How to Plan/Budget your money?

Unless you budget your money, you're practically inviting unnecessary debt into your life, and making it impossible to save. These steps will help you figure out what money is supposed to go where so you can control your spending accordingly.

Steps

1. Create a budget every time you get money. For most people, this is once every two weeks. Sometimes it's weekly, sometimes it's monthly. Either way, it's a regular interval, and it's the best time to decide how you're going to spend your money. Make it a rule that you don't spend any of your paycheck money until you've worked out your budget.

2. Make a list of all the things you'll need to pay for until the next paycheck, such as:

* Rent/mortgage

* Utilities

* Vehicle payments, insurance, maintenance (e.g. oil changes, tire rotations)

* Debt (credit card payments, student loans, doctor's bills)

* Gas

* Tuition, school supplies

* Food/groceries

* Health insurance

3. Anticipate how much you'll need to pay for each and write that amount next to the corresponding item on the list. You can also opt to pay for a fraction of something that isn't going to be due until after the next paycheck. For example, if your rent is $800 due on June 1, you just got paid $700 on May 12, and your next paycheck will be $700 on May 26, it may be wise to set aside $400 from this paycheck for rent so that you only need to take $400 out of your next paycheck to pay for rent.

4. Add up all of the amounts (we will call this your regular expenses) and subtract it from your paycheck amount. Do you get a negative number? Then you are living way beyond your means. If you have money leftover, split that money up into a few groups:

* Flex money. This should be about 10-20% of your regular expenses. It's for if something you need to pay for turns out to be slightly more expensive than you anticipated. This can happen with utilities, or if gas prices suddenly go up, or you get a flat tire.

* Savings. Ideally, this should be about 30% of your paycheck, although even 10% (if you do it consistently) is pretty good. Build up enough savings for an emergency fund (about 4-6 times your regular expenses), then start saving money to invest.

* Spending money. This is whatever is leftover after you subtract flex money and savings money. It's what you'd spend on things like clothes, eating out, movies, gifts, and anything fun, basically. If you start to cry when you realize how little fun money you have, then you need learn How to Reduce Your Expenses.

5. Put everything but your spending money out of reach. The easiest way to do this is by leaving everything (except your spending money) in the bank. Withdraw all of your fun money in cash, and leave your debit card (and credit card[s]) at home. Use the cash for anything you want, just make sure you make it last until your next paycheck. You might not want to carry it on you all at once, but having physical cash will help you keep better track of your fun money than using a card.

Example Budget

Paycheck: $741.56

Regular Expenses:

* Rent $300

* Utilities $50

* Food $50

* Credit card payment $50

* Total - $450

$741 - $450 (regular expenses) = $291

$291 - $45 (flex money, 10% of regular expenses) = $246

$246 - $150 (savings, 20% of paycheck) = $96 money I can do whatever I want with until my next paycheck

Tips

* If you don't end up using your flex money, roll it over into your savings.

* An alternative way to budget is to Pay Yourself First.

* If you get paid about the same amount on a regular basis, it'll get easier to budget your money over time. If you have a variable income, it'll be harder to anticipate your expenses because you won't know when's the next time you'll get paid. List your budget categories in order of importance and fulfill the most important items first. Play it safe; assume it'll be a while before you get money again.

* If you can, create a personal income statement or balance sheet. This will allow you to see what you owe for rent, utilities, loans, etc. and how much you can keep for yourself.

* One way to stay in a budget is, after you’ve set aside all the money for things that you need to pay for, take out only as much cash as you can afford to spend until your next paycheck. Then DO NOT take out any more money until that next paycheck. Most of us spend what’s in our wallet. If you limit that cash you put into your wallet, you can limit your spending.

* If you have spendthrifts in your circle of friends, you may need to formulate a list of ready excuses to explain why you can’t go out with them all the time.

* The most important thing is to remember that there is a difference between what you need and what you want.

