Tag: Parenting

Posted in Teaching Teens About Money

Money Management for Teens with the Cash flow Board Game

Posted on by Tim Connolly
Money Management for Teens with the Cash flow Board Game

Teaching teens about money is a very important life skill that you should be certain to cover with your children before they graduate and move out on their own. You have tested apps, read books, and explored the internet for use in teaching money management to your kids. Currently, you have the opportunity to convey this game, cash flow with you!

What is Cash flow?

Cash flow is an academic board game that emulates real-life financial systems and conditions. As a simulation, you learn practical lessons and gain an invaluable understanding of personal finance and investing without including putting your real money at risk. Cash flow guides you and your children on how to get out of the Rat Race and onto the Fast Track, how to make your money work for you – not the other way around.

What makes Cash flow separate from other financial resource games?

Cash flow not only guides you on how to invest and develop assets but most importantly how you act within investing scenarios. You can try out techniques for creating wealth you might never try in your whole life. If you’re a saver, try forceful investing. If you are a risk-taker, try slow growth. Play, win, and learn!

Using Cash flow to Teach Money Management to Teens

All our children were super excited to get Cash flow open when it came! Not only do we have a teen who can benefit from this competition, but our 12-year-old tween loves Monopoly-type games and was bursting at the seams to get his hands on this one!

One of the things most people love about this game is all the real-life language it uses. They even supply you with a glossary at the end of the teachings in case you need it!

The game brings a little bit to get set up with tasks like obtaining a profession and writing down all the segments of your financial life like salary, mortgage, loans, savings, etc. For maintaining track you have two choices: you can maintain track of the paper logs provided in the game, or if you have a device you can download the app that figures for you.

Some people decided to do it both ways to notice what each process was like. While the paper way is more time-consuming, believe there is more to be learned in the method of doing. The calm thing regarding the app is that for younger kids or kids who struggle in math, it does the calculations for you. Plus what teen doesn’t love the opportunity to use an app on their phone?

Highly recommend Cash flow to any family (even fun for adults) to add to their family game night choices. It extends many avenues for discussion. For instance, my husband was a janitor and thus had a very small salary.

It was very frustrating for him to try and get along because every time he saved a little money to pay something down, he would instead get a gadget card and have to pay out money for things like new rims on the car, or a new cell phone.

Posted in Kids and Money

Teaching Kids and College Students Money Management

Posted on by Tim Connolly
Teaching Kids and College Students Money Management

Parents take pride in the ability to give their children things that make them happy. Among the best “gifts” parents can give are lessons in money management. Teaching money management to children will give them an enormous advantage in their adult life. Children can gain financial independence in adulthood from the solid foundation created when they are young.

Young Children

Begin when kids are as young as 3. Since they learn by observing, take them shopping and help them compare prices of products. Ask, “Which one costs less and saves us money?” Parents might also consider giving youngsters a transparent piggy bank for keeping loose change so they can watch their savings grow.

When children are older, a weekly allowance can teach them how to be good stewards of their money, along with these principles:

  • Identify wants vs. needs. When you spend freely, you’re not managing your money.
  • Save, then spend. This helps avoid short or long-term debt.
  • Value working for money. When you earn your money, you think more carefully about spending.
  • Comparison shop. Research saves money.

Like adults, children need to diversify. Divide the money into three financial categories: saving, spending, and giving. Income can be divided between saving and spending as parents see fit, and contributions can be made to the “giving” jar. A good rule of thumb for giving is 10 percent and provides a great way for parents to start the conversation about giving to others.

It won’t take long for the power of the purse to teach children to save before they spend. With age comes the ability to determine whether saving for the “next big thing” is worth skipping day-to-day purchases that bring short-term satisfaction.

Parents may consider starting a savings account at the bank for the “savings” portion of their kid’s allowances to teach them how the bank and interest work. Taking kids to the bank to deposit the money themselves and watching it grow every month can encourage saving habits for years to come.

College Students

When the apron strings are cut and the purse strings tighten on the first day of college, teenagers get a crash course in budgeting. If they haven’t learned by now, these young adults will see how quickly the little things add up.

It’s important to look for money-saving and money-making opportunities. Online coupons, generic brand items, student discounts and generally living with less should be the norm.

Opportunities to sell items such as old textbooks or clothes, and to work a part-time job can help build a few extra dollars. Choosing the cheaper route by eating in, streaming movies at home, or finding free entertainment also helps the budget.

Students who work should have their bank automate their paychecks so savings are set aside first. If they have a savings account from childhood, they can add to this and continue to grow that fund so that when post-graduation expenses hit they are prepared.

