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The 5 Best Investments You Can Make For Your Children

November 23rd, 2016 Posted in learning about money, teaching children about money
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We all want the best for our kids, and everything we do for them is, in essence, an investment. But what will give you the best ‘return’? The truth is it things like this can be hard to quantify. Money helps, of course, but it isn’t the be-all and end-all. With this in mind, I thought I would go through some of the best investments you can make for your kids. Let’s take a closer look.

A happy home life

No matter what we do as parents, it all has an effect on our kids. The trick is to make those experiences as positive as possible for them. While money can give them choices, it won’t necessarily turn them into stable, healthy adults who have a good outlook on life. Your role is critical, so consider the impact it will have if both parents are working, chasing the money. No child is worried about how much money you earn – their concerns are about how much time you spend with them. It’s a delicate balance to strike, of course. But, spending your time providing a happy household will be the biggest – and best – investment you can make.

A dollar a day

Could you afford to save a buck every day for each of your kids? Think about it – it’s a Starbucks coffee at most if you have three children. Save up for a single year, and you have $365. Use that money to invest in some small-cap value stocks, and you might get a return of 12%. So, after 18 years, you will have saved a total of $6,570 – but the compound interest means it will be worth $20,348 – not bad at all.

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Education

Educating your children to the very best standard costs a lot of money, even when you avoid the private schooling system. To give your child the best opportunities, it’s vital to start saving at an early stage. College and tuition fees can hit you hard later on in life, but without that money, your kids may miss out. https://www.moneysmart.gov.au/managing-your-money/ recommends investing in an education fund – and start as soon as possible. The amount you pay in will be nominal, and it will give them the opportunity to experience a high-quality learning experience.

Real Estate

While there are no guarantees with investment, there’s no doubt that real estate offers a lot of long-term potential. It gives your children a more secure future – and even somewhere to live when they decide to leave home. If you want to go down this route, location is key. According to http://www.marshallwhite.com.au/suburb-guides/brighton/, there are a few things to consider. World-class schools, parks, shopping, and amenities are all highly sought after. Find a location that has all of these, and you should keep your tenants happy.

A family accountant

Finally, hiring a family accountant can be one of the best investments you will make. They will work with you – and your children – to get you the best return on any investment possible. They will teach you how to save your kids from paying tax when you pass away. Most importantly, they will get your children used to the idea of looking after their money.

 

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Setting A Good Example When It Comes To Finances

November 21st, 2016 Posted in kids and money, teaching children about money, Uncategorized
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Taking care of your finances is one of the most important things you’ll ever do. Being lackadaisical with the money that you have will only leave you in sticky situations, such as in debt or worse, bankrupt. Another crucial thing to think about, is how your family handle their finances. You can tell your kids all you like about how to save money or becoming financially smart, but at the end of the day, they are going to learn from what you do. Kids will always pay more attention to what you do, rather than what you say. You must set a good example when it comes to your finances. Here’s how to do it.

Start Early

Starting as early as possible ensures your kids develop the right attitude towards money is important. You can do this by making sure you use your money responsibly. It’s no use starting when they are teenagers, as they pick a lot of it up when they are very young.

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When You Do Talk About Money, Know How To Talk About It Properly

When you talk to your kids about money, make sure you know how to talk about it properly. You should be open with them about what you’re doing with your money, and give them advice on what to do with theirs when they have it. Speaking to them about it like adults is important. Try not to discuss money in a negative way, as many people do. Although money isn’t everything, a positive attitude towards money will help them later on in life.

Give Them Pocket Money And Encourage Them To Save/Spend Wisely

Give your kids a set amount of pocket money and encourage them to save and spend wisely. Make sure you encourage them to develop a savings habit early on. When they want to buy something, let them work out how much it will cost and whether it’s worth it.

Live Below Your Means

So many people spend more than they earn and end up in debt. It’s up to you to show your family how to manage their finances by living below your means. This means spending less than you actually earn, in short.

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Plan Your Purchases
Planning your purchases rather than buying on impulse sets a really good example to your family. You should know you’re going to buy something a few weeks in advance so you can adjust your finances accordingly. Never buy something without mulling it over properly first, as the novelty can quickly wear off and you end up being a consumer for the sake of it. Act like you have to wait for a check to cash. Although, you can get them taken care of pretty quickly these days. See this link for more references.

