Jason Karp asked:




From CD’s to cell phones to movies with their friends, teenagers have a way of draining your pockets. Educating children early on money management skills will undoubtedly pay off in the long-run.

Don’t just give your teens an allowance; teach them to earn it by working, i.e. doing chores. Teach them to save money, by opening a savings account and depositing a portion of their allowance each week. It is important to make rules on how frequently they can make withdrawals. Have them keep a log of how much they spend and what they spend it on. This will not only show them what they are wasting money on, but it will allow you to keep tabs as well.

OLDER TEENS

A recent article in News.com claims,

“Some children get as much as $50 a week pocket money… But research shows teen lifestyle costs a packet.” The study showed that older teens are earning an average of $245 per week – A combination of working, pocket money, chores, and/or money gifts received.

As teens get older and begin working, this is not a reason to disregard the rules of money management. They should still be required to put a portion into their savings account and they should still be held accountable for their spending. This may be a touchy subject and, “It’s my money,” is sure to come up, but rules are rules, and you must stick to them.

ON THE SAME PAGE

It is important that everyone work together. If you have a spouse, you must be in agreement with the game plan. If one parent gives in, it doesn’t benefit anyone. There is no one quick fix to solving financial problems, but the best method is prevention. Teaching your children money management skills will let them know early on that they have to work for things that they want, that they must save money, and that they should spend their money wisely.

TIPS AND IDEAS

Here are a few tips that will help you create a game plan for your child:
Create a realistic budget and stick to it. If you have younger children, adjust their allowance, as they get older. If the chores have not been completed, don’t be afraid to not give them allowance for the week. DON’T BUY ON IMPULSE. Don’t get sucked into the “Please, please, please I gotta have it,” line. If you have an older teen, consider giving them a cash card instead of cash. You can load their allowance onto the card and they can use it at stores, or make withdraws at an ATM machine. At the end of the month, you can sit down and review the purchases made. Make sure that a portion of that goes into their savings account. Consider giving your child a “bonus” for doing well in school or taking on extra chores. This will show them that you can be rewarding for doing well.

Taking the time to teach your children good money management will probably be one of the greatest investments in time you will ever make. These lessons will prepare your children with the skills to secure a good financial future.

Gertrude

Joseph Kenny asked:




Foremost among the reasons that lead to marital discord are financial issues. Most couples are unable to or find it extremely difficult to broach the topic openly and honestly. Although the reasons may be different for each couple, being disorganized and unable to communicate are common.

In order to avoid serious consequences it is necessary to for couples to implement the art of budgeting and money management. Couples should avoid conflict over purchases made by each other and learn to respect each other’s opinions.

The initial step is to sit down and discuss the income and expenditure. If there is a lack of communication, which is the case most of the time, this discussion could end in a heated argument. It is important to decide on a strategy before hand, to prevent an ugly situation. For example, get up and drink a glass of water, take a few deep breaths and go for a short walk and then resume the dialogue or invite a friend to be a part of the discussion.

Make a list of all the bills that are pending and the amounts, highlighting the dates on which they need to be paid. Compare this with the joint income and in case of inadequate funds, try to find ways to reduce expenditure or increase income.

Document all facts and figures so that they are easily available to your partner. Make a separate file for documents and papers related to insurance payments, credit card statements, car installments, monthly mortgage, utility bills and expenses. Remove them from the file only when they are paid. Decide on a common place accessible to both, to keep checkbooks, receipts and all relevant financial information. If there have been withdrawals from the joint account, each partner should let the other know the reason.

Such discussions should be scheduled regularly. Financial planning should be an essential part of the discussions. Financial issues become stressful if not handled with care. Make a plan to ensure that both of you take turns to maintain checkbooks, file taxes and track investments. This will allow each partner to be aware of the financial details. Discuss and create a budget to suit both of you.

Try to visualize finances for the next five or ten years. Large amounts of money are required for buying a house or a new car. The different ways in which you could save for these purchases should be discussed openly.

When you set your goals, devise a strategy to achieve them. The plans would mainly comprise of eliminating debt and setting up a savings plan. One excellent way would be to save a certain percentage of the monthly income in a tax deferred account. You can also save and invest in securities and bonds.

Financial mismanagement is generally a key factor in wrecking a happy marriage. In order to keep finances on the right track, proper communication is essential. Regular discussions and mutual decisions on the family budget and savings are sure ways to maintain the harmony among couples.

Tyrone