How to Cite Sources for either Thesis/Research or anything

The purpose for citing is to let readers know that a specific piece of information you're providing has a source, other than your own observation or reasoning. In many cases, the strength and credibility of your work depends on the validity of your sources, as well as your ability to represent those sources clearly without plagiarizing. Even if you fail to cite a source, or cite improperly, without meaning to do so, the consequences can be just as dire as if you did it on purpose, especially in academic and professional settings.

Steps
1. Evaluate the credibility of the source. Don't drag down the credibility of your publication by cavalierly citing unreliable sources.
2. Gather the following information about each source. Find out what kind of information you'll need from each type of source. If you're using a strict format that requires the copyright year of each book you refer to, it can be a pain to go through all of your research without knowing this, then have to go back, find all the books at the library, and determine the copyright date. Generally, it's better to record more information than less, just in case.
* Books - Full names of all authors, title of book, city of publication, publisher's name, year of publication. If the book is published by an organization and the individual authors aren't listed, write down the full name of the organization. For electronic books, also record the URL and date of access.
o Encyclopedias and dictionaries - Also get the full name of the author who wrote the entry (if it is given), the entry title, the number of volumes in the set, and the edition. Write down the volume you're using and the page numbers, unless the content is organized alphabetically.
o Anthologies and collections - Note the author and the title of individual work you're citing (poem, play, short story, etc.), the full names of any editors and compilers, and the page number(s). If the work was previously published in another book, record the information for the original source as described above.
* Journal articles - Journal title, article title, author name(s), volume and issue number of the journal, date of publication, and page numbers of the article. If it is an online journal, also record the page or paragraph numbers (if applicable), URL, and the date you accessed the site. If you are accessing the article through a database, also record the database name.
* Magazine articles - Author(s), title of article, title of magazine, volume number (if applicable), date of publication, and page(s). For online magazines, get the date of access and URL as well. If you access the magazine through a database, find the vendor/supplier of database, database name, accession number of article (if applicable), and the date of access.
* Newspaper articles - Author of article, title of article, name of newspaper, date of publication, and the section, page and column location of article. If the newspaper is online, get the URL and date of access, too. If you found the newspaper article in a database, write down the URL, date of access, database, and library through which article was accessed (name, city, and state).
* Websites - Author (if given), title of work, group responsible for the site (if applicable), date site was last updated, date of access, and URL. If you have trouble finding everything except the last two items, you might want to reconsider the validity of this source. For postings, also get the title of posting, post number (if numbered), date of posting, URL the post was made to, and URL of message archives.
* Government documents - If published by the US government, get the issuing agency, title of the document, number of the Congress, session number of Congress, place of publication, date of publication, document number (if given), and SuDoc number.
* Letters and interviews - Names of author and recipient (or interviewer and interviewee), date written/conducted, name of collection, name of depository, and the depository's location.
3. Place a reference next to each statement that you've cited. When you're writing your final paper, be sure to keep track of which source each cited statement came from. How you do so depends on which format you're using.
