Teach Kids Make Financial Budget

GIVE allowance is a good way to teach children money management skills. Teach your baby how to manage finances and make a budget since childhood, so get used to when he was growing up.

You can choose to give pocket money daily, weekly, or monthly according considerations. After that, he helped create a mini version of the adult financial budget in the following ways:

1. Encourage your child to set aside 30 percent of their allowance into savings. For starters, children can put the money into a piggy bank. If you've collected enough, you can help her open a savings account at a bank.

2. Meanwhile, 30 percent more than their allowance set aside for daily snack. For example, buying ice cream, borrow comics, or playing games.

3. A total of 30 percent set aside for something special. For example, he wants to buy shoes or a bike that his dream (you can cover half the cost if too expensive). Thus, the child will get used to saving up to get something to be desired.

4. Lastly, teach your child to donate 10 percent of the rest of their allowance to charity. For example, to give to beggars or donated to an orphanage.
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Let's Prepare Financial Priorities

EVERY person would have different priorities in life. However, managing the finances are appropriately placed at the top of your priority list.

Determine what is important and what is less important should not be difficult as long as you know how to do it. Well, here are four main ways to prioritize your financial life:

Investing in the future
Make a plan for the future is one of the key elements in prioritizing financial life. As soon as you get a job, start saving for retirement.

This concept may sound strange when you're still at the early age of 20 years. But, the sooner you save, the longer the funds in the account to settle so that the flowers were growing.

Although you are only able to save a small portion of money each month, it is still better than not saving at all. As the saying goes, a little, long into the hills.

Saving an emergency fund
Life promises surprises at every turn. Sometimes, the surprise came with an unpleasant way.

In addition to saving for the future, you also have to prepare yourself to save for unexpected things that might happen. For example, when one family member gets sick or when the house needs renovation.

The main thing is not how much money you can afford to set aside each month, but the consistency in doing so.

Paying the bills
A good credit score become the foundation of a healthy financial life. Build and maintain a good credit score will allow you to downsize the number of large purchases such as cars, houses, furniture and even household appliances.

The most important element in maintaining or improving a credit score is to always pay the bills (at least the minimum payment) on time every month.

Reducing debt
Do not be in debt, let alone stuck in a cycle of 'dig a hole, cover the hole.' However, there is a fundamental difference between having the bill into debt. To avoid piling up debt, purchase of goods only if you are able to pay in cash.

If you have made a purchase using a credit or a loan, make sure you're able to endure (including interest).
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5 Hidden Financial Risk

SOME years Americans have an economic crisis. The concept of financial risk caused share prices rise and fall. All financial risk is revealed in the news. However, many people risk hidden in their personal finances, including:

1. Divorce
When your wallet married couples join. However, if the divorce is a complicated matter. Besides the marriage ending costly. Call it in the U.S., the average divorce costs ranged from U.S. $ 15 thousand to $ 25 thousand. In addition to the exorbitant financial cost, divorce is painful and emotionally stressful.

How to avoid the financial risk of divorce is when starting a prenuptial agreement specify how each of your assets and your family are protected. Be sure not to talk at length about finances and financial goals before marriage.

2. Not having insurance
More than 50 million Americans do not have health insurance. When they lose their jobs and suffer from certain diseases, can not afford the cost. Assuming they do not buy insurance individual coverage and was considered too expensive. Medical bills are the cause of 60 percent of bankruptcies in the United States.

3. Staying too long in one job
One of the biggest risks in employment is stagnant career. If you do not learn new skills in other words do not move up the career ladder at risk of stagnating incomes.

4. Living in the old neighborhood
Many people who worked all their lives to pay for the house and gradually loses its value. This risk is very difficult to realize. It is better to sell your home rather than hold on to a house in the wrong neighborhood.

5. Life is too long
People often focus on the purchase of life insurance. But do not plan for the possibility they will live until the age of 90 years or more. The purpose of the financial plan must be longer than the age of your life. Another option to avoid longevity risk in retirement is to purchase an annuity, an investment vehicle that gives you a monthly income.
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Three Key Financial Setting for Young Couples

THE newly married couples between the ages of 20 and 30-'s financial lives are equally developed like everyday life. Incorrect decisions about spending money have a major impact on long-term goals.

If the assumed stable relationship, you and your spouse jointly plan long-term spending such as buying a house. Well, here are tips and financial investment for the young couple:

Budget
The budget becomes an important part of financial planning. You have to be honest where the money goes. Give special attention to the fixed monthly fee. Financial control is an important part of long-term investment.

debtEliminating debt owed to non-tax-deductible loans through lines of credit including a major concern for the young couple. Because they have to prioritize to buy a house. If funding a major requirement rests on the credit cards, consolidate debt into low-interest loans.

Home and pensions
The main priority of the young couple is buying a home. Collect cash advance without leaving the tube retirement planning. Any additional money beyond the mortgage payment should be invested in retirement savings plans, and is not stored in the investment account is simple.
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Four Step Smart Financial Advice

financial advisory services..NOT a few people who get caught up in financial trouble, but refuses to face reality and hiding behind the shadow of fear. In fact, if ignored, the problem will be more protracted and you are also becoming immersed in the issue.

From now on, stop avoiding the issue and start to manage your financial life correctly. Well, here are some smart steps you can take to manage finances:

Automatic payments
With a series of obligations that you have every day, business to pay monthly bills can be a stressful job. In fact, paying bills on time is vital to ensure your financial health.

