- ISA
- Are you making the most of your ISA allowance? Halifax offers two types of ISA - cash ISAs and stocks & shares ISAs.
- Cash ISA
- Savings
Understand the Six Pillars in Child Financial Planning
Post written by Sherin Devassy. Follow me on Twitter
Whenever
I saw a 'kid', my heart starts fill with love and mercy. It may happen
to each of you too. If it is our own kid, we even ready to dedicate our
whole life for their betterment. Loving parents never forget the
requirements to provide maximum goodness to their kid’s life for present
and future. I consider, a very special, well planned, perfect financial
planning for kids will be the most valuable gift a parent can ever give
to their kids. There is nothing than this to secure the life of a kid
in each stage of her life. This article specially focused to all new
parents to share this idea as well as providing knowledge on six major
pillars in child investment planning. Each of these pillars has superior
importance.Pillar#1 : Age
Do you know at what age a financial planning for kids should start? There would be different answers available. But, the most suitable and beautiful time to start your kids financial planning is within the first 3 months of her birth. An early startup ensures to bring excellent results than a later start. Never miss this first pillar, age to start financial planning for kids.
Pillar#2 : Goal
Goal setting have ultimate importance in Kids Financial Planning. The only difference when compare with our financial planning, parents set the goals here on behalf of their kids. This can be anything depends on parents vision on their kids future but, the plan should able to bring the required result or little more than that. When kid reaching to the stage of taking self decisions, she should not feel the planning for her was not sufficient. This point indicates the plan should not cover only the required goals set by parents but should provide enough room for kids to take their decision if required.
Pillar#3 : Duration
Any parent who plans finance for kid gets a right duration of between 18 to 23 years. This can certainly consider as a perfect duration for a kid. At the time of 18, normally a kid ready for higher study and can take advantages from her planning done by parents. When she is at the age of 23, she starts earn money to support parents and family. Parent’s duty generally stops at that point when their kid starts earning after completion of her study by the finance planned by her parents. If parents set a goal more than for study, she can still use that to build a home, marriage or anything that is better for her life.
Pillar#4 : Redundancy
Through applying redundancy to kids financial planning, parents can ensure their kids never suffer from financial issues at their absence. Redundancy protects kids from unexpected financial issues until they become self sufficient. A best example for applying redundancy is subscribing child insurance with waiver options. This option ensures the insurance company pays all the future premiums in case of the death of parent. Intelligent parents take extra term insurance covers to protect the financial future of their kids by adding their kids are the nominee of benefits. When planning kids finance, any investments should be redundant through all available and possible ways to ensure any financial issues never affect your kids.
Pillar#5 : Selection of Portfolio
When coming to investment for kids, prefer maximum investment to best equities or equity related investments. A strong reason for this is, equity investments are the best to produce maximum returns for long run. Equity investments for kids should mix with large, mid and small cap companies selects through good research and study. Visit the investment articles area in this blog for various excellent articles on this. A carefully selected, maximum equity oriented portfolio can do miracles! Remember, goal and duration plays major roles on this part as mentioned below.
Pillar#6 : Monitoring and Balancing
Once done with an error proof portfolio creation, next and final pillar in this is monitoring and balancing of the same. Except some investments like real estate and gold, all other instruments should come under your monitoring radar. Monitoring of instruments performance should do in proper time and without fail. Also, shouldn’t monitor the performance always and or some time too. Instead, it should happen time to time whenever it is required.
Carefully selected equities can be the best performers and some time worst too. Identify this error, utilize monitoring skills time to time. Monitoring not only help to throw out bad investments but, also helpful to add new best performers. An example to the same is, once planned a kid investment portfolio at her age of 1, parents can give preference to equity or equity related investments to an 80% or more with a focus of next 10 to 15 years. This portfolio should be monitored once in a year to understand how the included equities are performing. It also required right balancing between investments to get liquidity at the right time. Working in this way, monitoring and balancing can consider as a double edged sword.
If you have not set any financial planning for your loving kid or even kids, this New Year is the best time to set this as a new resolution. Parents can even take help from good financial planners. Wish you all a very happy and prosperous New Year.
