Tag: financial literacy

Teaching Children about Saving Money

Children are great learners. Maybe it’s because they have not yet developed the attitudes and behaviors that many of us have. They control or have some input, as consumers, on a lot of household spending. They do not need as much help learning to spend as they do learning how to save.

Teaching children about saving money and giving children a better understanding of what is at stake is essential for their growth and development with money. Therefore, consider introducing saving and teaching your children about saving money, as early as elementary school or even sooner. Preschool-age children are curious about money and actually want to accept some responsibility and may welcome the opportunity to save money. There is never a better time to teach children about money and saving. Even if your kids are a bit older, there is no time like the present.

Setting kids on the path to becoming good savers is not difficult and can actually be fun.  The following are a few activities that parents can do with their children, even if they do not feel financially well informed themselves.

  • Buy or make a piggy bank and decorate it to help children save money. This can be an engaging activity for the parent and child. This activity can also get your children excited about saving. Let them get as creative as they like, this will help them feel connected to the saving effort. 
  • Help your children set and work toward a modest, short-term savings goal. For young children, it can be something like a special toy, or video game. Something that they can reach fairly easily. For teens, the goal can be more significant, like saving for a class trip or the prom. Resist the temptation of starting with goals that are too big and too far in the future. If you can afford to, offer your kids age-appropriate extra jobs to earn money.
  • Encourage your child to put coins and savings into the piggy bank. If the bank is transparent, the child will be able to track progress visually. Piggy banks are great for children because they enable immediate action, a place to save gifts or allowance right away. 
  • While you are teaching your children about saving money, consider setting a family saving goal for something like a fun vacation. This is a great opportunity for parents to set a good example, regardless of how they have managed money in the past.  Additionally, initiate a conversation with your children about money and finances. You and your family can also work together collecting loose change or maybe having a yard sale to help establish saving as a good habit and a family value. 
  • You can also help kids become good savers by reading money related stories and playing money games with them. Any experiences with money, and how to do good things with money will help teach children. Additionally, there is a wide array of financial education programs and resources available to help you teach your children about money and saving. 

Remember, when teaching children about saving money, if your children’s first saving experience is exciting and fun, they are more likely to want to do it repeatedly. And they can never be too young to learn something about money. Remember, they are great learners. Take care.   

How to Control Leaks in Spending

Does it seem you never have enough money to buy the things you would like to or need for your family? If you answered yes, you may have some leaks in spending. That means you are spending money without knowing where it is going. This is a problem that can threaten your financial security. Controlling leaks in your spending can help you get more of those things that you want for your family. Below are some tips to help in control leaks in spending.

1.Keep meaningful records of where your money goes.

keeping a record of your spending will show where your money is being spent. From this record you can decide whether you should make changes to your spending plan and what changes to make. As you keep a record of your spending, you will begin to see areas that you will be able to cut back on or eliminate. 

Spending is a leak only if the spender is surprised at the amount spent and feels that it is not worth the money.

2. Plan to spend your money to control leaks in spending.

Planning to spend your money can be well worth the effort. That is because it can help you spend your money wisely rather than letting it disappear without a trace. Start with your writing down your income, and then write down your spending categories and how much money you will allocate to each one. With careful planning, you will begin to get many of those things you wanted for your family.

3. Live within your means.

Living within your means, means that you are not spending more than you make. You are using your money wisely and not spending money on things that you cannot afford or pay for right now. If you live within your means, you will never need a credit card or small revolving credit loans. 

4. Buy only for what you need or use.

Buying in bundles or buying more features than you need, or use will slowly drain your spending plan, because the little things add up. For example, if you are not watching those extra channels on cable or using your TV or movie subscription service like Netflix, or using extra features on your phone, consider scaling back to what you do use to cut down on cost.   

5. Plan your shopping trips to control leaks in spending.

Before heading out to the store, take note of what you have and what you need. Try not to shop when you do not need anything. For example, going shopping when you bored or going shopping just to kill time.  Have you ever walked into a store to get one thing and came out with a cart full of merchandise? Where all these items necessary? How will this purchase affect your budget? When you are going shopping, making a list beforehand and stick to it. This will prevent you from going over your budget and making unnecessary purchases.

Just stopping these leaks in spending will help you purchase some of the things that you want to for your family. Additionally, by tracking spending, you will begin to see areas where you will be able to where you can save money by cutting some expenses. Try these tips, they can help you control leaks in spending and comment below. Take care.   

Spending Plan Tips for Graduates

Congratulations! You finally made it and graduated, and now it’s time to face a different world. And that includes planning to spend your money. Keep the following spending plan tips for graduates in mind as you get out in the world and start working your first real job.

Use a Spending Plan and Plan your Spending

You are possibly going to have more money than you ever have. It’s going to be a smart move, on your part to plan to spend it. Money is good for three things, and spending is one of the three things, so it’s okay to spend just spend with a plan. 

Sit down with a piece of paper and a pencil and just write out where you are going to spend your money; how much, where, and what for. 

By doing this, you are creating a spending plan. Later you may want to move to a spreadsheet or app, but to start, use paper and pencil, keep it simple.       

Tracking Your Expenses helps You to Be More Aware

Track your spending if you want to manage your money better. There are lots, and lots of ways to track your spending…you pick one. You can track by app, spreadsheet, or on your phone, and it does not matter which as long as you track.

Record every expense every time.

