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10 Money Management Lessons To Teach Your Kids

January 28th, 2019 Posted in financial literacy for kids, kids and money
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The older we get, the more we realize how crucial financial skills are to surviving and navigating life. Too bad though, schools don’t seem to teach our children enough about money and how to manage it.

As a parent, teaching your kids critical financial lessons is a great way to prepare them for the life that’s ahead of them.

But where to begin, you ask?

These key money management lessons we have compiled should be an excellent place to start.

10 Money Management Lessons To Teach Your Kids - piggy bank and coins image

1. Money Does Not Grow On Trees

Financial literacy starts with the understanding that money is a finite resource. Your kids have to realize early on that money does not grow on trees or simply pop out of the ATM; it is a product of hard work, and banks are just establishments that keep them safe for you.

To get your point across, teach your kids how to earn their own money by paying them for doing extra chores around the house. When they’re older, encourage them to get part-time jobs. Not only will this give them a taste of how the real world operates, but it will also help them develop a better work ethic.

2. Wants vs. Needs

Sound financial decisions begin with distinguishing needs from wants. You don’t have to wait for your kids to get older to teach them what’s necessary and what isn’t.

Make your children understand that some expenses have to come first, while others can wait ‘til later or when you have extra money as they’re not essential to day to day living.

3. Delayed Gratification

They say good things come to those who wait. Delaying gratification, however, is something that even adults have a hard time coming to terms with.

Teach kids at an early age that they can’t have everything they want in an instant. Learning to save and prioritize before buying something can have a significant impact on how they handle their finances when they become adults. As parents, you have to reinforce the idea that waiting pays off especially if the goal is worth the wait.

4. Saving For The Rainy Days

Your kids are never too young to start saving. Encourage them to save not because they want to buy something but because the money might come in handy in the future. Instill in them the importance of pausing and weighing the costs before spending. This may be a difficult concept to grasp at first, but later on, it can develop into a habit that they can very much benefit from.

5. Spending Money Wisely

Train your children how to get the most value out of every dollar. Just because they can afford it does not mean they have to buy it. Teach them how to compare prices; explain to them the concept of holiday sales and discount coupons. Help them understand that, sometimes, it wiser to wait it out, especially when buying items that easily depreciate.

6. Living Within Their Means

Of course, you can’t effectively teach your kids the value of money without letting them manage their expenses. Giving them an allowance and making them budget it on their own will help them see how important it is to control their spending. In fact, blowing their allowance can be a good thing; it will teach them to be more conscious of their expenses, else they have to deal with the consequences.

10 Money Management Lessons To Teach Your Kids - pile of dollar bills image

7. How Credit Works

If you want your children to grow up to be financially responsible adults, you have to give them a better understanding of credit and what it entails. They have to be aware of the dangers of debt and how borrowing money can come at a cost. While credit is not bad, one must be sure of his ability to pay or risk getting into trouble.

8. The Value of Investing

Teaching your children the value of investing will not only introduce to them to the idea of using money to make more money but also trigger them to make smarter financial decisions. More importantly, it will encourage them to take risks for the possibility of gaining much more.

9. Setting Financial Goals

Children are impulsive by nature, so it can be tricky for them to set priorities. However, just like adults, they can be capable of making sacrifices for something that they really want. Train your kids to set financial goals by pushing them to make plans for the money they earn or receive. Help them set realistic targets and encourage them to keep on saving until those targets are met.

10. Sharing and Giving Back

Giving is an essential aspect of financial management. Whether it’s for the church, the community, or family members, children, as young as they are, have to be acquainted with the value of sharing what they have to those who need it.

They say you can’t give what you don’t have. Well, in this particular case, you can’t teach what you don’t know. If you want to raise financially literate children who know how to value money, you have to learn as much as you can about it first and then set a good example. Nowadays, adults can’t just pull the old “do as I say” parenting style. Kids tend to follow what you do, not what you say.