Image courtesy: mikebaird
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| Barry Glassman, CFP, CFS Senior Vice President Cassaday & Company, Inc. McLean, VA Financial Planning, Investment Management, Wealth Management (Photo credit: Wikipedia) |
Simple yet Superior Money Saving Ideas
Article by Sherin Dev; Follow me on TwitterDid you ever find the money tips freely available from net is worth for you? Some of them are really good but most of them not easy to practice of never give required results. Today, personal finance bloggers feel that the blog is not perfect if they don't have at least one article, listing money saving tips. Most of the A-list personal finance bloggers are acting as the prophets of money saving tips. Their blog almost found filled with different saving ideas and tips but once read, it would really give you a chance to laugh by thinking how brainless they are when writing about money saving tips.
You may now think Money Hacker also brainless blogger because he also posted lots of articles on money saving tips and ideas. But, I challenge you to visit my list of money saving article and inform once you find any tip or idea in it is not able to adopt or practice to save lots of money.
3 Childhood Money Habits I Still Follow
Childhood is the best time to acquire good practices. It is just like learning new languages. Any child who starts speaking the first language in her childhood, later come as her mother tongue. Similarly, any good habits practicing in her childhood follow her all over her life. Here are three of my childhood habits I still carrying after reaching the age of 38. I still practicing each of this habits and training the same to my kids whenever getting a chance to do so. This is quite interesting but, yes it is a true fact.
Piggy Bank saving
I can proudly say, I was saving money little by little from the childhood, using a piggy bank presented to me. I have received lots of coins from my parents at that time to put in the piggy bank and was so interested to saw how money was growing. I never forget my piggy bank
to take with me wherever I go, to collect coins. This habit not only
gives a huge account balance but also, created a habit of not leaving
any coins that I am getting from any place. Presently, this piggy bank
habit handed over to my kid and she is now collecting coins behalf of
me. This would make her a good money saving habit. I am interested to
take her with me whenever going to bank. My hidden intention is to
provide an idea about learning the transactions little by little.
Interestingly, she is now picking things little by little!Intelligent Spending Habit
I don't know how many kids able to follow this practice and who all parents teaching their children’s about this. But, I have got training to follow an intelligent spending practice
from my parents. Once identified the real value of money through little
possible games, this habit can inject to any kid easily. The best
advice I have received on this habit is to think twice before spending
any penny for any purposes! They have trained me to ask a question "Do
you really require this item?" before going ahead to spend money for
purchasing any item. I still follow this practice before committing any
activity where money concerned. It is of course a little bit difficult
habit to train but, continuous practices bring real results.Sharing Knowledge to Others
This is my third childhood habit. Never be reluctant to share knowledge with others. This habit greatly helped me to get new ideas to tune and shape mine in a better way. Intention behind this 'Uncopyright" blog 'Money Hacker' derived from this habit only. I am sharing my personal knowledge and habits to others and some time getting best advices to look into the weak points of my knowledge and shape it a very better way. Sharing knowledge is heavenly and a great tool. Not much people do that but, the one who really do it, taking a great chance to get more and more knowledge to the final wisdom!
I have kids. You may also have. Train them to come up with best practices. This is not only applicable to money but train them to become a good citizen with good habits and real knowledge. This is not just an advice but it is the responsibility of each parent. So take your responsibility seriously and bring your kid with good habits, practices and discipline.
Wish you all Merry Christmas!!!
Image Courtesy: chris.vandyck
10 Fabulous Financial Resolutions for New Year 2010
New year 2010 is near to our door step! There are very little days remaining for us to evaluate the status of resolutions which we had set at the beginning of 2009. If any of this was not yet met, identify the failure reasons and tune it in a better way for coming year. To set New Year 2010 resolutions, I consider this is the best time and we could start now onwards. We still have more than 10 days to study and set well defined, working resolutions for New Year 2010. You can set one or many fresh resolutions including previous year's incomplete one, for this year.
Here is a list of 10 fabulous financial resolutions. This can select as any or many to set for this new year, as your own resolution/s.
1. Stop a Bad Habit
Stopping or killing a bad habit can be the best resolution one can set for this New Year, if he/she have one such habit. It is not only helpful to save lots of money but leads to a healthy life. Generally, bad habits affect to the person along with family members too, in many ways. Make it as a New Year resolution. Think healthy and live healthy. Read my previously written post "convert a bad habit to millions", to get an idea on how one can stop such to save money.
