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Sorry College Grads but You Still Need To Learn Lessons About Personal Finance

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Group of grad students looking happy outdoors

You aced that course titled an Introduction to American Culture: World, Nation, Regions. Principles of Human Communication was a snap. And you at least got a B in Business Programming. You’ve tossed your cap in the air and you have that brand-new diploma tucked under one arm. You’re free you say to yourself, no more boring lectures, no more all-nighters, no more testy professors.

Well, not so fast there.

The credit reporting bureau, Experian, did a study, which revealed that the majority of college graduates don’t feel that they have been adequately educated about personal finance. The fault, they believe lies with their schools which may have taught them a lot about many things but personal finance wasn’t one of them. As a result, most recent grads don’t feel prepared to manage their credit card and student loan debts.

Are you feeling stressed out about money?

This same survey revealed that most graduates are feeling overwhelmed, stressed and worried about money. At the top of their list of concerns was not having enough money saved followed by carrying too much debt. These young people are not alone, either. If you do a quick Internet search on the term “Americans worry about money” you’ll get literally thousands of articles and studies about how much most of us agonize over our personal finances. Being stressed out about money can even cause physical problems such as bladder infections, sinus infections, fibromyalgia, colds, diarrhea and even heart disease.

The good news

There is no magic fix for money problems but there are some important lessons you need to learn that would at least help you gain some control over your financial situation and here are four of them.

It’s up to you to lean about personal finance

The first thing you need to do is accept personal responsibility for learning about finances. This means it will be up to you to find educational resources and commit to learning what you need to know to succeed financially. Two good places to start are the books “Rich Dad, Poor Dad” by Robert Kiyosaki and Dave Ramsey’s “The Total Money Makeover”. Dave is also the author of several other worthwhile books including “The Complete Guide to Money” and “The Financial Peace Planner.” If you take the time to read two or three of these books, you’ll be well on your way to understanding the basics of personal finance and debt management.

Look for local resources

There are organizations throughout the country just begging to help you become literate financially. Most of these organizations offer help that’s either free or that cost very little. For example, there is the Financial Planning Association and the Foundation for Financial Planning. The FPA was created in 2000 and its members are encouraged to join “Communities of Interest” organized by this stage of your career and your other interests. Its stated aim Is to be the community that fosters the value of financial planning. Another good source for learning about personal finance is the Institute for Financial Literacy, a nonprofit organization whose mission is to promote effective financial education and counseling.

Make a planworking on laptop

You undoubtedly had a plan for your college education and your next step is to make a plan for your financial situation and how to improve it. Studies have shown that just making a plan will actually reduce your stress about money. It doesn’t have to be lengthy, elaborate, or complex either. For example, you could start with the basic building blocks such as creating a spending plan. There are literally countless budgeting tools available free online as well as numerous apps. One of the best of these is Mint.com. Once you sign up with this free tool you will have a smart phone app that will automatically track your spending and help you develop a budget. It will even suggest a few for you. In addition, you can connect your credit cards, savings accounts and any investment accounts to Mint and it will then show you a complete picture of your finances all in one place. Just as important, you can use Mint to check your credit and get tips for improving it.

If you decide that your first, best step would be to create a budget there are some great, free smart phone apps such as PocketGuard and GoodBudget. Probably the second most popular budgeting tool is You Need A Budget, which you can use free for 34 days and then after that $50 for a year or five dollars a month to use it on your computer.

Don’t forgo professional help

If you had a serious medical problem like appendicitis or colitis you wouldn’t try to treat it yourself. You probably wouldn’t try to fix an automobile problem such as a broken transmission without professional help. And if you were hauled into court over a serious automobile accident it’s unlikely you would try to represent yourself. If you’re suffering from an unhealthy financial situation it can permeate every facet of your life in both the near and far term. Whether you’ve stopped to think about this or not being in a poor financial situation can impact your relationships and your ability to have a quality life. When this is the case finding the right professional that can provide the help you need can have a huge and beneficial impact on your life and on those of your loved ones. Whether your basic problem has to do with debt consolidation, improving or managing your credit, doing a better job of investing your money or any other financial issue the right financial advisor can help you overcome it and have a better, less stressful life.

There’s just no excuse for financial illiteracy

If you didn’t learn the basics of personal finance while in high school or college that’s no excuse for remaining financially illiterate. If you accept personal responsibility for your finances and use the lessons you’ve learned in this article you should be able to look forward to a very bright financial future.

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Want To Improve Your Finances? You Have To Sleep More

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man sleeping on moneyAre you looking for ways to improve your finances? Maybe sleeping more will do the trick.

On the surface, it is hard to believe that getting more sleep will really make you rich. Wouldn’t it be more logical to work longer hours so you can increase your personal net worth? It seems to be more beneficial to your finances if you stay awake longer so you can do whatever it is that makes you earn, right?

Apparently, it is not as simple as that. If you think about it, there is a lot of truth into the statement that sleeping more will help you improve your current financial position. It all boils down to how sleep helps condition our bodies and make it fit enough to make the right decisions.

We all know that sleep is beneficial to your health – especially our mental health. We have seen a lot of studies that tell us how you are better off if you get a good night’s sleep. When we sleep, our bodies can recharge. Our whole system is able to repair itself and thus make us stronger. If we do not get enough sleep, our bodies cannot heal and we will not be 100% ready to face the struggles that we will face the next day.

According to NIH.gov, lack of sleep is actually hazardous to your health. If you get quality sleep at the right times of the day, you are able to function effectively throughout the day. Those who are unable to sleep well will be less productive – both at work and in school. In fact, losing sleep puts you in danger. The study revealed that losing sleep for a couple of nights – even if it is only 1-2 hours of sleep each night, will make you suffer as if you did not sleep for a day or so. This will put you in danger of microsleeping – a condition wherein your mind and body go to sleep without you knowing it. If you had moments when you cannot remember what happened at a particular time in a day, you might have fallen asleep in the middle of a task – like driving. You cannot control these and it could result in you hurting yourself or others.

That alone is enough reason to motivate you to get enough sleep. But beyond all the dangers that you can avoid, it is also possible for you to use the right sleeping habits to help make yourself rich. At least, this is true if you understand the right sleeping patterns that you should follow. It is not just about sleeping long hours – it is getting a good and quality sleep.

Different ways that sleeping well will make you rich

Of course, the question remains: how can sleeping improve your finances? As mentioned, it is all connected to the way proper sleeping habits can condition your mind and body so it can function properly. If you are able to function well, you will make lower mistakes. That means you can make the right choices because you mind is fit enough to do so.

