Many people want to make sure they are providing for their children as much or more than their parents provided for them. While you don’t want to give to your children blindly, you would like to make sure you are raising your children to be conscious about money and financial matters.
Paying a regular allowance is a hotly contested topic. Should you pay a regular weekly amount or just pay your children for chores around the house? There is no reason you can’t do both. Providing a regular allowance can offer your child a sense of independence and understanding of money. However, you don’t have to give them too much and you can also pay them extra for certain chores, like mowing the lawn or extra cleaning around the house.
You don’t have to share every detail about your own personal finances (for example: I can’t believe my credit card bill is $3,000 this month!) but you also don’t want them to grow up completely ignorant about money. If you have a new job and want to watch expenses, this is something they ought to know. You can also share with them how much the grocery bill costs or how much the movie ticket costs but they don’t need to know how much the mortgage payment is every month.
A common used technique in parenting is giving children choices. This can be applied to money matters as well. A great example is a child’s birthday. You can offer them a big birthday party or a special gift (like a new bike) but not both. They don’t need to know the actual costs, but by becoming more involved in the process, they learn how to prioritize their financial decisions.
Teaching your children about the concept about saving is especially important. Once they start getting a regular allowance, you should encourage them to save a portion of it for special occasions. They may not do it, but where else are they going to learn about it? Once they get old enough (at least 8 years old), they can also learn the basics of investing with some fun games or children focused mutual funds. Junior Achievement offers some wonderful programs in elementary schools. At the same time, you can also introduce contributing to a charity. They can either give through their own money or you can give them a certain dollar amount and let them choose their own charity.
When they reach high school age, there are basics concepts of personal finances that should be taught. These include putting a budget together, balancing a checkbook, and the concept of time value of money (for example, interest growing in a savings account). These are all invaluable lessons they will apply for the rest of their lives!
Love And Money
Love and money don’t always go hand in hand. It can be the cause of countless arguments especially since most of us have different money styles. However, with a few guidelines to promote better money communication, money can become a source of joy within a relationship rather than a stress inducer.
As with most areas of our lives, a healthy relationship is built on open communication. The financial part of our relationships is no different. This means that both of you need to come clean about what you owe, your credit report, your spending and your income. Be honest, because it will eventually come out. If you haven’t already, run a credit report together. Do you know your partner’s financial goals and investing styles? Some questions to ask include: Does your hubby want to save for the beach house while you are squirreling away for the long-term care insurance policy? Are you a risk taker and is your partner conservative? Is one of you a spender and another a saver or a worrier? If you don’t know the answers, find them out! This will affect your spending, saving for retirement and investing and you want to make sure you meet in the middle.
It is perfectly natural that you and your husband will have different styles. The challenge lies in merging them. If you keep your accounts separate, you can start by opening a savings account together. Each of you can contribute a pre-determined amount every month and the account will have a purpose (i.e. vacation, new furniture). While you are at it, schedule a money date with your partner on a regular basis. Bring a bottle of wine and get together when you are both not angry and upset. After a while, you won’t need to make it so formal and you will find yourself looking forward to conversations about your finances. If you are constantly fighting about the bills, here are some suggestions on changing that dynamic in your relationship. Put your bills on autopilot. Unless you have tons of free time (if so, I'd like to meet you!), it gives you one less thing to talk about on your money date night! In your relationship, does just one of you pay all the bills and take care of the finances? Switch places for one month. See what happens.
Very often, money becomes a source of contention within a relationship because we are used to doing things a certain way and aren’t communicating properly. By including money matters as part of your regular conversation, you will start seeing more financial success in your relationship!
As with most areas of our lives, a healthy relationship is built on open communication. The financial part of our relationships is no different. This means that both of you need to come clean about what you owe, your credit report, your spending and your income. Be honest, because it will eventually come out. If you haven’t already, run a credit report together. Do you know your partner’s financial goals and investing styles? Some questions to ask include: Does your hubby want to save for the beach house while you are squirreling away for the long-term care insurance policy? Are you a risk taker and is your partner conservative? Is one of you a spender and another a saver or a worrier? If you don’t know the answers, find them out! This will affect your spending, saving for retirement and investing and you want to make sure you meet in the middle.
