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Early Learning: How to Teach Important Business Concepts to Your Child

January 3rd, 2017 Posted in financial education, kids and money, learning about money
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It can be difficult trying to teach our children how business works, but it’s a necessary eye-opening experience that your child needs to understand. It will help them make decisions in the future, and they’ll learn to appreciate how the economy works which can be a great boon to their learning ability in the future.

Here are some of the most important concepts to teach your child, and examples of fun activities to help them understand it. These shouldn’t be aimed at children who are too young. Ideally, you’ll want your child to have a basic understand of maths first because there are a lot of numbers involved in business. You also want to have a couple of toys or video games laying around to use as “products” to demonstrate these concepts.

You’ll also need some sticky labels (that can easily be removed) and a pencil, better yet some colored pencils and paper to write things down.

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Supply and Demand

To teach your child this simple concept, bring out a bunch of their favourite toys or video games and grab a couple they don’t use anymore or don’t want. Set them out like a shop, and then give your child some fake money (such as monopoly money) and offer them to your child. Set a price for each one, making sure that your child’s favourite toys are more expensive, then offer to “sell” them back to your child.

To teach them supply and demand, tell your child that their favourite toy is in high demand and that the price has increased from what the label says. Then, tell them that their other toys are cheaper because they aren’t in demand. They’ll start to understand that products that are highly sought after will cost more because they are in demand, but because there isn’t much demand for their other toys, your child can “buy” them back from you for a cheaper price.

Trading

You can teach your child to learn forex trading which will give them an insight into the trading industry and also how foreign currencies interact with home currencies. A simple way to do this is to use online programs and trial accounts. If those programs are too advanced for your child, then a simpler method is to set out a bunch of toys or games that they like to play, much like the supply and demand example. Play a simple game of trading with them. The objective is to tie in supply and demand with the toys that you have set out.

Give your child a couple of toys and set values on them. Next, tell your child which toys are in high demand (use your imagination here!) and give them reasons. For example, perhaps the latest Pokemon game came out and, as a result, Pokemon toys that your child owns have gone “up” in value, so they can be sold back to you for more money because they are now high in demand. Teach them to read how the market is going so they can buy and sell products to gain profits.

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Investing In Property Can Be So Simple A Child Could Do It!

December 29th, 2016 Posted in financial education, financial literacy, kids and money
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You might think that investing in property is quite complicated. After all, you will be dealing with large amounts of capital particularly when you’re buying homes or even apartment buildings. But if you make the right choices this form of investment could be a lot more simple than you ever imagined. Let’s start by thinking about finding the property you want to buy.

Finding The Right Property

When you go on the hunt for a property investment, you are looking for it to tick off a number of boxes. It needs to be selling at the right price which means you should be able to afford it with the money in your bank account. It needs to be in a great area that is thriving and has an infrastructure in active development. It should be in an area where the crime rate is low, and the community spirit is high to encourage buyers to invest. Or tenants to choose it as their new place to live. Most importantly of all, it should have massive potential to increase dramatically in value. How do you find a property like this? The best way is to get in contact with a property broker. They will present you with the best investments on the market right now that match your budget. Thus, you can make sure that you find and take advantage of a fantastic opportunity.

Fixing It Up

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Once you’ve bought the property you then need to think about fixing it up and making it look attractive. Either to tenants who are looking to rent it out or to buyers who are hoping to turn into their own dream investment. You can fix up a property with very little trouble at all. You just need to make sure that you are hiring licensed contractors and designers. This will ensure that any work you complete on the property is above board and legal. It will mean you can avoid getting financial headaches further down the road. It’s always a possibility but one that is easily avoidable if you hire the right team to work on your property. One thing you want to avoid is too much DIY work. While this can seem like a way to save money, if you’re not skilled or qualified it can lead to the same problem.

