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9 Lifestyle Changes That Will Help New Parents Save More

If you’re a new parent, you not only have tons of sleepless nights, but financial worries as well. You may worry about how you to save extra money to meet the additional requirements of a new-born, which can be rather costly. Add hospital and grocery bills and it seems like an uphill task. Fear not, though. Many new parents unnecessarily drain their family budgets without realizing it. Here are some lifestyle changes that will help new parents save more money monthly.

  1. Go for basic

Many new parents leave the hospital after a delivery with less money in their wallets than they planned for. That’s because hospitals tend to encourage their patients to pay for add-ons they don’t need. Private room, TV, Wi-Fi, nurses popping in every minute, and many other seemingly needed services cost good money. Instead of splurging on these hospital add-ons, think about ways you could save. Choose a cheaper ward and skip the TV and Internet.

  1. Adopt healthy food habits

Coffee and energy drinks to stay alert, chips and instant noodles for a quick snack and dinner… these are all bad eating habits that cost you a fortune. Have plain water with lemon instead of coffee and energy drinks whenever you lack energy. Munch on vegetable sticks for a quick snack. Make an omelet or a veggie soup for dinner. If you or your partner smokes, quit it. Cigarettes are expensive and bad for your health.  

  1. Take advantage of rewards programs

Since you’re going to buy the same products, such as diapers, baby wipes, formulas and baby food, taking advantage of rewards programs can save you significant money. Look for stores and supermarkets that offer a rewards program. Compare the prices and decide if it can help you save.

Moreover, try buying online. Popular shopping websites often offer some good deals and discounts. If you’ve never paid attention to shopping rewards, now is the perfect time to start. Many credit cards offer a cash back program that returns a part of your money to your bonus account. Make sure you pay off the full balance each month, though.

  1. Use coupons and ask for samples

New moms are always on the lookout for coupons. Coupons may not help to save a lot, but $2 saved today can turn into $60 saved in a month and up to $700 in a year. With coupons, you can get a baby lotion or a pack of diapers for a reduced price.

Stay updated about free samples as well. Ask your pediatrician for free samples. They may give you anything from eczema cream to baby formula. Some manufacturers also suggest free samples of baby stuff and food, so why not ask for them? The same goes for cosmetics, clothes, and food for you and your spouse. Free samples are typically of the highest quality to attract buyers. So keep a look out for them.

  1. Review your child care expenses

If you are planning to get back to work a month after a delivery and there’s no one to take care of your baby, babysitting may be your biggest monthly expense. Hiring a babysitter is tricky and costly. Even a workday nanny may cost you almost as much as you earn.

Trim the expenses by hiring a student or find a few other new parents looking for a babysitter. Splitting child care cost will boost your family budget. But group babysitting typically involves home swaps, so do keep that in mind.

  1. Buy used clothing

Infants grow very fast. When you buy a lot of new things for your baby, be ready to throw away half of them. The major complaint of new parents is that their children outgrow their clothes without wearing them at all. Since new baby clothes cost as high as adult ones, why not purchase used but good ones? It doesn’t matter whether your baby’s romper is brand new or old, your infant will more likely outgrow it within a month. But it does matter for a healthy family budget.

  1. Adopt healthy habits

New parents are likely to get sick more often than experienced ones. Sleepless nights, skipping meals, working hard, stress, anxiety, and financial problems wreak havoc on their bodies. Thus, they end up spending more money on medical bills and prescriptions.

Developing healthy habits are among the most important lifestyle changes that will save you significant amount of money over time. Cook healthy meals, take naps whenever your baby falls asleep, ask your parents to help with the chores, and try shifting nights with your spouse. Health is wealth.

  1. Carry a baby-care bag wherever you go

Prevent unexpected expenses when you walk, shop, or travel with your child by carrying a baby-care bag with you. It has to contain at least 4 diapers (depending on where you go), wipes, a tube of ointment, an extra outfit, baby-friendly snacks (if your child already eats solid food), and drink. Make sure you pack a snack for yourself as well. Street food isn’t only unhealthy, but costly too.

  1. Make baby food at home

Instead of spending tons on bottles of mashed fruits, vegetables and meat, make it yourself. What’s more, homemade baby food doesn’t contain preservatives and additives. Plus, they turn out to be a lot cheaper than store-bought versions, not to mention that they are super easy to make. Look for recipes online but check if your baby has any food allergies to alter the ingredient lists.

 

With a few lifestyle changes, new parents can retain hundreds of dollars in their pockets. Raising a baby isn’t as expensive as you may think. It’s all about making savvy lifestyle choices. The last advice we can give you is stick to your budget and enjoy your new-found parenthood! Your babies will grow up faster than you think!

 


About MoneyTree

Founded in 2009, MoneyTree was built with the vision that Financial Literacy, like Mathematics, Science and Arts, would become one of the core learning modules for mainstream education.

As a pioneer of financial literacy education for kids and Asia’s leading financial education provider, MoneyTree has made financial literacy accessible and fun. We offer programmes that cater to kids from 6 years to 17 years, equipping them with the knowledge, habitude and lifeskills they need to become financially savvy adults.

Headquartered in Singapore, we are present in numerous Asian countries and are continuously expanding our network across Asia Pacific. Our programs are recognized by leading global academic institutions specialising in the area of financial literacy and meet their certification requirements.

Find out more about us on www.moneytree.asia or get in touch with us at headquarter@moneytree.asia or +65 6589 8936.

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The Pros and Cons of Giving Your Child A Credit Card

In the modern world, a credit card is like a smartphone. People can’t live without their credit cards and they believe their children need them as well. Is it true? Does your child really need the card? Statistics show that today 8 to 12 years old children already have at least one credit card. On the one hand, it may seem to be a good idea to start teaching your child how to use credit cards early. On the other hand, this can wreck your family budget. Weigh the following pros and cons before giving your child a credit card.

The Pros of Giving Your Child a Credit Card

  1. It’s an excellent financial teaching tool

You might think that there’s nothing complicated with using credit cards. All you need to do is just swipe it and the purchase is done. This is not the case with your child. You can use a credit card as a powerful money teaching tool. If you fail to explain to your kid how to use a credit card correctly, they will keep swiping until you receive a huge debt bill to pay.

You should talk to your child about the interest attached to each purchase made with their credit card and the minimum balance required for monthly payment. Plus, some credit cards have a saving option. It’s when you put a certain amount on your credit card and receive the monthly or yearly interest.

  1. Avoid cash worries

You don’t have to worry about giving your child pocket money every morning. Your child won’t lose cash and no one will steal it from them. When a credit card is lost or stolen, you can easily block it to avoid losing your money. Plus, you will be sure that your child has money if they urgently need it. No cash, no worries.

