What They Don’t Teach Them In School

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Getting your children to learn the importance of money can be one of the most valuable things that they will ever be taught. Unfortunately, schools around the world still are not grasping on to the idea that the more knowledge we impart about the world of finance for when they reach their adult years, the more that children will take on board and be able to utilise it to their own advantage with the next generation. With that in mind, what are the top three things that we need to be teaching our children now, while the time is right?

Save Carefully

It’s hard to expect a child to be able to save all of the money that they receive, but there are good incentives to set for them to want to do it. Paying them for simple jobs around the house such as loading the dishwasher and sweeping the leaves from the front lawn will teach them that they have to work hard for what they receive and rewards come alongside this work. Taking care of their money for them, or at least giving them the option of you taking care of it, will see you acting like a bank. Even teaching them the value of getting loans from New Horizons or other such lenders can help them appreciate just how far money gets people. Let them see the importance of watching their money grow and learn for themselves just what they are able to purchase with it. They may even want to open their own bank account if they haven’t got one already.

Consider Your Options

Teaching your children actions to their consequences is hard when they aren’t fully aware of what options are available to them. For example, they could put their money into saving accounts, ISAs, bonds – there is a wealth of choices available to them, and most adults don’t even know a good enough amount about them to warrant a good explanation. It can be something that you can learn about together; you may find that you are stashing your money in the wrong place when you find out about what the best option for your child is. It’s all one big learning curve that doesn’t stop as you get older – you are simply just more aware of what’s available.

Make Good Choices

What’s good and what’s bad when it comes to money? Live off of your own experiences and recall them to your children. You know where you will have made some bad choices in the past, but children are best taught from your own experiences rather than you trying to explain what might happen. Think of it as taking a history lesson from somebody who has gone through the actual event – a bit far fetched, but the sentiment is still the same. Or, if you know what path you should have gone on to get yourself in a financially sound position, try and guide them along the one that you know that you should have taken. Our children may not be taught how to make financial decisions in school, but they can learn from us and what we have picked up along the way.

Tips on Teaching Children About Money

Children tend to think that money grows on trees. Most children can’t walk through a shop without asking if they can have something. A simple ‘no’ may result in a meltdown if you have an infant in the family. It’s all part and parcel of parenting, but so is teaching your child about money. There will come a day when your children will have to know that you work hard to give them what they have and that the value of money is important. So, how do you teach a child about money?

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Let Them Handle It

As your child gets old enough to do sums, let them handle money. Use the money to work on their mathematics skills at home. You’ll be surprised how a jar full of pennies can occupy a child. You may also want to let them calculate what they spend when you’re out shopping. For instance, if your child has birthday money to spend, ask them to stay within their limit by adding up the cost of their items. You can also ask them to pay at the till and wait for any change.

Give Them a Goal

If there’s a particular toy your child wants to buy, ask them to save for it themselves. As parents its an instinct to provide your child with their needs and wants, but it’s a valuable life lesson. Offer to give your child pocket money in exchange for good behaviour, completed homework and completed chores. Agree on an amount per week and let your child work out how long it will take him/her to save for what they want.

Explain Bills

Unless you explain it, your child may not realise there’s such a thing as an electricity bill. Children have a habit of leaving lights on, wasting water and leaving the TV on when no-ones watching it. If you explain that every time they put a light on it costs money, they may think twice about doing it. You can also save money by switching energy providers. You can compare energy providers at Selectra energy comparison specialists.

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Teenage Spending

As your children get older, their wants get more expensive. When your children turn sixteen, encourage them to get their first job and save for the things they want. That may be their first car which could be the most money they’ve ever spent. Teach them how to budget their money so they have money left over to save and put towards a reliable car. Here are some of the best new cars for first time drivers.

Be Open

Remember the old chestnut, ‘not while you’re living under my roof’? Past generations didn’t tend to explain why they had to say no. If you haven’t got the money to buy something your child wants, tell them why. Explain that your money has to go towards higher priorities. They won’t always understand but giving them a reason is better than telling them that you know best. They’ll thank you for being open and honest in the long run.

3 Ways To Inspire Your Child To Make Good Financial Decisions Through Life

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Time spent educating children is time that is never wasted. Unfortunately, despite school teachers and the school faculties best intentions, it’s difficult to fit in every lesson at school that it takes to become a responsible, sensible person in later life . Kids have a lot to deal with, not only growing up and coming to terms with their identity, but also increasing levels of responsibility as the years pass on.

Filling your child’s head with knowledge is fantastic, and will surely help them in later life. But giving them guiding principles to live by through inspiration and demonstration is more valuable than anything you can tell your kids. So how do you kindle this burning fire of curiosity that children seem to so naturally emanate? Here is a list of 6 different methods you can use to not only teach your child or pupils positive life lessons, but to bond with them as well.

  1. Take an interest in them.

Kids are naturally attention hungry, especially from those they rely on. If you water them with this special ingredient of available openness, listen to what they’d like to achieve in life, and stimulate a few ideas based off of what they say, you can really open their mind from an incredibly young age.

For example, let’s say your daughter says she’d like to ride horses and play with ponies all day when she’s older. Perhaps you could suggest she’d like to be a vet, and help all animals who are poorly feel better! Or perhaps she’d like to open a sanctuary for horses and donkeys. Sit back and watch as her eyes widen with excitement. Keep this up and she’ll start believing she can do anything, which, of course is absolutely true.

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  1. Help them envision their future life.

