Kids About Money

10 Ways To Teach Kids About Money

Did your parents teach you about money when you were growing up? Did they emphasize the value of having good credit and how to live within your means? Did they teach you how to buy groceries, put money aside for emergencies, and pay yourself first? What are some ways that you can pass this knowledge on to your own kids?

Here are 10 ways to teach kids about money.

1. Bring your kids to the bank and the ATM when you deposit and with draw money. Get them familiar with how the banking system works.

2. Explain to them that the money they earn is usually electronically deposited into their bank account and that it is important to pay themselves first, ten percent of the amount deposited. This ten percent is then automatically put into some sort of savings account. The rest of the money is reserved for living expenses.

3. Talk to them about paying rent or a mortgage, spending money on food, fuel for the car, car expenses, TV expenses, electricity, heating etc. Explain the importance of turning off lights when they leave a room.

4. Teach them to delay instant gratification by saving for the item they want. They will appreciate and value it more when they acquire it.

5. Teach them what it means by depreciation. Explain that when a new car is driven off of a lot that it instantly loses value. Would it not be more prudent to purchase an older car for them to use as their first car. Explain what it means by getting value for their dollar.

6. Teach them how to cook from scratch. Not only will they eat better but they will save a lot of money by not eating in restaurants.

7. Teach them how to properly use credit cards. If they have a balance on a credit card they must pay off the credit card in full each month. They may opt to purchase credit cards that they put a limited amount of money on it instead of carrying cash in their pockets.

8. Teach them to only purchase items they want on sale. Regularly bring them to thrift shops to buy items that they need. Have them celebrate whenever they acquire something 50-75% off the regular price.

9. Teach them about the magic about compound interest! This one tip may make them millionaires by the time they retire!

10. Teach them to take courses on how to invest of their money. As they get older have them find a mentor that has achieved what they want to achieve financially and have them do what he or she did. Remember, one of the most important skills they can learn is how to handle their own money.

Financial Risks

Taking Bold Financial Risks

‘There is a way that seemed right unto a man but the end thereof is destruction’

The above saying can be said to be true in some instances, but from the moment when I discovered the true meaning of wealth, I have never met a wealthy man who came into his fortune without having to take certain decisions, actions that seemed futile at that particular moment.

It is an obvious fact that making a headway in life requires a certain level of risk taking ability. Your ability to take the ‘bull by the horn’ in seemingly difficult situations determines how far you go in life.

Let’s take a case scenario of two brothers who happen to be farmers in a village far away from any natural source of water supply. Farmer A and Farmer B plant their crops at the same time in a land not too far apart from each other. After a while, the rains stop falling, farmer A is contended with the natural order of things, but Farmer B is not… he seeks ways to provide an all year round supply of water to his crops so he devises a means of transporting water from a faraway stream into his farm land. Now, farmer A tries to dissuade him by pointing out the various disadvantages of irrigation which includes over flooding. Farmer B despite knowing that he risked over flooding his small farm, persisted, ignoring the risk and thinking only of the advantages.

Eventually, it is harvest time, both farmers cultivated their crops but as you must have guessed by now, Farmer B’s harvest was more bountiful than that of his brother… in the long run, the end justified the means.

Now the difference between this two brothers is that one of them did things differently from what was regularly obtained. He took the risk of irrigating his farm despite the obvious risk of over flooding involved.

Now let’s relate this story to the present day craze for financial freedom by Nigerians as a result of which most people have bought into the now popular mavoriodian network known as MMM.

A lot of people call this scheme a scam simply because they are scared of losing their money, I mean nobody wants to lose hard earned money especially in this period of recession. Most people want financial stability, but not the risks involved in achieving this stability and as such, they remain in the same position, year in, year out.

Bill gates, one of the world’s richest man of all times, took a great risk when he took over the running of Microsoft world… the risk of immediate COLLAPSE but he was not deterred, he knew the rules of success, only the risk takers take it all.

My point being, it is a fact that nothing last forever, the mavoriodian system, might not last due to some situations which includes greediness among-st participants, but those in the business of making money know that a good deal lies in the kind of risk involved… the greater the risk, the greater your chances of gaining financial freedom.

Personally, I see no sense in putting my money in a banking system that finds every excuse possible to deduct minute sums under different pretentious guises of which nobody is held accountable for. Why not put that same sum of money in a system that works and ensures that at the end of the month, I not only get my money back, but I also get 30 percent and some bonuses.

To me, it only makes sense to do the latter. I am not one to be convinced easily, but I have tested and tried this system, I have seen millionaires with better finances than I have try this scheme and it worked for them, how much more me, a simple thousandaire…

A great man once told me, if you want to be great, then understudy great people, if you want to be wealthy, then you might as well understudy wealthy people. watch the way they work, learn from their investment tactics, their risk taking ventures… only then can you truly learn the power of making wealth.

