Saturday, August 27, 2005
Money Doesn’t Grow on Trees
Money Doesn’t Grow on Trees
© 1994 by Neale Godfrey
The overwhelming majority of Americans don’t understand finance themselves. The result is rising personal bankruptcy and nearly incomprehensible national debt; money is an emotionally charged subject. It is due to have greater valuable as a tool for power or as a weapon to control others.
The average American saves between 4 and 6 percent of his annual salary. That leaves even after taxes better than 65 percent or more the salary that must be carefully managed so that all costs of living are covered. Saving money is essentially a discipline that youngsters must be taught just like brushing their teeth. You provide child with the tools needed a toothbrush and toothpaste. Then you provide the proper environment a bathroom with a sink and finally you monitor the activity and offer encouragement and praise. Money is anything a group of people accept in exchange for goods or services.
We save money for three reasons: protection in case of emergency, for retirement, and to buy something we really want. First consider emphasizing the sheer fun of saving money to your child. This might get some of her hopes of life. The general approach to teaching the discipline of saving money is to set a financial goal with your youngster, help him earn the money necessary over a period of time to attain the goal and enjoy the reward of obtaining the goal together. They must have a source of money preferably earned and they must have a piggy bank or toy space.
Provide a simple easy to use system to save money so that it becomes a weekly habit. Pay the allowance in exact change at the same time each week. Make sure the youngster has a special safe place to keep the money. Conduct a treasure hunt with your child together of all the loose change in the house. Don’t forget the pockets of coats and jackets, drawers, old purses and under shelf of kitchen. After you finish the game show your child have to roll the coin into the paper cubes. Get a piggy bank that’s just for saving. Spending money to go somewhere else like a coin purse or a wallet. Each week when you pay up the allowance go with your child and together deposit money into the piggy bank. Make sure the piggy bank is clear so the child can see how the money accumulates each week. See who can pickup the most groceries without going over $5.00. A passbook account is more fun for your child because the passbook is stamped every time there is a deposit.
Together with your child select a toy game or book that costs no more then 2 weeks of allowance then at the end of the two-week make a special trip to purchase the item. Consider telling over to teenager a complete management of the clothing allowance for the total amount of money you spend on him annually. For third degree spenders the parent may think for same as the payroll deduction plan. The 401K plan explains your child that for every dollar he saves you will match it with a dollar for whatever period of time you decide. Money should be fun. The sum needs to be large enough so that the kid can do all the do money management exercises that will prepare her for the future for the size of allowance. Between the age of 3 and 6 allowance should be the same number of dollar as their age.
There are three areas of money management SOS; “S” for saving, Offering for charity and spending. It is a good dinner table discussion to help up your children about charity. What job or jobs must the youngster perform in order to earn allowance and separately what duties are part of the job while as the member of the family. I believe in assigning specific chores that child does weekly to earn the allowance. I would like to differentiate additional responsibilities from routine courtesy. In my household we have two kinds of chores personal maintenance and general household chores. An allowance is the money given to the child as a payment for being a working contributing member of the family. The weekly net allowance started adjusting downward as your youngster heads into his teens and begins to earn his own money. The parent should not be flexible in the payment of allowance the chores must be completed before any money is paid. Money the parent gives the child each week as a payment for being a working member of the family is allowance. Weekly expenses that a child could absorb lunch money, Sunday school donation, school supplies, school field trips, a budget is a plan that lays out what you will do with your money.
Breakdown of a child’s budget: That is roughly 20% long‑term saving, 10-15% short-term, 10-15% offering, 40% living and 20% free money. Give that money under $20.00 billing for their free money budget. Between 21 and 50 half goes into saving and the other half into spending. Anything over 50 we workout a percentage, for the bulk goes into savings and some is available for the child. The goal is to pay all necessary bills with the allotted money.
The MESS system: “M” make a list. Making a shopping list is vital. “E” evaluate what are your truly basic necessities and what are not in your household, make three separate lists for toiletries, pantry, and health. When I got I ask myself can I live without this. The basic necessities list shampoo, deodorant, bar soap, sugar, coffee, dishwashing soap, garbage bags, etc. “S” shop, “S” stick to the agenda.
Relative value: The real price of something in terms of what it will cost you in work and time. Imperative shopping denotes the lightness and differences between two or more things that you are considering buying.
