It has always been important to teach kids about money, as in later life this is a vital skill they need to master. Imagine a time when you were simply expected to learn about money in boring classes at school. Thankfully, those days are long gone. The site is being a good money role model for your children, kids of today also have a variety of toys to choose from to teach them about money. Whether it’s an inventive piggy bank or board games, there are toys that will make the process fun. Here are just five cool toys to teach kids about money.

Payday Board Game – $13.49

A classic for over 30 years, Payday is a game that teaches children the basics of making it through the month based on your paycheck. As the child makes it down the board, which resembles a calender page, she stumbles upon different expenses and bills she must pay from her paycheck. Best of all though, your child will not realize that she is actually playing something educational.

Learning Resources Pretend and Play Checkbook with Calculator – $16.99

While debit cards have become the norm in today’s stores, checks are still needed to mail the occasional bill. This play set not only shows children how to write checks, but how to balance their checkbook. This is one of the most commonly overlooked money management skills that can land adults in a bad position. Early introduction to check balancing can help prevent bounced checks in the future.

Electronic Learning Cash Cow – $24.99

Who needs a boring piggy bank when you can have a Cash Cow? This interactive piggy bank not only recognizes coins as they are inserted and shows the total on an LCD screen, but also teaches your children a thing or two about counting money. Best of all, when the child wants to get the money out, all he needs to do is push the cow’s nose and the mouth opens. No more broken piggy banks.

Monopoly Electronic Banking Edition – $30

Monopoly has been teaching children about money for decades. However, this edition not only uses more realistic prices, but also uses electronic payment methods. Children will have a blast buying multi-million dollar properties and charging expenses. My children still play the good old Monopoly game and would really love this one!

Barbie “Shopping Time” Cash Register – $40 – $95

Any little girl that is into Barbie will love this toy. The Barbie Shopping Time Cash Register allows children to ring up dozens of items as well as use credit cards or cash to pay for them. Children can even use grocery store savings cards. It’s a wonderful learning tool that is actually fun to use.

There are a number of ways to teach children about money, but when you make the process fun, they’re more likely to pay attention. Whether you’re teaching them how to balance a checkbook or pay for groceries, money skills are something every child needs to learn.

About the Author: Doyle Imbesi loves teaching children, especially when it is time to talk about money. He also writes about budgeting, grants for college, and employment agencies.

Shopping for your kids is a very tough job. Often you buy expensive things and your kids don’t like them or value them enough. So as long as your kid doesn’t ask for something in particular, your target should be to buy the best economical stuff in the market. The first 15 years of your child’s life are very expensive, which most people fail to realize, because there are a lot of small things you have to do, for example buying clothes, toys, visiting amusement parks, special kids meals and many other expenses.

This is the period of your life where you should try to save each and every penny. The most ‘money sapping’ things are toys. Toys cost a lot of money and are usually vulnerable to almost everything. Kids usually tend to be rough with their toys and end up breaking them. And as soon as it happens they want a new one, a better one. While shopping for toys your best bid to save money is by checking out second hand items. They might not be in the perfect shape but they will help your pockets stay in perfect shape. Buying a second hand toy could save you more than 40% to 60% on the product depending on your bargaining skills and the condition of the toy. If you do want to buy a new toy check for shops offering discounts, the best time to shop would be during seasonal holidays when stores usually offer great savings.

The next most costly but necessary items are clothes. As you know, clothes are available in all kinds of price ranges. Depending on the name of the brand and/or the material used, costs for clothes can go as high as a $100 or more. First and foremost you should look for factory outlets; they offer much lower rates than their franchises. Secondly, you could look for wholesale shops; again here rates would be much lower than at other places. Another thing to do is to visit stores offering discounts. But your best chance to get a much better discount is to shop online.

