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Grasping the concept of money can be difficult for children. They'll learn best by example and experience, starting as soon as they're able to understand the concepts of addition and subtraction. You can then begin teaching them the basic principles of money management and how money can buy the things they enjoy or need. 

Learning the basic concepts of frugal living also will help children make a smoother transition from depend on adults for all their needs to managing their own finances. The following 12 steps can help you start your child on the path to economic independence. 

1. Begin Early
As soon as children can count, teach them to count money. When paying at the register, explain how you're paying and how the amount owed translates to cash in your wallet or money transferred via a credit or debit card.

2. Piggy Bank Savings
Beginning at ages two to four, introduce your child to the basics of saving money with a first piggy bank. Toddlers and preschoolers love inserting coins in the piggy bank slots and this enhances their eye-hand coordination. Once they get the hang of it, make it a weekly practice to sock away coins.

3. Math Skills
Children understand basic math between the ages of four and six so you can begin role-playing games with a toy cash register and money. When they get a bit older, introduce games such as the child's version of monopoly to teach them how money is used to make purchases.

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Health care costs can eat up a large portion of budgets, particularly if you've experienced a medical emergency. The one advantage is that Uncle Sam allows you to deduct medical costs that are more than 7.5 percent of your adjusted gross income. With a touch of tax triage, you might just reach this golden number and greatly reduce your tax burden. 

You can deduct medical expenses of everyone listed on your tax return, including dental bills. You also might be able to deduct expenses paid for a parent, even if they aren't considered your dependent for exemption purposes. You also can deduct money spent on medical bills for a deceased depending in the year they were paid, whether before or after the person passed away. 

Here are nine allowable and often overlooked medical deductions. 

1. Travel
You can legally deduct travel expenses to and from medical treatments but the mileage rate changes each year. For 2010, the mileage rate deduction is 16.5 cents.

2. Previously Taxed Income 
Insurance payments from already taxed income include the cost of long-term care insurance, up to certain limits based on your age.

3. Uninsured Medical Treatments
This includes an extra pair of eyeglasses or set of contact lenses, false teeth, hearing aids and artificial limbs.

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Economists are saying the recession is over. Bull hockey! Maybe the stock market is recovering and bankers are smiling, but you and I both know America still has a long row to hoe before the little people see blue skies again (you should excuse the mixed metaphor). 

We all know people who've been unemployed so long they've given up. Our early enthusiasm for frugal living has turned into frugal fatigue. And it's been heaven knows how long since dining out didn't eat up our entire food budget. (Again, apologies for the bad pun.) 

So next time you hear the economy is getting better, just think about these 10 signs the recession is over. In fact, we had a hard time limiting ourselves to just 10!

1. Two Buck Chuck America's Best Selling Wine
Trader Joe’s, a specialty grocery store based in California, is a savior to cash-strapped wine snobs. The store's legendary Charles Shaw wines, lovingly nicknamed “Two Buck Chuck” have become something of a phenomenon in the wine world and are now the nation’s best-selling wines. That's not surprising when you consider the combination of great taste and low prices ($1.99 - $3.49 per bottle, depending on the region).

2. Unemployed Women Selling Their Wedding Rings on Craigslist
There are thousands of ads on Craigslist for things like used appliances, furniture, and cars from people who need a little quick cash to get by, with the seller frequently revealing a glimpse of the problems necessitating the sale. For upfront desperation, few ads are more poignant than the ones for wedding or engagement rings from people in financial straits. According to theHuffingtonPost, "Sellers typically said they posted their ads in an effort to take care of their children."

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If you think your household finances are invulnerable to disaster, think again. Just one flood, fire, earthquake or tornado could wipe out your life savings. Before misfortune hits, it's vital to secure your finances from unexpected events of nature. 

Here are seven steps to protecting your home and finances.

1. Get the Right Insurance
Review your insurance policies to ascertain what they do and don't cover. Keep in mind there's a big difference between replacement cost coverage and standard coverage, which only pays the actual cash value of insured property. Be sure that you have enough insurance to cover recent home renovations or improvements. Learn more by visiting Fema.gov, and the Insurance Information Institute.

