Starting a Small Business: Tips for Parents with Disabilities
Starting a small business comes with a lot to consider, from figuring out whether you want a storefront or a solely online company to making sure you have the motivation and energy to put into running everything yourself. When you’re also a parent who is living with a disability, it’s important to also think about the best ways you can make life easier for yourself during the process of getting things off the ground. For some entrepreneurs, working from home is much easier than going into an office every day, but this can present its own set of challenges, especially if you’re a stay-at-home parent.
Fortunately, there are many things you can do to get the ball rolling smoothly. First, think about the details: a brick-and-mortar store can bring a lot of benefits, such as bringing in lots of foot traffic, but it can also come with a lot more issues and responsibilities than an online business. Will you keep your stock on-site or dropship? Once you’ve figured out the details, you can move on to the big things, such as securing the necessary financing.
Keep reading for some helpful tips on how to start a successful small business when you’re a parent with a disability.
Understand What It Takes
Starting your own business may sound like a dream come true, but it’s much harder in many ways than finding a job with an established company. You need to be self-motivated, a problem-solver who can minimize distractions at home and get things done even when there’s no one giving you direction. Being able to give your all even when you’re sick or have lots of things going on at home will help you find success as an entrepreneur.
Consider How You’ll Support Yourself
Financing a small business is no small feat; there are many things to consider, from startup costs to maintaining your home and lifestyle until you begin making a profit. Often, new businesses don’t turn a profit for at least a year, although those run exclusively online can save a lot of money by not having a storefront. You might think about a loan or grant for disabled business owners to boost your funds, but make sure you find the right one for your needs. Look online to find out more about the resources available to you.
Think About Your Family
As a parent, you want to ensure that your family is well taken care of while you’re getting your dream up and running. This might mean securing daycare for your children if you’ve been a stay-at-home parent in the past, which can be a big change for everyone. Sit down with your family members and talk about your goals, and plan for the future together. Allowing your children to be involved in the preparation process will help them feel a little bit in control.
Take Care of Yourself
Starting a business can be a dream come true, but it’s also a lot of work, and it can be very stressful even if you’re organized. This is especially true when you’re living with a disability. Practicing self-care can help you reduce stress and anxiety when things become overwhelming, so take time out for yourself when you find things are getting busy. Ask for help when you need it. Get plenty of exercise and eat right, even on busy days.
Starting a plan for your future can be scary, but if you keep in mind that it’s a big step in the right direction when it comes to your goals, you’ll be able to stay motivated no matter how difficult things get. Start with some prep work and do some research online before you make any decisions. As a disabled business owner, juggling parenting and your dreams might sound daunting, but it doesn’t have to stop you from achieving your goals.
Author of this article is Ashley Taylor ashley@disabledparents.org
Splitting Shared Assets when Divorcing
Divorce proceedings can be extremely stressful and traumatic for everyone involved, even more so when shared assets need to be split. When tying the knot, the last thing couples anticipate is divorce and as a result, few actually plan what would happen to their shared assets should they get divorced.
Over the years, you and your partner will have invested together, saved together and perhaps opened joint bank accounts, and in order to make financial settlements fair, there are a number of factors that have to be taken into consideration before splitting your assets.
Before we continue, it is important to note that how assets are split between a couple will be determined by the relationship. Simply put, the rights of a cohabiting couple will differ from those of a married couple, so bare this in mind.
Step 1:
The first thing you must establish is who legally owns what assets. If you’re in a cohabiting relationship then any investments or savings in your name will belong to you and your partner will not have access to these assets. Likewise, savings or investments made in your ex-partners name will be theirs and you will not be granted access.
However, there are exceptions to the rule. You may be entitled to beneficial interest if you have made contributions towards something in your ex-partners name, such as investing your own money into one of their projects. If this is the case, then you should seek legal advice.
On the flip side, investments or savings made throughout the duration of the marriage will be taken into consideration and divided as part of a financial settlement. Whilst assets amassed prior to the marriage aren’t typically subject to financial settlements throughout divorce proceedings, there is still a chance that your assets are at risk and you should seek legal advice to make sure your savings and investments are protected.
