Archive for June, 2009

Raising Financially Savvy Kids

June 12, 2009

Every parent wants their child to grow up to handle money responsibly.  Many of us know from experience what financial dangers await them when they approach adulthood.  It’s wise for us to prepare them now with knowledge and experiences that help them manage money well in their adult years.  Below are some actions parents can take to begin shaping childrens’ money knowledge.

1) Discuss money with your child.  Children need to know that money has to be earned.  They need to know that it is finite (there is only so much).  They need to know that it’s a result of work.

2) Encourage saving.  Children need to see the value of this at an early age.  Simply getting a clear plastic container and putting their money in there can be a good start.  A parent could even put a picture of their desired purchase on the container as a visual reminder of why they are saving their money.

3) Discuss giving.  Teaching the value of giving can do wonders to help your child be a helper of those in less fortunate situations.  Dropping change in a Salvation Army tub or the offering plate at church can be opportunities for your child to know they are helping others.  It’s also smart to teach your child that they can give in non-materials ways as well.  Activities such as helping the elderly with lawn care, planting flowers at their school are a few examples of help that doesn’t cost money.

4) Start working early.  Children need jobs.  As early as 3 years old children can begin doing tasks around the house.  These jobs need to be age appropriate and well defined.  It’s OK to pay them for additional jobs that you find acceptable.  They have to complete their non-paid jobs first, however.

5) Partnering up on meeting goals.  Parents of preteens and teens can partner up to help their child reach financial goals.  If a child wants a $300 game system the parent can match every dollar they save up to $150.  The child gets exposure to goal setting and responsibility while the parent ponies up to the agreed upon match.  This can even apply to college spending money as well.  If you’re the parent of a college age student summer time is a great time to institute this type of agreement.

What are your thoughts about raising financially smart children?  What would you add to my list?  Feel free to drop a comment.

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5 Signs You Are A Money Magnet

June 10, 2009

Is money actually drawn to some people? Is it repelled by others?  Interesting thought isn’t it.  How is it that some people never want for money while others never have 2 nickels to rub together.  Which one are you?  If you’re interested in becoming a money magnet here are some traits that I think are necessary to attract money:

1) You know where your money goes.  It’s plain and simple.  People with money have a system wherewith they keep track of how it is spent.  Whether it be business or your own checking account, you must be a money tracker.  For many of these folks it means they have a budget (a plan).

2) You place high value on saving.  Money is attracted to people who respect it enough by saving some of it.  It’s not the spent dollar that makes you wealthy but the one you save that does the trick.  You can’t reap the benefits of compound interest if you never save or invest your money.

3) You seek wise counsel.  Nobody is ever successful with money without surrounding themself with competent money managers.  None of us were born with all the skills necessary to manage money.

4) They seek out profit not wages.  The wealthy aren’t concerned about how much they can make an hour.  Their focus is ROI – return on investment.  They seek out investments and ventures that promise great profits.

5) They value diversification.  The wealthy seldom put all their eggs in one basket.  They have a game plan that accounts for unexpected market movements.  When they suffer in one sector, the other portions of their portfolio fare well.

How many of these traits apply to you?  If you had a 6th sign to add to this list, what would it be?