How To Teach Young Children To Budget?

If you are a parent, then it is very important for you to understand the importance of talking to your children about money early in their life in order to prevent them from making costly financial blunders in their adulthood. There are many instances where you have seen the young people after their graduation move to their parental home and mishandle the cash that they earn. More than 40% of the US graduated students still receive financial assistance from their parents and more than 32% of the young adults aged between 18 and 30 live with their parents. Teaching budgeting early will help children save money in adulthood.

In order to avoid falling into the financial burden at a young age, it is always better for you as a parent to teach your kids about money and the ways to save it at a very early age. Any parent not interested in supporting their children when they reach 28 to 30 years, must start to teach them about money when they are 3 to 4 years old.

Teaching the children about money and the ways it can be utilized will help them become a very good money manager at the college. They will know the importance of paying the bills easily and ensure that their paycheck lasts till they get a new one. They must be taught at the tender age that money is finite and hence needs to spend it carefully.

It is important for the child to experience budgeting lessons and experiences at a young age so that they understand that money is finite. They should be making sure that the child should have to live with the decisions that he or she makes and must not expect their mom or dad to come and bail them out very time. If you are looking at more Lessons In Personal Finance, then do not hesitate to Click On This Link.

As the child gets older, the pocket money that you give will also increase. It is important for the children and the parents to carry out meetings from time to time to discuss on how to allocate the pocket money to cover the child’s expenses.

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The following are some of the ways to teach your child on how to budget.

Persuade teens to find jobs

It is not a bad idea to encourage your teenage kids to find a part time job after school hours to get into the habit of earning. They can learn a lot by doing jobs and this will also give the drive to spend wisely, as it is their hard earned money.

Take them with you while shopping

Take your young children with you when you are going for shopping. Teach them about the ways to shop and make them understand the price differences between a branded product and the local one. Also, explain to them as to why you are buying a particular product. This way they will understand the right concept of shopping and how to save while shopping.

Never bail them out

If your son spends the pocket money you gave for a new pair of jeans, then do not bail him out by giving more money to buy the shirt. This will help them to learn how to live with the money they have.

Importance Of Value Investing

Value investing will soon become the most sought after investment. The global markets are still under the financial suppression that it faced since 2009. It is a wonderful time for growth investing with lower interest rates. The markets have given a reduced premium to all businesses that can grow in this environment. The price to earnings ratio and other traditional value factors has taken a big hit, even after these factors have offered with a decent premium returns in the long run.

The value investors have been the worst hit and they have been kept in the cold winter conditions for long. It has been left cold and dry since the late 90’s. The growth and the value cycles have been on a mean path for about seven to ten years on an average. The growth cycle is in its ninth year running and there is every chance for this cycle to come to a close pretty soon and we will see the value investments soon entering the market environment. There are many value investors waiting for their turn to shine again the market.

As soon as the shift from the growth values to value investments takes place in the marketplace, you will find the slowcoaches of yesterday to become leaders of tomorrow. There is no way one can predict when the cycle change will happen, but there are certain signs that indicate that this paradigm shift is ever so closer.

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If you are interested to know more about the Basic Investment Principles To Keep In Mind, then you will need to Visit This Link.

The following are some of the reasons why many market experts feel that the time for value investments is not far away.

Increased interest rates in the US

The value stocks have been performing better than expected in the recent past after a small rate hike. They have been growing in a pervasive manner and there are no signs of slowing down. It has to be noted that the current scenario has happened in December 2015.

High yield bond markets recovery

The high yield markets have shown very good recovery in the recent past and this is one indication that value investments will be a force to reckon with in the near future.  The value investments are inversely linked to the high yield spreads in the US. The high yield spreads are on a low currently because of the better credit situations in the US. This is a big signal that the worst scenario for the value investments is behind us and it is time to move forward.

Powerful commodity markets

The prices of the commodities are increasing and this is a good sign for value investments. As value outperformance is interlinked with the increasing commodity prices, there is every possibility for value investments to see the hay days once again.

Weakening of the US Dollar

The value of the US dollar is low in the international markets. The value indexes are slanted and dependent on the energy, industries and tech markets. This will provide the value investment companies with an opportunity to earn.

Opaque Ties And Debts In Trump’s Financial Affairs

Trump’s holdings

If you look at the financial state of affairs with respect to the Republican presidential nominee, Donald J Trump, there are debts in double figures and partnerships that are complex. Such data can be found from the Trump Tower located on the Fifth Avenue in the famed streets of Manhattan. The debts are double the amount he can make from his public campaigns. However, as Donald Trump projects himself in the presidential campaign, he is a businessman and he has earned billions of dollars who is not in debt to anyone.

