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5 Fun Lessons to Help Make Your Kids Financially Independent

5  Fun Lessons to Help Make Your Kids Financially Independent

Formal education does a great job of teaching children how to read, write, do math, and determine the age of the earth using mass spectrometry, but there’s one lesson that still falls on the shoulders of parents to teach, and that’s financial responsibility. Until there is a classroom devoted to budgets, savings accounts, and investments, parents will need to continue to think of creative ways to impart their monetary wisdom. Use these five fun tricks to help make the lessons stick and help make your kids financially independent.

1. Piggy Bank

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    A piggy bank should be a fixture in every child’s room. They’re as important as a night light or pajamas with feet built into them. Every chance you get you should drop some change inside, shake it up, and act like it is the greatest thing in the world. Your child may not fully appreciate what is going on at first but eventually they will develop a sense of ownership over their money and create positive memories and attitudes around saving.

    2. Lemonade Stand

    Steven Depolo lemon
      Steven Depolo via flickr

      Tried, tested, and true, the lemonade stand is not only a classic memory for every child, it teaches important lessons about money. By dishing out lemonade to passersby (with adult supervision, obviously) a child can quickly learn basic lessons about supply, demand, and managing income and expenses. Fresh lemonade may taste better and draw a bigger crowd, but nothing multiplies your margins like lemon crystals from a package. Do this right and lend a hand where necessary and you will have a little entrepreneur on your hands in no time.

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      3. Allowance

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        Starting from around the age of five you can bring an allowance into the equation. Sit your kids down and have a conversation about responsibility and pitching in around the house in exchange for a little money at the end of the week. An allowance should be your child’s first experience with steady, reliable income and it opens the door to many more lessons about the different uses of money, that things are earned and not an entitlement, and the idea of money as a finite resource.

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        4. Saving, Spending, Sharing Jars

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          A great way to drive home the finite nature of money is to expand the notion of the piggy bank to create separate saving, spending, and sharing money jars. Again, this works best with an older child who is getting an allowance. The way it works is each time your child gets some money, they are responsible for dividing it into each of the three jars. The spending jar is for things like candy bars and water guns and other small expenses that pop up during the week; the sharing jar is for buying birthday gifts and nice surprises for friends and family; and the saving jar is off limits for everything but larger, longer-term expenses like a new Lego set or video game. The saving jar transitions nicely into the eventual savings account you should open with your child at the bank.

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          5. Offer and Encourage Ways to Earn More Money

          chores

            Finally, if you child has their eye on some extravagant item like roller skates or a new bike but is getting frustrated at saving towards it with a $5 or $10 weekly allowance, give them other opportunities to increase their income. Put a price on household jobs that aren’t part of their regular chores. Clean the attic and make an extra $10. Mow the lawn and that is $5 in your pocket. Even help your kids offer their services to your trusted friends around the neighborhood. This will help instill a strong work ethic and a mental connection between effort and reward.

            Featured photo credit: Steven Depolo via flickr.com

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            Published on November 8, 2018

            How to Answer the Tough Question: What are Your Salary Requirements?

            How to Answer the Tough Question: What are Your Salary Requirements?

            After a few months of hard work and dozens of phone calls later, you finally land a job opportunity.

            But then, you’re asked about your salary requirements and your mind goes blank. So, you offer a lower salary believing this will increase your odds at getting hired.

            Unfortunately, this is the wrong approach.

            Your salary requirements can make or break your odds at getting hired. But only if you’re not prepared.

            Ask for a salary too high with no room for negotiation and your potential employer will not be able to afford you. Aim too low and employers will perceive as you offering low value. The trick is to aim as high as possible while keeping both parties feel happy.

            Of course, you can’t command a high price without bringing value.

            The good news is that learning how to be a high-value employee is possible. You have to work on the right tasks to grow in the right areas. Here are a few tactics to negotiate your salary requirements with confidence.

            1. Hack time to accomplish more than most

            Do you want to get paid well for your hard work? Of course you do. I hate to break it to you, but so do most people.

            With so much competition, this won’t be an easy task to achieve. That’s why you need to become a pro at time management.

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            Do you know how much free time you have? Not the free time during your lunch break or after you’ve finished working at your day job. Rather, the free time when you’re looking at your phone or watching your favorite TV show.

            Data from 2017 shows that Americans spend roughly 3 hours watching TV. This is time poorly spent if you’re not happy with your current lifestyle. Instead, focus on working on your goals whenever you have free time.

            For example, if your commute to/from work is 1 hour, listen to an educational Podcast. If your lunch break is 30 minutes, read for 10 to 15 minutes. And if you have a busy life with only 30–60 minutes to spare after work, use this time to work on your personal goals.

            Create a morning routine that will set you up for success every day. Start waking up 1 to 2 hours earlier to have more time to work on your most important tasks. Use tools like ATracker to break down which activities you’re spending the most time in.

            It won’t be easy to analyze your entire day, so set boundaries. For example, if you have 4 hours of free time each day, spend at least 2 of these hours working on important tasks.

