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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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Plan for your child's tomorrow

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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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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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