Looking into the real estate holdings of Mr. Trump, however reveals that he owns companies that have a total of $650 million which lies in debt. This is twice the total amount that can be obtained from public filings when he has made a bid for obtaining the presidential position at the White House. Fortunes of Mr. Trump lie also on several financial backers some of whom he has criticized during his campaign. For instance, there is an office building that is on Avenue of Americas whose part owner is Mr. Trump. This building carries a loan of $950 million. One of the lenders is Bank of China against whom Trump has railed against and stated that the bank is an economic enemy of US as well as Goldman Sachs whom he has criticized as the main control point of Hilary Clinton, claiming that the bank has paid her about $675000 in terms of speaking fees. Go Here to check a related article about Hilary and Trump controversies – “Hillary Clinton Criticizes Donald Trump’s Economic Plan“.

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Real estate affairs

Real estate projects are another grey area in Trump’s financial. There are mortgage structures and ownership issues that are complex and convoluted. He has had a long career in real estate in US as well as in abroad. He claims to have personal wealth that exceeds $10 billion, but how much of that is free for his personal use is debatable. As a presidential candidate, if Trump is selected, his hold over the tax and monetary policy would be considerable. He would also be able to make appointments that will affect his financial empire as well. Legislative issues would be influenced by him considerably, which in turn will impact his net worth in total. He would be able to officially deal with countries with whom he has had business interests.

Disclosures incomplete

There is a large aspect of Mr. Trump’s business dealings that remain mysterious and non transparent. His tax returns and a valuation of his assets had not been allowed by him, which makes things still cloudier. At the time when the campaign started he had submitted a federal financial disclosure form that showed that his businesses owed a total of $315 million to lenders and ties were there with several limited liability companies, about 500. The forms are designed for candidates that have a simpler structure of finances and hence, it did not require him to disclose many of his business activities.

Banks To Reduce Branches

The trend of real estate, banking branches might take a while to go defunct. There had been theses that stated that e-banking would make brick and mortar branches defunct. However, that might be an overrated suggestion as per the current trends. This is as per FDIC’s chief economist who has pointed out that people still walk in even if e-banking initiatives and features have increased.

Banking behavior trends

Banks have increased the use of online tools, but as the trend goes, US customers have not given up on their regular visits to the nearest branches of their banks. The industry has been trying to slim down and reduce costs of operations, but this kind of trend is slowing down this initiative. Most banks have taken up the initiative to reduce the number of branches they operate. It has been reduced by an average of 6% since 2009 when the operations peaked. This is as per data accumulated by Federal Deposit Insurance Corp. Last year there were 93, 283 branches that open which is the lowest level achieved in a decade.

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Analysts however have examined the data that banks have provided and stated that banks need to do more to reduce the pressure that has built on revenue. With low interest rates and demands coming in from regulatory authorities more cost cutting initiatives need to be taken. The number has fallen for FDIC insured banks. The percentage is 25% more than how much industry assets have increased over the same period. There is more room for consolidating branches in the near future.

Bank executives, however are seeing a different picture emerge. They see that the branches are crucial when it comes to getting new customers as well as increasing business opportunities with new ones. As per them, if several branches are closed, it would hurt revenue more than helping to reduce costs of operation. Jonathan Velline, head of the store and ATM strategy in Wells Fargo states that, customers still want to walk in and do most of their transactions and that is going on at a consistent rate even today. This is a view that is shared by many other banks. Many feel that online banking definitely helps to complement traditional banking services, but going digital fully will not serve well as most customer interactions and queries need to be handled face to face.

What other countries are doing

If you look at the US banking scenario, it is in the midst of how developed nations are working towards slimming down operations. This is as per the data published by the International Monetary Fund. More branches have been cut in countries like Canada, France or Germany while other aggressive countries that have lost out branches are Italy, Ireland, Greece and Spain. Find a related Banking Article HereBanking Crisis To One Of The Oldest World Bank. There are other factors that need to be considered as well as there are certain banking behaviors that are unique to different countries. In case of US most customer issue checks and need them to be processed by the branches.

US Economy Is Close To Financial Targets

As per the inflation and job target of the Federal Reserve Board the US economy is close to the targets set. The Feds are hoping that the growth rate will pick up in the remaining months of this year. This was stated by Stanley Fischer, who is the vice chairman of the central bank. The comments were made for the Program on World Economy where Fischer commented that employment has gone up in an impressive manner since the low that the nation experienced from 2010. The unemployment rate has been about five percent for the last year. Find Here an article on What Are The Financial Perks Of Being A Young Person?

