TEACHING YOUR CHILDREN TO WORK WITH MONEY

Every parent wants the best for their children, and the best we can give them is a sure footing in life. One of these areas is intrinsically linked to how they will perceive value in others, value in themselves and the value of things around them.

It is hard for children to understand the concept of value for money when they have not worked to earn the money for themselves. When a younger child goes shopping they are easily drawn to everything that piques their interest, followed by a torrent of tears if they don’t get what they desire.

So, how do you teach a child the value of money?

BUDGET 2015 - HERE'S WHAT YOU NEED TO KNOW...

“Today’s budget is constrained by the need to consolidate our public finances, in the context of slower growth and rising debt.” said Minister of Finance, Nhlanhla Nene.

Giving the budget speech was a far from enviable job in light of the huge government spending deficit that needs to be recovered. The speech was a short 26 pages long, but what every person on the street wants to know is: How will this affect me?

10 TIPS FOR FINANCIAL PLANNING

Do you want to begin your 2015 financial year on a good note? Then what better time to review your financial plan!

A financial plan provides you with the financial security to overcome unforeseen events and map out a financial future for yourself. When creating a financial plan you need to identify key achievable goals that can advance your financial situation.

Here are 10 tips for improving a financial plan:

HOW DOES YOUR BUDGET SHAPE UP IN SA?

Whilst I always view clients within their unique situation and tailor their financial plans to their needs and goals, part of knowing how to guide them involves an awareness of current trends and the economic landscape. One of these measures is found in the Old Mutual Savings & Investment Monitor that was published in early August 2014.

Essentially, this survey asks the question: ‘Are you financially comfortable?’

They looked at households from metropolitan areas that were earning an income. 

GAIN CONTROL OVER YOUR MONEY

There is a myth that Ostriches, when faced with danger, bury their heads in the sand. Although it is not found to be true in nature, many of us tend to behave like this when faced with our monthly budget…

Financial behaviourists actually call the avoidance of perceived risky financial situations by pretending they do not exist, the Ostrich Effect. This tendency to pretend that all is well or ‘bury our heads in the sand’ instead of pro-actively managing our finances is one of the reasons why so many people are in deeper debt than they should be. Turning a blind eye to your finances is the first place where you will lose your control over your money.

If you want to stop being behind every month then you need to take back your control of your finances. You don’t need more money to regain control, you need to manage your income and your expenses better – that’s all!

PLANNING FOR THE UNEXPECTED

How can you plan for the unexpected… and, if you’re expecting it, then how can it be unexpected? 

Well, those are good questions!

Planning and arranging your spending plan to include the ‘unexpected’ is a wise approach to take. When we talk about unexpected costs we generally mean services or commodities that are over-and-above what you would normally expect, but might be able to find out with some deeper digging.