Friday, August 31, 2018
Thursday, August 30, 2018
What Example Do You Set?
Just a simple thought for the day:
As parents we should all lead by example especially when it comes to finances and spending. Your children will copy what they see. It is surely a parents responsibility to educate their children for the future.
Clare Beeston
Wednesday, August 29, 2018
Tuesday, August 28, 2018
Some Interesting Statistics about Money Education
A great deal of the education our kids receive about money and finance comes from us as parents. It is then interesting to see what the following statistics tell us about how we well (or not) we do with the subject
If
any of the above seems statements feel true for you, then be aware that you are
far from alone.
Alan Beeston 28 August 2018
· In a recent National Financial Capabilities study, only 24% of
Millennials (ages 23-35) were able to answer the first three financial literacy
questions correctly and a mere 8% answered them all correctly.
The following stats all come from the 2016 T.
Rowe Price report
80% of parents didn’t think schools were doing enough to
teach kids about financial matters- 69% of parents are very/extremely concerned about setting a
good financial example for their kids.
-
80%
of parents feel that they are
setting a good financial example, but then 66% also admit to doing things that
wouldn’t qualify as setting a good example.
-
40%
of parents admitted that when it comes to talking to their kids
about finances, it’s "do as I say, not as I do."
-
49%
of parents said they rarely or
never discuss family finances with their children
-
18%
of parents admitted to being very/extremely reluctant to discuss
financial matters with their kids
-
72%
of parents experience at least
some reluctance to having such a discussion
Alan Beeston 28 August 2018
Monday, August 27, 2018
Sunday, August 26, 2018
Thursday, August 23, 2018
3 Ways a Teenage Can Acquire Wealth and Maintain Financial Sustainability
A man's success can
be recognized by the legitimate means in which he gains beneficial things. This
might be as result of effort and self-determination. To some people, it is
otherwise because they believe success comes from the approval of the Supreme
Being. Wealth sometimes can be described simply as the ability for an
individual to meet up with his/her desires without limitations.
Millions of people
living in the world today believe in having hands on deck to achieve their
goals and what matters is, do they really work for the sustainable goal?
Perhaps, about 5%
of the people in this world acquire wealth to sustain and provide their demands
at any given time. They are known to be the world's most influential people.
Their achievements might not really depend on the hardship but simply as a
result of self-determination to produce services for the general population to
utilize.
In this article, we
provide three (3) ways to acquire sustainable wealth to suit people's
prospective desires. However these ways are categorized amongst three groups
namely the inventors, investors and salary earning groups.
The Inventors
group: This group can be found amongst popular artistes such as art
celebrities, actors, musicians and inventors. They normally work for the
passion which at later time, projects them to fame that attracts wealth for
them. Sometimes, their wealth is not substantial because of improper
management. Reason is because majority of people in this group are teenagers
who doesn't believe in seeking for job. They find it easy to go for their
passion but lack of knowledge in the managerial aspect would eventually lead
them to financial instability.
The Salary Earning
Group: This people work for an agreed terms and period for their employers.
When they meet their job requirements, they get paid for the specific job.
Either as a government or a private sector worker, they are dependent on their
monthly, weekly or daily salary which often limits them to their desire.
A teenage in this
group sometimes find it difficult to meet up with their hastening needs as they
end up seeking for leverages, loans and mortgages which results to debt. At
most point they are caged for a fixed period in other to achieve their long
term desires. Only 30% of people in this group step up to build other sources
of income for themselves.
The Investors
group: This set of people believes that every day to day activities of the
world depends on business transactions and risks.
However not many of
them succeeds in this path. Only few who believe that risk is a companion in
every business dealings scale along through.
This group of
people invests at a minimal rate and gradually attains a higher level of
wealth. They focus on the long term goal which produces huge and sustainable
wealth than other groups above. They are the owners and employers of people who
make wealth for them on daily basis.
Attaining wealth
depends on the variety of group you choose to belong. Any one of these groups
can eventually land you to wealth but it takes wisdom and understanding to
manage its proceedings in other to sustain it for the future.