* MLA - Author last name and page number in parentheses. If the author is already mentioned in the statement, just put the page number in parentheses. If there are two authors, name them both with "and" in the middle. Use commas if there are more than two authors. Place the citation before a punctuation mark.
o E.g. Leaving the ground in sod increases the organic matter of the soil by 15% in 10 years (Alison 45).
* Turabian footnotes - Add a superscript number at the end of the statement to denote which source it is referring to. Even if you refer to the same source multiple times, it gets a new superscript number every time. Start the superscript numbers from 1 every time you start a new page.
o E.g. Leaving the ground in sod increases the organic matter of the soil by 15% in 10 years.1
* APA - Author last name (or organization name) and year in parentheses. Use commas. Add "p." and a space before the page number if the statement is a direct quote. If the author is already mentioned in the statement, put the year in parentheses next to the name (and put the page number in parentheses at the end of the statement, if applicable). Place the citation before a punctuation mark. If there are two or three authors in parentheses, use "&" instead of "and".
o E.g. Leaving the ground in sod increases the organic matter of the soil by 15% in 10 years (Alison, 1987).
o E.g. Allison (1987) asserted that "leaving the ground in sod increases the organic matter of the soil by 15% in 10 years" (p. 45).
* CSE Citation-Sequence - Add a superscript number at the end of the statement to denote which source it is referring to. Unlike with the Turabian footnotes, there's only one superscript number for each source. It's possible to have superscript numbers on one page that are out of order if a source was cited on a previous page. You can also cite multiple sources at once by specifying a range, or using a comma. The citation can go in the sentence or at the end, after punctuation.
o E.g. Leaving the ground in sod increases the organic matter of the soil by 15% in 10 years.3 As discussed earlier in this paper, the root system of the sod aerates the soil.1 Multiple studies suggest that this is a phenomenon observed in every soil type.8-12
* CSE Name-Year - Author last name and publication year in parentheses. If the author is already mentioned in the statement, just put the year in parentheses. If there are two authors, name them both with "and" in the middle. Use commas only if there are more than two authors. Place the citation before a punctuation mark.
o E.g. Leaving the ground in sod increases the organic matter of the soil by 15% in 10 years (Alison 1987).
* Chicago Manual of Style, author-date style recommended for natural and social sciences
o Similar to MLA as described above.
* Chicago Manual of Style, notes-bibliography format recommended for the humanities (literature.
o Similar to Turabian footnotes as described above.
* Legal / Blue Book format used for citations to and in legal documents.
o Depending on the type of work, may use in-line citations or footnotes/endnotes. The general format follows the form of case name or author and article name, followed by a comma, then [Volume Number] Authority Name [Page number of start of case/article or section number of statute], followed by the date in parenthesis. For example, Marbury v. Madison, 5 U.S. 137 (1803) (a case named Marbury v. Madison, found in the fifth volume of the reports of the U.S. Supreme Court, starting at page 137), 12 U.S.C. §3401 et seq. (a statute beginning at section 3401 of the 12th volume of the United States Code) and Warren and Brandeis, The Right to Privacy, 4 Harvard L.R. 193 (1890) (a journal article from the fourth volume of the Harvard Law Review).
4. Assemble the list of works cited or references. This is what the reader will refer to when they see a citation and want to find out where you got the information. It usually goes at the end of the work (except when you use Turabian footnotes) and is sometimes referred to as a bibliography (when it includes sources that were not directly cited). The following links contain guidelines and examples for commonly used styles:
* APA
* Turabian
* MLA
* Chicago Manual of Style

