Important Lessons to Teach Your Kids About Money

While money is an enigma for many people, it doesn’t have to be that way. With the proper education, anyone can become a financial wizard. One of the best ways to become good with finances is to learn at an early age. Even if you think of yourself as a lost cause in the financial department, it’s not too late to pass on some wisdom to your kids. Here are some important financial lessons that you should try to teach your children.

1. There is a Difference Between a Need and a Want

If you teach your kids nothing else about money, teach them that there are differences between needs and wants. Many times, what they think they need is actually just a really superficial want. Do they need the latest pair of sneakers that cost $200 to look cool in front of their friends? Do they really need that pair of designer jeans instead of the ones that cost 1/10 the price? If you can help them realize the difference between what they need and what they want, they will be much better off later on.

2. Set Some Priorities

When you don’t have anything to work for, you’re probably going to be headed in all different directions. It is critical that you teach your child to have some priorities with his or her money. What do they really want to spend their money on? What isn’t that important to them?  Many people end up spending their money on things that they don’t really want to buy just because it’s convenient or because of an impulse.

If you want to make the most of the available resources, it’s important to only spend when it’s part of your priorities. Have your child sit down and come up with a list of things that are important to him or her. Then have the child create some financial goals to shoot for in the future. They don’t have to be huge goals, but they should definitely have something to work for.

3. Don’t Pay Full Price
In today’s society, no one should buy anything without doing a little bit of simple research to make sure that they’re getting the best price available. With a smartphone, you can quickly look up the price for something while you’re shopping. For example, let’s say your child wanted to take up golfing, you would then show them how to find GolfNow.com coupons when they’re interested in buying golf supplies.

Also, with coupon codes for GolfNow.com, you’ll be able to get the golf supplies you want at a much cheaper price than you would normally pay. Show your child how to look for sales and other discounts that they can take advantage of. Show them how to buy some things used, so that they don’t have to pay the higher price just because something hasn’t been used before.

4. Live By Your Word

Teach your child to live by his word when it comes to financial issues. If he promises to pay for something, he needs to do it. You should teach this by giving them a good example. For example, if you start giving him an allowance on Saturdays, make sure that you give it to him every week on Saturday. If you get in the habit of putting it off or you regularly forget about it, your child will think that it’s alright to do the same thing when they get older. With a little bit of discipline, your child will be able to develop good credit and work toward the future more effectively.

With these simple lessons, you’ll be able to help your child get off on the right foot financially.

Financial Decisions to Stay Far From

If you’re not  careful with your financial decisions, you could quickly find yourself in debt and struggling to stay afloat. Managing the bills, paying the mortgage, and staying on top of your finances are always going to be  tedious and frustrating chores. However, if you make the right financial  decisions then you will always have enough money on hand to handle these expenses. Below, you will find financial decisions that you want stay far away from, so that you can keep your financial stability intact.

 

Payday loans

While short-term loans have become particularly popular in recent  years, they are a financial decision that you want to stay far away  from. Payday loans come with severely high interest rates and they have  very short-term repayment periods. This means that you will be expected  to pay off the payday loan within 2 to 4 weeks upon receiving the cash.  This is a very short-term timespan and it’s often difficult for  borrowers to manage.

 

Car leases

While a car lease can be much more affordable than actually  purchasing a car through financing, they are generally not recommended.  Car leases are short-term solutions to getting a reliable car, but you  will often have to purchase a car or renew your lease after your current  lease has expired. You do not own the vehicle and when you barely have  enough money to afford the car lease payments, it’s a negligent  financial decision.

 

Unmonitored credit card usage

Using credit cards responsibly is a great way to build your credit  score and improve your financial standing with the banks. However,  unmonitored credit card usage or over-usage of your credit cards could  build a considerable amount of debt and leave your finances in turmoil.  You need to be very careful with how you use your credit cards and how  much money you apply toward them at the end of the month. Paying the  minimum payment is a negligent decision as credit cards should always be  paid off in full if possible.

 

Committing to a substantial mortgage

When you go to the bank and you are given a preapproval on a  mortgage, you should never purchase a home that maxes out that mortgage  amount. Banks are often far too generous with the amount of money that  they approve. If you want to live in easy-going life, you should spend  far less than what the bank will approve you for on a mortgage. This  will make your monthly payments more affordable and you will have more  money left over in your budget to afford other expenses.

 

Risky investments

There are lots of ways that you can invest your money, but some of  them are more risky than others. For instance, Forex or currency trading  can be wildly profitable, but it has a very steep learning curve. Some  people tend to dive head into new things that they are excited about and  this often leads to debt and risky financial decisions. Try to control  your spending and do not jump into risky investments without weighing  the options that are available to you.