Some expenses are just easy to forget. Here I am mainly talking about things automatically drafted, like the streaming subscription or maybe a credit payment. Car insurance payments every six months or once a year is another. Keep these expenses written down in your log so you do not forget them. And get a receipt from every place you shop or eat; this will help when it comes time to remember and record.

Also, contingencies and emergencies are going to happen. Do not forget to save for these. A good emergency fund will cover expenses for a couple of months and give you peace of mind.   

Again, congratulations! You have worked hard, sacrificed, and now it’s time to celebrate. After your celebration is over, start planning your spending and use these spending plan tips for graduates to creating a spending plan that works for you. It will benefit you as you grow in your career and life. Take care.   

To Do Better with Money Track Your Spending 

If you are not tracking your income and expenses, you can’t manage your money effectively. To do better with money track your spending.   

Tracking your spending, on the surface, appears to be straightforward and simple, but it can be a complex process and quite difficult. 

It takes consistency to track your spending which is the hard part.  And tracking your spending can be overwhelming.   

To deal with this difficulty I tell clients to get into the habit of consistently recording your expenses. Use can use any type of log or spreadsheet, even your phone, to record expenses.

Whatever you use as your log, even if it’s a piece of paper, every time you receive money, you should record it in your log. 

Whether it’s from a paycheck or gambling winnings, record it in the log. And every time you spend money, whether it is a bill or that cup of morning coffee, record it. 

Track Your Spending Every time, every time, every time!

Tracking your spending makes your spending more real. You will begin to see it. You will see it come in and go out and begin to see it as a tool to help you reach financial goals.

It will give you a sense of control.  

Your awareness of your money and your behavior with money will sharpen, allowing you to make changes which will improve your financial situation. 

This is an important money skill. 

Here are a few tips to help you in tracking your spending:

  • Make it a routine.  Once you get into the habit of tracking your spending, I promise, it will get easier. Always, do what works for you. No one system or way is perfect for everybody. The important thing is to track your spending. How you do is up to you!
  • Be more careful with transactions that are easily forgotten. Some transactions, online transactions, transactions without a receipt, can be quickly forgotten. Take special steps to remember these. 
  • Get a receipt for everything. There are not too many places where you can spend money and not get a receipt. If they do not give you one, ask for one. Additionally, make it a habit of putting all your receipts in one place so that you do not forget where they are.
  • It is best to record your transactions daily. Although you can track expenses once a week, you may find this hard to do. By tracking expenses daily, you do not run into the problems that you would by tracking them weekly such as I can’t remember a transaction or can’t find a receipt, etc.

Recording expenses will make you more connected to what you spend. 

It will make you think more about each purchase, and you will begin to see if your purchases line up with your values.  This may help you to keep unnecessary spending under control.   

Tracking your spending is a rewarding process. 

It will paint a picture of your spending habits as they exist and not as you think they exist.  You can then use this information to create a spending plan, or, at the least, to serve as a picture of where your money actually goes.

How do you track your spending?  Share your thoughts and subscribe to the GoldenRules Blog and learn how to create a winning spending plan for you and your family. 

Inflation and Your Spending Plan

Inflation worries are everywhere as you cannot listen to the news without hearing the word inflation. What does it all mean for your spending plan or budget?

Inflation fear is everywhere. Prices are rising higher and higher and, you cannot listen to the news without hearing the word inflation. Inflation and your spending plan, what does it all mean?

What Is Inflation?

Inflation is the decline of purchasing power of a currency over time. It’s reflected in the increase of an average price level of a basket of selected goods and services in an economy over time.

The rise in prices, expressed as a percentage, means that your dollar buys less than prior periods.

Inflation can raise the value of tangible assets like personal real property and erode the value of cash holdings.

What Causes Inflation?

An increase in the supply of money is the root of inflation, and this can play out through several different mechanisms in the economy. However, in all such cases, the money supply increases and your money loses its purchasing power.

Working With Inflation and Your Spending Plan

Below are some tips to help you stay with your spending plan during times when your money loses some of its purchasing power. 

Create a Spending Plan

One of the best ways to beat inflation is to get on and stick to a spending plan to ensure you are paying attention to how much you are spending.  

This will ensure that you are watching what you spend, and only spending what you plan to spend. Regardless of how inflation affects the cost of something, like gas.

Be sure to set spending plan limits for things inflation might affect, such as clothing, food, gas, and housing.

Allocate your money at the beginning of the month, and then stick to the spending limits you have set.

Be flexible by adjusting spending amounts between budget categories if need be but resist the urge to dip into emergency savings and other funds. 

Your spending plan will help you determine your spending priorities. And your spending plan priorities will help you decide what items are the most important for you to spend money on and which you can pass on. 

Look for Cheaper and Free Alternatives

You can beat inflation price increases by looking for alternative and less expensive store brands. Additionally, using coupons and shopping at bulk stores can help you save money on your spending plan. 

Consider cutting out unnecessary expenses like the gym membership or your daily coffee if rising prices are eating into your spending plan.  

Explore free and cheaper things to do in your area to help beat inflation. You could take advantage of free shows and events, and some museums that offer free admission. 

Choosing to rent a movie and stay in and cook a meal instead of eating out is always cheaper.   

Remember Your Priorities

And always keep your financial priorities and goals top of mind. 

Do not overuse credit cards and pile up debt during inflationary times that you will have to take care of later.

Additionally, if you are saving or investing your money, continue to save and invest.  Always pay yourself first. 

What are some ways you beat inflation in your spending plan?  Comment on this and let us know.  Contact me here if I can help you with your spending plan.