Tips
* Organize your notes by source. This will make it easier later on, so that you're not scratching your head and wondering "Where did I get this conclusion from...?" As you write down or type any ideas or observations from a source, be sure to paraphrase. Don't just switch around a word or two, substituting a noun here and a verb there with a synonym. Putting what you've read in your own words is not only a good habit to prevent unintentional plagiarism, but it's also a useful learning technique.
* Widely known facts don't need to be cited, but ideas, observations, conclusions, unique expression, and even questions and opinions do. Generally, if the statement is even marginally questionable or subjective, a citation should be provided. When in doubt, cite.
* With the Internet becoming more popular, questionable web sites are becoming more common. Using citations can help establish your site as a credible source, as long as the references you make are to established experts and peer-reviewed studies. For example, both Wikipedia and wikiHow have systems for incorporating sources into the body of the text.
* If you're making a presentation and you have slides to show the audience, it's appropriate to cite your sources on the slides (any format is usually acceptable) as well as to mention the source when you speak (e.g. "Rudford found that when Japanese beetles emerge from their winter location..."). Have a list of sources ready in case anyone asks for them after the presentation.

Warnings
* All the citing in the world, even if in impeccable format, won't improve the credibility of your work if your sources themselves are weak.
* Don't cite someone else's citation. If you read a statement in a book or any other source that is cited from yet another source, find that original source, verify that the statement is accurate, and cite it directly. If you can't find the original source, some guidelines allow for making note of it in the format, such as "Johnson, LR as cited in Peterson, GS"
* Copyright law in most countries protects unique expression in any form. When it comes to writing, this is why it's especially important to paraphrase. If the idea itself is unique, though, you can avoid copyright infringement by expressing the idea in your own unique way, but you may still be guilty of plagiarizing if you don't acknowledge the source that you got the idea from.

Control Anger.. How to Control Anger

Anger can be very destructive to yourself and others. Not only can it harm you on the outside, but in your inside as well. Anger is a feeling, or more of a destructive emotion that can, will, or might take over you without your consent or permission. The following material discusses various types of anger and how to control it.

And how to do this...

1. Understand the reasons for your anger and understand its causes:
* Examine thoughts, as the memories of the causes and reasons for the anger to arise. Limit this examination to one source and cause at a time, and isolate it from the numerous other things that may make one angry.

2. Determine whether specific anger is legitimate, or from expectation

3. LEGITIMATE ANGER: One is certainly genuinely entitled to anger at those who do one harm, cheat, lie, steal from one, or violate one in some way. One may be legitimately angry at circumstance such as the situation of an orphan, incest, rape, deceit and innumerable other injustices. And so the anger is justified and it is there, and it is quite natural. This justified anger may be amplified by frustration, where one cannot do anything to rectify the cause, either because it is in the past and done, or because the cause cannot or will not be changed. Dwelling on #this anger often causes extreme emotional states, adrenaline rush, the racing of thoughts and the exaggeration of other slights related or not.
* Deal with Legitimate Anger: It comes down to - one wants justice. Anger may be readily justified by difficult circumstances and people. One would expect not to get robbed and when one does one is entitled to get and be angry. However the anger and bitterness only compounds the original injustice extending it into perpetuity. One allows the perpetrator the control of one's feelings endlessly, not only in the past but in the present as well.
* Realize anger becomes an identity. 'I am angry person, hear me roar'. This entitles one to special privileges and compensations. It gives one power. Attempt to discover the entitlements one's anger has provided one, and that one becomes dependent. One may derive emotional energy and motivation from anger, to power trip and just to get one's own way. Perhaps a better way to channel this type of anger is to get mad at things that don't affect one exactly personally, like the news. Channel anger into creative motivation like art, writing, manual labor or sports.
* Realize that depression, even that diagnosed by a professional, can at root be caused by anger, and the frustration arising when it cannot or is not rectified, and there is no justice. Because anger in most cases must be suppressed, so as to not cause harm to oneself and others, or its source has caused humiliation and shame, and because one seethes with it when not released, and one pushes it into the unconscious, its unresolved festering can cause depression.
* Understand that unresolved anger is often directed unfairly at others by stereotype, as either individual persons, groups or organizations. Unable or unwilling to confront the source of one's anger, one may create a general category resembling the character of the source and attack those of that type to get justice. It is unfair to guiltless parties.
* Determine fault by an honest assessment, mostly to determine whether one has misplaced blame on oneself. Do not take blame for others misconduct. If one has some culpability take responsibility for it, wherein it helps to admit and cross check with others. Refuse to take any responsibility where one is not at fault. This means there is no guilt. However if one has culpability one may have diverted the anger from the self to another party. One might find that they may have exaggerated the source incident out of proportion. Until one accepts responsibility there will be no resolution, but only endless recrimination.
* Attempt to discover one's true feelings toward the source of one's anger and of oneself in relation to it. One may feel they cannot put the blame on someone they love, or admit hate especially if one does not believe they hate, or cannot love one they think they hate, or cannot hate one they think they love.
* Separate out conflicts of interest, such as emotions in conflict with ambitions and desires, such like confrontation with an anger source that controls inheritance or livelihood. One may have to choose between material benefit and self-well being.
* Purge the anger. This is a necessity and can be done in a variety of ways. Confront the perpetrator. Do not get revenge even if you think the perpetrator truly deserves it. Revenge is a destructive cycle that ends up harming you as much as it harms them. Just confess it calmly to oneself and to others. Write it out. Once one has made it conscious, the next step is to say it aloud to others, as the case with 'whatever' Anonymous. This can be a professional, a group, friends or complete strangers.
* Accept it. What is done is done. Move along nothing to see here. Get over what is only a negative force in one's life.
* Forgive and realize that under different life circumstances you might have been capable of doing the same thing.

