9 Simple Ways to Teach Children About Financial Responsibility
If the current economic recession has taught us anything, it's that financial education and responsibility are vital in today's fast-paced world. All too often, however, children grow up immune to the financial world around them. As a result, they're often ill equipped to manage their own finances when they become adults and leave home.
With the economy in the news almost daily, now's a perfect time to start educating your children about how to manage money more responsibly. The tips below can help you get started.
1. Give an Allowance
If your children don't have money of their own, it's hard for them to really grasp the value of it. So if you don't pay your children allowance, consider starting. You don't need to pay a lot–a little goes a long way. The most important thing is that your children learn the value of completing even small chores around the house to earn their own money.
2. Make a Plan and Set Guidelines
Before you start giving your children an allowance, sit down with them and set some expectations. Discuss the specific chores and timelines for completing those chores, as well as the amount of money they'll earn for each chore and when they'll be paid. This helps instill a strong work ethic in children as well as drive home the message that money is earned, not given.
3. Save for the Future
As part of your financial discussion, consider implementing a savings rule for your children. For example, make a rule to save half or one-third of their allowance. You can go with them to the bank to establish a savings account in their name and then take them to make their deposits. Or, if your children are still young, you can set up a special savings bank. Let your children decorate a jar or can to give it some personality and then have them deposit a portion of their money in that special bank whenever they receive their allowance.
4. Educate on Interest
Talk to kids about savings accounts and the value of interest. If you start a savings bank at home, offer to pay your kids a small amount of interest on their savings. Once a month, sit down with your kids and count how much they have deposited, how much interest they have earned, and how much they have as a result. Compare the amounts each month, so your children can see the benefits not only of saving, but also the benefits of compounding interest.
5. Save for a Big Purchase
The next time your child shows you an expensive toy or big-ticket item that he or she wants, consider striking a deal where the child saves up for half of the cost. For instance, consider a "match plan" in which you match every dollar your child saves for the item. This will not only teach the value of saving, but also help your child learn to budget and plan for expenses–which is a lesson that can pay off in the future when your child becomes a credit-card-carrying adult.
6. Take Your Children Shopping
Take your children grocery shopping with you. As you go down your shopping list, have your children help you compare the prices of the different brands, sales, and quantities per package. You can also have your children try to keep a running tally and make a guess of what the total cost will be.
7. Set Them Free to Shop
Once your children have a sense of money matters, you may want to take the lesson up a notch. For instance, when your children need new school clothes, you try giving them the money and putting them in charge of what to buy. Then, as they shop, help them compare the prices and number of items they can purchase within their budget. You could even purchase a Visa gift card with a specific dollar value on it. That will help your children not only learn about the value of a dollar and making smart purchases, but it will also introduce them to the credit card system, in which money may not seem real because it's unseen. In today's electronic financial world, this lesson will become more and more important as your children get older.
8. Teach by Example
Remember, children are always watching. So if you educate them on saving for purchases and budgeting but make rash decisions on big-ticket items yourself, you may find them learning a different lesson than you intend. So make sure you follow your own rules when it comes to spending, saving, and fiscal responsibility. You may even want to consider discussing your donations to help your children understand the importance of supporting charities.
9. Be Consistent
Teaching children about money isn't something that can be done in a short period of time. Children are always re-experiencing their environments and testing their boundaries. So make sure that once you implement an allowance, savings, and budgeting plan that you stick with it. Over time, you may decide to raise your child's allowance or change the terms of their savings. But those shouldn't be quick decisions. Instead, if you and your child want to revisit the financial plans or to add a new element, take the time to sit down, write out what the changes will be, discuss how this will impact the child's level of responsibility, and make sure you end the conversation with agreement on what will happen going forward. Then, be consistent; don't waiver.
At times your child may beg for an exception. But by being consistent, your children will be much better prepared to deal with the real financial world that they'll face when they grow up.
Park Avenue Properties
Tanya Stevenson-Becht & Sandy Daniels
office@parkavehomes.net
You've heard about the health benefits of laughter, but what really happens when you laugh that makes it so beneficial? Doctors and scientists have a few ideas.
Exercise Your Heart and Abs–It turns out that laughing is a lot like exercising. A good laugh can increase your heart rate, exercises your diaphragm, and even contracts your stomach muscles.
Burn Calories–With the similarities between laughter and exercise, it shouldn't come as a surprise that laughing helps you burn calories. In fact, one study found that 50 calories are burned in 10 to 15 minutes of laughter.
Reduce Stress–There's actually a physical reason that laughter reduces stress. In addition to being a great emotional release, laughter reduces the number of stress hormones (such as cortisol and epinephrine) in your body and helps boost good hormones like endorphins.