Try Not To Use Credit For Non Emergencies

Credit can be useful, but using it for non emergencies can be a bad idea. You could potentially end up in debt with a lot of interest to pay, and kids usually pick up their parent’s spending habits. Unless you have an emergency or it makes sense to use your credit for whatever reason, steer clear. Don’t spend money you haven’t got.

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Should I Teach My Kids About Identity Theft?

November 18th, 2016 Posted in financial education, financial literacy, financial literacy for kids, kids and money, learning about money
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We’re hearing more and more about identity theft these days. But it’s rare that we consider our children when thinking about the subject. But, whether you have a child who is using the Internet or not, it is still something you should approach with all your family. In today’s guide, we’re going to take a look at why it is so important. We’ll also suggest a few ways you can teach them about how to keep their personal information safe.

Who steals a child’s identity?

It doesn’t compute, does it? Surely no one – even a criminal – would take a child’s identity for nefarious means? Sadly, it’s far from the case. There are several reasons why someone might want to get hold of your kid’s identity – and it could be a goldmine for them. With a social security number, they can apply for a passport or another type of ID card. They could set up a bank account, or even apply for a credit card. And worst of all, they can use a child’s ID to snoop on them, which could put your kids at risk.

Social networks and devices

Don’t forget that more kids than ever are now using social networks, emails, and own phones. It doesn’t take much to find out a lot about your child if someone got their hands on a phone. They could have access to sensitive pictures or messages, and use that information to blackmail your child. They could use your child’s identity to befriend another kid, and encourage them to do something dangerous. And, of course, there is a lot of information you can glean from the data left in photos posted on social networks. So, don’t underestimate the importance of talking about identity theft with your children. There are many ways it can affect them – and you. Let’s take a look at some of the things you need to consider when exploring identity theft with your sons and daughters.

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Understanding the problem

Of course, before you start teaching your child about identity theft, you’ll need to arm yourself with the knowledge. The sad truth is that many adults aren’t even aware of the danger they can sometimes leave themselves exposed to. With this in mind, here’s some tips to prevent identity theft that you need to follow. Start by ensuring that you follow the basic rule of protection – having a robust and secure password, for instance. It’s important to set a good example for your kids if you want them to follow suit. You should also invest the time to find a robust and reliable cyber security program. You don’t have to spend a fortune – there are many fantastic products out there for free. Finally, never by anything from an unsecured online store. The risk of a hacker getting hold of your financial information is just too great.

Influencing behavior

Once you start following the guidelines above, it will be much easier to teach your kids to do the same. The idea is to make these simple rules a habit. When you sign up for a service, you always create a new password. Only pay for goods when you are on a secure WiFi channel. If you start quizzing your kids about the differences between a secure and insecure website, they will soon pick it up. Don’t forget; the chances are that your child will end up a lot safer online than you have ever been. It’s much easier to pick up these habits when you are young.

The dangers of the web

The final lesson is to explain the dangers of the Internet. Kids these days spend a long time online – they even use it in schools. The trouble is, it’s like second nature to them. They are unable to see the dangers of talking with strangers or sharing information online – unless you explain them. Speak to them about how easy it is for people to give up valuable information to others while online. Use some examples – you might try sharing a picture on your account and seeing how far it can travel. Try to avoid frightening your child, however. You don’t want to teach your child that the world is a scarier place than it is. It is vital to keep things positive.

As you can see, it is imperative that you teach your children about the dangers of identity theft. By giving them knowledge at an early stage, their behavior will become habitual. Your kids will be careful, and understand when – and where – there are potential risks.

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Parenting From Beyond The Grave. Teaching Children Finances For When You’re Not Around

November 16th, 2016 Posted in financial education, financial literacy, learning about money, teaching children about money
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Becoming a parent is a huge responsibility. That responsibility doesn’t end, even from beyond the grave. Every parent takes steps to ensure their children would be okay should anything happen. Discussing when you won’t be around anymore isn’t nice, but it’s necessary. It can be reassuring to have relatives who could take care of things. Even so, it’s important to talk things through with your children so they know what would happen. Don’t hide this from your kids, especially as they get older. How can they learn if you don’t teach them? Here are some things you should take time to explain.