2. Plan to Get out of Debt
Suffering from debt is always painful. Debt means financial imbalance. Good planning helpful to get out of debt gradually. Read my previous article which explains easy, step by step guidance to get out of debt. Identifying your debts and categorizing it in a better way to work with it would be a good option to completely free from debt at the end of this year. Many resolutions in this list can work as a perfect support to this. Grab the best guides
focused in it to read and practice the best efforts to get out of debt. 3. Build a Good Saving Strategy
Have your own saving strategy. Saving strategy should start from the day of getting your first salary. Better money management
leads to secure financial life. If you still not have a right saving
strategy, this is the time to set a resolution for that! I am sure; you
will have lots of balance money in the account at the end of this year
once if you set a perfect money saving strategy
.4. Identify and Work to Secondary Income
Everyone has option and right to generate secondary income to support primary. Make a resolution for this year to identify yours and work with that. Read this fantastic article "Practical Guidelines to Create Additional Income" to get simple, excellent ideas on this. You can even try out for the best available books in the market to get good quality of advice on this subject. Read Dave Ramsy's Total Money Makeover
guide as a good start up point.Money Hacker Tweetbook! A Precious Gift to Readers!
Today,
I am offering a terrific gift to Money Hacker readers! This classic
gift box contain a precious, valuable e-book created from Twitter
Tweets! A TweetBook!!! This rare specious e-book created by deadly
combination of most precious, most valuable articles found scattered on
various sites and blogs around the glob. Here it is for you in a single
room! This Tweetbook created by Money Hacker with 2500+ amazing article
tweets from the category of personal
finance, investment guidelines, child investments, family finance,
money management, money saving tips, insurance planning, debt
management, retirement planning and many, many. This tweetbook going to be a very innovative gift for you! I
am now taking you to this wonder world of Money Hacker with lots and
lots of amazing articles from each and every area I am covering to. Boy!
this is a real goldmine! You will realize it if you download and have a
look all over the pages of this classy e-book. Download, enjoy, share
with your friends and popularize it. This is dedicated to each and every
visitors and readers of this blog!!! Popular Articles from November 2009
Here is a list of most popular article posted in Money hacker in the
month of November 2009. Each of this article coming from various
categories and very best to read and get maximum knowledge on that area.
I am sure, most this article are new in this kind and providing
valuable information to Money Hacker readers. I am here to hearing from
you on what you think about each of this articles. Have a look.
Money Saving Tips on Water
Water
is life. It is the most valuable bless from god to the human kind.
Whenever misuse of any drop of water happening throughout hand or
careless act, remember lots of people around the world suffering by not
having even that drop of water. Water becomes costliest among utilities.
Around the world, human kind experiencing scarcity of water or not
having enough water to meet the need. Whenever dealing with water, as a
costly utility, remember, little care from our side can save lots of
gallons of water along with waste of money.Here are some tips to save water as well as money. You will certainly find these tips are highly practical, powerful. To make you perfect to never miss any items, create a checklist of items where your attention required not wasting and losing your money. A good lists of attention required utilities always helpful to do timely checking to confirm no error happening from your side.
Insightful Money Saving Tips on Electricity
This
article not only provide an idea to perfectly save money on electricity
but, give a chance to do self assessment on present status and
understanding on the subject. It is best to understand the most possible
methods to save money on power and save money by perfectly using it in
your home. Remember, I still feel communication is the best method to
put your each idea in work after discussing each with your family
members and getting their full support to your efforts. Have right
spirit and best wishes from my end.Is Christmas Debt Really Worth It?
Editor's Note: This is a guest post from Sarah Jennings of Moneybright, UKThe festive season is expensive. Whether you have children or not, anyone celebrating Christmas is likely to find themselves with higher than usual spending! Whether you are purchasing presents for family, buying food for your big meal or indulging in the Christmas treats you just cannot resist, it all adds up.
While there are a number of great ways to avoid Christmas Debt, employing thrifty tactics like shopping on special discount days or using promotional discount codes online, you’ll still be left with a big Christmas bill. There are a number of people who argue that spending excessively at Christmas actually undermines what the season is about. And of course it does.
Strategies to Become an Expert Investor
Becoming
an investment expert is a dream of every investor. It's glory and fame
is the major factors, people generally interested to have this title. It
is easy to say the word 'Investment Expert' but it is not that much
easy to shape one fit to that title. What is 'investment expert' title
really means? Nothing, having acquired skills which helps a person to
determine advantages and disadvantages prior to make any investment
decision! An investment expert should have enough skills to evaluate the
possibilities and drawbacks of an investment from all angles. By
sticking to the law, 'Nothing Impossible in this world', we are moving
to the next session, the important three points that can make a person a
real investment expert.
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