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How To Teach Young Kids About Money

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We as parents put our kids on certain paths. The path to good hygiene, “always brush your teeth before bed”, the path to being well mannered, “remember your please and thank you”, or the path of being sympathetic “you say sorry if you hurt someone”, the list goes on. The path that we tend to forget about especially with young children is the path to good money sense. We all want our kids to be good with money, but what does this mean and how can we help them achieve this?

Don’t know about you, but my parents were not great savers, just great spenders. My brother on the other hand has always been amazing with money. He always had it, and was not too keen on parting with it. As for my other brother and I, we loved to spend. Saving for us was a bore and lacked instant gratification. While we were children that all lived under the same roof, and all witnessed our parents money habits, how can it be that we went down two very different money paths?

I firmly believe you pick up your habits from those closest to you. While we did all live together, the difference was, my brother spent most of his waking hours when he was a child with my grandfather, a much better role model when it came to money. He taught him how to both save money and how to spend it. He taught him how money can make you more money, and that money can either work for you, or you work for it. My parents didn’t teach us anything about money other than what we observed. But my brother was purposefully taught by my grandfather from the tender age of four, and this difference, made all the difference to his money path.

Many of us make the mistake of thinking that our younger kids are too little to learn about money. We just know that when they get older we want them to be good with it. But how can this eventuate if we don’t start teaching them when they are young. As soon as your child understands that items can be purchased with money, it’s time to start teaching them. You start small of course, and in a very simplistic way. But these simple little lessons will become the scaffolding that prepares them for future more indepth money lessons such as handling their own money, even if it’s just a few coins to spend at the school canteen.

I have compiled a list on how you can start to teach your young child about money, and assist them in going down a great money path.

How to Guide your Kids Down a Great Money Path

* Talk about money to your kids and share money matters in line with the child’s age. When your kids leave the light on in their room for example, talk about the electricity bill and how lights on cost money and we want to save it. Little comments such as these shows kids that it can be a choice to spend or save money, rather than it being something totally out of our control.

* If your child wants something big, if old enough, get them to write it down and put it somewhere in their room. More than half the time, you will find that not too far away, they will no longer want it. This writing down of things they want seems to fill a need at the time which can tend to disappear.

* Teach your kids about window shopping. Too quickly we jump on them “now don’t be looking at that, you have enough toys at home already”. Look at items they like with them, comment on the item, look at the back of the box, tell them it IS cool and you can understand how they would want it and maybe, just maybe, they might get it for their birthday. This window shopping and actually touching and looking closely at the item does the same thing as the writing it down. Window shopping is a part of most peoples lives, so teach your kids how to do it. How to look at something you like and still be able to walk away.

* With school canteen being your child’s first experiences with handling money independently, think first about how you want to introduce it to them and what the rules are surrounding it? Canteen money can be a great opportunity for that first big money lesson.

* Set up a bank account once your child starts school. Some schools have a banking day where you can bring in money to be put into an account. If not, you and your child set up your own. When you’re next in the bank, talk about it. Why do we put money in the bank, why might we take it out? Talk about banking rewards such as them giving you money (interest) the more you save. Many banks have a counting machine you can use. My kids love to empty their money boxes into these machines, watch it count, then take it to the cashier to deposit while keeping a little for a treat. Many parents leave it up to the school to teach kids about money and banking. Sure, schools may teach currency and collect their banking money for the week, but do they teach them about good money decisions?

* Money boxes for different things. My kids have two money boxes. One is for their savings, and the other for their spending. When someone gives them money, I encourage them to put some in their savings box, and some in their spending money box. My kids also put their left over change if any from the canteen into their savings box. I am trying to teach them that spending and saving can go together. That there can be a happy medium.

* If you gamble, do not discuss this infront of the kids. Kids live what they learn, and if they learn that gambling is a normal way of life, then that is the path they are more likely to choose.

* Teach your kids how they can be empowered to get money for themselves, and the way to do this is like everyone else, jobs. Create with your child a list of small jobs/responsibilities they can do to earn their money. Ensure the jobs are more than achievable & inline developmentally. For younger children jobs tend to be more about completing routine tasks such as completing homework, making your bed, getting dressed for preschool or school, or simply remembering your hat. For older children you can start to introduce jobs such as dusting, sweeping or folding.