About The Author Bio

Samantha Green is the Content Marketing Strategist for BusyKid, the first and only chore and allowance platform where kids can earn, save, share, spend, and invest their allowance. A mom of two, she enjoys spending time with her kids and reading books to them.

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The 5 Biggest Factors That Affect Your Credit

January 24th, 2019 Posted in Uncategorized
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All lending institutions like banks now use your credit score rating to know how much they will lend you. People or institutions with a low credit score show that they have a higher risk of defaulting than those with a higher rating. It is for this reason that every person with an aim of getting a good loan or credit advance will strive to improve their credit at all times. If yours is constantly low, there could be many factors affecting it. Here, you will learn these factors that affect your credit and the effect they have.

The 5 Biggest Factors That Affect Your Credit - loan application image

Amounts Owed

Although you might be paying your credit debt on time, you could still be suffering if your credit usage is too high every month. Reputable credit bureaus and regulators check your credit utilization ratio to determine your credit score. Therefore, it is better to owe your credit card service provider a little money than a lot. Also, do not be misled,going without a credit card is not a better option. It will also bring your credit score down. Get a credit card and use it only when necessary.

Your Payment History

Your habit of paying bills and loan installments counts a lot. In fact, it determines over 30 percent of your credit score. The lenders want to know if they will get their money on time. Therefore, this factor looks at how late you were in making the repayments of all accounts that you have. Most service providers usually submit the reports of servicing of loans, late submissions of payments, and defaulting habits. If you want to learn how you can avoid this, visit the Boostcredit101 website. It has more details.

New Credit

Another of the factors that affect your credit is applying for too many new accounts within a short time increases the chances of having lower scores. The credit bureaus and financial regulators tend to think that you are going too far. It is a sign that you may get overwhelmed in repaying the debts. Therefore, they will lower your credit to give lenders a red flag that you have too many credit accounts that have been applied for recently.Though having a couple of new accounts is good, do not open all of them at the same time.

Credit Mix

There are different types of credits that are also called trade lines, for instance a mortgage, credit card, salary advance, and many others. If you have these accounts and they are healthy, service providers will think of you as a responsible person who can handle debts well. Thus, your credit score will definitely go up. However, make sure that you can handle all of your credit accounts well to avoid straining in the future. Again, do not open all of them at the same time.

The Age of Accounts

Your credit will definitely be affected by the age of the credits accounts that you hold. People who already have old accounts enjoy better credit ratings than those with new ones. Time is the best proof that you can handle your debts and credit accounts responsibly.

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Getting the Facts: 8 Things You Need to Know Before Applying for Your Next Loan

January 20th, 2019 Posted in Credit and Debt, Money Tips
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No matter how careful you are with your finances, unexpected expenses can sometimes hit you completely out of the blue. A medical bill that appeared from nowhere, home renovations, a sudden urge to take a vacation to avoid suffering a burnout… and the list goes on. Understandably, no one should just jump into applying for a loan without a solid ground on how things work in the financial realm, so in that spirit, here are 8 things to know before you proceed:

Getting the Facts: 8 Things You Need to Know Before Applying for Your Next Loan - bank notes image

1. Have a plan on how to repay it

Not having a steady stream of income and trying to apply for a loan is a bad idea. Not only will you not be able to repay it on time, but it’s also highly unlikely you’re going to get approved in the first place. Even if you do have one, you’re going to need to gather all the necessary means of proving it before you apply. Usually, a letter from your employer will suffice. For those of you who are self-employed, it gets a bit trickier, but it’s still doable – just dig up the tax returns for the past two years and that should be it. If you have money coming in from other sources (such as part-time work), you’re going to have an easier time paying back the loan.

2. Minimize the lender’s risk

Your finances can be examined from a purely mathematical standpoint. The lender will take a look at your assets and subtract your liabilities; that’s how your net worth is determined. The former is a sum of what you own – such as your property, and the latter is a sum of your obligations – such as your mortgage. Understandably, the lender is running a business, and as such, looking for ways to minimize the risk is of paramount importance. So do what you can to present yourself as a financially stable individual and gather all the evidence necessary to back your case.

