The kids were quiet for 30 minutes, so naturally, I was suspicious. When I found them playing with our old Scrabble board, I was pleased. And then puzzled.

While there were a few recognizable words like “save” and “fat,” the rest of the board looked like alphabet soup. When I told them that “ryahoo” wasn’t really worth any points, they disagreed. Apparently, there were some new rules in play.

I didn’t stick around to see who won the game, but I give them both credit for changing things up a bit. After all, the old rules didn’t really work for my elementary school children. Kind of like the old financial rules don’t really work for, well, anyone anymore.

Taking the lead from my rule-changing children, here are a few old financial “rules” and my suggested updates.

Old rule: If you qualify for a loan, you must be able to afford it.
New rule: Don’t let someone else determine if you can afford a loan. You are the one responsible for making the payments, so you should decide if the terms are affordable.

Old rule: Homeownership is the American Dream.
New rule: The American Dream should be to live comfortably within your means. If that means homeownership, great. But don’t just buy a house because you are “supposed to.”

Old rule: Some assets always appreciate.
New rule: Some assets have a history of appreciating if you can wait long enough. Before you invest in a “sure thing,” think about the amount of time you have before you’ll need the money. You should have separate short-term emergency funds available so you aren’t forced to tap long-term investments when they’re low.

Old rule: Credit cards work as an extension of income.
New rule: Credit is a tool of convenience. Credit should only used wisely and always with a plan for payoff. Credit card interest should not be considered an acceptable part of your monthly budget.

Old rule: The country needs consumers to spend.
New rule: Paying close attention to your personal economy is good for you and the country. Consumer spending fuels the economy, but it doesn’t help anyone if you overspend.

Old rule: Keeping up with the Joneses is the cool thing to do.
New rule: Ignore the Joneses; they are probably in debt up to their eyeballs.

Are you a financial rule breaker/rule maker? If share your updated rules through the comments section, we might actually have a chance at winning the game this time.

We are so exicted to one of the sponsors for the upcoming Mom 2.0 Summit in Houston. In honor of the event, this week’s Blogging For Change posts will be by moms and for moms (& dads too)!

Ever wonder how your income taxes (and incomes) compare to that ritzy looking area down the road? This Web site allows visitors to search incomes and income taxes by zip code (granted the statistics are from 2006, but it could still be interesting!)

And while it’s been a tough year for many homeowners, some areas are actually seeing strong appreciation. Check out Forbes’ list of the most expensive ZIP codes in the US (90210 is #10).

Housing news has been so frequent and dramatic that I missed one interesting detail: the demand for rentals has increased. According to the Joint Center for Housing Studies, “with so much turmoil on the for sale side, many households have reconsidered their financial choices and opted to rent rather than buy.”

While homeownership is often touted as the American Dream, I agree that it is not necessarily the best choice for all Americans. Sure, owning a home can have its privileges, but there are some situations where it makes more sense to rent. Before you make a decision to purchase your own home, consider the following examples of situations where it may make sense to rent.

You have less-than-perfect credit. Unfortunately, not everyone qualifies for the best interest rates. Before you get locked in to a 30-year commitment, you may want to improve your standing by paying down debt and establishing a good credit history. Renting may give you the time to need to accomplish these goals.

You do not plan to be in your residence for more than a few years. The initial cost of buying a home is steep and may only be a good investment if you have the time to pay down some of your mortgage debt. Renting, on the other hand, does not normally require you to pay realtor fees or closing costs making frequent moves less costly.

You are not prepared for all the responsibilities of owning. Caring for a home takes a lot of time, energy, and money. When analyzing your situation, don’t forget to consider insurance requirements, home repair and maintenance needs, and association obligations. In contrast, maintenance costs are often included in the price of rent.

You cannot tolerate risky investments. As we have learned, we cannot assume that home values will rise. As a renter, the risk of ownership falls with the landlord.

Your money management skills need improvement. A home loan is probably the largest debt that most people incur and the decision to commit to this big-ticket item should be taken seriously. Since most people’s housing costs consume 20-33 percent of their budgets, you need to be certain you can continually meet this responsibility.

Finally, you can rest assured that your homework and preparation will help to enjoy your dream home—regardless of whether you choose to rent or own.