Your Children Can Become Better Personal Finance Managers Than You Are

Personal financial management is not a subject that is taught in every school or college. This is something that nearly all of us face sooner or later. Our competence in dealing with personal finances has been largely dependent on personal experience as parents did not pay much attention to teaching their children how to manage their pocket money. GoBankingRates says that one-third of Americans have no retirement savings. People are increasingly aware of the need to manage their personal finances efficiently taking into account tough economic times.

Current Trends

Parents are now more inclined to explain the rules of personal financial management to their children than never before in order to prepare them for life as adults. But unfortunately, many parents do not know these rules themselves. What can be done to overcome this problem? The answer is very simple: IT solutions can be employed. We live in a time when each of us has a mobile device, and children start using such devices from a very early age: the website LittleThings.com claims that 90% of 2-year-olds use tablets and smartphones. So children are unlikely to feel uncomfortable when learning to manage their finances with the help of technology.

Which Solutions Can be Used?

Websites are the first educational resource that should be addressed. They represent a treasure trove of data on personal financial management. Their content is not limited to articles covering this topic. Such websites may contain a boatload of games and quizzes teaching children to manage their finances, videos, and more. Some of them specialize in a certain type of education materials (e.g. Financial Entertainment represents a financial games library).

Let’s take a look at the Practical Money Skills website by Visa.

This website is full of educational materials that can be used by adults and children. Parents can choose materials depending on preferences of a child and his/her needs. Articles are written in simple words and children can understand them easily. They can be read by parents or by children themselves.

Children like games and they can play online games there, and these games will teach them to manage finances. If children (teenagers in particular) need some extra training in making savings and assessing their financial choices, they can use calculators. For instance, teenagers planning to take a year off before starting college usually travel abroad. They have a limited budget, so planning a travel budget plays a very important role. The Travel Budgeting Calculator can show them how much they will spend on a trip.

What about comics? People of different ages like them. This website offers several comics to the visitors that introduce fundamental money management concepts to readers.

Some other materials found on this website are videos, infographics, lesson plans (for educators), etc.

What are Other Options?

Think of downloading a mobile app to your device. Custom financial software and mobile application developers do their best to deliver a killer product. There are many good financial apps that can be used by children.

Here are some of them:

1. Quest to Clean Up: chores, rewards, saving. The app can help parents to teach their children to save and earn money on things they want. Children see how much effort is required to get an item they would like to get. Parents can add task and chores (paid/unpaid) using this app and reward kids after a task is completed.

2. Yuby. This app can become the first financial instrument for children. It has the Chore List that reminds its small users what their chores are and how much money they can get for each task. Yuby shows children the sum of money they have at the moment and displays their financial activity. Children can also see how much money they need to get the stuff from the Wish List.

3. Thrive ‘n’ Shine. This is an educational adventure game that teaches high school students to manage their personal finance. The app enables users to create avatars they like. Players learn to balance their needs and wants and earn different rewards. There are section quizzes and final summative assessments in this game. Teachers (or parents) can track children’s progress using an online dashboard.

4. bankaroo. This app represents a virtual bank that teaches children about the value of money. Parents and children can make use of this app to keep track of money that children save or spend. It helps children to save for important goals. The app supports different languages and currencies. It has a paid (school) version, as well.

5. Lunch Tracker. The app teaches children to manage their saving habits by tracking spending on lunch. It contains money-saving tips. Users can see how much money they spend on dining out, eating at home or packing lunch. Children can also take the 30-day challenge to find out how much they save on a monthly basis.

Conclusion

Becoming savvy managers of personal finances from an early age is very important as rules of personal financial management learned in the childhood can be used by in the adult life. IT solutions can become a means of teaching these rules. Parents can choose any solution their children may like, be it an online game, puzzle, mobile app or something else.

