Money Manners

I was talking to an acquaintance of mine-recently-when the woman mentioned that someone had recently asked her how much money she earned. My mouth-agape-revealed how shocked I was. A few days later, a coworker shared her story about a group of friends that had agreed to purchase one substantial wedding gift-rather than several small ones- for their mutual friend. Unfortunately, two of the individuals never contributed to the gift fund, even though they signed the happy couple's greeting card.

So, what can you do about such awkward money situations? Here are five sticky situations that you can easily finesse.

1. If someone — other than your spouse or your financial advisor — asks how much money you earned in 2010, it may take some restraint to respond with, "Only my CPA knows," but it gets the point across without any added emotional stress.
2. You're responsible for organizing a coach's gift (0r teacher's gift) and every family is supposed to contribute a small amount. Three families failed to participate. What will you do? One idea is to send out a gentle reminder to the entire team, thanking those who have already contributed and kindly stating that while you know everyone is busy, you look forward to receiving their contribution as well. After all, it is a team!
3. If you borrow money, do you need to pay it back? YES! Someone loaned you money. However, if you lend money to anyone, do not expect it to be returned to you. It is absolutely imperative that the money you loan to someone else will not impact your lifestyle, so be sure to ask yourself that question before you write the check or transfer the funds.
4. When should you tip for good service? Tipping is standard in our society-it is usually a portion of a service provider's hard earned wages. When service is adequate, tip the standard amount-usually close to 15% in restaurants.  When service is exceptional, tip exceptionally-20% or more. Don't we want to offer incentives for exceptional performance in everything?
5. And, be sure to teach your children well. Most likely, they aren't going to learn about money manners in school, and you won't necessarily want them to learn this from their friends, so be a good role model and educate them about money matters and money matters.

Remember, it starts at home!