In conclusion, I ll advise that every Nigerian youth in universities, polytechnics and on the streets should key into this system, let us attain financial independence and by so doing, reduce drastically the rate of criminal vices perpetrated daily on our fellow countrymen.

Financial Stress

January’s Financial Stress

Christmas is over and the bills are arriving. It’s time to figure out how you are going to handle the January financial stress. Following are some hints that will help you to get back into control again:

REGULAR REPEAT EXPENSES:
1. Prepare a chart with headings that include: Item; Amount; Due Date; Minimum Payment; Interest charged; Notes
2. Go through your bank statements and invoices entering information about recurring expenses in the chart. These are things that you cannot change and must pay based on your contracted arrangements.
3. Consider ways that you might be able to reduce these costs. For example, calling your telephone, internet or cable companies may provide you with options to move to a less expensive plan.
4. Think about how larger decisions might improve your finances within the next few months. Maybe you can move to a less expensive location or sell a vehicle for example.
5. Total the amount that you need to pay all of these expenses each month without having to pay a penalty.
6. Set a plan for the next twelve months to pay off as many accounts as possible that incur interest.
7. Do not add any new accounts or items. For example, it is much less expensive to pay for repairs on a vehicle than to incur an ongoing payment.

DISCRETIONARY EXPENSES:
1. Make a chart with the same headings as you did for the Regular Repeat Expenses.
2. List all of the things that you need (not want) each month. These would include things such as food and hairstyling.
3. Consider the things that you can reduce or eliminate from your list. You might, for example, decide to make your lunch instead of eating out or get your haircut every six weeks instead of every five weeks.
4. Use what you already have. You can likely dress appropriately with the items you already own or read a book rather than going to the theater.
5. Allocate the amount you can save on discretionary items towards paying off things in #6 above.
6. Use cash instead of credit or debit cards so that you can more easily connect with your spending habits.
7. Make payments on #6 items more frequently. For example, paying a small amount weekly rather than a larger amount once a month will reduce interest charged.
8. Pay extra amounts on the item or accounts with the highest interest rate first.
9. Close accounts as you pay them off – especially credit cards.
10. Stay out of the stores as much as possible so you won’t be tempted!

INCREASE YOUR INCOME:
Even if you only earn an additional $20.00 a week, you will have an extra $1,040.00 per year. When applied to an account with a 21% interest rate, you save at least $218.40 compounded, reduce your debt and improve your sleep factor!
Imagine what would happen if you could earn $200.00 extra a week.

Manage Your Money

Three Simple Tips to Manage Your Money

Have you ever had problems managing your money? I believe so, most of us have. It is important to understand that beyond the economy you live in (and the debts you have to pay at the end of the month), there is always a way to improve your financial situation if you know exactly what to do as a business or private individual. I have found this topic very interesting and useful for everyone since money plays an important role in our daily lives. I am usually reading about financial issues and I inform myself very often through the experts’ opinions. I want to share with you three essential points that will help you improve your financial situation and make your life so much easier.

First, define your goal. It is pretty difficult to achieve what you want if you do not know what you want to buy. In fact, you do not know the best way to have a successful budget because your financial goals are not even defined. Financial success is almost impossible and very stressful without a clear objective. If you do not know how much revenue you want to generate, you will not know how much work you should do to achieve it. Having a clear idea of what you can afford to avoid living beyond what you have is essential. Clear goals help you avoid unfavorable situations such as financing a lifestyle with credit or simply buying stuff you do not need. This tip works for everyone in any situation, not only for companies but also for individuals. With this first step, you created a foundation, which will help you build your financial success.

Second, control your expenses excessively. The problem is not how much you spend but what you buy. It is important for you to know what goods and services you need to purchase in order to live. Sometimes people feel suffocated by not having enough money. However, they do not realize that if they only purchase the things they need, they would have more money to spend on other things. When you know where your money is going, you are able to make more efficient decisions in business or personal finances. Controlling your expenses also allows you to keep track of misleading, incorrect or inaccurate information in important areas, such as your credit report. Another benefit of controlling your expenses is that you can determine how long you will have to save money to purchase a non-essential good or service. Some easy methods to control your expenses include an Excel sheet to track transactions, a handwritten list at the end of the day, or even applications on your mobile device that notify you every time you spend something with your cards.

Third, plan ahead. Planning is very important because it helps you to be prepared for any situation in the future. When you make a plan efficiently, you are able to reduce the necessary time and effort to achieve certain goal. Planning will help you control your expenses by identifying the best options for your investments. When you plan ahead, you gather the necessary information to make informed decisions and avoid adverse transactions. For example, paying down the debt with the highest interest or creating an emergency fund to avoid getting back into debt if an emergency happens, are easy decisions when you have a well-developed financial plan. Having defined goals, controlling your expenses, and planning are connected. You can develop a plan to achieve your goals and control your expenses.