Article
Source: http://EzineArticles.com/expert/Maduka_Chris_Sopulu/2435064
Wednesday, August 22, 2018
Tuesday, August 21, 2018
Exit Strategy: Your Retirement Plan
According to a
survey conducted by the Freelancer's Union, 57.3 million Americans, 36% of the
working population, were self-employed in 2017. The self-employed receive no
employer-sponsored benefits, unless they themselves become employers and hire
full-time workers, making employers and employees eligible for sponsored
benefits.
Otherwise, the
self-employed receive no paid sick, holiday, or vacation time and no employer
co-sponsored health insurance or retirement benefits. Along with the
self-employed are millions who work part-time in traditional employment and
likewise receive no employer-sponsored benefits.
Let's consider
retirement, one of two benefits that workers may self-fund (along with health
insurance). If finances allow you to set aside money to live on when you're too
old to work, you'd be wise to do so.
Examine your
spending patterns. What are you spending on items that you want, but don't
need? I don't recommend that you deny yourself all gratification---we deserve
little luxuries every now and again---but some spending might perhaps be
trimmed and those funds redirected to savings.
Budgeting a limited
income is difficult. Even full-time workers under-fund their retirement
accounts, despite the matching contributions. Wages have stagnated for 30 years
and living expenses only increase. Many are unable to accumulate savings. Some
apply what they're able to save toward buying a home, rather than retirement.
They take a different view of long-range financial planning.
According to the
Economic Policy Institute, the mean retirement savings for Americans age 55 -
61 was $163,577 in 2017. Social Security payments help, but on average cover
only 40% of monthly expenses. As of December 31, 2017, the average monthly
payout for retirees age 62 is $1,112; retirees age 66 receive $1,383; and at
age 66, retirees receive $1,578.
The retirement
picture in the U.S. is a looming national emergency and a national
embarrassment. Corporate governance laws enacted during the administrations of
Reagan, Clinton and Bush (son) brought us globalization and the transfer of
well-paying jobs to other countries and by so doing created the crisis. The
ability of many citizens to earn a comfortable living through employment in
benefits paying jobs has been destroyed.
The computer age
has done no favors, either. So now you can play with Snapchat on your Android
while on break at your $12/hour job. There is technology that's advanced many
fields. But are those advances worth the livelihood of millions? That's a
question for the ethicists.
If possible, please
start a retirement account. Here are two options for Solopreneurs and part-time
employees:
myRA is a starter
retirement account created by the Treasury Department. There's no charge to
open an account and you decide how much to contribute each month. Automatic
withdrawal contributions can be done through your bank account or paycheck.
If you change jobs,
your myRA account isn't affected. If you withdraw money from the account, there
is no financial penalty. myRA is funded with after-tax income.
The maximum annual myRA contribution is $5500 and $6500 for those age 50 or
older. The maximum amount that can be held in a myRA is $15,000. Once the
$15,000 limit has been reached (or before, for that matter), the balance can be
rolled over into a traditional retirement account. https://myra.gov
Self-employed
401(k) profit sharing-plan (Solo 401[k]) is funded with pre-tax dollars.
You can make contributions as both an employer (because you employ yourself)
and as an employee (because you are employed by your sole proprietorship or
single person LLC entity). Wearing your employer hat, one contribution can be
up to 25% of annual net profit, or $33,000 ($39,000 if 50 years or older) per
year. A second contribution of maximum $18,000 annually ($24,000 annually for
those 50 years and older) can be made while wearing your employee hat.
Better still, it's
possible to hire your spouse as an employee under this plan and s/he can
contribute in the same way as you do, meaning that your spouse can also
contribute up to $53,000 ($59,000 if age 50 years or older) per year. Open your
Solo 401(k) account before December 31 and make a tax-deductible contribution
this year.
Thanks for reading,
Kim
Kim L. Clark is an
external strategy and marketing consultant who brings agile skills to the
for-profit and not-for-profit organization leaders with whom she works. Ensure
that your organization achieves its mission-critical goals when you contact Kim
at http://polishedprofessionalsboston.com.
