As kids grow older, it is essential that they know the value of a dollar. Usually when people say this they are referring to their kid getting their first job. But in retrospect, kids should be taught the value of a dollar and how to stretch it before their first job! Applying the following steps will ensure that your kids will learn how to become financial savvy.
Around the age that your kid becomes more aware of their surroundings and curious about everything, sit them down and have a chat with them about money and finances. First, involve your kids in creating and maintaining a budget. It’s a good idea to do this because the older they get the more money they will want. Second, kids should know how the money is spent. This will allow your kids to be more sensitive to money limitations, and maybe not ask for that really expensive toy in the window. And third, kids should know approximately how much money is coming in, and how much has to go out to maintain life. When kids know this information, they will be more sensitive to your role as the provider.
Knowledge about financial obligations might encourage kids to find ways to earn money on their own at a reasonable age. Not only will teaching your kids to become financial savvy be beneficial to them, but it will also encourage you to practice what you preach. In this economy, it’s always best to learn and save together as a family.
Do you have trouble with spending your own money? Just about everyone, whether you’re a single parent or just single, at some point has trouble keeping their finances in check. Today, money can be tight and a very scarce thing. That’s why controlling your spending is the most key thing to those who can’t seem to hold on to their last penny!
Many people have different ways of keeping their finances in check, but not everyone gets to that point of making personal changes to their spending habits. To start managing your finances, first develop a spending plan to avoid overspending. You can do this by making a list of things you need, and afterwards assign a dollar amount to each thing listed. This way you can stick to a stricter plan and be more in control. After you’ve done that, get a few previous bill statements for things that you’ve paid for in the needs category for things like food, clothing, transportation, etc. Once you’ve done that, look at your bank account online for ready access to your funds and statements. This will allow you to match you list to what you have in your account already.
Managing money is more of a necessity nowadays to staying afloat in this economy. If you want to survive and make every penny count, following these steps will surely get you on a healthier financial track. And if you’re lucky, you can squeeze room in for splurges and more elaborate forms of entertainment and treating yourself!
One of the first single moms I found online who was successfully running a business is Kelly McCausey. She was doing things that I wanted to learn how to do. In short, she was my inspiration.
Kelly took time to chat with me about being a single mom and reinventing herself once her now grown son moved out. She shared her struggle with finances for quite a while after getting divorced and the amount of debt she was in.
If you are struggling financially, Kelly will be a source of inspiration and motivation to turn things around. She shares an amazing resource she used to get out of debt. Listen in to see what it is.
Kelly now is the host of SoloSmarts radio show and owns SoloSmarts.com. You can get her free guide on the site.
To contact Kelly pay attention to this information:
After you finish listening leave a comment below about the show. Are you struggling with your finances? Have you found a way to make more money, start a business, or get out of debt successfully? We want to know.
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
Kids who learn about finance management early in life are more likely to be financially responsible as adults. Young children might not need to know about mutual funds and mortgages, but they are smart enough to start learning about the value of money. Teaching your child about the importance of saving money and working hard to get it will give him a solid foundation for making the right financial decisions in the future. Kids learn best when they have no idea that they are learning, so it’s important to come up with fun ways to teach them about serious subjects like finance. Depending on your child’s age and interests, there are a few effective and exciting ideas you can try to get him interested in learning the basics of money management.
Since it’s a little too early for your child to keep track of savings at your bank’s local branch, get him started with a piggy bank. To a child, a piggy bank is essentially the same thing as a savings account. Encouraging a child how to use one is a great way to teach him how banks work and why saving money is important. Ask your child to put some of the money he earns into the piggy bank instead of spending it. After he collects a good amount, take him to the toy or candy store for a reward. Let him pick out whatever he wants to buy because he earned it. It’s a good idea to give your child some extra money as an interest on his savings. It’s an easy way to teach your kid that saving pays off in the long run and leads to better rewards than spending a little money at a time on smaller things.
Make sure that you are giving your child money for a job well done and not just to fill up his piggy bank. Have your child do light household chores to teach him the value of money. It’s important to show young kids that every little bit of money requires hard work. You can have your child clean his room or help you out in the kitchen. Give him age-appropriate tasks that won’t be too overwhelming. Make sure that your child connects the work he is doing with money by giving him a small payment immediately after he is done. Try to use change, so it’s easier for your kid to put a portion of his reward into the piggy bank. Older children can get money in bills as long as you use small denominations.
