Author - Lauren Heekes
It might not be the right time to discuss this issue. Nerves are raw and some parents are still experiencing serious financial stress from the repercussions of 2020.
However, after living through 2020, and If you are like me, you want to teach your children about money so that they can create a life of freedom and independence for themselves.
This has become especially evident in terms of the recent pandemic. Parents that were financially prepared managed to get through this period without too many financial issues. These parents had emergency funds in place for this situation.
Generally speaking, it was probably parents that were not provided with the necessary financial tools growing up, that suffered some financial difficulties during this pandemic. Adult children that were not provided with important financial information to make provision for things like savings, emergency funds, investments and retirement.
By learning about money you can pass on this knowledge to your children. This will give your children a fighting chance to become financially savvy and aware. Give them all the tools you can to ensure proper money habits.
All of us have moments in our life when we realise that we have to make a change. Sometimes change is something we choose or it is because of something that happens to us.
Loss of income and the recent pandemic should be reason enough to set us into motion to ensure that we are financially prepared should something similar happen in the future. Make sure that you involve your children in this change. Our You, Your Kids and Money article is all you need to get started. You can grow from there.
Intention
Accept that you are responsible for the financial changes you need to make. Become intentional. Write down goals and speak them into action. Cut back where you can and become disciplined enough to make the changes you need to improve your life as well as your children’s life. Children gravitate toward visual goals. So get inspired by your children and create a story board that will motivate the whole family to make finanicial changes.
Create a Plan
Change becomes possible and sustainable when you plan for the financial changes you need to make and also to do the necessary preparation. This is a powerful tool for keeping our head in the game. Involve your children in the plan and get them excited about ways to save and understand money. Create fun meal plans and take your children with you when you shop. Indicate ways to save on food by comparing qualify, price difference and the importance of eating healthy food.
Support and Encouragement
By involving your entire family in your plan, you not only create a support system but also a way to encourage the change and growth.
Seek out influencers who have the same mindset and have already done the research. People who support you and hold you accountable for achieving the goals that you set for yourself. Your children can visibly see the changes you have made and also the rewards reaped from those changes. Make money exciting for them.
Here are some things you should consider when drafting your plan
Remember that it is not necessary to implement all of these changes at the same time. Make a list of your goals and move down that list until you have achieved all your goals. These goals can take several years to implement.
We specifically like Dave Ramsey’s 7 Baby Step program. While these ideas are based in dollars, the principals are still the same and can be used in any country in the world. We will provide links to this below and also other links that might be of interest to you.
Goals you can start planning for:
1. Draft a will and testament to ensure that assets are properly allocated if something should happen to you.
2. Protect your family and children with a life insurance policy.
3. Budget correctly. Make sure you set aside a few hours each month to discuss finances and living expenses with your spouse. Set financial goals and do your best to stick to those goals. Involve your children in those goals too. Children are resilient and most enjoy fun challenges that come with little rewards when tasks are achieved.
4. Set up a Savings Account that has R15,000.00 In it. This is for small unforeseen expenses.
5. Manage debt. Being irresponsible with debt can put your children’s future at risk. Use the snowball effect to get debt settled as soon as possible.
6. Make sure that you have an emergency fund in place that can support your living expenses for 3-6 months (6 months ideally) for loss of income or large unforeseen expenses. Your children live in a stress-free environment when money is available. Not making provision for an emergency fund will create a stressfull environment. This comes in the form of embarrassment when you cannot pay school fees and basic living expenses. It can also come in the form of loss of security when you cannot afford rent or your home installment and are forced to move .
7. Provide for your retirement so that you are not a financial burden on your children later on in life.
8. Pay off your Home Loan. Once you have your savings in place, debt paid off and an emergency fund you should be in a position to put additional money into your Home Loan each month. Focus on getting your home paid off as soon as possible.
9. Once you have achieved most of your goals you should teach your children about giving. Make donations towards important causes or take them with when volunteering your time to help others.
10. Children who are loved will have a great opportunity to thrive financially in life. Show your children that spending time with them and being patient and supportive of them, is much better than buying them the latest gadget. Gadgets that inevitably isolate them from the family experience. Buying your children’s love is a very poor way of teaching them to become financially independent.
The above goals are achievable if you put your time and energy into each goal and actively seek to make a financial difference for yourself and your family. There is nothing better in the world than being financially independent and it is probably the greatest gift you can bestow on your children.
Here are some links to get You, Your Kids and Money motivated:
Dave Ramsey's 7 Baby Steps will show you how to save for emergencies, pay off all your debt for good, and build wealth. It’s not a fairy tale. It works every single time!
2. Learn How to Budget With EveryDollar. Track your expenses, save more, and reach your goals faster when you budget with Ramsey+. Take control of your money with our world-class content and easy-to-use apps and tools.
There is no quick fix to getting out of debt. Make sure that you partner with a Debt Counsellor that is going to assist you to get out of Debt.
If you would like us to conduct a free financial assessment for you here are contact options:
If you would like us to conduct a free financial assessment for you here are contact options:
1.Complete our online assessment form at http://bit.ly/39miXXx
2. Send us an email to contactme@negociate.co.za
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4. Complete a call back request on our website at http://bit.ly/38Aoyuc
A consultant will contact you to discuss the way forward. Please note that you are not obligated to proceed if you feel that the solution we offer you will not assist you enough financially.
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