  1. Build a good credit score

It’s never too early to start establishing your child’s credit score. If your child uses their credit card regularly and you pay the credit card bills on time, you’re helping your little one build a good credit history. Having a good credit score is crucial to thrive and survive in the grown-up world.

  1. Earn sweet rewards

Note: You should keep this a secret to not tempt your child to spend more in order to earn more points.

Many credit cards offer rewards for every purchase. When using a credit card wisely, over time, your child may be able to earn a number of different rewards like discounts on grocery, meals or gadgets as well as a free plane or train ticket. That’s a perk worth having.

 

The Cons of Giving Your Child a Credit Card

  1. Ruin a credit score

Just like your child can establish a good credit score, they can also destroy it. Late payments and drained balance will not only lead to a bad credit, but will also get your family into a crazy debt-filled world. There are many examples of families who spent 2 to 3 years just paying off their children’s credit card debts.

  1. They may build wrong views on money

Your child may see you use a credit card to buy everything you need and they may think that a credit card is a wonderful tool to get easy money. Swipe after swipe, and they will think that a credit card is a life saver and tons of fun. They will more likely end up living a debt-filled life after draining your bank account.

  1. They will learn to live beyond their means

Credit cards open many closed doors to us. We compare our lives to others’ and dream of living a better life. Minimum payment is what allures us to buy the things we can’t afford because we mistakenly believe we can pay off any debt later. Also. how about the fees?

Children are more prone to comparison thanks to social media where wealthier children share their luxury lifestyle photos. Giving them a credit card is like telling them, “You can live such a lifestyle as well.” No matter how much you teach them to spend smartly, unfortunately, the Internet tells them otherwise.

  1. They may become addicted to it

Shopaholics are madly addictive to credit cards and they have tons of them. You can’t be sure that your child won’t become addicted to their credit card as well. When they grow up, they might want to open new credit cards to purchase the things they can’t afford. “Easy” money is a dangerous thing.

If you notice that your child tends to spend too much pocket money, don’t give them a credit card. You don’t want them to dig a debt hole for themselves that may take a lifetime to get out of, right?

  1. Others may take advantage of your child’s card

The days where older children grabbed money from the younger ones haven’t gone. Nowadays, teens often make younger school children withdraw cash from their credit cards for them. Or, they just trick them into revealing the PIN to a card and then steal it. School scammers never take advantage of children who carry a tiny amount of daily cash, so it’s better to be safe than sorry.

  1. They are more likely to make impulse purchases

Adults are guilty of impulse buys, children more so. One impulse purchase often leads to a second, third, fourth, and so on. This transition into a habit is hard to ditch. Prevent your kid from adopting this habit by not giving them a credit card at least until 18.

Giving your child a credit card, especially at a very young age, is just asking for big trouble. That piece of plastic can instantly destroy your family budget, albeit there are still a few pros. It’s up to you to decide whether to get a card for your kid, but why not let them be a child for a while longer instead of dumping adult responsibilities on them.

 


About MoneyTree

Founded in 2009, MoneyTree was built with the vision that Financial Literacy, like Mathematics, Science and Arts, would become one of the core learning modules for mainstream education.

As a pioneer of financial literacy education for kids and Asia’s leading financial education provider, MoneyTree has made financial literacy accessible and fun. We offer programmes that cater to kids from 6 years to 17 years, equipping them with the knowledge, habitude and lifeskills they need to become financially savvy adults.

Headquartered in Singapore, we are present in numerous Asian countries and are continuously expanding our network across Asia Pacific. Our programs are recognized by leading global academic institutions specialising in the area of financial literacy and meet their certification requirements.

Find out more about us on www.moneytree.asia or get in touch with us at headquarter@moneytree.asia or +65 6589 8936.

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10 Most Important Money Lessons Every Teen Should Learn

Do you have a teen who can’t tell the difference between a debit and credit card or who does not know what is risk and return? Although learning basic money lessons may not be a priority for your teen right now, you should try and teach them financial management skills. You want them to grow up to be independent, successful, and debt-free. So here are a few tips to try:

  1. Start with the key terms

Even adults sometimes have trouble grasping key terms and concepts of personal finance. You may believe you don’t need to know them since you’re not an economist. But nothing could be farther from the truth. Not just you but even your teen should know and understand the basic meaning of some everyday financial terms. Terms such as debit, credit, annual percentage rate (APR), debts, payday loans, savings account, risk and returns are crucially important. They may sound complicated or overwhelming at first, but once you know how they apply to your personal money matters, you will eventually realise the importance of being familiar with them.

  1. Money must be earned, not taken

Nowadays parents work hard to provide their kids with the best of things available today. Need a new smartphone? Here you are. Need extra pocket money? Here you go. Want to buy a new pair of jeans? Okay, let’s go shopping. Overindulgence is a wrong approach that teaches your teen that money can be easily had. Doling out cash to your teen whenever they need it is ruining their future.

If your teen needs extra pocket money, encourage them to find a part-time job or at least delegate a part of the household chores to them. You can even agree on a monthly paycheck for their regular work. From lawn mowing to house cleaning, your teen will learn that money is earned with hard work, skill and time.

  1. The importance of having good credit

Whether your teen already has a credit card or they own one in the future, they should understand the importance of having a good credit score today. Lots of teens with credit cards cause trouble to their parents because they have no idea how to use them correctly. Explain to your teen that having a good credit score ensures:

  • getting a mortgage on a house;
  • renting a home – depending on where you live, many renters can request your credit history to make sure you’re able to pay the rent;
  • purchasing a car – a poor credit score equals high interest rates and a bigger down payment on a car. Plus, all insurance companies take your credit score into consideration when calculating your payments.
  • getting lower interest rates;
  • starting a business.
  1. Budgeting is essential

Give your teen weekly or monthly allowance and ask them to write a budget plan on how they are going to spend it. Then, ask them to record the amount of money they spend daily. You can even encourage them to list each item they spend their cash on so that they know where exactly their allowance is going, no matter how small it is. At the end of the week/month, sit together and analyze the initial budget plan and the actual spending during the week/month. This is a great way to teach your teen how to budget correctly and how to stick to one. Make sure you don’t give any extra pocket money, unless it’s really needed.

  1. Saving is rewarding

Does your teen want a new smartphone? Don’t run into debts to satisfy their desire. Let them know that they already have their own budget so if they want something they must save for it. This won’t be easy, so stay resilient and don’t give in.

Eventually, they will start saving and once they purchase that smartphone, they will realize that saving is rewarding. This will give your teen the power to choose between blowing all their money on entertainment and impulse purchases or spending more carefully and saving for the more important things.