Shopping online is becoming a first choice for more and more people due to the discounts and special offers. The third and the last way of saving on clothes is to buy clothes from a roadside stall or a second hand shop, however this is like a last gasp shopping idea in case you are running out of cash.Amusement parks and kids meals at various restaurants are loved by kids all over the world. Of course these cost a lot of money but you cannot deny your kids a ride at the amusement park or their favorite meal. To help save some cash you can look for discount coupons. Discount coupons are easily available on websites and fan pages of various food outlets and amusement parks. Magazines and newsletters also contain special discount coupons.

One should always look for discounts and special offers when going shopping. Saving even a dollar while buying something could lead to a good amount of savings in the long term.

Mike has been buying his kids toys for the 2 years. He quickly realised the high cost of baby toys and found great ways to save money.

This trick is not really anything special. I actually made it up one day when I was fed up with my daughter just blowing all of her money on junk.

I had to give her fifty dollars as a reward for getting an almost perfect school report, however I held it off as long as I possibly could. So when she asked for the reward I had promised I started to think how I could slow down the disappearance of the $50 note I was about to give her.

I had already stalled her for a few weeks, saying I didn’t have the money, or that I had to get it out of the bank. I know this sounds like a scam on my part, but if only you knew what money this teenager wastes. Anyway I thought for a while and came up with no more delay tactics until I went to my purse and pulled out the $50 note. When removing the note from the purse it tore in half. For a moment I thought to myself, “oh no, I can’t give her that”, and then it hit me.

I quickly went around the house searching for a roll of sticky tape, which any normal person would use to fix the broken note. Not me though. I grabbed any sticky tape I could find and hid it all where my daughter would not find it. Then I went to her and gave her the broken $50 note, explaining how it had torn, but would be alright to use once stuck back together. Of course she did not mind because she knew it would be easy to fix.

My brilliant plan worked for a few days as she could not find the sticky tape, and being a teenager, was too lazy to do anything about it. My $50 survived 100% longer and I was happy. This would delay my daughter from asking me for money for a few more days as I would just say “but you have $50, you do not need my money” .

After I had played this little money saving trick, I started to think of more ways to do a similar thing:

1. Glue some money together (coins) with water based PVA glue so it can be dissolved later to use the money.

2. Freeze the money in a block of ice like the people freeze their credit cards.

3. Transfer the money through internet banking so there is no cash laying around. A bank that does not have an ATM card attached.

4. Put it in a moneybox that they would have to smash to get the money out of.

5. Hide the money in the house and let them search for it for hours.

Here is a picture of the $50 note after she had taped it together..There’s another delay tactic. Ask if you can take a photo of the note…LOL

Often it is hard to tell bad advice until after you’ve followed it, however when it comes to your finances you can’t afford to follow advice in the hopes that it will be good – you have to know before you take the advice whether it is bad. When it comes to the worst personal finance advice everyone has advice they wish they hadn’t heeded – so how do you spot the good from the bad?

Consider who is giving the advice, and what their motivations are. You don’t necessarily need to be a financial expert to give financial advice – there are plenty of people who can tell you their experiences with a home loan provider or give you the name of a hot share to buy – but you do need to make sure the person giving the advice isn’t trying to make you act in a way which benefits them.

For example, a time share property sounds good – we’d all like the chance to have a holiday house to escape to and it’s especially good if you don’t have to pay full price for the property. However, those people who are telling you a time share is a good investment, a benefit to your financial situation and a good tax deduction know little about you and your situation; these people are giving this advice for their own benefit, to sell their product.

Unfortunately considering who is giving the advice is just one way of spotting poor financial advice because unfortunately many financial institutions and financial products which encourage our financial decisions can be a bad idea too. So learn more now about how to spot the worst personal finance advice for you.

Home Loan Advice

When it comes to your home loan everyone has advice to offer, and they are all quick to remind you of the gravity of this investment. However, before you consider everyone’s advice, with a pinch of salt – because you’ll run out of salt – watch out for the worst home loan advice:

The big banks are the most secure option

Yes, many big banks are secure places to choose a mortgage from, but they are not the only option and they are not the only secure option. Banks get their funds for your home loan from the deposits of their savings customers, or they borrow money to lend to you, or a combination of both. When banks struggle or in times of economic uncertainty people withdraw their savings, banks can be left with little funding to cover their loans.