Take A Look at what the Feds are saying about the US economy state.

Inflation targets

The core inflation stands at 1.6%, which was for the price index of personal consumption. This expenditure stood at the above mentioned figure for the last 12 months. The rate is close to 2%, which is a target that is set. The Feds had a dual mandate for reaching an inflation rate of 2% and to get employment at sustainable levels along with that. For this kind of trend Fischer voiced optimism. He stated that the growth rates are coming close to targets that are a positive sign for the US economy. The Gross Domestic Product of US is also expected to grow well this financial year that will account the expenses that have gone into the services and finished goods of the economy. The growth in GDP is expected to pick up in the following quarter. Investment will recover from a weak patch with which the year started off this year. It is hopeful that the dollar appreciation will diminish as well.

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Rate hikes

Along with growth in inflation and employment the Feds are hopeful that they will be able to raise the interest rates. The Feds are hoping to raise the rates as the employment is increasing and growth has been modest. The funds rate has not changed till the level has been raised from the near zero to 0.5% which was the rate in December. The increase has been over a decade. The Feds feel that the economy has stayed resilient though there have been negative impact over the last two years.

Influence of other factors

There have been several negative factors that have hindered growth in the US in the last two years. For instance, the debt crisis that came about in Greece or the 20% appreciation that led to the dollar going down for trades. The other factors comprised of slowdown in the growth of China’s economy as well as turbulence that was found in the financial markets in the early part of this year. There were other events that have led to the uncertainties like United Kingdom deciding to leave and not be a part of the European Union. Even with these shocks in the world economy Fischer feels that the US economy has held on and employment had continued to rise.

Tax Free Week 2016 Kick Starts In Connecticut

Make use of seven-day tax free stretch that started in Connecticut. If you are in Connecticut, then you will be happy to know that you do not have to pay any sales tax for some of the things that you buy during this week, thanks to the 2016 Connecticut tax free week. This is one of the important weeks that people always wait for as they get to buy a lot of things at lesser prices. With the schools set to open very soon after the summer holidays, it is an ideal time to buy some of the back to school stuffs.

The Tax Free Week In Connecticut is the best time to buy anything that you need for you and your kids. One thing that you need to bear in mind is that you are eligible to enjoy free taxes only for the items priced under $100. Anything that carries a price tag of over $100 is not tax free. Some of the things that will not fall in the tax free bracket are: jewelry, wallets, sports uniforms and gear and purses, even if they cost under $100.

The things that you can buy tax free all through the week are: rain jackets, children’s school stuff, jeans, shirts or a pair of shoes. The best part is that the tax free items can be bought from physical stores, over the phone (if the retailer is participating) or even online. To know more about The Best Tax Free Investment In USA, you should Check Out This Link. The 2016 tax free week of Connecticut has started from August 21, 12:01 am and lasts till midnight of August 27.

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If you are interested in buying a lot of things, then you need to do a thorough research and find the best deals that will help you to save huge during this tax free week. Most of the retailers will be part of this tax free week. The tax free week has become a staple for the back to school purchases. The buyers get to enjoy more discounts as the sales tax is applied after the use of the discounts or coupons that are on offer. So, even if the price of the item you buy starts above $100 and if its price is less than $100 after the discount, then you are eligible to get free sales tax on the item.

There is no doubt that everyone from the retailers to the consumers will be taking advantage of this annual tax free week. This is one way of boosting the economy of the state. The state is expected to make $4.5 million in sales during this August tax holiday week. Connecticut is one of the 16 states in the country to offer the back to school tax free purchases for its residents. An average family with children in grades K-12 spends about $630 for the back to school purchases every year and the average college going student family spends $899 for the back to college shopping.

Things You Need To Know About Currency Exchange

Brexit has been a shocking event for all of us. It had a huge impact on global economy and currencies. This has made Americans think about the value of the US dollar. If you are a traveler, you have got to consider all the options for currency conversion. Sadly, they don’t consider all the options as they tend to do things last minute. When it comes to spending money overseas, you definitely need to do your own research. You will also have to take a second look at the personal choices you make.

Not knowing enough about the currency exchange can lead to money loss while travelling abroad.

