The news media and other sources make the financial situation seem doomed. It can be scary for the average consumer. It is hard to know what to do with investments – even those in what is thought to be the safety of bank accounts. There is one step that everyone can benefit from taking:

Don’t Panic!

No matter how bad it may seem, take your time when making decisions. You need to look at all of the angels before you make a move. Taking money out of an investment account may give short term security in these financial times, but what will it do to the long term tax picture?

Take a deep breath and write out what you are considering for your next step. Review it with your spouse, parents or other trusted advisor. Seek out the advice of your tax professional, your financial advisor and other industry experts. Listen to the words of others, do your own research and then make a decision about the right path for your finances.

It is the rash decision that will cause financial pain. Take the time needed to give your finances the attention that they deserve and you will find that your financial decisions are usually right on target.

The holiday season may not seem like the best time to teach kids about finances, but it could be the best opportunity you have ever had.

1. Cash is becoming a top gift by family members to the nieces and nephews (and even grandkids) in the family. Take the kids shopping at the after Christmas sales to help them see ways to get more bangs for their bucks.

2. Let it go. Getting new gifts is exciting but finding room for those gifts may not be. Before the kids go back to school use the time at home to sort through old toys and belongings – toss the broken ones or ones that are missing parts and give away those that are still in good shape but are never used. There should be plenty of room for the new gifts to be enjoyed.

3. Always say thank you. Let the kids decorate blank note cards and then write thank you notes to all the people who gave them gifts. Be sure to include a sentence or two about why the gift is appreciate (like what will be done with the cash or how the toy will be used).

Now is the perfect time to get the kids started on the right financial path. Teaching them to appreciate what they have, pass on what they no longer need or want and using the money that they do have in the best possible way (like with sales) are all tips that will help them along to a sound financial future.

The tough economic times has forced many people to evaluate their finances. The fear of losing a job (or the pain of one already lost) has stopped the spending and forced the savings. Although the changes have made the economic times even tighter it may turn out to be the best thing for everyone.

1. Stop spending money that you do not have. It is one thing to use a credit card for convenience. It is a different story when you are using it because you do not have the money to buy the item out right. If the money is not already set aside for the new couch, new computer or other purchase then put it off until the money can be saved.

2. Skip one evening out or meal out every week. Put these savings into a special account that you will not touch for any reason what so ever.

3. Start an accountability group. Share tips for building savings, cutting spending and even investing. Having people that will call you out when you are going down the wrong path can be the best way to get on the right track for your finances.

Start the New Year with a new attitude about finances no matter how you might end the old one. You can begin saving money right now, start cutting back on spending and find new ways to create a sound financial future.

The budget is made, we write down what we spend and we limit our purchases to necessities only. That usually lasts for the first couple of weeks or even a few months before the checkbook springs a leak.

It starts off so minor that I don’t notice the problem. At the end of the month there is just a few dollars less to put into the savings account. Eventually there will be even less at the end of the month until a deficit begins to show up. It doesn’t take long to uncover the leak and the sooner we find it the less damage that will be done.

1. Fast food purchases – one meal hear and one meal there starts to add up. The convenience of not having to cook or clean is enticing and the more we do it the more we want to do it. The irony is that most of the time I can have something on the table almost as fast as we can go through the fast food line.

2. Impulse purchases – picking up a water or soda while filling up the car, getting some snack food while buying groceries or that new purse that I’ve needed but didn’t budget for this month can all steal a just enough from the budget to do damage.

3. New costs – items add up during the year but they don’t always get added on to the budget. One item not budgeted for can put a drain on the finances.

The best thing to do when the money starts to run low is to evaluate the plan. There are times when the budget gets a once over every month in our home and there are times when we go half a month without a worry. Keeping an eye on the bottom line will help you find the leak in your finances before it puts you into a hole.

Time together is the best investment you can make in the family. The best thing about family outings is that they don’t have to cost a fortune to be fun for everyone.

1. Hit the skating rink – but try to avoid doing it literally. For just $5 a person we can skate at our local rink for the whole day. We have to add in some money for food because we can’t bring our own, but it’s a great time for the whole family (we range from 3 to 42), it’s good exercise and it’s a perfect rainy day adventure.

2. Movie memberships – Blockbuster offers a great rewards program so that we can rent one new release movie and get one favorite for free. A couple of these deals and we are set for a great rainy day weekend or just a couple of family movie nights. For the best deal, check out a movie at the local library.

3. Take a hike – getting out and enjoying some fresh air is a fun way for the whole family to get some exercise and spend time together. Add some intrigue to the outing by looking up some letterboxing or geocaching locations (and make the hike a treasure hunt).

Family time doesn’t have to cost much to make memories that will last. Put some ideas into a jar and let your children take turns picking out a family adventure.

The holiday season is in full swing and I watched my children eagerly open gifts yesterday. They have already forgotten all about the paper and the ribbons, but they are still talking about the trip to see the Christmas lights and pet the reindeer.

It is easy to get caught up in the commercial part of the holidays. This tight economic time has caused many people to look beyond the commercial and find inexpensive or free ways to enjoy the holidays. Like my own family, most of us are discovering that the best things in life are free.

1. Homemade gifts take thoughtfulness, imagination, creativity and time. It shows the receiver that you spent some time and energy and not just some dollars.

