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How To Secure a Financial Future For Your Children

There are many ways that we can ensure that the future of our children is bright. We can teach them right from wrong, push them to pursue their passions and wants in life, and also make sure that they’ve got everything that they need to be the best version of themselves. While reaching these goals can take various forms, there’s one thing that can help more than most: securing their financial future. A solid financial footing in the world is one of the best gifts that a parent can give their child. But how do you do this? We take a look at a few tried and tested methods below.

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Get Wise 

Children pick up so much more from their parents than they (the parents) think that they do. You might tell your kids not to get angry and shouty, but if you’re an angry and shouty person, then the chances are that they will be too. The same can be applied to issues related to money, too. If you’re good at managing your money, then you’ll be setting a good example for your kids. So if you want your children to handle their money wisely, then first take a look at your own money habits. This will also prevent you from making the types of financial mistakes that can cause problems and derail your family’s future. 

Put Money Away

We know, we know: times can be tough, and it can sometimes feel like there’s just not as much money in the bank account as you’d like. It really is worthwhile finding some extra money to put away in a savings account for your children, however. Life is becoming increasingly harder for young people, and a lump sum of cash can really go a long way. If you start putting a little away each month now, then you’ll have a large amount to give them when they’re a young adult. They will be able to use this money to support themselves during an internship or take a trip, or whatever else they need to become the best version of themselves. 

Teaching Habits

You can’t expect schools to teach your children everything. You will need to fill in the blanks that the schools miss out. While the education system should educate children about financial matters, they don’t. Money is one of those things that, for various reasons, just isn’t discussed all that much in England, and this is a shame because we could probably prevent many people from making financial mistakes if we did. So talk to your kids about money. You don’t need to go into the ins and outs of your finances (unless you want to); it’s just about giving the basics of money management before they’re out there in the world on their own. 

One way to do this is to give them pocket money. They’ll have a certain amount of cash to last them the week or month, and once it has gone, it has gone. They’ll quickly learn the value in holding back on spending their cash on useless junk. They should also know about the help that is available to help them maximise their financial situation. This could involve teaching them about things like probate solicitors or personal injury attorneys, both of which are there to represent the person’s interests. The more they understand about the financial world and how it works, the more they’ll be protected from it. 

Securing the Future

You’re the one that’s in charge of your children’s financial future. And if everything stays as it currently is, then there might be no problem whatsoever. But where is written that everything will stay the same? Things are always in flux. As such, it’s important that you think about what they would do should something happen to you — this, of course, is not nice to think about it, but can push you to think about getting your affairs in order. You’ll also want to take a look at your insurance policies to ensure that it covers serious injury. If you’re unable to work, then the financial future of your children will look a lot less bright. Additionally, you’ll find that there’s a lot of value in setting up a pot of cash that’s to be used as a safety net. 

Conclusion

It really is worthwhile taking the time to make sure your children’s financial future is bright. It’ll give them a boost in a hyper competitive world, in which money and resources is king. 

How To Teach Your Children To Be Money-Conscious

You want your children to have the best qualities of you and your partner. Something that might be important to you as money. Now money should never be the thing that controls your life, but it will certainly help define what you do in it. So with that in mind, here are a few tips to teach your children in being more money-conscious.

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Show Them How To Budget

Children are never going to learn how to handle money, and many parents won’t even teach them until they’ve started earning money themselves. It’s also not something that many of us would learn about at school, particularly as it’s not always likely to be something within the school curriculum. Leading by example is important, and so it matters that you are budgeting your household income in order to show them when they are at an age to learn. It’s never too early to teach them about money. Earning pocket money for doing errands around the home is going to help them being grateful but to also know that hard work can be rewarding. 

It might be a good idea to let them see the family finances and that way, they can have an understanding of what they may need to know about going forward. Giving them an insight into a typical budget plan can be very helpful for their own in the future.