Managing The Property

If you’re investing in a property to lease it out you do need to think about management. But this can be easy too because you can use a residential property management service. This will ensure that your property is always well maintained and looked after even if you don’t have time. We know what you’re thinking. Is that just another additional cost? Indeed, but it will save you from the financial issues that develop when a property needs emergency work. With the right service, it will never reach this point.

Keeping It Modern

Lastly, you do want to but a small amount of cash to the side each year for upgrades and improvements the property. This will ensure that you have enough to keep the building looking modern and contemporary. Depending on the size of the building, a few thousand should be enough to cover this.

That’s all there is to it. You see, investing in property can really be so simple you could put your child in charge of this investment.

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Teaching Teens About Investment: The Basics

December 23rd, 2016 Posted in financial education, financial literacy for kids, kids and money, teaching children about money, teaching kids about money, teaching students about money
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As a parent with teenagers, you are likely to be worried about their financial futures. If economists are to be believed, millennials could be about to become the first ever generation to be less well off than their parents – so there is obvious cause for concern.

It has never been more important, then, to teach your young adult children the vital importance of saving – and investing in their future. I’ve put together a few ideas which should help you explain – and demonstrate – some of the concepts of investment to your teens.

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Develop their interest in world affairs

Knowledge of global events and their impact on the markets is critical for investors, so encourage your teen to keep in touch with the news. OK, so if you are anything like the average family, your teens are likely to turn off when the news comes on. But, you mustn’t mistake this for disinterest in current and world affairs. There is a good chance that your teens have a keen interest in what’s going on in the world they just choose not to listen to a mainstream voice. Encourage it, of course, but start telling them the benefits of fact-checking and investigating sources. It will prove to be hugely beneficial when it comes to the day they start making investments.

Offer them allowance deals

If you are still giving your teen a weekly allowance, see if you can show them the benefits of putting money way and saving it. For example, let’s say you give them $10 each week. You could suggest that if they gave you back half and save it for 6 months, you would match what they have kept back, doubling their money. Not only will it show them the value of putting money away, but it will also teach them a little about interest and making their money work harder.

Get started on real estate

Buying and selling homes isn’t something your kids will be doing for a while yet. But that doesn’t mean it isn’t a subject you should be discussing. Educational games can help the younger ones, and Monopoly is always a great way to introduce the concept of investing money in property to get more back. If you have the money, you could, potentially, look around for cheap homes for sale, buy one, and let them run it as a business – assuming they are old enough, of course. There’s nothing to stop you from investing in property as a family business, either. You could, perhaps, give everyone tasks they are responsible for and pay them out of any profits earned. Finally, ask their advice. Too many households shield finances from their kids, but being open and honest will help them learn and, most importantly, ask questions.

Talk about the stock markets

Teens love modern technology and big brands – and there is a perfect chance there for you to take their interest further. You could even set them up with a little stock to play with, and see how the markets fluctuate for themselves. As long as your teens have a grasp of money and are interested in the subject matter, it should be easy enough to peak their interest in the relevant markets.

Do you have any suggestions on how to teach teens about investment? Let me know your thoughts in the comments!

 

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How To Plan Today For Your Child’s Tomorrow

December 22nd, 2016 Posted in kids and money
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You want the best for your child, and you’ve probably already striven to provide them all that you can offer. You might be giving them a great education and offering them some of the things you may or may not have had as a child, or simply treating them with kindness and teaching them the values you wish you’d known at a younger age. We’re all going to age, so it’s better to prepare today for that eventuality.

Of course, there are lessons to be taught to our children outside of moral values and what it means to be a good, well-rounded person. It’s never too early to start teaching them about ‘boring’ financial things, such as affording a home, or what to do with your finances so that they’re prepared for life after their career. These are all things the world forces upon us if we want to have a comfortable life, so it’s important that you don’t shield your children from them. Help them be as prepared as possible for the challenges they’ll face in the future.

Planning a will now could be a sensible move.