Article Source: https://EzineArticles.com/expert/Kim_L._Clark/647250
Monday, August 20, 2018
Sunday, August 19, 2018
Great Lessons About Money
Money is very important in life. Therefore, there is a need to be properly educated on the issue of finances in order to handle them in a better way. Let us briefly look at the following three lessons:
1) Money is an Idea
The ordinary
pursues money in life. But the great ones pursue great ideas. Good ideas
normally solve people's challenges or problems in life. Once there is a great
idea that is changed into reality, it automatically brings money. Think of
great Edison and the light bulb? Today the electric industry is just great. It
is hard to live without it. Think of Henry Ford and the invention of the car?
It is just mind-blowing. We can't finish the list. You, therefore, need to
generate ideas that will benefit mankind. Once you have done that, you will
have the money you require in your life. There will be mutual benefit. People
will benefit from your idea that has been turned into a solution for their
problems. On the other hand, you will get the money you need.
Money is an idea.
2) Money does not make you rich
There are people
who have money. Some earn big money but they are not rich. What does that tell
you? Money does not make you rich. But what makes you rich? It is what you do
with it. It is how you use money that makes you rich. If you follow those who
are rich, you find that they use their money to buy assets. Then those assets
work for them to build their wealth. But others, they use the money to buy
liabilities. Some have been destroyed by failure to properly handle money.
How do you use your
money?
3) Deal with two Money problems
Basically, there
are two kinds of money problems. Those are; lack of money i.e. too little and
too much money. You, therefore, need to learn how to deal with either of these
two problems. Which of the two problems do you have? How are you dealing with
it?
You have now
learned three lessons about money. I pray that you may put these lessons into
practice. Each lesson is very important. You need to deal with challenges you
have that are associated with any of them. God wants you to enjoy life. Great
things in life do not just come. You need to take action. Take responsibility
for your life including finances. Get yourself a Life Coach.
Visit https://lifecoachchanginglives.wordpress.com// for more
information. Hire Me as Your Life Coach. I will assist you achieve the goals of
your life in any area- Finances, Career, Marriage, Relationships, etc.
Article
Source: https://EzineArticles.com/expert/Elphas_Sipho_Mdluli/580836
Saturday, August 18, 2018
Friday, August 17, 2018
Debt and money management lessons for Burnley primary schoolchildren
Article for Burnley Express on how a local school are providing education on debt and money management. Definitely worth aread
https://www.burnleyexpress.net/news/education/debt-and-money-management-lessons-for-burnley-primary-schoolchildren-1-9266480
Thursday, August 16, 2018
Tuesday, August 14, 2018
Monday, August 13, 2018
6 JARS System of Money Management
The 6 Jars system is a simple way of picturing how to manage your money, take a look and consider if you could make it work for you and your family
 Necessity Account (NEC - 55%):This account is for managing your
everyday expenses and bills.
This would include things like
your rent, mortgage, utilities, bills, taxes,
food, clothes, etc. Basically it includes
anything that you need to live,
the necessities.
|
 Play Account (PLY - 10%):PLAY money is spent every month on
purchases you wouldn’t normally
make. The purpose of this jar is to
nurture yourself. You could purchase
an expensive bottle of wine at dinner,
get a massage or go on a weekend
getaway. Play can be anything your heart
desires. You and a spouse can each receive
your own play money, and not even ask
what the other person spends it on!
|
 Financial Freedom Account (FFA - 10%):This is your golden goose. This jar is your
ticket to financial freedom. The money that
you put into this jar is used for investments
and building your passive income streams.
You never spend this money.
The only time you would spend this money
is once you become financially free.
Even then you would only spend the
returns on your investment. Never spend
the principal.
|
 Education Account (EDU - 10%):Money in this jar is meant to further
your education and personal growth.
An investment in yourself is a great
way to use your money. You are your
most valuable asset. Never forget this.
Education money can be used to purchase
books, CD’s, courses or anything else that
has educational value.
|
 Long-term saving for spending
Account (LTS - 10%):
Money in this jar is for bigger, nice-to-have
purchases. Use the money for vacations,
extravagances, a plasma TV, contingency
fund, your children's education etc.
