How to Teach Your Kids About Finances

How to Teach Your Kids About Finances

We all want our children to have happy and productive lives, so we try to give them the tools they need to navigate life. For the most part, we focus on things like making sure they’re well-educated, polite, and healthy. These are all important, of course, but they’re not all-consuming. If we don’t teach our children about finances from an early age, then we run the risk of them ending up like the majority of other Americans: which is to say, in a poor financial state.  Check out a few ways you can teach your kids about how to handle money the correct way.

Patience and Money Go Hand in Hand

Wouldn’t it be nice to be able to afford whatever you wanted? There’d be no reason to budget, save up, no reason to wait whatsoever. But also you’re one of those rich and famous folks, then this isn’t realistic. We need to be patient, and slowly build up the cash we need to buy stuff. As such, one of the best things you can do for your kids is teaching them the link between being patient and getting what they want. If they need to save their pocket money before they can buy a game, they’ll have learned a valuable life lesson.

Be a Role Model

Our children learn much more from us than we think, and sometimes more than we’d like. They don’t just learn what we teach them vocally – they learn from our actions too. If you practice bad financial habits, then the chances are they will too. So take steps to get your finances in order. You can learn how to get out of debt fast, set a monthly budget, avoid impulse spending, and so on. You’ll be helping your long-term finances, and being a positive role model for your children at the same time. Nice!

Let Them Make Their Own Mistakes

It’s all good and well telling our children not to make financial mistakes, but that’ll only help them to a degree. Experience is the best teacher! As such, one of the best ways to educate your children about money is to let them make their own mistakes. Now, don’t let them sink all of their money into a Ponzi scheme. But if they’re going to buy a toy, and you know that they won’t have any more for another month, then let them buy it. They’ll quickly learn the lesson!

Getting a Job

Parents are mixed when it comes to the issue of getting a job. But really, could it ever be bad? They’ll learn how to manage their money, understand that you don’t get anything for nothing, and build up a work ethic that’ll see them through the good and bad times. It’s a no-brainer.

Saying No

Finally, be prepared to say no to a child’s request! You have to say no to things all the time because of money issues. Say no, and they’ll learn that you can’t always have everything in life.


Feeling Trapped by Your Finances?

Feeling trapped by your finances?

Sometimes we can feel trapped by our circumstances. A job that pays a fixed income, bills to pay and choices to make, life can sometimes feel a little tough. We all have those moments, and you are certainly not alone. So how can you avoid this feeling of entrapment and start living your life to the fullest, the way we are supposed to? It starts by taking a long hard look at your current situation and making some positive changes to improve your circumstances. Check out some of the things you can do to stop feeling trapped by finances.

Take Control of Your Outgoings

When was the last time you really explored your current outgoings and worked out whether or not you could make some savings? The truth is, not many people pay much attention to what leaves their account. This could be a big mistake.

Print off the last three months of bank statements and highlight anything you are unsure about. You may find you are still paying for things that you no longer need. Canceling those direct debits can give you the extra money you need to head straight into savings.

Tip: Fast food adds up quick! Take notice of the things you are spending money on and see what you can eliminate.

Tackle the Big Problems Head On When You are Trapped by Finances

One of the biggest problems many people have is debt. It can take up a big chunk of their funds each month. Some people like to bury their head in the sand when it comes to debts, but often actually taking on the problem can be inspiring and help you to get out of the situation sooner.

You could consider personal loans for debt consolidation to help you take control. It gives you one payment and one interest charge the saving can be great. But, if it isn’t an option, focus on the debt that costs you the most and get that one paid off sooner rather than later. Focusing on each debt individually can help you clear them for good.

Make Some Changes to Your Current Spending Habits

There are some bills that you can’t make changes to, but there are some spending habits that you can change. Your grocery shopping, for example, can be quite a big expenditure each week, but by making some changes to your habits like meal planning or changing where you shop can make such a big difference.

Shop the sale items and stock up. Maybe you need to shop at two different grocery stores to get the best deals.

Take on Some Saving Challenges

When you are feeling trapped by finances, consider saving. Everyone can benefit from saving and savings challenges are a great way to do it. They are as simple as rounding off to the nearest whole number in your account and transferring the difference to your savings. It could include putting your change in a jar each night or you could do specific amounts each day or week. Your spare change can add up!

Supplement Your Income

Finally, why not put your spare time to good use and supplement your income in some way. It could be filling out online surveys or purging your closets and selling unwanted items online in Facebook groups or eBay. 

Are you crafty? Consider making DIY items and selling them. Maybe you need to pick up a part-time job temporarily to pay off debt quicker.

Where There’s a Will, There’s a Way

Feeling trapped by finances can be super scary. You may need to find some creative ways to get unstuck, but if you put your mind to it, you can accomplish it!