Spending mistakes are inevitable but they can be good money lessons. A commitment to save first, save early, save consistently, and track spending is among the best practices for developing a financial sense for consumers of any age.

Posted in teaching kids about money

How to Teach Children About Money Management

Posted on by Tim Connolly
How to Teach Children About Money Management

Teaching kids about money is a fantastic gift a parent you can give. Make it entertaining and innovative for a win-win! Starting around age three, a child can start to get the idea of allowance. This is not money we just show them. They must do something to make it.

The seeds you’re planting are work ethic, responsibility, and persistence. Who would not like their children to understand those big three lessons? This is where it all begins. Let your child know that you’d love some help around the house and that they can earn some money by helping out.

That money can be set aside in one receptacle for fun things like toys and games. A part of its choice is put in a receptacle and saved for something they want in the future. Help them feel of views as to what that may be. Maybe it’s a more costly toy or a journey to the Zoo. The last part will be put into a receptacle to be given to other individuals who require it. Just like transferring toys, it’s important to share capital with others who require it.

Help them display the place the money would go. Maybe it is a food bank, a spiritual community, or an animal rescue community. By helping your kid imagine what the money in each container will be used for, it provides them a clearer explanation for earning the money and saving it.

Here’s the fun part. Create the containers! You have many choices when it comes to your saving, spending, and giving receptacles. It could be glass pots with stickers on each container that support show them where the money is going. The spending jar could have a toy, ice cream, and play stickers on it. The saving jar could have an image of what they are saving their money for. If they visit every day with a view of their purpose and a place to put money away to achieve that goal, the probability of success grows tenfold.

Miss Saving Piggy has images of rain shadows (rainy day fund) and a rainbow and we just could not resist another bubble. Miss Giving Piggy has the best hand picture of a dog that loves animal rescues, a cross for the community, and a shining sun since the money inside is to light somebody’s day.

The thing is very innovative methods to help your kids learn to work for money and then learn about money management through saving, spending, and providing it away. It’s great for parents too. You get some additional help with the house while your child is understanding responsibility. A bonus is the next time your child appeals for a new toy, all you have to do is say this, “Let’s go look in your spending jar to see how much money you’ve saved up”! Help them figure out the money and let them know how much they have to spend or save up for that toy.

Posted in Teaching Teens About Money

A Parents Guide to Teaching Teens About Money

Posted on by Tim Connolly

Any teen parent knows how difficult it is to talk to their kid about anything. But it does not mean parents should avoid having difficult conversations, particularly about showing their kids how to handle money, credit, and budgeting.

They also probably have their first job and will soon leave for their higher education, establishing independence. According to research, most college graduates claim that their parents taught them how to handle their money. But how do parents approach this difficult subject?

As a parent, you want to do everything you can to help your teen make savvy financial decisions. But every teen parent is confused about where to start. Here are tips for teaching their teens about money. From establishing goals to developing good spending habits.

Every parent must teach their kids the value of money. If you tell your kid how much things cost, for instance, they will learn the value of money and start to demand less, be more grateful for gifts or presents they do not expect, and live a happier, less stressful life in the future.

Money talk should not be frowned upon

Families were hesitant to discuss wealth, money, and other financial problems for a very long time. Nowadays parents are urged to feel at ease talking to their kids about money and to be open to doing so about family finances.

Kids can understand money’s value from an early age

Encourage your children to take part in setting and achieving family financial goals. It can be setting aside money for a new car. Have a conversation with your kids about how giving up non-essentials would help you save money for your family objectives.

Direct them to the better future

You need to do more than encourage your kids to plan upcoming activities. Educating kids about money management helps them prepare for the future and prevent debt and bankruptcy.

Discussion with Teens

Teaching teens about money should start with an honest discussion, just like the other conversation you are bound to have with them.

Generally, people have a discussion with their kids about other topics. However, for some parents, having those awkward conversations is simpler than preparing their children to handle money. Creating financial independence can be facilitated by having open, sincere dialogues with kids about money and finances and giving them a stake in the result.

Start by making a straightforward budget describing all potential income sources, the amount needed for essentials, and the amount desired for savings each month.

Finances for Teens

One of the best ways to express the idea? Give them information about the home budget. Your teen can better understand essential financial concepts like compound interest, postponing gratification for those items that mean the most, and detailed saving by hearing about the facts of your family budget.

Provide your teen with four different buckets to choose from, for each dollar they earn, as an example. These categories may include donations, charitable giving, spending, and savings. Teens between the ages of 12 and 18 can start doing online jobs that help them save and earn money.

