Our children and grandchildren are our future and what better gift can we give them than the gift of financial literacy. We need to teach the next generations about money: how to save, how to think about spending, how to budget, how to think about their financial future and who to go to for extra financial advice—when the time comes. Children need to understand the practical basics of money and develop a positive relationship with money in order to help them achieve what they want.
Here are a few tips to help parents get started:
First, know that parental involvement is key in children’s financial success
Teach children the value of money, how to earn money and how to budget
Do not spoil your children regardless of your income
Do not pay for whining or crying children
Do not always say no!
Discuss your family budget openly and often
Open a bank account for your child
Develop the idea of quality over quantity
Develop the notion that you can’t always get what you want
Teach young children how to count change and introduce and explain tax
Have a family discussion about allowance: Is it necessity?
Teach the “Pay yourself First” lesson or let them read: The Wealthy Barber
Introduce the idea of Good vs. Bad spending
Discuss the true nature of Credit Cards: Pros and Cons
Introduce the idea of charity and why people give to others—if possible
Research all grants, bursaries and scholarships. Look into grants at work—your full or part-time job. Perhaps your parents work for a company that offers grants and bursaries. Google grants and bursaries in Canada and be specific. For example, look into grants specifically for women—if you are a woman.
Happy New Year!! What an amazing idea to make a decision or joint decision this January to spend close to nothing—preferably nothing. This time of year is difficult financially for almost everybody and it will be easier than you think to stop spending altogether—for the time being. Get your family and friends involved! Make your priority spending only groceries and cut that grocery list. You have many items in your cupboard, freezer and fridge to plan ahead every week and spend the bare minimum. Make a meal plan every week, freeze soup, casseroles and vegetable dishes. Try and organize potlucks with other people or another family. When considering entertainment, get dressed warm and get outside, go skating, sliding, hiking —there are dozens of free, fun outdoor activities. If the cold outdoors is not your thing, research free indoor events or invite people over to your home. Use up your gift cards, if needed, this month and make sure you return all items you do not need or want—it’s amazing how much money we get back when we remember to return items we do not need. You have 31 days in January to make the most of each day and challenge yourself to not spend money. The less you spend, the more you save for bills and hopefully savings for the rest of the year. Practice positive money spending habits now and you will feel empowered to make this year your best financial year to date. Good Luck! Spend Less! Feel Great!!
It is a smart and responsible idea to include personal finance in your New Year’s Resolutions this year. There are several ways you can improve your financial year if you follow these suggestions then perhaps your goals can lead to a small reward for yourself year-end.
1. Manage your spending. Buying items at 50% off is still spending money. Eliminate wasteful spending, cut back and have a system to call a friend if you want to purchase something over $100.00.
2. Grow your income. If you have $10 or $100 to save just start investing your savings and/or add extra dollars to your superannuation. Visit a financial planner once a year or once every two years—research or ask friends if they know a great financial planner. If you have someone teaching you the language and steps you need to take to secure your future, you are spending your time wisely.
3. Set financial goals. Not only is it important to set long and short-term goals and rewards it is also equally important to talk about them with friends and family. Discuss these goals with your financial advisor and ask for suggestions.