  1. Vintage stuff can be great too

Provide your teen with all the possible ways to reduce their expenses so that they can start saving more. New clothes are money draining. Unlike younger kids, you can’t dress your teen the way you want or can afford. But show them that thrift shopping is fun. Not only is it one of the best frugal buying habits to acquire, but it may also give your teen a larger choice. It’s not about clothes only. They can also buy recycled books, accessories, and jewelry. Old is indeed gold!

  1. An emergency can happen anytime, anywhere

Teens don’t usually experience drastic emergencies, but teaching your teen how to plan for and survive them is critical. Broken glasses? Ripped sweater? Cracked phone? Stolen watch? Lost wallet? Don’t allow your teen to rely on you in case of an emergency. Let them know that they should budget for it in advance.

They should also save a tiny amount of their allowance on good emergencies, such us an unexpected school trip, birthdays, holidays, etc. Your teen may feel overwhelmed at first. After all, there are so many things they have to save for, but explain to them that starting with something as little as $10 is enough.

  1. Paying the bills

Whether it’s car insurance, electricity, or mobile phone bill, assign one bill to your teenager and make sure they pay it on time. Send them a message or an email at least 3 days before the due date. Let them know that if they pay it late, they will also have to pay the additional late fee from their pocket. Since your teen already has a small budget and so many things to save for, they are less likely to default or delay. This will also teach them the importance of discipline.

  1. The dangers of a credit card

Your teen should know about the burden called credit card debt. It’s not free money and the interests are dangerously high. If you had trouble paying off your credit card debts in the past or you are struggling with them now, involve your teen in the process. They will see how debts can adversely affect their life.

  1. The concept of compound interest

It seems like it’s too early for your teen to think about opening a savings account and learning the concept of compound interest. However, it’s never too early to experience the magic of compounding. Explain the concept of compounding and how a tiny bit saved today could add up to hundreds if not thousands of dollars in the bank later.

Your teen is sure becoming more independent, but still needs plenty of advice from you. With more money to spend and increasing opportunities to spend it, your teen can easily get into financial trouble. So before money burns a hole in your child’s pocket, teach him or her a few financial lessons. With your help, your teen will soon develop the discipline and skills he or she needs to successfully manage money in the real world.

 


About MoneyTree

Founded in 2009, MoneyTree was built with the vision that Financial Literacy, like Mathematics, Science and Arts, would become one of the core learning modules for mainstream education.

As a pioneer of financial literacy education for kids and Asia’s leading financial education provider, MoneyTree has made financial literacy accessible and fun. We offer programmes that cater to kids from 6 years to 17 years, equipping them with the knowledge, habitude and lifeskills they need to become financially savvy adults.

Headquartered in Singapore, we are present in numerous Asian countries and are continuously expanding our network across Asia Pacific. Our programs are recognized by leading global academic institutions specialising in the area of financial literacy and meet their certification requirements.

Find out more about us on www.moneytree.asia or get in touch with us at headquarter@moneytree.asia or +65 6589 8936.

Shannon. Kobayashi No Comments

13 EASY WAYS CHILDREN CAN MAKE MONEY WHILE IN HIGH SCHOOL

Being protective about your children is natural. But are you protecting them too much? Do you judge parents who encourage their high school children to work? Even if you and your spouse earn good money, allowing your children to work while going to high school full time is a useful life experience for them. With so many job opportunities available online these days, your children will find something to their liking. Here are some ideas to consider:

  1. Tutoring younger kids

There’s definitely at least one subject that your children may be strong in. Why not take advantage of their knowledge and encourage them to share it with other kids? Today, many parents on a budget look for high school or college students to tutor their kids.

There are also some tutoring companies who accept high school students who excel at certain subjects. They pay hourly, depending on the subject. Math and foreign languages are usually the priciest, albeit any subject will help your children make great money for a little amount of work.

  1. Offering services online

Websites like Fiverr are an excellent way for high school students worldwide to earn extra cash while doing what they are passionate about. Writing, commenting, proofreading, programming, making videos and presentations are just a few options to consider. The gigs start at $5, but the price can increase over time, depending on how smart your children are.

  1. Selling DIY stuff

If your children are good at drawing, painting, knitting, origami, or sewing, help them put their talent to good use. Whether they make cute DIY fashion items like earrings and bracelets, DIY decorations, or homemade soaps and candles, selling it can become a source of steady monthly income. They can sell their crafts online or organize a yard sale once in a while.

  1. Selling eBooks

If your children have a special skill for writing and are keen on writing fiction, comics, and non-fiction stories, encourage them to write short e-books and sell them online. Amazon is a popular place for eBooks. There are many people who make a living selling eBooks, so why not give it a try?

  1. Blogging

If eBook writing doesn’t sound exciting, blogging is perfect for high school students who enjoy writing. You don’t need to spend money on your child’s blog, you can start one for free. Sure, if you want to make it look more professional, you will need to invest in it. But for starters, get your high school child who loves writing involved in simple blogging.

Blogging isn’t a quick way to earn a lot of money, but your child can benefit from advertising or selling their crafts through their blogs. Once the blog attracts more readers, your child will start making a decent amount of money that could help them cover some college expenses.

  1. Selling photos

Children like to take pictures so if yours are great photographers, help them sell their photos online. There are many stock photo websites like Shutterstock or Istockphoto that are always on the lookout for new contributors. Each time someone buys a photo, you get paid.

  1.  Mystery shopping

Many companies hire high school students as mystery shoppers to secretly test the customer service standards of their stores and whether they follow all the necessary company guidelines. If your children have time and the desire and are willing to travel around town, mystery shopping could bring great side money.

  1. Gardening

From planting flowers and trees to mowing lawns, gardening is a lot of fun, especially for your high school children. Allow them to offer their gardening services to neighbours, relatives, etc. It seems like a hard job but in reality, it’s not. It’s a healthy way to make extra money. Remember, gardening boasts plenty of health benefits too.

  1. Housesitting

It’s not cleaning someone’s house once a week. It’s staying overnight or for a certain period of time in someone’s house, while the hosts go for a vacation or are out of town. It may also involve walking a dog, shopping, car washing and locking up the doors and garages. Depending on the season, it can also include mowing grass, cleaning up fall leaves, and shoveling snow. However, this job is for highly responsible high school students.  If you are not sure about yours, it’s best to skip this idea.

  1. Repairing gadgets

Are your children tech savvy? They can make extra cash by repairing other people’s gadgets. There are many people who need help with their new gadgets, such as smartphones, tablets, laptops, and TVs. We don’t usually take money for this job, but why not? The service charges are rather high at the professional repair stores. Your kids could do it for much lesser and provide this service at the doorstep.

