Finance – Teaching Kids The Art Of Money Management.

I’m going to talk about money and kids in this article – something that crucial which sooner the better. It’s a priority to make fast and adequate action toward our kids about the art of money management. Before we go through this topic further on, let me share most thing we should know below:

1. Kids should be teach the knowledge of money – better start early.

2. Once kids learn on how the money work – they start or often shows an instinctive conservatism.

3. Seeds planted early bear fruit the same manner.

4. An allowance can be an effective teaching tool.

5. Teenagers and college-age kids have bigger responsibilities.

6. Even investing should be learned early.

 

Creates allowances for kids.

The most effective way to teach kids about money – pay them!!

Most people might argue this method but – the truth always bitter. Allowance is the best way to teach a child to handle financial responsibility. First of all – they have to know and old enough to count money. The key to a successful allowance is structuring it right from the outset.

Make it clear to your children what kinds of expenditures the money is for, and that they are expected to save some of it. Younger children – ages 7 to 10 – shouldn’t be held accountable for items like school lunch money as part of their allowances, but it’s not a bad idea for older kids and has the added benefit of fewer payments changing hands.

“Remember, allowance is supposed to be a teaching tool,” – “Negotiation skills are an important part of that, which they’re going to need for dealing effectively with friends, teachers and, eventually, their bosses.”

So instead of grimacing when your children hit you up for a raise, decide when the time is right and then engage them in fruitful negotiations. How long since the last raise? Will new expenditures be covered? What amount of the raise will be saved long-term for expenditures requiring your approval?

The most vexing decision on allowances is how much – a decision affected by personal values, family income and common sense. Don’t let your children influence the amount by saying what their friends are getting: Any normal child will bring in high figures.

 

Essence of saving and spending.

Your kid doesn’t like to save? Try the carrot – and then the stick.

One way to encourage your children to develop sound money discipline is to make savings a condition of their allowances. So try to account for this when deciding on a weekly or monthly figure.

This, of course, means setting a budget – and deciding what to do when children run afoul of their own guidelines.

One answer is to require them to save their allowances in locked boxes. But since this doesn’t teach restraint and you won’t always be around to oversee savings deposits, there are more instructive ways to make the point.

Remind them of these goals to keep them from straying.

The best way to encourage sound spending habits is to exhibit them. When planning a trip to the grocery or discount store, get your children involved in making a judicious list and sticking to it. This will teach them to avoid the bane of all savers: impulse buying.

 

The time have come – teach them about Credit

With credit-card offers coming as fast as keg party invites, college freshmen need some guidance.

Initially, keep it simple, avoiding frills and extras like overdraft protection; they need to experience the reality of bounced checks to understand record-keeping responsibilities.

Many college freshmen today have credit cards, and if your kid is to be one of them, then this, too, has a learning curve that is best experienced under your tutelage.

Before your kids acquire their credit cards, they’ll need a lesson in how to use plastic responsibly. Point out that this is where most individuals’ finances go seriously awry, and illustrate your point with interest tables that show the damage that 18% annual interest, compounded over the years, can do to their savings potential.

Also, tell them that credit is a privilege, not a right, and that if they abuse it, they will lose their ability to get more.

 

Advance marking – they must know about Investing

After teaching your children the hard lessons, show them the rewards of self-control.

Once your teenagers get a grip on credit, introduce them to the flip side: investing. After all, that’s when they extend the credit and collect the interest.

Since your teens may have too much money collecting no interest in a checking account, the best way to start is with a money-market account on which they can write a few checks.

From there, introduce them to simple, set-term investments like savings bonds and certificates of deposit. Though returns from these will be meager given the current financial downturn, they serve an important lesson and will build their confidence about investing. Then move further with appropriate approach.

p/s: I’ve been teaching all this thing late in my 20, but the effect was great that I’m glad to learn it – going to share with my children one day – and I’ll make it in their early days.Anyway, that it from me for know – Daaaaaaaaaa

People – Who Packs Your Parachutes?

Have we ever thought of people who might pack our ‘parachutes’? Let us learn from this story:

Charles Plumb was a US Navy jet pilot in Vietnam.

After 75 combat missions, his plane was destroyed by a surface-to-air missile. Plumb ejected and parachuted into enemy hands.
He was captured and spent 6 years in a communist Vietnamese prison.