Warn Them About Loans And Borrowing Money

When you find a Swedish sms lån, it’s something that might come at the right time for you or your household when they need it. However, they need to remember and be wary of having loans and borrowing money in general. If they become too complacent with knowing that money is effectively free and available to borrow, that could be quite dangerous for those who enjoy spending their money a little too frivolously. So warn them about taking them out and that they should be used in emergency situations too. You as a parent are likely to want to know about financial situations that they’re in when they are young, so always tell them to approach you first for help. It’s better for your child to pay you back, rather than to a bank or loan shark

Encourage Them To Get A Job

When they’re of an age at which they could work, you should be encouraging them to do so. Being able to get a job will help them see and learn the value of money and what it does in their own life. Having savings is important and having a job can help them put some money into their account so that they are well provided for later on in life when they need it. It also helps them to live their lives to the fullest and to show them how money can influence the type of lifestyle that they may want in the future.

Teaching your children these important life lessons is very beneficial to give them the best start in life.

Explaining Business To Kids

Owning a business can be confusing at the best of times, it can be overwhelming at times even for adults, so if we are going to raise a generation of incredible business people, who have all the skills they need to hit the ground running, we need to help them understand exactly what business is and how to manage their money effectively. So how exactly do we help small children understand all about business?

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Photo by pan xiaozhen on Unsplash

Maths

A lot of children may hear the word business and automatically assume it’s all about the numbers and money, and since a lot of children don’t particularly enjoy maths it can be off-putting, but it’s essential to make sure children are enthusiastic about trying business. Many teens are making money currently from using their entrepreneurial skills already, so there’s nothing to say the smaller children can’t start learning the ropes as well, and as long as they know there are tools like corporation tax calculators to help with the tricky finance moments, then there will be less fear around business and what it entails. 

Roleplay

There’s a little bit more about playing ‘shopkeeper’ than having fun and spending £4675674 on a tomato. It teaches kids the very basics of business, it teaches them some skills surrounding sales, and it boosts their communication skills. The next time the pretend shop comes out why not show them how to put a little bit of savings aside for tax and make sure they know their objection handling skills too! Why not help them type a mini CV while you’re at it? 

Do what you love

Encouraging children to try everything they can and find the thing they love the most is a surefire way to put a child on the right path to success, business usually starts with a love for something or a passion, and often that ‘thing’ can be discovered as a child which saves a lot of time and energy later down the line. Of course, there’s no pressure, let them learn and discover new things at their own pace. But It’s also great fun and confidence-building to try new things out! 

Online Marketing

This is a big one, children must know about advertising and the many forms that it takes in 2019, most Youtube videos children watch these days will be making money for a brand or sponsored one way or another, so it’s great for kids to know what they are viewing may not always be as natural as they think, and that companies make a lot of money from toys sold via videos and adverts. It’s also helpful to show kids how that works in business as well, it gives them an insight into marketing, and depending on their age, it helps with realistic expectations too! 

Whichever way you decide to introduce business and how it works to your kids it’s essential to keep it light and age-appropriate, kids don’t need to know about the ins and outs of every detail in business, but they can certainly show an interest and get a good insight from an early age.

Helping Kids Learn About Money

Has there ever been a more important time to help our kids learn about money? Record levels of student debt, lack of financial education in schools, unconscious spending through apps and games plus the movement towards a cashless society are all compelling reasons.

Did you know that research has shown many of our values and beliefs around money are formed by the age of 7?
This means that as adults, our money decisions are being heavily influenced by the ideas we picked up as kids, whether helpful, or for many a hindrance.

The Financial Fairy Tales are a fun way to introduce money ideas and tools from an early age. Concepts such as saving, investment, budgets and entrepreneurship are explored though stories set in a fairy tale world.

The Financial Fairy Tales Patreon - helping kids learn about money
The first 3 Financial Fairy Tales stories and Activity Book

We have big plans for 2019 and beyond which includes 3 new story books, more learning activities and an animation series. Above all we want to help more kids around the world grow up with a better understanding of money by providing the skills, tools and beliefs which will empower them now and in the future.

How You Can Help

By becoming a supporter through Patreon, you can help us continue our work in creating these stories and learning activities. Patreon is a website and platform where people just like you can choose to support creative and artistic projects – whilst getting lots of cool benefits for yourself.

Visit the Financial Fairy Tales Patreon page and help us to help more kids learn about money.

