If you haven’t been able to accomplish any of your personal finance-related resolutions or goals this year, don’t feel alone. No one would have been able to predict how COVID19 and its accompanying chaos would affect the economy as a whole.
Although your specific financial plans will depend on your family and current circumstances with regards to income and employment, there’s no reason why you won’t be able to make 2021 your best financial year yet. Below are a few ways in which you can help make this happen for you and your family.
A Budget is Crucial
Although virtually everyone knows that a budget is essential if you want to make the most of your finances, several individuals don’t know how to use this tool effectively. A budget is not simply something that should be written down and then promptly forgotten – it needs to be amended as your financial circumstances change from time to time.
When creating a budget, you will need to know exactly how much income is being received and the full amount of all of the expenses that need to be covered each month. In addition, you’ll need to think about any additional financial goals that you’d like to achieve during the year. For instance, you may want to save up to earn that college degree you’ve always dreamed about or you may even want to spoil your family with that long-awaited overseas vacation once the pandemic is over.
After creating your budget, you’ll need to check that your income exceeds the amount of expenses that must be covered. If this isn’t the case, cuts will have to be made somewhere to rectify this.
Consider a Side Gig
These days, there are more opportunities available than ever before for anyone who wants to earn a little extra cash during their spare time. A few examples can include delivering groceries and/or transporting passengers through the Uber/Lyft platforms. Putting some of your spare time to good use by earning a little extra cash could make all the difference between being able to meet your financial obligations or not.
Eliminate Consumer Debt
Unfortunately, a number of households saw their consumer debt levels escalating during 2020 due to job losses and reduced income levels. This put a severe strain on the budgets of several families.
2021 provides you with an ideal opportunity to do everything possible to reduce or even eliminate as much of this debt as you can and some of the best ways to do this include reducing luxury expenses and doing everything you can to earn additional income that can be put towards debt payments.
Once you have a solid financial plan in place to ensure that monthly expenses are covered comfortably, it’s time to start considering the possibility of saving and/or investing towards long-term future goals such as retirement. Contact our team today if you would like to learn more about ensuring that you’ll be able to provide your family with a secure financial future.Continue reading
The pandemic has resulted in millions of parents around the world scrambling to find ways of entertaining their children such as home schooling, baking, arts and crafts, and various other activities. However, with finances being extremely tight in many households because of parents not being able to work, this can also present an ideal opportunity for them to teach their kids more about the household budget and finances in general.
Below are some easy ways in which you can teach your children how to manage their money.
Help them Set Savings Goals
Helping your child to set a savings goal for that must-have toy or video game will teach them that nothing in life comes for free. You can allow them to earn money by doing additional chores that aren’t part of their daily routine if they need to earn extra cash to save up for the item they want. If you can afford it, offer to match the amount of money your child saves.
Once your child achieves their financial goal, it will help them see the benefit of saving a portion of any money they earn going forward. This will also help set them on the path to long-term financial security when they are adults.
Make Use of Money Apps for Kids
As more and more banking and other money-related services move over to digital platforms, children are being exposed to fewer physical checks and cash money. However, there are several fun and child friendly money management apps available that can help teach them about spending, saving, and investing wisely from a young age.
Don’t Underestimate your Child’s Understanding of Finances
Although your children may be too young to start investing money on their own at the moment, it doesn’t mean that they don’t understand anything about finances.
Children as young as three or four years of age can start being taught the basics of how to use and save some of their money. In many cases, you can open a Junior ISA for your children so that they can familiarize themselves with the ups and downs associated with investing money over time.
Let them Assist when Compiling your Budget
At present, money is extremely tight in millions of households across the country. This means that budgeting the little money you may have more important than ever.
Letting your children assist with compiling your household budget plan will allow them to see what items such as mortgage payments, utilities, and groceries really cost compared to the amount of income you currently have to work with.
Another great way to teach them about saving money is to encourage them to find ways to cut expenses around the house. You could even turn it into a contest to see which child comes up with the most ideas or even the most unusual money saving tips.
If you’re keen to teach your children more about financial matters and are unsure how to go about doing so, contact one of our professional advisors today.
It’s no secret that the earlier your kids are taught how to save, spend and invest their money, the better money managers they will become as they grow older. This will enable them to live independently and manage their lives far better over time as well. Here are a few compelling reasons why you need to start teaching your kids about money as soon as possible.
It Helps them Develop Good Money Habits
A study undertaken by the University of Cambridge noted that in most cases, a kid’s money habits are solidly formed by the time they reach the age of seven. This means that if you are whipping out the plastic to pay for everything from groceries to clothing to school supplies, your kids will think that it’s OK to make all of their future purchases on credit. However, your kids will notice just as much if you are paying cash or using a debit card for purchases and in most cases, they will follow suit as they become older.
They Learn to Earn their Money
Many parents make the mistake of simply handing out allowances without expecting their kids to do any work in return for the money. This not only creates a sense of entitlement over time; it will not show your kids that that they have to earn any money they receive when they become adults. Instead, it’s recommended that allowances be linked to chores that are over and above those that they perform regularly.
They can Learn about the Dangers of Credit Card Misuse
Once your kids turn 18 years old, companies offering them credit cards will inevitably hound them. If you haven’t taken the time to teach them how to use credit cards responsibly, they could find themselves in financial dire straits within a very short time.
They can get a Head Start on Investing their Money
Kids who are taught about money and how investments work from a young age stand a far better chance of being able to manage their funds, as they grow older. If you are actively investing money into various platforms, there is no reason why you cannot teach them how these can be used to enable their money to work for them over time in the form of compounding interest.
They can Practice Setting up a Budget
It’s far better to have your kids learn to budget and make their money mistakes while they’re still living under your roof because financial errors that occur once they’re out on their own will cost them dearly. Providing them with an app such as EveryDollar will not only help teach them to budget even the smallest amounts of money; it will do so in a way that they enjoy – by means of using a phone app.
If you have kids and would like to teach them how to master their finances from a young age, but aren’t sure where to or how to get started, contact us today. Our team will be more than willing to assist you.Continue reading