One of the best ways to change bad spending habits is to cut up all your credit cards.
Money that you spend using a credit card is money that doesn’t belong to you. You have to pay it back – along with interest, which makes the purchase price of your item that much more expensive. A debit card is much more preferable. That way you can’t spend more than you have in the bank, but even that can be dangerous if you are prone to impulse buying of luxury items.

Another way to change your bad spending habits is to sit down and really look at the things you have spent money on in the last few months. Ask yourself if they were really needs or wants. A want can be classified as something that you can get by without and still live in reasonable comfort. That expensive pair of shoes could be a want – unless you don’t have any! Even some food can be considered a want, rather than a need. Dining out is not a need unless it is part of your job description. Salesmen for instance often close a deal over a meal. In this case their meal is a need. Taking the kids out every evening is not.

Once you have defined what your needs are against your wants, the next step is to look at your future. Do you have a big need coming up in the near or distant future? Maybe you need to start saving for the children’s education or your retirement. Maybe you have decided to save for something that isn’t really a need, but will help you to learn to save, so it is good in itself – something like a trip overseas or a cruise.

This can be classed as setting long-term goals and will help you to change your bad spending habits. You will be motivated by what you want (or need) in the future. Taking charge of the finances by keeping a record of all the incoming and outgoing finances can also help you. By seeing exactly where your money is going, you may be more motivated to save it instead of spending. Just sitting down and keeping a record of where all that small change went to can make you more aware of spending habits that are unnecessary.

For instance, buying your morning coffee on the way to work can add up to a sizeable amount by the end of the month, especially when there is good coffee to be had at home. The same goes for buying your lunch. The cost of one bought lunch will keep you in lunches for a week if you make them at home. Most work places provide a fridge to keep food in; otherwise, you can take yours in an insulated bag.

Changing bad spending habits can only help you in the long run. Why not give it a go? You’ll be glad you did.

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The best way to teach young children about money is to let them have some. Since most of us have to work for our money, it is a good idea to give them chores to do by which they can earn money. These should be different from the chores they must do as part of the family. You have to do chores that you don’t get paid for and so should they.

Just as you would prefer to do a job that you like, so they should get to choose what they would like to do to earn their own money. Of course it will still be a chore around the home if they are very small, but as they get older and are more responsible they can accept paying jobs from others, such as babysitting, raking leaves and walking the neighbors dog, to mention just a few. Make sure they choose something they can do quite easily, or they will tire of it quickly. They need to be praised for it too.

Once they have agreed what job they will do, show them how to keep an account of their income in a simple exercise book. They should have a moneybox or purse to keep their money in and should also have the pleasure of spending it on something, after they have saved it up. They will love to get their money out and count it; if they are really young they will probably even want to play with it. Let them do this until they get used to having their own money, but encourage them to always put it away in a safe place when they’ve finished.

After they have done their chore, be sure to pay them promptly. This will give them greater satisfaction than if they have to wait for payment. Older children can save up for some time before they spend their money on something they may want, like an ipod. Younger children may want to rush down to the mall and spend theirs the moment they receive it. Try to accommodate this desire at least at first. As they get older they will learn to wait a little longer to save for something ‘bigger’.

Some of the chores children can do are: -

* Feeding a pet.
* Watering plants or the garden.
* Vacuuming one room or the whole house, depending on their age.
* Baking cakes or biscuits for the family.
* Cooking dinner one night a week.
* Dusting the ornaments once a week.
* Cleaning the bathroom.
* Washing the car.

When young children first start doing a paid chore, they may need prompting to do it. If they then don’t keep on doing without being told over and over, you should just let it go. They will soon realize that they are not getting any money to spend. If they are happy about this, then perhaps they are getting too much pocket money, or maybe they aren’t ready for the responsibility yet. In that case, you can include them in the household economy by pointing out the prices of things in the supermarket and quiz them to see if they can work out what will be the best buy. This will help to make them aware of what things cost and that you must keep to a budget.

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Every family unit, no matter how big or how small, needs to plan their finances. Why?
For starters, no one wants to run into debt they can’t pay, or lose a purchase they have paid a deposit on and then find they can’t keep up with the payments. If the electric is due and you don’t have enough in the kitty to pay for it, then disaster isn’t far from your door. If you plan your family budget wisely, these problems can be avoided.

Not only will you avoid problems of debt and loss; if you have a good stable financial plan and stick to it, you’ll find that impulse buying will be less of a problem and you could end up having more to spend on the luxuries than you had anticipated. You will be able to save for the important things like the children’s education, a holiday or a new car when it becomes necessary.

With a budget, you will always know when the major bills are due and that you can pay them. You will be able to have finances set aside for unexpected problems such as dental care, or doctors and hospital fees, the washing machine breaking down or car repairs. Of course, we all hope that these problems won’t occur, but in real life teeth sometimes ache and accidents do happen. It’s far better to be prepared than to be caught without the cash.

Budgeting your finances may seem like a bore, but you may be surprised how easy it is to find ways in which you can save money. Sometimes we waste money without realizing we are doing so. This can be especially so in food purchases. Many people complain about their checkout costs without stopping to consider if all that soda pop and chips are really necessary. Snacks like these could easily be kept as treats for special events like birthdays. You’ll be surprised at the amount of cash you’ll save; your waistline will thank you and the children’s health will improve; all good reasons for keeping to a good family budget.

Once a family budget is implemented, the stress of wondering if or how you’ll pay the bills will be eliminated. It will also help to teach your children to be responsible teenagers and adults, as they learn from you how to care for their own financial needs.

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