giving money

How to Provide Financial Assistance to Grandparents

September 16, 2015 By Will Lipovsky 1 Comment

How to Provide Financial Assistance to Elderly Relatives

If nothing else, grandparents are givers. They give so much that it may even damage their personal finances. Take the time to consider just how much your grandparents give to your family and think of ways you might give back financially. You’re likely never to be able to give back the same amount in time.

Grandparents Are the Family’s Financial Safety Net

According to a study by MetLife, ‘Grandparents Investing in Grandchildren: The MetLife Study on How Grandparents Share Their Time, Values, and Money,’ shows that grandparents offer caregiving, advice, moral support provide financial assistance to their families, especially grandchildren. According to the study:

62 percent of grandparents provide their families with financial assistance
In the past five years, grandparents gave grandchildren, on average, $8,289
Grandparents contribute towards investments, education and down payments on their grandchildren’s homes.
43 percent said they give more now because of the economic downturn
34 percent continue to support grandchildren even though it harms their financial security.
Grandparents in the study said that the most important legacy they wanted to leave their children was to be seen as providers, even when times were tough. Although this generosity is admirable, what are we doing to thank grandparents for their altruism?

Giving Back

If you took financial help from your grandparents, it’s unlikely you’re in a position to give back. But you are in a position, consider these ways of easing the burden while respecting their pride.

Pay Back What You Can – Try to pay your grandparents back, no matter how small the amount, every month on a regular basis, with a thank you note for their help. Make the thank you personal as that will likely mean more to them than the money.

Take Only What You Need – If you can find a way to get the money you need by taking a second job or cutting back on expenses, do it before you consider taking assistance from your grandparents.

Accept Loans, Not Gifts – Be mindful that your grandparents are willing to give you the shirts of their backs. Don’t accept gifts. Instead, only accept loans that you can pay back over time.

Encourage Others to Do the Same – Discuss the problem with other family members. If your grandparents have difficult finances, make sure other family members understand that and don’t take advantage of their generosity.
You can’t fix your grandparents’ financial troubles, but you can avoid making them worse. If all the grandkids decide to chip in, a big difference can be made. As with everything financial, the greater the human numbers, the greater the monetary numbers.

Bottom Line

Your grandparents come from a generation where respect is of the utmost importance. By using these tactics, you can help them out financially without them turning you away.

Look for further resources for giving money to family members. Each grandparent is special. We mustn’t think one size fits all. And make sure gifting fits into your budget. Many people enter giving as an area to their budget. A tithe literally means 10% of your budget. If you’re not religious, consider ‘tithing’ 10% of your money to a good cause such as this one.

Warren Buffet Donates a Record $2.8 Billion to Charity

July 15, 2014 By Jeffrey Strain 6 Comments

Warren Buffett is a generous man, as in giving away billions of dollars generous (he also has a favorite business book you’ve never read). He’s continuing to live up to his Giving Pledge which encourages the world’s wealthiest people to pledge to donate a majority of their wealth to philanthropic causes. 210 have made the pledge, with Buffett pledging to give away 99% of his fortune. The organization is now focusing on getting more of the wealthiest living in other countries to also participate in the challenge.

Not being satisfied with last year’s $2.6 billion donation to charity, he topped it by giving a record $2.8 billion to set a new personal philanthropy donation record. The massive donation went to the Bill and Melinda Gates Foundation along with several other charities as part of his yearly giving pledge. Buffett raised money earlier this year for the GLIDE Foundation by auctioning off a luncheon on eBay which raised over $2 million.

The donation came at a cost to his current rank of the wealthiest people in the world. The $2.8 billion loss of assets dropped him a place to number 4 of the list, a spot he had recently regained. His net worth dropped from $65.9 billion to $63.1 billion according to Forbes. Buffett made the donation by giving away 21.7 million shares of his Berkshire Hathaway class B stock to the charities. Those shares had a value of $128.98 per share when the stock market closed on Monday.

