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There are 4 components of finances: assets, liabilities, income and expenses. Everything in your financial world falls under these 4 categories. Each of these categories is further divided into accounts - each of which is just a way of tracking certain activities. For example, a 'checking account' is just an asset stored at the bank and a log of the deposits and withdrawals out of that asset.
Assets are things of value that you own. Things such as your house, a portfolio of stocks, a mortgage that you collect on, an IRA account are all assets. The value on your assets may rise or fall, but they are still assets. The best kind of assets is income-producing assets since these assets produce a regular income for you.
Liabilities are debts. Usually these are the result of somebody else giving you one of their assets with the expectation that you will give it back to them. For example, a mortgage that you pay on (your liability) was money that the lender had (their asset) and they gave it to you so that you could buy your house (your asset). The lender wants their asset back and they want some interest (their income, your expense) along with it
Income is value derived from something that you did (wages) or from one of your assets (rent or interest). Most income is in the form of money, but it could be in the form of credit. Credit is really an asset, so this kind of income came as an 'idea of money' that you deposited into an asset account.
Expenses are value that you expend. This value is usually in the form of money and comes from either an income account, an asset account or it adds to a liability account.
Imagine that you are standing in a room with 4 walls - each wall is full of little mailboxes. Each wall represents one of the 4 components and each mailbox is an account. When you open the mailbox called 'wage' on the Income wall and pull out your gross pay, you need to put some of the money into a mailbox called 'Taxes' on the Expense wall and the rest can go into a mailbox called 'Checking Account' on the Asset wall. Each check you write is pulling money out of the 'Checking Account' mailbox on the Asset wall and putting the money into some other mailbox on one of the 4 walls. I originally heard this metaphor from Mike Butler (www.MikeButlerSuccess.com)
My six-year-old picks up every coin he finds and puts it in a cup with color-crayon drawings of Sonic the Hedgehog around it. It's his "Game Stop Cup". He's saving his money for a video game for his Wii. I can't take much credit for this. He wanted a new video game and decided to be resourceful about it. So, when change accidentally falls out of my pockets, there he is to pick it up.
The five-year-old, on the other hand, lives in the moment. She taped her dollar bill to the wall so she could "watch it". Her logic amuses me. Her method of getting what she wants from the store is asking 25 times and wearing me down. We have some work to do.
The twelve-year-old has no problem saving. She'd much rather spend someone else's money, though. When she's forced to use her own money, she'll think twice about whether the item is worthy enough to buy.
I remember being in seventh grade when a teacher asked us how many of us had bank accounts. My first thought was, "What a stupid question. We're kids". Then, more than half of the class raised their hands. Since my late teens, when I was working and did open a checking account, I struggled with managing my finances. My parents were buried in financial trouble so I took to figuring out money management on my own. I was terrible at it.
In our country's current financial state, we need to find ourselves obligated to teaching our children the absolute importance of financial management. At all ages, there are opportunities for teaching lessons. A perfect lesson opportunity: My middle child, when he was a bit younger, wanted something that I told him I didn't have the money to get. He casually advised that we should go to the store and get the money from the person who gives it to us. He was referring to the cashier who hands us our change or cash back on debit purchases.
I then spent a few minutes explaining the purchase transaction process. Our kids do need to know what's going on. They don't need to be made aware of every household bill or be concerned if money's tight. They should, however, understand that leaving the lights on causes the electric bill to go up and that this can have consequences on your ability to buy them things; cause and effect.
Issuing an allowance is one of the best ways to teach our kids about financial management. Allowance can be based on good behavior at home and/or in school as well as on household chores. Create a chart, offering a visual aid of their progress. Help them set up a way to save their money.
For older kids and teens, open a student checking account. You usually have visibility into the account (I recommend ensuring the account you set up allows for that). Ensure your kids are properly taught about how to utilize their debit card and managing their spending to avoid fees.