  1. Event promotion

Extrovert children can make good cash over a single weekend by promoting someone else’s events. The main job requirement is to be outgoing and superbly active. It doesn’t require a long-term commitment, so when your children are busy with school, they can simply take a break. Look for event promotion vacancies on job websites and in your local classifieds. From club events to concerts to big festivals, the possibilities are endless.

  1. Retail jobs

If your high school child is looking for a part-time job, a mall or retail job is a wonderful option for them. Not only is this job easy, but it will provide your child with tons of special offers, including merchandise discounts. But they will only make minimum salary, while also dealing with unhappy customers and working on weekends. Do weigh the pros and cons and consider this only if your child can handle it well.

  1. Transcribing

This job requires good listening skills, excellent grammar, and speed. There are many websites that look for students who can transcribe audio to text. The payment isn’t too high, but will be enough for your children’s wallets.

Your high school child does not have to wait until he or she gets a diploma to earn their first paycheck. Let them get a job while they are studying to gain some experience and improve your family budget. But do make sure that it does not affect their studies and don’t forget to teach them to save and spend their money smartly.

 


About MoneyTree

Founded in 2009, MoneyTree was built with the vision that Financial Literacy, like Mathematics, Science and Arts, would become one of the core learning modules for mainstream education.

As a pioneer of financial literacy education for kids and Asia’s leading financial education provider, MoneyTree has made financial literacy accessible and fun. We offer programmes that cater to kids from 6 years to 17 years, equipping them with the knowledge, habitude and lifeskills they need to become financially savvy adults.

Headquartered in Singapore, we are present in numerous Asian countries and are continuously expanding our network across Asia Pacific. Our programs are recognized by leading global academic institutions specialising in the area of financial literacy and meet their certification requirements.

Find out more about us on www.moneytree.asia or get in touch with us at headquarter@moneytree.asia or +65 6589 8936.

Shannon. Kobayashi No Comments

9 SURVIVAL TIPS FOR PARENTS WHO ARE BROKE

Being a broke parent can seem like it’s the end of the world. Both single parent and two-parent families face financial hurdles these days. Some of them live beyond their means and think there’s no way to improve the situation. Worse, they get used to such a lifestyle and do nothing to improve it.

Whether you have huge debts or have lost your job, being broke isn’t the end of the world, even if you have kids. Here are some tried and tested tips to help you out.

  1. Keep your miscellaneous expenses in check

Do you know exactly where your money is going? While you can quickly name some big expenses, you are more likely to forget about a cup of java you bought yesterday or a magazine you bought last week. When you’re broke, you can’t afford to splurge on the ‘miscellaneous’ unplanned expenses. Cook at home, brew your own coffee, read news online, and think twice before buying anything trifle. It may seem cheap, but it can still drain a part of your already challenging family budget.

  1. Get creative in the kitchen

Speaking of cooking at home, you don’t need to buy tons of food items. Make necessary calculations to figure out how much food your family really needs and then buy accordingly. Shop locally and be on the lookout for food deals. Remember, small grocery stores usually have lower prices, so skip the supermarkets whenever possible. Also, consider buying in bulk and use coupons.

Don’t waste food. Food takes a large part of your budget, so it’s better to get creative with your leftovers. There are thousands of delicious recipes available online for leftover food. Do a quick research to see what will work for you.

  1. Reduce your housing costs

You don’t need to necessarily sell your house if you have your own house. Why not rent out one of your rooms? You may not like this idea at first, but it is a great way to make some extra cash. If your housing costs are the biggest part of your family budget, cutting them will help you survive and even save for the future.

Reducing your utility bills, telephone and cable bills, repair bills, etc. can make a world of a difference too.

  1. Review your transportation costs

Your job is your major income source, but getting to it can sometimes be a costly affair. Walking, cycling and scooter commuting are excellent alternatives to trains, buses, and cars. Plus, they’re almost cost-free.

If you can work from home, talk to your boss and let them know about your financial issues. Nowadays many parents work from home to reduce transportation costs and take care of kids at the same time.

  1. Generate a detailed budget

Now that you reviewed your food, housing, and transportation costs, it’s time to create a very strict budget that will help your family survive the hardest financial times. Ask each family member, including kids over 5 years old, to write a detailed list of their spending. Compare the lists and cross out the things that aren’t important.

Based on those lists, generate a detailed budget of how much each family member can spend weekly/monthly. Make sure you include the amount of money you need to pay bills, put in a savings account, and pay off your debts. Be strict about your new budget and toss out those credit cards.

  1. Join free loyalty reward programs

Today, many stores offer free loyalty reward programs to attract more loyal clients. Look for the grocery store or small supermarket that provides points for every purchase. Sure, comparing prices is still crucial, but collecting points will help you save on your future purchases. Join as many loyalty reward programs as possible and see how they can help you improve your family budget.

  1. Go thrift shopping

Depending on how big your family is, clothes and shoes aren’t cheap these days. When parents are broke, buying new clothes and shoes is practically impossible for them. Why not go thrift shopping? You’d be astonished at how many almost-new and trendy clothes you will find. Since children tend to outgrow their clothes fast, there is no sense in spending tons of money on brand new clothes that they’ll outgrow in a few months. You can also find many clothes for you and your spouse. Garage/yard sales are a great option too.

  1. Switch to a cash back credit card

If you can’t survive without a credit card, consider switching to a cash back credit card that offers 3% to 10% cash back on grocery store purchases, gas purchases, and more. You should be using your cash back credit card carefully, though. Avoid splurging and make sure you still stick to your planned budget. Make your credit card payments on time to avoid late charges. It’d be best if your family uses one cash back credit card only for buying food. This way, you will keep the temptations away.

  1. Monitor your medical costs

It’s difficult to shy away from your medical costs. In addition to putting aside some cash for medical expenses, find out about health insurance and a health savings account. There are special health insurance schemes for kids. If your children are prone to diseases, such schemes will be a life and budget saver.

 

Although there are many other survival tips for parents who are broke, these will not only help you overcome your financial problems, but will also teach you and your family important money lessons. Follow these tips even after get your finances back on track.

Finally, the last crucial advice we can give you is don’t give up. Being strapped isn’t the end of the world, and with some planning and discipline, you can go from being broke to comfortable in no time.

 


About MoneyTree

Founded in 2009, MoneyTree was built with the vision that Financial Literacy, like Mathematics, Science and Arts, would become one of the core learning modules for mainstream education.

As a pioneer of financial literacy education for kids and Asia’s leading financial education provider, MoneyTree has made financial literacy accessible and fun. We offer programmes that cater to kids from 6 years to 17 years, equipping them with the knowledge, habitude and lifeskills they need to become financially savvy adults.

Headquartered in Singapore, we are present in numerous Asian countries and are continuously expanding our network across Asia Pacific. Our programs are recognized by leading global academic institutions specialising in the area of financial literacy and meet their certification requirements.

