Family Financial Education – 5 Vital Steps

Many a time, we tend to blame the government, society, schools and teachers for failing to offer the most appropriate education for our families. Little do we know that education begins at family level. It is at the family level that many hours should be dedicated to teaching good financial habits and ensure that they are understood and practiced.
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Logically, it is much easier to face each member of the family, know their own fears and incorporate them in the family’s financial education curriculum. The best thing about this is that if practiced for more than 21 days, it can become a habit, a very good habit. However, for this, we must have the support of our partners, or persons with whom we live together.

Ideas for financial education in a family

In a family, there must be a leading figure. This is, by all means, the father of the family. He should put the points and rules on the table. Today, we give you five key steps that you can incorporate in your financial education from today within your family.

- Balance of expenses and income, and family budget: Make a thorough study of monthly income and expenses in the family. Once done, agree on a day to hold a gathering of financial education at home. Surely, the first reaction will be few smiles, but when they see that you are serious, they will undertake to commit themselves to it and render it a necessary issue. You must have the commitment of all members of the family. It is important that on that day, no one dodges the session under any pretext or excuse. Gazette the last Saturday of each month for family financial education.

- Family Financial Education meeting: On the day of the meeting of financial education, present the most detailed statements of accounts. What is spent on supplies, fuel, taxes, whims, meals, insurance, mortgages, loans, gyms, etc … in an excel sheet. Make your family to know the real costs of your family finances. Long ago, it was a taboo to talk about money at home with the kids. Today it is necessary and should be mandatory. We can not wait to talk about money and financial education to our children when they are 20 years old.

- Plan cost adjustments: Allow family members to make their contributions on how costs can be adjusted. Each member of the family should have a turn to speak and say what they can bring to reduce expenditure and to increase revenue. Develop a monthly budget for the next 30 days, provide more commitment, and certainly ensure more involvement by the whole family. Try to make it a game. Everything should be duly noted, and after the meeting of financial education, everyone should have a copy of the budget.

- Track the progress, and issue reminders every time: It is very important that during the first month, on top of reminding family members of their daily commitments, they should be encouraged to make such practices habits. Remember that the habits ingrained since childhood, cost us a lot of change.

- Monthly meetings of family financial education: At the second meeting of financial education after spending in the first month, you must review the state of past costs, and make a comparison with the current. There will be many expenses that are bimonthly, but concerning fuels, restaurants, whims, bars, parking meters, bank charges, snuff, hours gardener, hours of cleaning assistant, etc … can be measured daily, so you’ll see if the column of expense has worked satisfactorily.

Reducing Debt – How To Plan A Personal Debt Reduction

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Program

Planning is not a long winded process. It is not going to take up too much of your time and the small amount that it does require is far from wasted. Planning to get rid of your debt is one of the most crucial things you can ever do in your life. Here’s how:

1. Basics – Write down all your financial statements, debts, balances, income and more. This may be a briefly described step compared to the following but it’s important because your plan is going to center around this information.

2. Your Debt Reduction Program – Make a rough chart or list with these topics in the same order: ‘Monthly income after taxes’, ‘Amount of debt to pay’, ‘My monthly expenditure’, ‘Remainder’. After you fill in these spaces based on the information you collected during the first step, start by subtracting your debt-amount and monthly expenses from your income (after taxes). Highlight the debts that have high interest rates and/or high balance and use the remaining amount to pay it off as and when you get the cash together every month based on this chart/program/plan. Make sure you focus only that debt until it’s file is closed. Move on to the next highest and so on and so forth. As strange as it may seem, this idea has proven to be the fastest way to get rid of debt.

3. The Increase Chart – Get another small chart going with months for headings in various slots. Now increase the amount you’re paying to close your biggest debts and perform this increase every month. Make small and reasonable increments and keep track of it using this chart. It’s essential to be perfect when it comes to numbers and these charts and the program above will help you stay aware of what’s going where and when. Do not underestimate the power of these ideas because after several months have gone and you’re well into your payment completions you will be glad you made these chart systems to help you stay ahead.

4. The Talk – Never be ashamed when it comes to money. You took and now you’re going to give back, it’s quite black and white when you think about it. This entire plan is designed to help you alleviate debt not accrue it, so sacrifice where you can (whether it’s eating out, cable television, unwanted gift purchases and so on) and do not have more credit card charges added to your account;keep them under 35% of your credit limit. This last point or idea in your personal debt reduction program is for you to call or meet your debtors and lenders and ask them nicely if they can improve your payment terms. There’s no guarantee this will work but there is a good chance that they will lower your interest rates or they might chat with their customer service department to get you a reduced debt settlement. Also, shift your credit card debts to new accounts that have lower interest rates. Imagine what 6-12 months with 0% introductory rates can do for you.