A very important lesson to teach your teen is about credit card management. Credit card companies are infamous for granting credit to college students, employed or not. Many young adults are not equipped with financial know-how and spend like they have free money, creating financial disaster. By teaching them how to utilize a credit card, you're giving them the opportunity to build a strong credit profile for future use. The Visa Buxx card is a great tool for this lesson.
As a generation that typically loves to spend more than we can afford, we should be passing on the lesson that it's much better to live within your means. Remind our kids (and ourselves) of what's really important and deserving of our hard-earned money. We need the next generation to do a much better job than we have. Somehow, everything in our lives needs to be super-sized these days: food, cars, jewelry - not to mention the size of our debt. Where did we get that from? Our kids are watching us. We need to lead by example also.
Krissie Hudson aka The Debt Mommy is the founder of Marie-Daniel Consultation Services, a do-it-yourself debt settlement service. As a mother to three, she understands the challenges of raising a family in today's economy. She offers advice for families on her blog. Ms. Hudson utilizes her industry-related experience to advocate for consumers. A popular quote of hers is, "Stop letting financial institutions live their American dreams off of your hard-earned dollars".
With her company's concentration being on do-it-yourself debt settlement, Marie-Daniel Consultation Services offers personalized guidance to individuals interested in learning how to effectively settle debts with their creditors. Consultants offer an overall analysis of clients' financial situation, suggesting alternate routes that may be a better option.
When not working or researching, Ms. Hudson is spending time with her children, watching Law & Order or shopping at the nearest Wal-Mart.
An individual can ensure his financial well-being by adding to the stock of wealth that (s)he already possesses. For that to happen, a steady flow of income is necessary. But, how exactly can this income be utilized to earn further profits? One of the best ways to earn rich financial rewards is by investing money in the financial markets. However, the process is not as simple as it sounds. Financial markets, typically, require investors to take such decisions that would be profitable, over an extended period of time. The services of experts come in extremely useful at this juncture. A professional can help you avoid the potential pitfalls of money markets, and earn a handsome profit from your investments.
Finding an expert trading analyst is not a tough task either. One simply has to browse through a financial services business directories. Such directories would have the names and business descriptions of the top financial analysts in your locality. Potential investors can easily compare the services offered by multiple local finance firms, and hire the services of the firm whose services appear to be the most suitable.
The services offered by a finance analyst can also be segregated into different classes. Each of these classes cater to distinct and specific needs of investors. Certified financial planning, retirement planning, personal finance planning and estate planning are some of the major separate and specialized types of financial services that are available. Hence, individuals need to be absolutely certain of the type of financial help that they require. The services of finance firms come with a price tag, and the correct trading analyst should be hired, so that the benefits obtained are worth the charged fee amounts.
It is highly advisable that investors should consult analysts before taking any major investment decision. These finance experts are highly qualified in these fields, and as such, are at a much better position to judge the potentialities of an investment option, than their clients. Hence, if you have made up your mind to invest your income in the financial markets, consult a financial services directory to locate an expert financial analyst near you. Once you hire the services of a professional, the chances of actually attaining your financial targets goes up manifold, while potential losses can be averted as well.
Are you looking for a financial professional, but not sure how to choose one? If you don't have the time to conduct thorough research about financial planners fill out a short form and let our advisors contact you. Our experienced consultants will send you the names of advisors who are qualified and willing to help.
Article Source: http://EzineArticles.com/?expert=Sambit_Sahoo
If you are tired of clipping and organizing coupons from the Sunday newspaper supplements, or you do not seem to be able to keep track of the coupons sent to you in the mail, here are four news ways that your can get coupons, almost any time you want.
1. Online coupons.
Online coupons are all over the place. They are in the form of coupon codes, which you just insert into a retailer's purchase form and get the discount immediately. Or free printable coupons that you download and take with you to the advertiser to redeem for their value. Both are great ways to get coupons and are available 224 hours a day, 7 days a week. All you do is type in your address bar or Google if you like, the type of coupon you are looking for and up will come a number of options.
If you just type in the word coupon or if you are from Chicago like I am, type in the words " Chicago Coupons", and up will come various coupon sites that you can take advantage of.