It is perfectly natural that you and your husband will have different styles. The challenge lies in merging them. If you keep your accounts separate, you can start by opening a savings account together. Each of you can contribute a pre-determined amount every month and the account will have a purpose (i.e. vacation, new furniture). While you are at it, schedule a money date with your partner on a regular basis. Bring a bottle of wine and get together when you are both not angry and upset. After a while, you won’t need to make it so formal and you will find yourself looking forward to conversations about your finances. If you are constantly fighting about the bills, here are some suggestions on changing that dynamic in your relationship. Put your bills on autopilot. Unless you have tons of free time (if so, I'd like to meet you!), it gives you one less thing to talk about on your money date night! In your relationship, does just one of you pay all the bills and take care of the finances? Switch places for one month. See what happens.
Very often, money becomes a source of contention within a relationship because we are used to doing things a certain way and aren’t communicating properly. By including money matters as part of your regular conversation, you will start seeing more financial success in your relationship!
Does Your Bank Love You?
Banking is such an integral part of our daily financial life. Yet, most people don’t take advantage of the benefits their bank can provide. In addition, you may be spending too much in fees that can be eliminated and are costing you hundreds of dollars a year.
Let’s start with the ATM. While the convenience is undeniable, the ATM can also be the source of wasted money. If your bank does not have an ATM near your home or office, consider changing banks. At the same time, manage your ATM visits. Plan how much cash you will need on a weekly basis and don’t visit your ATM more than once a week. You will actually have more money left over at the end of the month.
Even if you are someone who is already banking online, are you taking advantage of all the features online banking offers? For example, you can setup automatic payments to prevent late fees and use this feature to pay down your mortgage faster as well. Even if it is only $25 or $50 a month, you are building equity faster. The main reason online banking is so useful is that you will become more organized. You will pay your bills in much less time, know what checks have cleared, be as up-to-date on your current balances and manage more than one account. Any tool that saves you time and gives you more control over your money is a must-have. If you tend to pay your bills late, this will also help you because you can setup recurring payments. Try paying your bills every week; it should only take you ten minutes. You will never pay bills late anymore and have much more peace of mind. If your bank charges for online banking, it’s another reason to change banks.
Scared of Identity Theft? This is the future and it is where we are going. In fact, by banking online, you are more aware of your balances and any unusual activity in your account. Stay with a large FDIC insured bank to protect yourself as much as you can.
On a personal note, introduce yourself to your bank manager; you never know when you might need that extra help. Even in today’s high tech society, we all appreciate that personal touch. However, your bank might not serve every need in your financial life. Think twice before buying investments from your bank. It may not be the best place to do so as their fees are traditionally higher than no-load mutual funds.
Let’s start with the ATM. While the convenience is undeniable, the ATM can also be the source of wasted money. If your bank does not have an ATM near your home or office, consider changing banks. At the same time, manage your ATM visits. Plan how much cash you will need on a weekly basis and don’t visit your ATM more than once a week. You will actually have more money left over at the end of the month.
Even if you are someone who is already banking online, are you taking advantage of all the features online banking offers? For example, you can setup automatic payments to prevent late fees and use this feature to pay down your mortgage faster as well. Even if it is only $25 or $50 a month, you are building equity faster. The main reason online banking is so useful is that you will become more organized. You will pay your bills in much less time, know what checks have cleared, be as up-to-date on your current balances and manage more than one account. Any tool that saves you time and gives you more control over your money is a must-have. If you tend to pay your bills late, this will also help you because you can setup recurring payments. Try paying your bills every week; it should only take you ten minutes. You will never pay bills late anymore and have much more peace of mind. If your bank charges for online banking, it’s another reason to change banks.
Scared of Identity Theft? This is the future and it is where we are going. In fact, by banking online, you are more aware of your balances and any unusual activity in your account. Stay with a large FDIC insured bank to protect yourself as much as you can.
On a personal note, introduce yourself to your bank manager; you never know when you might need that extra help. Even in today’s high tech society, we all appreciate that personal touch. However, your bank might not serve every need in your financial life. Think twice before buying investments from your bank. It may not be the best place to do so as their fees are traditionally higher than no-load mutual funds.
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