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YOUR WILL

If you don’t have a will, you should write one. If you do have a will, it’s important to discuss the document with your children. Setting up a will is the best way to help them figure things out after you’ve gone. Bear in mind that it won’t be any good to them if they don’t understand it, or don’t know it exists. Talk them through the contents of your will and make sure they know where it’s kept. Keeping them in the loop will give them much greater understanding of things. Ensure they’re prepared for the worst. Thorough explanation helps avoid confusion or arguments when the time comes. It’s also worth discussing who will be taking care of them should anything happen. No one wants to have such a sombre conversation, but it’s necessary. It will put all your minds at ease.

LIFE INSURANCE

Explaining the value of insurance to your children will help them understand the need for insurance when they get older. It’s essential that they know how important these added policies are. While you’re explaining insurance to them, it may be worth mentioning life insurance. It’s crucial that your children are aware of any life insurance policies you have. That way, they’ll know what they’re owed when it comes time. This will also help them set up their own life insurance policy later in life. Our reference to our life insurance policies can make a real difference later down the line. Learn what your children will receive from your policy after your death so that you can explain it to them. Make sure they know what you pay in and why you do it. Show them phone numbers and who to contact should they need it in the future.

EXPLAIN TO THEM ABOUT ANY TAXES

There are often fees involved in death. Maybe you’ve got savings, or it’s just taxes on your estate that would need paying. It’s important to discuss this with your children too. Make sure they know what they would have to pay, and how to pay it. This knowledge is crucial. Make sure to explain it in terms your children would understand. This conversation may be best left until your kids are a little older and have some understanding of the tax world. Be realistic in how much your kids are going to understand at any given age.

 

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I Bet You Didn’t Know How Easy It Is To Add $10,000 To The Value Of Your Home

November 16th, 2016 Posted in financial education
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There are all sorts of things that can decrease the value of your home. Just having an overflowing bin outside can drop its value by more than 10 percent. Litter in the street outside your home can cause its value to fall more than 12 percent.

Making your neighborhood clean is certainly one way to increase the value of your home. But is there anything else you can do. Here we’re going to look at all the ways you can boost the value of your home by $10,000. Let’s take a look.

Flooring

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Ugly lino and badly fitted laminate are a big turn off fo buyers. It’s yet another job that they’ll have to do once they move in. And it can cause the value of your home to plummet considerably. An HSBC study found that the price of a house can increase dramatically once new carpets are installed. According to their data, house prices rise by an average of $2,500 if carpets are new. To save money on a new installation, homeowners might want to install them themselves. You may also be able to achieve the same effect by getting your carpets deep cleaned. Having a carpet in a fit state is an excellent way to woo buyers and get them interested in your property.

Turn Your Home Into A Showroom

According to Homesmart Real Estate, it’s important to market your home effectively. One of the ways that you can do this is to transform it into a showroom. Creating a showroom is actually relatively easy. All you have to do is to fill a room with as few objects as possible and put neutral colors on the wall. A picture here, a sofa there – it all adds up to make the house look a lot more presentable.

The idea isn’t to put your own personality on the property, but to give buyers key pointers that suggest a direction in which they could take the room. A few candles in the bathroom or a fruit bowl in the kitchen helps to make the home more tabula rasa. Just decluttering and using a few well-placed objects can dramatically increase the value of your home. It also helps reduce the amount by which buyers attempt to undercut your offer.

Pull Out Your Dirty Toilet

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Besides the kitchen, buyers consider the bathroom to be the most important room in the house. A recent survey by a letting agency found that a dirty bathroom was the biggest issue for new buyers. So what can sellers do?

The first thing to do is grab your bleach and rubber gloves and get scrubbing. Cleaning up the bathroom is essential if you want to impress the people who come to look around your house. Don’t just focus on the toilet and the sink. Make sure you scrub the grouting around your shower and bath tub too. Black, moldy grouting is a big no-no.

You may also want to update out-of-date features like soap holders, faucets, and towel rails.

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