Posted in teaching kids about money

Five tips for raising money-savvy kids

Posted on by Tim Connolly

Money is a topic that is difficult to discuss because most parents do not want to talk about their income and expenses with people. Of course, kids are people too. Kids cannot learn money management unless they first have some money of their own to manage. Start teaching kids about money by providing some kind of allowance or payment for certain tasks.

Some parents wait until their children are in their teens before they start talking about managing money. But it is better to start talking about money when they are kids.

Give your kids activities and ideas for earning money. It helps children meet their financial goals and teaches them that money is a reward for working. By earning small amounts of money for certain tasks, kids realize that work and money are connected.

Successful money management has the skills to know how much money is available, how much money has been spent, and how much money must be saved for future needs. Teach kids to be accountable for their money through record-keeping.

Everyone wants financial success for their kids. That is why here are five tips for raising money-savvy kids.

Take your kid to the credit union with you

It is a great idea if you open a savings account for your kid, but you do not have to do that and let them learn on their own. Just take your child to the bank with you and let them watch you do your banking. Allowing your child to watch you manage your finances, whether in person or online, helps them understand the importance of making thoughtful financial decisions.

Give your kids methods to earn money

You do not have to wait until your kids are older to give them an allowance. Start giving them allowance at a young age. Award them for doing chores like folding clothes, making their bed, or taking out the trash. Whereas older kids can make money doing larger tasks like mowing the grass, babysitting, or washing cars. It is good for children to learn the importance of earning money for what they want.

Give guidance, but let your kids make their own decisions.

It is hard to make let’s kids’ mistakes especially when the mistakes are so clear. However, good lessons come from making mistakes. The way your kid is choosing to spend their money may seem stupid to you.

Remember that allowing them to figure it out for themselves makes a better lasting impression than just making them do what you think is right.

Be tough

When your kids make silly spending decisions it is hard to let them face the consequences. It is hard not to give in when they want something else in a week. Standing your ground help the lesson stick and hopefully helps them make better spending choices in the future.

Remember, actions speak louder than words

If you do not have a family budget you stick to and are constantly indulging in foolish spending, It will be hard to teach your kid how to be financially savvy.

Posted in teaching kids about money

How to Talk to Kids About Money?

Posted on by Tim Connolly

Children are constantly exposed to worldly goods and financial transactions, and without a proper exposition of the basics, they grow up without a clear understanding of the value of money and how to use it. If you do not talk to your kids about money, someone else will, and you may not like the message.

Money is not the first thing that comes to all parent’s minds as a high-priority topic to discuss with kids. But similar to all other things kids are going to learn about money somewhere, one way or the other, and what they learn could have a big impact on their lives.

If as a parent you are worried about saying the wrong thing about money or just do not know how to get started, here are a few tips:

Start early

It sounds crazy to discuss money with a toddler. After all, most three-year-olds barely know how to count. But kids choose up on little things early on. Researchers can grasp economic ideas such as value and exchange as early as age three. It is also the age when kids are developmentally ready to learn delayed gratification and make choices.

Be open to questions

It is not necessary to give exact income figures in your answers. Rather, use the question as an opportunity to share values. For example, you can talk about how different people make money or why some people choose careers that are not high in income but bring them fulfillment. Or explain that you do not know why a friend has a bigger house, there can be many reasons why and then share them best to teach the lesson.

Be honest

If you have regrets about going into debt or not saving enough for retirement, tell your kids. Not only can they learn from these experiences, but they will appreciate your directness and honesty.

It is important to be honest while shopping with kids. Telling a kid that the family can not afford something when technically they can soon become an obvious lie, which causes your child to distrust you on other matters, not only money.

Make values the focus

Parents tend to get nervous regarding discussing money with kids because they do not want to reveal exact figures. If a child perceives that the parent makes a lot of money, they feel entitled to get more. And if the child perceives the parent does not make a lot, they may become worried or scared.

Use stories instead of lectures

As much as parents wish it was not the case, kids do not listen to lectures. It is a good idea to try to weave these stories and lessons into everyday discussions instead of forcing your kids to sit down with you to share them. That is why it is also a good idea to start teaching kids about money when they are young.

Keep discussions age-appropriate

Preschool and middle school kids do not need to know the details of their financial straits, but that does not mean you have to hide them from kids. And while high schoolers also do not need every detail, they are more attuned to their family’s financial situation and will feel deceived if the information is hidden from them.

Furthermore, if your teen is college-bound and your financial situation has changed, they will need to know how much financial support they can expect to receive from you when they apply to colleges.

