Kiddipedia Financial Support Information

Kiddipedia Financial Support Information

New Year is just around the corner, but you don’t have to wait until December 31st to start marking your list of resolutions. The start of a new year is often the opportunity to have a fresh slate, but there are some things you can’t leave behind as you launch into rowdy versions of Auld Lang Syne—like COVID and debt. So today, let’s make some top money resolutions you can start today.

Kiss goodbye your credit card

With tap and pay, and After pay, it’s easy to lose track of how much money you’re spending. Even if you have a credit card set aside for emergencies, it’s far too simple to keep shifting the goalposts of what constitutes a life and death situation. Christmas shopping becomes an emergency, the new school shoes and back to school stationery becomes an emergency. before you realise it, you’ve maxed out your emergency credit card. If you’re only paying the minimum repayments, that’s where you get yourself into trouble. Stop using your credit card and if you want to purchase luxuries ensure you have the cash available.

Start a savings account

As soon as you get paid, use the 50/30/20 rule to portion your wages if you don’t have a set budget. The numbers are percentage rates—50% towards your necessities like rent, gas and food, 30% towards things that make life worth living and 20% into a savings account that remains untouched until you have an emergency buffer fund (enough to carry your family for 3 months if you lost your job).

Track your expenses

This can be an effective way to see where you are haemorrhaging money. There are a number of great apps that can pinpoint where most of your salary seems to go. Some of the major banking apps as well as apps like ELMO and YNAB (You Need a Budget) provide insight as to where your money goes. For example, it will give you an overview of whether most of your money is spent on utilities, food, travel or entertainment.

Teach your children good saving habits

With tap and go, some children are losing the ability to deal with cash, understand how much items costs and how much change they should receive. You can empower your kids with good savings habits by going back to the good old-fashioned days where kids got cash to put in piggy banks. Give them pocket money for chores and let them experience the joys of saving up for their ‘want list’ items. Let them be in charge of counting up how much they have saved and choosing what they want to spend it on.

Consult a financial advisor

Once you’ve got an emergency buffer and started to save, don’t leave your money sitting in your bank account, make it work for you and grow. A financial advisor can provide you with invaluable insight on what type of savings accounts yield the best interest rates or other ways you can generate a passive income.