A small monthly contribution can go a long
way. You may have more than one LTS jar.
If you have more than one LTS, divide
the 10% between the jars according to
your priorities.
|
Give Account (GIV - 5%):
Money in this jar is for giving away.
Use the money for family and friends on
birthdays, special occasions and holidays.
You can also give away your time as opposed
to giving away money. You could house sit
for a neighbour, take a friend’s dog for a walk
or volunteer in your community or for your
favourite charity.
|
Sunday, August 12, 2018
Saturday, August 11, 2018
Teaching Financial Literacy to Kids By Jean Folger | Updated December 1, 2017 — 3:35 PM EST
Teaching Financial Literacy to Kids:
Personal financial literacy encompasses a range of money topics, from everyday skills such as balancing a checkbook to long-term planning for retirement. While literacy – the ability to read and write – is a fundamental part of the education system, financial literacy is often left out of the equation. In the U.S., only 17 states require high school students to take a course in personal finance.
Although there’s a movement to include more finance-related coursework in elementary, middle and high school settings, parents and guardians are the primary educators when it comes to teaching children the skills they need to develop a strong foundation for life-long financial competence. Many adults, however, avoid talking to kids about money – often because they lack confidence in how they've handled their own finances. This is unfortunate, because adults have two things that children do not when it comes to finances: experience and perspective. You don’t have to be a financial rock star with a perfect track record to teach your child personal finance basics and get the money conversation started.
If talking about it highlights that your own finances could use some organizing, use the conversation as an impetus to get them in order and be a positive role model. Like other tricky topics, money is something that kids will hear about outside the home – at school, sports practice, friends' houses and on social media. While this may sound harmless (what could they possibly hear that could be that bad?), kids can get the wrong message about money if peers are their only information source. For example, your child might hear a classmate say that rich people are lucky. If your child believes that wealth is a result of luck, what motivation will he or she have to handle money responsibly? It's important to clarify at a young age that most wealth is not a result of luck – most people have to work hard and make smart decisions to "get rich." Even if you don't know the difference between a defined-benefit and defined-contribution retirement plan, you can provide accurate information, introduce ideas, spark interest and awareness, and help empower your children to take control of their financial lives. (For more see, 3 Simple Steps to Building Wealth.)
By teaching your kids about money, you help them discover the relationships of earning to spending and saving. In doing this, kids begin to understand the value of money. This financial literacy can begin at a young age with simple money concepts such as counting coins and making change for purchases.
Older children can learn about savings accounts, balancing a checkbook and creating a personal budget. The key is to teach a concept and let them try, even if it means a little extra time in the toy store while your little one painstakingly counts out coins from the piggy bank. (For related reading, see How to Teach Your Kids About Money.) This tutorial introduces key financial concepts that are appropriate for young children, including tips for getting kids to think about and understand the money topics.
For information directed toward older kids, check out Teaching Financial Literacy to Tweens and
Teaching Financial Literacy to Teens.
Read more: Teaching Financial Literacy To Kids | Investopedia https://www.investopedia.com/university/teaching-financial-literacy-kids/#ixzz5NJkfIXOl Follow us: Investopedia on Facebook
Personal financial literacy encompasses a range of money topics, from everyday skills such as balancing a checkbook to long-term planning for retirement. While literacy – the ability to read and write – is a fundamental part of the education system, financial literacy is often left out of the equation. In the U.S., only 17 states require high school students to take a course in personal finance.
Although there’s a movement to include more finance-related coursework in elementary, middle and high school settings, parents and guardians are the primary educators when it comes to teaching children the skills they need to develop a strong foundation for life-long financial competence. Many adults, however, avoid talking to kids about money – often because they lack confidence in how they've handled their own finances. This is unfortunate, because adults have two things that children do not when it comes to finances: experience and perspective. You don’t have to be a financial rock star with a perfect track record to teach your child personal finance basics and get the money conversation started.