Step 2:
Next, it is time to find out what your savings are really worth in the eyes of the law. If you save money into a savings account such as a cash ISA or cash deposit, it should be pretty easy to get a rough idea of how much your savings are worth as you should be receiving regular financial statements.
However if you have invested in the stock market, or own shares and investment bonds, then it may not be as straightforward when it comes to determining the worth of your assets. This is solely because the value of your investments will differ from week to week, even day to day especially in a volatile and quick-changing market. You should talk to a financial adviser about finding out the value of invested assets tied up in the stock market.
Step 3:
It can be difficult to make sense of the whole process when splitting assets and couples often aren’t aware of how to split their savings and investments. Generally, it depends on where your savings are kept. Cash ISA, shares, investment property or savings accounts – there are a number of ways in which your money can be invested and each will differ when it comes to paying out financial settlements.
Cash ISAs
Cash ISAs can only be held in one individual name and therefore money cannot be transferred from one party to another. If the court has demanded you pay a financial settlement to your ex-partner you must withdraw the money from the account.
Shares
You have a bit more flexibility when it comes to shares as there are a number of different options in which you can pay off a financial settlement. Simply hand over control of the shares, sell the shares or give the value of the shares once sold to another party – it is your choice.
It’s easy to transfer shares, just fill in a J30 form which you can get from the company you initially brought the shares from. Alternativley, if you decide to sell your shares you will need to use the same service you used when buying those shares.
Investment property
If either you or your partner owns a property, then that asset is legally yours/theirs and the other party will have no claim to it – unless contributions have been made. In that case, you will both need to come to an agreement as to how the appropriate party will be paid back.
If you jointly own the property, then you may choose to sell your share to your ex-partner, or buy them out.
Savings accounts
If you plan to transfer money to your ex-partner as part of a financial settlement from a fixed-rate account, then you must first notify your bank so that you do not lose interest. If you are transferring from a normal savings account then you don’t have to give notice.
You should now be fully are of all your legal responsibilities and the claims you can make when it comes to splitting both shared and individual assets when divorcing. We understand how distressing divorce proceedings can be and that is why we have put together this comprehensive guide so that the process can be as amicable, straightforward and stress-free as possible for both you and your ex-partner.
Kerry Smith is the Head of Family Law at K J Smith Solicitors, specialist family law solicitors in Reading that deal with a wide range of issues, including divorce, domestic violence, civil partnerships, and prenuptial agreements. Kerry has over 15 years experience in family law and is recommended by the Legal 500 guide to law firms in the UK.
5 Steps Parents Can Take to Improve Their Family’s Financial Health
Raising a family is expensive. If you have kids or are expecting your first, that’s not news to you. Some days it feels impossible to afford the bare necessities of food, clothing and a roof over your head. However, as a parent, you also need to think about your family’s overall financial health.
If you haven’t given serious thought to financial planning, now is the time to start. The sooner you get a handle on your finances and start saving for the future, the more financially secure your family will be. Here’s where to start.
1. Assess Your Income
Does your current income allow you to live comfortably and achieve your financial goals? If not, increasing your income should be at the center of your financial plan. While you can always cut expenses to save money, a higher income is the best long-term solution to financial security. Start thinking about ways you can earn a raise, find a higher-paying position, or pivot your career to increase your income.
2. Examine Your Debt
Most families have some debt (about 80 percent, according to USA Today). That’s not necessarily a bad thing, but if your debt is preventing you from achieving other financial goals, you’re using credit cards to spend money you don’t have, or you’re struggling to make headway due to high interest rates, you need to take action about your debt.
List all your debts including outstanding balances, interest rates and minimum monthly payments. Putting it all out in front of you allows you to assess the state of your debt and devise a repayment plan that lets you get ahead. If you find it difficult to keep track of all your accounts, consider debt consolidation. Consolidation combines unsecured debts like student loans, credit cards, and medical bills into a single monthly payment so they’re easier to manage. However, debt consolidation isn’t guaranteed to work in your favor. It’s important to understand the process and how it will affect your debt before choosing to consolidate.
