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Why Don’t They Teach Kids About Buying A Home In School?

January 27th, 2017 Posted in Uncategorized
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Kids learn a lot at school. They learn about history, the Founding Fathers, how to do algebra and why rivers erode their banks. And while that’s all well and good – there’s just one problem. It’s not a practical education. Educators are often so obsessed with teaching their own hobbies and pet interests that they neglect to impart the life skills that will really help children navigate the financial world and succeed in it.

Top on the list of financial topics that should be considered in school is buying a home. Taking out a mortgage is likely the biggest financial decision a young person will make in their lives. Yet the school system right now neglects to teach this in any kind of detail. Instead, children are hyper-trained at an early age in the academics, at the cost of their social, emotional, practical, economical and financial development.

Interest Rate

interest rate sign - kids learning abut mortgages

Flickr

The first thing that kids need to understand about mortgages is the interest rate. This, in essence, is the price you pay for money. The higher the interest rate, the higher the price of money. A mortgage is nothing more than a fancy way of saying a “house loan” – and the interest paid on it is the price of having that money today.

home loan image - kids learning abut mortgages

Flickr

Term

Another idea that kids need to get their heads around is the idea of a term. Mortgages come packaged up with different terms. The longer the term, the more time a person has to pay off their mortgage. Most mortgages come with a 25-year term, but term lengths can vary, depending on an individual’s preferences.

Kids need to understand that, given a fixed interest rate, a longer term will result in a higher total amount of money paid as interest. For example, at an interest rate of 5 percent and a mortgage of $100,000, the total amount of money paid as interest over 10 years is $26,682. If paid over 25 years, however, total interest payments are more than $73,441 – nearly the total value of the loan.

Foreclosure

home foreclosure image - kids learning abut mortgages

Wikimedia Commons

When people fall behind on their mortgage payments, they may face foreclosure. Kids need to understand the consequences of not paying their creditors. Foreclosure means that the person paying the mortgage loses ownership of the house, which is then sold by the creditor to recoup their losses. They also need to understand that it is possible to get foreclosure help to prevent this from happening. Sometimes it is possible to restructure the debt or modify the household budget to make it easier to pay mortgage instalments in the future.

Mortgage Insurance

Mortgage insurance is mandatory when the value of the loan on the home is more than 80 percent of the price of the home. This protection is needed, say, regulators, to protect borrowers and creditors alike. However, in practice, it really means more money in the lender’s pocket. Kids need to understand, therefore, that borrowing money can be very expensive. It’s not just the interest rate that they need to be concerned about – it’s all the other fees that they might have to pay.

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This Matters: The Link Between Money and Green Living

January 4th, 2017 Posted in Uncategorized
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There are lots of ways to live a more financially responsible life. Some of them relate to other lifestyle changes that can benefit you in other ways. Choosing to live a greener life can be one of the best choices you make if you want to revamp your finances. If you can be more responsible to help the environment, you could also find yourself with more money to spend or save. Explore the link between green living and your finances below for both yourself and your children.

 

Wastefulness and Sustainability

One of the worst ways to waste money on a daily basis is by being wasteful. Not only is it a drain on your finances, but it’s also bad for the environment. You can save money by being thriftier and more sustainable.

Recycling and Reusing

If you want to live a more sustainable lifestyle, making the most of everything you buy will help you. You can save money by reusing something instead of throwing it away when it has fulfilled its primary use.

Reduced Reliance on Expensive Resources

Living a greener lifestyle can mean you reduce the amount you spend on some expensive things. These include fuel for your vehicle, which you can buy less of by using public transport or switching your car for a more efficient one.

Green Energy

Using green energy supplies can help you reduce your monthly spending by a significant amount. Switching to solar-generated energy or something similar could be the right choice for you if you want to make financially and environmentally sound decisions.

 


Infographic Produced By Semper Solaris

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Amazing Sources You Can Turn To For Money Advice

December 7th, 2016 Posted in financial literacy, learning about money, Uncategorized
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coins image

Pixabay

Not sure what you should do with your savings? Do you have money in an investment that is now starting to look very risky? It sounds like you could do with some money advice! No matter what type of question you have, there are plenty of sources you can turn to. Each one will be able to give you some solid financial advice. Not sure where to go for the best advice? Here are some of the best sources for financial advice.