To be specific, these are the effects of sleep on your body and how it can affect your ability to improve your finances.

It improves your memory.

The first benefit of getting enough rest is it helps improve your memory. According to a study published on Harvard.edu, Rapid Eye Movement (REM) sleep is crucial to help a person retain a material that they just learned. Although you may be sleeping, your mind is actually busy strengthening your memories and practicing the skills that you learned during the day. The study revealed that this is called consolidation. You can only do this consolidation in your mind when you get enough rest that allows you to reach REM sleep. If you do not reach this phase in your sleep, you will fail to strengthen the memories you have. Since this phase in your sleep dominates the latter half of your slumber, the length of time that you are resting will play a crucial role in strengthening your memories. If you do not get enough sleep, you will lose time in this phase. This is why you need to sleep longer so your mind gets to spend more time in REM sleep.

Having a great memory will serve you well in various areas of your finances. It allows you to remember crucial details about your finances so you can make the right decisions. These are the decisions that will eventually influence you to improve your finances.

It makes you more attentive.

If you are sleep deprived, you get to react more slowly than when you had adequate rest. Most of the time, you are inattentive because you are feeling sleepy. This will make you unfit to find the right information that will help you make the right decisions in your life. You will tend to rush into things without paying attention to the details that will give you clues about the choices that you need to make. This can prove to be a big problem if you have to make financial decisions. You might disregard consulting your budget because you just want to rush through the process instead of thinking it through. This could end up landing you in a financial mess that could cost you an opportunity to improve your finances.

It helps you manage stress.

Getting enough sleep will also allow you to manage your stress levels properly. To be more specific, it will help you lower it. Sleeping will allow you to relax your body and that can effectively lower the stress level and your blood pressure as well. This can be beneficial to your health because it can avoid a lot of cardiovascular problems. But apart from that, sleep will allow you to condition your body to even handle money stress. Although you feel the pressure because of several financial obligations, you get to relax your mind and body every time you sleep. Again, this conditions you to make the right choices about your finances.

It keeps you from feeling depressed.

When you get enough sleep, you can also battle depression. Sometimes, people get easily depressed after failing at something. This is something that you can easily get over if you get enough sleep. You will not feel so defeated that you will refuse to work harder to reach your goal. You will continue to reach for your target because you know that whatever obstacles are in your way, you can overcome it.

It enhances your performance.

Since sleep can condition your physical and mental state, you will find that your performance will also improve. When it comes to your finances, you will find the energy to work harder so you can earn more. This does not necessarily mean you will work longer hours. It could also mean you will be more productive in whatever it is that you do in your work. If you are observed to be very productive, that will reflect positively on you. The chances of you getting a promotion or raise will be higher.

These are the effects of sleep that will help you improve your finances. Of course, this does not mean you need to literally sleep longer hours that you miss out completing the tasks laid out for you throughout the day. You need to get the sleep that is appropriate for your age. For adults, that is usually 7 to 9 hours of rest. Any lower than this and you will be in danger of ruining your chances of financial abundance.

Lack of sleep can cost you money

If sleep can help affect your ability to improve your finances, it naturally can cost you money too. Here are the things that inadequate sleep will cost you.

You consume more caffeine.

Let us start with the obvious – you will consume more caffeine. According to the data from the FDA.gov, the average amount of caffeine that a person consumes is 300 milligrams. This means the average person consumes 109,500mg of caffeine a year. The less you sleep, the more money you will spend to buy a cup of coffee that will help you be more alert. We all know that this is not really the healthy way to compensate for your lack of sleep but we do it anyway.

You find ways to avoid activities.

Since you feel more tired because of lack of sleep, you tend to hire more people to help you accomplish some of your responsibilities. Since you are not in your best condition, you tend to work longer for tasks that you can finish in a short amount of time. This means there will be tasks that you cannot accomplish. To get everything done, you will just find someone to do it for you. For example, instead of being able to finish your report by 5 pm, it will take you until 8 pm before you can go home. That would mean less time to cook for your family. To feed them, you will order take out – and that will cost you more. That is usually how you spend more money on things that you do not really need.

These are only some of the things that you will do that will cost you money because you did not sleep well. If you waste your money on these expenses, you cannot improve your finances. This is why you need to make sure that you get enough sleep – you can condition yourself to work towards financial wealth.

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Are You Unconsciously Damaging Your Kids’ Financial Future?

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family reading a bookYou’re doing everything you can to protect your kids and keep them safe. You spend countless hours thinking about what you can do to save money for your children’s’ future. You have some great intentions but you may unconsciously be dooming your kids’ financial future.

For example, do you not talk about money? If you don’t talk about money at home your kids are less likely to understand the value of a dollar. As a result, many of them grow up uncertain about how to manage money. Experts say that about the worst parenting mistake you can make is to not talk with your kids about money. Does talking about your family finances make you feel uneasy? You need to put these feelings aside and really make an effort to teach basic personal finance skills to your kids. If you don’t talk about money, it’s possible you could be robbing your children of the essential financial skills that would help them avoid debt and earn a good credit scores.

Are you setting a poor example?

Good financial modeling begets good financial habits. If you have money troubles your kids may be picking up on them. One Bank of America study found that nearly 20% of parents admitted they don’t follow the advice they give their children. In addition, nearly 60% said that what most influenced them in how they handle their finances now was their parents’ advice and the examples they set. Don’t make it “do as I say not as I do”. Make it do as I do.

Using credit cards in place of cash

Do your children ever see you using cash to make your purchases? You probably don’t use cash very much if at all because credit cards are easier and more convenient than carrying a thick wad of cash. But avoiding cash isn’t a good idea, especially if your kids do not understand what you’re doing. Another study found that most teenagers don’t understand the difference between a credit and a debit card so they generally are not going to know if you’re using your own money or credit. They see that plastic just makes things happen – and it looks so darn easy – which can be a dangerous lesson to teach.

Shielding your kids from money arguments

Most parents tend to shield their kids from arguments about money. But this can actually be beneficial. According to research from T Rowe Price kids that see their parents financial arguments are more likely to feel smart about money and more confident about what they learned from their parents, In addition, when you and your spouse argue you generally exchange a lot of information to support or oppose your views. All of this provides a lot of food for thought, which is probably one reason why most children who witness money arguments believe their parents, are good financial teachers.

Not differentiating between wants and needs

Let’s say you’re talking about an upcoming business trip and you say, “I need a new suit for this conference”. While this kind of comment might seem harmless it’s not. For one thing, you haven’t discussed anything that will help you succeed at the conference except for a new suit. What you haven’t said anything about is hard work and skills. The lesson you could be teaching your child is that if you just buy nice things you’ll get what you want. Plus, you may want a new suit but that doesn’t necessarily mean you need it.