2. Purchase Flood Insurance
As many Hurricane Katrina survivors sadly learned, most homeowners insurance polices don't cover flood damage. Look for flood insurance that will cover both your structure and the contents. Renters and business owners also should purchase coverage. Nearly 100 insurance companies in more than 21,000 participating communities offer flood insurance at an average of around $500 a year. In low- to moderate-risk areas, lower-cost Preferred Risk Policies (PRPs) start at just $112 a year. Learn more about your flood risk and how to protect their property at FloodSmart.gov or calling 1-800-427-2419.

3. Inventory Possessions
Keep a written and video or photo record of all major household items and valuables, including those stored in your basement, crawlspace, attic and garage. Create files detailing serial numbers and store receipts for major appliances and electronics. Have jewelry and artwork appraised. These documents are critically important when filing insurance claims. For help in conducting a home inventory, visit KnowYourStuff.org. or the Insurance Information Institute.

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Among the many wonderful things you may learn in college, there’s one thing you may learn the hard way: money management. As a recent college graduate, there are many money saving tips I wish I'd known before heading to college.

College students have enough to worry about: Studying for tests, paying for tuition, making it to class on time and, of course, having fun. How and where you spend your money is probably the last thing on your mind. College is an expensive investment. There isn’t much you can do to control those expenses, but there are ways to control your personal spending. 

Check out these five tips to help reduce those costs and help you avoid eating Ramen noodles every day of the week. 

1. Track Your Spending
The best thing you can do is track exactly where your money goes. Make a list of all mandatory expenses, such as rent, utilities, school supplies and groceries. Once you know where your money is going, it's easier to establish a budget. Make sure you budget a bit for fun or you'll fall off your budget as easily as you'd fall off a diet. Just stick to your plan and form good spending habits early.

2. Avoid Credit Cards
Although having a credit card may sound like a good idea, don't be fooled. Credit cards are one of the biggest problem areas for college students. They may seem like free and easy money to a poor college kid, but the money you borrow must be paid back with a steep interest rate and hidden fees. Fortunately, recent federal legislation makes it far more difficult for students to obtain credit cards without an adult co-signer, but it's still possible to get into trouble. If you must get a card, make sure to sign up for one with a low interest rate that won't balloon after the introductory period. And make sure you pay the balance off every month.

Photo by Steve Rhodes

In the ever shrinking credit market, it's become more and more difficult for low-income consumers to obtain traditional forms of credit, such as credit cards and personal loans. As a result, more people have turned to “pay-day loans.”

These short-term loans allow consumers to almost instantly obtain cash, using uncashed checks or electronic access to a ban account as collateral.  

Most pay-day loans require repayment within a week or two, usually when the borrower receives their next pay check. The problem is that borrowers who can ill afford to do so must re-pay not only the amount of the loan but a hefty finance charge. Those who can't pay back the entire loan within the specified period,are charged additional fees until the loan is paid off in its entirety.

Pay-day-loan firms typically charge over 300 percent APR (Annual Percentage Rate), although many loaners usually advertise at a better rate. Add this interest to the balance of the loan and you might as well borrow from a loan shark. The only advantage of a pay-day loan is that Guido won't show up to break your legs when you can't pay. 

Thanks to the recession, pay-day loans have become big business. Here are some basic facts you should consider before taking out a pay-day loan.

1. Loan Terms and Fees
Typical loan terms range from as little as $100 to upwards of $2,000 dollars. State laws determine the size and terms of loans, but companies can charge additional fees above the interest rate. For example, a borrower often may end up paying $115 on a $100 loan; an interest rate of well over 600 percent.

Photo by Andres Rueda

The Federal Reserve's new rules for credit card companies mean consumers now enjoy increased protections. Happily, the Credit CARD Act requires credit-card companies make monthly statements easier to read with much useful information. The new statements will help consumers stay better informed and keep a close eye on any changes made by lenders.

Here are some key changes you can expect to see when your next bill drops through the mail slot.