4. EXPECTATION ANGER: means one creates expectations of one's own choosing, or adopts them from family, friends or the culture in general. Anger may arise when actual experience or present thinking does not conform to expectation, and where that expectation is important and has consequence. Expectation is standards, rules, laws, tradition, custom, the way one expects others and reality and general to be. When reality does not meet expectations, one may get angry. This anger problem can be dealt with by changing one's expectations.
* Do not expect others to share the same standards, values, and expectations as oneself. Maybe the most common expectation is expecting others to conform to one's own standards. Don't assume others who make one angry are doing it intentionally. They may simply have different standards. In some cities in the world everyone beeps their horn when the light changes to green. One may get angry because someone's faux pas is interpreted as willful disrespect, arrogance or animosity, when actually the true problem may be they are simply unaware of what one's standards are. Confront the perpetrator in some way to let them know that they are making one angry. Of course caution must be considered in the event of the possibility of violence.
* High expectations for other people when unrealized, may tend to cause anger. Anger may be created by imposing expectations and by having them imposed on one. Attempt to understand the motivations for one's high expectations. One may discover they have more to do with one's own flaws of character. Recognize that imposing one's own standards on others is fascist. Let them have their own life. When there is conflict: discuss it, argue it out, compromise or separate. One may not like it when others do it to one, but to then do it to others, can only be for the reason of some higher authority. One may have to learn to avoid these kind of people.
* When something makes one angry express and let it out immediately in some calm and intelligent way and do not suppress it. Make understandings with others concerning one's annoyances. One should expect that compromise might be necessary. In relationships, expectations should be known and agreed upon by all parties. Expectations for children or anyone for that matter should be relative to their capacities and equally explained.
* You can change your expectations: Anger can be dealt with by changing one's expectations. One may change, as raise or lower one's expectations for circumstances and other people. It is useless to expect a dog to adopt religion, and the failure can only cause disappointment and anger. People who are wedded to strict, standards and absolutes are subject to anger when others do not conform. Apply standards to oneself and not necessarily others. Separate the responsibility for one's own standards from others.
* Always discuss with others what it is they do that causes one's anger and attempt a resolution or compromise. Relationships may have to be ended if no resolution can be reached, when the anger is destructive to all members involved. The break may be a better option than the continuous friction and perhaps violence and humiliation of all.

5. CIRCUMSTANTIAL ANGER: Anger at circumstance can be difficult to solve since it is often difficult to change, like children who don't like their family for instance. Learn to accept reality as it naturally is. Avoid circumstance that causes anger whenever possible, like avoiding certain people, situations and relationships. Learn one's own capacities and do not get angry at one's inability to live up to things that are not realistic for one's own abilities. Many times these things may become possible as one gets older, or they may simply be impossible. Personally not planning on ever becoming a millionaire. Not fair is it? It may help to accept the world the way one finds it and not create anger by having unrealistic expectations.