Smart Parents Teach Their Kids These 6 Things About Money

One of our main jobs as a parent is to impart enough knowledge and wisdom to our children so they can not only survive in the world but thrive as well. Of course, in modern society, this means educating them on money and finances as well. A topic you can read more about below.

Spending more than you have is always a bad idea.

While our whole society seems to be built on the idea of borrowing money to pay for things that we could not afford to buy outright, educating your kids that spending more than you have on a consistent basis is a bad idea is crucial. This is because if you don’t, not only does it mean that they will get used to a lifestyle that is way beyond their means, but it also sets them on the slippery slope towards unmanageable debt.

Of course, this makes it an essential lesson that you kids need to learn about money. Luckily, it is possible to instill this wisdom in them from an early age by providing them with an allowance, and then encouraging them to save at least a portion of this each month.

Also, you may wish to encourage children to work and save for items they want, as opposed to buying everything for them. The reason being that this can also help them to get into the habit of raising the money before they spend it.  

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Installing a good work ethic in your kids early on can be a game changer.

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The is usually a way out of a financial jam no matter how tight it is.

Another valuable lesson that you need to impart to your kids is that there is nearly always a way out of a financial jam, no matter how serious it is. For example, there are many debt relief agencies out there that can help consolidate debts, something that means it’s much easier to pay them off at a reasonable price each month, which is knowledge that it is essential for your kids to know about, but not plan to rely on.  

Alternatively, there are also loans were someone else vouches for you and promises to cover the debt if you default. This can be hugely helpful if someone is in a financial fix, but their credit is poor. Of course, you will also need to remind your kids to shop around for the best apr guarantor loans and other financial products as well, as some will offer a lower interest rate and other benefits. Something that can make all the difference when it comes to being able to pay them back, and so could help your children have a better quality of life as well as get out of financial trouble if the need arises.

Saving is good, but investing is better.

Parents also need to emphasize the importance of not just saving money, but also investing it as well. In fact, it is hugely important to teach your kids about investing because no other action can allow them to increase their net worth in such a drastic way.

 

Sadly, even now the investment market has become much more accessible to the everyday person because of apps, and low management fees, few people realize the long-term benefits of this activity. Therefore It’s crucial to make your kids not only aware of all the investment options that are available to them including property, cryptocurrency, and futures but also educate them on how these platforms work.

Also don’t forget that as a rule investment is a cumulative process, and that means the sooner your children can begin on this path, the easier their financial future will be. Therefore be sure to explain and emphasizes the value of investing during their mid to late teens so they can get a jump on the competition.

Money doesn’t make you happy, but it can help.

It is also hugely important that as a parent you help your children to understand that money in and of itself isn’t what makes people happy. In fact, it’s the lifestyles, health care, and reduced stress that those with good finances enjoy that is the key.

What this means is that it’s crucial to delineated the quest for becoming rich and yet not spending any of this in ways that enrich life, and doing the opposite. Therefore, be sure to listen to your children’s opinion on what they want to do in their lives, in term of their career, and their goals, as well as who they want to be and adapt your financial education to this.

After all, just recommending that all you kids go into high paying finance positions is a one size fits all solution that is unlikely to work for most people. In fact, at worst it can land your kids in a career that is unfulfiling, even cause them to resent you for pushing them in that direction in the first place.

Monitoring spending is a task that needs to be done regularly.

It’s likely that as a patient you will make an effort to teach your kids that they need to wash up after they have cooked and eaten a meal and that the need to change their socks and underwear each day. However, it can be all too easy to forget to teach them that monitoring what has been spent each day should be a regular task as well.

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In fact, by establishing this as a part of their daily routine, you give your kids the tools to much better monitor what is happening with their finances. This can help them make improved buying decisions, avoiding impulse buys, and stay out of debt. All things that mean this small daily task can have a considerable effect on their financial well-being through the entirety of their life.

Finances don’t have to be confusing.

Lastly, it’s incredibly important that you teach your kids that correctly managing their money and budgeting doesn’t have to be complicated or confusing. In fact, sometimes the simple systems can work much better not only because they are clearer to follow and stick to, but also because they make dealing with financial matters a lot less intimidating. Thus making this final lesson one that is also crucial to impart to your children.