Increase Blood Flow–Scientists have found that blood vessels function healthily when people watch comedies, which means they expand and contract more easily and help blood flow normally. This is in stark contrast to the tightened blood vessels that were found in people after watching a drama. In short, laughter improves blood flow, which helps prevent heart attack and heart disease.
Improve Cholesterol Levels–Recently, researchers have found that people with Type 2 Diabetes who watched funny videos for at least 30 minutes each day had better cholesterol levels after just two months.
Strengthen Your Immune System–There's also evidence that laughter helps boost immune cells and antibodies, making your system better prepared to fight viruses. So, a little laughter not only makes you feel better in the short-term, but also can help you remain healthier in the long-term.
In addition to all of these physical reactions and benefits, laughing is beneficial for your mental health, too. It's a great anti-depressant…not to mention a great way to interact with friends and family while you strengthen your social relationships.
Park Avenue Properties Tanya Stevenson-Becht & Sandy Daniels office@parkavehomes.net
It is official the Home Buyer Tax Credit has been extended! Not only has it been extended, but it has also has been re-written to include current home owners who have owned a home for 5 of the past 8 years ! If ever there was a time to buy a new home, its now! Here is a short summary of the changes (or in reality the "upgrades") for the tax credit that was signed November 6, 2009.
Summary of the "upgrades":
à The expiration date for the credit will now be April 30, 2010.
à First-time buyers who have not had interest in a principal residence for three years are still eligible, and the maximum amount remains the same $8,000 for married couples, $4,000 for those filing separately. (That's still less than 6 months away!)
à Current homeowners, who have consecutively maintained the home they want to sell as their primary residence for five of the last eight years, are also eligible. However, the maximum amount for those homeowners is lower: $6,500 for married couples and $3,200 for those filing separately. (This is the best upgrade of them all! Now a much larger population will be able to take advantage of this amazing opportunity. Who couldn’t use an extra $6,500)
à The tax credit may not used to purchase a home for more than $800,000. All buyers who want to get the credit must include documentation of the purchase on their tax returns.
à The income limits for both tax credits have been raised to $125,000 for single buyers and $225,000 for married couples.
The National Association of Realtors has posted a very thorough and informative article on the Home Buyer Tax Credit. To read about it Click Here!
Click Here To View a Video On The New Tax Credit!
Park Avenue Properties Tanya Stevenson-Becht & Sandy Daniels office@parkavehomes.net
It is official the Home Buyer Tax Credit has been extended! Not only has it been extended, but it has also has been re-written to include current home owners who have owned a home for 5 of the past 8 years ! If ever there was a time to buy a new home, its now! Here is a short summary of the changes (or in reality the "upgrades") for the tax credit that was signed November 6, 2009.
Summary of the "upgrades":
à The expiration date for the credit will now be April 30, 2010.
à First-time buyers who have not had interest in a principal residence for three years are still eligible, and the maximum amount remains the same $8,000 for married couples, $4,000 for those filing separately. (That's still less than 6 months away!)
à Current homeowners, who have consecutively maintained the home they want to sell as their primary residence for five of the last eight years, are also eligible. However, the maximum amount for those homeowners is lower: $6,500 for married couples and $3,200 for those filing separately. (This is the best upgrade of them all! Now a much larger population will be able to take advantage of this amazing opportunity. Who couldn’t use an extra $6,500)
à The tax credit may not used to purchase a home for more than $800,000. All buyers who want to get the credit must include documentation of the purchase on their tax returns.
à The income limits for both tax credits have been raised to $125,000 for single buyers and $225,000 for married couples.
The National Association of Realtors has posted a very thorough and informative article on the Home Buyer Tax Credit. To read about it Click Here!
Click Here To View a Video On The New Tax Credit!
Park Avenue Properties Tanya Stevenson-Becht & Sandy Daniels office@parkavehomes.net
Operation Christmas Child
This Year Our Office is Joining With The Samaritan Purse As a Drop-Off Location for Operation Christmas Child!
What Is Operation Christmas Child:
Operation Christmas Child is a unique charity event in which individuals all over the United States pack shoe boxes full of various items such as tooth brushes, socks, crayons, small toys, etc., and then Samartian Purse takes these shoe boxes and distributes them around the world to children.
Last year they provided 8 million children with one of these special boxes in over 95 countries!
Get Involved:
Making a shoe box is easy! We welcome you to stop by our office or visit The Operation Christmas Child Website for information on what to put in your box.
Send It Off:
National Collection Week is November 16-23. We would love for you to stop by our office (an official drop-off location), have a cup of coffee & a cookie, and send your box off with love!
Our office is located at 6170 Lehman Drive Colorado Springs, Colorado 80918
Park Avenue Properties
Tanya Stevenson-Becht & Sandy Daniels
719-548-9900
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