It’s important to teach your kids the difference between needs and wants. Just because you want a new suit for that conference doesn’t mean you need it. It would have been better to say, ” I want a new suit for this conference so I can make a good impression. Similarly when your child says, “I need a new computer,” you need to make him or her understand that unless their current computer just died what they really mean is, “I want a new computer,” which will start a whole different conversation.

Are you hurting your kids’ financial future by not providing an allowance

Do you dole out cash on an as-needed basis? Maybe today it’s money for the mall while tomorrow it’s for movies. Unfortunately, just about everything your child learns from these arrangements is negative. For example, they do not learn to budget or save for the things they want. What they learn is that they can get things at someone else’s whim and they learn how to scheme to figure out when you’re in a good mood and could be successfully hit up, which is bad. When you give your kids an allowance it will help them learn how to manage money at a young age as well as developing decision-making skills. They will then become more confident about money management when they reach adulthood. Keep in mind that it’s your children’s money so don’t micromanage it. Let them learn that when that allowance is gone that’s it. Don’t bail them out.

Diploma with moneyFailing to use college planning as a teaching tool

This is an area where many parents unfortunately fall short. The fact is that planning for college is a great opportunity to teach your kids how to look down the road and plan for the future. According to a study published on SallieMae.com, parents who saved for college developed the habit of saving – which was a good financial behaviour. Not only that, those who admitted to planning for college were able to successfully save for it.

Many people get hung up on the question as to who should pay for college the parents or the children. This is a good place to start laying out financial planning for the long term with your child. In fact, your kids should be taught to understand that you’ll be saving for retirement and can only help with their college costs. This will also help them understand the importance of saving for retirement.

You should also make sure your kids take tuition costs into account when choosing a college or university. He or she might want to attend an elite private university but this might not be worth the money if your child wants to pursue a career that will never pay more than $70,000 or $80,000 in a year. Do the math and you’ll see that this just doesn’t make sense. Children need to think of college as an investment and not just a growing experience.

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6 Lessons In Kindergarten That Will Help You Develop Great Financial Habits

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little girl holding moneyWe can all benefit from good financial habits. In fact, we all want to make sure that our children start learning them early. This is why it is encouraged that parents teach kids about smart money management skills. When you let your kids develop the right financial behavior at an early stage, they will most likely bring that with them as they age. When you mold them to become great money managers at an early stage, you can be assured that they will make the right financial choices as they mature. And even if they make mistakes, it is okay. They will know how to get themselves out of the mess that they put themselves in.

While you can teach your kids a lot of things about money, did you know that they can also teach you a couple of things as well? There is this poem by Robert Fulghum titled All I Really Need To Know I Learned In Kindergarten. The same author also wrote a book that expounded on the ideas on this poem. This literary piece enumerated a couple of lessons that we learned in kindergarten. These lessons are something that we can implement even as we age. It tells us of how simple things really is for a kindergarten. In fact, even something as complicated as money can be simplified if you try to look at it through the eyes of a young one.

This is why we tried to search for tips that we can use to help develop financial habits in this literary piece. If you broaden your mind, you can actually see 6 different lessons that you can use to help improve your behavior when it comes to money. Since these are supposed to be lessons in kindergarten, you can probably use this to teach your kids about the proper way to handle their finances.

6 lessons in Kindergarten that can improve your financial behavior

So what financial lessons for kids can you use as an adult? Here are the 6 lessons we got from the poem by Robert Fulghum.

When you go out into the world, watch for traffic.

Everytime you cross the street, it is important that you look both ways before you step off into the busy street. When you watch out for traffic, you will know where you are, what is coming for you and what awaits you. The same is true when it comes to money. Before you make a decision, it is important that you know the whole situation first. You need to know where you stand financially. You also have to find out what will happen when you make a particular decision. Finally, you need to know you want to go it can influence the decisions that you will make about your money.

Everything you need to know is there somewhere.

This is in relation to the previous lesson. If you want to learn something, you will always find it somewhere. If you are persistent and determined to learn, you will find a way to get the information that you need. In today’s digital age, you can easily research something over the Internet. If you do not trust what is one the web, you can always find a professional that will tell you what you need to know.

Put things back where you found them.

This is a lesson that you can use if you want to learn financial habits that you can use every time you borrow money. If you used something, it is very important that you put it back if it is not yours. The same is true for any money or object that you borrow. You need to learn how to return it. You need to pay it back. This lesson mentioned that you need to put it back where you found them. In the same way, you need to return what you borrowed in full – including interest if that is what you agreed upon when you loaned the money.

Hold hands and stick together. This is a great advice for those people who are working towards a common financial goal. You may have goals with your spouse, partner, family or friends. Whatever it is, you need to work hard to meet them together. Cooperate and remember that two heads is better than one. Even if you have set your goals on your own, it helps to find someone that you trust and respect to confide in. This person is the one who will support and encourage you as you try to reach your financial goals.

Say you’re sorry.

This is a great advice for couples handling money together. At one point, you will make mistakes when it comes to handling your money. Since you are a couple, your mistake is bound to affect the other. Learn how to apologize and work with your partner to get past the error that you made. Try not to fight about it. If your partner gets angry, do not react negatively. Be humble about it and do not add fuel to the negativity of the situation.

Share everything.

You are not really required to share everything – but you are encouraged to share. This is not really something that will improve your finances – but it will make the growth of your wealth worthwhile. It does not really matter how much you give. As long as you share with those who are less fortunate than you, then it will add to your motivation to improve your finances.

Tips to develop the right money habits

Developing the right financial habits cannot happen overnight. It is a process that you need to patiently work on. Here are a couple of things that you need to do in order to make this happen.

  • Educate yourself. This is the first step. According to the NFCC.org financial literacy survey, 3 out of 10 Americans reveal that they are not confident with their financial knowledge. If you think that you belong to this statistic, you may want to start researching about the financial concepts that will make you more confident about making decisions.
  • Observe the financial habits that you currently have. Once you have done your research or while you are doing it, observe the habits that you currently have. You need to understand your current situation before you can make improvements.
  • Identify what needs to be improved, retained or removed. Based on what you find out from the first two tips, you need to think about the habits that you need to develop. What are the current habits that you need to improve, retain or remove? And beyond that, are there any habits that you need to add? Determine what these are before you proceed.
  • Practice the habits you want to develop. After you have identified everything, it is time to implement them. In developing new habits, you need to practice them repeatedly. According to an article published on 99u.com, a habit is developed through the practice of three things: setting cues, going through the routine and earning a reward. If you do it repeatedly, you can train your brain to unconsciously do something. That is how you develop a good habit.
  • Always keep yourself informed. Lastly, you need to keep adding to what you already know. It is not enough that you develop the financial habits that you need to use to make your life better. You have to see if there are new habits that you need to form. This is why you need to continue educating yourself.