Finance Blogs

Thanks to the Internet, it is now easier than ever to get advice about your money. One of the best places to start is by looking at financial blogs. Most finance blogs are written by people who have experience working in the financial sector. In fact, many bloggers are retired wealth managers. If you take a look through all the articles on the blog, you will find a great selection of articles on various financial topics. If you can’t find your answer in an article, don’t be afraid to send one of the bloggers a quick question. I’m sure that they will be more than happy to help you out!

Wealth Managers

If you have a lot of money to invest but aren’t too sure what to do with it, you should speak to a wealth manager, such as Ian Filippini. The wealth manager will be able to look at your current financial situation and figure out which are the best investment options for you. Not only that but once you have invested your cash, they will manage the investment for you. That means they will keep a close eye on it to make sure that your money continues to grow. If an investment looks like it is becoming a risk, your wealth manager will review other options where you could move your money to.

Charities

If you don’t have a whole lot of money to afford a wealth manager but still need some expert advice, you can always speak to a charity. There are a number of charities that have been set up to provide people with lower incomes financial advice. Most of these charities specialise in advice relating to getting out of debt and paying off loans and credit cards. If you give your local charity which offers financial advice a call, you will be able to set up an appointment to go in and speak to someone.

Financial Newspapers

It can also be worth picking up a daily financial newspapers, such as the Financial Times. These are full of local and national news stories, but they are also jam-packed with a lot of extra financial information that you won’t necessarily find in other everyday papers. The Financial Times also has a daily roundup of share and fund prices, so you can always quickly check to see how your investments are doing.

It is very important that you know where to go for professional financial advice. That way, you will be better equipped to manage your money and help it grow!

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Secrets Revealed: Shifting A House That Just Won’t Sell

November 25th, 2016 Posted in financial literacy, Uncategorized
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The sale of a home can just as stressful as buying one. There are some times when you just want it off your chest as soon as possible. At the same time, you don’t want to get burned by a lower price. You don’t have to rely on house buying businesses. Here’s how you can speed up that sale with your own actions.

house image

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Make it a more attractive sale

Naturally, the first thing you want to do is attract buyers. Nowadays, most buyers look online before they look in person. The first minute they take looking over the details of the home are a make or break situation. You need to know how to grab their attention in that time. That means finding out what people really want from a home. They don’t just want to know how many rooms it has. They want to know what the area is like. They want to know what’s near it. Focus on selling more than just the home. Sell everything you can about the location.

home interior image

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Get more people looking
Besides making it a more attractive offer, one of the best ways you can get people acting quickly is by having more looking at once. Instead of arranging individual viewings, you should consider hosting an open house. If more people are looking at once, they’re aware of how much attention the property is getting. That creates a certain tension and even a competitive nature that can get you the offer you want a lot sooner than you might expect.

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Get the right help

Finding the people who are going to buy your house isn’t where it stops, however. There are legal steps to take care of. The conveyancing of a house is a process that can take quite a while. But you shouldn’t let it drag on too long. Some conveyancers will simply take their time getting back to you because they know they can. Instead, they’ll look to finding more business. So, make sure you’re finding trustworthy, recommended conveyancing solicitors. Make sure that you have your conveyancing fees ready before you start selling, too. The quicker you are at preparing, the quicker you can get the ball rolling.

image of pound coins

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Get competitive

Sometimes, you have to take a slight step down if you’re not getting any bites. A lot of homeowners will list their price high in the hopes of getting haggled down to what they really want. Go too high, however, and people won’t even bother trying to haggle. You need to make sure that you’re competitive in your pricing. Get an inspection and a valuation done yourself. Use your local registries to see how much similar homes in similar areas have been sold for. When all else fails, rely on cold hard data for your pricing.

Getting a good sale quicker means working to speed up every individual element of the sale. From the advertisement to the paperwork. If you know how to make your home a truly attractive deal, then you shouldn’t have trouble getting a bite anytime soon.

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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.

handful of money image http://thefinancialfairytales.com

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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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