Money Skills For Kids

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The education system today may be fantastic at teaching our children reading, math and writing skills, but when it comes to teaching them about real world issues like money, it gets a failing grade. Where did you learn about money? Did you have rich parents that taught you everything? Did you read about it? Or did you learn by trial and error in the real world? As a parent, the best gift you can give your child is knowledge about these basic money management strategies

Pay yourself first

Managing money and building a secure financial future is not all about rates of return and investment amounts but more about habits. As soon as your child is old enough, and starts dealing with money, start teaching them one of the core principles of wealth creation, pay yourself first. We all know if we take the route of paying all the bills and then investing what is left over, there never seems to be any left over. So instead, take the alternative approach of paying yourself first. Teach them to get in a habit of setting aside 10% of whatever they earn and put that money aside for long term investing. They are to treat this like any other bill the HAS to be paid. This money can then be invested to start the little miracle of compound interest working for them. By starting them with this habit at a young age, they will continue the habit into their adult lives when they actually have bills, but with the confidence they can actually pay their bills.

Dollar cost averaging

This is another habit strategy to teach your children. As children are entrusted with money, even if it be a small amount from an allowance or money from a part time job, once they start employing the “pay yourself first” they might have income to invest. By setting up a regular amount they invest every month they will start accumulating wealth. There are thousands of mutual funds available and a good financial advisor or your bank can recommend one that matches your child’s risk profile, but by investing a set amount every month, the price will have less impact on their wealth accumulation if they employ dollar cost averaging. When prices go down, as they will at times, you just buy more shares. For example

  • Month 1 Invest $50 Share price $10.00 Buy 5 shares
  • Month 1 Invest $50 Share price $5.00 Buy 10 shares
  • Month 1 Invest $50 Share price $7.50 Buy 6 2/3 shares

Think you lost money? The share price is down 25% from $10 to $7.50? But in actual fact your investment of $150 has grown to $162.50 – 21 2/3 shares X $7.50. You bought more shares when the price was “cheap” at $5.00!

Rule of 72

When making future investing decisions, this little rule will come in handy when making investment decisions. The rule simply states the number of years for money to double is … READ MORE ...

Preparing Your Kid for School

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Preparing her child to the entrance to the infant school is a topic of interest for many parents. This is a year that is said to be pivotal because the child learns to read and write. As a parent, the big responsibility is often very heavy on his shoulders. So to help you live more calmly this time here are some tips.

Resume to school

It is common for children to have staggered hours during the holidays. Also it is important to plan before the school year, an adjustment period where you will sleep your child earlier and earlier in a progressive manner. Also, on day j, it will be returned to school rhythm and be in shape for new learning he has to do.

Defuse the situation

Do not harp on him for all the holidays he will enter the high school. And it’s time over for fun. But you say that this is a year like any other, and what he’s capable as others, to learn all new things, because they’re adapted to their age.

Share your feelings

If you’re feeling particularly stressed out by this autumn, take the time to ask about the reasons for your fears. Try to think back to your own PC and you remember what you felt at that time. If you experience problems getting this back on its own, call a friend or professional who assists in this process. By expressing your emotions, you will avoid projecting concerns about your child that does not belong to him.


Tell him what an extraordinary year it will be, a year during which he will learn to read and write. Then discover all the best stories. He can write all the words he knows. It will also be able to write beautiful letters to everyone he loves. Children are usually happy to do this learning.

Arrange a place to work

With the kid entry to school comes homework. Therefore it is important to organize a space where he could study. The best is to install a desk in his room so it is quiet. If it is not possible, make sure that when he’s doing homework, there’s the least possible entertainment, like television or brothers and sisters who are near him.

Encourage autonomy

This is the beginning of a succession of years that your child will have homework to do at home. Knowing that this is a cause of repeated fighting with her child, it is useful to bring it now to work independently to reduce opportunities for conflicts and focus on relaxation, sharing and exchange. In doing so, your child can also derive pleasure and pride to get there by himself. It will then very soon realize that academic success is of value for oneself and not to please each other. For this it is necessary that he had the opportunity to do things by himself as soon as possible. So rather than imposing things all the time, offer the opportunity … READ MORE ...