Buffett made the following donations this year:

He gave 16.59 million shares worth $2.1 billion to the Bill and Melinda Gates Foundation, which works on many issues such as poverty, schools and improving birth control technology.
He gave 1.7 shares worth $215 million to the Susan Thompson Buffett Foundation, a non-profit which was named after his late wife that provides a number of scholarships for education.
He gave 1.2 million shares worth $150 million to the Howard G. Buffett Foundation, which helps solve conflicts and provide food to people in developing countries.
He gave 1.2 million shares worth $150 million to the Sherwood Foundation, which helps with education and social-justice issues in Nebraska.
He gave 1.2 million shares worth $150 million to the NoVo Foundation, which works to establish equality for women.

Buffett gave most of the money to his good friend Bill Gate’s foundation. The others were family endeavors. Susan Thompson Buffett was a foundation set up in the name of his first wife and the other three receiving donations are all run by his children.

(Photo courtesy of DonkeyHotey)

Am I A Sucker? Day 9

January 9, 2013 By Jeffrey Strain 12 Comments

I don’t usually give money to people. I’m far too familiar with the many scams that are out there, and I know that my money will go a lot further and help a lot more people by purchasing food for the food bank rather than give it to individuals begging on the street (I have had a habit of putting $5 toward the food bank fund every time I was asked for money in the past — I would like to continue that, but may have to reduce it to $1 with the current minimum wage challenge restrictions). So I wasn’t really expecting to hand $10 to a total stranger today, but that’s exactly what I did.

Since this is my last day visiting my mom before heading off to my second house sitting job this year, and having a ton of work to do, I decided that this probably wasn’t the best time to test if I could be more productive at home or at the library (I’ll do that testing when I have a longer period to visit and can do all three back to back). So I headed to the coffee shop to work knowing I still had money on my card that I could use to get a drink. I did find out the least expensive drink is a small coffee ($1.75), but unfortunately, I don’t drink coffee. So I have to settle for my $2 tea.

I figured with the card and a day full of article writing to do, it was going to be an inexpensive and uneventful day. So much for my predictive powers…

The rain started to drizzle and I was working away from the coffee shop when a young woman and her daughter came in to use the ATM. There had been a few other people that had come in to use it, and although I wasn’t really paying attention, I made out that it wasn’t working at the moment and people couldn’t withdraw money. There was something in the young woman’s voice that made me look up. With the little girl by her side, she was panicked. I sort of made out that they were supposed to see a movie together at the theater, but she didn’t have enough money for the tickets. She desperately asked where the nearest ATM was, and the staff explained that there was one about a 5 min. drive down the road. She looked at her watch, grabbed the little girls hand and started to run out the door.

There was just something about her demeanor and actions that made me conclude that the movie was really important. I’m not sure if there was any special meaning for the movie they were going to see, but my gut told to me that she needed to see the movie and she wasn’t sure how she was going to get the money to do it. Without really thinking about it, I got up from my seat and ran out the door after the two. I managed to catch them after about 100 yards. She turned and you could tell her mind was running 100 miles an hour trying to figure out how to get to the nearest ATM and still make the beginning of the move.

I asked her how much she needed for the movie. She seemed somewhat confused by the question. I asked again. She said the $10 would do so I reached into my pocked, pulled out a $10 bill and gave it to her. I think she was more stunned than anything, then an immense look of relief. She thanked me profusely and asked how she could repay. I simply told her to make sure to pay it forward to somebody else someday.

I really have no idea what the whole story is or whether she really needed the money or not. I just had the feeling she did and acted on it. Was it financially smart thing for me to do well living on a minimum wage budget? Probably not. There certainly may be sometime during this challenge where I wish I had that $10 back. But my gut tells me that it was the correct thing to do under the circumstances. I guess my basic feeling is that I hope that if I am ever in a situation where I was in such a panic, that there would be somebody who would be willing to help me out.

