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.

 

Moving House: The Affordable Approach

If you and your little ones are planning a big move this year; it’s important to keep things as stress-free and as affordable as possible during each step of the way. Your kids are like sponges, and they will no doubt be absorbing your approach to spending and saving as you navigate through the property selling and buying process. There will be far more than simply exchanging the money needed for your next home, and receiving whatever you can for your current abode, so it’s worth a little extra effort when it comes to preparing and planning ahead.

A happy and straightforward moving process is something that you can get the whole family involved in. They’ll learn a little about each stage of selling and buying, and the work that goes into a successful moving day, so don’t be fearful of explaining what is happening to them. If there are particular financial consequences to certain actions, especially positive ones; share and explain them so that you can instil some great values and knowledge surrounding the cost of moving house, property, and real estate in general. Who knows; you might just spark an interest in a budding property tycoon of the future! The following are some things to consider if you’re about to pop up the for sale sign and want to save cash where you can as you’re heading out on your exciting property adventure together.

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Research And Sourcing

If you head towards the first estate agent or property legal team that you see; you’re unlikely to be able to save much money at the beginning of the process. However, doing some thorough online research, and sourcing more affordable options to suit your family, will ensure that the process doesn’t leave you broke. Therefore, it’s worth checking out some conveyancing quotes online as a starting point, and you can figure out the extra cash you’ll need to put aside to pay for everything. There are also options to sell your own home now, which will get rid of hefty agent fees, so that’s another area to consider if you’re willing to put in the work. You’ll need to balance what’s most important to you and your family in regards to time, money, and effort along the way, so the sooner you get started, the better.

A Bit Of DIY

The do it yourself approach will save you money throughout selling and buying a home, and the process of moving along the way. Therefore, it’s worth figuring out what you’ll be able to do without hiring anyone to help. If a survey comes back on a house that needs crucial renovation, rewiring, or a multitude of other work; work out if you’d be able to fix any problems yourself before moving day rolled around or as soon as you all moved in. In regards to removal costs; you could consider the packing process as soon as you know you’re moving and renting a storage unit near your new home so that you can do the majority yourself. Again, it’s about weighing up what will cost more time, money, and effort than you’re willing to spend, and going from there.

Healthy Money Attitudes To Teach Your Children

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When it comes to passing on lessons to your children, most people think about manners, temperance and sensibility take priority. Not many of us consider it important to teach a young teenager about money matters in depth, or to begin a structured approach to gifting them a monetary mindset.

While this might seem like overkill from a young age, it can be very helpful for their development. We often keep habits we are taught from a young age. If you were ‘forced’ to make your bed upon waking as a child, it’s likely you’ll keep that habit for the rest of your life.

If you were brought up in a clean and tidy household, you are much more likely to value organization and tidiness in your living area as an adult. By this logic then, teaching our children from a young age about money, making them comfortable with it and feeling responsible for it, can help them make great financial decisions early on.

We’ve collected some fantastic tips to teach your children from a young age, and examples you can use to relay this information in an understandable way.

Money Is Dynamic

The ‘hoard’ mentality can harm someone over cautious with their budgeting. Sometimes purchasing quality over quantity is important, so long as it’s coupled with a sense of temperance and patience. Depending on the age of your child, you might illustrate this by taking them around two separate toy or video game stores.

In order to gain the best video game released that week, suggest they sell two of their older games, or that this will be their only game you buy them for a period of months. Show them that money is dynamic, and it’s okay to spend. But also back that up with foresight, and a budgeting timeline. Demonstrating this with a product they are interested in receiving will teach them the value of financial compromise, despite money being healthily spent.

Every Dollar Has Value

Of course, the value of one dollar is, well, one dollar. However, teaching your children every dollar has value is important. Teaching them every dollar has value could be illustrated by incentivising their chores. If you allow your child to wash your car for $15 every week, consider adding a bonus $5 if they vacuum the internal seats and carpets. This shows them how effort translates into money, and how sometimes it’s worth applying effort to gain more and becoming more secure. One other way to best exemplify this is to teach by osmosis. If you have debts yourself, the child will often figure this out – especially if you’re stressed about it often. Using debtconsolidation.loans and showing them a surface, illustrative only budget to show what percentage of your income is being applied to a singular debt payment, they will see that careful financial planning and always counting the dollars to the minutiae of their accounting prowess has benefit.

