Emphasize the importance of money management

Educating your children about money will help them in their financial futures and can help them avoid credit repair services. There is no better time to teach your kids about the smart usage of payday loans and money management than right now. Your budget is probably stretched to the max, and it’s important for your children to understand how money works, especially in difficult financial times.

Common Mistakes

Parents make a few common mistakes when they teach their children about money management. First and foremost, you should not cave into your child’s every request. It’s easy to feel guilty for not buying everything your kids want, but by giving them everything they ask for, you are setting a poor example and failing to teach them the value of money. A child that is accustomed to getting all her heart’s desires will have a very difficult time understanding the concept of budgeting.

It’s important for parents to understand that it’s okay to say no. You aren’t saying no to be mean to your children; you’re saying no to teach your kids a lesson. Kids need to learn that you can’t have everything you want. Life doesn’t work that way. Kids also need to learn that money isn’t an unlimited resource and irresponsibly using financial resources such as payday loans and cash advance can be extremely damaging. Money doesn’t grow on trees, and it is limited.

Some parents also neglect to give their kids money management guidance. Be honest with your children. It’s completely appropriate to talk about the family budget with your children. This does not mean you should burden your children with the stress of bills or make them feel guilty about how much children cost. However, you should explain to your kids that there is a certain amount of money that comes into your home, and there are certain expenses that have to be paid every month, like utilities and grocery bills.

The easiest way to help your children understand the value of money is to teach them to earn money. You can give them an allowance for completing certain chores, and when they’re old enough they can even go out and get a job. If your kid wants a $35 toy and only makes $10 per week in allowance, you will teach him that saving is necessary to get the things he wants. Visual aids are also very helpful when teaching kids how to manage their money. Try using jars to help your kids allocate their money. They can use one jar for everyday spending, one jar for bigger items like that $35 toy, and one jar for long-term savings (which should later be put in a savings account).

Set a Good Example

Smart money management brings a significant amount of financial success.

Your children are watching your every move, whether you like it or not. This includes your money spending and saving practices. If your children see you shopping compulsively or pulling out your credit card when ever you get a chance, or even obtaining more payday loans than needed, they will be getting the wrong message about money. So practice what you preach. If you spend and save wisely you will be doing your own budget a favor, and you will be teaching your kids life-long money lessons. Using money responsibly will help your credit, and your kids will be more likely to avoid credit problems in the future. Credit repair services are there if you need them, but it’s best for you and your kids to avoid bad credit altogether.

Food Storage

I have to admit, I have pretty-much been coasting through the current economic crisis, taking out installment loans whenever necessary. Although my heart goes out to those people who are struggling, we personally hadn’t been one of those who had lost their homes, lost money in the stock market, or lost their jobs. But then, last week, the reality of all of it hit home.

First, although his job was safe, half of my husband’s company was laid off. That same day, my daughter’s husband lost his job and a close friend told me she had received a 60 day notice that her company would be closing and she would be out of work. Another friend, a real estate broker, had to close the doors on her business and she had to go to work as a receptionist in someone else’s office. Still another friend’s brother lost thousands of dollars just this week in the stock market and had to take out installment loans just to get by. To top things off, my daughter called and told me her husband’s company, Micron, is laying off 1500 employees by Christmas.

We Need to Prepare for an Emergency

We had a family meeting and decided that we need to set in place some safeguards and prepare, just in case things get worse before they get better. We also decided not to get installment loans to do this, rather do it in an economical fashion. But how do you prepare for the worst? We decided that our family would concentrate on the following four areas:

1. Build a Three-Month Supply of Food

Build a supply of food that is part of your normal, daily diet. One way to do this is to purchase a few extra items each week. Store canned foods with high liquid content, dry mixes, and foods that do not require refrigeration, cooking, or water, as much as possible. (Note: Be sure to include a manual can opener.) First start building a one-week supply of food, then gradually increase your store of food until you have a three month supply. Be sure to rotate this food regularly to avoid spoilage.

2. Store Drinking Water

Store drinking water. If you go even one day without water, you can be suffering. You should store at least one gallon of water per person per day. A two week supply should be the minimum.

3. Live Within your Means and Build a Financial Reserve

It’s time to cut back. When you buy anything, decide if you really need to have it. Can you instead put that money into food or water to store or can you put it into a financial reserve? Save a little money each week.

4. Grow your friendships

When the crisis hits, nothing will be more important than how prepared you are and how strong your friendships are. If September 11, 2001 was the worst day in American history, September 12th surely was the best. September 12th, 2001, we saw more compassion in one day than any day any of us can remember. Churches filled up, neighbors said hi to one-another, families came together, we called everyone we loved just to say hi,we hugged strangers. Don’t wait for the big catastrophe; reconnect with each other now.

Don’t take out installment loans or go into debt to purchase your three-month supply of food, your drinking water or to build a financial reserve. But do what you can, as fast as you can. With these tips, if a crisis hits, you will at least have food, water, money and friends.