Our Kids and Money

As with anything, the best way to learn — for people of any age — is through hands-on experience; I believe the best way for kids to learn how to manage their own money is by letting them taking control of it.

This doesn’t necessarily mean giving your child the rights to their university fund before they are ready, or even letting them take money when they want - as this would no doubt start a bad habit that is very likely to lead them into debt. Instead a good idea would be to set up a child account with a bank such as Nationwide or HSBC that gives the child a card to use with their account (a debit card, of course) with a monthly limit on how much they spend. This way they can see their savings grow over time - if they choose to save that is. Pocket money can even be added to this account monthly by standing order straight from your account.

As for schools, It is my personal opinion that ‘citizenship’ and the such should be kept out of schools as it interferes with the teaching of traditional subjects. However an introduction to Economics for children to young to study it may help the country out of the financial grave it is digging in future generations.

Light at the end of the tunnel

It is so easy to get into debt, but not as easy to get out of debt. The first thing you need to do is set a realistic household budget.

List all things you have to spend money on i.e. gas, electric, mortgage, then list all the things you want to spend money on. The goal is to separate between ‘Need’ and ‘Want’ for example you ‘need’ to eat or you ‘want’ that new CD. The idea is to look at your outgoings and see where you can make cut backs, as in setting yourself a shopping budget for food.

Some examples of how to save money on groceries, household bills:
1. Ask your supermarket what time they mark down their products, and purchase these when they are cheaper.
2. Grow your own vegetables and fruit - a lot cheaper than buying.
3. Use price comparison sites to check you are not paying too much for your gas, electric or mortgage.
4. Check with your energy supplier to see if you have an economy setting, do your washing etc in the evening as it is cheaper.
5. Take a shower instead of a bath, it’s cheaper.
6. Do you really need the heating on? Can you just put on another layer of clothing?
7. Hang clothes to dry on a rainy day indoors over the bath or use a clothes airer, it’s cheaper than the tumble dryer or radiators.
8. Use natural products for cleaning its cheaper and better for your health!! i.e. vinegar for cleaning windows.

Overall just think about ways to do things on the cheap, research and you will save money and get out of debt. Think pennies make pounds and pounds make rich men.

Communication will help debt problems

Living under the weight of debt is hard.So first we need to start savings in various ways. Living under the weight of debt when concealing it from your partner is hellish, and that applies whether you are hiding all the debt from them or merely reducing it to a size which will make their consumption of it more palatable.

If you recognise yourself in this, be warned. It can break families and relationships into pieces that may never get picked up again. Face up to the fact that although you may be trying to protect your partner/relationship/family by keeping the severity of the situation away from them, your deception will cause a stress of its own.

The short term relief of denial can very quickly bite you in the behind. This will happen when your situation compounds to the point when there’s no escaping it, because you’re maxed out on credit everywhere you turn and you face homelessness. This level of debt can’t be conveniently swept under the carpet; as the adage goes: “If you continually sweep things under the carpet, eventually you’ll get a crick in your neck from stooping to avoid the ceiling.” There’s also the possibility that your partner will blame you for not informing them of how bad the situation had become, or of not managing the money better.

But this is supposed to be a partnership and it the debt needs to be faced with your eyes wide open. Communication is the key, whether that’s with your partner or the bank, so stop covering it up and look it in the face. It’s the only way to resolve it. There are loads of solutons out there to help. Debt Management, Consolidation Loans, IVA, and hopefully not, but you never know, Bankrupty. The early you deal with it the less drastic the solution.

Make a saving budget

With the food and petrol prices constantly rising in the face of the global financial crisis, cutting unnecessary spending and saving money is of ever increasing importance. By cutting out some luxuries from our lives we can avoid debt and save money.

When shopping, keep a look out for special offers, sometimes you can even pick up top branded products cheaply if they are on offer. Otherwise, try to buy supermarkets own brand products and stay away from brand names. Often, the quality of the product is the same for a cheaper price. Buying things in multipacks can also help to save money in the long run.

Shop around. Try shopping at a different supermarket and see if you’re shopping works out cheaper. This could be especially helpful if this supermarket is closer to home. Look out for petrol vouchers with your shopping and find out which supermarket offers the best loyalty card system.

Create a budget for the week, month or even a year. Sit down and work out all your incomes and expenditures, this way you know how much you have to spend on yourself over a given period. If you have cash left over try and save it. This could be by having one less drink on a night out or not having a weekly takeaway, over the year this will add up to a big saving. Some financial advisers will help you budget free of charge so it’s worth arranging a meeting with one to see what advice they can offer you on saving money.

Around the house this winter, layer up rather than turning the heating up! Heating bills are ever increasing due to rising gas and oil prices so by wearing extra clothing you can save money on your heating bill. The same can be said for your water bill, take showers rather than baths and avoid using the dishwasher where possible. As for electricity, turn off lights when they are not being used and try to avoid leaving electrical appliances on standby.

The cost of petrol has risen massively and even a short journey now costs a substantial amount in petrol costs. Avoid driving when you can, walk or take a bike. Not only will this save you money but it’s great for your fitness! You may also want to find out how to drive more efficiently, i.e how to use less petrol. Guides as to how to do this can be found online.

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Student Loans Are A Must

I see student loans as a simple necessary part of being a student. It is completely acceptable among students to get the biggest loan possible in the knowing that you will just have to pay it back someday in the future. Its no big hassle, as most of us expect to be working in our desired fields on graduation. The rates are favourable and you dont have to pay it back all at once, you can literally pay it back at your leisure when your circumstances warrant being able to pay it back.

I spend my student loans on bits and pieces I need for my course, books, pens, pencils etc. It helps me with my rent and to a certain extent it subsides my rent sometimes and my student lifestyle which may or may not involve drinking on a school night. Student loans are there to give you an easy ride so why not enjoy it while you can.