Amazon: http://www.amazon.com/exec/obidos/ASIN/0671798057
© 1994 by Neale Godfrey
The overwhelming majority of Americans don’t understand finance themselves. The result is rising personal bankruptcy and nearly incomprehensible national debt; money is an emotionally charged subject. It is due to have greater valuable as a tool for power or as a weapon to control others.
The average American saves between 4 and 6 percent of his annual salary. That leaves even after taxes better than 65 percent or more the salary that must be carefully managed so that all costs of living are covered. Saving money is essentially a discipline that youngsters must be taught just like brushing their teeth. You provide child with the tools needed a toothbrush and toothpaste. Then you provide the proper environment a bathroom with a sink and finally you monitor the activity and offer encouragement and praise. Money is anything a group of people accept in exchange for goods or services.
We save money for three reasons: protection in case of emergency, for retirement, and to buy something we really want. First consider emphasizing the sheer fun of saving money to your child. This might get some of her hopes of life. The general approach to teaching the discipline of saving money is to set a financial goal with your youngster, help him earn the money necessary over a period of time to attain the goal and enjoy the reward of obtaining the goal together. They must have a source of money preferably earned and they must have a piggy bank or toy space.
Provide a simple easy to use system to save money so that it becomes a weekly habit. Pay the allowance in exact change at the same time each week. Make sure the youngster has a special safe place to keep the money. Conduct a treasure hunt with your child together of all the loose change in the house. Don’t forget the pockets of coats and jackets, drawers, old purses and under shelf of kitchen. After you finish the game show your child have to roll the coin into the paper cubes. Get a piggy bank that’s just for saving. Spending money to go somewhere else like a coin purse or a wallet. Each week when you pay up the allowance go with your child and together deposit money into the piggy bank. Make sure the piggy bank is clear so the child can see how the money accumulates each week. See who can pickup the most groceries without going over $5.00. A passbook account is more fun for your child because the passbook is stamped every time there is a deposit.
Together with your child select a toy game or book that costs no more then 2 weeks of allowance then at the end of the two-week make a special trip to purchase the item. Consider telling over to teenager a complete management of the clothing allowance for the total amount of money you spend on him annually. For third degree spenders the parent may think for same as the payroll deduction plan. The 401K plan explains your child that for every dollar he saves you will match it with a dollar for whatever period of time you decide. Money should be fun. The sum needs to be large enough so that the kid can do all the do money management exercises that will prepare her for the future for the size of allowance. Between the age of 3 and 6 allowance should be the same number of dollar as their age.
There are three areas of money management SOS; “S” for saving, Offering for charity and spending. It is a good dinner table discussion to help up your children about charity. What job or jobs must the youngster perform in order to earn allowance and separately what duties are part of the job while as the member of the family. I believe in assigning specific chores that child does weekly to earn the allowance. I would like to differentiate additional responsibilities from routine courtesy. In my household we have two kinds of chores personal maintenance and general household chores. An allowance is the money given to the child as a payment for being a working contributing member of the family. The weekly net allowance started adjusting downward as your youngster heads into his teens and begins to earn his own money. The parent should not be flexible in the payment of allowance the chores must be completed before any money is paid. Money the parent gives the child each week as a payment for being a working member of the family is allowance. Weekly expenses that a child could absorb lunch money, Sunday school donation, school supplies, school field trips, a budget is a plan that lays out what you will do with your money.
Breakdown of a child’s budget: That is roughly 20% long‑term saving, 10-15% short-term, 10-15% offering, 40% living and 20% free money. Give that money under $20.00 billing for their free money budget. Between 21 and 50 half goes into saving and the other half into spending. Anything over 50 we workout a percentage, for the bulk goes into savings and some is available for the child. The goal is to pay all necessary bills with the allotted money.
The MESS system: “M” make a list. Making a shopping list is vital. “E” evaluate what are your truly basic necessities and what are not in your household, make three separate lists for toiletries, pantry, and health. When I got I ask myself can I live without this. The basic necessities list shampoo, deodorant, bar soap, sugar, coffee, dishwashing soap, garbage bags, etc. “S” shop, “S” stick to the agenda.
Relative value: The real price of something in terms of what it will cost you in work and time. Imperative shopping denotes the lightness and differences between two or more things that you are considering buying.
Amazon: http://www.amazon.com/exec/obidos/ASIN/0671798057