He survived the ordeal and now lectures on lessons learned from that experience!
One day, when Plumb and his wife were sitting in a restaurant, a man at
another table came up and said, “You’re Plumb! You flew jet fighters in
Vietnam from the aircraft carrier Kitty Hawk. You were shot down!”

“How in the world did you know that?” asked Plumb.

“I packed your parachute,” the man replied.
Plumb gasped in surprise and gratitude.

The man pumped his hand and said,
“I guess it worked!”

Plumb assured him,
“It sure did. If your chute hadn’t worked,
I wouldn’t be here today.”

Plumb couldn’t sleep that night, thinking about that man.

Plumb says, “I kept wondering what he had looked like in a Navy uniform:

a white hat; a bib in the back; and bell-bottom trousers.

I wonder how many times I might have seen him and not even said
‘Good morning, how are you?’ or anything because, you see, I was a
fighter pilot and he was just a sailor.”

Plumb thought of the many hours the sailor had spent at a long
wooden table in the bowels of the ship, carefully weaving the
shrouds and folding the silks of each chute, holding in his hands each time
the fate of someone he didn’t know.

Now, Plumb asks his audience,
“Who’s packing your parachute?”

Everyone has someone who provides what they need to make it through the day.
He also points out that he needed many kinds of parachutes when his plane
was shot down over enemy territory-he needed his physical parachute, his
mental parachute, his emotional parachute, and his spiritual parachute.
He called on all these supports before reaching safety.

Sometimes in the daily challenges that life gives us, we miss what is
really important.

We may fail to say hello, please, or thank you, congratulate someone
on something wonderful that has happened to them, give a compliment, or
just do something nice for no reason. As you go through this week, this
month, this year, recognize people who pack your parachutes.

I am sending you this as my way of thanking you for your part in
packing my parachute. And I hope you will send it on to those
who have helped pack yours!

p/s: LOVE EVERYONE Daaaaaaaaaaaa

Health – Stroke 1-2-3 Identifies

I was thinking – What is my topic for today until I bump into – Stroke issue. It always crucial to identify symptom for every illness. Today its all about stroke!!

People recover completely from strokes, but more than 2/3 of survivors will have some type of disability.

If everyone can remember something this simple, we could save some folks. Seriously.. Please read:

STROKE IDENTIFICATION:
Case Study – During a BBQ, a friend stumbled and took a little fall, she assured everyone that she was fine (they offered to call paramedics) and just tripped over a brick because of her new shoes.

They got her cleaned up and got her a new plate of food – while she appeared a bit shaken up, Ingrid went about enjoying herself the rest of the evening. Ingrid’s husband called later telling everyone that his wife had been taken to the hospital – (at 6:00pm, Ingrid passed away.)

She had suffered a stroke at the BBQ. Had they known how to identify the signs of a stroke, perhaps Ingrid would be with us today. Some don’t die. They end up in a helpless, hopeless condition instead.

It only takes a minute to read this…

A neurologist says that if he can get to a stroke victim within 3 hours he can totally reverse the effects of a stroke…totally. He said the trick was getting a stroke recognized, diagnosed, and then getting the patient medically cared for within 3 hours, which is tough.

RECOGNIZING A STROKE
Thank God for the sense to remember the “3” steps, STR . Read and Learn! Sometimes symptoms of a stroke are difficult to identify. Unfortunately, the lack of awareness spells disaster. The stroke victim may suffer severe brain damage when people nearby fail to recognize the symptom of a stroke.

Now doctors say a bystander can recognize a stroke by asking three simple
questions:

S * Ask the individual to SMILE.
T * Ask the person to TALK TO SPEAK A SIMPLE SENTENCE (Coherently) (i.e. . . It is sunny out today)
R * Ask him or her to RAISE BOTH ARMS.

NOTE : Another ‘sign’ of a stroke is this: Ask the person to ‘stick’ out their tongue. If the tongue is ‘crooked’, if it goes to one side or the other that is also an indication of a stroke. If he or she has trouble with ANYONE of these tasks, call for help immediately !! and describe the symptoms to the dispatcher.

Its good to learn about stroke symptom which applicable any time – anywhere.

Honestly said, it will not cost you any lost or harm to learn about all this. You never know who will experience it while you are there. It might be anybody even your love one.

 

Finance – Buying A Home Of Your Dream.

