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Teaching Your Children About Death

 Teaching Your Children About Death - family at sunset image

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Death is a difficult concept to learn, and it can be hard to know what to say to your child when you lose a loved one. It is how you approach the topic and explain it that will determine how much your child understands, and here are some helpful tips:

Use Simple, Clear Words

If you have to break the news of a family member to your child, make sure to say it as clearly as possible. If you use words like ‘passed’ or ‘is no longer with us’, the child may not fully understand the implication of your words.

Put Emotions Into Words

Talk about how you feel and encourage your child to do the same. It will help them be aware of the grief they feel and be comfortable that what they are going through is normal.

Tell Them What To Expect

If the death of a loved one will cause a change in your child’s routine, explain to them what they should expect. For example, if they used to visit grandma each Friday after school, let them know that instead, grandpa will visit or an aunt will. Preparing your child for changes in their life will make it easier when the time comes that they would normally be with that person.

Teach Them About Funerals

Your child will want to be involved in the process, so let them come along to meetings with funeral directors, viewings and explain things about the day. Let them know how the day will unfold and what to expect. You can let them know that lots of family and friends will be there to remember grandma, and there will be flowers and music. People might cry, but that’s ok, there’s nothing to worry about. Giving your child fair warning of what to expect will make the day run much more smoothly and enable them to cope.

You May Need To Explain Cremation Or Burial

Watching a body being cremated can be a confusing and traumatic event for a child. They don’t understand the purpose of burning a body. You will need to explain that they are doing it because it will allow you to bring them home. If it’s a burial, explain to your child that this is the final goodbye, but you can visit as often as you like.

After the service you’ll want to explain that the wake will usually be a way for the family and friends to cheer themselves up after an upsetting morning. People might laugh, eat and dance in honour of the deceased.

Give Your Child A Role

One great way to help your child deal with grief is to give them the opportunity to help out with planning the funeral and things on the day. You may let them learn about finance by letting them help you plan cheap funerals, or maybe give them the creative control over the flowers- letting them choose the colour and designs. Small things like these will make your child feel useful and keep them busy. http://credit-n.ru/offers-zaim/moneyman-srochnye-zaimy-online.html

Child Life Insurance

There has been quite a bit of press recently on the subject of child life insurance. It is understandable an emotive subject. No parent wants to contemplate something happening to their child, but rather like making their own will or having adequate coverage themselves, child life insurance can provide peace of mind. Consequently, more and more life insurance companies are offering child life insurance whether as a separate insurance contract or as an additional benefit for those people that buy life insurance policies to insure their own lives.

Advantages of child life insurance

Purchasing child life insurance has some advantages that could be taken into consideration.

Future Planning – First of all, the average price of child life insurance is just £5 a month. For £60 a year the parents can buy the child a guaranteed insurability option in the future. After the child reaches adulthood, he or she can buy a new cheap life insurance policy from the same life insurance provider or renew an existing one usually at a lower premium than a new customer.

Family Illness – Similarly, child life insurance can be useful where there may be a long family history of illnesses such as diabetes or heart attack. It can provide a solution to finding affordable cover as an adult.

Financial Planning – Some child life insurance programs have saving options attached to them. This means, that a fraction of premiums are used to save the money and invest them. This sum saved can be used for children education or to cover living expenses.

Disadvantages of child life insurance

Critics argue that life insurance for children is an unnecessary thing and life insurance providers are looking to take advantage of parents that love their children.

Lost Income – Traditional adult life insurance provides cover for loss of income and in general children do not generate any money. Therefore unless they are future sporting or acting stars covering their lost earnings will not be necessary.

Other critics will argue that a person does not necessarily need life insurance until he or she takes out a mortgage or becomes married with children of their own. Until that time a person will usually be working and, as a result, many jobs will insure him / her. Therefore, they believe that guaranteed insurability option, mentioned above, is not necessary.

Free Healthcare – Unlike other countries where a long illness may run up substantial healthcare bills, in the UK this is unlikely to happen.

