Money Matters

Teaching your children financial responsibility is just as important as dressing them and putting food in their mouths. If we were taught how to take care of things financially then there would not be so many economic hardships in families.
They say…more money, more problems and that rings true. Most of us are living off of anticipated earnings. Meaning…we are estimating the money before we even have it in hand and spending because we “believe” its coming in. Then it doesn’t and we are left with debt that we could have avoided. Now we are ducking and dodging people because we owe them…can you give the stupid shit back you bought? I’m saying stupid shit because I’m sure it had no necessary value in your life. It was a want and it could have waited until your funds were “available”.

No one told me how much credit affects your life. How if I don’t pay my bills on time I can’t get the things that I need to live. But actually, what we should learn is to live a simple as possible. If there is no money to pay for it…don’t get it. Cash and carry. You don’t need to live in a 4 bedroom house if you are the only one there. Get a 1 bedroom…better yet..get a studio. Save some money. Those of you who have a stable job (which is rare in this economy) should be putting up some kind of money to live off in case your job becomes unstable. Almost everyone is living beyond their means.
Hopefully this information helps on how to move forward after poor finances.  Here is an article I found that had some good points.

How to Teach Financial Responsibilityto Kids

Teaching financial responsibility to children will give them the financial foundation they need to act sensibly as adults. Studies show that people who learn financial responsibility at a young age also have less debt and more savings when they become adults. Instructions

Talk to the child about money. Explain about the different types of bills you pay and the importance of meeting payment due dates. Also talk with the child about comparing prices on items in order to find the best deal available.

Show the child how to make a budget. Budgeting is a great skill to learn. Have the child help you create a budget with her allowance. Show what money she has, where she could spend it and how to save it.

Take the child grocery shopping. Explain how much money you have budgeted for groceries and talk about what you need to buy. Show him how to compare products and prices for the best value. This allows him to experience what it is like to work within a budget.

Open a savings account with the child’s money. Add a little at a time and teach the child how to keep up with the register. Explain the interest on the account and how it works.

Discuss the possible dangers of impulsive shopping. Tell the child to avoid buying items on a whim. Differentiate between items that are needed and those that are wanted. Make sure the child understands that if an item is expensive, it is possible to save money to purchase it at a later time instead of going into debt and purchasing the product right away.

Pay the child for doing chores in and around the house. This will help the child learn the value of earning her own money. It will also help instill a work ethic. Be sure the child completes her chores and meets a set standard before paying her for the chores.

Also…the best way to teach your child financial responsibility is to be responsible yourself. Let me hear your thoughts on this.

Realistically Speaking…….Kiki