Simply Junior

Money is a hard thing to come by these days. Jobs in this world are scarce because everyone is looking for one and the competition is stiff. You have to be at your best in finding a job and holding on to your money. The same goes for children. Parents should spend some time teaching children about money.

Is is necessary to teach them about money? You bet. Children want to have money of their own, when the finally learn what it is good for, and so they should. But, teaching them the right way is the most important thing. Money has value, and, if not used wisely, can be gone in an instant. This economy is a very good example of that.

Too many times have people seen families that have good cash flow just lavish their children with money and objects. And, when the money is gone, they just give them more. When they become adults they haven’t learned how to deal with less, and therefore are poor managers of money. 

Those that are taught at an early age how to save their money, and spend it only when needed are going to be able to live on their own it leaner times. It is these children who are told to save their money for a rainy day and not spend needlessly that will survive in hard times.

Teaching children about money is a very wise thing to do for their future. It ensures they will become responsible and good money managers. Not teaching them the value of the dollar and saving will make sure that they are irresponsible and will rely on others to give them whatever they want. 

They do not become independent and resourceful. Parents have a duty to their children to speak to them about proper spending and saving.

This trick is not really anything special. I actually made it up one day when I was fed up with my daughter just blowing all of her money on junk.

I had to give her fifty dollars as a reward for getting an almost perfect school report, however I held it off as long as I possibly could. So when she asked for the reward I had promised I started to think how I could slow down the disappearance of the $50 note I was about to give her.

Money delayed is money saved?

I had already stalled her for a few weeks, saying I didn’t have the money, or that I had to get it out of the bank. I know this sounds like a scam on my part, but if only you knew what money this teenager wastes. Anyway I thought for a while and came up with no more delay tactics until I went to my purse and pulled out the $50 note. When removing the note from the purse it tore in half. For a moment I thought to myself, “oh no, I can’t give her that”, and then it hit me.

Being sneaky to save money?

I quickly went around the house searching for a roll of sticky tape, which any normal person would use to fix the broken note. Not me though. I grabbed any sticky tape I could find and hid it all where my daughter would not find it. Then I went to her and gave her the broken $50 note, explaining how it had torn, but would be alright to use once stuck back together. Of course she did not mind because she knew it would be easy to fix.

My brilliant plan worked for a few days as she could not find the sticky tape, and being a teenager, was too lazy to do anything about it. My $50 survived 100% longer and I was happy. This would delay my daughter from asking me for money for a few more days as I would just say “but you have $50, you do not need my money”.

After I had played this little money saving trick, I started to think of more ways to do a similar thing:

1. Glue some money together (coins) with water based PVA glue so it can be dissolved later to use the money.

2. Freeze the money in a block of ice like the people freeze their credit cards.

3. Transfer the money through internet banking so there is no cash laying around. A bank that does not have an ATM card attached.

4. Put it in a moneybox that they would have to smash to get the money out of.

5. Hide the money in the house and let them search for it for hours.

Please note that ii is illegal to intentionally damage or rip money in some countries. But if you do come across a ripped note, be sure to keep it to give to your children.

Now, more than ever it is important to keep track of our spending. We are looking at a few months of hard times and if we are going to survive we need some strategies. Strategies that are not only easy to implement now but also sustainable over the long run. What follows is an amazing strategy that can change the way you look at money as well as spending and give you the edge you need to stay on track during otherwise trying times.

The first strategy we are going to look at is called “Test of Time.” A simple concept that has been used many times during periods of economic struggle, when making ends meet meant surviving. It is a simple idea really; it has to do with combating the impulse buying that so many of us do. That’s one of the things that makes eBay so popular is people selling things they don’t use or need anymore. Something they bought on an impulse that maybe really doesn’t fit into their life it just seemed like a neat idea at the time.

Or maybe someone else had one and you decided you wanted one too. Or you read about in your favourite magazine, or saw it on TV. Whatever the case, you bought it on an impulse. You just went out, found it in the store, and bought it. So what is the “TEST OF TIME” anyway?

It starts with a little digging. Look into product reviews, search for the product ratings. Find a nice picture, to put in your wallet or on the fridge. Then put it out of your mind. Chances are you can wait a day or two before you absolutely have to have it. See if you can rent or borrow one. In any case, wait at least a week before you buy, borrow, or rent it.

If you still think it is a great idea, determine the latest possible moment that you absolutely need it and leave your purchase until then. If you only need it for a day or two, try to rent it first. Why lay out all that money for a one time use?

If after a few days or a week if you haven’t thought about it for a while, do you really need it? Be honest, if you can go on day after day and not give it a second thought do you need it that bad. Now, if you still feel you need it, just before you buy, maybe even right in the store, or sitting at the web site, convince someone else you need it. Whether it is your spouse or partner, a good friend or family member, you need to convince them that you just can’t do without it.

Listen to what you are saying, if you can convince them and yourself that you truly need it, that it is not just a one-time thing, that it is worth the cost, and that you are willing to give up something else you may want of equal value to buy it. Then go ahead and buy it, it has withstood the test of time and you still need it as much as you ever did.

Doing this will help you to avoid making impulse purchases that are often the biggest expense in our lives. It is not going to be easy, we are an immediate gratification society so changing the way we think about buying won’t happen overnight. But if you stick with it and use this strategy, particularly for the bigger purchases in your life, you might be surprised at how much money you will save.

