A nice article on some useful advice from Warren Buffet on investing and saving.
With an estimated fortune of $62 billion, Warren Buffett is the richest man in the entire world. In 1962, when he began buying stock in Berkshire Hathaway, a share cost $7.50. Today, Warren Buffett, 78, is Berkshire’s chairman and CEO, and one share of the company’s class A stock worth close to $119,000. He credits his astonishing success to several key strategies, which he has shared with writer Alice Schroeder. She spend hundreds of hours interviewing the Sage of Omaha for the new authorized biography The Snowball. Here are some of Warren Buffett’s money-making secrets — and how they could work for you.
Some Cheap School Holiday Activity Ideas
Do your children appeal to you for expensive holiday activities that stretch your budget too far?
Of course, you don’t want your child to be bored during holiday periods. You want them to enjoy their school holiday, but at the same time, you don’t want their holiday activities to break the bank.
You probably already know the kinds of activities that they like, but just to be sure, sit down with them to discuss how to approach the coming holidays. Find out what they’d like to do, and see if you can work around that.
This process will likely take several meetings. In your first discussion, explain to your child how much you’re able to budget for holiday activities, and ask them to make a list before your next meeting. Make it clear that the list should include activities that they would like but that fall within the budget limitations.
Hopefully, you can end up with a list of activities that your child will enjoy and benefit from but that will fit within your budget. To motivate them to choose wisely, you could promise that any money from your proposed budget that is not used will be put into savings for them.
You can prepare a list in advance and give it to your child to serve as a jumping off point. Below are some possibilities for your list.
Ways to Make Money as a Kid at Home
Teaching kids about money should be a fun activity and worked into their day-to-day activities. Not something that it is forced. Like reading and writing, learning to manage money, counting, adding etc, are all basic skills your little one should grow up practising.
Good news is that whilst learning about money your child is also practising their maths skills. Working out how much something costs, how much change they are owed or determining what their savings amount will be in 6 months, all involves maths.
There are many websites that have free online games that help kids learn about money and maths at the same time. Some have interactive or online money games and some have money worksheets for kids. Some of them are:
For other money games and activities for kids, visit our Money Games section.
You know how important it is to teach your child to save money. You know that you need to start when they are young so that they develop a good attitude toward money that will stay with them throughout their life.
What is the right age to start? How can you incorporate education about balancing spending with saving money into your child’s daily life without boring them to tears? How can they understand the concept of compound interest at an early age without reading a school textbook?
It’s actually easier than you think as long as you turn it into fun.
Start Young and Be Consistent
If your child wants a particular toy, start a savings project for them. Get a decorative, colourful savings jar. Have your child draw a picture of the toy he or she wants or go through magazines with them to find a picture of the toy. Paste the drawing or picture on the outside of the jar, but make sure the jar is transparent so that your child can see the money accumulating inside.
If your child gets pocket money, discuss with them how much of the pocket money they want to put into the jar each week. Explain to them that you will add ‘interest’ to the savings jar on a regular basis.
Once a week, sit down with your child at the table. Take the money out and help your child count it. Then explain that you are adding a bonus, a certain amount based on the amount that is in the jar, and that you will do that every week.
Each subsequent week, make it clear that you put more into the jar because you are paying them interest on both the money that they have put in and the money you previously added as interest. Keep a sheet with the jar that delineates how the money is adding up. This sheet will go far to help them understand the time value of money.
At first, they won’t understand the concept of ‘interest,’ but eventually they’ll get the idea of compound interest and may want to delay gratification by saving more of their pocket money each week so that they will be able to buy the toy sooner.
Before you know it, your child will understand that they can put away money now for more in the future, and you will have helped them develop a healthy attitude toward finances.
Your teen’s first job might be bagging groceries at your local supermarket, or it might be life-guarding at the local swimming pool. It doesn’t matter what his first job turns out to be, there are certain things that he should know before working at his first job.
Your teen probably already has a bank account. If he doesn’t, help him to open a savings account and to develop a budget that will include regular deposits into that savings account.
If his budget doesn’t include regular savings deposits every single pay day, he might give into temptation to purchase all the goodies that he never had enough money for in the past. This point in his life could pave the way for continued good money managing or it could erode his previous good financial habits if he doesn’t proceed carefully.
Your teenager probably will already have a rudimentary knowledge about tax before he gets his first job. He will have overheard you talking, or perhaps complaining, about how your income is taxed.
He will probably not actually understand the tax system, and you will need to explain to him how he will be taxed. The first thing to do is to help him get a Tax File Number, which he’ll need when he fills out the tax form on his first day at work.
Explain to him that if he expects to earn less than $18,200 in a year, he will not have to pay tax and should claim the tax-free option on the tax declaration form at work. Otherwise, his employer will have to withhold up to 50% of his income in tax.
If he works for more than one employer, then he should claim the tax-free threshold at the job that earns him more.
Teach Him About Superannuation
Even though he’s a teen, he needs to learn about superannuation. If he is under 18, works 30 hours a week, and earns over $450 gross in a month, he is eligible to have his employer make superannuation contributions.
Go over the different kinds of superannuation accounts so that he picks the one that is right for him at this point in his life and, hopefully, in the future as well.
Daily Spending Habits
Without being overbearing, talk to your teen about his daily spending habits and encourage him to continue the good financial habits that you instilled in him as he was growing up. Remind him to track his budget continuously and keep on top of his daily spending so that it doesn’t invalidate the budget that he put together so carefully.
On the budgeting theme, a good video on how kids can create a budget and track their spending - more for secondary children.