial Blogger from The Financial Blogger presents Buying a property with $0 cash down: Is your biggest dream will come down to haunt you in your nightmares?, and says, "I used to find completely ridiculous the idea of having 100% financing mortgages. I thought it was stupid to give people the ability to buy a property when they cannot afford the payments. What is ironic is that the CMHC is a Canadian Government organization and its main purpose is to help people buying a property."

• Dan Melson from Searchlight Crusade gets into Debunking the Money Merge Account Scam.

• Pinyo from Moolanomy writes about Meandering Into Real Estate Investing.

• Silicon Valley Blogger from The Digerati Life shows us Who’s To Blame For The Subprime Mortgage Mess.

Photo Credit: VisitMyLuxuryHome

Financial Stories 

• * Hannah from The Penny Mine writes about Teaching Kids the Importance of a Dollar.

• * brip blap from brip blap tells us about poor kid blues, and says, "The heartbreaking story of a child raised from the depths of poverty to the heights of success – not really, but growing up with a little bit less didn't exactly stunt my financial growth."

• Aaron Stroud from On Financial Success describes in great detail that One year ago, I drove through a falling tree, and says, "One year ago, I drove my Honda Civic through a falling tree. We walked away unscratched (the car even ran), but the insurance company totaled our car. Three money lessons and pictures included!"

• MoneyKing from The Money Kings presents Rough Ridin' The Costs Of The Eliot Spitzer Mess, and says, "What it really costs when a state governor decides to go on a multi-year high-priced binge."

• J.C. from J.C.'s Money Blog reviews Book Review of Rich Dad Poor Dad, and says, "My long winded review of the polarizing book Rich Dad Poor Dad by Kiyosaki."

• FFB from Free From Broke makes the comparison on Five Ways Fantasy Baseball is Like Personal Finance, and says, "Five ways playing fantasy baseball is like handling your personal finances."

• PT from Prime Time Money shows us Millionaires in the Making: Ryan and Hope Wells.

• MoneyNing (David) from Personal Finance Blog by Money Ning tells us how to Reduce the chances of money conflicts with our familes, and says, "Money matters are tough but money matters involving family are even tougher!!"

Photo credit: Tub Gurnard

Business/Economy

• * RC from Think Your Way To Wealth presents 11 Ways to Market Yourself at Work to Increase Your Salary. A great article on how to impress the boss/co-workers.

• Dorian Wales from The Personal Financier asks How Much is Your Blog Worth? a Valuation Approach, and says, "Demonstrating the use of financial valuation techniques on our blogs"

• MoneyShaker from Adventures In Money Making questions Is The US Economy Going South?, and says, "While economists are still arguing over whether we're in a recession or not, American families are finding out for the themselves."

• Flexo from Consumerism Commentary shows us 15 Families Hit Hard Recently: Time to Adjust Expectations?.

• Millionaire Mommy Next Door from Millionaire Mommy Next Door asks Is the Perfect Financial Storm Brewing?.

• Kristin from The Financial Engineer explains With the Economy tanking, it's no time to propose increasing foreign aid.

Photo credit: Duchamp

Budgeting

In terms of budgeting, what has worked best for me is "The Wealthy Barber" method of separating our needs and wants.  Guess what book will be introduced to my kids when they are old enough to read?

• * Mr. Debtbeater from Debtbeater explains How to Create an Envelope Budgeting System, and says, "We've been doing this successfully awhile now, so I decided to share a step-by-step tutorial on how to start an envelope-based budget system with pictures, tips, and examples."

• * Seb from Pinching Copper shows us that Minimum, wage doesn't work, and says, "Just how far do you have to stretch a dollar to live off of minimum wage in today’s economy? I crunched some numbers to see just difficult it is to get by when you’re forced to live off a low income."

• Joe D from Know The Ledge lists 5 Life-Saving Tips For The Budget Weary, and says, "5 tips for helping ease the pressure of staying within your budget by having a little low-cost fun."

• Penelope from Our Fourpence Worth presents The No-Budget System, and says, "This article suggests that depending on types of individuals, not having a budget may actually result in greater savings than having one. How often has the thought, “I have $___ left. What can I buy with it?” come into your head when given an allowance to spend on something? "

• mbhunter from Mighty Bargain Hunter gives us Reminders for your bills that you can't put on auto-pay, and says, "Some places just aren't in the 21st century yet. Here's how to get by with those stragglers that don't yet allow automatic bill-pay."

• Kevin from No Debt Plan writes about The No Debt Plan: Step Two: Achieve Free Cash Flow, and says, "Positive cash flow at the end of the month, even if it was just $1, is a huge step forward. $1 positive is so much better than $1 negative.

• Heidi from Bankergirl shares Our Wedding – Elements of Lavish Meet Pieces of Frugal, and says, "Wedding expenses can get out of hand in a hurry, here's a quick run-down of the budget for my 'big day'."

Photo credit: Jeff Keen

I hope you enjoyed this edition of the Carnival of Personal Finance!  Thanks for reading and sharing your articles.