Establishing good saving and spending habits in your kids at an early age may not be as difficult as you think. It will require a little due diligence on your part but is well worth the effort in the long run. The following tips along with a running dialog can help you jump-start your kids onto the road to financial security.

1. Match their savings dollar for dollar…or quarter for dollar. What better incentive for kids to save their money than for them to know that for every dollar they put away, it will be matched by a given amount. It’s kind of like “free” money. Okay, so it may not be free for you, but you’re helping establish the habit of saving and, in the long run, it will have been worth the extra money you had to put up.

2. Give them interest on their savings. This is another example of “free” money. And depending on where the interest comes from, it may even be free to you. Opening a savings account at a bank or credit union will usually mean your child will receive interest/dividends on his balance each month. But keep in mind that this interest is typically not a whole lot, especially for the kind of balance a young child may have. And not many kids get excited about seeing 12 cents deposited in their account. So consider setting up your own interest payment plan for your child’s monthly ending balance. Ten dollars earned on a balance of $100 (10% interest) is a lot more appealing than 10 cents earned. And you can vary the amount of interest you give as their balance grows. Which leads us to the next category…

3. Illustrate the power of compound interest. Show your child what can happen to her money over time if she saves it and is earning interest on it. This is called compound interest, the building of an account’s value on itself. You’ll probably have to go out several years for her to get the full impact of this compounding. A great way to visually illustrate this is through a software program called KidsSave by Kidnexions. Included in this virtual savings program is a section where kids can experiment with different savings scenarios to see what happens to their account money over time. Kids get to see in graph form the curve that is made through compounding interest which can be a very enlightening experience…even for adults!

4. Give them an allowance. An allowance is a popular way to get money into the hands of kids. Most parents consider an allowance as an “earned salary” for doing chores. But once you hand over the money, how do you keep kids from spending it all? Consider having your child save a portion of it; the rest is theirs to spend. That way we get our cake…the saving…and your child gets to eat a slice of it…the spending.

5. Have your child set up a personal financial goal. Give your child a concrete reason to save. That really cool pool toy that he just has to have. Help him create a plan to save the money to buy the item himself. Maybe you could match him dollar for dollar. But whatever you do, start simple. Make sure the goal is easily attainable and make it happen in a relatively short period of time. Attaining success quickly will increase the chance he will want to set up another goal, at which point you can increase the time or the amount they need to save.

And, of course, kids are notorious at watching what you do when you’re not looking. If you model good saving and spending habits, chances are, your kids will probably do the same.

Below are seven methods for saving cash that you can implement now:

Saving Cash Tip 1 – Examine Your Finances

This is where it begins. You need to be aware of exactly what is coming in and what your outgoings are on a monthly basis. The biggest reason why people spend too much money and often money they can’t afford is because they are not in control of there money.

Saving Cash Tip 2 – The Things You Need Only

Calculate monthly what you have to spend money on. This will probably include house payments, groceries, commuting expenses, utilities (electric, gas, telephone), memberships, car loans and so on. Once you have deducted this from your income you will only have so much available for your monthly budget to spend on other things. It is this area that you need to look very closely. Don’t waste money on non-essential items.

Saving Cash Tip 3 – Pay With Debit Cards Or Cash

Another simple way of saving cash is by using a debit card or cash when buying things. This is far better than using credit cards as you may think there is no limit when using credit cards. When you use cash then this may make you think again about purchasing unnecessary items as it will significantly reduce the cash you have in your pocket.

Saving Cash Tip 4 – Record All Of Your Outgoings

Saving cash is often a mindset issue – because you don’t know your financial status you feel at liberty to spend relentlessly. By specifically recording everything (yes everything) of your expenditure you will soon build a clear picture of your spending habits. If it’s possible to get a receipt for something then get them.

Saving Cash Tip 5 – Find Coupons And Use Them

Coupons are to be found in many publications. You probably receive newsletters from your favorite supermarkets and other shops so try them out. You can also get coupons from the Internet. Google the shops that you frequent and see what special offers they have at the moment. You could even plan your weekly menu based on these offers.

Saving Cash Tip 6 – Keep Your Visits to the Shops Short

You can keep your visit to the store brief by creating a list of exactly what you need before you go to the shops. Research has revealed that shoppers who stay longer in shops are more likely to spend more money than those that opt for the shorter stay. Also shoppers that visit the stores without a “list” will be much more susceptible to impulse buying as they do not have a plan to follow.

Saving Cash Tip 7 – Switch Off Unused Appliances

Saving cash on your electricity bill is simple – just turn everything off that you are not using or you are no longer using. How many times have you left your TV set on “Standby” the whole night? Stop this now – it will cost you a fortune over the longer term. Also if your heating and/or air conditioning is controlled by thermostat reduce it to a sensible level. When you are out working or somewhere else program the timer to turn it off and turn it back on again a short time before your planned return time home.

Saving cash is really all about discipline and conditioning your mind to not only keep tabs on your expenditure but also to examine your spending habits and those of others in your household. It can be difficult initially but when you get into the habit it’s pretty easy. A tip that will really help you is just to think to yourself “Do I really need this?” when you are thinking about spending money on an item that is not essential for you. Give it a try it works every time.