3. Create an Emergency Fund
Everyone needs an emergency fund, but it’s particularly important for parents. An emergency fund enables you to cover minor emergencies without fretting over the bill and remain stable if your job situation changes. Calculate how much money you’d need to cover three months of expenses and set aside funds each paycheck until your emergency fund reaches that number. If you’re a single-income household, aim for six months instead of three.
4. Budget for Childcare
According to Care.com, one in three families spend 20 percent or more of their income on child care. This makes childcare one of the biggest household expenses that parents face and affording it requires careful budgeting. Even when one parent stays home to care for children, there’s a loss of income to account for. Examine your budget to find areas where you can cut expenses and consider flexing your work schedule to reduce the amount of paid childcare needed. Parents can also save money by signing up for a Flexible Spending Account or using the child-care tax credit.
5. Prepare for the Unknown
Life throws a lot of curveballs. When you’re a parent, it’s up to you to be ready for them. Life insurance and a will are two things every parent needs to protect their family from the unexpected.
Life insurance pays out a death benefit if the policyholder passes away. With a life insurance policy, your family has money to pay for a funeral and stay afloat following a loss of income. However, life insurance alone isn’t enough. You also need a will that names guardians to care for your children if you pass away. Writing a will is complicated, so it’s best to consult with a lawyer.
Author of this article, Tilda Moore, researches and writes about educational resources for openeducators.org. She is passionate about helping parents and teachers in providing kids with the best education possible. She works directly with teachers and other public education groups to ensure they are working toward our vision of constructing a reliable database of verified information
Supplementing Your Income When Going Through A Divorce
The average cost of a divorce in the US is $20,000, and that’s if it goes smoothly in arbitration. For couples who need to battle it out in the court room, a two-day trial alone can stretch into the region of $25,000 before any settlement figures are reached. There’s no denying that divorce is an expensive business, and many ex-spouses struggle to stay afloat financially. If this sounds familiar, you might benefit from making a passive income – earning an additional stream of money without trading too much of your time. Consider the following ways to give your cash flow a boost during this difficult stage in life.
Renting Your Space
Space is a hot commodity, and the digital age makes it easier than ever to match up people needing extra additional room with those who are looking to make some money. Take a look at your property and assess if there are any money-making opportunities to be had. Do you have a garage that you could offer as a storage space? Or a parking space that you don’t use all the time? If you’re happy to welcome guests into your home, then you might even consider letting out a spare bedroom either on a semi-permanent basis or in an AirBnB-style arrangement.
Crowdfunding Real Estate
Another way to make money from real estate requires a small upfront investment. Starting with as little as $500, you can crowd-invest in a specific property and watch your pot grow so long as the market is looking strong. It’s a fantastic way to gain knowledge of the industry without requiring too much risk. With the right investment, you should be able to enjoy consistent returns, without the responsibility of being a direct property owner www.creditdonkey.com/real-estate-crowdfunding.html
Use Your Phone
With increasing numbers of consumers becoming attached to their smartphones, perhaps it’s time for your favorite device to get to work for you during your divorce. Some companies will pay you to display an ad on your smartphone lock screen – all you have to do is download an app. It’s also possible to make money by calling up companies as a mystery shopper, asking basic questions that customers need to know and then recording your experience of the call to be used by marketing departments.
Blogging
If you have access to a computer, and you love to write, then this is a great way to generate an additional income stream. If you have a hobby, skill or just a subject that you feel passionate about, then set up a blog and become an expert on the topic. Blog about everything to do with it, providing informative content which offers value to the reader and shout out about it on social media to gain a band of loyal followers.
Once you’re hitting some decent traffic figures, you’ll be able to make money from advertising and affiliate revenue. This option does require a little more effort than some passive income ideas, but once you’ve carried out some initial groundwork, you should be able to sit back and make money in your sleep.
These are just a few ways to generate additional funds, and of course there’s nothing to stop you having several streams of income running at once. The important thing to remember is that there are plenty of opportunities out there, and that will continue to be the case long after your divorce is settled.
Author of this article, Lucy Wyndham, is a freelance writer and former Financial Advisor. After a decade in industry, she took a step backward to spend more time with her family and to follow her love of writing.