These nice thing about online coupons is that the places where you find them are always updating their offers, so the content is fresh, most offers are available, the coupons a free, and almost all coupons have bar codes and tracking devices, so you do not have to worry anymore about their authenticity.
2. Mobile coupons.
There is a new service offered now, where coupon offers can be texted to your cell phone. You just bring your cell phone into the store or restaurant, so them the offer on your cell phone screen and redeem it. This is a very easy service to use. All you have to do is subscribe with you name, email address, telephone provider service, and telephone number. This service is currently free and the only thing you will have to pay for is data usage charges on your cell phone. The deals and codes you may receive are national or local. You can get deals on everything from fast food hamburgers to fill up your stomach to cheaper gas to fill up your car.
3. Loaded Reward Cards.
A relatively new technology makes it possible for retailers to load rewards and monetary discounts onto a plastic card that looks just like a gift card. It has the company's logo and usually shows the monetary award right on the face of the card. Grocery stores also have cards where you can load food and beverage discounts right on the card and use them at the checkout counter.
4. Coupon Kiosks.
Now customers can take their reward card and print out coupons right in th store at in-store coupon kiosks. The coupons are based on a customer's past spending habits, how often he buys, and how much he spends. At certain stores, customers can look up coupon codes on interactive coupon kiosks and send them via text message to their cell phone. This employs the technology in item 2 above.
The retailers are finally understanding that coupons help create loyal customers and are smart additions to a professional marketing campaign. As time goes on, it is going to be easier and easier to get coupons either online, or in the stores. It appears that the days of people getting the Sunday newspaper and clipping away are numbered. It will always be an option for people who have made it a hobby, but for the majority the new ways of getting coupons will flourish.
Joel Helfer is an online advertising expert. He is a creative teacher, who shows you how to create compelling online and offline offers. He has 40 years business experience and has been involved in several successful businesses. He can be reached at helfer217@aol.com. Search his website at http://www.rewardchicago.com/
There are plenty of adverts out there promising us FREE CREDIT REPORTS. It bugs me - because the way I see it, Free Credit Reports don't seem to exist. If anything, I believe it could be viewed as a make money scam employed by hardnosed Credit Report companies.
Firstly, we fall for their seductive but despised pop ups, which obviously must cost them a fortune as they appear everywhere. Following that, when we have completed our personal details, we then have to provide them with our banking information before they part with any information in return.
These companies claim that the information is to verify our identity, but I am questioning whether it is just a means of introducing recurring billing? If You Google the definition of Recurring Billing it says ...Transactions for which a cardholder grants permission to the merchant to periodically charge his account number for recurring goods or services...
As so many individuals forget to cancel their subscription, we might not realise that our credit cards will start to have been charged, normally on a monthly basis, but in some cases twice per month. I will expand on this in my next contribution. Therefore, it can take quite a while before we realise we have been charged for this service, and by then, it is too late. What a great way for these Free Credit Report companies to generate income out of our forgetfulness. Absolutely dreadful!
In these troubled times of financial insecurity, we are more open to so called free offers, but if there was more competition out there, and tighter legislation was introduced, we may all benefit from a fairer deal.
Now that I have got this off my chest, I would caution that if companies are stating that their service is FREE, then, unfortunately, it probably is not, as there will be a catch involved. These companies are here to protect us and our finances, and are there to ensure we are not caught out by Credit Card Fraud, Identity Theft, Cheque Fraud, or any other type of Internet Fraud. However, these sort of services can be seen by some as a SCAM in itself!
So not only are we potentially paying for this Free Service, but we have to offer them our credit card details as well! I say we should not have to part with our credit card details, immediately as this service is supposed to be FREE. Examples of their typical Terms and Conditions can read...after your 10-day FREE trial period it's just £24.95 per month. Remember, you can call us within the first 10 days to cancel, and you will not be charged the £24.95. To ensure continuous service, at the end of your trial period your membership will be automatically charged each month at the then-current membership fee...