Find out more about us on www.moneytree.asia or get in touch with us at headquarter@moneytree.asia or +65 6589 8936.

Shannon. Kobayashi No Comments

How to Give a Financial Boost to Your Family Budget

Most people’s budget revolves around managing ever-increasing costs and expenses. Are you feeling stuck in your current financial situation? Whether it’s a mortgage, credit card debt, or poor money management that’s weighing you down, you can give a quick financial boost to your entire family budget by following some simple tips. For ways to find some extra money for a family trip, vacation, entertainment, and more, read on.

  1. Keep flash sales out of sight

Ditch the flash sales, flyers, daily deal emails, catalogs, and other newsletters you subscribed to when you bought something online. You may think “I will just delete it later,” but end up buying things you don’t need on the pretext of a ‘good deal’. Get rid of the habit of subscribing to special offers and make sure your family members do the same. This will prevent impulse buying and save you money.

  1. Reduce fees

Nowadays, it seems we work only for paying a plethora of fees. They are everywhere – from credit cards and ATM withdrawals to payment of bills and other services. No matter how busy you are, take some time out to figure out ways to reduce the fees you pay. Visit your bank to learn about your credit and/or debit card fees, reconsider the way you pay bills, and review the services you use monthly. It’s hard to eliminate all fees, but try to at least diminish them.

  1. Start recycling

There’s a wrong belief that only poor families need to collect used papers, cans, and bottles. Everyone should do it and it is absolutely nothing to feel ashamed of. Not only will you reduce waste and save the planet, but you will also earn some extra cash. Now think how much you can make each month by simply recycling. Create a separate jar for this purpose and put all the money you get into it. Saving for that much needed vacation is easier now.

  1. Reconsider your gifting habit

In a money-driven world, DIY and cheap gifts have lost their meaning. But it doesn’t mean that you should sacrifice your budget in order to buy an expensive sweater for your best friend or an expensive toy for your niece. Overly expensive gifts can have the same fate as cheap ones. There’s no guarantee that your friend or niece will love that gift more.

Gifting is a huge money drainer during the holiday season as well. It can hurt the family budget in the long run. Rather than struggling to restore your finances after the holidays, try to limit your gifting budget to the minimum. DIY is a better option.

  1. Track your small purchases

A tiny leak can sink the biggest ship. If you have a tendency to track only the large purchases you make, start tracking the tiniest ones as well. This is where you can spend unwisely. At the end of the week, you might be surprised at how much you spend on tissues, coffee, daily newspaper, snacks, and bars. Have breakfast at home, carry your own snacks, and switch to a local newspaper subscription, if possible. This might put hundreds of dollars into your savings account over a period of time.

Teach your children to track their small expenses as well. Ask them to record every single thing they buy. Explain to them why you need it. Make sure you pack their lunches so that they spend less money on unhealthy treats that cost pretty money.

  1. Convert that hobby into some money

You don’t have to necessarily find a second job to make extra cash. There are many easy ways to give a financial boost to your family budget by doing what you love and turning a special skill or hobby into a money-making activity. Garage sales, selling baked goods or crafts, blogging, tutoring, and babysitting are just a few ways to pocket hundreds or even thousands of dollars, without slogging it out at something you don’t like.

  1. Cook at home

It’s no secret that cooking at home instead of eating out saves us money. Making 3 meals a day, 7 days a week, though sounds time-consuming, right? We suggest you give it a try this week and count the difference in the end. Cooking doesn’t take that much time and you can make your meals together. This will save you hundreds of dollars. Plus, you will feel much healthier. Consider eating out as a special occasion, not a part of your daily routine.

  1. Choose quality over quantity

Quality costs money, right? But it can serve you in the long run. The next time you go shopping, aim to balance quality and price as much as you can. It may affect your monthly family budget in the short run, but it will help you save in the long run. This can apply to food too. The more home grown and organic food you consume, the healthier your family is. Taking care of yourself and your family will save you cash on health-care expenses in the future.

  1. Enjoy activities that are cost free and priceless

The best things in life are free. If entertainment drains your family budget, it’s time to come up with activities that are totally cost free. Backyard camping, a picnic in the park, board games, painting, cycling are just a few of them. Allow your kids to create a list of budget-friendly weekend activities and you’ll be astonished at what they can come up with.

  1. Cut out cable

You read that right. You can watch your favorite shows and movies online. Better yet, spend more time with your children than with your TV. Modern day kids are so addicted to television and the Internet that they spend their entire time in front of screens. Instead, encourage them to spend more time together enjoying other activities while saving money on cable bills.

 

With a host of ways to boost your family budget, there’s always room for financial improvement. The tips mentioned above will help your family save money for your financial goals like traveling, paying off debt, or saving for retirement.  Find out which work best for your family, and slowly start incorporating them into your daily life.

 


About MoneyTree

Founded in 2009, MoneyTree was built with the vision that Financial Literacy, like Mathematics, Science and Arts, would become one of the core learning modules for mainstream education.

As a pioneer of financial literacy education for kids and Asia’s leading financial education provider, MoneyTree has made financial literacy accessible and fun. We offer programmes that cater to kids from 6 years to 17 years, equipping them with the knowledge, habitude and lifeskills they need to become financially savvy adults.

Headquartered in Singapore, we are present in numerous Asian countries and are continuously expanding our network across Asia Pacific. Our programs are recognized by leading global academic institutions specialising in the area of financial literacy and meet their certification requirements.

Find out more about us on www.moneytree.asia or get in touch with us at headquarter@moneytree.asia or +65 6589 8936.

Shannon. Kobayashi No Comments

How a Single Mom Can Teach Her Children the Value of a Dollar

Being financially literate is essential in today’s money driven society. While most parents struggle with their children’s spending habits, studies show that children raised by single moms are more financially savvy than those raised by two-parent families. Of course, there are exceptions. It all depends on what money lessons single mothers teach their children. If you are a single mom who just cannot get your child to appreciate the value of a dollar, here are a few tips to try:

  1. Stop feeling sorry for them

Just because you are raising your children alone doesn’t mean you should accept their tantrums.  Whether or not your children get monetary assistance from their father, they should know the value of money. They should see you working hard, trying to pay bills, buying the essentials and providing for their education. Learn to say no. It can be hard and overwhelming, but don’t give in.

Teach your children to keep their belongings such as clothes, shoes, books and phones in good condition so that you don’t have to spend money for buying them repeatedly. The sooner you get rid of the habit of pleasing your kids all the time and giving in to their unreasonable demands, the easier and faster it will be to start teaching them how to be financially savvy.