Can A Reverse Mortgage Benefit A Divorce Settlement?
Divorce shouldn’t mean your life is over, but rather a new beginning to living life according to your rules. “Grey divorce” is becoming quite common as nearly one in ten marriages ends after being together for more than 40 years, according to Pew Research. As for the causes, this has been happening for various reasons – one of which is due to retirement. Elderly couples are looking to make their golden years enjoyable, even if life was either too busy or stressful in the past. So, can a reverse mortgage benefit a divorce settlement?
Dividing the Assets
Seniors often have many assets that are shared and nearly impossible to split. During negotiations, a family home is often one of the most sought-after assets as they are usually paid off and hold a lot of equity. That is why divorcees over the age of 63 are looking to compromise on a divorce settlement and help settle their assets with the help of a reverse mortgage. One of the benefits of a reverse mortgage is how it allows one partner to continue living in the home without paying for a mortgage nor have access to equity funds.
Splitting the Benefits of Homeownership
During the divorce settlement, splitting the home asset is usually the first decision to make. Instead of selling the home entirely, spouses could choose who can stay in the home and keep the reverse mortgage while the other party receives the equity funds. This useful tool helps couples reach an agreement without further complications. However, it is important to understand that the spouse who continues to stay in the home will be held responsible for certain obligations such as homeowners insurance and property taxes.
Provide Less Drastic Financial Changes
Perhaps the couple is used to living off two solid incomes – whether it be from owning a business, social security, or pensions from their retirement. After a divorce, both parties will be forced to adjust to the sudden drop in income. In some cases, getting the home in the settlement can be a huge benefit. The funds may come in a line of credit, monthly installments, or a lump sum. Additionally, if you plan to sell the home, using a reverse mortgage can help you purchase an entirely new home within your price range. What’s more, you will not have to worry about making the mortgage payments.
Author of this article, Lucy Wyndham, is a freelance writer and former Financial Advisor. After a decade in industry, she took a step backward to spend more time with her family and to follow her love of writing.
Avoiding Debt During Your Divorce
Even though divorce can be hard, it can provide a new beginning, a fresh start from where to build a new independent life. With plenty to consider at this time, planning ahead can be vital in ensuring you have a financially stable future. Although daunting, this process provides the opportunity to refresh your financial situation and take control of any previous money issues.
There are a number of finance options available, including consolidation and refinancing, to ensure that you can stay financially afloat, whilst also getting the support to turn your life around and find happiness again. Before you potentially encounter financial concerns and worries, there are some simple tips you can follow in order to solve financial issues between yourself and your ex, making a smoother move forward.
Removing names for joint accounts
A simple task that is often forgotten involves the removal of additional names from a joint account. Although this is not always possible if there is debt owed, you can request that the account is put on hold. This will prevent your ex-partner, or yourself, from using the account and accumulating more debt. Once the debt has been settled remember, to close the account immediately.
Pay up as soon as possible
Although few people are in the situation where they can pay off their debt, especially during a divorce, it is important that you create a plan in order to do so as quickly as possible. The sooner this can be done the better, and if you and your ex are amicable it can make for a much easier divorce process, without having to battle out who will be paying for what account. Again, as soon as the account is zeroed, close it down.
Cancel old accounts
Perhaps you have previously opened a joint account with another bank and forgotten to close it? When separating many people create new accounts and go to alternative banks, however if they inquire and find they already have an account existing they can start using it again. If this is a joint account than any debt created on the account will also be in your name. Hopefully your ex would not knowingly create debt issues for you, however it is best to check that all old accounts are closed down in case you or your old partner decide you wish to open a new account with the bank.
With a divorce you do not need the further stress and worry of financial issues pilling up. If you can make sensible choices in this time, you should be able to avoid the unnecessary worry of getting into financial difficulty and see the independence as a move toward a better future. That way, you will have the time and energy to focus on the important things like you and your family’s happiness.
Author of this article, Lucy Wyndham, is a freelance writer and former Financial Advisor. After a decade in industry, she took a step backward to spend more time with her family and to follow her love of writing.