1. Summary of Account Activity
This summary includes all transactions on your account, including payments, credits, purchases, balance transfers, cash advances, fees, interest charges and amounts past due. It'll also show your new balance, available credit (your credit limit minus the amount you owe), and the last day of the billing period (payments or charges after this day will show up on your next bill).

2. Payment Information
Here's where you'll find your total new balance, the minimum amount you can pay and the date your payment is due. A payment generally is considered on time if received by 5 p.m. on the day it is due.

Photo by MarkKelley

If your cell bill comes in an 8-1/2 x 11 manila folder, you're paying too much for your monthly service. But even if your bill is just one or two pages long, you could be paying for stuff you don't owe.

Cell phone statements tend to give obscure names to the extras they charge so it’s not always easy to understand what everything means. If you don’t remember ordering or using all those "incidental" charges, it can be difficult to know whether you're being cheated or not.

Here are four things everyone should know about their cell-phone bill.

Agreed-upon Charges
First, check to make sure you're only being billed for services you requested. Some items are frequently listed as “recurring charges” because you pay the same cost each month. Refer back to the original contract or service agreement to identify any services charged under this listing. Most plans charge extra for text messaging, three-way calling, extended hours or additional minutes. You don’t want to be charged for a service you didn’t order.

 Before you sign a wireless service contract, ask for a detailed explanation of costs. Request a sample statement that details only the features you ordered to avoid any surprises when you get your first bill. You'll be locked into these fees for the rest of the contract, once you've signed. Contact your provider if you find charges not listed on the contract and sample statement.

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Are you being nickled and dimed by your credit card company? Congress has finally done something about it. Although many loopholes remain, some problems will be eliminated by the Credit Card Accountability Responsibility and Disclosure Act, (CARD Act) which takes effect Feb. 22.

Thanks to the CARD Act, unexpected rate hikes, over-limit fees and double-cycle billing and other rip-offs are history. The new rules for credit-card issuers are arguably the most consumer-protective in the history of credit cards, dealing with scams that have trapped millions of consumers into ever-mounting debt.

Credit issuers have mailed out change-of-terms notifications that explain the details in recent weeks, but since many of us don't read all the fine-print sent to us, here are the key changes put forth by the law. We've also included some notable exceptions that may require further legislative attention.

1. Finance Charges, Interest-rate Hikes and Notifications

• No interest-rate increases for the first 12 months after opening an account.
• Rate increases can only be applied to new charges.
• Annual and application fees cannot exceed 25 percent of your initial credit line.
• No more double-cycle billing, (charging interest on your current billing cycle and the previous one. Even though you may have paid your previous balance in full, you are still charged interest on it.)
• Promotional-rates available for a minimum of six months.
• No more over-limit fees, unless the card holder opts in.
• No fees to make credit-card payments online or over the phone, unless you make a payment on the due date.
• Must give 45-day notice of pending rate or fee hikes or any other significant changes to credit-card terms.
• No more rate increases on existing balances due to "any time, any reason" or "universal default"
• Severely restricts retroactive rate increases due to late payment.
• Contract terms must be clearly spelled out and stable for the entirety of the first year.

Photo by Howard▼Gees

The old rule of last-hired first-fired has gone by the wayside during the recession. Now the rule is to first lay-off the older, higher-paid employees. Unfortunately, this practice leaves companies without the historical perspective and depth-of-knowledge it takes to make a company successful.

If you've been laid-off and have hit the half-century mark, you know how difficult it can be to find a new job. Younger bosses are often intimidated by more-experienced applicants and fear they'll be overshadowed. Some companies prefer not to hire workers over 50, feeling they'll retire soon and experience more health problems, becoming a financial drain.

Realizing times have changed the American Association for Retired People has compiled a list of the best employers for over-50 workers. Here are the top 10 of AARP's top 50 list.

1. Cornell University
Cornell uses placement agencies for older job seekers to successfully target mature workers and retirees. In addition, Cornell recruits from within its own ranks of retirees through the Cornell Retiree Association and the Cornell Association of Professors Emeriti. Thirty-six percent of Cornell employees are age 50+. The average tenure for employees age 50+ is 17.7 years.