Constant flux

Foreign currencies never remain the same as their values keep changing all the time. So, you have to check the value every day to know where it stands. Exchange difference rates can be considerable if we are talking about a bigger amount. You also have to consider the applicable fees to get a bigger picture. Let’s take a look at a couple of common options when it comes to spending money abroad.

Cash vs. plastic

When it comes to overseas travel, many would advise you against using cash. They would ask you to opt for charge cards. But as a person who has travelled a lot in many countries, I can tell you one thing – don’t follow this advice. Cards can be a nightmare at times. In many countries, your international card might get rejected. So relying totally on the card is not an intelligent choice. You may also have to deal with technical glitches while you are abroad. So putting all your eggs in the card is not the smartest move. If you want to learn more about the Foreign Currency Trends, Click Here.

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Transaction fees

Yes, when it comes to using charge cards, there are several things one gets afraid of.

  • You may have to deal with foreign transaction fees on your debit and credit cards.
  • You will come to know of this only when you take a look at the monthly statements.
  • You will be surprised to see 1%-3% surcharges on your monthly statements.
  • Discover and Capital One, do not charge foreign transaction fees we hear.
  • The same can be said about American Express Platinum Card as well.
  • But you will have to deal with caveats.

International currency card

Yes, the international currency card might be really helpful. MasterCard and American Express issue international currency card and this card might be really useful while you are globe-trotting. These cards are pre-loaded with several currencies and this will go to make it easy for you to travel. But you are forewarned about the fees involved. You will have to check with the card issuer to learn more.

Traveler’s checks

Yes, this is an old option which is still very popular. The good thing about them is that your money will be protected if they are stolen or lost. As far as the cons are concerned, it’s not recognized universally. You might have trouble at many outlets. Also, you will have to deal with additional fees. When you travel abroad, you have several options. Check all your options for your own good.

What Are The Financial Perks Of Being A Young Person?

Unlike an old person, you have many financial perks as a young person. Being a young person, you have many financial perks. Let’s take a look at those perks below. Young people struggle when it comes to their paychecks and bank balance. But the age has other advantages. Being a young person, hard work is something which is expected of you. Often times, the salary is a joke. Young people are hardly able to save money. Young people also have to deal with student loan bills, which consume their life. Also, they are clueless when it comes to managing their anemic assets. But young people have financial advantage as well. If you do financial planning as a young person, you will be able to enjoy a financially secure life later on – that’s what the experts say. Let’s take a look at the major financial advantages of youth. If you are looking for More Articles In The Finance Category, Click Here.

Fresh start

Yes, as a young person, you will be able to start with a clean slate. Once after making several mistakes, it is difficult to start fresh as you will be dealing with the aftermath of the decisions you have made. But as a young person, you don’t have to worry about any of that.

  • As a young person, you haven’t made a critical error yet. This is a huge advantage.
  • Older investors and savers might be struggling to deal with the aftermath of the mistakes they have made.
  • As a young person, you don’t have to undo several mistakes that you have committed. This gives you undivided focus on what you want to achieve.
  • As you get older, you will less time to catch up and fix your mistakes. And as a young person, you don’t have this disadvantage.

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Time

Yes, as a young person, you have time on your side. It is the case for both investing and saving. When you have time on your side, you will be able to plan your future with a lot of clarity. When you start investing so early on, you will have more time for your accounts to grow. And when you are old, the compound interest is going to be your best buddy. This is one of the major reasons why you should start investing so early on. When you start later, it will be difficult for you to catch up. You have to start investing so early on, keeping retirement in mind. You should contribute whenever you can. As far as compound interest is concerned, you don’t need to invest a lot of money to have a bigger impact.

Affordable health insurance

When you are young, you tend to be healthier. As a result, you will be paying less money as health insurance premium. This will help save lots of money. Compared to older people you will be paying very less money. Also, you will have the flexibility to choose a high-deductible plan as well. This will reduce the monthly costs considerably. Also, you will have more time to have a good health savings account.

Yes, being a young person, you have several financial advantages compared to an older person. Just take advantage of this.

Hillary Clinton Criticizes Donald Trump’s Economic Plan

Hillary Clinton attacks, Donald Trump’s economic plan for the country. Hillary Clinton, Democratic Party nominee for the upcoming U.S. Presidential election, has blasted Republican Party nominee Donald Trump for his economic plan during an address at a campaign rally. At the same rally, Hillary talked about Her Economic Plan For The Country. She said that all the ideas proposed by Trump are outlandish. She added that even Republicans can’t stand the ideas proposed by Trump. She came up with her own proposals.