One of my biggest worries with the challenge has been that I would begin to over analyze all the daily financial transactions I make so that the money becomes the overriding theme of each day. Whether I was right or wrong in giving the woman the money from a financial perspective, my hope is that I can keep that spontaneity to listen to my gut and do what seems to be right at the moment rather than always stepping back and over analyzing.

So what’s your opinion? Did I make the right move, or should I have found out more of the story before offering the money? What would have you done in a similar situation? Do you give money to strangers, and if so, under what circumstances?

Today’s Spending

Food: $0.00
Car: $0.00
Housing: $0.00
Travel: $0.00
Misc: $10.00

Total: $10.00

Total Spending

Food: $7.39
Car: $0.00
Housing: $0.00
Travel: $0.00
Misc: $16.15

Total: $23.54

Next article: Day Ten: Do I Really Have To Try To Date?

(Photo courtesy of savanna-smiles)

“Could You Spare Some Change?” How Do You React?

May 5, 2011 By Jeffrey Strain 6 Comments

I was heading up to Oregon and made a stop at a fast food restaurant to go to the bathroom and get a drink. As I walked to the door, a young couple sat in the shade on the side of the building. The man caught my eye and asked, “Could you spare some change?”

I have a policy to never give money directly when people ask me for it, but that doesn’t mean I’m not willing to help out. In this instance I asked, “Are you hungry? Would you like some food?”

They both said “yes” and after asking what they would like, I went in and purchased the food that they wanted. It ended up costing about $10 for the two meals I purchased.

While I in no way regretted making the purchase, as I continued my drive I started to think if there could be a better way to provide food for those in need when I travel. I’m finding that I am coming across more and more couples like this as I travel. I began to wonder if there was a way that I could provide more food with better nutrition than a fast food meal if I used some of my acquired couponing skills.

The more I thought about it, the more this seems like a good idea. Not only could I create a small food package to pass out to anyone I happened to come across while I traveled who needed it, the packages would be a good emergency food supply that would be worth having in the car in their own right. The food package would also allow anyone that received it to eat the food when they wanted to and not right away as they had to with the fast food meals.

The problem, of course, would be coming up with a food package that contained fairly healthy food that could also last a fair period of time without going bad and wasn’t overly heavy so that they could easily be taken wherever the people might go. This is a list of the foods I came up with:

Granola bars
Jerky
Nuts
Trail mix
Dried fruit / fruit leathers
Apple sauce

Those were the first thoughts that came to my mind although I am sure there are others (feel free to leave comments on quality food I could add to this package that I didn’t list). I think with a bit of patience and keeping an eye out for corresponding coupons, I should be able to create a food package like this for a few dollars. Do you think that a dual purpose food package (emergency food supply and for giving to those that are requesting food) is worthwhile and how would you go about creating something like this?

Panhandle: Strange Ways to Make Money

September 8, 2010 By Jennifer Derrick 34 Comments

When you think of panhandling, you probably think of the homeless and the desperate. It would never be something that a white collar professional would engage in. Would it? If you think the answer is, “No,” here’s a story for you. There is a man who panhandles near my office and I walk past him nearly everyday. He stands on his corner with his dog and asks for money. His sign simply says, “Need money. Please give.” He’s not a scary looking guy and is always polite to passerby. He’s been there for almost a year. I have to admit that I’ve been really curious about this guy. He seems like a smart, decent guy — not at all what you think of when you think of a panhandler. So one day my curiosity got the better of me and I gave him five dollars and asked if he would talk to me for a minute. He agreed. I have no idea what his name is (don’t ask, don’t tell), so I’ll call him Joe for this piece.

I asked him what he’d done before he started panhandling. To my surprise, he used to be an engineer. He got laid off a couple of years ago and quickly got fed up with job hunting and filing for unemployment. He tried to start his own business, but it didn’t take off as quickly as he’d hoped. During this time of un/underemployment, he realized that he really hated the 9 to 5 grind. He looked into some other lines of work, but couldn’t really find anything. A friend dared him to panhandle for one day and boom, he found his calling.