Late paying a credit card bill can make your credit score go down, and puts you at risk of increases in interest rates on loans. To save time and money, set up automatic bill payments through online banking services.

Cancel membership
How many of you are registered as a member of a gym, but only occasionally come there for fitness? Or, how many of you who subscribe to a magazine that is read only once and then discarded?

Try to count, how much money must be spent each month to pay for a membership that is used only occasionally? Trim unnecessary expenses and put money into savings marginalized.

Debt consolidation
Consolidating debt is the first step to building the future of financial stability. Before investing, you need to pay off all short-term debt, such as credit card debt and other short-term loans.

Consolidating debt means you add up some debt, then combine them into one. Some companies offer debt consolidation into a single debt with interest rates relatively low. Try asking the company's lenders to remove other costs you have to pay.

Another important step is to pay off the debt within the shortest possible time. To do this, you may need to double the amount of payment and the luxury of a budget cut.

Financial plan
If you do not have one, now is the perfect time for you to make a financial plan. If you want you can consult with an experienced financial advisor, who knows your needs and your specific financial goals.
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Compact Set Family Finance Tips

financial planning process..Money is one of the major sources of contention spouses in marriage. But the situation is not necessarily so. Indeed, if handled carefully and wisely, money can increasingly close relationship partner.

The main key is communication. Starting now, try to be compact in managing family finances by implementing some of these tips:

Build connections
Setting goals related to financial issues together, can make a relationship with a partner become more closely. Mutually different dreams about the house, the kids, and retirement plans, will unite you and your husband's life.

Increase empathy
Understand the roots of the financial habits of your husband to help you understand it, and vice versa. Instead of his usual cranky with super saving lives or just dissipate, try to investigate where these practices originated

Accept each other
Accept the fact that you and your husband will argue about money. It is actually reasonable. Try to embrace and minimize these differences by seeking a middle ground.

Share value
Write down the values ​​that you embrace as a couple, and determine how to make financial decisions that can be taken in accordance with those values. It is useful as a reminder of what unites you and your husband at first, and keep the fundamental values ​​are still alive.

Enjoy life
Look at the money as a tool that can bring good things in your life and your partner, such as a house, kids, travel, and charitable donations to a comfortable retirement.

The joint effort
Open-minded and responsible answer as financial delegate. Just because one party has long set the budget or investment, does not mean he should do it forever. Both parties should be involved in setting family financial goals. In addition, they also have to check the goals on a regular basis so that everyone assumed the same responsibilities, while strengthening the foundation of the relationship.
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Eight Family Financial Priorities

family financial planning...IN daily life, you may be confused by the various financial needs such as paying bills, paying off debt, pay for insurance, to set aside money for savings. So, what needs to be prioritized?

See explanation of financial columnist Liz Pulliam Weston of MSN Money following, to help you manage your finances better:

1. Paying the bills
Your ability to manage a variety of other financial priorities will be greatly enhanced when you are able to handle basic household expenses. According to financial expert Elizabeth Warren, you are advised to limit expenditures'' shall'' to 50 percent of total income minus taxes.

There is also the mandatory spending, he said, including housing, utilities, transportation, food, insurance, child care and minimum loan payments. Meanwhile, 30 percent of revenue to be allocated to meet the'' desire,'' such as new clothes, entertainment, and leisure. While the remaining 20 percent for savings and debt repayment.

If your mandatory expenses ballooned from 50 percent share of after-tax income, you can control it by cutting spending on food and utilities. If not, you have to make further adjustments to find a cheaper place to stay or get rid of a luxury car from the garage.

That is not recommended is to cut your insurance coverage, which is a protection for you if disaster, accident, or illness.

2. Save
Set aside a few dollars for savings in a bank savings account can save you from the risk of late payment of bills. Having saved at least 5 million in savings, allowing you to pay for minor emergencies without having to charge the credit card.

3. Retirement savings
How much money should you save for retirement? Liz Pulliam Weston of MSN Money recommends that you set aside 10 percent for basic savings, 15 percent for comfort, or 20 percent for a breakout.

If you start saving early retirement at the age of 30, set aside 10 percent of revenue should be able to cover basic needs in retirement. While setting aside 15 percent of revenue will give you a more comfortable life. If you set aside 20 percent of revenue, you should be able to enjoy luxuries such as early retirement or travel extensively.

4. Pay off debt
It's time to tackle your credit card bills and other dangerous debt. The best way to do this is to pay the debt with the highest interest as a top priority, while paying the minimum payment of other debts.

But, you also can pay off the smallest debt first, to provide a psychological boost to pay off other debts.

5. Emergency Fund
Savings can be sold quickly if you lose your job at any time. Therefore, make sure to set aside a fund of at least six times the monthly income or expenses shall as anticipatory action.

6. Long-term disability insurance
Someone earning power is greatest asset. Meanwhile, the chances of a person for disability due to an accident or injury while working is higher than the risk of death in the same period.

The easiest way to get insurance protection is through your employer. If the company does not offer such protection, find insurance that provides protection against the risk of accidents and defects.

7. Saving for college
If you already have a retirement fund savings, pay off debts and have an emergency savings fund, now is the time to think about the future of your baby. family financial planning, The easiest way to do this is to open a savings or education insurance education, which can be withdrawn automatically from your savings account each month.

8. Experience spectacular
Once you successfully manage any financial priorities above, it's time to set aside money for something fun like a special trip, a family reunion, or a sabbatical.
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