Pricing issue, legislation breach out, lawyer advices, personal affairs and lots of detail should be consider when buying a house (home). When said and done about buying houses, one should make sure that things are done step by step accordingly. Which, firstly go with what we really should know about – buying a house:

1. Don’t buy if you can’t stay put.

If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner – even in a rising market. When prices are falling, it’s an even worse proposition.

2. Start by shoring  up your credit.

Since you most likely will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Aim for a home you can really afford.

The rule of thumb is that you can buy housing that runs about two-and-one-half times your annual salary. But you’ll do better to use one of many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford.

4. If you can’t put down the usual 20 percent, you may still qualify for a loan.

There are a variety of public and private lenders who, if you qualify, offer low-interest mortgages that require a down payment as small as 3 percent of the purchase price.

5. Buy in a district with good schools.

In most areas, this advice applies even if you don’t have school-age children. Reason: When it comes time to sell, you’ll learn that strong school districts are a top priority for many home buyers, thus helping to boost property values.

6. Get professional help.

Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

7. Choose carefully between points and rate.

When picking a mortgage, you usually have the option of paying additional points — a portion of the interest that you pay at closing — in exchange for a lower interest rate. If you stay in the house for a long time — say three to five years or more — it’s usually a better deal to take the points. The lower interest rate will save you more in the long run.

8. Before house hunting, get pre-approved.

Getting pre-approved will you save yourself the grief of looking at houses you can’t afford and put you in a better position to make a serious offer when you do find the right house. Not to be confused with pre-qualification, which is based on a cursory review of your finances, pre-approval from a lender is based on your actual income, debt and credit history.

9. Do your homework before bidding.

Your opening bid should be based on the sales trend of similar homes in the neighborhood. So before making it, consider sales of similar homes in the last three months. If homes have recently sold at 5 percent less than the asking price, you should make a bid that’s about eight to 10 percent lower than what the seller is asking.

10. Hire a home inspector.

Sure, your lender will require a home appraisal anyway. But that’s just the bank’s way of determining whether the house is worth the price you’ve agreed to pay. Separately, you should hire your own home inspector, preferably an engineer with experience in doing home surveys in the area where you are buying. His or her job will be to point out potential problems that could require costly repairs down the road.

 

Do we really ready to own?

Owning a house mean that there no longer in need to pay any monthly rent for the living shelter. Time when we can do what ever we want (within reason). When we leave, we can sell it to recoup the purchase price and – with any luck – earn a profit too.

But don’t kid yourself. Home ownership comes with a slew of disadvantages, responsibilities, and downright headaches.

So before going any further, consider whether your lifestyle and finances make home buying a smart move.

TIP: High costs mean you should be prepared to stay put. Except in a roaring real estate market, it usually doesn’t make sense to buy a home you’ll own for less than three or four years. Reason: the high transaction cost of buying and selling property means you could lose money on the deal. If you do make money, you’ll pay capital gains taxes if you’re in the house less than two years.

When home prices are falling, it just makes the case against buying even stronger. So ask yourself if you can really stay put for that long. Will you need to move because you are transferred by your current employer or a new one? Are you thinking of going back to school?

TIP: It may make more sense to rent On the financial side, one key question is whether it costs more, on average, to rent or own in your area. The rule of thumb is that if you pay 35 percent less in rent than you would for owning – including the monthly mortgage, property taxes, and any homeowner’s fees – then it’s smarter to continue renting.

Only if all those answers still point towards owning should you proceed to the next step – getting the money right.

 

Financial ready within the right path.

For most people, buying a house involves a double financial whammy.

First you have to assemble a pile of cash for the down payment and closing costs. Then you must convince a bank to lend you an even more staggering sum – generally 80 percent or more of the purchase price.

So your first step, even before you start the actual hunt for a property, should be to get your financial house in order.

Start with your credit

A low credit score may hurt your chances for getting the best interest rate, or getting financing at all. So get a copy of your reports and know your credit scores.

Errors are not uncommon. If you find any, you must contact the agencies directly to correct them, which can take two or three months to resolve. If the report is accurate but shows past problems, be prepared to explain them to a loan officer.

Know what you can afford

Next, you need to determine how much house you can afford. You can start with one of the Web’s many calculators. For a more accurate figure, ask to be pre-approved by a lender, who will look at your income, debt and credit to determine the kind of loan that’s in your league.