3. Know there are different types of loans

Depending on your needs, there are different types of loans you can choose from, with personal loans being the most popular ones by far. While some lenders have tighter requirements than others, there are personal loans guaranteed approval. Otherwise known as secure loans that are backed by collateral, these are particularly suitable for people with no credit history whatsoever. Then again, if your interests are of commercial nature, consider getting a business loan; once again, there are plenty to choose from. Lines of credit, term loans, equipment financing loans, and so on. There are also specialized loans you can apply for such as auto loans or student loans. When it comes to loans in general, there is no one-size-fits-all solution – it always depends on your needs.

4. Interest rates are one of the most important considerations

Interest rates have a great deal of influence on how much you’re going to end up paying in total. It’s hard to give any general advice on the subject because these can greatly vary from lender to lender. In fact, they can be anywhere between 5% and 35%, which can make quite a substantial difference, especially over the long term. Note that interest rates may not be the only fee you’re going to end up paying. Some lenders will charge you processing fees and some of them even impose a penalty for paying off the loan early, costing them valuable interest rate earnings in the process. Bottom line: every lender is different so always make sure to do your due diligence.

5. It’s a good idea to exhaust your other options first

There are alternatives to getting a loan, all of which should be considered before applying. If you have friends or relatives who could be lending you some money, it’s always better to ask them for help first. After all, no one will offer you as favorable terms as them; in fact, they may not even ask you to pay them back (but make sure to have a clear dialogue about the topic at the very beginning, otherwise you may jeopardize your good personal relationship with them). But if they insist on repayment – which they have every right to – it’s good practice to formalize the agreement in one way or another. Even so, there’s no need to be a burden to your friends and family, as there are other options; credit unions are one of them, and if the situation is suitable, you may even turn to your local church or get in touch with a charity.

6. Every loan comes with its own set of requirements

Depending on the type of loan you’re after, there will always be some requirements you need to comply with. But the following requirements universally apply to all of them:

– You need to be at least 18 years of age.

– You need to be a resident of the country.

– Your financial circumstances need to be proven.

– You need to have a steady stream of income.

Bear in mind this is the bare minimum – depending on the lender, other requirements and restrictions may apply.

7. Know the common loan terms

You’re probably familiar with the interest rates already; basically, this is a portion of the repayment the lender collects each month. The loan term is the total number of months you’ll be paying it off. The annual percentage rate is what the lender will charge you in addition to the interest rates. Finally, the principal is just a fancy way of describing the total amount of money borrowed. This is the basis on which the lender charges you interest rates. As you keep pacing back the loan, the principal decreases, and so do the interest rates.

8. Make a couple of price comparisons

Don’t just dive right in and pick the first lender you see. If you take a little bit of extra time to do some in-depth research which includes comparing prices online, chances are you’ll be able to find a much better deal in general. While you’re at it, it’s good to check up on their online reputation by visiting customer review portals and social media. As much as the lenders can afford to be picky in regards to who they take on board, you – as the loan taker – must be at least equally as careful and only work with the ones you can trust.

Conclusion

Based on these valuable pieces of advice, applying for your next loan should be a breeze, as long as you’re aware of your options. So make sure to do all the research necessary and only apply for a loan when you’re completely comfortable with it.

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Getting the Price Right: 7 Smart Tips You Need to Know When it Comes to Selling Jewelry Online

January 18th, 2019 Posted in Money Tips
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The demand for jewelry is growing because of the need to showcase each person’s personal style. The different materials jewellery is being made out of is expanding as well. Online consumers can find everything from antique jewellery to resin pendants and individual pieces made by an artist from scratch.