  1. Use credit cards sparingly

Avoid getting into the credit card trap and certainly do not get your children to use credit cards. Nowadays many youngsters have credit cards and your children may be tempted to get one under peer pressure. Providing your kids with credit cards not only increases your risk of getting into debts, but it also encourages bad money habits. Use cash as much as possible. Count money instead of swiping your credit card. Look out for ‘cash only’ deals at stores. Save together and explain to your kids that it’s impossible to buy everything at once. Remember, save early and save often.

  1. Show them how hard you work

As a single mom, you have to work hard to meet ends. Many single moms commit the mistake of not showing their kids how hard they work and what financial issues they have. They fear that doing so will make the world seem too difficult and harsh for their children too soon and weaken their morale. However, the earlier your children learn that earning money is hard and saving it is a must, the better they will understand its value. Of course, you should wait until you feel your child is old enough to share your financial status with them. But do not delay it until it is too late.

  1. Stop tying allowance to household chores

There is nothing wrong with giving your children some money occasionally for cleaning their room or the kitchen.  But making it a habit is destructive. It is important that kids realise the difference between shared household responsibilities and jobs that earn them money. Surveys state that 80 percent of parents pay allowance for chores. An allowance is a clever way to teach your children how to save and spend money wisely. But it is not the best way to involve them in doing household chores. They should want to do them in order to help you and as part of their duty. Teach your children to be contributing members of your family.

  1. Teach your children to manage an allowance

Speaking of allowance, it is critical to teach your children how to manage the money you give them regularly. Even if it’s only a dollar, they should know how to manage it. Depending on how much you earn, giving a dollar per week for every year of your child’s age is okay. Starting from the age of seven years, give your kids a small amount like a dollar for going the extra mile – cleaning a bathroom or a backyard, cleaning a pet’s cage, recycling, sweeping the porch, or washing your car.

Give them 3 mason jars (or piggy banks) and label each with “Needs,” “Wants,” and “Emergency”. Well, a 4-year-old child may not understand why she/he needs to save for an emergency, but he/she will grow up with this habit in mind. They’ll learn to save money regardless of how much they earn.

  1. Shed away the guilt

Single moms often feel guilty for not being able to buy stuff for their children. They are prepared to run into debts to make sure their children have everything. This is a wrong attitude. Draw the line at how much you can comfortably afford, without guilt and regret.

Expensive things are sometimes worth their price tags, but this may not be the case for single moms who are on a very tight budget. There’s no need to buy branded jeans when you can buy a cheaper unbranded but good quality pair. The same goes for toys, gadgets, etc. Teach your children to never compare themselves to others.

  1. Talk about needs, wants and goals

As a single mom on a tight budget, you know the difference between wants and needs more than anyone else. You value each dollar you earn and you often suppress your desires. You set smart financial goals because you can’t allow yourself to waste money on things that don’t matter. If this relates to you, you must pass on your beliefs to your children.

People, especially kids, tend to buy what they want, not what they need. This habit drains a family budget and can even cause huge debts. Don’t let your children expect that you can make every dream of theirs come true. Discuss their wants, needs and financial goals with them regularly. Teach them how to prioritise and budget their expenses. Showing them how to monitor their goals and re-evaluate them is equally important.

  1. Manage your family budget together

Your children should see where your money comes and goes. Pay the bills together, go grocery shopping together, and create a weekly/monthly budget together. This may seem like an adult task. However, this way, you will show your kids that you don’t have money for that latest version of mobile phone or branded clothes and help them set realistic goals. Sometimes, it’s the most effective way to teach your little ones to appreciate the value of money.

Single moms work hard to ensure their children’s prosperity. But sometimes they try too hard. The result is a pampered child who doesn’t know the value of a dollar. You love your kids unconditionally, but keep in mind that love isn’t about money. If your children are obsessed with material things, it is time to take control of their present and teach them the value of money, so that they can always be in control of their financial future.

 


About MoneyTree

Founded in 2009, MoneyTree was built with the vision that Financial Literacy, like Mathematics, Science and Arts, would become one of the core learning modules for mainstream education.

As a pioneer of financial literacy education for kids and Asia’s leading financial education provider, MoneyTree has made financial literacy accessible and fun. We offer programmes that cater to kids from 6 years to 17 years, equipping them with the knowledge, habitude and lifeskills they need to become financially savvy adults.

Headquartered in Singapore, we are present in numerous Asian countries and are continuously expanding our network across Asia Pacific. Our programs are recognized by leading global academic institutions specialising in the area of financial literacy and meet their certification requirements.

Find out more about us on www.moneytree.asia or get in touch with us at headquarter@moneytree.asia or +65 6589 8936.

Shannon. Kobayashi No Comments

10 Ways Your Kids Could Help You Earn Extra Cash

Parents try to keep their children away from work until they finish their studies, and understandably so.  However, there are still some who believe kids should start working as early as possible. You don’t have to make your little ones work hard to increase your family income. They can help you earn extra cash while having fun and excitement. Following are some easy and fun jobs that kids above 5 could do.

  1. Selling Baked Goods and Healthy Drinks

The most popular job that children of all ages love is selling cute homemade cupcakes or refreshing lemonade with a mint twist. Infact, they don’t even consider it work! Unless your children are introverts, setting up a stall is an excellent way to give your family budget a good financial boost.

Make some delicious treats, fruit smoothies, and refreshing juices, and allow your little ones to sell these goodies. Of course, you’ll need to monitor the process. If you are going to have a yard sale, this is the perfect opportunity for your children. Let them know that they are responsible for their own money.

  1. Creating and Selling Crafts

Kids are good at DIY and they can spend hours creating various crafts. Why not sell some of them? It can be anything – from holiday decorations to jewelry and crocheted clothing. Handmade gifts are very popular today, so your little ones can help you earn some money. They could sell their crafts online or organise a craft fair weekly or monthly.

  1. Testing Computer Games

Today, it’s almost impossible to come across a child who isn’t passionate about computer games. If your children are crazy about computer games, why not turn their passion into a source of extra income? There are many programmers who are looking for both children and adults to test their computer games or phone apps. Yet children are considered as the most professional reviewers of games.

It doesn’t mean that you should allow your children to play those computer games day and night. Set certain boundaries and talk to the creators first. Be sure to discuss the payment process as well.

  1. Starting a Vlogging Channel

If selling crafts or baked goods doesn’t sound exciting to your kids, they can share their knowledge, skills, and DIY stuff on their own YouTube channel. Of course, they won’t make a fortune right away. But who knows, maybe they’ll manage to do it with time. Firstly, you will make cash on ad revenues generated from your children’s videos. Secondly, maybe someone will want to buy the crafts your children are showcasing. You’ll never know until you try.