However, non-bank lenders for example source their loan funds from individual investors and can’t afford to over-extend themselves. Plus, all financial institutions are regulated by independent government bodies and are also given an independent credit rating so rather than choosing a home loan provider based on perception, do your research and shop around for the combination of the best loan and the best provider.

Just get into the property market – you’ll work out how to afford it later

Yes, property can be a very safe investment as capital growth is very easy to come by when you consider that property values typically double every seven to ten years. However, just because your lender or mortgage broker tells you that you are approved for a certain amount, it doesn’t mean you should borrow it all and buy up big.

Instead, work out whether you can afford it now because deciding to cut back on takeaway, new clothes, a new car and tropical holidays sounds like a great plan, but is it one you can maintain for the next 30 years? Is it really worth it? The costs of owning a home also go far beyond just the mortgage repayments so make sure you budget for at least 1% of the property’s value each year for repairs and maintenance, plus other costs such as renovations, decorating, power bills, water bills and rates.

There is nothing wrong with starting small, or waiting a few years until you can afford to buy because making sure you are in a secure financial position will mean you can also avoid subsequent debt many home owners face such as personal debt or credit cards which they have run up trying to maintain their lifestyle.

Pay off your high interest personal debt with your low interest home loan.

Yes, this really does sound like sound financial advice because you know how much of your credit card repayment goes to the high 19% interest rate each month – why not consolidate your debts into your home loan at a low 6% interest?

This is the worst financial advice for several reasons, firstly because when you consolidate your personal debts such as your credit card into your home loan your credit card balances are zero. It is then very tempting to start spending on those cards again and so you are just running up more debt and not learning from your mistakes.

Secondly, if you pay off your credit card debt it will take you a number of years and a lot of interest, but if you consolidate that debt into your home loan, it is going to take 30 years to repay and cost you potentially tens of thousands of dollars more in interest because you are paying the debt for so much longer. Instead, look into balance transfer credit card offers which transfer your balance to a low or 0% interest card to give you a fighting chance to repay your debts responsibly.

Credit Card Advice

Credit cards do not have to be a bad financial decision, it is simply the fact that they are so easy to misuse that gives them a bad reputation. It is this reputation, coupled with misunderstanding about how credit cards really work which leads people to take bad credit card advice such as:

Keep your credit card in your wallet for emergencies

Taking your credit card everywhere you go is just asking for it to be used, if you are honest with yourself you’ll realise that anything which is a true emergency will be able to wait the half an hour it takes you to go home and fetch the card.

Use a credit card for the rewards points

This advice is often perpetuated because people assume that they need a credit card and if they’re using it anyway, they might as well be rewarded for it, but that is covered in the next piece of bad advice.

Rewards credit cards typically have a much higher interest rate than a standard credit card so if you fail to repay your balance in full, down to zero, within the interest free period of that card – making sure the card has an interest free period – then your balances can be charged upwards of 20% interest.

You are then struggling with compounding interest because the interest on your credit card debt is calculated daily, and then compounds monthly. For example, if you have an outstanding balance of $200 on your credit card rolled over after you pay the minimum on your August statement, and you are charged 20% interest your balance in September is $240. Even if you made no new purchases on your card, your remaining balance of $240 (which includes $40 of interest) is then charged 20% interest again at the end of September, so you are being charged interest on your interest and this is why credit card debt becomes so unmanageable.

Everyone needs a credit card

Not everyone needs a credit card and justifying the use of a card because everyone else does is the worst personal finance behaviour. A credit card makes sense when:

• You have a home loan with a 100% offset account. In this instance you use your credit card for all of your spending within the card’s interest free days, leaving your wages and other income in your offset account to save you interest on your loan. When your credit card payment is due, you transfer the money you need to pay off your card in full.
• Business cash flow. Big and small business owners use their bank’s money to keep their business running as they wait for their customers to pay invoices or income to come in. Again the use of interest free days gives the card holder the freedom to spend, secure in the knowledge the balance will be paid.

