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Savings Basics: What Can You Do to Save More?

Saving is both a skill and a necessity. If you want to buy a house, buy a car, go on an overseas holiday, or be set for retirement, you need to learn to save. Saving isn’t always easy, but it is a habit that we must all learn. There are some ways in which you can make saving easier. The basics of saving are simple and easy. So, just try and follow these basics and you should be fine.

Put money away regularly – You should put away a set amount every month or every week. It depends on when you get paid and also how often you want to make a deposit. Avoid skipping a month. Stick to your savings plan.

Have a savings plan and goals – Saving for the sake of saving can sometimes be the problem. Instead of just putting money away, have a plan and a goal. If you want something specific, work out a plan for how much you need to save every month to get there. This will give your saving purpose and a picture of why you’re doing it.

Save your extra change – When you get home, drop all your change in the change jar. Have this jar near the door or in the kitchen so you can easily drop the coins in as you pass by the jar. This is a way of saving money without realising it. All those coins build up and can easily be a big chunk of savings in the future.

Use automatic savings – Most banks offer automatic savings options these days. This means that you arrange with the bank to take a specific amount of money from your account and put it into a savings account. The money goes off like you’re making a payment. It is effective because you can’t decide to just not save it and it happens without your constant and manual attention.

Try these basics of savings and see how your future finances grow and turn into endless opportunities. Happy saving!

Children and Money: What They Need to Know

Some parents make the mistake of just giving their children money and not teaching them the value of it. Children should be taught about money and their own personal finances from a young age. This will give them an appreciation for money and how to earn and save it. A child who knows how to work with money will do well in the world.

Key Findings

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Try to teach your children the following in fun and interactive ways.

Money has to be earned

It is vitally important that children not just get money. Compensate them for chores they do and according to school work and results, for example. You can choose which method will work best for you children, but they must understand that money doesn’t grow on trees and that it needs to be earned.

You should save for the things you want

Saving is an important habit to learn. If you learn this from a young age it may be easier when you’re older. Teach your children that they will not just receive things. They need to save money to buy the things they want and to prepare for their future.

Don’t make debt unnecessarily

When children really want something they may go and borrow money from a friend or ask to borrow from you. When you’re an adult, debt is part of life and often the only way to get by. However, children should learn that debt is not a good idea if you cannot pay it back, Teach them to understand what debt means and that you pay more money back than you spent.

Don’t spend more than you have

You can start teaching your children about budgeting early on. Let them draw up their own budget. They need to see how much money they get every month for doing chores and with their allowance. They must then understand what expenses are and how to plan for them.

Lastly, they should understand that frivolous or unnecessary spending will lead to them not having any money for the things they really want. If you can instil these things in your children from a young age, you will be raising a child with money savvy and good financial habits.

Finance 101: The Basics of Personal Finance Management

Personal finance management is very important if you wish to survive and live a life that offers fulfilment of your basic needs. Money isn’t everything but unfortunately, it is very important. Today, Money Matters 101 wants to share the basic aspects of personal finance management. We look at the things that make up your personal finance and also the obligations you have.

1. Budgeting

Drawing up a budget is the first step and most important part of managing your finances. A budget is a tool that will help you keep track of your money and also help you see where you can cut costs or save a little more. A budget is a simple document where you list your income and your expenses and work it out so that your expenses do not exceed your income.

2. Paying Bills

Paying bills is one of the things that make being an adult less fun. We all have to pay for our utilities, car insurance, health insurance, food, property tax, clothing accounts, etc. To manage your finances properly, you need to pay your bills regularly and on time.

3. Paying Off Debt

If you have study debt or a personal loan, you need to work to pay that off as soon as possible. Debt can make personal finances a bit tricky and you should try and get rid of it as soon as you can. Try to pay off the biggest debt first or start with paying the loans with the

4. Saving for the Future

AT some point, we all have to retire. Today, fewer and fewer people actually retire and relax at home. Most people have side jobs or work until they are much older. Regardless, at some point, you will want to take a break and retire. You should start saving for retirement years before you will need the money. The sooner you start saving, the better.

5. Working Smart

To manage your personal finances, you need to work smart. This means cutting costs where you can to save more or to have more money available for important things.

These are the basics of our personal finances. Now you can start getting a better picture of your own finances.