  1. Blogging

If your children are over 10 years and they enjoy writing, they might want to start their own blogs. Bloggers make great money, so your kids have all the chances of helping you earn extra cash through blogging. Have ads displayed on their blogs to make more money from them. Although some kind of investment is needed, it can pay off in a short period of time.

  1. Holding a Yard Sale

Yard and garage sales might seem slightly outdated these days, but it’s still a fast and easy way to make extra cash. Plus, you’ll get rid of unwanted and unused stuff, including clothing, toys, jewelry, etc. Yard sales teach your children basic entrepreneurial skills and let them make their own money in the process.

  1. Growing and Selling Berries and Vegetables

Whether you’re growing your own berries and/or veggies or you have space for it, let your children help you with some easy chores. From planting seeds and watering to weeding and gathering, children can do more than you think. Organic fruits and vegetables have a high demand in today’s health conscious world and can be very expensive. Compare the prices at the local grocery stores and markets, set up a stand or a table in your front yard and allow your children (7 years and above) to sell the fresh produce.

Apart from making extra cash, your kids will reap all the fantastic health benefits gardening has to offer. Not to mention that you’ll help them develop good math skills, highlight the importance of eating healthy, and foster strong family bonding.

  1. Recycling

Teach your children to help the environment and the family budget by recycling cans and plastic bottles. Check out the nearest recyclers in your city and find out how much they pay per item or kilogram/pound. Don’t expect to earn a lot as recyclables don’t fetch a lot of money. This is where the word “patience” could be applied. Teach your kids that a little earned and saved each day/week adds up to a lot by the end of the week/month.

They can also recycle old paper by taking it to the nearest paper recycling plant or the recyclers. Minimize pollution, improve your family budget, and teach your children money lessons along the way.

  1. Baby-sitting

Baby-sitting is only for responsible and reliable teens who can watch babies on their own. You’ll need to teach them how to babysit kids at first. If you think your children are too young for this job, suggest them to become a new mom’s helper. This job might require them to walk a dog, water the plants, feed a pet, etc. New moms are always on the lookout for a little help.

  1. House-sitting

House-sitting has recently become popular among adults, albeit children over 12 can do this job as well. It typically involves walking a dog, shopping, car washing and locking up the doors and garages. Depending on the season, it can also involve mowing grass, cleaning up fall leaves, and shoveling snow.

If your children are at an age where they want or are ready to make their own cash, it can be challenging to find age-appropriate jobs for them. These are some clever ways to earn extra cash as a family while teaching your kids important money lessons. The most critical thing to remember is that you can’t spend their money unless it is necessary. As a parent, though, you need to show them how to budget correctly and save for the future.

 


About MoneyTree

Founded in 2009, MoneyTree was built with the vision that Financial Literacy, like Mathematics, Science and Arts, would become one of the core learning modules for mainstream education.

As a pioneer of financial literacy education for kids and Asia’s leading financial education provider, MoneyTree has made financial literacy accessible and fun. We offer programmes that cater to kids from 6 years to 17 years, equipping them with the knowledge, habitude and lifeskills they need to become financially savvy adults.

Headquartered in Singapore, we are present in numerous Asian countries and are continuously expanding our network across Asia Pacific. Our programs are recognized by leading global academic institutions specialising in the area of financial literacy and meet their certification requirements.

Find out more about us on www.moneytree.asia or get in touch with us at headquarter@moneytree.asia or +65 6589 8936.

Shannon. Kobayashi No Comments

7 Reasons to Allow Your Kids to Have Secret Savings

Almost every financially independent adult has their own secret savings. But when it comes to secret savings and children, parents are divided on their views whether or not to give their kids a little more control over every dime they save. Regardless of your child’s age, they deserve some “financial freedom” to be able to manage their small personal budget. If you are in doubt, here are some valid reasons to let your kids have secret savings.

  1. Foster an attitude of Money Responsibility

It is hard to make adults save cash these days; with children it can become even more challenging. If your children save money, though, you should be really proud of them. Instead of controlling their savings with an iron hand, teach them and allow them to be responsible with their money. Advise them on what are the kind of things they can and cannot buy with their allowances.

  1. Create an Additional Family Emergency Fund

Perhaps you and your partner already have some cash saved for an emergency. Extra cash, though, will never hurt when rough times come. Simply knowing that your family has an additional emergency fund promotes calm and peace at home. Be careful though! Almost HALF of US parents admit to taking money from their children’s savings – and 51 per cent do not even feel guilty about it. Avoid taking their savings without permission even when an emergency occurs.

Make sure you teach your children the basics of saving money and set a good example for them.

  1. Learn to Reduce Expenses by Secretly Saving Instead

Not only will your children learn how to stay patient and save hard, but secretly saving will also encourage them to reduce their expenses. After all, the secret money must come from somewhere.

The important thing is to help your kids set correct financial goals and decide on where they could spend their secret savings. Maybe they want to buy new clothes, or toys, or school books. Or, maybe they want to contribute to their college expenses in the future. Unless your children set ridiculous goals, don’t forbid them to do it.

If your little ones decide to spend a part of their secret savings on food or entertainment, allow them to do it too, but set limits and rules.

  1. Help Them Become Financially Independent When They Grow Up

Financial independence doesn’t mean being super rich. It essentially means being able to do the things you really love, without having to worry about your next month’s salary or expenses. The earlier your children start saving, the better they start understanding the concept of financial independence. Having savings that they can rely on will open tons of possibilities for them.

Now that they’re still young, they might tend to spend their savings on not-so-important stuff. However, when they grow up with the right money habits, their savings might help them start their own business, take a vacation whenever they want, switch careers, and make serious investments.

  1. Show Them Saving Money is Rewarding

Sure, you already give your children some cash and there’s no need for more. But why not encourage them to leave their secret savings untouched as long as possible? You can do it by giving a little reward each month. Let’s say, it’s like monthly interest. You don’t have to know how much your children have already saved. Just give a few dollars and it will be enough to show them that saving is a lot more rewarding than spending.

Don’t overdo it, though. Give them small amounts of money as reward. Otherwise, they will grow up expecting banks to pay them high interest rates. Depending on the age of your children, talk to them about different types of interest rates and the magic of compounding. Try to teach at every opportunity!

  1. Expose them to the Endless Possibilities of Secret Savings

Let your children know that saving doesn’t apply only to retirement or emergency. It creates a series of endless possibilities. Saving relates to positive goals, such as traveling, art or dance classes, a new car, a larger home, or investing in a unique hobby. Talk to your children about their biggest dreams and focus on at least one dream when teaching them aspects of saving.