If talking about it highlights that your own finances could use some organizing, use the conversation as an impetus to get them in order and be a positive role model. Like other tricky topics, money is something that kids will hear about outside the home – at school, sports practice, friends' houses and on social media. While this may sound harmless (what could they possibly hear that could be that bad?), kids can get the wrong message about money if peers are their only information source. For example, your child might hear a classmate say that rich people are lucky. If your child believes that wealth is a result of luck, what motivation will he or she have to handle money responsibly? It's important to clarify at a young age that most wealth is not a result of luck – most people have to work hard and make smart decisions to "get rich." Even if you don't know the difference between a defined-benefit and defined-contribution retirement plan, you can provide accurate information, introduce ideas, spark interest and awareness, and help empower your children to take control of their financial lives. (For more see, 3 Simple Steps to Building Wealth.)
By teaching your kids about money, you help them discover the relationships of earning to spending and saving. In doing this, kids begin to understand the value of money. This financial literacy can begin at a young age with simple money concepts such as counting coins and making change for purchases.
Older children can learn about savings accounts, balancing a checkbook and creating a personal budget. The key is to teach a concept and let them try, even if it means a little extra time in the toy store while your little one painstakingly counts out coins from the piggy bank. (For related reading, see How to Teach Your Kids About Money.) This tutorial introduces key financial concepts that are appropriate for young children, including tips for getting kids to think about and understand the money topics.
For information directed toward older kids, check out Teaching Financial Literacy to Tweens and
Teaching Financial Literacy to Teens.
Read more: Teaching Financial Literacy To Kids | Investopedia https://www.investopedia.com/university/teaching-financial-literacy-kids/#ixzz5NJkfIXOl Follow us: Investopedia on Facebook
Friday, August 10, 2018
Wednesday, August 8, 2018
Tuesday, August 7, 2018
How to Raise Financially Intelligent Children...Let Me Count The Ways!
Guess what time it is? It’s financial education for your kids time!
It’s time to do whatever you can to ensure that your children have enough financial smarts when they finally leave your house that they can not only survive but thrive out in this seemingly big, scary, exciting world full of opportunity we call adult life.
The challenge with ensuring that your kids know what to do with the money they make (assuming they figure out how to make some), is that, generally speaking, parents don’t know what or how to teach their kids and schools either don’t teach them about money or don’t teach them the right stuff to be truly financially responsible in life.
So…what’s a parent to do? Well, you have a few choices (some of which we can provide!):
- You can teach them yourself! And just because YOU don’t know doesn’t mean you can’t learn and then teach them OR learn together. In fact, kids are usually relieved when parents admit they don’t know something and aren’t perfect. Suggest to your kids that you learn together OR you learn first and then share with your kids. And oh, it’s critical that you practice what you’re teaching yourself or the information won’t stick! A simple approach to teaching financial education at home is our Creative Cash for Kids Home Study program. You can learn more at www.creativewealthintl.org/creativecashforkids.php
- You can make sure they are learning in school. If your child’s teacher isn’t teaching financial education, approach them with the idea and even offer to find and purchase a curriculum for the teacher to use. This way not only will YOUR child learn about money and investing but so will lots of other children as well. Our Money Game is a great solution and an easy to use, fun to play and teach financial education program for all. You can learn more at www.winthemoneygame.com.
- Learn to teach financial education and offer to come into your child’s classroom, or any classroom, and teach the subject yourself. This is extremely helpful since most teachers are so swamped with rules, regulations and testing, they can barely even consider teaching a non-mandated subject. They’ll thank you for this!
- Which brings up another idea…if it isn’t already, help get financial educated mandated in your state or at least in your school district. Yes, this will take some work but it’s ‘worth’ it in so many ways.
- Get different money games and have money education events for your kids and their friends at your home on a regular basis. Be crazy and invite entertaining (i.e., not boring) financial professionals in to play with the kids, answer money questions, etc. It’s a great idea to provide prizes and such to get the kids interested in joining you for ‘money nights.’
- If you have a teen, pay them to read financial books. Pay them $10 to $25 per book but have them do a short report on each chapter and have them tell you what they learned and how they might apply it in their lives. Start with any of the Robert Kiyosaki books and proceed from there. It might be the best investment you make in your child’s eventual independence.