Posted in Teaching Teens About Money

Six Tactics To Let Teens Know About Money Management

Posted on by Tim Connolly

When your kids become teens, you need to show them the reality. From learning how to become a grown-up in society to saving for a house or retirement, it may seem like you have got a lot to teach them.

Teaching your teens the basics of budgeting helps them deal with real money throughout their lives. So to give your teenager the best likely start in life, teach them smart money habits sooner rather than later. Here are financial lessons for teens to teach your teens money management skills.

Start at a young age

The younger you start money lessons, the better financially fit your teenager will be. It may amaze you how much your kid chooses up. For example, if you are always arguing about money or splashing the cash too freely, this affects kid development. Talk frankly about family budgeting from a young age.

Take your kids to the market and motivate them to spend within a budget to give them the possibility to understand the value of money and prioritize wants and needs.

When you teach teens about money, remember to take baby actions. The more you discuss each money matter, they grow up with a greater financial understanding.

Encourage a habit of saving

Teaching kids about money and saving do not just instill good financial sense but encourages discipline. When teenagers earn money, their initial reaction likely is to spend it as soon as possible. Yet, when you promote a habit of saving, it teaches them the importance of delayed gratification.

Create opportunities to earn money

Talking about money is not always enough. Kids need to practice with their finances to become money supervisors. You can offer them an allowance. However, offering opportunities for your kids to earn money online through social media platforms, tasks, or encouraging a part-time job helps them value the funds differently. An incredible lesson for teens is to teach them that money is not free.

Teach smart spending

Saving money is good. Whether your teen wants to buy food or clothes you need to help them make smart financial decisions.

With a fixed weekly income, teens learn to budget. They know how much money they get and track their spending. Have a conversation with your teen about setting a budget to encourage wise spending.

How to grow money

Saving money is an outstanding habit. However, it is not easy to complete your financial goals by putting all your money in a piggy bank. Saving money gives your kids a chance at making wealth. Their financial education includes how to invest money and the power of compound interest.

Show good financial behavior

If teens see you waste money or spend too frugally, they pick up these habits. Of course, you want to give on your financial values, but you need to model good economic behavior. If you struggle to keep good financial planning, sign up for a budget app or help from a financial adviser. It is purposeless preaching your teenager one thing and then behaving differently.

Posted in Kids and Money

7 important money skills all parents should teach their teenagers

Posted on by Tim Connolly

One of the ways young grown-ups get into problems these days is with their finances. Schools are woefully unable at teaching personal financial planning, and most parents also do not have a clue these days. If I had to bet, most people are living pay to paycheck today, so it is harder to think long-term. But, think long-term, if you want to teach your teenager money skills.

Teaching teens about money and the results of their financial decisions can be challenging. Hopefully, there are ways to make financial literacy for teens that do not involve lecturing.

Teaching teenagers anything is not easy, and unfortunately, there are not many high school classes that teach your kids about the importance of money management.

The best way to teach your teens about money is to start communicating. Talk to your teens about your financial responsibilities: explain what a mortgage is, how you handle your income against expenses, and family bills, and tips on budgeting, planning, savings, and even financing.

Here are some great tips to try out for making sure your teen is on the right path when it comes to saving, making, and spending money:

Let your teenager get a job

Many parents are afraid to let their teenagers work. Yet, analyses show that teenagers who have jobs of up to 19 hours a week get better grades and are more likely to get a secondary education. It is also teaching them time management of balancing work with their education.

Open a kid checking account

When your teenager gets a job, get them their checking account. Until they are 18 they will be part of your account in that you will be an owner of their savings account and if they withdraw the money you are responsible.

Give your teenager an allowance

Even if your kid is going to work, giving them an allowance is a good thing.

Teach your teenager how to budget

When you give your teen free rein on their own money and help them work out a budget to start, they learn money management skills that will carry them far into their adult life.

Teach your teen how to pay bills

When you have given your teen an allowance to cover the things you usually pay directly for, and they have a job, along with their checking account they will now learn how to pay their bills. It is a great skill to have because so many young adults go out into the world having no idea about these things.

Teach your teen how to invest money

Part of managing money also includes how to save and invest money. A part of their money, probably at least fifty percent should be saved for both short-term and long-term objectives.

Teach your teenager how credit works

Nowadays credits are a dangerous thing. Some credit cards offer more than 50 percent interest. In addition, credit card organizations prey on young people by sending more than one or two offers to them daily once they reach the age that it is lawful, usually college age. Teaching them how this works is crucial so they can see what a trap it can become if they are not savvy and careful.