* Allowances I believe should be reserved for the school aged child. Allowances work best when your child has learnt more about how much things cost. I would recommend allowances not to start before they are at least ten years of age.

* Be consistent with the strategies you put into place to teach your kids about money.

Consistency is a killer, because it can be so hard to do, but consistency when we are trying to teach our kids most lessons, is king. It also teaches our kids to stick to a certain path making those habits “normal”, it’s just what you do, it ingrains into them making those habits become second nature, like brushing your teeth, or saying sorry if you accidentally hurt someone.

* Point out your own money rules to your children. Grocery shopping is a great time to do this. Do you wait for something to be on special before you buy it? Do you go for the buy 2 for 1 offers? Do you look at cheaper brands to save money? Do you save the petrol discount docket? Voice what you do, it will help your kids to learn.

The Commonwealth Bank has developed a game for 5-12 year olds called Coinland. This is an interactive game designed to teach young children about money. Certainly worth your attention.

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Source by Danielle Mantakoul

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Where to Find Those Efficient and Hardworking Affiliates?

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Everyone wants a hardworking affiliate, employee, associate, partner, or even spouse, and why not? It’s the next best thing to doing the work yourself. However with the massive outbreak of work and income opportunities available online, how can you beat everyone else and find that one (or more) ideal person who will make your online business explode with success? Here are some of the most ingenious and uncommon ways to snag the idea affiliates for your affiliate program

Direct Sales Agents

Direct sales people are really one of the most enterprising, hard-working individuals in business. They mostly work on commissions or rebates and are willing to literally go door-to-door offering their products to anyone and everyone they bump into. Imagine how much easier their job would be if they could be an affiliate and simply work via the Internet and a mobile device or desktop.

Also, most direct sales people tend to carry more than one brand in their product arsenal so signing up as an affiliate would be almost the same type of work but using a different approach.

Colleges and Universities

Many college kids would be interested in a part-time income opportunity if it would mean funds to help pay for their education, loan, or partying. All you have to do is make sure to offer them products they can endorse as a student.

Freelancers

Did you know that the U.S. Census Bureau’s latest annual report show that 75% of U.S. businesses used freelancers in 2011? Freelancers earned a whopping US$990 billion in 2011 which is a 4.1% increase from the previous year. The only industries where the number of freelancers decreased were in insurance, finance, and construction. Most probably your affiliate program isn’t a part of these 3 industries.

Furthermore, online business and finance experts are predicting the growth to increase incrementally every year even with an economy that is improving. People just want income security and more control over their earnings. With the spate of lay-offs, it’s understandable why many would prefer to work as an affiliate than as an employee.

Scout For Them At Affiliate Conventions

There are annual affiliate conventions held in different cities around the country. You should try to catch one when it is held somewhere near your location. The average turn-out for these types of conventions has increased regularly over the years. Last year, many of them were sold out weeks before the event.

Advertise!

The US Census Bureau has said that as of 2012, 15% of Americans are poor, 43% of young adults depend on their parents to some extent for money. Even more surprising is that the median income of young adults in 1982 was $31,583 and last year it was $30,604 for the same age group! Income is dropping and people are looking for ways to earn additional income outside of their 9 to 5 jobs. That’s where you can come in playing the hero and helping others realize their dream income.

Finally, go online and talk about your product. Make the affiliate marketers come to you and have the luxury of picking the best candidates. You will need some help in marketing your affiliate program so target a marketer who’s experienced in affiliate program and SEO.

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Source by Lina Stakauskaite

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Recession Is Here… Six Costly Mistakes Home Sellers Make During Recessions And How To Avoid Them

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The U.S. is officially in a recession. What is a recession? A recession is a business cycle contraction or general economic decline due to significant drop in spending and other commercial activities. Most pundits and politicians will blame Covid-19 crisis for the recession, but even pre-Covid-19 the proverbial writing was on the wall.

The U.S. had over 120 months of economic growth, which was the longest expansion in the modern history. Other indicators, such as negative yield spread on treasuries (long term bonds having lower interest rates than short term T-notes), were pointing to an imminent change of the economic cycle and an impending recession. The only real question was: when and how bad?