Some Useful Tips:

* If the above fails, seek therapy or anger management groups. Or with the net one can go on line, and find dozens, hundreds, perhaps thousands with a same or similar problem. One can join chat groups.
* One can mitigate one's anger by transference. Transfer one's anger to inanimate objects like a punching bag. Examples of such may found at the following Release-Anger.
* If at any time you are thinking about doing something that would hurt yourself or other people, get help immediately.
* If you feel anger taking over, remove yourself from the situation before things become too heated.
* Recognize that sometimes anger is justified, and may need to come out. However, realize that there are productive ways to do it instead of lashing out at others.
* Ask yourself if the future recipient of your furor deserves to be blown up at, or if you are just using them as a punching bag to release steam about another person/issue that bothers you.
* Sometimes, instead of talking to someone directly, it is more appropriate to write a letter.
* Taking yoga can be a long-term solution to anger problems, allowing you to focus on your feelings and release your stress.
* If at all possible, remove yourself from the situation. It's amazing the difference 8-hours of sleep or a 5-minute walk can make. Time gives you distance from the issue, allowing you to put things into perspective.
* Find a creative outlet, such as writing, drawing etc. where you can expend your energy. Hobbies help elevate your mood and allow you to channel energy that you'd usually spent dwelling on issues that you aren't able to resolve. Imagine what you could do with the energy you expend in anger if you channeled it into something else.
* There is a difference between controlling anger and holding it in until later. If you are unable to avoid feelings of anger, try to release your bottled up feelings later in positive forms like art, exercise, or some other hobby.
* Try thinking of stuff that you are thankful for. The more specific, the better. You can't be truly angry and thankful at the same time.
* Meditation is a useful way to release stress and/or anxiety, which are often prerequisites to anger. Do not meditate when you are angry, as this could have a negative effect on your anger. Instead, meditate when you have calmed down and are in complete control of your thoughts and emotions.
* Remember, we are all human and tend to get angry at someone or something. You can tell someone how you feel and see if they can help you.
* Try writing down all the things that happened today (try at least a whole front and back of a page, or more) and how you feel about yourself and other people.
* Try to go in an empty room and count to 10.


Beware:
* You may need to see a professional on mental health if problems still exist.
* If you feel like you lose control when you're angry, seek psychological help.
* Anger is never, ever an excuse to strike out at or abuse (physically or verbally) the people around you.
* Find something that releases your anger (nothing violent or harmful) this could be as simple as throwing a few punches at your punching bag in the basement
* Do not hurt a person or animal. In fact, stay away from them when you are angry.
* Don't abuse yourself (e.g: cutting, substance abuse) This won't make you feel better and will only hurt you more.

Gain Control of Emotions

Controlling emotions means to identify them and even act of them when ou think they are appropriate.
Here are a few steps for you:

Know your emotions. There are a million different ways you can feel, but scientists have classified human emotions into a few basics that everyone can recognize: joy, acceptance, fear, surprise, sadness, disgust, anger, and anticipation. Jealousy, for example, is a manifestation of anger - anger that you're not "as good" as something else, fear of being abandoned because you're not "perfect" or "the best".

Observe your emotions. Many times, we're at the mercy of our emotions on a subconscious level. By recognizing your emotions on a conscious level, you're better able to control them. The last thing you want to do is ignore or repress your feelings, because if you're reading this, you probably know that when you do that, they tend to get worse and erupt later. Ask yourself throughout the day: "How am I feeling right now?"

Consider your options. Once you recognize an emotion, think of at least two different ways you can respond. Your emotions control you when you assume there's only one way to react. You always have a choice. For example, if someone insults you, and you experience anger, your immediate response might be to insult them back. But no matter what the emotion, there are always at least two alternatives:

• Don't react. Do nothing. If you do this, however, it's important to continue acknowledging the emotion. Just because you're not reacting to an emotion doesn't mean that emotion doesn't exist. If you choose not to respond, it should be for a reason (as discussed in the next step) not because of a competing emotion (fear of confrontation).

• Do the opposite of what you would normally do. The "turn the other cheek" philosophy would fall under this category.

Make a choice. Now that you've got several options, act on:

• Principles - Who do you want to be? What are your moral principles? What do you want the outcome of this situation to be? Ultimately, which is the decision you'd be most proud of? This is where religious guidance comes into play for many people.

