How to Teach Your Kids to Handle Money Effectively

Do you have kids who spend money like crazy? It is not yet too late to teach them how to manage their money effectively regardless of their age. As a parent, you just have to be determined to teach them financial skills from which they can benefit for the rest of their adult lives. So, how do you start with this? Here are some ideas.

Introduce piggy banks - Instead of buying the toy they want from your spare money, encourage them child to save up in a piggy bank. Use the toy as their goal for saving up. This will teach them a lot of skills and virtues as well like delayed gratification, patience, self-control, frugality, planning and budgeting.

Teach your kids the value of earning their own money - When they get older, kids cannot spend their whole lives depending on you for their needs and financial problems. Is there a chore that they are capable of doing after school hours or during weekends? Encourage them to accomplish those chores regularly in exchange for a few dollars. You can also recommend them to your friends, co-workers or churchmates who might need babysitters or helpers for the day. They can gain confidence about earning money on their own through this.

Open a savings account for your kids - Open an account for each of your kids with the least amount needed. Teach them that their bank accounts are for saving money for future expenses. With the money that they're able to save, they can buy their first car or pay for their college tuition. Instruct them to deposit a part of their earnings in their bank accounts, but it will be better if you model it in front of them too.

Talk about money with them - Well, you don't have to let your kids know everything about your money or personal earnings and savings. Just give them an overview about your family's monthly expenses and budget. This will open their eyes to the reality that they can't buy just anything that they want and to prioritize the things they need to spend on.

All You need to Know About Borrowing Money from Family

Borrowing money from family and friends can be a perfect solution, but be sure to look at the pros and cons of this approach. Before you join the bandwagon, review first this short list of its advantages and disadvantages. The Pros Flexible Terms: Unlike other forms of traditional finance, funding from family and friends is typically offered on flexible terms. Friends and family may agree to a longer repayment period and may seek a lower rate of return than traditional lenders. On a practical level, little or no security is required and the repayment can be tailored to your financial projections. Minimal charges: One of the greatest advantages of borrowing money from friends and family is that the funds are offered at little or no interest. As a start-up or loss-making company, the interest rate charged by traditional lenders can be very high. Easy to set-up: On a personal level, the family member or friend already knows your ethos and business circumstance and so are less likely

How to Free Yourself from the 'I'm Poor' Mentality

Financial fears prevent you from taking financial risks, accepting new opportunities and making monetary decisions. They interfere with your financial security and freedom and hold you back from achieving financial success throughout your life. Start Saving Early - You might have to live paycheck-to-paycheck when you start your career. However, you can start saving a small amount of money every month and put it in your savings account. Come out from the Fear of Debt - While it may seem impossible to resolve all your debts, you can grow a large savings to cover your unexpected expenses and put down more cash while borrowing. Look for Affordable Housing Options - Go for smaller and affordable housing options so that you have enough funds to cover other expenses. Grow a savings and diversify your investment to afford a house. Build an Emergency Fund - You can overcome your fear of losing your job by building an emergency fund. You should save 6-8 months of earnings in your em

Successful Trading Guideline: Effective Rules To Follow

While loss is part and parcel of the risks that comes with trading, it can be reduced to a minimum and make investments manageable. No matter how big your trading account is it can be managed well if you have a reliable set of rules to follow. These rules are usually included in a trading plan. A trading plan tells you when to enter, exit and manage your investments.You can create your own plan by getting ideas from other traders. To see how it is going to work, you can do some backtesting before spending real money. Besides following your plan up to the T, it is also important to treat trading as a business and not just a hobby. Thus, you must put your mind and heart into it. Spending less effort and time on it can take all your investment down in the drain. Think of yourself as a business owner. Ask yourself every time what a business owner must do to keep his company thriving and so that your efforts wouldn't go off the track. As you need to be focused on your trading, utiliz

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