we all are KIDS !!! SMARTER ONE'S RT....

Teach Your Children the Value of Money
"Reading, writing, arithmetic" -- too bad that list doesn't include personal finance. Most kids learn the basics of money and making change in grammar school, but probably won't learn how to manage money unless they choose finance as a career path. That means it is up to all of us to see that our children reach adulthood prepared to face life's fiscal challenges.

2
Earlier Is Better

The benefits of teaching your children about money early on are both immediate and long term. In the short term, they may develop strong saving habits, learn how to make smart purchases, begin to understand the true meaning of "investment," and perhaps even learn why they can't immediately get everything they want. In the long term, you can help them avoid accumulating debt. And by teaching the value of saving for the future, you can help them plan for financial security.


As you think about how, what, and when to teach your children, consider letting them direct you by using their natural inquisitiveness. (But remember, it's never too late to start teaching -- even adults can be taught the basics of personal finance.)

3
Where Does Money Come From?

An ideal time to begin teaching your children about the basics of money is when they first begin to notice it. In a child's world, money comes from Mom and Dad's pockets. And when Mom and Dad are tapped, a machine magically spouts dollars after merely pushing a few buttons. It's natural for them to assume that money is readily available whenever it's needed.
When they can't understand why you can't meet their every demand -- and you're about to use a standby response such as, "Money doesn't grow on trees" -- remember that a more constructive explanation may serve both of you better.
Even very young children can begin to understand the concept of earning money. Explain to your children that money is earned by working, and that you can only spend what you earn. To help them understand what it's like to get paid on a schedule, begin paying an allowance. Then help them set goals for how they spend and save their allowance. It's important, however, to make sure that you stick to the payment schedule; otherwise the lesson may be lost.


Your Child Could Become a Millionaire
This chart shows the growth, compounded at 8% monthly, of an investment of $100 per month beginning at age 4 and ending at age 18, assuming that the investment remains untouched until age 62. This example is hypothetical and does not represent the performance of any actual investment.

4
Children and Allowances

Experts differ on whether or not allowances should be tied to household chores. Although many people say children will learn more about personal responsibility if they are NOT paid for pitching in around the home, others feel it teaches them valuable lessons about working and earning. You might consider paying your children for chores outside of daily duties, such as helping to garden or wash the family car.
5



Make Saving Interesting

You hear it every time you walk by a toy store: "I want...Buy me this... !" Again, pause and take a moment before responding. This situation presents a great opportunity to teach another important lesson about personal finance: savings and interest. Explain that people often save their money for items they want to buy.
A simple savings lesson involves using a piggy bank, shoe box, or empty peanut butter jar. Make the lesson fun by having your children decorate the "bank," while explaining to them how you also use a real bank to save your money. Encourage your children to save a portion of their allowance for a special goal. As they save money, you might reward them with a small additional amount, just like a bank pays interest. At the end of each month, calculate how much they have saved and then chip in a certain percentage as interest.
Last, to further encourage the learning process, you might consider plotting a visual chart of their savings (include the goal) so they can easily see their savings grow. Remember to keep it as simple as possible, geared toward each child's level of understanding.

6
Banking and Investing

Once your children have been saving enough to accumulate $10 or $20, take them to the bank to open their first savings account. Most community banks will allow children to open first accounts with low minimum deposits. Some even have accounts especially marketed to kids to make the learning process fun. Make sure that your children receive a passbook so they can see the progress of their savings efforts, as well as the interest that accrues.


Once your children have mastered banking with an institution, you can begin to teach them about investing. When your children want something that they can't quite afford, discuss the value of saving versus borrowing. If you do extend credit, use a written IOU, establish a repayment schedule, and charge interest. By doing this, you establish the framework for teaching your children that bonds and certificates of deposit are IOUs representing loans from investors to institutions.

7
Compounding

As your children get older and perhaps take on part-time jobs to earn more money, their savings will likely amass at a quicker rate. Now is the time to review the lesson of compounding, or the ability of earnings to build upon themselves. Explain how compounding can be more dramatic over time; the longer money is left alone, the greater the effect. This can lead into a discussion about investing and how certain investments can have a greater ability to compound over time.
Giving a gift of stocks of well-established or kid-oriented companies can be ideal ways to teach your children about investing. Most children would love to think of themselves as owners of Ben & Jerry's, Disney, or Toys "R" Us. Some companies even have shareholder meetings directed to children.
Mutual funds may be good vehicles as well. Like banks, some fund companies have specific programs to teach children about investing. Often such funds have low initial investments, as well as marketing materials designed to make the investing process fun.



8
A Little Learning Can Pay Off

Teaching your children about our complex financial system may seem daunting, but you can help put your child on the right track by encouraging smart habits now.
Is it worth your time and effort to help your children learn about money? As Benjamin Franklin once said, "An investment in knowledge always pays the best interest." Answering your children's questions honestly and in terms they'll understand can help them begin life on sound financial footing.