Personal Finances Is All About Breaking Bad Habits And Creating New Ones

People are often tempted to give unsolicited advice to others about the best way to manage finances. You’ll come across ideas that work and get you places, but often people are offering up such generalized advice. Trying to put together bits of information and use it in a meaningful way is not usually the best plan, as some of the information may be flawed and other parts confusing.

How can you take good care of your money and your finances so that you do not end up frittering away your savings on things you don’t need?

Generally, the problem is that most people lack a good understanding of just how important saving for the future is. Most people are going to do everything else with their money first before they even think about saving. Although saving in this way is better than not saving at all, it is in fact a highly ineffective way to build any kind of financial independence or security.

Managing Your Personal Finances

If you want to save money for the future, you’ll want these tips to help you on your plan. Many people who practice these methods are surprised at how easy they are to follow.

Simply set aside 20% of your paycheck.

Just reverse your spending and saving habits, instead of putting away your savings after you spent what you thought you needed from your income. Take 20 percent of your earnings first and put it towards savings before spending it all. Make sure to deposit this money as soon as you get paid. Whatever is left after the 20 percent has been saved can then go to paying bills, buying groceries and even getting yourself a new pair of shoes.

This method ensures that you’ll have the cash on hand that you need for your future and helps you to be more effective when you develop your budget. It’s a good feeling when you know that you have cash on hand for emergencies.

Keep Things Simple

There are too many people who are going to look at the latest gadgets and get wooed. You cannot let others around you dictate what you are doing with the money that is in hand. You want to buy the latest iPhone, but there is something you must ask yourself. Think about it, do you really need to spend the money on one?

Is there something in the newer model that is not there in your present one? There is no shame in being rewarded with luxurious items, but you need to keep it under control. You should never forego important expenses to purchase luxuries, and your twenty percent savings rule mustn’t be violated.

You Want Cash Over Credit

Don’t fall for fancy credit card marketing. So many people end up with huge debt due to starting to buy small items using their credit cards. It’s easy to get lured into the trap that a $50 purchase won’t wreak financial damage in the future because it can be paid off within the month. Actually, once the billing cycle rolls around, you are probably like most people who just pay the minimum amount of money towards the bill, making that $50 dress cost close to $100 in interest.

Try to use cash whenever possible. Save your credit cards for emergencies only. Replacing your credit cards with debit cards is an even better idea if possible.

How to Manage Family Finances in a Time of Financial Meltdown

When the world economy was booming, business and families where in a spend spree and there was laxity in spending, corporate governance, regulatory surveillance and controls.

This has resulted in a mountain of debts in both family, corporate and government circles.

Consequently, people are losing jobs in millions all over the world as businesses are folding.

The question now is how could families manage the family financial in a time like this and avoid falling into future quagmire because of squandering future family money. Families were lured into spending frenzies by Shylock soft loan lenders that hid under ostentatious good dealers to dish out the loan with well hidden fine prints that tend to hang the unsuspecting families who as a result spend beyond their family budgets and or even personal budgets. In the process many families with children have lost their family home. Though, spendthrift families are also not innocent as quite a few of them never built nor used family plans and family budgets. Some never even sought family help when they became aware of their circumstance in their family financial.

Now that the veil is uncovered, families may take some steps including the following, in preventing the occurrence of future financial hardship:

Family Financial Planning And Budgeting

Families should plan in advance how much they may spend during the following 2 to 5 years in line with their expected family income during that period. In doing this, they should make allowance for any shortfall in their expected family money in that period. They should also put together their expected expenses in the coming 12 months matching it with their expected family money they will receive in that period making sure they will not spend more than they would receive.

Using Family Templates Or Family Sheets

Using family templates or family sheets they should continually monitor the budget so that they are not spending more than they plan to. Where they find some item(s) in the budget are going up more than expected, like family bills, they should adjust expenses on other items that they could reduce or forgo. Having the family planner is good but having the discipline to follow it is best for families.