Follow these tips and you should be able to develop the financial habits that will help you improve your current financial situation.

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How To Manage Your Finances If You Are Financially Supporting A Loved One

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elderly couple with family in the backgroundLearning how to manage your finances is sometimes, not just for your own benefit. It is also for others who are depending on you.

As a family, we usually try to be there for each other. We try to be there for emotional and moral support, physical assistance, and even financial help. It is nice to know that when you are in deep trouble, you can count on your family to bail you out or at the very least, give you that little push towards the right direction.

It seems that relying on our loved ones became more popular after the Great Recession. Take for instance the new graduates. In the past, young adults who graduated would move out of their parents and live on their own. They will pursue their own life and take care of their own needs. In recent years, this practice is steadily decreasing. While it is not done by the majority, a lot of Millennials are moving back in with their parents. According to the data gathered by PEWSocialTrends.org, the rate of young adults living with their parents is up to 26% in 2015 – a 2% increase since 2010. The age bracket of this group is currently 18 to 34 years old. Only 67% of them are living independently – a 2% decrease since 2010.

You may think that these young adults are moving back in because they have failed at financial management. That may seem like the case but a new study shows that it is not entirely true. At least, not anymore. Apparently, some of these young adults are actually at home because they have opted to financially support their aging parents.

Dealing with the financial issues when you are providing financial support

A recent study released by TC Ameritrade revealed that more Americans are supporting their loved ones than before. For some, they support their aging parents. Others support their adult children. There are also others who are supporting both.

Now when you intend to financially support someone else, you need to learn how to manage your finances so you can take care of both of your needs. It is not something to be taken lightly. Even if your financial resources are going well, you need to keep yourself from splurging. Instead, you have to ensure that you will prepare for the times when your resources become limited. In case something happens to your finances, you will not be the only one that will be affected. Even the loved one depending on you financially will also suffer the consequences.

According to the study published on AMTD.com, one out of 5 Americans serve as financial supporters of a loved one. On an average, they spend $12,000 in the past 12 months. Surprisingly, Millennials have spent more – averaging at $18,000 in the past 12 months. It is revealed that in most cases, mothers receive the most financial support from their children. These financial supporters also take on the burden, usually, because they were asked to. Based on the survey done, these supporters are happy with what they are doing. But when it comes to choosing between an aging parent or an adult child, most of them would choose to support their parents and leave their adult children to financially fend for themselves.

Of course, you know that helping out financially has its limits. This is why you need to manage your finances well because if not, you will be forced to make some sacrifices that can cost you a secure future. While your intentions are noble, you do not want to become a burden yourself when you retire. The respondents admitted that they had to make the following sacrifices:

  • Delaying life milestones. Since they have to put their extra money into helping their loved one, a lot of the financial supporters delayed major milestones. These milestones included buying a home, retirement, getting married and having kids.
  • Borrowing more money. Because the financial load is greater, some of the financial supporters end up owing a lot of debt. The average debt that they owe amount to $100,000 – including mortgage. In terms of credit card debt, they owe an average of $22,000.
  • Living a frugal lifestyle. Another sacrifice – that may or may not be one, is to live a frugal lifestyle. If you have the right perspective, you can actually look at this as a blessing in disguise. There are many advantages to living frugally and you may be able to learn a lot as you are forced into this lifestyle.
  • Using up their savings. The last sacrifice that they admitted to making is to use up the savings that they have put aside all this time. It is bad enough that they cannot save for their future. Having to dry up their existing savings is a really great sacrifice to make.

To avoid these sacrifices from ruining your future, you may want to manage your finances well so you can maximize what limited resources you have.

Financial management practices to help you support a loved one financially

There are couple of things that you can do in order to help in your money management efforts. That way, you can continue to help your loved one without making it too hard for your finances to carry. Here are some tips you should implement.

  • Use a budget plan. This is always a big help regardless of your financial situation. This plan will help you understand your income and expenses. It will give you more control so you can decide what your financial priorities are and you can ensure that they will always be met.
  • Track your spending. Another tip that you need to implement is to track your spending. This should be an easy task if you have a budget plan. This will help make you a smart spender because you are more cautious of what you are spending on each month. You can cut back on the expenses that you think is unnecessary.
  • Lower expenses. Once you have tracked your spending, you should be able to identify those that you can live without. There are various ways to slash your expenses so you leave more room in your budget for the unexpected expenses.
  • Plan for your future. Although your finances are tied up at the moment, that does not mean you should stop planning from your future. If anything, this is the right time for you to do that. You need to manage your finances not just for the present expenses, but for your future too. If you think that it is hard to financially support someone, you do not want to be on the other end when you retire. After all, you cannot be sure that someone would be selfless enough to make the same sacrifices that you are doing right now.
  • Save up for retirement. As you plan for your future, the most important task that you need to do is to save for your retirement. There are a lot of retirement plans out there that you can tap into. Choose a plan that your budget can afford.
  • Research benefits you can get as a financial supporter. When you are supporting other people, you need to research certain benefits that you can avail because of that financial responsibility. You can look into Medicare and Medicaid to see if you can get health assistance. You can also visit sites like ElderCare.gov to find out where you can get help.

These should help you manage your finances so you can create a more secure financial position for yourself and those relying on you.

Do you qualify for debt consolidation?

Financial Lessons For Kids That They Can Use As An Adult

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group of kids around saving conceptDid you know that teaching financial lessons to your kids will help set them up to a financially successful life in the future? You need to consider how important it is to learn financial management at an early age. There are many benefits to knowing how to manage your money properly. For one, you can use financial management as a debt solution. It can also keep you from debt in the first place. This is one lesson that you want your child to have as they enter into adulthood. One bad financial decision, like student loans, may result in decades of suffering.

According to an article published on DailyFinance.com, it is revealed that the percentage of students who display responsible financial behaviour declined – at least when you look at the statistics from 2012 to 2014. These behaviours include tasks like reviewing bills, paying bills on time, following budgets, paying off credit cards and controlling their spending. The survey involved 42,000 first year college students from both four-year and two-year colleges and universities. The topics in the survey covered savings, banking, school loans and credit cards. The report is titled “Money Matters on Campus” – an initiative from Higher One and EverFi, a financial company and education technology company respectively.

