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Saturday, 31 August 2013

The Importance Of Teaching Your Children About Finances So That Your Family Business Will Continue To Be Successful

By Timothy Moseri


Successful executives are proficient in a number of different areas. Managing assets in both your business and personal life is one of the most vital areas to master. If your company is to continue for years to come, it's critical that your kids also learn to handle money intelligently. This article will show you some basic ways to help you educate your kids about asset planning, and how to handle their personal finances.

Provide an allowance for your kids- Try connecting an allowance to duties like cleaning their rooms, taking out garbage, or feeding the pets. Their allowance should be tied to your children's finances, capabilities, and ages.

Establish savings objectives to help your kids build up their personal economy- Create and prioritize a list of why your kids should save, and things they want to save for-large and small. Build a chart that encompasses a ranking system. Put one star for the items that are least important, two stars next to the things they would like, and three stars next to items they want most. Use this strategy to help them establish the amount they need to put away.

Keep their savings in a safe place- Keep spending and savings money separated (perhaps in labeled containers). Use different colored folders for purchases and saving, and attach a photo of that "something special" to keep their goals visible. Also, have them open a bank account and keep their spending cash home.

Track your children's progress- Honestly, most children will find saving as stimulating as watching paint dry. However, they can still attain their personal economic goals (and keep it exciting) by making a savings thermometer, and coloring in sections as money is saved. Place the charts in noticeable places so they can celebrate their achievements, and make saving money enjoyable and rewarding.

Spur-of-the-moment purchases should be avoided- Your child's savings objectives are often hindered by impulse buying (e.g. that new hot toy). To keep them from getting off-course, here is some advice:

Remember your savings objective- For comparison reasons, carry a photo of what you are saving for when tempted to buy something.

Leave behind money- Limit spur-of-the-moment purchases by only bringing a certain amount of cash for shopping.

Leave some cash behind- Impulse purchases can be avoided by only taking a limited amount of money when shopping.

Invest money by seeking help- As a parent, help keep your children's money in a secure place to avoid the urge to spend.

Don't rush into purchases- Prioritize your "wants list" to the other things you desire. resist buying anything you see for at least 2 weeks.

Your children will successfully reach their financial objectives once they develop good saving habits. Once they prove that they can save a predetermined amount of cash, you might even consider matching their funds. In order for your company to continue to prosper, it is essential for your kids to have sound ideals concerning their finances. This will help them well into their adult lives.




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