Budgeting, Home and Family, Parenting

Teach Your Children About Money

Learning about money is always a good thing. Teaching your kids about money as soon as they can understand the basics will really help them a lot in the future. Yes, they will still make financial mistakes but it will be minimized and they will be better equipped in dealing with these mistakes.

When they reach the age where they can earn money for themselves, these lessons will come in handy and will make them financially responsible.

How and What do you Teach them?

We’ve established that you should teach your children about money, so, what and how do you teach them? Here are some suggestions.

Talking about money is a great first step. Simply talking about money whether it be budgeting, expenses, saving and other things will let them know the importance of each.

Spending and saving is a balancing act. Don’t be afraid to spend money if you think the return is worth it, also, don’t spend money just because you can.

Always have multiple sources of income. While this is already an advanced lesson when it comes to finances, teaching your kids at an early age that multiple income sources is better than one is never a bad thing. If you put all your eggs in one basket, you are setting yourself up for failure and hardship if it fails.

Money will buy most things and it can be a very important source of happiness. Yes, not everything can be bought by money but a lot of the things that will entertain you such as hobbies, your interests will require money. Money is important in this day and age and having enough of it is very important.

Money earned illegally will always come back to haunt you. The money you earned will not do you any good if you can’t spend it.

Saving and spending is the basic gist of money management but learning about investing,

Money is important in relationships. While some relationships can survive without having enough money, those are rare and they won’t have the best experience because even if you love someone as much as you think you do, money will always be an issue in the long run.

Don’t compare yourself to others that have more earning powers than you, unless you use them to inspire yourself. If you’re just going to be envious or you will just be depressed, better learn how to NOT compare salaries or income.

Time is money. Always think big picture. If you have a business, don’t dwell on the tedious stuff, outsource them if you can and focus on the tasks that can make the business grow and eventually earn more.

Money is very important and it is one of the things that can determine if you are happy with your life. Having said that, you shouldn’t make it your only goal in life. There are a lot of things that can make you happy aside from earning more.

Debt, Retirement

Reasons Why You Won’t Retire

More and more people are staying in the workforce despite reaching or getting past the retirement age of 60-65. Why is that? When you were young, it’s almost a certainty that you wanted to retire early, it’s a dream for most. Retiring at 50 or 40, even, was something that a lot of my peers wanted but sadly, it did not materialize. The reasons will vary and if you don’t want to fall into this trap of being a worker without a choice, read up so that you will be prepared and you can plan accordingly.

Debt

Accumulated debt over the years is a killer. You will be forced to work until you die because if you can’t pay, you will lose everything or worse. It can be from smaller forms of debt such as credit cards or larger scopes such as student loans, housing, car payments etc.

Try to pay your debts as soon as you can. Pay them off little by little so that you will not be burdened with paying them off during your later years. Even better, try to stop getting into debt. Yes, this is easier said than done but if you want to be able to retire early and enjoy your later years, you have no choice.

Medical Bills

Some people are burdened with medical bills and there really is nothing they can do about it, especially if they have an illness that requires continuous treatment. The best thing that you can do about this is to live a healthy lifestyle in order to lower the risk of getting sick and incurring high medical expenses.

Insufficient Savings and/or Pension

If you live a lifestyle that requires you to spend too much, you are setting yourself up to be a slave to money until your later years. It doesn’t matter if you earn a high income because you will want to maintain your lifestyle until later and once you are unable to support that lifestyle, it will be very hard to adjust your lifestyle.

Try to live modestly and don’t overspend. While this may seem preachy, it is just a suggestion.

Working until your later years is not entirely a bad thing though. If you enjoy your work and it stimulates the brain, go for it.