With these tips, your child should hopefully be introduced to financial planning, temperance and a healthy attitude to spending. As they move into the world and gain their freedom through work or college, they are much more likely to make sensible purchasing decisions.

Help Your Child Achieve Their Dream Home By Teaching Them How While They’re Young

It’s never too early to start teaching your children about money. In fact, the sooner you start, the more likely they are to find financial security in later life. Having money awareness from the off will allow them to make stable life decisions. Most parents want their children to get all their dreams. This includes their dream home. Mistakes made early in life can stop that happening. Help your child make the right moves to ensure they get the home of their dreams when they’re older.

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THE IMPORTANCE OF HARD WORK

Teaching your child the importance of hard work is the first step in ensuring they achieve their dreams. When you’re young, it’s hard to take education seriously. Encourage your children to take responsibility for their learning. The better they do at school, the more likely they’ll be able to afford a house when they’re older. Encouragement is easier said than done. Helping your children realise their dreams will go a long way towards giving them an incentive. Remember that your dreams might not be the same as theirs. Take a step back and help them realise what they want. Have conversations about the future and see what their plans are. Children can get carried away. If they go off on a tangent, try to bring them back to the considerations they’ll face down the line.

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HELP THEM CHOOSE A CAREER

When you’re young, you’re asked to make the biggest career choices in your life. It seems strange when children rarely know what they want to do. Choosing the wrong subjects at school and college can hold your kid back. It can even stop them getting what they want. Without that good paying career, they’re unlikely to get the million pound mortgage and dream home. Again, be sure to let your children make their own choices here. The best thing you can do is make sure they’re aware of their options. It might help to show them what problems the wrong choices can cause. Give them an idea, too, of the financial situation each career choice would land them in. Children and young adults often make decisions based on what their friends are doing. Make sure your child knows which jobs offer the best future and makes decisions based on that.

TEACH THEM THE IMPORTANCE OF SAVING

Even with a high paying career, your child won’t be able to achieve that dream home without some savings. Teach them about the importance of savings from early on. If they receive pocket money, it’s worth limiting this. A smaller amount of pocket money each week will mean that they have to save up for the things they need. Financial knowledge is the whole point of pocket money, after all. Without starting early, your kid is unlikely to be able to afford a deposit or mortgage. Talk to them about your saving process, and what it has helped you to afford. Show them, too, what they could achieve with substantial savings behind them.

New Money Book For Kids – Getting Rave Reviews

Troll Bridge cover - Money book imageThe Troll Bridge is the latest release in the multi award-winning Financial Fairy Tales series of children’s books.

The series helps explain money ideas and principles to children at a young age with a view to developing positive values and habits such as saving, responsibility, making money grow and entrepreneurship.

“To capture the imagination of children and give them an understanding of modern life within a story is fabulous. I look forward to reading more Daniel Britton stories to my family”- John Whiteman, Business Troubleshooter & author of 9 Days To Feel Fantastic

The Troll Bridge is a fun and innovative way of looking at why we pay our taxes. Everyone and everything crossing the bridge has to pay the troll. Everyone accepts this until a young boy starts asking why.

The Troll Bridge is released on Wednesday May 7th – look out for exclusive launch day offers and bonus materials!

“Often parents struggle to teach their children about money. Well – problem over! Dan’s Financial Fairly Tales are a brilliant way to introduce children to money concepts. All wrapped up in wonderful stories.” Elizabeth O’Shea, Parenting Specialist at Parent 4 Success

Just for fun, I’ve made a series of 3 videos – please take a moment and vote for your favourite. You can also leave comments below and share with your friends on Facebook and Twitter.

Video 1

The financial Fairy Tales: the Troll Bridge

Video 2

The Troll Bridge preview

Video 3

The Troll Bridge