Here's a neat game I just tried  Debt Ski with Piggy Banks

"Debt Ski is an online video game that spot lights the dangers of excessive debt. abd challenges the player to avoid destructive financial behaviors."

Players lead the skiier, Piggy Banks, maximize savings, limit debt abut also maintain a level of happiness. Really cute and not hat easy to accomplish all three goals!

The entire http://www.indebted.com website is informative and a bit scary in its facts including a national debt counter.  Your share of the national debt = $184,000!

Carol

My church just finished 13 weeks of Dave Ramsey's Financial Peace University(FPU). I was one of the volunteer discussion group leaders.

According to Dave Ramsey's website, over 650,000 families have completed FPU with amazing success. On average, they pay off $5,300 in debt and save $2,700 in just 13 weeks. That's an $8,000 change in position in just 91 days!

 

The attendees at the first MCC FPU class are no exception:

We had 46 MCC families complete the first FPU class that just ended in April.  As a group, they paid off $232,000 of debt and increased their savings by $178,000!!  That means that the average person paid off $5,043 in debt and saved $3,869.  That is a $8,912 change in position in just 91 days for each family.  It really works!!

 

The Old Schoolhouse magazine has just launched a new electronic book on being a work at home, homeschool mom called HomeWork: Juggling Home, Work, and School Without Losing Your Balance

ebook only $12.95

Are you looking to creatively supplement your family's income?
Would a home business even work for your homeschooling family?
Whether you are. . .

• Considering a new home business endeavor, or already working from home 
• Seeking creative ideas, or exploring opportunities that might work for you
• Wondering how to set up a home business
• In need of some inspiration, encouragement, motivation or advice from experienced home'preneurs who've been there
• Wondering how others manage homeschooling and homework and continue to smile

. . . this E-Book, HomeWork: Juggling Home, Work, and School Without Losing Your Balance contains the information and support you are looking for!
 
Packed with practical tips, encouragement, and advice, this wonderful, new resource from The Old Schoolhouse^® Magazine, will help you gain the confidence necessary to make wise

decisions concerning starting a home business or maintaining one, and combining it with your homeschooling adventures.

My friend, Katy, was the project coordinator and asked me to contribute a chapter. My chapter is titled "Keeping Finances Organized in a Work-at-Home Business."

To see the rest of the topics and a description of the book, click here:
HomeWork ebook

Since tax season 2009 has officially launched, I'll address a question I am frequently asked,

The simple answer is "No; there are no tax credits for homeschool expenses from the federal government."

The longer answer is "Maybe, depending on what state you live."

Several states have an educational tax credit. Iowa, Arizona, Minnesota and Illinois all have some sort of  tax break for individuals. The credit is available to any public or private school student, so it is not unique to homeschoolers. Florida and Pennsylvania offer businesses tax credits if they sponsor a scholarship.

This document has a chart of education tax credits and deductions by state (updated November 2008). Scroll to page 6 to see the chart.

http://www.house.leg.state.mn.us/hrd/pubs/feelaw.pdf

Home School Legal Defense Association has an explanation of some states' tax breaks or credits:

http://www.hslda.org/docs/nche/000010/200504150.asp

Homeschoolers can get creative and think perhaps they can start a business or a nonprofit organization of their homeschool activities and then deduct their expenses.  Ann Zeise of A to Z Home's Cool addresses these ideas:

http://homeschooling.gomilpitas.com/articles/031401.htm

To quote Ann:

You cannot contribute to your own child's K12 education and get any tax deduction for it, no more than if you sent him to a private school and tried to write off the tuition.

Carol Topp, CPA

"Digital image content © 1997-2007 Hemera Technologies Inc., a wholly owned subsidiary of Jupiter Images Corporation. All Rights Reserved".

This week's Carnival of Homeschooling is up and filled with great blog posts about homeschooling.

Carnival of Homeschooling: The Adventure Edition.  A wide array of posts to educate, inspire, challenge, and entertain you!  http://www.tiffanyblitz.com/blog/archives/651

 

I included a post on dealing with conflict in a homeschool group (or any group including your family).
Resolve Conflict. Take a PAUSE.

Happy blog reading!
Carol

I read a great story from Lebanon, PA on homeschooling and the use of homeschool co-ops. This statement sums it up:

Both Olsen and Panyard said one of the biggest misconceptions of homeschooling is that the kids don’t socialize. In fact, both said their kids are far from shut-ins.

“It’s such a misnomer to think that homeschool kids are at home at the kitchen table with mom. Most homeschool kids are part of some sort of homeschool co-op,” said Debra Bell, founder of Debra Bell’s Home School Resource Center at http://www.debrabell.com and author of The Ultimate Guide to Homeschooling.

Bell, a resident of Palmyra, said she has been involved in a number of co-ops in the area over the past 20 years. They are a very valuable resource to parents who homeschool their children, she said.

“I don’t think the general population realizes it’s something that’s been in place in the homeschool population for the past 20 years,” said Bell, who homeschooled her four children.

SBTV.com Small Business TV profiles an artist that turned her pottery hobby into a business.

Making a Hobby Pay in 2009

The latest Carnival of Homeschooling is up at Practical Homeschool.  Check out some great posts from all kinds of homeschool blogs, including a post from my other blog for homeschool leaders

Are you on the IRS’s naughty or nice list? Find out with Carol at HomeschoolCPA by reading The IRS and Fundraising.

Most of my small business clients operate micro businesses. What is a micro business?

• Sole proprietorship (one owner)
• No employees
• Low or no start up costs
• Frequently a service business with no inventory
• Home based to keep costs low
• Usually the first business a individual starts
• Sometimes a starting place to launch a bigger business
• Sometimes started for a specific financial goal such as a college fund for their children, a vacation, or to fund another business
• Run extremely efficiently-everything must bring in more benefit than it costs
• A wonderful learning experience!

Hard economic times are good times for CPAs.  Why?  Because its a good time to start a small business.

I've had three people call me for small business consultations in the past two weeks.  They are all sole proprietorships looking to start very small, one person service businesses. Two of them are homeschooling families! Here's some smart things that they are doing:

• Consulting with a CPA (me!) to understand record keeping, taxes, how to pay themselves and how to minimize taxes
• Consulting with a small business attorney about business formations (partnerships and limited liability companies) and contracts with others.
• Choosing a service business so there is no inventory to manage
• Launching a website for publicity
• Running the business from their homes
• Avoid hiring employees to keep costs down, paperwork down and to keep the business manageable in its early days
• Writing a business plan to think through factors that will determine their success or failure such as
  • Who will be your customers?
  • How will you reach your potential customers?
  • What price will the customer pay?
  • What profit do you need?
  • What are your expenses?

I run a home based tax preparation business form my home and  I meet with clients at my dining room table.  Do they like it that way? Or do I come across as "unprofessional"?

Bruce Katcher, Ph.D. president of The Discovery Consulting Group, Inc. writes that there are advantages to your clients of having a home-based business.  Here are a few advantages that he sees:

1) MORE TIME TO FOCUS ON THE CLIENT.

No commute!

2) AVAILABILITY

You are also more likely to be available to your clients when they call during non-business hours.

3) LESS OVERHEAD COST

Maintaining even a small office outside of your home is extremely expensive. The money you save can be partly passed on to your clients in the form of lower fees.

If you need to meet with clients, do so at their office. This saves them their valuable time.