Archive for the ‘bill management’ tag
Teaching Money Management to Children
Children can grasp good money management skills at early age, if it is taught in the right way. The sooner they learn the ropes of managing their money, the faster they will learn to use it wisely. The earliest age to do is between 7 and 10, because that is when they will start to learn basic money matters in school too.
The best way to start off is by allocating a small amount which your child will be allowed to use for a week. Along with it, assign odd jobs around the house which they can do without hurting themselves. Once the assigned job has been completed pay them their allowance. By doing so, the child will realize the value for his/her work and will also strive to earn more.
The next is to show the child how to spend his money wisely. Explain the three important categories that a child should do with his money – saving, charity and spending. Split it as 40-10-50 or 50-10-40, whichever is suitable to you. This way, they learn to spend some of their hard earned money on their favorite things, give away a small portion for others and importantly, save a portion of it so they can use them in the future to treat themselves for the great job that they’ve done so far.
Since savings is primary here, give them a box or jar (a transparent one) where they can see how their savings increases as they work for it. Visualizing the way their savings grow will have a positive effect on the child; similar to, when they see sprouts from the seeds they’ve sown with their tiny hands.
Teach children to give away charity money to church or some old-age or children home. This will show they how blessed they are and instill values like humbleness and simple living in them.
Now that the financial classes are finally over, take them out buy their favorite toy or dress or video game. These small lessons on savings will remind them to be responsible for their actions and will prevent them from falling into debt traps in the future.
As a parent, use budget planning software offered by personal budget planning sites which you could demonstrate to your kid as he grows bigger. This way, you become an ideal parent for your child, giving him financial security at all times.
Mail this postPopularity: 2% [?]
Personal Financial Management – A Boon for Adults and College Students
Looking after budgets has to be done both by adults as well as college students. Once you are an adult one has to worry about getting employed and about how to go about paying bills. It is easy to throw the money after expensive items like clothes and cars and restaurants, but not easy to get out of the debt that such activities can put one under for a long time.
Managing one’s finances and the proper way of keeping them tracked on a monthly basis is crucial to comprehend. It does not matter that one’s spouse normally does the bills since one needs to follow what is going on with them in case there is a problem and you must take over the responsibility.
The first thing that you need to do is to create a bill plan. On this plan you need to make a list of the bills you have to pay each month and how much you have to pay them. This includes the normal house, car, energy bills and any loans that you have as well as what you spend in food and gas. After this you should put down how much you make that month. Put the numbers together and determine how much you have left over, if any. Online money management can help a lot in handling these.
When it comes to any type of bill that you owe you need to make sure that you pay them on time. The moment you are late you have to worry about late fees and this can increase your bill and even double it. Also make sure that you pay back loans when they are due so you can keep your credit high. Such home financial management can be helped by using free budget management software.
For those in school, there are many ways of saving money using different methods. Instead of purchasing textbooks, rent them and find savings of up to 50%. Instead of going the Microsoft route use Open Office from Sun Microsystems and save $120. Use a bus instead of a car on campus. Use online money management to look after the budget.
Despite using more and more plastic in our everyday finances, ATM fees especially for college students rapidly build up. For colleges that are out of state or even out of region, the local bank or credit union may not have authorized ATM’s. Using these ATM’s charges a fee which adds up. Start a free checking account instead of using the ATM and save.
Mail this postPopularity: 2% [?]