Posts Tagged ‘spending’

Holidays for a lifetime – or not?


A timeshare is a jointly owned property, usually an apartment in a resort   that is jointly owned by people who use it at different times. In other words, timeshare is the right to spend a specified period of time (say, a week or more) in a vacation/holiday property. For instance, if a person purchases a timeshare for one week at a resort in Goa, he will have the right to spend one week there each year. In such a case, there may be up to 52 timeshare owners in the same resort each year.

The memberships are long-term — usually for 15 or 25 years — and members pay annual fees towards maintenance charges like upkeep of property, utilities or staff salaries

Apartments are fully furnished with well-equipped kitchens. The time share period can be used as currency that gives an option to the timeshare owners of holidaying at different places each year through the exchange facility extended by most of the timeshare companies.

The amount you pay depends on the location, the time you choose and the size of the accommodation.  You can also choose your vacation time of the year – peak, off peak and off seasons and the payment you make will vary accordingly.

Most timeshare companies are affiliated with RCI which offers national and international locations for exchange by pooling in many other companies.

Are they right choice for you?

Timeshare resorts offer sounds fantastic. But there are a few grey areas that you should be careful about.

Choose timeshare holidays if:

–          You can plan your holiday well in advance – The most popular destinations are booked months in advance, so if you are a last minute guy, time share is not the answer for you.

–          Holiday regularly – Timeshare vacations usually offer a week of holiday each year, so you will make a good deal if you take a vacation regularly with your family.

–          Understand the extra costs – Timeshare vacations are not a package tour. Besides stay, everything else is charged to you which includes travel, food, sightseeing etc.

–          Are prepared for rise in cost – Inspite of the sales agents claims to the contrary, time share vacations are not inflation proof. The annual charges are increased from time to time.


Precautions to take before choosing a timeshare

Scam artist are a dime a dozen, however there are many genuine timeshare companies offering great vacation plans. Here is what you can do ensure you get a good deal.


  • Verify the reputation of the company and experiences of existing customers.
  • Invest in an established company, a high-demand location, peak season and a large unit for maximum trading power.
  • Check the rate at which the charges increased and on what basis.
  • Companies should give you benefits such as a 10-day cooling-off period to reconsider your decision.
  • Do not be pushed into hasty payments with hard selling talks and upfront gifts – investigate before you invest.
  • Do consult your family; it is their vacation too.



Teaching your kid money management

Most of us are well aware of the importance of creating budgets and plans for our personal finances. However, sometimes we forget that we also need to pass on this essential knowledge our children about planning and budgeting.


You have to give your child the power to decide how much to save and how much to spend. By giving your child this power, you will also confer the responsibility and excitement that comes with making adult decisions. You can make suggestions and prepare some example plans, but the final choice should be left to your child.

By giving your child a choice of how much to save, you bypass the question of whether or not to save. The goal of this exercise is to teach your child to make saving a habit. Help him save by starting a bank account and encourage him to save extra by adding a matching amount he saves each time.

You should not interfere in how your child uses his or her spending money. Don’t interfere with your child’s spending habits other than to point out that once it’s gone it’s gone – you won’t provide more money if your child spends his or her own too quickly. It’s a difficult lesson, but children will do better if they learn it early.

Get Organized
On the same day as you open the account, go shopping with your child and select a binder, a congratulatory present. You will use this to organize your child’s bank statements. Starting out with an organized record-keeping system will be valuable when your child gets older and has to grapple with taxes and accounting.

When the statements arrive, go through them together and explain the interest and any other numbers that may appear upon it.  On the same day as you regularly pay out your child’s allowance, go together to make the deposit at the bank. This will help to reinforce the habit of saving before spending.

So go ahead and give your child habits that will last him a lifetime.