            2. Set your own boundaries

            Having a successful career isn’t always about the money. According to Gallup, about 70% of employees aren’t satisfied with their current jobs.[1]

            Earning more money isn’t a bad thing, but choosing a higher salary over the traits that are the most important to you is. For example, if you enjoy spending time with your family, reject job offers requiring a lot of travel.

            Here are some important traits to consider:

            • Work and life balance – The last thing you’d want is a job that forces you to work 60+ hours each week. Unless this is the type of environment you’d want. Understand how your potential employer emphasizes work/life balance.
            • Self-development opportunities – Having the option to grow within your company is important. Once you learn how to do your tasks well, you’ll start becoming less engaged. Choose a company that encourages employee growth.
            • Company culture – The stereotypical cubicle job where one feels miserable doesn’t have to be your fate. Not all companies are equal in culture. Take, for example, Google, who invests heavily in keeping their employees happy.[2]

            These are some of the most important traits to look for in a company, but there are others. Make it your mission to rank which traits are important to you. This way you’ll stop applying to the wrong companies and stay focused on what matters to you more.

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            3. Continuously invest in yourself

            Investing in yourself is the best investment you can make. Cliche I know, but true nonetheless.

            You’ll grow as a person and gain confidence with the value you’ll be able to bring to others. Investing in yourself doesn’t have to be expensive. For example, you can read books to expand your knowledge in different fields.

            Don’t get stuck into the habit of reading without a purpose. Instead, choose books that will help you expand in a field you’re looking to grow. At the same time, don’t limit yourself to reading books in one subject–create a healthy balance.

            Podcasts are also a great medium to learn new subjects from experts in different fields. The best part is they’re free and you can consume them on your commute to/from work.

            Paid education makes sense if you have little to no debt. If you decide to go back to school, be sure to apply for scholarships and grants to have the least amount of debt. Regardless of which route you take to make it a habit to grow every day.

            It won’t be easy, but this will work to your advantage. Most people won’t spend most of their free time investing in themselves. This will allow you to grow faster than most, and stand out from your competition.

            4. Document the value you bring

            Resumes are a common way companies filter employees through the hiring process. Here’s the big secret: It’s not the only way you can showcase your skills.

            To request for a higher salary than most, you have to do what most are unwilling to do. Since you’re already investing in yourself, make it a habit to showcase your skills online.

            A great way to do this is to create your own website. Pick your first and last name as your domain name. If this domain is already taken, get creative and choose one that makes sense.

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            Here are some ideas:

            • joesmith.com
            • joeasmith.com
            • joesmithprojects.com

            Nowadays, building a website is easy. Once you have your website setup, begin producing content. For example, if you a developer you can post the applications you’re building.

            During your interviews, you’ll have an online reference to showcase your accomplishments. You can use your accomplishments to justify your salary requirements. Since most people don’t do this, you’ll have a higher chance of employers accepting your offer

            5. Hide your salary requirements

            Avoid giving you salary requirements early in the interview process.

            But if you get asked early, deflect this question in a non-defensive manner. Explain to the employer that you’d like to understand your role better first. They’ll most likely agree with you; but if they don’t, give them a range.

            The truth is great employers are more concerned about your skills and the value you bring to the company. They understand that a great employee is an investment, able to earn them more than their salary.

            Remember that a job interview isn’t only for the employer, it’s also for you. If the employer is more interested in your salary requirements, this may not be a good sign. Use this question to gauge if the company you’re interviewing is worth working for.

            6. Do just enough research

            Research average salary compensation in your industry, then wing it.

            Use tools like Glassdoor to research the average salary compensation for your industry. Then leverage LinkedIn’s company data that’s provided with its Pro membership. You can view a company’s employee growth and the total number of job openings.

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            Use this information to make informed decisions when deciding on your salary requirements. But don’t limit yourself to the average salary range. Companies will usually pay you more for the value you have.

            Big companies will often pay more than smaller ones.[3] Whatever your desired salary amount is, always ask for a higher amount. Employers will often reject your initial offer. In fact, offer a salary range that’ll give you and your employer enough room to negotiate.

            7. Get compensated by your value

            Asking for the salary you deserve is an art. On one end, you have to constantly invest in yourself to offer massive value. But this isn’t enough. You also have to become a great negotiator.

            Imagine requesting a high salary and because you bring a lot of value, employers are willing to pay you this. Wouldn’t this be amazing?

            Most settle for average because they’re not confident with what they have to offer. Most don’t invest in themselves because they’re not dedicated enough. But not you.

            You know you deserve to get paid well, and you’re willing to put in the work. Yet, you won’t sacrifice your most important values over a higher salary.

            The bottom line

            You’ve got what it takes to succeed in your career. Invest in yourself, learn how to negotiate, and do research. The next time you’re asked about your salary requirements, you won’t fumble.

            You’ll showcase your skills with confidence and get the salary you deserve. What’s holding you back now?

            Featured photo credit: LinkedIn Sales Navigator via unsplash.com

            Reference

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