The American Dollar
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One industrious American family's focus on a financial goal of freedom. Through worldly personal finance education, here is our story.
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Our Story: Both my wife and I are 27 years old and have gone through financial hell and back. Now we are on track to financial freedom, however we are not financial advisors or professionals, just everyday people. Share our journey from a negative networth and email us if you have questions or comments! :)



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Wednesday, February 15, 2006

Mommy can I call China?


We're hoping that China is her school friend. In the wrong hands, children and cell phones are NOT a good combination. Why do parents allow themselves to be victims of high bills? Maybe they enjoy the $300 look on their childs face when they've run up the bill because of using too many minutes, downloading ringtones, or using text messaging. Honestly, there are so many benefits to having a cell phone in this day and age; safety ranks number one on the list of parents. However the safety of getting a hold of your child has a price. This is especially in the scenerio where the 9 year old wants to look cool, be popular, fit in with the crowd, whatever. Mom and Dad think its a safety issue but junior doesnt know the concept of staying with his minute usage or not abusing the added on features. "You only get 400 minutes a month, so dont go over." The marketers arent helping either and want to market to your child early (kinda like what credit cards do to college students and 18 year olds). This will help the carriers in the long run when with consumer loyalty.

Take a look at the pros and cons at the bottom of this article to see what your needs are. Statistics show that even with family plan add ons for $20, if you want your childs phone shut off due to a myriad of reasons, you will pay the early termination fee ($150 -$200 plus applicable taxes). I would stick with standard prepaid only because the disposable phones costs too much after a certain amount of time.

My wife and I have free phones through our jobs and we dont believe in landlines because we are never home. However this year I did add a phone for my responsible 12 year old sister, who uses the text messaging, AOL and web more than anything. Total phone communication costs at our house: $13

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