The size of your down payment will also determine how much you can afford.

Line up cash

If you haven’t already, you’ll need to come up with cash for your down payment and closing costs. Lenders like to see 20 percent of the home’s price as a down payment. If you can put down more than that, the lender may be willing to approve a larger loan. If you have less, you’ll need to find loans that can accommodate you.

 

Picking a team

Don’t buy a home without professional help.

With all the tools and advice available today ranging from books and magazines to online advice like this lesson – it would be possible for you to buy your home almost completely without the aid of real estate professionals.

That’s not necessarily recommended. The housing market, like politics, is basically local, and each state, city, and even neighborhood has a thicket of local laws or customs that you need to understand. For that, it helps to have a team of professionals to guide you.

What you need is what’s known as an “exclusive buyer agent.” Sometimes buyer agents are paid directly by you, on an hourly or contracted fee. Other times they split the commission that the seller’s agent gets upon sale. A buyer’s representative has the same access to homes for sale that a seller’s agent does, but his or her allegiance is supposed to be only to you.

 

Make the end point.

Here’s where you exercise your haggling muscles.

Once you find the house you want, you need to move quickly to make your bid. If you’re working with a buyer’s broker, then get advice from him or her on an initial offer. If you’re working with a seller’s agent, devise the strategy yourself.

If the average difference is, say, 5 percent below the asking price, then you know you can make an offer 8 percent to 10 percent below, leaving yourself a little room to negotiate. If you really want the house, don’t lowball. The seller may give up in disgust.

Another factor to consider in determining your bid is whether the trend in recent home sales is up or down over the past year. For instance, if houses a year ago were selling at list, and recent ones are going at 3 percent below, then you might want to sharpen your pencil for your opening bid to just 5 to 8 percent below list.

Be creative about finding ways to satisfy the seller’s needs. For instance, ask if the seller would throw in kitchen and laundry appliances if you meet his price — or take them away in exchange for a lower price. Remember, too, that your leverage depends on the pace of the market. In a slow market, you’ve got muscle; in a hot market, you may have none at all.

Once you reach a mutually acceptable price, the seller’s agent will draw up an offer to purchase that includes an estimated closing date (usually 45 to 60 days from acceptance of the offer).

Have your lawyer or buyers agent review this document to make sure the deal is contingent upon:

1. your obtaining a mortgage;

2. a home inspection that shows no significant defects (make sure you’re clear on the definition of “significant”);

3. a guarantee that you may conduct a walk-through inspection 24 hours before closing. This last clause allows you to check the home after the sellers have moved out so that you have time to negotiate payment for repairs, just in case the movers cause any damage, or that big living room sofa was hiding a hole in the floor.

If you don’t already have one, look into taking out a homeowner’s insurance policy, too. Ask for recommendations from friends, your lawyer or your real estate agent. Most lenders require that you have homeowner’s insurance in place before they’ll approve your loan.

In addition to the appraisal that the mortgage lender will make of your home, you should hire your own home inspector. Again, ask for referrals, or check with the American Society of Home Inspectors, a trade group. An inspection costs about $300, on average, and up to $1,000 for a big job and takes two hours or more.

Ask to be present during the inspection, because you will learn a lot about your house, including its overall condition, construction materials, wiring, and heating. If the inspector turns up major problems, like a roof that needs to be replaced, then ask your lawyer or agent to discuss it with the seller. You will either want the seller to fix the problem before you move in, or deduct the cost of the repair from the final price. If the seller won’t agree to either remedy you may decide to walk away from the deal, which you can do without penalty if you have that contingency written into the contract.

The lender might also require you to establish an escrow account, which it can tap if you fall behind on your mortgage or property tax payments. Lenders can require deposits of up to two months’ worth of payments.

After all this rigmarole, the actual closing is often somewhat anticlimactic, though perhaps still nerve-racking. It’s a ritual affair, with customs that differ by region. Your lawyer or real estate agent can brief you on the particulars.

Lastly, buying a house have its own pro and con regarding our conditions and need which far more crucial than just trying to add some investment – unless that specific kind of house is something which you consider – Dream house (which normally meant for living till old time). Make the preparation as a whole before making any choices and actions.

That all from me for today – I’ll be back with more finances articles in the future – Daaaaaaaaaaaa