Then Covid-19 came… If the cycle was going to change anyway, Covid-19 acted as a huge and unexpected accelerant to make the recession much more immediate and severe.

Inevitably during recessions all classes of real estate, including residential homes and condominiums, will be negatively impacted as lower consumer spending and higher unemployment rates affect real estate prices and marketing times.

Here are the six costly mistakes home and other real property sellers make during recessions and how to avoid them:

Mistake #1: This will pass and real estate market will be hot again soon

First thing to remember is that real estate cycles are much longer than general economic cycles. Even if the general economy recovers, which eventually it always does, a typical real estate cycle takes as long as 10 to 15 years. The cycle has four key stages: Top, Decline, Bottom and Rise.

Let us consider the last real estate cycle, which lasted approximately 14 years:

  • 2006 – Prices hit the Top
  • 2006 to 2012 – Prices Decline
  • 2012 – Prices hit the Bottom (Trough)
  • 2012 to 2019 – Prices Rise*
  • 2020 – Prices hit the Top
  • 2020 to? – Prices Decline

*NOTE: In 2016 the national residential real estate price index reached its pre-recession 2006 peak levels. It took 10 years for the real estate market to recover.

The way to avoid this mistake is to recognize that real estate cycles take years to run and plan accordingly. Additionally, nobody knows for sure when the prices will hit the top or bottom until after the fact.

Mistake #2: Low interest rates will make the economy and real estate market rebound

Between 2006 and 2011 the interest rates (Fed Funds) were continuously cut by the Federal Reserve Board and went from low 5% to almost 0%. However, that did not stop the real estate recession and depreciation of property values.

Undoubtedly, low interest rates made the economic decline and real estate recession less severe and saved some properties from foreclosures, but it still took six painful years for the real estate market to hit the bottom and then four more years for the prices to go back to their pre-recession levels.

Some markets had never fully recovered. For example, residential home prices in some parts of California, Arizona and Nevada are still below their 2006 highs.

To avoid this mistake, one needs to realize that although low interest rates help stimulate the economy and the real estate market, they do not cure them.

Mistake #3: I don’t need to sell now, so I don’t care

If you do not need to sell until the cycle plays out, which typically is over ten years, then you will not be as affected, especially if you have a strong equity position, limited mortgage debt, and solid liquid assets.

However, it is good to keep in mind that “life happens” and either professional or personal circumstances can change and we may need to sell property before the downturn runs its course.

Furthermore, if a property has a mortgages and its value declines to the point being “upside down,” meaning the mortgage loan balance exceeds the value of the property, then the options of selling, refinancing or even obtaining an equity line of credit, will be significantly limited.

This does not mean that everybody should be rushing into selling their real estate if there is no need to do so, just keep in mind that circumstances may and often do change and property options will be affected, so plan in advance. As one wise proverb says: “Dig your well before your thirst.”

Mistake #4: I’m selling, but I won’t sell below my “bottom line” price

This is a common and potentially very costly mistake. Generally speaking, every seller wants to sell for the highest price and every buyer wants to pay the lowest price. That’s nothing new. When selling real estate, most sellers want to achieve a certain price point and/or have a “bottom line.”

However, it is important to understand that the market does not care what the Seller, or his/her Agent, think the property value should be at. The market value is a price a willing and able buyer will pay, when a property is offered on an open market for a reasonable amount of time.

Overpricing property based on Seller’s subjective value or what is sometimes called an “aspirational price,” especially in a declining market, is a sure first step to losing money. When a property lingers on the market for an extended period of time, carrying costs will continue to accumulate and property value will depreciate in line with the market conditions.

Additionally, properties with prolonged marketing times tend to get “stale” and attract fewer buyers. The solution is to honestly assess your selling objectives, including the desired time-frame, evaluate your property’s attributes and physical condition, analyze comparable sales and market conditions, and then decide on market-based pricing and marketing strategies.

Mistake #5: I will list my property for sale only with Agent who promises the highest price

Real estate is a competitive business and real estate agents compete to list properties for sale which generate their sales commission incomes. It is not unusual that Seller will interview several agents before signing an exclusive listing agreement and go with the agent who agrees to list the property at the highest price, often regardless if such price is market-based.

Similarly to Mistake #4, this mistake can be very damaging to Sellers, as overpriced properties stay on the market for extended periods of time costing Sellers carrying expenses such as mortgage payments, property taxes, insurance, utilities and maintenance.