There is an interesting article on the topic of this and what happens to students loans on the Guardian US Money blog

Advice for choosing child life insurance policy

For those parents that decided to buy life insurance for their children after all, experts offer some advice. First of all, often the cheapest option is to buy a term life insurance contract for 20 years. What is more, it is advisable to make sure that the contract is renewable and convertible into whole life insurance policy. Furthermore, some life insurance companies do not offer child life insurance cover and a result it is wise to consult a financial broker.

The Lloyds of London’s website is a good place to start.

Last but not least, it makes sense for parents to be insured themselves fully first. One of the biggest mistakes is that parents search for life insurance for their children when they do not have life insurance themselves.

The ‘Pocket Money for Chores’ Debate

The ‘Pocket Money for Chores’ Debate - should you give your child an allowanceIt’s an age old parenting question, but one which still causes a huge amount of debate: should you give your child pocket money or allowance for doing chores?

The best answer we can give you is, ‘it depends’.

One obvious reason for linking the two is to encourage a work ethic. Giving pocket money for chores teaches a simple lesson: if you do the work, you get paid. If not, you don’t. Since children in the UK can only take on part time work at the age of 13 (except for certain ‘performance’ related jobs), pocket money provides a good way to teach this lesson at an early age.

But wait a moment… shouldn’t your children be helping out with the chores around the house anyway? A key part of being a family is working as a team and recognising the hard work of others. Giving money for chores runs the danger of creating a selfish attitude, and you also run the risk of hearing comments such as: ‘So you want me to take my school bag upstairs? What are you going to pay me for that?’ Also consider what happens if a child decides they aren’t bothered about getting pocket money a particular week. Does that mean they can get away with not doing their chores?

You can immediately see the pitfalls with the system. So what is the best way to overcome them?

Each family is likely to have a slightly different approach, but one of the best systems we’ve found is to pay your child a base amount of pocket money, which is unrelated to chores. This basic amount will teach them vital decisions about money and saving – whether they save their money to get something they really want, or whether they spend it straight away for instant (but often fleeting) gratification (that’s another issue entirely)

In the meantime, children should be asked to do basic chores around the house, but can be given the opportunity to earn extra ‘rewards’ by completing chores which are beyond their usual scope. Cleaning the car, for example, is a chore many parents agree they would like to reward their children for taking on. This reward can be monetary, but could also take other forms. One good option we came across is a sticker system. Every time your child goes above and beyond what is expected of them they are allowed to put a sticker on their chart, and once they’ve reached an agreed number, they’re allowed a treat. This could take a variety of forms: maybe a special purchase you both agree on, or possibly a special trip. The advantage of this system is that the rewards are flexible and can be varied depending on the individual child’s preference.

Of course, no matter what pocket money system you use, it is almost inevitable that your children will complain about their chores at some point. But if you talk the system through with them, explain why it’s fair, and, most of all, keep it consistent, you should find that these instances become far less common.

Do you agree? What are your own experiences with pocket money and chores? Share your thoughts below.

Is the Virtual World Contributing to Financial Illiteracy?

There is no doubt the internet has changed the way we shop and make purchases. Not only has it made things more convenient, letting us make purchases from the comfort of our own home, but also internet shopping has removed the need for cash. Even when we do venture out to go shopping, many people forgo physical money altogether, preferring instead the convenience of paying for everything with plastic. However, if you have children, this may not really be a good thing.

The problem with this cash-free society is that it makes teaching children about the value of money incredibly difficult, because children have nothing tangible to learn with. Even when we withdraw cash from a bank machine, the concept of where this money comes from can be quite difficult for a child to grasp. After all, you have simply inserted a plastic card into the wall and received cash.

There can also be issues with parents opening up bank accounts for their children. While on one hand this is a good idea, as it helps children learn about saving and earning interest, it can also remove the tangible nature of money because looking at numbers on a bank statement is far removed from counting out coins from a piggy bank.

Is a cashless society causing financial illiteracy?

