Teach Your Kids Financial Responsibility

Teach Your Kids Financial Responsibility

by | Uncategorized

How You Can Teach Money Management to Kids

Meta Description: Read this to know how you can effectively teach your kids money management and financial responsibility.

Meta Tags: money management, financial responsibility

“You must gain control over your money or the lack of it will forever control you.” – Dave Ramsey

Effective money management can be a key to a fulfilling life. To understand the value of money and to know better about its right use is as important as understanding the need for oxygen.

It’s important for everyone to manage their money wisely and control the expenses in order to avoid a situation where they find themselves under the immense burden of debts. Financial responsibility and money management are some important things that everyone should be aware of.

As we grow older, we learn more and more about the value of money. Indeed, life has its own way of teaching. However, kids in today’s times, lack the knowledge of money management. Although they are well capable of spending money online on various games and apps, they still lack a sense of financial responsibility.

Therefore, it’s the duty of the parents to provide awareness to their children regarding financial responsibility and teach adequate money management. The appetite for money management from an early age is important because kids will then know how to spend their money wisely in college or their whole life, for that matter.

Here are some ways in which parents can teach financial responsibility to their children.

Be an inspiration

Kids learn what they see. Their parents are the best source of learning for them. Set an example yourself and ensure healthy money management in your home. Do not spend extravagantly, and also let your children know that you only invest in what is important or beneficial.

Discuss normal house finances with them

Casually discuss with your kids about the things at your house that require money to stay the way they are. Let them know that TV, electricity, gas and even the internet that they use come from money. If you do not have money to pay for them, you will be deprived of these privileges and necessities.

Ask for their opinion as they grow up

We all plan monthly budgets. It’s what makes us live through the month without having to worry about the issue of money a week prior to your payday. When your kids are well capable of understanding the basics of money management, involve them in home budgeting. Ask them what they think needs investment and what does not.

Teach them lessons through their pocket money

Allow your kids to set a budget for themselves in the form of pocket money. Teach them how they can better spend that money and also give them space and freedom to evaluate their understanding of money management.

Teach them the importance of savings

An important part of money management is savings. Tell your kids how important it is to save money for the time of need and how they can do it. Subtly let them know how you incorporate saving in your lifestyle.

Teaching kids financial responsibility is like planting a tree. If they learn about money management at an early age, it is going to benefit them and the people depending on them for life. However, be subtle with your approach. Kids should see money as an important thing, but not the only thing in the world.

7 Tips to Avoid Bankruptcy

7 Tips to Avoid Bankruptcy

by | Bankruptcy, Consumer Proposal

Debt is something that comes with lots of complications and negativity. Still, some people find debt as a way of living. Sometimes, debts can get so excessive that no matter how much you try, you just cannot pay them off, which leaves you with the only option of declaring bankruptcy.

Better financial management throughout your life can make you avoid living off debts. Even if you acquire debts for some important reasons, you need to ensure efficient debt management in order to prevent yourself from bankruptcy.

Bankruptcy can provide total financial relief in some cases, but mostly, bankruptcy can cause some other complications, such as very poor credit score, inability to file for mortgages soon after a bankruptcy discharge, and more. Therefore, you must look to avoid bankruptcy at all costs.

Here are 7 essential tips on avoiding bankruptcy.

1.     Sell your assets

Selling your assets is the first thing you should be doing as soon as you see signs of you not being able to make regular debt payments. These assets can be anything – jewelry, furniture, other household items, etc. Sell them and use the money to pay off debts in order to avoid bankruptcy.

2.     Pay off high-interest debts first

You need to be smart with your approach towards paying off your debts. Prioritize your debts with respect to the interest rate. Try paying off those debts first that have a higher interest rate, with the money you acquire by selling your assets or some other means. Your debt management knowledge will come into play here.

3.     Cut down unnecessary expenses

Take a good look at your monthly household expenses. If you want to avoid bankruptcy, cut down any such expense that you can do without, such as cable TV. Once your financial crisis passes, you can always get back to your original lifestyle.

4.     Ask creditors for help

Another thing that you must do in order to avoid bankruptcy is to talk to the creditors, especially credit card companies. Explain your situation to them and ask if they could reduce your monthly debt payments.

5.     Look for credit counseling

You can avail of the services of a credit counselor if your efforts of talking to the creditors go in vain. The credit counselor you choose should be a bankruptcy expert and must help you avoid bankruptcy and perform effective debt management.

6.     Seek help from family and friends

In times of such a crisis, you can look towards your friends and family for help, even though it is normally a bad idea. Ask them to lend you some money.

7.     Try to settle with debt collectors and creditors

The truth is that the lenders will look to get something from you rather than nothing. Negotiate with them and ask to reduce the debt by 40 to 60 percent, which they would not be getting if you go bankrupt. This is an important step if you want to avoid bankruptcy.

The consequences of bankruptcy can be really harmful to your credit score and finances. Once you implement the above-mentioned tips, you should be able to avoid bankruptcy.