Showing posts with label financial literacy for kids. Show all posts
Tuesday, December 4, 2018
Sunday, December 2, 2018
Friday, November 30, 2018
Wednesday, November 28, 2018
Tuesday, November 27, 2018
The Ultimate FIRE Guide: Unlocking the Secrets of the Modern Financial Independence, Retire Early Movement - Financially Alert
Financial independence, financial freedom, early retirement - all important topics. The FIRE (financial independence, retire early) movement is gaining momentum - here is a great post that is well worth a read
The Ultimate FIRE Guide: Unlocking the Secrets of the Modern Financial Independence, Retire Early Movement - Financially Alert
The Ultimate FIRE Guide: Unlocking the Secrets of the Modern Financial Independence, Retire Early Movement - Financially Alert
Monday, November 26, 2018
Sunday, November 25, 2018
Teaching Kids about Money - 2 More Subjects to Address
5 Consequence
of Money Mistakes – Step 3
At some point we have all made mistakes with money,
and no matter how much we are told and warned about the consequence, nothing
drives the point home better than personal experience. As parents it is
remarkably easy, particularly when the mistake is at a point while the children
are still at home or wholly dependent on us, to bail them out immediately – and
they then see no real consequence.
Move forward a few years when we, as parents, are
either unaware, unavailable or unable to bail them out and the mistake could be
catastrophic for them. Let them make mistakes when they are younger and work
out how to deal with it – it’s a lesson that will stay in place.
It is also worth discussing mistakes we have made,
how we dealt with them and what lessons we learned.
6 Delayed
Gratification – Step 4
Current western society norms
challenge this every hour of every day. With instant and easy credit (even post
2008), we (parents and children) are constantly bombarded with not only why we
“need” that product identified by the marketeers in section 3, but how we can
actually have it NOW!!!!!
Based
on the key point of “need” and “want” outlined in section 3, an item that falls
into the “want” category is not actually required right now. Whether the “want”
is delayed as the reward for achieving an important goal, target or result and
when the money is available, it is an absolute key to our children’s thought
processes that they will have to wait for some things, and need create a
personal discipline to do just that. Some of the consequences of the “have it NOW!!!!!”
culture are discussed in the next section.
Saturday, November 24, 2018
The Best Ways to Invest in Your 30s | Phil Town
Once again taking a look at key components of financial freedom, in this case investing. While the title is about investing in your 30's, there are key points for all ages
Friday, November 23, 2018
Teaching Kids about Money - 2 Subjects to address
3 The
Difference Between Need and Want – Step 1
From a relatively young age, children will use the term “need” when they
“want” something (and the inter-changeability continues well into their teens,
and is some cases beyond). Distinguishing between the two, and then creating an
understanding of the difference is an important starting point. As families we need food, shelter, clothes, basic
medicines, at the next level we need income, insurances etc. We don’t need the
big TV, latest iPad, designer shirts, branded foods, newest X-box, the top of
the range German car or indeed the biggest house, these items (and many others)
fall into the want category. An absolute key point to keep in mind here is that
every company selling products and services on the planet will be marketing to
you and your children that their product is an absolute “need”. They will work
on the desire, the “want”, and then create a list of reasons why you ”need” the
product or service. The peer pressure created just adds to the pressure to
believe that the “want” is a “need”.
Create an understanding of the difference between “need” and “want”
within your off-spring’s mind and you will start the process of understanding.
4 Every
Purchase has an Opportunity Cost – Step 2
Understanding
family finance is finite at some point is an important concept to grasp. Each
item that is purchased potentially creates the loss of an alternative purchase
(the opportunity cost).
Finding
some basic lessons to use to bring this point home will vary depending the age
group you are working with. For youngsters, a trip to the supermarket with you
and a fixed budget to spend. Ask them to decide between two items, such as
which biscuits or cookies to buy. Only one pack of the branded advertised
variety fits the budget, but two packs of the own brand fits. Which will it be?
Is there a taste difference? What happens if we buy one pack of the own brand?
What happens to the money saved? As they understand the concept, it can be
related to other far more important areas than biscuits and cookies.
Thursday, November 22, 2018
Passive Income: Make More Money in 2019! | Phil Town
A key component of financial freedom is income streams. Take a listen to Phil Town discussing the topic.
Wednesday, November 21, 2018
Teaching Kids about Money - Some Initial Thoughts
As parents we spend a great deal of time, energy, resources and money teaching and training our children across a massive spectrum, from eating, walking, talking, toilet training, riding a bike, getting on with others …… the list appears endless. We then ensure they go to school for up to 13 years to be educated in the basics, maths, English, science, history ……, and then onto University or further training for 3 or more years to gain qualifications to create the best opportunity for a future career – so they can follow in our path, or a better one.
In all of this there is a crucial element missing – FINANCIAL training. Not the formal training to be an accountant or a financial adviser, the training on how to deal with their own money. A very limited number of schools are now adding financial parts to the curriculum, but many are not – and that really doesn’t help those at the schools not participating, or indeed those that are well through, or have finished in the formal education system.
In the absence of teaching at school, how many of us sit down and consciously teach our children about money? Most of us would like to think we do, we may even claim we do – but in reality, how much time and effort do we actually put into this area?
So, if the schools don’t teach them, and we, as parents, don’t teach them, where will our children learn?
The answer is copying what we do, copying what they see on TV (and just consider what they see on TV with regards to money), listening and copying their friends (who are learning from their parents and the TV – and that’s all out of your control) …… Add to this factor that when something is wanted, latest iPhone, designer clothing, the big trip from school that “everyone else is going on”, do we go into debt to pay for it (i.e. put the cost on the credit card)? Does this provide a good example? From a personal perspective it took a numbers years for my kids to understand that after we paid for something on the credit card, the credit card bill had to then be paid.
Alan & Clare Beeston
Tuesday, November 20, 2018
Monday, November 19, 2018
Some Alarming Financial Statistics
Take
a look at the statistics below:
· 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
If any of the above seems statements feel true for you, then be aware that you are far from alone.
Keep an eye out over the next few days as we take you through some key elements that yo can use
to teach you kids more about money.