A credit card is also not a viable emergency fund because of the interest rate, and instead the correct financial advice would be to develop and emergency savings fund to cover car break downs, emergency doctor visits or unexpected bills, as this averts the snowball effect of new emergencies in the future such as a large credit card bill.

For every other credit card function – such as buying online or over the phone – a debit card will suffice. A debit card looks and acts like a credit card, but accesses your own transaction account rather than accumulating a balance.

Savings Advice

Your savings are important to your personal finances because they give you freedom. With a strong savings plan you have the freedom to plan your future and your retirement, you can fund an emergency expense or a last minute work trip and you can save up for the things you want without having to put your purchases on credit. Therefore, to protect your savings, watch out for financial advice such as:

You need easy access to your savings

When it comes to your emergency fund, yes you do need easy access, but for your holiday fund, your renovation fund or your TV fund you can distance yourself from your savings. Choose an online high interest savings account from a provider which is linked to a transaction account from a different provider. This will mean that any transfers you make from your savings account to your accessible transaction account will take at least 2 days to be processed, making it harder to succumb to impulse buys and deplete your savings.

If you have a longer term goal to save for, consider locking your savings away in a term deposit account which does not allow you any access at all, but continues to earn you a guaranteed high interest rate daily.

Wealth builds wealth

Yes, the more money you have in your savings the more your savings will grow thanks to compounding interest earnings and higher interest rates tiered on your higher balances. However, wealth is not the only way to build savings, so don’t be discouraged from saving because you think you don’t have enough to start.

For example, if you have just $500 in savings and want to save some spending money for an overseas trip planned next year, put your $500 in a high interest savings account at 6.51% interest and continue to add just $100 a month and you’ll have $2,000 spending money in just a year.

Borrow from your retirement funds

Most companies offer a loan feature on 401K retirement savings plans which allow workers to borrow against the money in the account. The loans are encouraged as good financial advice because financial services companies believe that if you can tap into the retirement fund, you’ll be more willing to participate in contributions because you don’t feel as though your contributions are locked away. Plus, when you pay interest back on your 401K loan you are essentially paying interest to yourself.

However, if you lose your job your 401K loan must be repaid in full within just a few weeks and if you can’t repay the loan amount the outstanding balance is taxed, and penalised as an early withdrawal. So on top of the loan amount you have to repay, you could be paying thousands more in penalties. Plus, you can’t put your loan amount back and you miss out on the potential of future interest, for example a loan amount of just $6,800 at 8% interest could have earned you over $75,000 if you’d just left it in your account.

We all know children are not born knowing how to handle money. We need to teach them. Everything we do and say is being recorded by a child’s brain. They are always watching their role models and pick up similar traits and habits. If you cannot manage your money, then how do you expect your children to be able to do it?

Here are some tips on ways to teach your child about money:

1. Allowing your child to earn money and then choose how to spend or save their money is a valuable lesson.
2. When dealing out an allowance it should meet your child’s needs plus a bit extra. That way they can learn to save this money.
3. If you decide to give an allowance, pretend it is for choirs around the house. Money is not free when you get older.
4. Earning money and spending it can show the value of money to a child.
5. When giving a child an allowance, treat it as a paid job. Some children might have a few household jobs to qualify for the allowance.
6. Set a goal for the child to work towards. For example you can show them how to buy a big item that you have scrimped and saved for. When you actually can buy this item it is a great achievement. Later they can move on to bigger items such as a car and house.
7. Make sure your child has a money box and knows the money is building up each time they add to it.
8. Open a bank account with the child’s own name on the account. Let them watch the money grow.
9. Before handing money over to your children, ask what they plan to do with it and discuss it further.
10. Don’t hide your child from poverty. Show them the other side of life and remind them that saving money is a vital part of life.

