Responsible Spending Habits-Start In Childhood

Wednesday, November 28th, 2012

Responsible spending habits should start in childhood. If we were all taught how to manage money as children then that good teaching should remain with us as we grow into adulthood.

As a parent we are responsible to our children to make sure they grow up to be productive members of society. One way to do that is to make sure they can manage their own money.

One way to do this is to assign chores to your children and if they complete the tasks you give them satisfactorily, in the time frame you have set then they earn an allowance.

Giving children an allowance for a job well done can be very beneficial for your children, in a number of ways.

For starters, it gives them a sense of accomplishment that they did do a good job and introduces them to the concept financial independence.

Just giving them an allowance does not mean your job as a parent is done, however. Now they must learn about responsible spending and the art of saving money for the things they want.

They may get some instruction on this in their school but the best way to ensure they learn this valuable skill is to teach them at home. Include them, if you want to, to the weekly or monthly bill paying. Let them see what you do to keep the roof over their heads and food on the table.

It might be a good idea to take them to the bank and open up a savings account and teach them how to save a little off of the top of each week’s “pay”. If they are young enough when this is started tell them they will be able to save enough for whatever they want in the future.

It is never too early to start planning their financial future, or even their retirement, at a young age. The sooner the better as a matter of fact.

Learning to set goals in life is as important as learning to manage money. If there are goals set and they reach those goals they will see that anything is possible if they put their mind to it. Even if it is just the latest, greatest toy that comes down the pike.

Parents who do pay their children an allowance can even offer to match whatever funds they manage to save to make major purchases as they get older, like for their first car.

They are no hard and fast rules when it comes to giving children an allowance. You can set an amount to be paid for each individual chore completes or just give a lump sum stipend at the end of the week like you get from your employer.

The amount settled on can often depend on the age of the child. For example the older child may receive slightly more than their younger sibling. Of course, the older child may also have more responsibility as well.

Learning about saving and responsible spending is a something that we should all learn as children so we can take it with us into adulthood.

Child Saving Account

Saturday, October 27th, 2012

I think many of us have learned a valuable lesson lately about living within our means and saving a little more. Now we can teach our kid’s the same valuable lessons and help them open their own child saving account.

If your child is earning a little money from allowances it is a great opportunity to help them learn this valuable life lesson. Taking your child to the bank and allowing them to open their very own account can provide them with an enormous sense of responsibility.

Opening an account for your child is not a whole lot different than opening one for yourself. There are some things you will want to consider.

Here is a list of some things to look into before you choose the financial institution to open your child’s account:

1. Most people will just start at their own bank and that is fine if you want to do it that way. But, many banks today are getting quite competitive in this market.

Some banks may offer a little higher interest rate, for example. They like to get the children as customers early knowing that most of them will continue to be customers when they grow up.

Banks also know that if a parent gets an account for their child at a certain bank the parent is much more likely to remain a customer too.

For these reasons it might make sense for you to spend some time and look at several banks (and credit unions) in your area. Compare rates as well as what other perks your child will receive from their account.

For me, I would stick to offline banks for a child’s account. Why? Because the child can actually physically take their money to the bank themselves. I think it will make the experience seem more ‘real’.

I feel like the child will experience a sense of pride actually going in them self and making a deposit. It’s just not the same online.

2. If your child is under 18 the bank will likely require you to either set the account up as a joint account or to name a director for the account.

For most people, this will just be one of the parents. That will make it the easiest. Remember that a director of the account will have full and total access so if you choose to set someone else as a director, only choose someone you trust completely.

3. Obviously, depending on the age of your child, you might need to help them with deposit slips, etc. To help them get the most of out their banking experience, you may want to help them set up some sort of a chart or graph where they can visually see their money growing.

This is yet another way for your child to get excited by the process. It is probably a good idea for you and your kid, if they are old enough, to set limits.

It’s usually most effective to allow a child who is a little older to have some access to their money. If they never get to touch any of their money they are likely to shy away from saving when they are older.

It’s best to allow them limited access to their money. Say that out of every $100 they save they are allowed to spend $25 of it. You choose the exact percentages but allowing them the fun of spending their money is important too when you set up a child saving account.

Child Identity Theft-Protect Your Childs Future

Thursday, April 5th, 2012

Believe it or not child identity theft is a very real thing. You need to protect your child’s identity just like you would your own. If you do not protect your child’s identity then their social security number can be stolen and used for illegal purposes. Your child’s credit will be ruined before they are even old enough to use it themselves.

So instead of selling your soul to try to fix your child’s credit rating after the fact then protect it right along the way just like you do your own. You will be a lot happier and your child will have all the advantages in life that everyone else has.

It is so important to do everything you can to protect your child’s identity. If their information gets into the wrong person’s hands they could be dealing with a lifetime of credit and child identity theft issues.

As parents, we all want to protect our children. It wasn’t until fairly recently that we learned that that protection needed to extend to their personal information as well as their minds and bodies. It absolutely blows the mind that someoine could even come up with some of the transgressions against children that they do. I think people who prey on children, in any manner, have to be quite evil and should be put away for the rest of their lives.

There are several things you can do to actively protect your child’s identity and the first of thiose is be very careful who sees your child’s personal information. The less you give it out the less chance it will be stolen. There are relatively new laws out there that limit the people who get to see someone’s personal medical information and it has helped the whole situation quite a bit.

Another thing to do is to closely monitor what your child is doing on the internet. They msy be putting themselvele on the s in danger and not even know it. Do not let them order anything off of the internet, you do it for them. Use the parental controls that are available from your service provider to control where your children are allowed to go on the web.

Even the “social networks” can be dangerous places where the identity thieves try to trick your children into giving out their or your personal information. Caution your children to never give out anything that could let someone find your home. Put the fear of God into them. Tell them in no uncertain terms that if they let someone bad find their home then not only could they be hurt or worse but so could Mom and Dad. This may make them think twice before giving out their telephone number and address to a total stranger online.

Just remember to do all you can to eliminate the risk for child identity theft so your child has all the opportunities to mess their credit up all by themselves just like the majority of the rest of the population has.