2. Time is a gift that is beyond any measure of money and it spreads out into memories that last a life time.

3. Laughter is good for the heart, soul and mind and it’s free. Playing games with the family, riding bikes or going to the park are all great ways to create holiday memories that will last longer than any batteries.

This holiday season may be winding down, but it is never too early to start thinking about next year. No matter what the future may hold for your finances, commit today to make the holiday season about the memories and not about the bucks!

My friend has been struggling recently with her finances. She married an ex-boyfriend after her husband was killed. The new husband went through the money she received for the death and dug her back into debt after she had struggled to get free. Now she’s alone again and having to face the debt, the empty savings account and four children that expect the stay at home mom to provide for their needs.

It seems that when things are at their worst is when you get hit the hardest. Instead of throwing in the towel or trying to bury your head in the sand, take the bull by the horns and get started right now on fixing the problem.

1. Find creative ways to make some money – she is looking at using her love of writing to start a freelance writing career.

2. Talk to creditors – if they know you are facing a problem BEFORE you get behind then they are much more willing to work with you.

3. Start rebuilding the savings – even if it is just a few dollars a week, having some money set back will make any situation feel a little lighter.

4. Ask for help – when every rug imaginable has been pulled out from under you it is time to reach out to those that you trust and ask for some help (guidance, accountability and yes even financial).

No matter how bad things get there is always hope. The key is to start right now to make the bad days a part of a past instead of allowing them to control your future.

There was a television show on last night and the boy was sitting in Santa’s lap telling all the things he wanted for Christmas. When the boy mentioned they were all games, Santa offered him a checker set. “What is checkers?”

The point was that times have changed. The magic of Christmas is lost. Fortunately the end of the movie brought the return of the magic of the season. In the end it was a testimony that it’s never to late.

1. Limit the amount that is spent for Christmas and birthdays and other events. My oldest son recently turned 12 and we spent a total of $160 for his birthday. That includes the party at the local skating rink (where all the parents skated as well as the kids). He had a great time – the whole family had a great time – and we didn’t have to break the bank to get there.

2. Just say NO! There is no one that NEEDS a Wii (or what ever electronics is top on the list this year). I can remember growing up and having to rent a VCR when I rented movies because we didn’t have one. The same goes for a personal computer (granted that was a few years back). The point is the same. They will survive, uninjured, if they don’t get everything they want.

3. Limit family giving. Grandparents can be especially dangerous. There is a three present limit for the grandparents in out home. Any more than three and we put them up to be opened the next year (or never). It makes the grandparents think long and hard about what gifts the kids will really enjoy.

4. Teach the joy of giving. Each of our boys began purchasing gifts (or making gifts) for friends, family and teacher when they were about six. Although we help to steer them along, they use their own money and make their own final decisions. They are learning to see what a person already enjoys and then try to match that. The season is as much about the giving as it is about the getting for them.

The kids will survive. It doesn’t take a bank breaking gift giving moment to make cherished holiday memories. Think back to your own childhood and the memories that ring clear – then find ways to take the monetary out of the holiday and bring the Christmas spirit back to life.

You’re a procrastinator. You still haven’t purchased gifts for long-distance relatives, let alone shipped them off at the local post office. Rather than forking over big bucks for last minute shipping in order to get it there in time for Christmas, try a gift you can e-mail. Here are a few suggestions.

Restaurant.com

Sign up your friend or family member for the Dinner-of-the-Month Club at Restaurant.com. Choose between 3, 6, and 12 month memberships. Each month a $25 gift certificate will show up in their inbox. All they’ll have to do is print it out and head to the restaurant for a free meal. Plus, you’ll get rewarded with a $10 gift certificate with a three month subscription, $25 with six months or $50 with a year.

GiveAnything.com

Shop in hundreds of thousands of stores. Pick the one you want, select and amount and with a couple of clicks your gift is on its way to your loved one’s inbox. It will even arrive with an electronic greeting card with a special message from you.

Charitable Donation

Buy a dozen chicks, a goat or a cow. At OxfamAmerica.org you can purchase animals in the name of a loved one, and people who really need the animals will receive them. Do something good and make a donation in honor of your family member. Gifts are at all different price points so you can spend as much or as little as you want. Send the recipient an e-card to notify them of the purchase you made in their honor.

Credit card users have someone on their side– the Federal Reserve, the Office of Thrift Supervision and the National Credit Union Administration. Those government organizations are supporting new rules to regulate practices of credit card companies. Here are a few of the new rules expected to go into effect mid-2010:

1. Interest Rate Changes: Credit card companies must disclose the annual percentage rate (APR) at the time the account is opened and if they plan on raising the rate, that must be clearly communicated when the account is opened.

2. Reasonable Time to Pay: Credit card companies can not treat a payment as “late” unless the consumer has at least 21 days to pay it.

3. Payment Allocation: If you have account balances with different Annual Percentage Rates and you pay more than the minimum, that extra money will go towards the account with the highest balance or it will go equally to all of the accounts.

4. Double-Cycle Billing: Credit card companies cannot do this anymore– it’s when they tack on finance charges based on balances associated with previous billing cycles.

These new laws are the most strict regulation efforts against the credit card industry in decades. Although the rules take effect July 1, 2010, the Office of Thrift Supervision hopes credit card companies will start complying as soon as possible.

Photo Courtesy of Andres Rueda