The report indicated that college students are stressed financially – regardless of where they come from in life. According to the report, the thing that gives them the stress the most is their level of student loans.

It is very important that you equip your kids with the right lessons that they can use even as they get older. Truth is, this is not very hard to do. A lot of financial lessons that we got as kids can easily be applied even as we get older.

Money lessons we got as kids that can be applied when we’re older

According to Bankrate.com, there are a lot of parents who fail at teaching their kids the right financial lessons. In an article about teaching kids money lessons, it is revealed that 20% of parents have never talked to their kids about basic money concepts. This data came from a survey done by True Credit of TransUnion.

You need to do better than these parents so you can prepare your kids for a future filled with the right financial decisions. Here are 4 simple financial lessons that you can start with.

Money does not grow on trees.

Some parents think that this is a difficult concept for kids to grasp. But when you think about it, they need to learn it because it teaches them the value of money. They have to realize that you are working hard to earn the money that you are spending at home. You can discuss with them the concept of an income and how you need to spend hours in the office or your business to earn money. To illustrate this lesson, you can ask them to do extra difficult chores at home – something that they will be paid for. Choose these chores wisely. Try not to reward them for simple chores because that might make them refuse to help around the house if they will not be paid for it. If they are older, you can encourage them to find part time jobs – especially during the summer when school is over.

Just because you want it, doesn’t mean you should get it.

The next lesson that you can teach your kids is about smart spending. As a parent, it is quite difficult to say no to our children. But you know that it is never a good idea to give them everything they ask for. You need to help them get used to the idea that wanting something does not necessarily mean they should have it – especially if it is not a necessity. This lesson can serve as the foundation for smart spending habits. They can learn that even if they can afford to buy something in cash, it does not mean they should buy it.

Wait to save before you buy.

In connection with the precious lesson, you need to stress the importance of saving to your kids. Saving can help them purchase a lot of things in the future. If you have to say no to one of their requests, you can encourage them to save for it instead. If there is a toy that they want to buy, you can tell them that they can save up for it using their allowance. For younger kids, you can encourage them to help beyond their usual chores so they can earn extra money from you. They can use that to save up for the purchase that they want to make.

Spending money is fun.

While you need to encourage them to save, it is also important for you to teach your kids to enjoy spending the money that they have. This is especially true if they worked hard for that money. Have them commit to save a portion of it and then let them enjoy spending that money. They deserve whatever it is that they will spend it on. Try not to teach them to feel guilty if they do not save everything they earned. That is a mistake because they deserve to know that they can spend their money anyway they wish – as long as it is done in a smart way that will not jeopardize their financial standing.

Teaching kids smart money management skills is easy if you practice what you preach. Living by example is a lot better than hours of talking to your children about money management. Even if you spend hours teaching your kids, if they see that you are practicing something else, they are more inclined to follow what you are doing.

Money quotes from famous cartoons

If you feel like teaching your kids financial lessons seems daunting, you should know that there are a lot of tools that you can use to help you get the message across. For instance, Time for Kids and the financial editor of the “Today” show came up with a magazine that is intended to teach children money lessons. An article published on NYTimes.com explained that this magazine will target fourth, fifth and sixth graders. The publication will be distributed to schools nationwide.

There are also story books that you can use to teach your children about money. There are even cartoon shows that can teach financial lessons – if you know how to use them properly.

You should know that some famous cartoon characters have some pretty impressive quotes that you can use while teaching your kids money lessons. Here are some of them.

The past can hurt. But you can either run from it or learn from it. – Rafiki, The Lion King. This simply means it is okay to make mistakes when it comes to your money. As long as you know the lesson that you need to learn from it and you will avoid committing the same mistakes again.

Venture outside your comfort zone. The rewards are worth it. – Rapunzel, Tangled. This is a great quote that you can relate to investing. The simple rule in investing is this: the higher the risk, the higher potential there is to earn more.

The future is worth it. All the pain. All the tears. The future is worth the fight. – Martian Manhunter, DC Universe. The lesson you can connect here is about saving – specifically retirement savings. Although your kids will have to sacrifice and let go of some expenses, it will all be worth it if they end up saving a lot for their retirement.

You control your destiny – you don’t need magic to do it. And there are no magical shortcuts to solving your problems. – Merida, Brave. Merida here is telling us that when it comes to your financial problems, the shortcut is not the best way to solve them. For instance, when it comes to debt, bankruptcy may be the fastest way to solve it, but it is not always the best way for you to get out of debt. If a solution seems too easy and too good to be true, then it probably is.

Fairy tales can come true. You gotta make them happen, it all depends on you. – Tiana, Princess and the Frog. This means if you want to be rich, you need to work hard for it. Those get-rich-quick schemes are rarely true. You need to work hard to become rich. It all depends on how much you want to improve your finances – if you want it bad enough, you will do your best to reach your goal.

Do not be fooled by its commonplace appearance. Like so many things, it is not what’s outside, but what is inside that counts. – Aladdin, Aladdin. This young thief can be quoted when you are trying to teach your child about financial decisions. Just because a lot of people are doing something, buying a product or something similar, it does not mean they should follow suit. Teach your child to trust their judgement and stay true to what they want out of their finances.

There are other quotes that you can use to help teach your kids important financial lessons. You know your child best so you are in the best position to figure out the best way to teach them these important concepts.

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5 Things You Need To Know About Medicare Before You Need Medicare

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Happy old couple looking at a cameraMedicare has been a Godsend for many Americans. There are now roughly 52.3 million Americans on Medicare; 43.5 million due to age and another 8.8 million because of disability. Medicare beneficiaries averaged $11,901 in total benefits this past year of which $5045 was Part A, $5092 Part B and $1773 Part D (more about Parts A, B and D later).

If you don’t think Medicare can be incredibly helpful, consider this. Both my parents died after long hospital stays and it cost them (or us) practically nothing. I have a friend who had emergency surgery last year. The total bill for his surgery and hospital stay was north of $120,000. What did it cost him? A little over $1200.

If you haven’t noticed, the cost of medical care has skyrocketed over the past 10 years. Consumer Reports recently reported, “Person for person, health care in the U.S. costs about twice as much as it does in the rest of the developed world. In fact, if our $3 trillion health care sector were its own country, it would be the world’s fifth-largest economy. “

If you haven’t yet reached the age where you’re eligible for Medicare we don’t have to tell you how expensive health insurance can be. But even if you’re a number of years away from 65 there are some things you need to know about Medicare before you need it.