You have the jewelry readily available and now it’s time to list it for sale. A bold title can peak interest, and an enchanting description keeps attention. The final selling point is the price. It can be difficult to know exactly what the piece of jewelry is worth. Here are the aspects of your jewelry to consider when pricing for online sale.

Getting the Price Right: 7 Smart Tips You Need to Know When it Comes to Selling Jewelry Online - online jewellery shop image

1.Material

Sometimes the value of a piece of jewelry is made apparent by the type of material it is made out of. If it is a diamond ring, you can simply find out the quality of the diamond and begin pricing from there. It is the same case for pricing between silver and gold, the prices of these valuable metals vary from time to time. It is also important to know whether a piece is solid or only plated in such metals.

There are times when the material is not completely reflected in the cost. Some cheap materials can be applied in difficult methods, which makes them valuable in that sense.

2. Cost of Labor

Always consider how much it is costing you to either hire someone to produce it or if you are making it yourself. Add this to the cost of the materials used to see exactly what each piece of jewelry is running out of pocket.

If you are making the jewelry to sell online, you must allow yourself a wage from producing the product. If sales do increase you can find a way to reach better margins and afford to pay an additional employee.

3. Replacing Products

Keep in mind your plan for when packages go missing or if jewelry breaks on its journey to your customer. If it is a one of a kind piece or especially valuable it could be impossible to reproduce. These costs need covered and adding a small amount of ‘insurance’ to the product cost can make it less financially devastating when you have to replace sales. Insurance is an unfortunate extra cost if nothing happens, but it can be a lifesaver if you need it.

4. Think About Shipping

The cost of shipping may scare some customers away. With the many online free-shipping promotions, people are more likely to choose an item which can be sent at no additional cost. A way to not lose money and offer free-shipping is to absorb that cost in the item price.

Most online vendors allow your customers to choose their own shipping and pay more if they want. Often for these, you won’t have to pay more than typical postage.

5. Is It Vintage?

If you are re-selling jewelry, it is important to look into the date the item was made to see if you can label it as ‘vintage.’ There are standards to when something counts as vintage, or antique, and if you do this appropriately it will draw in customers interested in the unique pieces of history. Knowing the history of your piece and being able to verify it can add a great value to collectors. One of a kind or rare pieces will always become more popular for those searching for something special.

6. Compare To Similar Jewelry

Research jewelry that is similar to yours, in materials and use, and understand what the market is already like before jumping into it. If you are reselling, multiple rings of the same style exist, so you might be able to find the exact ring and the price a different seller has set.

If your handcrafted jewelry truly is unique it can be hard to find a comparison. Just attempt to price on materials and if there is any demand for your ring that can be incorporated into the price.

7. Make A Profit

Do not simply sell for the cost of materials and labor, or what you have priory purchased the piece for. Add an amount for the profit, which every business intend to make. If it’s not something you purchased or made and just something you own, focus on what it has cost you over time in order to make a net profit. These costs might come from appraisals, listing and mailing fees, or repairs.

Why Sell Jewelry Online

Pawn shops and jewelers alike may give low prices for the jewelry because their goal is to resell it for a higher price or just use the materials to do so. Jewelry shops may be useful to have things appraised but often the price is still lowballed. By skipping the shop and selling strait to a consumer that extra profit can go to you.

Online stores also give you a much wider customer base than a local market. This can be vital when it comes to beautiful individual pieces that may be harder to find an adventurous buyer for. There are even internet sites like this company that can help you know exactly what a diamond is worth.

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13 Budgeting Tips to Help You Survive on Social Security

January 17th, 2019 Posted in Money Tips
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 It is believed that roughly 25% of those aged 65 years and above live with families that rely on social security. For this reason, retirees who earn less than $1500 in social security must operate a very tight budget in order to meet up with their financial responsibilities. The following are some of the measures you can put in place in order to stretch your social security and meet your financial obligations;

13 Budgeting Tips to Help You Survive on Social Security - retired couple image

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Try to delay taking your social security

Though you should start collecting your social security at the age of 62, your monthly social security benefits will get higher if you can just wait for a little till your retirement age to start collecting the money. If for instance, you start collecting your social security at 62 when your retirement age is 67, your social security benefits will be reduced by 30%. Learn more about this from Navigation Wealth Management experts.