Here are some quick ways to be a good money role model to your children:

1. Let them see that you are in control of your money.
2. Let them know your goals and make sure they see you achieving them.
3. Advise them every step of the way and use your personal ecperiences as examples.
4. Don’t hide the families finance situation from them. They always know what going on and can learn from the truth.

Spending your money is ok if you are in control of your money. Some very rich families feel “out of control,” and some very poor families have this vital feeling of being “in control.” Help your children learn how to be “in control” of their spending.

 

My news years resolutions just fade away into no-where land, however I lowered my spending habbits in 2009 and now intend to do better in 2010. This a new years resolution that I think I can keep it.

In 2009 I paid off about 15,000.00 worth of debt, not including the home mortgage so I am very pleased with myself. What I did is I kept chipping away at it all every week…Even if I could only pay a small amount, I would still do it. Trust me, it really does all add up in the end. I was shocked when I added up the amount I had managed to pay in one year. By the way one of these was a credit card that was costing me at least $75 on month in interest alone. So now I have less bills to pay now too….

My problem was that I had too many things to pay off which created too many bills for me to pay every month. This year I have eliminated at least 3 monthly bills that were strangling me. And the thing is…now that I have achieved this, I want more… I do not want to give anyone my money by paying late fees, unecessary bank fees, and interest fees…Why should they have my money.

So my 2010 new years resolution is to cut down on spending money a bit more and save more money in order to pay more bills…
I am actually good at not spending money but its my family that wear me down.

The hardest part for me is that I have two children that expect everything. In this day and age they have not done without anything and unfortunately they are not grateful for this either. So along with the wanting, spending, expecting, their attitude is terrible.

Maybe my new years resolution isn’t about saving money, but more about knocking that terrible attitude out of my children.

I am sure there are plenty of people out there with the same problem. How can I get them to appreciate what they have around them and stop spending money on things they don’t need.

This article is for all the moms, dads, grandparents and childcare providers who are trying to stretch their dollars and still provide fun activities and supplies for the children. Below you will find 20 recipes for homemade art supplies including play dough, modeling clay, paint, slime, goop, glitter, sidewalk chalk, papier-m?ch? (paper mache) and multi-colored crayons.
* * *Homemade Art Supply List
Along with a good supply of crayons, markers, chalk and lots of paper, your children (or grandchildren) will also love playing with these homemade art supplies and games. You can purchase many of them at the store, but why not save some money and teach your child how to be even more creative by making their own supplies? Children love seeing how things are made, and they love the time you will be spending with them while making these projects. If you don’t have kids at home, try making up a batch of something just for yourself, I won’t tell if you don’t! I have been collecting these recipes for 13 years, many of them are scribbled on a scratch piece of paper. Enjoy!

Glitter Mix together 5-6 drops of food coloring and 1/2 c. salt, stir well. Cook in microwave for 1-2 minutes or spread out on a piece of waxed paper to air-dry. Store in an airtight container, as with all of the art supplies in this article.

Sidewalk Chalk 1 c. plaster of paris1/2 c. water2-3 T. tempera paintMix plaster of paris and tempera paint, then add water and mix well. Pour into molds and let dry for 24 hours. Remove from mold and let air dry for 2-7 days depending on size. You can use paper cups, plastic butter tubs or food trays, candy molds, muffin tins, or even toilet paper tubes covered with foil on one end.

Finger Paint 1 envelope unflavored gelatin1/2 c. cornstarch3 T. sugar2 c. cold waterFood coloringDishwashing liquidWhite shelf paperSoak gelatin in 1/4 c. warm water and put aside. Combine cornstarch and sugar in medium sized pot. Gradually add remaining water and cook slowly over low heat, stirring until well blended. Remove from heat and add gelatin. Divide into containers, adding a drop or two of d/w liquid and food coloring to each.