There are four parts

There are four parts to Medicare. Part A includes hospital insurance. Part B includes medical insurance. Part C is known as Medicare Advantage. It includes all the benefits and services of Parts A and B along with some additional benefits and is operated by Medicare-approved private insurance companies. Part D, which was introduced under President George W. Bush, added prescription drug coverage.

The eligibility requirements

To be eligible for the original Medicare (Parts A and B) you must be either a U.S. citizen or legal resident and age 65. You would also qualify if you have been entitled to Social Security disability for at least two years, have end-state renal disease, require transplant or dialysis and are currently insured.

When to enroll

If you receive Social Security, U.S. Civil Service or Railroad Retirement benefits you will be automatically enrolled in Medicare Part A. If not there is an important seven-month enrollment period that overlaps your 65th birthday. The way it works is that if you want immediate coverage you must apply three months before you turn 65. If you wait and apply during the four months following your 65th birthday, you won’t have coverage for one to three months after you enroll.

If you fail to enroll during the seven-month period you will be penalized unless you or your spouse has health insurance where you work. The way this penalty works is for every year you fail to sign up, your Part B premium will go up 10% … and that’s forever.

There is a special enrollment period if you or your spouse is over 65 and covered by health insurance at your workplace. If this is the case you could delay signing up. If you do enroll then Medicare becomes the second payer. And if you enroll in Part B you will receive practically no benefits. You may also lose your Medicap enrollment guarantee.

What it costs

Generally speaking there is no cost for Medicare Part A. If there is some reason why you don’t qualify you can buy Part A coverage for a premium.

If you are eligible for Part A you’re also eligible for Part B. However, it ‘s optional. Premiums for Part B coverage start at $104.90 and are based on your adjusted gross income. If you sign up for Part B it will be automatically deducted from your Social Security monthly payments. Part B covers physician and outpatient care, home health, medical supplies and preventive services. It requires a co-pay of 20% of the covered benefit.Medicare doesn’t pay for everything

As great as Medicare can be, Parts A and B won’t pay all your medical expenses because of their deductibles and co-pays. In the case of Part A (hospital) coverage, there is a cost or deductible of $1216 for the first 60 days. It then jumps to an additional $321.50 a day for days 61 through 90 and then $630 a day for hospital stays beyond that.

These deductibles and co-pays are reasons for the afore mentioned Medigap or Medicare Supplement Insurance, which is designed to fill the “gap” between what Medicare covers and its deductibles and co-pays. There are 10 standardized Medigap policies to choose from. As you might guess, the more these plans cover the more they cost. As an example of this, Medicare Supplement Insurance Plan “A” includes 100% of Parts A and B but not the Part B deductibles. Plan C covers 100% of Parts A and B and includes 100% of Part B deductibles. Plan G is sort of the Cadillac of these plans as it provides 100% coverage of all deductibles, co-pays, excess charges; hospice care and skilled nursing facility care coinsurance.

The paperwork

The one downside of Medicare coverage is the bills and it’s important to review them carefully. We know that when you see your charges there will be a lot of medical mumbo-jumbo thrown at you so you may have to get out your dictionary or call your healthcare provider for some explanations. As an example of this the term “transdermal Clonidine procedure” means you had a Clonidine patch for some period of time. If you don’t remember having a patch or if you don’t have hypertension (which is what Clonidine is meant to treat) you need to call and dispute this.

medical debtBe sure to pay you bills

As painful as it might be you need to pay your medical bills as quickly as you can. If you don’t, your healthcare provider(s) could turn them over to a bill collector and this is something you definitely don’t want to happen. If you can’t pay your bills you should contact your healthcare provider and ask about arranging a payment plan. Depending on your circumstances you might also be able to negotiate a reduction in you bills. Barring that you could put the charges on a credit card or cards or get a debt consolidation loan. While these alternatives might not seem very appealing they are definitely better than letting your medical bills go to a collection agency as this would not only have a bad effect on your life but would also severely damage your credit score.

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Different Ways Your Preteen Can Earn Money This Summer

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smiling preteen with a garden rake

If you want your children to be financially literate after summer, you may want to encourage them to earn money during their free time. There are a lot of fun activities that can help them earn extra cash and if they choose the right one, it could prove to be quite educational too. Pointing out the things that they can buy with their own money might motivate your kids to go along with your idea.

Of course, you will encourage your children to earn an income – not just for the sake of having money to spend, but also to help them learn a thing or two about personal finances. The road to financial literacy is long and they will benefit a lot if they start their lessons at a young age.

When children are taught the right financial habits and concepts, they are more inclined to succeed in life. Developing the habits early on will help them make the right decisions at an early age. We all know that among the first financial decisions that your child will make involves student loans. If the right financial concepts and habits are instilled in them early on, they are bound to choose the right path when it comes to their student loans and other college expenses.

According to an article published on USAToday.com, teens are expected to be financially competent before they enter into college. The article cited a study done by the Organization for Economic Cooperation and Development that revealed how the US only ranked 9 out of 18 countries when it comes to teen financial literacy. Obviously, there is a lot of room for improvement – considering the fact that the student loan problem already reached its trillion mark.

Although efforts are being made to improve the curriculum to include personal finance lessons, we all know that a financially literate individual is shaped at home. That being said, you need to realize that motivating your children to earn money this summer can be a great step towards a successful financial future.

Encourage your kids to make money this summer

According to FinancialEducatorsCouncil.org, financial decision making can be influenced by proper information, giving incentives for good decisions and allowing them to apply the information in real-life situations. When you are in your preteens, the best way to learn about money management is to start earning money.

The best age to encourage children to earn money is during their preteens or tweens. This is the age wherein they shift from being shy to becoming more independent. The idea of earning their own cash would appeal to them so convincing them to get a part time job would not be too hard to do. Of course, you want to make sure that the job they will choose will not suck the fun out of their summer break.

Here are a couple of options for your preteens to earn money this summer.

  • Babysitter. In truth, babysitting jobs for preteens have changed over the years. Parents will rarely leave their young ones with preteens and would opt for older babysitters. However, tweens can be hired to babysit just so the parents can do chores around the house. They simply have to keep the kids occupied to give the parents some peace and quiet for a few hours.
  • Senior helper. Another option for preteens is helping out the elderly. Some of these seniors simply need someone to be with them for a couple of hours so they will not feel alone.  Your child can help out around the house too like sweeping or putting some things around the house in order.
  • Dog walker. Some busy neighbors may be in need of someone to walk their dogs. This is a job that preteens can also opt for. It will only take a couple of hours to do this and can help tweens earn money easily.
  • Pet sitter. Speaking of animals, you can also encourage your kids to look after the pets of vacationing neighbors. Summer is a time to travel for some families and your kids can help look after any pets that will be left behind.
  • Gardener. This job involves simple tasks like mowing the lawn, trimming the bushes or keeping the garden clean. Cleaning the garden can be time consuming – something that some neighbors may not have time to do.
  • Car washer. Another job that your kids can opt for is washing cars. Have them go around the neighborhood to offer this service. It can be a once a week thing – depending on the needs on the person who owns the car.