Consider moving to an area with lower costs of living

You can maximize your social security benefits when you reduce the costs of your living. Do not hesitate to move to a city or town with lower costs of living when you retire.

Try and pay off your debts before retiring

Credit card bills and mortgages are some of the biggest debts that can deplete your social security funds. Try as much as possible to repay them before you retire.

Consider moving to a more tax-friendly state

Many states, including the Washington DC, do not tax social security benefits. Living in states that do not tax social security will help you stretch your benefit further to cover your daily expenses.

Join discount membership programs

There are some fantastic discount membership programs you should consider joining if you want to get more from your social security. The AARP membership, for instance, will provide you with discounts or savings on your health expenses, entertainment, shopping, and restaurant meals. There are some other community memberships you can find that provide discounts for seniors.

Request from senior discounts when you make travel bookings

As a senior citizen on social security, you will have more time to travel but flights and hotels can be incredibly expensive. You can save more money off your social security by simply taking advantage of discounts on airlines such as Southwest Airlines, and American airlines. There are several hotel chains around the world that also offer discounts to senior citizens worldwide.

Make sure you don’t overpay for prescriptions

The costs of medications can quickly add up and you should consider choosing the generic payment options if possible if you want to save money on such medications. You may want to join a prescription membership program to receive rewards such as discounts.       

Volunteer or get a senior job

If you do not have a health challenge that will reduce your mobility, it will be ideal to become a volunteer or get a non-physically demanding job. Volunteering is a good way to spend your free time, even if you don’t get financial rewards for such.

Avoid adding new debts

If you cannot pay off all debt before you retire, then you should avoid adding new debt, if you want to maximize your social security benefits. You should consider steering clear of whatever that causes impulse buying and practice self-control so that you can stick to your budget. It is disheartening to know that many people are still entangled in debts even after retirement, this eventually makes it almost impossible to save money off their social security.

Downsize to a smaller home

One of the best ways to save money while living on social security is to sell your home and move into a smaller one. Fortunately, home values increase over time and you should take this opportunity to sell that family home and move into a smaller home that will cost much less to maintain. Moving into a smaller home does not mean you have to give up on your comfort, you just want to give up the unnecessary free spaces and reduce the costs of maintaining such large homes. If you don’t want to move out of your large home, you may want to consider renting out a room or apartment from the home, to save more on your social security. Having a roommate will help you save costs of utilities, including electricity, water, and cable.

Consider online income opportunities

If you have not considered online money-making opportunities before, this could be the ideal time to do so. Online income opportunities such as freelance writing, data entry, and survey participation can give you a few hundreds of dollars to augment your social security.

Make use of restaurants that offer discounts to seniors

It is okay to eat out at restaurants once in a while, even though you want to be frugal with your living expenses when you are on social security. There are numerous restaurant chains that offer up to 25% for seniors, on all types of foods and drinks. There are some restaurants that offer free meals to seniors on a particular day of the week or month.

Make use of free entertainment advantages

You don’t have to spend part of your social security to have fun and be entertained. There are museums and movie places where seniors can enter for free at a certain time of the day. Your local theater or coffee shop may organize open mic shows that you can attend for free. Book readings, free outdoor activities and free lectures at local colleges, are some of the free entertainment and educational opportunities you should take advantage of.

Conclusion

Living a frugal lifestyle perhaps is the most important skill you should embrace when living on social security. Cutting costs can be very inconvenient for many, but the rewards can be very enticing. You may want to take advantage of free evening schools for seniors in local colleges and universities where you can learn a new skill you can apply outside of the school to make extra income and live comfortably with your social security.

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