Helping a child envision their future life is something that is immensely beneficial to opening up their horizons. Of course there’s no need to come to concrete answers, and this exercise should be fundamentally fun. However, sometimes it’s great to stimulate their imagination. For example, you could ask what sort of pets they’d like as an adult, what countries they’d like to visit, or you could go to a website like Pink Realty to give them an idea of the house he or she would like to throw family parties in one day.

  1. Show them the benefits of saving money.

Kids are impulsive, and most adults are too. It’s a good idea to show them, through subtle, unintrusive ways, the best way to manage money effectively. You don’t have to sit them down and teach them the finer methods of understanding balance sheets, but perhaps giving them a small allowance to earn (if old enough,) and letting them spend it once a month only will teach them the value of saving in order to acquire higher value items, or replacing items they didn’t think they lost. You can also tell them in a way that will make them proud of you how your savings have helped you pay for unexpected bills etc, and they will slowly (hopefully) start emulating your habits in their teenage and young adult years.

These three combined steps will not only help your child begin good habits in a way that will bring you closer together and give them a slight understanding of how you run your family, but they will desire to emulate you. Kids are impressionable, so make sure to use this to their advantage.

This will hopefully provide the correct attitude that will stop them making big mistakes in adulthood. You can be sure then that you’ve covered at least some of the bases your tough job of parenthood requires you to address.

Teach Your Kids About The Online Property Market

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If you are in the process of moving house, this may be the perfect opportunity to teach your kids about an important phase that they are likely to go through later in life. A house is the biggest financial investment most people make, and selling it is a process that can be a complicated affair.

While they are learning about the financial aspects of house sale, they can also discover the different ways to improve the chances of it being sold quickly. Just as the internet is revolutionising so many parts of life, it is also doing the same to the process of selling a house. Here are just a few of the other ways that the internet has changed the housing market.

Research Online

Before people do anything these days, whether this is going out for a meal, heading out to the movies or buying a house, they are likely to research it online. Properties that are more difficult to find online are significantly less likely to get many viewings. It’s also likely to be time saving as people are able to view pictures before they actually decide whether or not they want to visit the property. You can even make a video that gives a virtual tour to give an extra personal touch.

If you are in the process of selling your house, show your child how your house is listed online and explain to them the value of it compared to different houses in your neighbourhood. Property prices are a tricky thing for anyone to understand, so the earlier you teach them, the better.

Real Estate on the Web

Certain companies are now offering online services that are providing a challenge to traditional real estate brokers. Companies like Doug Hopkins are now able to showcase their services through an online portal.  As the internet continues to move at warp speed, it is likely that these services will continue to increase in number. This is being seen as a way to massively reduce fees, but of course there are numerous pros and cons to this approach. It’s worth running over all of these with your kids as when they get round to buying and selling houses, it’s much more likely that the internet will be playing an even bigger role.

Communication

There are so many different ways for house buyers and sellers to get in contact with each other thanks to the internet. Whether this is just making small enquiries or actually putting in an offer, buyers and sellers can stay in touch like never before. When you are getting in touch with buyers, keep your kids in the loop so they know how things are developing and the types of questions that are likely to get asked.

In the future, the internet is likely to play an even bigger role in the property market. If you get your kids involved from a young age, they are more likely to have an advantage when the time comes for them to get on the property ladder.

Financial Life Lessons Every Parent Should Teach Their Children

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People say that knowledge is power, but what if you don’t posses the knowledge you need to succeed? The unfortunate answer is that you won’t succeed, at least not to the level that you desire. If that is a scary thought, it gets even scarier when you apply it to your children. Every parent wants their kids to lead a happy and prosperous life, so every parent needs to impart wisdom along the way. There are some things that they don’t teach at school, and that is where you step in and fill in the gaps. Finance is probably the best example, which is why you’ll find the best financial tips to teach your kids below.

Wait For The Right Moment

Kids are impulsive and want everything as soon as possible. Hell, there are a lot of adults that fit into that category too. But, there is a problem with this way of thinking: it leads you to make financial mistakes. Have you ever wondered why some people are in mountains of debt? The easy answer is that they have bitten off more than they can chew. Of course, everyone wants nice things like a car or a house, but they shouldn’t come at the expense of a family’s future. The sooner children learn they have to wait, the better the decisions they will make with in the future.

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Don’t Be Scared Of Big Decisions

The big decisions aren’t ones to fear; they are ones to cherish. The great thing about making big decisions is that they often have the biggest rewards. Take buying a house as an example. To buy one, most people need to take out a mortgage. Since the crash in 2008, the term mortgage isn’t one that fills people with trust. In fact, lots of people think that a mortgage is a bad idea. The truth is that a mortgage is essential as long as you understand it inside and out. Nowadays, that is a lot easier to do when you go online at CalMtg.com and other mortgage professionals. With the right amount of patience and confidence, your children’s finances will never be in doubt.

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Save, Save, And Save Some More

Okay, so it isn’t a great time to save especially now interest rates are lower than before. Still, there will come a time when they will rise, and your children will want to take advantage. Although spending is more fun, saving is the practical option. It is the financial tip that will ensure your kids will always have money for a rainy day. Excuse the cliché, but it is true. Parents can’t always bail their kids out when they are in too deep, and kids need to learn this important life lesson. Putting away a little every month is a great way to create a buffer, and if it doesn’t come in handy they can spend it on a holiday.

The above is only a small glimpse into the big bad world of finance. Even so, a little bit of knowledge can go a long way.