Furthermore, there is the “opportunity cost” since the equity is “frozen,” and it cannot be deployed elsewhere till the property is sold. However, the most expensive cost is the loss of property value while the real estate market deteriorates.

During the last recession, we have seen multiple cases where overpriced properties stayed on the market for years and ended up selling for 25% to 40% below their initial fair market values.

The solution is to make sure that your pricing strategy is based on the market, not empty promises or wishful thinking.

Mistake #6: I will list my property only with Agent who charges the lowest commission

Real estate commission rates are negotiable and not set by law. A commission usually represents the highest transactional expense in selling real properties and is typically split between Brokers and Agents who work on the transaction

Some real estate agents offer discounted commissions, in order to induce Sellers to list their properties with them. But does paying a discounted commission ensure savings for the Seller? Not necessarily.

For example, if the final sales price is 5% to 10% below property’s highest market value, which is not that unusual, due to inadequate marketing, bad pricing strategy, and/or poor negotiation skills, it will easily wipe out any commission savings and actually cost the Seller tens of thousands of dollars in lost revenues.

The solution is to engage an agent who is a “Trusted Advisor,” not just a “Salesperson.” A Trusted Advisor will take his/her time and effort to do the following: 1) Perform Needs Analysis: listen and understand your property needs and concerns; 2) Prepare Property Analysis: thoroughly evaluate your property and market conditions; 3) Execute Sales and Marketing Plan: prepare and implement custom sales and marketing plan for your property; and 4) Obtain Optimal Results: be your trusted advocate throughout the process and achieve the best possible outcome.

Finding such a real estate professional may not be always easy, but it certainly is worth the effort and will pay off at the end.

In conclusion, this article has outlined six costly mistakes real estate Sellers make during recessions and how to avoid them. The first mistake is not understanding that real estate cycles are long and take years. The second mistake is a misconception that low interest rates alone will create a recovery. Another mistake is not realizing that circumstances may change and not planning in advance. Mistakes number four, five and six pertain to understanding the market value, proper pricing and selecting the right real estate professional.

By understanding and avoiding these mistakes, real estate Sellers have significantly better chances of minimizing the negative impact of a recession while selling their properties.

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Source by Robert W. Dudek

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Useful Tips To Build The Best Gaming Computer

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Every gamer will want their computer to be the best gaming computer among their peers. Sometimes, with a little knowledge and tips and tricks, it is possible to build the best gaming computer and show it off to your peers. This article will show you how:

1) You can’t get the best gaming computer from computer retailers

If you want to get the best gaming computer, you have to build your own. Different gamers have different requirement for their gaming machine. Unless you are willing to pay a high price, you will not be able to buy a commercial computer that fulfills all your gaming needs. The only option you have is to build your own gaming computer.

2) You don’t have to be rich to build the best gaming computer

It is not necessary to burn a hole in your pocket to build the best gaming computer. With some due diligence, do some market research and compare prices around the marketplace. Merchant such as TigerDirect and NewEgg give regular discount to their products and you could save a lot of money if you catch them during their promotional period.

3) Most expensive parts do not have to be the best part

Sometime, the latest model or the most expensive model does not have to be the best part for your computer. It requires various components to work together to form the best computer system. When choosing a computer part, what matters is how well it can integrate with the rest of the components. Compatibility is more important than individual performance. What use is there if you spend lot of money on the latest quad-core processor and find that your motherboard doesn’t support it?

4) You don’t need to change the whole PC to own the best gaming computer

It is a misconception that you have to change the whole gaming machine to build the best gaming computer. If you already have a good barebone system, what you need to do is to upgrade the necessary parts and your gaming computer can roar back to life instantly.

5) Brand is important

Unless you want to see your computer system malfunction every few days, it is important that you purchase the parts from branded manufacturers with strict quality control. Motherboard brand such as Gigabyte, ABIT, ASUS are some quality brands that you can consider

If you follow diligently to the tips stated above. You will be on your way to build the best gaming computer. While price can be an issue, it is better not to scrimp on important computer parts such as motherboard, CPU, RAM and graphics card as it will cost you more to upgrade in the future.

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Source by Damien Oh

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