“I loved being outside and meeting people. I loved setting my own hours and working when I wanted to. I didn’t have a nasty boss hanging over my shoulder telling me what to do. The freedom was wonderful.”

“But you don’t make much money, do you? How can you live on this money?” I asked.

“In a good year, I clear around $55,000 in cash, tax free. Since everything is paid in cash, I don’t pay taxes. This is probably close to the equivalent of an $80,000 per year job. I live in [here he named a neighborhood in town that’s not super wealthy, but it known for it’s well off residents]. It’s not a bad life. I just have to buy my own health insurance.”

Wow. I had no idea that panhandling could be so lucrative. Setting aside the ethics of not paying taxes, I moved on.

“What do your neighbors think?” I asked.

“They don’t know. I tell people that I’m self employed and most simply assume it’s in my former profession,” Joe said.

“Do you have a family?”

“A wife and two kids. They’re okay with this. The kids think it’s an adventure, and it sort of is. My wife is just happy that the money comes in.”

“Will you ever go back to a real job?” I asked.

“Probably someday. This is fun for now, but I can’t imagine doing it forever. When the economy improves, I may try to start my business again.”

“Why the dog?” I asked. It’s a cute dog, some sort of mutt. He’s very friendly and loving, too.

“The dog puts people at ease. He’s friendly and sweet. People like to pet him and talk to him. People end up giving me money after they’ve petted the dog. It’s like they’re paying to play with the dog.”

(Personally, I think there’s a sympathy thing going on where people think he can’t feed the dog so they give money, but Joe didn’t admit to this and I wasn’t there to push him into confession.)

Joe said that, like any successful venture, successful panhandling seems to depend on having a lure. Offer something that other panhandlers don’t. Joe has his dog. Then there’s the traditional window washer. I saw a man on the news who tells you a joke when you give him money. Someone else I’ve seen will recite you a Bible verse. Joe told me about a former counselor who would offer advice. If you can give people something for their money, you’ll fare better than the ones who just ask for money and give nothing in return.

I asked Joe what was the strangest thing he’d ever been given. Since not everyone gives money, I was curious.

“I’ve gotten food, gift cards, dog food for the dog, handmade crafts, and bags of toiletries. But the strangest ting was the tools. A guy gets out of his car, pulls this old toolbox out of his trunk and hands it over. He said he’d been cleaning out his dad’s garage and found it. He didn’t need it, so he gave it away. ‘Learn a trade, man,’ he said and drove off. I thought it was funny, but those tools have come in handy.”

If you want to take up panhandling, here are some more tips from Joe.

Don’t lie: Don’t put up a sign saying you’re homeless if you’re not. Don’t say you have six kids if you don’t. It’s fine to ask for money; after all people can simply say no. But don’t trick people into giving you money.

Don’t be hostile or rude: If someone doesn’t want to give, or only gives you pennies, don’t make sarcastic comments, flip them the bird, or tell them off. Just say, “Thank you,” or “Have a nice day,” and move on.

Obey local laws: In most areas it’s not totally illegal to panhandle. However, there are likely restrictions on where and when you can do it You may also have to register with the municipality and become a licensed beggar. Learn the rules and follow them, unless you want a night in jail.

Dress well, but not too well: You don’t want to look scary or freakish because that scares people away. However, if you look too nice people will assume you have no need of money and ignore you. Jeans and t-shirts are good choices, according to Joe.

Don’t be aggressive or threatening: Don’t chase people, don’t get in their faces, and don’t make threats to coerce them out of their money. Politely ask if they will give and leave it at that.

Accept whatever is given: If you get gift cards you can’t use, you can trade them for ones you will use online or with other people. If you get liquor (it happens), you can give it away at Christmas. If someone wants to buy you lunch, let them. Cash is great, but other things have value so turn nothing away.

Never panhandle when drunk or high: Not only is it illegal in many places to be publicly under the influence, it scares people off and may make you say or do something that can get you in real trouble.