Collecting Rent Online

Advantages of Collecting Rent Online

Due to very fast Wi-Fi and mobile apps available these days, people can go online to pay their bills and schedule their appointments. Renters also use such technology to pay on time and manage their funds. Handling payments from wherever you are (with no annoying paper checks) is the new standard. So, property owners like you should consider accepting online rent payment. It is beneficial to both your business and renters – it saves time, reduces costs, improves cash flow and is more convenient. There are five major advantages your property management business could profit from in letting your residents pay their rent online. Let’s see:

Reasons for Collecting Rent Online

Controls management costs

Collecting rent online reduces property management expenses. This allows you to cut down on operation costs, and lets property management fees remain low, which is definitely an advantage for property owners.

Improves customer service

Instead of collecting and processing paper checks, your team can spend more time focusing on their marketing efforts and improving the relations with the residents.

Lessens past due accounts

Since there are different online payment options – such as PaypPal, eCheck and credit card – there will be a considerable reduction in late payments. In addition, mobile alerts that remind the residents that the rent is due, or when the due date is drawing near, usually prompts an immediate payment when your system is mobile device optimized.

Adds more security

Paying rent online gets rid of the risks involved with cash payments. Moreover, your insurance company is more likely to reduce your coverage when you do not maintain cash on-site.

Makes dispute resolutions easier and makes an audit track

Online rent payments generate a digital paper trail. If ever a resident claims that he/she paid online, you can check the system at once to confirm or refute the claim. With a fully incorporated property management software package, you can update owner statements, evaluate late fees and automatically trail split payments. The processing of rent payments and owner disbursements are more secure since sensitive personal info is never compromised. Your accounting group can just click to get a snapshot of those who have or have not paid to allow well-informed financial resolutions.

Expectations of Residents when it comes to Online Rent Payment Portals

According to past surveys, residents often expect a lot from online payment options. Besides being accessible 24/7, they expect them to:

be user-friendly and simple to navigate;
come with itemized monthly statements that separate additional fees from services;
provide different payment options, such as credit and debit cards;
allow automated recurring payments;
not have any processing fees, particularly if residents are required to make online payments.

There are renters who still opt to pay their rent in the form of paper checks every first day of the month. However, in the last few years, it has been observed that more people are becoming comfortable with online transactions. In case you do not offer such options of paying rent online, perhaps it is about time to take it into consideration.

Online Rent Collection

The Main Advantages of Online Rent Collection

t Is Safer

The Federal Trade Commission reveals that about 9 million people will be victimized by identity theft each year – that is about 18 people per minute. When the fraud takes place, the FTC estimates that it would take $500 and half an hour for an average victim to resolve each case of identity theft. Except if your tenant personally hands over the check on a monthly basis, the fastest way to fall prey to these types of crimes is by getting a rent check. This is since the banking details of the tenant is printed right in front of all checks dropped in the mail box. Moreover, when the bank account of the tenant has been fraudulently drained, he will most likely turn out to be a major headache. Collecting rent online using the property safety measures makes sure that no one is prone to risk.

It Maintains a Good Relationship between the Landlord and the Tenant

When it comes to sales, the person who hardly ever collects payment is the one who gives you the pitch and gains your support. This is the reasoning behind this. It prevents a good relationship from turning sour by the negative practice of collecting payment. Online rent collection offers the same benefits. Every time you see each other, tenants will relate you with the brand new sink you have installed for them and not the money withdrawn every month from their bank account.

Consider this: your tenants will not be the ones to enjoy the positive effects given by online rent payment. Besides, it gets rid of the stress involved in confronting tenants who do not pay rent in a timely manner, which is not pleasant for both parties.

It Allows You to Remain Organized

Regular transactions between people that involve money require a higher level of organization. This is especially true if there are lots of properties and tenants concerned, since there are more chances to commit an error. Nevertheless, even though you may have only one or two properties, collecting rent checks every month requires you to communicate regularly and stay organized to make sure that payment is received within the right timeframe. Small errors can turn out to be disastrous when they lead to an argument, wherein the landlord and tenant claim that they are the aggrieved party.

One of the greatest advantages regarding online rent collection is the fact that is generates a seamless digital record that barely needs effort for you and your tenant. It is easier to settle any possible disagreements with no room for arguments or opinions: less documentation, maximum effectiveness.

You Can Rely on It

No tenant every said that he/she is excited to pay rent every month. People usually remember the things that make them happy, and this does not include rent payment. If “pay the rent” is found on the last number of your long to-do list, the best tenants can also forget about it.

Paying rent online enables tenants to set up automated payments. This way, even if you do not prioritize rent payment, it will still and always be paid on time. One more major benefit of automatically scheduling rent payments is the fact that it gets rid of your tenants’ temptation to use rent money for other unforeseen expenses