- Let your child be involved with anything and everything you do regarding money, running the house, investing, insurance, credit cards, etc. The more you expose them to now, the more they will be aware of when they leave home.
- Send them to a ‘money camp’, like our summer Camp Millionaire or Moving Out! for Teens camps in Santa Barbara. They learn about money, investing, belief systems, assets, liabilities, planning and so much more and they have so much fun doing it. You can check them out at www.campmillionaire.com.
And last, but not least, it’s critical that children grow up knowing it’s perfectly OK to TALK about money.
As human beings, we tend to make money ‘mean’ more than it actually is. We tend to think that people with more money are better, smarter, more important, luckier, etc. when in truth, money is just a tool to reach your dreams and help others reach theirs.
So, what are you waiting for? Let’s make sure your kids never have to move home after they move out (unless you need or want them to that is!).
If you have questions or need guidance, give us a call at 805-957-1024.
We’re here to help. Making sure kids learn about money is what we live for!
Monday, August 6, 2018
Saturday, August 4, 2018
Thursday, August 2, 2018
Wednesday, August 1, 2018
Being Rich Does Not Always Mean You Are Wealthy
By: Eugene Chan
To be truly wealthy is to have money that lasts forever. This may be a blunt statement, but suddenly coming across a large sum of money does not necessarily mean you have become a wealthy person.
To be wealthy is a state of mind. A person with a wealthy mindset may not necessarily be financially rich just yet but will be soon enough. On the other hand, a rich person without a wealthy mindset will squander the money very quickly.
This could not be more true than those who win the lottery. After a few years, these lottery winners no longer possess the millions they came across so suddenly. An amount of money that should have lasted for at least a generation has been fleeted away.
Case in point is UK lottery winner Michael Carroll who won �10 million in 2002 at the age of 19. It is reported that he had lost all his winnings 18 months later on things such as holiday homes, luxury cars, drugs, parties, jewellery and famously, a rural mansion used none other than as a dodgem car racetrack for his new friends.
What is even sadder are cases of other lottery winners that end up with greater financial debt after their windfalls dry up than they had to begin. Some have even declared bankruptcy to be back where they had started - with nothing.
From this, it is fair to say that being rich does not necessarily mean you are wealthy. A truly wealthy person would still possess the majority of the millions of dollars (if not more) because a wealthy person understands the fundamentals of how to manage their money.
It can even be said that a wealthy person has a good relationship with money. Money sticks with them rather than repel away from them. It is through this understanding of how to manage money that dictates how long you will remain rich, or how soon you will become rich.
A wealthy person knows to save their money. With the money that is saved, they firstly spend on things that earn them an income such as quality businesses, real estate and shares. In other words, the money a wealthy person retains is used to further create more money. The money they earn from their investments is then used to fund a rich lifestyle.
On the contrary, for a (temporarily) rich person that does not have a wealthy mindset, they would have chosen to firstly spend on material things and eventually have no money left.
However, nobody is born with a wealthy mindset and it certainly cannot be won. Importantly, a wealthy mindset is learnt. If Michael Carroll had a wealthy mindset when he won the lottery, he would likely still be living very nicely with most of his winnings intact.
If a wealthy individual were to lose all their money today, it is likely that within a number of years, they would be back to a relatively comfortable financial position. Individuals such as Donald Trump, Martha Stewart and Sir Richard Branson have faced financial setbacks in their lives but were able to rebuild their financial positions because each has a wealthy mindset. These individuals firstly focussed on redeveloping their businesses rather than wasting their remaining fortunes on frivolous items and lifestyle decisions. Today, they enjoy life's luxuries because of their wealthy mindset.
Michael Carroll clearly demonstrates that being rich does not always mean you are wealthy. On the other hand, having a wealthy mindset certainly gives you a greater chance at being rich because you understand how to manage and appreciate money. Each of us can learn to be wealthy. By developing this wealthy mindset, you will ultimately attract more money to you than repel it. Only then can you be rich and truly wealthy.
Author Bio
Eugene Chan is the founder of http://save-money-make-money.blogspot.com which provides practical ideas to save money everyday.
Article Source: http://www.ArticleGeek.com - Free Website Content