Once your children starts earning money, it is your chance to teach them smart money management skills. They will be tempted to spend everything at once. You need to stop them from doing this by teaching them the right money habits.

Financial lessons children can learn while earning an income

In a report published on Archives.gov, it is revealed that a lot of kids do not know enough about money management. At least, it is not enough to make them responsible money managers when they grow up.

Since you have started by encouraging them to earn money during summer, you may want to continue by teaching them a couple of things about personal finances.

Here are a couple of lessons that you may want to discuss with them.

  • Value of money. By earning money on their own, you are teaching your children the value of money. They now understand that money do not grow on trees. You need to work hard to earn them. That should keep them from being too insensitive when asking money from you.
  • Budgeting. You may want to give them a lesson or two about budgeting. In case they want to stop working for the summer, you can teach them how to stretch their money so it will last until before school starts.
  • Saving. Instead of spending their hard earned money, you can encourage your kids to save. This is a great lesson for those who have recurring jobs. When they get their first paycheck, encourage your kids to save it so they can buy something more expensive at the end of summer. Or you can encourage them to save the whole paycheck for next year so they can go on a vacation or something.
  • Investing. As you are teaching them about saving, you may want to explain a bit about investing. For instance, you can discuss with them the value of saving up for their college fund. To maximize the growth of the money, discuss with them how investing can help increase their money in ways that a savings account cannot.
  • Smart spending. In case your child wants to spend their money, teach them how to do so in a smart way. While saving is a great idea, your kids deserve to enjoy the money they earned. Let them decide but encourage them to spend their money on things that will enrich their lives even further.

Take note that there are several options to make financial lessons appealing to kids. It does not have to be boring. In fact, there are ways to teach financial lessons through cartoon shows. If your child is interested in sports, you can relate financial concepts to that too. Or you can point out prominent individuals who have made good decisions with their money. You can also discuss individuals who have made mistakes. It really depends on what you think your kid can relate to.

Here is a video that will give you tips on how to teach kids about personal finances.

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3 Tips That May Not Be The Best Financial Advice For You

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couple with a financial expertWhile there is a financial advice for every generation, there is still a need for you to consider if these tips are really applicable to you. There is no one size fits all financial management. You need to understand which of them should be implemented in your life based on your specific financial situation.

There are a lot of gurus out there who are truthfully, sincere about helping you improve your financial standing. But before you apply their teachings in your life, make sure you understand what is at stake first. It is not enough that you keep on implementing what you hear. You need to filter out what will benefit you the most.

3 financial tips that are not always good for you

There are certain financial tips that when you first hear about them, you would want to implement them immediately. But before you do that, please make sure that it is an advice that you will really benefit from. If not, you can lose more money because of it.

Here are three financial advices that you need to consider carefully before you commit to them.

Financial advice 1: Automate your bills payments

There are financial advisers who tell consumers to automate their payments so it will never go to default. This makes a lot of sense if you think about it. You do not have to worry about making deadlines and keeping up with all the money that you have to send out every month. You do not have to juggle with due dates and all the details that come with making payments each month. Best of all, you do not have to worry about late payments.

But according to BankingMyWay.com, a pitfall of automating your payments is you will get lazy. The convenience that makes this mode of payment appealing can also be its downfall. You can easily lose track of all your payments. Since you are no longer thinking about them every month, you could think that your financial obligations are not as demanding as you thought it was. That could make opening new accounts more tempting.

You can also miss out on any machine related mistakes that could have caused you to pay more than what your should. Or it can cause you to pay less which will end up making you incur late penalty fees. Not only that, you can be in danger of overdrafting on your account. That is something that you do not want to happen.

Unless you are sure that you can control your spending and you can keep track of your payment, you may want to rethink following this financial advice.

Financial advice 2: Using credit cards for their rewards.

We have heard this advice before – if you will take a credit card, make sure you can benefit from the rewards. Some people are only interested in applying for the card because of the rewards and discounts they will get immediately. According to the data provided by CardHub.com, the initial rewards and bonuses of credit cards are 10% more in the first quarter of 2014 as compared to the same period in 2013. This can be very tempting to grab since the points and miles-based rewards are considered to be at an all time high when it comes to value.

But even if that is true, you need to exert caution. These cards will only be beneficial if it fits your spending lifestyle. If not, then do not avail of it. They will only be a temptation to increase your purchase.

Financial advice 3: Do not touch your emergency fund.

There is an interesting article from Investopedia.com that discussed why an emergency fund is a bad idea. According to the article, it is overly prudent to create an emergency fund. If you understand the risk and your other options, you will realize that there are better places to put your money than to let it sleep in your bank account.

At least, this is true if you are after financial wealth.

If you do the math, a person who lives on $30,000 a year will have to save up at least $22,500 to have enough emergency funds. But think about it. The average interest on your savings account is a mere $1-2%. That only translates to $225 to $450 growth. Even the ones with the highest yields of 3.5% will give you less than $790 of annual growth.

Now if you put that money on an investment that will earn you 15%, then it will earn you a whopping $3,375 per year. Don’t you think the need for an emergency fund is not too smart at this point? Just think about it.

You can probably set aside 3 months worth emergency funds and put the rest in an investment that you can liquidate easily should the need arises. That is how you setup your money to work for you.

How to filter the money advices you get

In truth, there is no such thing as a bad financial advice. Even putting yourself in debt is a good advice – but again, it has to depend on your unique situation. We were all told to eliminate debt but there are benefits to being in debt. Things like having the opportunity to raise your credit score is one. It can also help put money in your pocket – if you use it correctly.

The key is to know how you will filter out the advices that will have a good effect on your financial life and those that will not. Here are 5 tips that should help you decide what advice you can follow and what you need to forget about.