Plastic culture

Of course, children need to learn about using plastic. Both credit and debit cards are essential and unavoidable tools they will have to get to grips with by the time they are adults, and by the time today’s children grow up and become financially independent, credit and debit cards are possibly going to be replaced by the next generation of phone or watch based payment. However, without a basic understanding of money, where it comes from, the difference between debit and credit, and knowing that money spent equates to money earned, we could be at risk of bringing up a generation into this virtually cash free world with high levels of financial illiteracy.

Already, many children are growing up with a limited grasp of how debit and credit cards link to physical money. Many parents make purchases for their children on the internet, buying books, video games and other items. Some parents are even giving children their very own credit card to make purchases or to act as a safety net in case they need money when they are out. In addition, other parents readily offer up their credit card details to their children so they can purchases on the internet themselves or even open up credit accounts on Amazon, Netflix or iTunes, all of which can have unforeseen consequences.

The blurring of real and online worlds

A good example is the number of parents who open up accounts for their children to play apps and games online. As most parents know, online gaming is incredibly popular among children, but many games not only require a monthly subscription to play, but also in many cases, allow players to purchase additional items in the games using real money. Of course, parents have to hand over their credit card or debit card details to open the accounts for their children, which is where the danger lies.

An increasing number of news stories have highlighted incidents of children running up huge credit card bills by making purchases while playing online games. Many of these children are very young, so don’t grasp the concept that buying things in a virtual game world has an impact in the real world. In addition, the number of children that run up bills by making online purchases without their parent’s knowledge is rising too.

All this shouldn’t come as a surprise, because but with so many of us now making online purchases, the line between the real world where money is physical and has to be earned, and the virtual world, has become blurred. It is, therefore, no wonder that children have a hard time grasping the basics of financial management and how credit cards should be used responsibly, which could be costly when they grow up.

Young debtors

There has been a significant rise in young adults, and in particular, students, getting into deep financial trouble because of improper credit card use. In the United States, one fifth of all bankruptcies are filed by college students, and the picture is not much better in the UK. Most students have little or no credit history, and yet many are offered credit cards as soon as they start university. The consequence of this is that many students are getting into difficulty. Even by university age, not enough students have an understanding of interest rates and charges, but one of the biggest dangers is the ease in which credit cards give ready access to cash. Credit card cash advances are controversial, because they can encourage irresponsible behaviour. Making purchases with a credit card is one thing, but withdrawing cash that may be spent on anything, including socialising, leads many students to become debt ridden before they’ve even started work.

Another problem is that many students are leaving school with high levels of financial illiteracy and without a strong psychological link between actual cash – the physical money they earn – and the money they see in their bank account and credit cards statements, which is compounded by the reliance of plastic for online shopping and the diminishing use of cash, as mentioned earlier.

Back to basics

This psychological link is an important one too. Because even if a young person understands that the money borrowed on a credit card has to be paid back, psychologically and subconsciously this link can remain fuzzy. Growing up in a world where money is not tangible, but virtual, means the psychological link between what you have and what you have earned with what you can spend can be difficult to develop, but as with most things, by teaching children about money and the value of things at a young age, can help reinforce this psychological link. This is why The Financial Fairy Tales Books seek to teach both money skills and values.

Money advice for parents

Most children get money quite early on in life, whether as a Christmas or birthday gift or as pocket money, and often this is where developing this psychological link should start. For instance, paying money directly into a child’s bank account may seem like a good idea for encouraging the child to save, but actually handing them the physical cash helps enforce the idea that money is a tangible thing that exists beyond the numbers on a bank statement or online account.

Secondly, many parents make online purchases for their child and either deduct the money from their child’s pocket money, transfer it out of their bank account or even not take it from them at all. By far a better tactic is to make your children physically hand over the cash before you make any payments online, which again, will reinforce that what is spend on the plastic has to come from somewhere. The same is true in making purchases in physical shops. The act of handing over physical money and receiving change shouldn’t be underestimated, and neither should the importance of the trust old piggy bank, as it can provide a child with something that is physical, tangible and visible, rather than virtual.