If your children are under 7, talking about a house or a car doesn’t sound inspiring to them. Focus on toys and weekend trips. Explain to them that they can use their secret savings to arrange a fun family trip on a weekend or invest in a luxury toy that your family monthly budget can’t allow. This way, they will feel motivated and inspired to contribute to their secret savings rather than a supermarket cash counter.

  1. Childhood is Full of Secrets

Children, especially girls, have secret journals, secret wishes, and secret plans for the future. Their secrets confer an unknown-to-adults kind of power that they adore. Saving is actually considered a thing from an adult world, but when you make it secret, it becomes a part of childhood. Many children perceive the saving process as a game, which can help them in future.

 

There are many parents who think children shouldn’t be allowed secret savings at all. Allowing your kids to have secret savings might just help them to be more financially responsible adults. The most important thing to keep in mind is to never take or borrow from your children’s savings unless it is really needed. If you borrow, make sure you tell them and return that same sum.

Help your little ones save correctly and keep teaching them the most important money lessons. And don’t worry about their secrets, after all, some are worth having!

 


About MoneyTree

Founded in 2009, MoneyTree was built with the vision that Financial Literacy, like Mathematics, Science and Arts, would become one of the core learning modules for mainstream education.

As a pioneer of financial literacy education for kids and Asia’s leading financial education provider, MoneyTree has made financial literacy accessible and fun. We offer programmes that cater to kids from 6 years to 17 years, equipping them with the knowledge, habitude and lifeskills they need to become financially savvy adults.

Headquartered in Singapore, we are present in numerous Asian countries and are continuously expanding our network across Asia Pacific. Our programs are recognized by leading global academic institutions specialising in the area of financial literacy and meet their certification requirements.

Find out more about us on www.moneytree.asia or get in touch with us at headquarter@moneytree.asia or +65 6589 8936.

Shannon. Kobayashi No Comments

Why Parents Should Involve Kids in the Debt Payoff Process

Dealing with a debt, even the smallest one, is not fun. Especially, if you are a parent. Unlike single people, you find it harder to reduce your spending to the minimum. If your family is in debt, though, should you let your children know about it? There are actually many pros and cons of involving kids older than 5 years old in the debt payoff process.

Some experts claim financial problems are an adult thing that can scare children or make them feel confused and helpless. Others believe children should know when their parents are struggling with debts since they learn an essential lesson. Here we list down six reasons why your kids should know about your debts and why you shouldn’t feel ashamed about it.

  1. Empower your children to deal with issues

Whether you are a millionaire or an ordinary employee with an average paycheck, there will be some financial problems. Parents who hide problems, including those related to money, from their children do more harm than good. Such children grow up unable to handle the simplest of issues because they have no idea how to deal with them.

Debt is one of the most common financial issues that your children should learn how to deal with. Letting them be involved in getting out of a family debt is a smart decision. Take time to create a monthly budget with your kids to show them how to find extra cash when you’re on a low budget.

  1. Not all debts are bad

Believe it or not, good debts exist and they do help us improve our lives. Student loans, mortgages, and business start-up costs are among the good debts that your children should know about. A student loan is a smart investment in the future, while a mortgage gives you a roof over your head.

When you run into debts to build a business, there’s a big chance that your business loan will gradually pay itself off. If your family is struggling with a good debt, make sure your children know about it. Show them how to cope with a good debt without financial starvation and chronic stress.

  1. You teach them how to pay off a debt correctly

Let’s be honest: the younger generation is getting used to living a life jam-packed with debts. From student loans, car loans, and mortgages, to credit cards, medical and consumer debts, there are literally hundreds of types of debts people are running into these days. It’s always a good idea to figure out how to pay off your debt correctly and show your children how you do it.

You may think that kids hate budgeting and it’s partially true. With kids younger than 11 years old, you can turn the debt payoff process into a fun yet useful game. If you have teens, be sure to explain to them the details about interests, fees, and other aspects specific to your debt.

  1. Expose them to how a debt can negatively affect day-to-day life

Debts prevent us from doing all the fun stuff such as traveling the world and enjoying our vacations. We often have to forego things we want or even need simply because we can’t afford them. This lesson is particularly useful for children who throw a tantrum every time they want something. Explain to them why you can’t buy that toy. If you have teens, they might blame you for having a debt. However, don’t let their emotions get you into a bigger debt. Stay firm, focus on paying off your debt, and give them an opportunity to either help you or learn a lesson.

  1. You show them how exhausting the debt payoff process is

Apart from learning how a debt can negatively affect day-to-day life, your children will experience how stressful the payoff process is. Debts can lead to a number of serious health issues, including chronic stress, fatigue, insomnia, hypertension, heart disease, and stroke. In rare cases, debt related stress can cause cancer. This sounds terrifying, but it’s true.

Even though younger kids may not understand the hazards, teens will realize that living within their means is the best option. Plus, they might want to help you to get out of your debt trap. Even if they can’t start working, they can reduce their spending and use a major part of their pocket money towards improving their family’s financial situation.

  1. You let them take part in solving a family problem

After all, you are a family. You can’t hide your problems – be they financial or career – from your kids forever. They have to know that life isn’t easy and they have to gradually learn how to handle the most typical life problems together. If you have teens who would like to earn extra cash by babysitting or pet sitting, allow them to do it. Unless their jobs affect their school work or well-being, it’s okay to have children start working early. There’s nothing wrong in accepting a little help from your children. Even if they won’t help, at least allow them to try.

 

Whether or not you should involve your children in your debt payoff process really depends on the following factors: the severity of the situation, your children’s emotional health, and their age. Aside from these factors, telling your kids about a family debt will help them learn a crucial lesson about money and its value. They will learn that the most wonderful things in life are free and material things don’t always bring happiness.

However, if your children are highly sensitive or suffering from disorders, it’s best to keep your debt struggle private. Sensitive kids have an overactive imagination and a higher risk of developing severe phobias.

If you eventually decide to tell your kids about your financial problems, don’t forget to mention that it’s not their fault and you will solve those problems together. Reassure them that everything is going to be fine and keep having fun together!

 


About MoneyTree

Founded in 2009, MoneyTree was built with the vision that Financial Literacy, like Mathematics, Science and Arts, would become one of the core learning modules for mainstream education.

As a pioneer of financial literacy education for kids and Asia’s leading financial education provider, MoneyTree has made financial literacy accessible and fun. We offer programmes that cater to kids from 6 years to 17 years, equipping them with the knowledge, habitude and lifeskills they need to become financially savvy adults.

Headquartered in Singapore, we are present in numerous Asian countries and are continuously expanding our network across Asia Pacific. Our programs are recognized by leading global academic institutions specialising in the area of financial literacy and meet their certification requirements.

Find out more about us on www.moneytree.asia or get in touch with us at headquarter@moneytree.asia or +65 6589 8936.