Michigan

Michigan has been a big talking point throughout the primaries. Hillary said that Trump is not interested in talking about Michigan at an event held in Michigan. Hillary Clinton pointed out that, during a Trump’s recent visit to Detroit, he only talked about crime, poverty and failure. According to Hillary, trump has no idea what makes Michigan great. There are so many economic challenges before the American public, but Trump has no practical solution for any of those problems, added Hillary.

Donald Trump’s detailed economic plan

Donald Trump had been criticized for not coming up with a detailed economic plan. But he recently unveiled a detailed economic plan. Hillary Clinton wasn’t impressed. She criticized his economic plans, calling them outlandish.  She joked that 6 guys named Steve wrote the economic plan for Trump. Hillary said the following at the event.

  • She’s going to have your back every day if she becomes the president.
  • She says she’s committed to small-business owners.
  • Hillary talked to the crowd about her father’s drapery printing business.
  • She criticized Trump’s business practices in the past.
  • She cited the example of numerous fights Trump’s business had with smaller companies.

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Trump is an irresponsible businessman

Hillary said in her speech that Trump refused to pay his bills in the past, which led to the destruction of many companies. Hillary noted that Trump chose not to pay them. Trump had the resources to pay them, but his personality was such that he flatly refused to pay them. And that says a lot about a person who wants to be the next President, said Hillary in her scathing attack speech. According to the experts, US Economy Will Surpass The Challenges. Take A Look At The Article Here To Learn More.

Trump’s position on trade

Hillary also attacked Trump on his position on trade. He reminded the crowd that 2 of the best known American Olympians criticized Trump on his position on trade. She said that Trump is hidden behind the walls. That was also an indirect dig at his proposal to build a huge wall at the Mexican border. Hillary congratulated Olympians Simone Biles and Michael Phelps for their achievements at the Olympics. She also congratulated their courage to go after Trump. America is not afraid to compete – Hillary added.

TPP

Trans-Pacific Partnership (TPP) was a big issue during the primaries. Trump opposes the deal. Initially, Hillary was for it. But she has changed her stand as she is also against it. She has said that she’s going to oppose the deal once she comes into power. But she didn’t talk about her previous support for the trade deal. During his speech in Detroit, Trump had said he’s aiming at the biggest tax reform in America has seen after a long time.

Retiring With The Right Financial Preparations

The way to prepare for retirement is important from a financial perspective. Many people often look back at the years of their youth and how they had squandered their earnings with regret. Many often regret that they did not prepare enough for their retirement that is now upon them. The years of our youth are often wasted and there might be several things that one could do differently.

Survey on financial preparedness

There was a recent survey that was conducted by Allianz Life Insurance Co where it was reported that 32 percent of the polled contestants regretted certain life choices they had done. The biggest of the regrets had been that they did not pursue the dreams that they had initially which amounted to 39 percent. Others stated not having taken more risks in their professional careers, about 38 percent, while the other category of regret comprised of 36 percent stating that they should have taken more risks in their lives than they did.

The other category of regret wasn’t prepared enough for their retirement years. By now most people are aware that savings are not enough for the inflated lives that people are forced to live which becomes more difficult when earnings become limited and retirement age has come up. As per an Employee Financial Wellness survey that had been conducted by PwC, about 37 percent who were interviewed stated that they would not be able to retire at the time when they wanted. The survey tracked how well settled was full employed people across the nation, especially from the financial front. There was another survey that was done by Indexed Annuity Leadership Council. This survey revealed that many Americans, about a quarter of the national population were worried that they would be running out of retirement funds and not have adequate amounts saved.

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Other regrets

Not all regrets are financial however. For instance, some state that they wished they enjoyed life a bit more when they were working. That is because the health problems that come up when one is older, often does not allow one to enjoy life nor do the things that they planned to do after retirement.

Advice from successful retirees

Those who mastered the art of saving enough and being able to enjoy their retired lives, have some advice to provide:

  • Most advice that one should start early. It is something that financial planners agree with as well. Clients are advised that they need to plan for their retirement much before, almost as soon as one starts earning. Getting organized about one’s finances is the right way to inculcate the right habits on spending and saving.
  • The other bit of advice that might surprise many is the fact that one should plan retirement not too late. Even financial planners agree with this aspect. They feel that clients get stressed when the question of retirement comes up. This is also because there is no steady income plan made by this time. Quality of life often deteoriates and impacts life after retirement.

The other points involve getting help from an expert financial planner at the right time. For related articles on pension Go Here, Discuss About Pension Plans And 401ks.