Paint 1 c. liquid starch6 c. water1/2 c. soap powderFood coloringDissolve soap powder in water, add starch and food coloring.

Edible Peanut Butter Play Dough This recipe is especially good for toddlers because they can play with the dough and then eat it. (Be sure to wash hands and work area!) It’s also one of my favorite candies, when made with peanut butter and powdered sugar!1 c. peanut butter1/2 c. honey1 c. plus 1/2 c. powdered milkMix ingredients and roll into balls. Cook Play Dough 1 c. flour1/2 c. salt2 tsp. cream of tarter1 c. water1 T. oilfood coloringMix first three ingredients together and then add last three. Cook on low heat, stirring constantly, until it forms a ball and becomes dull.

Kool-Aid Play Dough (no cooking required)3 c. flour1/2 c. salt1 pkg. unsweetened Kool-aid1 T. alum2 c. boiling water Mix together first three ingredients then add boiling water. Knead dough with up to an additional 1 c. of flour until it becomes the right consistency.

Jell-O Play Dough(no cooking required)4 c. flour1 c. salt2 pkgs. unsweetened Jell-O4 tsp. cream of tartar2 c. boiling water2 tsp. cooking oil or baby oilMix together first three ingredients then add boiling water and oil. Mix together well and knead until dough becomes the right consistency.

Sticky Putty 3/4 c. plus 2 T. water1 tsp. Mule Team Borax8 ounces white glueFood coloringHeat water over medium heat and add borax, stir with wooden spoon until dissolved. Add glue and a few drops of food coloring, stirring constantly until glue and water mix. Pour into a plastic bowl and cool.

Modeling Clay 1 c. cornstarch1 and 1/2 c. water16 ounces baking sodaCombine cornstarch and baking soda together in large saucepan. Stir in water and cook over low heat until the mixture becomes thick and forms a ball. Remove from heat and cool. Knead the dough on a countertop dusted with cornstarch until smooth.

Air Dry Clay 3 c. flour1 c. salt1/2 c. white glue1 c. water1 tsp. lemon juiceMix together until well blended. Mold into shapes or roll out and cut with cookie cutters. Let dry overnight before painting.

Papier-m?ch? Mix one part flour with about 2 parts of water until you get a consistency like thick glue. Add more water or flour as necessary. Mix well to get out all the bumps.

Goop 2 c salt1 c. water1 c. cornstarchCook salt and 1/2 c. of water for 4-5 minutes. Remove from heat. Add cornstarch and remaining 1/2 c. of water, then return to heat. Stir until mixture thickens. You can also add food coloring to this.

Multi-colored crayons Peel broken crayons and melt carefully in a small aluminum pan at 350 degrees for 15 -20 minutes. Cool and break into new multi-colored pieces, or carefully pour melted mixture into small waxed paper cups and remove paper when cooled.

Disappearing Paint Mix 1/8 tsp. “bluing” (laundry additive) with 2 cups water. Paint the sidewalk and watch the blue color disappear. Face Paint Mix poster paints with cold cream.

Cinnamon Clay This recipe is great for Christmas ornaments or scented hearts around the home.1/4 c. white glue1/3 c. applesauce3 T. cinnamon1 and 3/4 c. flour1/4 c. waterMix ingredients together until dough forms a ball. Knead dough for 1-2 minutes, adding a little more flour if needed. Roll dough out and cut with cookie cutters. Bake at 300 degrees for 10 minutes.

Crazy Putty (this putty bounces) 3/4 c. of white glueAdd enough liquid starch until a ball of dough is formed, then add food coloring and knead dough until it’s completely worked in.

Slime 1 c. glueLiquid starchFood coloring, if desiredAdd starch to glue slowly until mixture becomes the right texture; slimey!Lap Desk Make a pillow out of scrap material, fiberfill and some poly/plastic beads to make it squishy. Attach a lap tray or board with strips of Velcro.

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