Divorce: A New Financial Reality
Besides adjusting to a new emotional reality, divorce means accepting a new financial reality; and many people this means transitioning to a single income. According to the APA, around half of American marriages end in divorce so this is something a lot of us will face in our lifetimes. Unfortunately for many divorcees, particularly women, transitioning to a single income can feel like financial disaster: according to research from insurance provider Allianz two thirds of women feel their divorce created a financial crisis.
Track your spending and anticipate future expenses
At any point in your life, tracking your spending is a good habit to get into but especially so when your marriage is ending. Find out how much you spend on what. If you haven’t tracked your spending until now, use your credit card statements to estimate previous expenses. There are a variety of budgeting apps to help you do this. Once you know your current spending, you can estimate how much you will need to continue your current standard of living. This is a good first step in negotiating a settlement.
Gather documentation
Having the right financial records to hand early on in the divorce proceedings is very important. Correct documentation can help you avoid misunderstandings when reaching a settlement. Gathering documents can take longer than you think so start early. Particularly important are your checking and savings account statements, as well as statements from retirement and investment accounts.
Health
Many couples rely on the coverage of one partner’s health insurance plan, so divorce can create a lot of health questions. There should be a way for you to get some kind of health coverage in the transition period. If you are eligible for a legislation known as Cobra, you can get health insurance for 36 months on your spouse’s plan. In addition, one’s health insurance may also cover dental care and medical expenses for lower income divorcees, as long as your divorce is equitable. Believe it or not sometimes people divorce intentionally and pile all of the assets on the well spouse so the sick spouse can get under the income threshold to qualify for Medicaid. This is known as ‘Medicaid divorce.’ The courts have caught on however so make clear you are not trying to do this by making your divorce equitable – something you should aim to do anyway.
Divorce can be a hugely stressful part of a person’s life but in reality a lot of people will experience it. With the right foreknowledge and preparation you can minimize the financial burden and embark on your new single life.
Author of this article, Lucy Wyndham, is a freelance writer and former Financial Advisor. After a decade in industry, she took a step backward to spend more time with her family and to follow her love of writing.
10 Places We Throw Away Money – Guide for the Newly Single
Every year we spend too much money. We are simply used to convenience, and we will part with our hard earned money for it. This is the pitfall of many annual budgets, but there is hope. Throwing away money is a practice that simply needs to be reversed, and while there is no magic wand to make it happen right away, there are things to be done to bandage the hemorrhaging wallet.
1. Smartphone Apps
Why are we paying for smartphone apps when there are free versions to nearly all of them? Stop paying for what you can get for free. If you feel like you need an app, ask yourself why you need it. Wait 24 hours, then ask yourself why again. This will help you decide if the purchase is worth the money.
2. Gym Memberships
It’s been said before, but it stands to be said again. Many people get gym memberships with good intentions, but never use them. Be honest with yourself, and let go of that membership if you’re really not using it.
3. Buying Coffee
Sit back and consider how much is spent weekly on that cup of coffee from the fancy coffee shop. Coffee beans are not worth the label attached. Make coffee at home and bring it with you.
4. Cars
Car payments are avoidable if you sell your current car then pay cash for something used. Car leases, when trying to save money, make no sense at all. If you have a car payment, pay it off and avoid getting another one. Avoid leases at all costs.
5. Car Washes and Their Upgrades
Some people wash their car in the driveway, which is overall cheaper than using a car wash. However, if you must use a car wash, skip the upgrades. While it’s important to keep the road waste off the car, it’s not important to get it waxed and hand-dried. Take care of only the necessities.
6. Lottery Tickets
There’s a reason why it’s statistically more likely to get hit by lightning than it is to win the lottery, yet some people continue with this expense every week. Stop buying lottery tickets. Instead, invest $100 into a retirement account every month. You’ll retire with nearly a million dollars.
7. Shipping Costs
This is one of the biggest places where people throw away money. It is cheaper to use the gas in the car and go to the store than it is to pay someone to bring you the groceries. Stay off the Internet for purchases and you’ll save money. You’ll also think harder about purchases, because you’ll be inconvenienced in its acquisition.
8. Timeshares
Timeshares are expensive ways to hold a place to stay while on vacation. It seems silly to buy into one of these when hotels, beach houses, and short-term rentals are a growing industry. Get rid of the timeshare and save a large chunk of change.