• Logic - Which course of action is the most likely to result in the outcome you desire? For example, if you're being confronted with a street fight, and you want to take the pacifist route, you can walk away--but, there's a good chance that burly drunk will be insulted if you turn your back. Maybe it's better to apologize and keep him talking until he calms down.

Change your perspective. The above steps show how to not let your emotions control your behavior, but not how to change the emotions themselves. If you want to nip your emotions in the bud, change the way you see the world. If you learn how to be optimistic and laid back, you'll find that negative emotions make fewer appearances to be reckoned with.

Moreover...

• Learn to recognize and anticipate "triggers" that set you off.
• If you wish to live with a more "uplifting" attitude, a good idea is to stay away from tv or music that has a negative style to it (e.g really depressing songs), it's proven that being around a lot of music or movies that have a negative view on the world can actually change the chemical balances in your brain that can even change the way you see things or the way you act in a negative way.
• Watch for "all or nothing" thinking. Most of life is a gradient or gray scale, rather than a set of absolutes or extremes. Many situations and events may seem as if they are black/white, good/bad, yes/no; but reacting as if they are can easily lead to irrational and unhelpful attitudes, emotions, and behaviors.
• Some experiences like watching a film, hearing a sound or tasting a food (sensory input) can trigger or bring about good emotions. The more good ones you can recognize, pay attention to and be aware of, the easier it is to put your self in that kind of a recognizable mood. It's far easier to get out of an angry or sad state of mind when you can know what happy or joyful state of mind is like.

Beware:

It is important to control your emotions, but suppressing them is something different entirely. Suppressing your emotions can cause psychological disorders and depression.

How to Teach Kids About Money

 

As kids grow, they tend to become more thoughtful about money, and it's a process to teach them how to save more, shop wisely and earn money through small jobs. The current economic troubles provide a fitting time to school our kids on personal finance, according to Eric Tyson, author of Personal Finance for Dummies. If you're feeling guilty because you can't buy your child that video game system he desperately wants for Christmas, or you're asking him to choose between playing recreation basketball or taking karate lessons this winter, Eric Tyson has one word for you. Don't. In fact, he says, now is the perfect time to teach your kids some valuable financial lessons and learn that budgeting is how the world really works.

 

Steps

Expose your kids to the realities. "Kids are surprisingly aware of what's going on in the world," says Tyson. "And if they don't know that times are a little bit tough and Mom & Dad are having to watch their spending, it's time to tell them. Sheltering kids from financial realities does them no favors." A good grasp of personal finance is one of the most valuable life skills a person can have. And while previous generations may have been raised with the constant admonishment that "money doesn't grow on trees!" too many of today's parents neglect that lesson. It's time to change that—and the economic crisis we're in now provides a great incentive for doing so.

Tell kids the truth. Kids are perceptive. If you've been acting anxious and on edge lately, they've noticed. Rather than let them wonder why Mom and Dad are working so much lately or constantly talking about money, explain (on their level) what's going on in the family's financial world. This might mean explaining why vacations have to be cut back, why there will be fewer toys under the tree etc.

Explain to them how much things cost. Some parents are surprised to find out that their kids don't have a very good grasp on what things cost because they have been sheltering them from this always. A great hands-on way to open their eyes is to take them on a "money tour" around the house. For example, kids might not understand that hot water costs more than cold water, or that bumping up the heat results in higher power bills. This exercise will teach them how they can conserve and thus help the family save money. You can also pile up all of the bills for the month and have them look at the amount on each one. Show them what the family's cost of living is and again reiterate the areas where they can play a part in reducing the costs.

Realize that kids learn what they live. It may sound like common sense, but you—Mom and Dad—are your kids' most influential teachers. When you ring up a barge-load of credit card debt, take out exorbitant mortgages or car loans, and fail to save anything, that's what your kids come to see as normal. If you are modeling unhealthy financial habits, you can't realistically expect your kids to "do as I say, not as I do."

