Family

Effective Money Management: Teaching Your Kids to Save Money

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You have taught your children some of the most important lessons in life. You taught them their ABC’s. They learned how to tie their shoes. You have even instilled good manners, as your kids say please and thank you when appropriate. But as parents, we tend to get hung up on so many of the elementary lessons that we forget to start working on the future. Your child may be too young to, say, balance a checkbook, but it’s never too early to instill basic money skills that will stay with them for the rest of their lives. Why do you think parents originally started giving out allowance? It is to start teaching their kids about basic money saving and spending habits.

Here are a few basic steps you can take to start teaching your children about saving money.

1.) Find a Larger Goal for Them to Save For

Is there a large toy or video game that your child has his eye on? Work with your child to help him reach his goal. Draw a thermometer or piggy bank with different levels of cash marked on the side. As your child reaches these goals, fill in the graph. Your child will be able to visually see his progress on the wall.

2.) Match Their Savings

If your child is saving up for an exceptionally large purchase, they can be easily frustrated or discouraged — it’s hard to reach $50 or $100 when you’ve only got a $5 allowance! To keep their hopes up, tell them you’ll match them dollar for dollar: every time they place a dollar in the piggy bank, you’ll put one in too. It’s an external way of encouraging your child to save.

If your child is a teenager, you may want to lower the percentage point. If they’re saving for a car, tell them you’ll match their savings 25% — but if they’re saving for college, you probably want to go as high as 50-100%.

3.) Find Online Lessons and Support

The Internet is full of savvy parents and financiers willing to help out fellow parents. Sites like adstalker.com can help you brainstorm future lesson plans or learn about the importance of helping your child understand basic finance skills.

Learning to save money is every bit as important as ABC’s and 123′s. We teach our children mathematics and spelling to prepare them for the future. Shouldn’t we do the same with basic life skills?

Your Claims for Your Child After a Divorce

Divorce is never fun for anyone. It is a sad and frustrating event, especially if you’ve been with the person for a long time. Even though you and your partner are the ones who should settle the problem, your child might be the one who suffers the most. If you and your spouse have chosen to go your separate ways, you need to consider what claims are made available to you and especially your child.

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Tax Credits

After a divorce, you have to be aware that your financial and tax situations will change. If you have received full custody of your child, you can claim earned income credit, child tax credit, and other child-related tax breaks. There are tax situations that allow you to file jointly or split exemptions, but both parties should reach a common agreement. This may be an opportune time to consult a Bergen County Divorce Attorney.

Child Support

This payment is made by either parent to support his/her child. Typically, whoever has the full custody or who is deemed worthy of custody is the one going to receive this legal obligation. Remember that a child support payment is non-taxable.

Joint Custody

If you claim joint custody with your spouse and you feel you don’t see your child enough, you can request more time. This is done by keeping records. You need to indicate how often you see your child, how long they remain with you, and how many times you have missed seeing your child. Some parents may feel that once a week or twice a month isn’t enough, especially if your child is taking the divorce hard.

You should also be aware that in joint legal custody, both parents have the right to their child’s records (e.g. medical, education, etc.) But, if you and your ex-spouse have filed for joint custody, then you view these records for the best interest of your child.

You may be pre-occupied dealing with the long, complicated process of divorce that you forget the welfare of your child. Keep in mind that despite all the legal issues, your child will require more attention and a lot of support from both of you. Divorce can be very hard on a child, and they may even feel it is his fault. Help him understand the reason of your separation. Talk with your child to reassure him the separation is not his fault.