As well as the potential of recurring billing, we also have to experience their poor levels of service and occasional monumental mistakes. These mistakes can have a massive impact on our future financial ratings. I will expand on this in my next publication, but until then, and above all, please remember to cancel your subscription, or YOU WILL BE CHARGED!
Dr Caroline Coats became a victim of an internet online cv scam . She is now trying to make a difference and raise public awareness of the true levels of internet fraud. The site publishes victims stories and loads more........ Visit http://www.cyberfraud.org.uk/ Email the author at info@cyberfraud.org.uk
If you are a single parent in these tough economic times, the financial climate can be a little stressful. Finding ways to solve your financial problems due to immediate needs is not easy to solve due to all the competition in the workplace. The type of jobs that a single parent would take on a part time basis to get through are becoming more and more scarce due to job competition from others seeking employment. Keeping up with the bills is harder if you also have late payments which can add additional costs that were not there before.
It is harder to pay for the immediate needs of children if there are insufficient funds due to today's economic climate. Pooling resources with other single parents is one way that can be helpful. Babysitting services can be shared if one is working and the other is at home. This will help in the long run if there can be a shared sense of responsibility that can be worked out between the two single parents. I have two friends now who do this on a regular basis. A sense of financial stability is vital for children to grow up with a sense of security.
Sometimes, two single parents get together and find a real bond between each other and end up getting married. I have a friend that I went to school with that met a lady with a little girl. They worked together and shared responsibility and decided to get married because they had so much in common. They are still married today. This is one of those great stories that you never hear about because of all the negative feedback we are all receiving from the news media.
Debt management is tough when you are a single parent. Credit cards have made it so easy to get deep in debt and now we are all paying for this mistake. I blame the Credit Card Companies for all their advertising to encourage people to spend non-existent money. Remember that Credit Card commercial that everyone was charging their purchase in the line and one person was using cash and the music changed.. The Credit Card companies commercial implied that using their card was fast and smart but using cash was slow and stupid. Do you see anymore of those commercials today, the answer is no because the Credit Card companies are losing money due to defaults of creditors. Remember Cash is King and will always be.
In conclusion, the first step on the road to financial stability for a single parent is debt management. Working together with other single parents can help get you thru times like this and give your children a sense of financial security. Occasionally, two single parents really hit it off, get married and have a fairy tale ending. So there is light at the end of the tunnel for some of us. Debt management takes prudence and discipline for success to help end the quandary of debt mismanagement. Last of all, Cash is King and will always be.
To learn more about your money and credit tips, visit our website at http://www.mortgage230.com or http://www.debt23.com
Ron Lovell is available as a professional speaker to help educate your community or group function on the effects of Financial Stability.
is a reliable source of information on free government grants. Once you register yourself, you can apply online. A word of caution to those internet savvy user, do make sure that the federal government websites are updated.
A comprehensive list of federal grants is published in the Catalog of Federal Domestic Assistance (CFDA). The CFDA offers the complete listing of the state and local governments. You can lay hands on a copy of the CFDA listing at most libraries. The other easy source is the online site of the CFDA.
Grant Resources And Information
There are also many books, manuals and software CDs available in the market that give information related to free grants. It is advised that people exercise caution while resorting to such resources. One way to ensure genuineness of the information is look for the background of the author(s) and/or the company that present these resources. Apart from the CFDA, a good source of information is the federal government's registry on grant funds. Signing up for newsletters from these agencies is also a good way to keep you updated on grants and grant related information. With the new government's housing rescue plan, the mortgage rates are expected to go down. The rescue plans' free grants will also help those looking for housing grants. You could make free grant applications right away to avail the benefits. Contact the local housing authority to get more details on the options, eligibility and privileges that are currently offered for free grants.
Government grants are used for many reasons and by many different people. Small business owners, college students, people in debt, and many more people like you need government grants. You may also need tips on writing free government grant applications. For even more help and information read about how government grants for small businesses is the perfect way to get off the ground,
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