Deprogram them. Kids are constantly bombarded with information about expensive things, whether it's the fancy sports car they like, the wardrobe of their favorite athlete or actor or the many appeals to luxury in the 40,000 commercials that the American Academy of Pediatrics estimates the average American child sees each year. What they aren't bombarded with is knowledge on how to manage money effectively. And while schools are increasingly incorporating money issues into the existing curriculum, the broader concepts of personal financial management still aren't taught. Frightening though it may be, some schools rely on free "educational" materials from the likes of VISA and MasterCard!

Start an allowance. An allowance is a great teaching tool. You don't have to break child labor laws to find great ways to help your kids earn their allowance rather than just have it handed over to them. A well-implemented allowance program can mimic many money matters that adults face every day throughout their lives. From recognizing the need to earn the green stuff to learning how to responsibly and intelligently spend, save, and invest their allowance, children can gain a solid financial footing from a young age.

Start them saving and investing early. It's never too early to start saving, and the sooner you can instill the importance of saving money into your kids the better. After they start earning an allowance, have your kids save a significant portion (up to half) of their allowance money toward longer-term goals, such as college (just be careful about putting money in children's names as doing so can harm college financial aid awards). Tyson recommends that children reserve about one-third of their weekly take for savings. As they accumulate more significant savings over time, you can introduce the concept of investing.

Reduce their exposure to ads. The primary path to reduced exposure to ads is to cut down on TV time. When kids are in front of the tube, have them watch prerecorded material. You can direct the television viewing of younger children, in particular, toward videos and DVDs. And for older kids, if you use digital video recorders (DVRs), such as TIVO, you can easily zap ads. But when an ad does sneak under the radar and set the kids to begging, address it. Explain to your kids that there's never a good time for frivolous impulse spending—but it's especially harmful when money is tight.

Find entertaining ways to teach good money habits. You'll probably face an uphill battle when teaching kids about personal finance. That's why it's so important to find entertaining ways to instill good financial habits in them. For younger kids Tyson recommends age-appropriate books like The Berenstain Bears Get the Gimmies. For late-elementary-school-aged kids, Quest for the Pillars of Wealth by J.J. Pritchard is a chapter book that teaches the major personal finance concepts through an engaging adventure story. You could also get them a subscription to Zillions, a kids' magazine from the publishers of Consumer Reports, which covers money and buying topics. Consider playing the board games Monopoly and Life to teach more money skills as well.

Teach them how to shop wisely. Family shopping trips, whether for groceries or something else, are likely to be your kids' first encounter with spending. They'll see you make decisions based on what the family needs, maybe see the occasional coupon used, and will observe how you pay. These trips are a great time to teach them lessons about money and the value of product research and comparison shopping.

Introduce the right and wrong ways to use credit and debit cards. Those plastic cards in your wallet offer a convenient way to conduct purchases in stores, by phone, and over the Internet. Unfortunately, credit cards offer temptation for overspending and carrying debt from month to month. Teach your kids the difference between a credit and debit card, explaining that debit cards are connected to your checking account and thus prevent you from overspending as you can on a credit card. Make credit card usage the exception, not the rule.

Encourage older kids to get a job. An allowance doesn't have to be the only way for your kids to earn money. Your child's initial exposure to the work-for-pay world can start with something as simple as a lemonade stand. Depending on age, he or she might do yard work for neighbors or offer babysitting services. And the fact that we're in a recession makes it all the more appropriate for older kids to "help out" by getting a part-time job—especially to fund unnecessary purchases like DVDs or cool clothing.

Tips

More time comes out of less spending. You have to be more creative and more involved with one another when money flow slows or stops; and you have to team up to do things together a lot more. This is a positive and something to keep being grateful for.

Allowing children partial exposure to various ads (print or television) may more adequately prepare them for life in our consumer culture. When paired with adult or mentor coaching about the purpose of ads and ways to cope with the inherent disappointments of living on a budget this can prepare children for a lifetime of advertisement bombardment.

 

 

Things You'll Need

Time to sit down and talk

Budget

Savings account