It’s important to let your child spend a little money after he earns it instead of putting everything into the piggy bank to keep him interested in making more. If you are teaching your child finance management, chances are that he is old enough to count. Spend some time counting money together, and come up with financial goals. Setting objectives will give your kid a chance to practice both math and financial responsibility. Most importantly, always set a good example by taking control of your own finances and slowly teaching your child how to make the right financial decisions as he gets older.
Naomi Esterly believes that it’s never too early to teach kids the value of money. In this guest post she provides practical lessons on how to get them started with finance management. These are the very same things she’s taught her kids and she hopes that you’d find it useful too. When she’s not penny-pinching she is a freelance writer.
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
I cannot express enough the ease of creating a budget if you have the right tools. For some it’s frustrating and complicated.
I have also taken the simplistic approach. I don’t have time for complicated and convoluted spreadsheets. Ugghhh!!!
So I take a sheet of paper and list all my income. Then I list my major household expenses. I add them all up and get the total. I take the total and subtract it from my income total to see what I have left. Very simple.
If I’m over or in the red, meaning more expenses than income I make adjustments or find a way to make more income. Working overtime helped or doing a side gig.
Getting Fancy with Budgets
A few years ago I learned that a budget should or could be created using percentages. Each household category gets a percentage of your income.
That is too much for my mommy brain, but I did come across a budget calulator tool by Crown Financial ministries.
It’s a simple, yet handy calculator that will give you a picture of what your budget could look like no matter how much income you have.
Just put in your yearly income and it will tell you how much you should budget for each category. Simple. Easy. Quick.
Of course you can adjust things but it’s a great way to get started.
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
What did you do with that envelope that used to arrive once a year with estimates of your future Social Security benefits? You might have reviewed the information. You may have even filed the statement away as a reference. Now, this powerful financial planning tool is as close as the nearest computer.
“Often, people don’t think of their Social Security statement when thinking of their financial well-being,” says Rod Griffin, director of public education for Experian. “But your statement can be a valuable financial planning tool.”
Your SSA statement is now available online at www.socialsecurity.gov/mystatement. It provides an estimate of the amount of Social Security benefits you could receive upon retiring, but it can also help you with retirement savings strategies, estate planning and making decisions about disability insurance.
Retirement Saving
Knowing how much your Social Security payments will be can help you better understand how much you’ll need to save in other vehicles to fund your lifestyle during retirement. After reviewing your statement online, you may decide to adjust your 401(k) contributions, open an IRA or seek other avenues for funding your retirement.
The statement can also help you work with your current employer to ensure they’re withholding the appropriate amounts.
Estate Planning
Your online statement will also give you an estimate of how much your survivors might be eligible for if you die. This information covers both spouses and minor dependent children.
“This could be useful information when you’re planning how you will financially take care of your loved ones if you pass away,” Griffin says.
Estate planning often involves considering what sources of income will be available to survivors, and knowing how much Social Security benefits yours could be eligible for can help in the planning process.
Disability Decisions
According to the SSA, 62 is the earliest age people can collect a reduced Social Security retirement payment, and the full retirement age is 67 for people born after 1960. But a 20-year-old worker has a three in 10 chance of becoming disabled before reaching retirement age, and the average age of people receiving Social Security disability benefits is just 53 years old.
If you have a health problem that you know will lead to disability, knowing how much you could expect to receive from Social Security may help you make decisions about how much disability insurance you’ll need.
With the availability to access your Social Security earnings and benefit information online, it’s easier than ever to make use of this important financial planning tool. The SSA uses Experian’s fraud prevention services to securely authenticate and safeguard the identities of people accessing their earnings and benefits information online.
To access your statement, go to www.socialsecurity.gov/mystatement, create an account and provide the information as prompted. You’ll be able to access your benefit information and even see a history of your annual earnings for every year. For more information on how to live financially smart, go to www.livecreditsmart.com. (ARA)
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
Hi! Welcome to RichSingleMomma.com. I started this website almost a decade ago because I couldn't find any blogs back then that helped single moms with money. I was having some success in that area so I decided to share what I knew about side hustles, making extra money, and managing money. Read more...
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