Posted in Kids and Money

Why is financial literacy very important for kids?

Posted on by Tim Connolly
Why is financial literacy very important for kids?

Young children do not understand the essential things until you tell them they are necessary. Specifically, in the case of money, they need to know from a young age how to manage money. According to the dynamics of the world changing so fast, financial education for kids becomes an essential element of life.

Teenagers are always very impatient to have a luxurious lifestyle on their earnings, and they are enthusiastic to stand on their own feet and use their money to have a luxurious standard of living. Financial literacy for kids does not only mean spending wisely, but it also suggests the habit of saving or investing.

Nowadays, schools are teaching many exciting programs to teach money-management skills to students apart from education. To know more about their finances and how the economy performs, schools also added financial literacy to the list.

Apart from the schools, as parents, one of your essential preferences should be making kids learn the importance of money and teaching them to use it wisely.

All know the difficulties of teaching kids or helping to instill habits in them. Here are a few points that help your kids have an easy understanding of money management.

Talk about money straight

Financial crises teach us money management and the efficient use of money. It is essential to make teenagers financially literate to help them use their hard-earned money wisely and be mindful of money matters.

Money is central to our everyday life, Even if you do not mention money in front of your teens, they are picking up on watching you anyway.

Talk to your kids about how hard it is to earn money and manage expenditures. Help them realize that the most appropriate use of funds is using the existing funds to make more of it through savings or investing.

Help them understand bills and purchase receipts

Everyone deal with money-related matters every day. It is all around us. Hence, financial literacy can be taught everyplace – for example, while shopping, you can teach your kids the difference between wants and needs.

You can also take this opportunity to help them understand what credit or debit cards are or also help them learn to buy receipts that contain expenses as per item acquired and other essential details.

Make them understand the importance of saving money

Help your kids understand expenses and that income and savings play a big part. Teach your kids that it is essential to save first and adjust their expenses thus. Help them get into a habit of keeping part of their pocket money as a saving in their piggy bank and established a goal.

For example, if they need a new novel to read, teach them how to put aside some cash every week to reach the cost of the novel and then go out and get it. It will not only help them realize the value of saving but also help them feel a sense of independence when it comes to money management.

Posted in Kids and Money

How to Help Your Kids Develop Good Money Habits?

Posted on by Tim Connolly
How to Help Your Kids Develop Good Money Habits?

Like it or not, you are your kid’s financial role model. They copy what you do. It is a terrifying idea for those of us who were not taught about money ourselves. How can you instill positive thoughts and behaviors around money when you are trying to reason out how to be financially successful yourself?

A better place to start is thinking about your behavior and trying to stop or change some of your less helpful habits. Here are a few common things to look out for:

Not talking about money with your kids

Many parents find it difficult when it comes to teach kids about money. Mostly because they were not guided about it themselves. So they do not know what to teach or how to teach it. This is compounded by the humiliation of not having all the answers and even worse, having to admit they created costly mistakes.

Moreover, not talking about money to kids is setting them up for financial disaster. After all, money creates the world to go round. It gives us choices and the freedom to do things for ourselves, our families, and our community.

Kids need to know about it so you must include them in our day-to-day conversations – like doing the shopping, buying stuff online, going to the bank, and budgeting for a holiday.

Relying on your kid’s school to teach them about money

Some families are comfortable financially and the parents do not think it necessary to teach their kids money management – there will probably always be enough, even if their kids do make mistakes or miss obvious opportunities.

Giving children money for nothing

Birthdays are obvious exceptions but giving them money without them having to earn it means they do not learn the value of it. That it does not grow on trees or appear automatically from a hole in the wall. Money is earned by working hard.

Making financial decisions for your kids

When it comes to your kids’ financial choices, it is a mistake to try and manage every spending decision they make. Not only will they not learn to think for themselves, but they also would not experience the opposing consequences of poor choices. Many of life’s most valuable lessons come through practice and mistakes.

Let them make their preferences. Let the bad decisions hurt a little and the good choices feel fine. Giving your kids the freedom to experience the ups and downs of financial choices helps them understand the value of money and the significance of making smart decisions.

Forcing children to save

As a parent, you know the importance of saving and it can be tempting to make your kids save money whether they want to or not. But all know the more you demand a kid do something, the less they want to do it. It is better to explain the benefits of saving to them than to force them to do it.

Not teaching your kids about debt and credit cards

Credit card debt can derail your kid’s long-term financial stability. Without understanding the cost of debt, your kid is headed for a bad start to their independence when they turn 18 and get inundated with credit card applications.