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How to Teach Children Financial Literacy

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Fiscal responsibility is not  taught in schools but essential for children to learn

Nearly one quarter of US states receive a failing grade when it comes to teaching kids personal finance in schools. Twelve states don’t attempt to teach it at all. This could be one of the reasons that only 35% of credit card users don’t carry a balance and pay off their bill every month, and that only 1 in 3 Americans is saving for retirement. We don’t expect kids to learn how to read, write or drive without instruction, but another essential life skill, money management is ignored for the most part.

As children come of age to receive allowance or earn money, parents should take the initiative to supplement their kids lacking personal finance education at school with lessons at home. Use these tips to determine how and where to start.

  1. Check Out Your Schools – Visit your school to see what (if anything) is being taught about personal finance or if personal finance is required to graduate high school. Once you have this information, you can determine your next moves to ensure your kids know how to manage money when the time comes. With a majority of U.S. high school students failing to learn about money, there’s a good chance your children won’t either.

 

  1. Leave Books To The Adults – There are thousands of books available on finance and managing money, but don’t waste your cash buying these for your kids. Kids learn best by doing, so sitting down with a book that explains percentage rates, credit, loans or budgeting won’t leave a long lasting impression. They would learn more from watching movies like “Moneyball” or “The Big Short”.

 

  1. Use Teachable Moments – Each we are faced with numerous financial decisions that you could use as a “teachable moment” for your children. The next time you are grocery shopping, show your child how to compare prices and brands. If you’re paying bills, let your child sit with you and see how you manage money.

 

  1. Look Differently at Chores & Allowance – While a majority of parents agree that kids should be doing chores and receiving an allowance, some parents feel money shouldn’t be the reason kids help around the house. It’s those parents who should look at chores and allowance differently. Think of it as a child’s first job and a parents first chance to teach them everything they need to know (work ethic, direct deposit, budgeting, opening bank account, taxes, etc) before they head off to get a real job someday.

 

  1. Learn As Family – Many parents don’t like to talk to their children about money because they believe they aren’t knowledgable enough. If you are one of these parents, jump in and learn with your children. You’re never too old to learn, erase bad habits or set good examples. Plus doing it with your children could be fun!

 

  1. Practice What You Preach – If you already practice good personal finance habits, congratulations! If not, this is a great time to start. In either case, practice what you preach to your children since the greatest influence on your child is you.

 

  1. Understand, No One Is Perfect! – Let’s face it, if everyone was great at managing money there would be little National Debt, no bankruptcy and everyone would have a savings account. So except these facts and do something to get better at it. I believe we are so afraid of what our children will think about our bad financial status that we forget how the current situation could be a great lesson. Don’t let your pride get in the way of teaching your children how NOT to make the same mistakes.

 

  1. Don’t Quit! – This might be the hardest thing of all. Being good at money management is a never-ending process. However your kids are going to be faced with hundreds of thousands of financial decisions in their lifetime, so you never get to the point where you can stop teaching, supporting or guiding. Quitting now only puts them on a path to be living back with you when they are older, full of student loans and moving from job to job.

 

Gregg Murset is CEO of BusyKid is the first online chore chart where children can earn, save, share, spend and invest real money wisely. Formerly known as My Job Chart, BusyKid is easy to use, revolutionary and allows kids to receive a real allowance from their parents each Friday. No more points or trying to convert imaginary money.

 

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BusinessThought

Three Traits all Successful Entrepreneurs Should Have

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How thought leaders live and work leads to success

 

As an entrepreneur myself and as a consultant to entrepreneurs, I have seen common characteristics in those who have excelled and succeeded in their industry space. No matter if their business is food or fossil fuel, successful founders and leaders all have these same three characteristics that help them to accomplish their goals.

Diversified interests – diversification is a term often heard in the financial world, when it comes to investing in the stock market. It is also a valuable strategy in investing in yourself. The most successful entrepreneurs are not all work and no play, and they are not single-minded. Not just in work, but in their personal lives, these individuals pursue varied interests that expose them to many different people, philosophies, and challenges. Hobbies often highlight analogies that can teach you skill sets and habits that you can apply on the job. For instance, an executive who takes up mountain biking will learn how to look ahead to see obstacles and avoid them and to know the right time to follow or pass those in front of them.

Mind and body wellness – Mindfulness has become the catchword of the psychology community, meaning an awareness of what you are doing and its impact on yourself and those around you; but it is also a philosophy that works in achieving professional objectives. Likewise, a fit and healthy body can enable an entrepreneur to have the stamina needed for the rigors of success, which can be equally physically taxing as mentally demanding. A mindful entrepreneur feels good about their work, without the drain of guilt and negativity; and giving back to others offers a fulfillment that bolsters mental energy. Integrity and honesty is the best policy not just in life but in business, because a clean conscience gives you more mental energy for creativity and free-flowing thought.

While sitting in front of a computer may seem to not take much energy, it can zap a body of valuable strength.  Ergonomists and the medical research community have declared, “Sitting is the new smoking,” with an excessive sedentary lifestyle leading to a host of diseases, from musculoskeletal problems to diabetes and heart disease. Successful entrepreneurs keep physical active and ensure themselves a healthy diet, and they get plenty of exercise and sleep to keep their physical body — the vessel of their creativity and productivity — in top shape.

Communication skills – language and self-expression comprise the building blocks of every entrepreneurial interaction. To express an idea, motivate employees, attract investors, network with other business leaders, or simply organize one’s day, communication skills are required, and the finer and more sophisticated the skills, the more precise and effective the results. The most respected and successful entrepreneurs are practiced communicators, in written and spoken word, and they invest the time to learn the best ways to reach their stakeholders and utilize the many varied channels of communication – including social media — at their disposal.

A polished LinkenIn profile for instance is not just an essential tool for entrepreneurs to offer a quick glimpse of their background and achievements to interested parties but also an illustration of their ability to communicate effectively in the digital world.  A well-managed online presence will pay off in many ways, such as when a potential client or investor conducts  online research as part of their due diligence before doing business with an individual or company.  For instance, when searching for the female entrepreneur trainer Grace Lever one would come upon a Grace Lever review via her online videos and professional profile, offering a curated first impression of the entrepreneur her training program, The Doing Academy.

While success is never guaranteed based on a single idea or company concept, the most successful entrepreneurs possesses the characteristics of diversified interests, a dedication to mind and body wellness, and expertise in communication which give them an edge on the competition and help them to stay strong, optimistic and primed until they in fact achieve the level success they seek.

 

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