  • Have a clear idea of your financial goal. If you do not have one, then go think of a goal. It will not only give your financial habits direction, it will also help motivate you to improve your financial situation. If you have financial goals, you simply have to determine if the financial advice that you are getting will bring you closer to it. If not, then you can choose not to follow.
  • Know your financial behavior and situation. If you are also aware of your current financial standing, it will be easy for you to determine if an advice will be good for you or not. It is also vital for you to understand your own personal behavior to see if it will bring you closer to your goal or not.
  • Keep your financial education updated. Financial literacy is an important aspect of financial growth. It is also give you the foundation to choose the advices that you will follow. So make sure you are updated not just on the concepts, but the latest news about the financial situation around you. That way, you can know if a certain financial advice is still relevant based on the current economic conditions in the country. Someone might be telling you something that used to be effective in the past but not under the present economy.

In the end, having a clear picture of what you want, what you are capable of and what is realistic will help you make smart choices about your money. Keep in mind that a certain plan may work well with someone but it does not necessarily mean it will do the same for you. Think about that before you really choose to follow a financial advice.

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5 Routines to Practice Financial Fitness

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Consumer running while carrying a briefcaseFinancial fitness is an important aspect of our financial literacy. Similar to athletes participating in several sports, they prepare long and hard for each game. They live with discipline and dedication in order to achieve their goals. The more they practice and prepare for their game day, the better their performance is on game day. They are able to address the needs of the game and quickly adjust as needed.

The same principle goes for consumers in their daily battle with finances. It does not happen overnight. You do not wake up the next morning with all your debts paid off, all your bills paid for, your 401(k) at retirement level and emergency fund that can last you more years than you need. Even if you win the lottery today, it will be a short lived cash happiness without being financially fit and literate.

The Bleacherreport.com even shows that heading to off season, the NBA teams are just as concerned with their financial fitness as they are in keeping their players fit and healthy. The teams need money to pay the salaries of their players and they need the players to generate income for the team. Both area of the business and sport needs to put a premium on fitness to ensure that they can continue their purpose.

Practicing Financial Fitness

One of the world marathon majors, the New York city marathon is one of the biggest marathon events being organized in the world. Now carrying a different sponsor, it used to be ING New York CIty Marathon but is now branded TCS New York CIty Marathon. The event is slated on November 2, 2014 and is set against another challenging course.

The race begins in Staten Island in Fort Wadsworth near the Verrazano-Narrows Bridge. It then passes through Brooklyn and reach the Pulaski Bridge signifying the racers are halfway in the course. The road track proceeds to cover East River via the Queensboro Bridge entering Manhattan. Runners proceed to Willis Avenue Bridge and returns to Madison Avenue Bridge before entering Central Park through Harlem down Fifth Avenue. The race concludes by going back to Columbus Circle near Tavern on the Green.

That is a full marathon circuit and anyone taking that course on November 2 needs to be physically fit. Relating that to financial fitness, that course is similar to the challenges we have to take on in life. As the runners race to the finish line, we practice financial management to get to our goal. But we do not just get up and run the race just as we do not instantaneously get to our financial goals. Aside from the having a financial health checklist, we need to prepare for the actual financial challenge.

Set a goal

The first step is to financial fitness is setting a goal. Just as the marathon runners in New York city has one goal in mind, which is crossing the finish line at a good time, consumers need to also have a goal in mind. This serves as a target to aim for and can regularly remind of the ultimate pay off on all your financial decisions.

Having a goal helps you keep your focus. Say the goal is to pay off your student loan as fast as you can. That goal will help guide you in all your financial decision making. Just like the runners whose main goal is to finish the race, their preparations are all leading to that purpose. They train to get fit to achieve that goal. Your roadmap to your financial goal should be built around your main purpose. It has to lead to your achievement of your financial target.

Budget routine

There are people who are having a hard time grasping and understanding how budgeting works. This plays an important role in practicing financial fitness. Putting together a budget is your blueprint to achieve your goal. It is your step by step process in making sure you are on the right track and don’t go astray.

New York marathon runners train with a specific routine. They follow specific strength training workouts and check their food intake. They measure their performance to check if they are improving and staying on course. This holds true for consumer budgeting.

Your budget needs to keep you on track in achieving your goal. It is there to remind you how much you need every month to cover your expenses. It also lists down all your expenses every month so you can quickly do an audit n where your money is going. It can help you curb unnecessary expense items and save you extra dollars every month

Get debt down

Most runners have an ideal weight that they need to get down to in order to run more efficiently. In financial fitness, think of debt as excess weight that is pulling you down. Physically speaking, it is best to shed of excess weight until you are comfortable with your own body and you can move and go around as much as you want.

This is the same with your finances. Getting debt down can help you move freely with your finances. It opens more financial opportunities and just gives you more legroom to go around. Debt ties up your income to interest payments which is eating up on what could possibly be your emergency fund or retirement fund.

Avoid temptation

There will be temptations along the way as you reach for your goal. For New York Marathon runners, it could be skipping a training day or cheating on their diet. It could also be going around not being serious with the preparations for the run like sleeping late and partying all night long. These temptations steer them away from achieving their goal.

Same goes for financial fitness. Steering away from financial temptations can be a challenge. Just like getting that new mobile gadget or putting in your online cart that discounted European cruise. These are temptations when it will keep you away from your main goal. If the money that was supposed to be extra payment for student loans is used to buy a new guitar just for hobby, then that is a temptation. But if your bread and butter is producing music, then that guitar can be an investment.

Get professional help

New York marathon runners are mostly professional runners. And majority of them have had professional trainers guiding them to their peak health and condition to take on the gruelling marathon course. This is the same for consumers on the road to financial fitness.

There are professionals out there that can help you make better decisions with your finances. There are those as well that can help you manage your debts better. They offer professional pieces of advice that you can use to get out of debt.

Benefits of Financial Fitness

Practicing financial fitness can yield benefits for the consumer. Some of these are:

  • Less stress. People who are financially fit are able to manage their finances better and are in top of the situation. This gives the peace of mind knowing how they are financially performing. Taking a prevention-stance is better than problem-solving mindframe.
  • Better health. Taking on a financially fit goal ripples out to physical fitness. It gives you more sleep and takes away worry. It gives you a good appetite and you are able to eat healthy food rather than wolfing down on ice cream and cake because of too much worrying.
  • Improved focus. You are able to concentrate as well on the task at hand rather than thinking of how to pay for the bill coming in at the end of the week rather than paying attention on your current task.

Investopedia.com tells consumers that fitness is a step by step process. This is made up of small positive financial habits that we maintain over the course of time. As we do it over and over again, we build it into our own routine and helps us get to our goal faster.

In most cases, your financial health is connected with your physical health. So if you want to be physically fit, you also have to work on your personal finances. Here is a video from NBC15 about financial health.

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