Yes, I know that’s a weird thought. Perhaps you’ve put off writing a will, but, as you may know from experience, life can be unpredictable. Planning a will today could help to safeguard your child, should the unimaginable ever happen. You want to keep on protecting them no matter what happens to you, and financial support is a vital way to do that.

Help them plan for their retirement.

That probably sounds insane, doesn’t it? Your child has yet to leave school or find a career of their own, but that doesn’t mean they shouldn’t be thinking about what to do when they retire. In fact, this is the perfect time to do so, because it means they won’t have to worry about these things when they’re an adult. Think about the way you did things, and help your child do them in a better way.

There are so many ways you could help your child secure themselves for the future, before they’ve even started earning. Companies such as Blueprint Wealth offer self managed super fund services, as this could really kickstart your child’s future. If you’re not sure how to help your child put together some planning goals, there’s no harm in searching around for advice and help with doing so. Perhaps it took you too long to do so yourself, and you could’ve been better prepared if you’d done something earlier. Sound familiar? Well, there’s some great advice out there if you want your child to have better options.

At the end of the day, planning today is the best piece of advice I can give. Your child’s future is a long way away, so don’t feel too overwhelmed by the prospect of planning retirement funds and wills. Think of it as planning way in advance, because your child does have a lot of time before that day comes, and they should be spending that time enjoying life, rather than worrying halfway down the line if they should have done things differently in order to prepare for their financial future.

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Will Your Kids Be Financially Secure?

December 21st, 2016 Posted in financial literacy for kids, kids and money, teaching children about money
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Financing is a scary topic of conversation for most people. The majority of adults struggle to maintain a financially secure situation, but with children, the concept is foreign and boring. It can be hard to make the topic seem a little less dull when explaining it to your kids, but some of these conversations are better had now. I’m sure you’d rather you helped them now, as opposed to when they’re adults and they come back to you with financial problems out of which they’re struggling to wiggle.

The reason you should be asking yourself whether your children will be financially secure is because one day they’ll be sorting out their finances for themselves. There’s only so much you can help them, but one day you won’t be there and they’ll have to make decisions by themselves. It may not be a pressing issue on their minds now, but considering most adults are perplexed by money and how we’re ‘supposed’ to be using it, it’s best to ensure your child never ends up in such a tricky, confusion, unstable situation.

Aiming for success rather than money is a crucial skill.

If you’re in a financially secure position, the reason you most likely ended up here was through a good career at some point in your life, whether that was in the past or you’re currently in a very stable job. The most invaluable advice you can give to your children is to focus their energy on finding out what their true goal out of life is and pursuing their talents. Their skillset will lead them a good career and that will financially support them much more than any savings account or investment scheme.

Teach your children to take advantage of opportunities in life and seek out their own happiness and success before all else. If they think about this, money will come as a result. Just focusing on money can be a damaging way to live, as it doesn’t actually provide any solutions or methods to achieve financial independence and security. If your child ends up in a company with great career progression, they can chase goals rather than money. Of course, the two go hand in hand, so it’ll work out perfectly for them. It’s all about the right mindset.

Goals should be short-term.

We’ve already discussed the importance of reaching for goals and happiness, rather than simply money in and of itself. Of course, this doesn’t mean your children should be stretching endlessly for distant future objectives. When they become a young adult and enter the working world, they’ll still have their whole lives ahead of them. This will be a time for them to learn about the fine balance between socialising and working. They might benefit from getting help from companies such as Blueprint Wealth – financial advisors; as there’s only so much you can do to teach them how to use their money. It is their money, after all.

Of course, saving is still important.

Whilst building a career and striving for happiness is key, let’s not discourage the importance of saving. It’s always important to think about future investments, rather than encourage your kids to blow money as soon as they earn it. Some element of planning should be involved. That’s a crucial thing to teach your kids, because, as recent educational reforms have shown, we haven’t done a great job at educating the younger generation about debt as of the last few decades.

Whilst that may change in the future, it’s up to you to act now to educate your children. They might have a secure job, but they need to know what to do with their salary once they’ve earnt it.

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