9. ATM Fees
These fees add up fast when you’re taking money from an out-of-network ATM. Avoid this by using only ATM’s set up by your bank. You’ll save up to $5 for every transaction.
10. Unused Subscriptions
Many companies lure customers into a free 30-day trial, then watch the money roll in after customers forget to cancel during the trial period. Make sure you’re not paying for a subscription you’re not using because you missed your cancellation window.
Author of this article, Lucy Wyndham, is a freelance writer and former Financial Advisor. After a decade in industry, she took a step back to spend more time with her family and to follow her love of writing.
Helping Teens Choose A Career Path For Financial Independence
As parents, we can feel an overwhelming amount of pressure to make sure our teenagers make good choices when it comes to their future careers. This can be difficult if your teen has a behavioral disorder. However, even without behavior problems, it is still hard to help teenagers find their way.
To help teens align their goals with potential career paths without being “pushy”, try a few of these different approaches below.
Keep An Open Mind
There are many industries today which did not exist even 10-15 years ago. When I was a teenager going on dates and dreaming of my future, I never dreamed I would write online for a living. When I talked to my father about my dreams of becoming a writer, he about laughed himself sick and encouraged me to pursue psychology instead. Now I write online for parenting organizations regarding troubled teens. Interesting how these things work out.
Other industries parents may be surprised by:
- Pro esports – Does your teen want to just play video games? Well, there is actually a booming industry centered around professional video gamers, garnering viewers who watch the games much like traditional football games. Which draws in money from advertisers who want to reach those viewers.
- Social media – The world of social media has been a huge driver in creating new jobs. From social media personalities who create a living from cultivating a following via YouTube, Instagram, and other mediums to more “traditional” positions where companies now seem to all be hunting for social media managers to act as brand managers for companies.
- App developer – There is a growing demand for apps. This shouldn’t surprise parents as they see their teens glued to their phones but they may not realize the potential money behind careers that can come with app development. Successful apps can make millions, and many commercially successful ones are created by just a few creators.
Create Opportunities For Your Teen To Network
The old saying, “It’s not what you know, it’s who you know” has become more applicable as the economy struggles to recover. Highly skilled individuals have found themselves jobless for months and even years from the lack of networking.
To help your teen avoid this fate, you can facilitate opportunities for networking early on. This will give them references and connections their peers may lack. Some ways you can help them build up a network as a teen are:
- Encourage them to volunteer in their community.
- Have them engage in sports or creative group endeavors like choir or band.
- Allow them to work a part-time job.
While your teen may not be snapped up for a great career right after high school, they can start learning the basics of building a network.
Help Teens Think Realistically
I don’t criticize my father for not encouraging me to pursue writing as a career. He understood realistically that very few people could make a living from writing alone and while he did support writing as a side hobby, he showed me how my other interests could be made into a career. I follow a similar path with my own teenage son, though I do keep a bit more of an open mind than my father!
You can use tools like employment projections from the Bureau of Labor Statistics and job salary averages to help your teen take a serious look at their dream job.
This can give them hard numbers that cannot be argued with, unlike their parents. While teens may accuse their parents of exaggerating, these third-party numbers have no reason to stretch the truth and can help your teen refocus their goals.
So, along with giving teens good financial advice for college, try these tips the next time you talk with your teen about their future career.
Author of this article, Tyler Jacobson enjoys going to the mountains near his home in Draper, Utah to connect with his wife and children through camping, hiking, and quality time together. When he isn’t rebooting in the outdoors, he shares his fatherly experiences with the world through writing and creative designs. Tyler shares the ups and downs of family life and the solutions he’s found through lengthy research and involvement in the industry and his own experiences to help parents everywhere. Follow Tyler on: Twitter | LinkedIn
Tips on Teaching Your College Kids About Personal Finance
Money management is a life skill that is just as important as learning proper English grammar, yet it is often neglected. As a parent, it is your responsibility to make sure your child is not lacking in this life skill. Your child’s attitude toward money can make the difference between whether he will have a pleasant way of life in the future or one that will drag him to the pits of misery. There is no better time to teach your child proper personal finance management than when he is setting out on his own for the first time — his college days.