Buy Only What You Can Afford Today

Families should avoid enticing lending gimmicks and buy-today-pay another time interest free scorns used by dealers because there is never free lunch. Behind any of this there are always hidden condition that profit dealers and their embedded lenders. The key is buying only what you can afford today if it is practicable.

Government Assisting Families

Governments should also assist in ensuring that families are maintaining financial discipline by providing some assistance in this. From time to time government should consult with the family about their financial management or even provide family forms requesting information that would help them assist families in managing their finances.

How to Manage Your Finances on a Day to Day Basis

Managing finances can be stressful for anyone, no matter what stage of life they are in. However, you can learn a few basic rules and apply them to your lifestyle for a much easier way of managing your finances. It will require time, and diligence on your part, but it will be worth it in the end. So keep reading to learn more.

Financial Planning: The Beginning

One of the easiest things you can do for yourself regarding finances, is to create a solid budget. By doing so, you will be able to keep track of how much you spend, plus you will also be more likely to save money. Having a budget is vital to your financial situation, so make it a top priority in your household.

If you are uncertain as to how you can create a budget, you may want to check out a few books, or even magazines on the subject. A few minutes of research will go a long way. In fact, you can now get software for your computer that will teach you how to budget. Or you can also get free budgeting information on the internet.

Financial Planning: The Next Steps

The next area that you will want to focus on is the use of online savings accounts. You can get an online savings account for your money, and it will help you save as well. Try to set aside a portion of your check each month. The great thing about having an online account is that you will be less likely to use it on a whim.

Another way to boost your financial situation, is to learn to make money online. There are so many different options these days, that you will be surprised. For instance, you can make money by learning to build web sites, or blogs. You can also design web graphics as a side income. There are even paid surveys that you can participate in that cover items you use on a daily basis.

Great Advice for People Looking To Manage Their Finances

Managing personal finances is not something that comes easily for most people. To get the most out of your money, and improve the health of your financial situation, you must study up on the subject and educate yourself thoroughly. Debt Settlement, Loan Modification, Tax Debt Relief leads are all essential to organize your personal finances and improve your life… Financially! After evaluating your ‘Needs’ from the ‘Unnecessary’… one can realize that you can cancel the unrequired… and that way gain a lot out of them every month.

When you have the desire to spend money on something you hadn’t budgeted for, redirect the money into your savings account instead. When you’re tempted to buy something in a store, think about how much better it would be to use that money for debt settlement. At the first chance you get, add the money you were about to splurge with, into your savings account, and with consultation with your accountants you can also aim at getting Tax Debt Relief.

Always openly communicate with your spouse about your financial situation. It is a proven fact that couples fight more often about money than almost any other subject. Lying to your spouse about frivolous spending, your savings plan, or past debts, can only lead to disaster. Be truthful, open, and honest, to keep your relationship in the best shape.

A good personal-finance tip is to pay with cash as much as you can. Paying for things such as groceries and gas with cash is an excellent way of managing your money. It’ll also prevent you from racking up charges on your credit card and can also keep you away from Debt settlements that you’ll have to pay off.

If you are trying to repair your credit score, you have to be patient. Changes to your score will not happen the day after you pay off your credit card bill. It can take up to ten years before old debt is off of your credit history. Continue to pay your bills on time, and you will get there, though.

To really save yourself some money, pay for everything in cash. Cash does not bounce, and when it is in your wallet, you always know how much money you have. Save yourself trips to the ATM though, as fees can eat up your money. Instead, get cash back at stores.

One of the best ways to stay on track with regards to personal finance is to develop a strict but reasonable budget. This will allow you to keep track of your spending and even to develop a plan for savings. When you begin saving; you could then move into investing. By being strict but reasonable you set yourself up for success.

As was stated earlier in this article, managing personal finances is not an easy thing to do. To successfully manage your finances, and make your money work for you, takes a lot of education and hard work. By carefully reading this article, and applying what you learn, you can take the first steps toward improving your personal financial situation.