Children and Parents at Odds Over Their Financial Futures

SURVEY SHOWS STARK DIFFERENCES BETWEEN PARENTS’ AND CHILDRENS’ VIEWS OF THEIR FINANCIAL FUTURE

59% of parents believe their children will be financially worse off than them in the future

On average children believe they will earn £56,000 aged 35 – twice the average wage

Only 5% of adults share children’s optimistic views about their future earning potential

New data released by RBS shows that adults overwhelmingly think today’s teens will be worse off in the future. Children on the other-hand expect to earn twice the average wage. The stark differences have been highlighted by the RBS MoneySense Research Panel, which is part of the Bank’s financial education programme, and has surveyed over 50,000 children over the last 5 years.

The 2011 findings of the MoneySense Research Panel also indicate:

  • English teens expect to earn most (£57,000), compared to those in Northern Ireland who anticipate earning £39,000. Both are significantly above the actual rate of £24,000.
  • 9 in 10 children think it’s important to learn about money, and are more concerned about debt than any other year since 2007.
  • 71% of young people would like their parents to teach them about finance.

This strongly contrasts with adult’s opinions:

  • The majority of adults believe teens will be earning £25k at the age of 35.
  • Nearly 80% of parents don’t consider money a top priority to discuss with their children.
  • Despite teens wanting to talk to their parents about finance, only 36% of adults actually feel qualified to discuss it.

Andrew Cave from RBS Group Community Affairs said:

‘We know from our research that children want to learn about money, and we know that they instinctively look to their parents. But we also know a lot of adults don’t feel comfortable talking about money with their children, only 18% of them could very confidently describe what an APR is. That’s one of the reasons why RBS believes it’s more important than ever to educate young people about money in the classroom. We believe every child should leave school armed with the ability to manage their money and the skills to make the best financial decisions for their future.’

MoneySense Research Panel

This report is in its fifth and final year and in total has interviewed over 50,000 young people up and down the country. The aim of the five year project has been to speak to children between the ages of 12 and 19 to discover their opinions, attitudes and understandings of cash and how it works in the modern world.

Some of the key regional differences and trends since 2007 are charted here:

Regional Differences

Country Salary expectation aged 35 Reality
England 57,200 Current UK median salary aged

30-39 is £24,316. That’s a

difference of £32,074.

Northern Ireland £39,600
Scotland £53,600
Wales £46,600

Future Debt

Country Expectation of Debt Reality
England 37% Students starting university in 2012 should   expect their average debts to reach £53,400, according to the latest PUSH   National Study Debt Survey.
Northern Ireland 32%
Scotland 24%
Wales 30%

Money Management

Country % who learn about money

management

Reality
England 45% MoneySense has reached

70% of all secondary schools

since 2005 and taught over

2.5m young people.

Northern Ireland 56%
Scotland 57%
Wales 47%

Key trends across the last 5 years.

Learning about,

and keeping

track of money.

90% of young people are keeping track of their   money, up 10% on 2007 figures.

More than half of children used formal methods of   keeping track of money between

2007 and 2011.

90% thought it was important to learn about money   an increase from the

previous year.

Debt In 2007, 24% of young people thought they’d have   no debt by the age of 25. By 2011

this figure had halved to 12%.

More forms of debt were identified by young   people in 2011 compared to 2010.

Expectations of £30,000+ debt after university   increased, particularly in England:

8% to 33%.

Pocket Money In 2007, 27% of young people earned their own   money through a part-time job. This

Figure had reduced to 20% by 2011.

In 2007, 71% of 16-19 year olds and 89% of 12-15   year olds received pocket money.

In 2011, 79% of 16-19 year olds and 85% of 12-15   year olds received pocket money.

Savings Around a third of all young people had saved for   their longer-term future in 2008

(34%). This increased to 37% in 2011.

The percentage of young people who believe ‘It’s   important to Save’ reached 85%

in 2011.