Talk about money
Money is something we deal with throughout our life, yet it is a subject we rarely discuss. Before you release your child to the jungle that is college, make sure you take the time to dive deeply into the subject. Be open about issues like how you are going to cover his or her college expenses and what you might have to do if something untoward happens, like if you suddenly lose your job. Handling money matters should be a team effort for your family. The more involved your child is, the more he will be responsible for his or her own share of expenses.
Work through a budget with your child
Take the time to sit down and create a budget with your child. This will not only teach him a skill that would prove useful in life, but you can also help make sure that he does not struggle with making ends meet, or worse, end up with nothing to eat while he is miles away from home. Also, if he ends up asking you for more money, you can refer back to the budget you have prepared and work out how he ended up running short. You can then suggest ways to improve.
Make your budget as detailed and concrete as possible. Create categories, break the budget plan down by month so tracking expenses can be easier, and take the time to evaluate the plan and how your child is faring every end of the year or as you see fit.
Require them to track their spending
One of the ways you can ensure that they will stick to a budget is by having them track their spending. The young ones often do not realize how the little purchases can add up. Ask your child to track every single purchase he makes. You can recommend an app that will allow him to do this. The techie tool will make the process easier and more inviting for him. Tracking every single expense will help your child get a feel of the outflow of money, and appreciate the complexities of money management early on.
Set money boundaries
Do not hesitate to discuss with your child just what you are willing to spend on for him. While sending him to school may be your responsibility, covering, say, fraternity expenses is not. Be clear about your boundaries. Explain to your child that if he wants to be able to indulge in luxuries, he should be willing to work for it or find resources of his own. Not only will this help you avoid getting into financial trouble, you will also be able to train your child to be more resourceful. You just might be able to ignite an entrepreneurial spirit in the process.
Do not always bail your child out
Make your child feel secure by explaining that you will always try to do your part and be religious with sending out his allowance. You can even explain that you will always be there to bail him out of trouble, that he should not hesitate to seek your help. After all, the likes of money transfer are only around the corner. Instilling a sense of security in kids is important if they are to set out to the world with confidence. Still, be just as clear that your offer of assistance has its limits. And that while fortuitous events are understandable, losing money over Starbucks is not. Be clear with your boundaries, and be willing to refuse to provide assistance when your child has been irresponsibly careless with his spending habit. Make him own up to his mistakes and learn from them. More importantly, teach him to sort out his own problems and solve them on his own. This will be yet another important life skill he could learn.
Talk about the pitfalls of borrowing
Whether you are thinking of giving your child an extension account to your credit card or you are just worried about him taking debts from his friends, make sure you talk candidly about the pitfalls of borrowing. Many people find themselves in a financial mess in late adulthood because they started off on the wrong foot. There is no better time to warn your child about the dangers of getting buried in debts than when they are just setting out for college. Emphasize the importance of avoiding debts. Mention real life anecdotes if you must, and explain just how much trouble it is to have wrong credit habits.
Talk about the possibility of taking a job
Sit down with your child and seriously ruminate the possibility of taking a job. Discuss possible opportunities available, and discuss the benefits of having a part-time job. Explain that learning about the hard work it entails to earn money will help him value what he has even more and be more responsible with how he spends it. Having a job will also help him earn many life skills that he can use when he enters the real world. This will help ensure eventual success in his career endeavors. You may also help him with time management, so you can make sure he can handle juggling school and work.
Set attractive goals
You may also establish goals that your child will want to work hard for. You can teach them the value of investments and compounded interest so they can have something to strive for. You can both identify exciting things to do with savings and investments, like travel abroad or just a fatter bank account. Having something attractive to look forward to will help motivate your child to stick to the planned budget or to take on that part-time job. Ensure a good future for your child by taking the time to properly train him or her on money management. Personal finance is no small matter, and should be treated accordingly.
Author is Jason Garcia Blogger and Business Manager www.InvestmentDad.com
Most Common Financial Concerns During a Divorce
Money is an ongoing concern for many and it can often cause problems for marriages, occasionally to the point where it ends in divorce. However, divorce brings with it, money trouble of its own.