Panhandling isn’t for everyone and there are some questionable ethics involved in pursuing this when other options as available to you. (Not to mention the tax thing.) You can argue that someone who can work and is educated shouldn’t be panhandling. However, I could also argue that a lot of educated people shouldn’t be in their chosen professions, either. In a free market economy, if someone like Joe can make a living by panhandling, he has that right, as long as he isn’t forcing people to give him money. People pay for a lot of stupid things, so if they want to give him their money, they can and he can accept it.

I don’t know if Joe is right to be panhandling or not. On one hand, I think he should get a job. But on the other, I find myself thinking that if he can make money doing this, he enjoys it, and isn’t hurting anyone or doing anything illegal, then there’s nothing wrong with it. It’s kind of like starting any other business. You do what people will pay for and people pay him. I never would have thought that panhandling could or would be a career choice, but apparently it can be.

Charitable Giving When You Make No Money

April 10, 2009 By David G. Mitchell 18 Comments

Although I am frugal, I like to at least think that I am neither stingy nor greedy. I am quick to spend if it will make my family happy and I have always been quick to donate to a good cause. When I go through the checkout line at my grocery store, I always try to give to whatever cause the store is supporting and we always put our envelope into the collection basket at church on Sunday. When neighborhood kids are selling candy or candles for school fund raisers, we always buy something, even if we know that we will never use it. We like to help others and we enjoy the feeling that we get by doing so. Charitable giving is a win-win situation for us, or so I hope.

Lately, I have been wondering whether we are being irresponsible by giving to charity. It’s been almost ten months since I last drew a paycheck and cash has definitely been headed out the door much faster than it’s coming in. At what point, do we need to heed the adage that “charity begins at home” or the maxim that “God helps those who help themselves.” After all, every dollar that I contribute to help with a school fundraiser could be a dollar that I need in another few months to pay for some necessary item that my family might need.

With our church, the issue of charitable giving is particularly interesting. The church asks that we give ten percent of our income. I am pretty sure that very few people at my church are doing that but even so, does that mean that the church wants us to give ten percent of nothing? After all, if I am making nothing, I can give ten percent, twenty percent, even a hundred percent, and still give nothing. I am pretty sure that the church would give me a different way to calculate my weekly donation if I tried to fall back on simple math to avoid a donation.

Thinking about charitable giving, which is down in all sectors this year, I think that all of us, can and should donate to charity, even if we are out of work. Here are a few reasons to consider:

There is Always Someone Needier than You: I donate small amounts because I know that there are many people in far worse financial condition than me. Even if that were not the case, I would want to believe that there are people in far worse financial condition than me. Giving to charity makes me feel better about myself and that is well worth the contribution.

Any Contribution is better than No Contribution: If I donate one dollar to a good cause, that is one less dollar that the cause needs to raise. If everyone tried to find a way to part with an extra dollar in the checkout line at the cash register or when the collection plate came around on Sunday, a lot of good would come of it and we would all benefit from it. Think of that the next time you buy a bottle of soda at the checkout stand.

Contribute Time without Spending Money: You do not need to donate money to contribute to a charity. You can volunteer your time. I have time on my hands so this week I will be donating twenty-five hours to various local charities. I know I won’t be able to do that when I have a new job so I need to take advantage of my free time now, and who knows, by volunteering you may meet someone who can lead you to your next job or a better job.

Contribute Skill without Spending Money: Perhaps you have a skill that you can share with a charity. Are you a plumber, a craftsman, a cook or a seamstress? Many charities need skills such as yours. Take a day each month and set aside a portion of it to assist a charity that you support.

Support a Charity by Going to Its Events: Even if you really cannot afford a donation, you might still be able to find the time and the money to go to charitable events. If a band is performing a benefit concert, buy tickets and enjoy the show. If a restaurant is hosting a tasting to raise money for a charity, go to the tasting. The charity will get some money and you will be entertained or fed or otherwise get a benefit.

How and why do you give to charities? Does the current economic climate have you donating less? Are you relying on charitable assistance? Whatever your relationship may be with charitable giving, tell us about it.