Splitting Possessions
There may be a house, a car and even a collection of some kind all of which will have to be divided. This is a big part of the divorce process and the way it works has some relevance to where you live.
There are two forms of states known as community property states and equitable distribution. Community property states see all belongings as being owned by both parties. This does not necessarily mean that everything is split 50:50 and belongings are split in a fair way.
Equitable distribution states indicate that any property obtained during the marriage will belong to the spouse that earned it. In the case of divorce, the two parties have the assistance of solicitors and such to help them divide belongings in a fair way.
Splitting Debts
Splitting debts is very different to splitting assets because you have to share the money that you owe. Therefore, it is important for all involved to understand what is owed and who owes it and there is always the scope of settling the debts at this point by selling something such as a property. There is the possibility of swapping debt for assets when they property is divided but there is also the possibility of splitting debts equally – this of course depends on how amicably the divorce is.
Tax problems
Splitting assets and debt are usually at the forefront of the divorce arrangements yet there are tax implications to consider.
As you are not considered to be married any more, following divorce, your filing status changes. There is the possibility that capital gains tax could be expected, particularly if you receive a large amount when the property is divided and there is every chance that the legal fees linked to your divorce could be susceptible to tax.
Child support and any other family support payments could be taxed and if there are children involved, who will be exempt from making the payments? The tax payments can be quite high and so they have to be considered.
Are there children involved?
It is never a pleasant experience if there are children involved in the divorce, but the main fact is that they cost money. The cost of raising a child up to adulthood can run into the hundreds of thousands of pounds and this involves providing them with a home, clothes, food, school and a lot more and so, when it comes to divorce, child support becomes an issue.
If you are not granted custody of the child then you will have to provide regular payments as a form of child support. These are payments that you will have to commit to until your child reaches 18 years of age.
The payment will be made to the other parent as they are the ones who has to pay for the majority of costs associated with raising a child.
When it comes to divorce, things can become extremely complicated and so there are hurdles and barriers to slow you down along the way. While money may have been the reason for your divorce it can certainly cause you problems beyond that, but understanding some of the financial concerns when it comes to a divorce will prepare you for what lies ahead.
Author Bio K J Smith Solicitors are specialists in family law, with an expert team of family law professionals who are experienced in all aspects of family and divorce law.
Negotiating for Fair Settlement in Divorce
In divorce negotiations who gets what asset can be the most difficult part of the whole process. People sometimes have the winner take all mentality which leads to prolonged divorces. Negotiating is like a dance. One person takes a step backwards and the other one goes forward. The partners move in sync and sometimes apart from each other. They dance around some of the lesser issues to concentrate on what is most important to them. As in dance – flexibility is important. If your spouse is not going to budge on one item, go after something similar, or two smaller ones which may have an even greater value when combined.
Lawyers and mediators are quite skilled in assessing and dividing property and investments. That said, consider having a neutral financial consultant on-board to help with a fair distribution. They can look at the assets in totality and advise a balanced split so one party does not get mainly retirement pensions and the other one cash. A few women now in their fifties who got more in liquid assets and very little in retirement benefits, are worried about their futures. Who knows what social security payments will be in the next decade and beyond.
Look at what your present needs are in order to determine what assets are most advantageous to you. If you are a few decades away from retirement, it may be in your best interest to receive a bigger chunk of liquid funds. This way you can buy a house and pay off the mortgage. Being free of a mortgage puts more money in your pocket even with property taxes, upkeep and insurance bills. Perhaps student loans could be paid off if getting a lump sum settlement. If unsure what to do in your circumstance, meet with your own personal financial advisor for guidance in choosing which type of assets you would like.
Know the tax consequences of splitting assets, especially retirement ones. It may be prudent for the lower earning spouse to take ones that will be taxed in their lower tax bracket. Compensation can be made for this, but then wealth stays with the divorcing spouses as opposed to the government’s taxation department.
Dividing assets is not black or white – there is a grey area where you have some wiggle room. Please read more www.divorcemag.com/blog/negotiating-fair-divorce-settlement