Summary

The benefits of teaching your children about money can be both short and long term. Let your children help you determine how to teach them. Use their questions to develop lessons.
Explain to children that money is earned. Consider paying them for helping with certain chores.
Use a piggy bank to help teach about savings and interest. Set a savings goal to encourage your children to save some of their allowance. Calculate how much is saved each month and chip in a certain percentage as interest.
Take your children to the bank to open a savings account requiring a lower minimum deposit.
If you extend credit, issue an IOU, set a repayment schedule, and charge interest.
Review compounding, or the ability of interest to build upon itself.
Once your children begin earning their own money through part-time jobs, introduce them to investments such as stocks and mutual funds.

Checklist

If they're old enough, help your children set up a plan to save for their own goals (such as a new video game) and other accounts for family goals (such as paying for college).
Agree on an amount of their savings that you'll "match."
Schedule time to talk about how investing works and how it may enable people to reach their financial goals faster.


Talk to your children about good shopping habits. Perhaps you can ask them to clip coupons and let them keep some of the savings.

WHAT TO DO B4 U INVEST !!!!!!

Prerequisites to investing

1. LIVE WITHIN UR MEANS:
If u find urself constantly running short of cash towardthe end of the month, you may need to institute better budget controls and probably will not have any money available for investments. On the other hand , if u are not overly indebted and generally have money available for regular expenses,small gifts and occasional indulgences, you shld begin thinking about an investment program.

2. CONTINUE A SAVINGS PROGRAM:
A good financial manager saves regularly to acquire goods and services or to build an emergency fund. Even u must save so u can make periodic investments of the collected savings !

3. CARRY ADEQUATE INSURANCE PROTECTION:
Liability insurance protects your assets and lifestyle in the event you are sued, and health insurance will reduce expenses if u or a member of ur family falls ill . life insurances are frequently purchased in conjunction with investments to protect the lifestyle of dependents in the event of an investors death.

4. THIS HE MOST IMPORTANT : FINANCIAL LITERACY!!!!
Before u start investing in stocks it would be advisable to be familiar with the terms and fundamentals ,, its not difficult .. u will learn tht with time .. try reading business paper . it will definitely help .there are lots of sites tht will help u learn better too!!!! U can also practice with virtual money at www. moneybhai.com , it’s a beautiful site and free of cost .

"THE GURU SAYS"

INSPIRE ..THTS WHT THIS DOES!!!!!!



Bill Gates recently gave a speech at a High School

He talked about 11 things they did not and will not learn in school . He talks about how feel-good, politically correct teachings created a generation of kids with no concept of reality and how this concept set them up for failure in the real world.

Rule 1 : Life is not fair - get used to it!

Rule 2 : The world won't care about your self-esteem. The world will expect you to accomplish something BEFORE you feel good about yourself.

Rule 3: You will NOT make $60,000 a year right out of high school. You won't be a vice-president with a car phone until you earn both.

Rule 4 : If you think your teacher is tough, wait till you get a boss.

Rule 5: Flipping burgers is not beneath your dignity. Your Grandparents had a different word for burger flipping: they called it opportunity.

Rule 6 : If you mess up, it's not your parents' fault, so don't whine about your mistakes, learn from them.

Rule 7: Before you were born, your parents weren't as boring as they are now. They got that way from paying your bills, cleaning your clothes and listening to you talk about how cool you thought you were. So before you save the rain forest from the parasites of your parent's generation, try delousing the closet in your own room.

Rule 8 : Your school may have done away with winners and losers, but life HAS NOT. In some schools, they have abolished failing grades and they'll give you as MANY TIMES as you want to get the right answer. This doesn't bear the slightest resemblance to ANYTHING in real life.
Rule 9 : Life is not divided into semesters. You don't get summers off and very few employers are interested in helping you FIND YOURSELF. Do that on your own time.

Rule 10: Television is NOT real life. In real life people actually have to leave the coffee shop and go to jobs. Rule 11: Be nice to nerds. Chances are you'll end up working for one.

lifes a journey !!!!!!!

hello folks ,,,,,, lots to chat ,diverse topic ,,,,,,, and which tht matters us the most !!!! we all want to be successful in life .. have a rich life full of comfort and happiness...!!! pleasure and joy .. struggling through school days and then college ,,,for a brighter future !!!!!! we all know trignometric ratios , laws of organisation , programming , .....but when it comes to money ,,we have no clue !!!!!! we all crave for it ......." THTS the most essential nutrient , I call it "VITAMIN M"........vitamin money !!!.......money is not everything ,but something of importance which has to be respected upon !!! if u dont respect it or take care of it ...it wont take care of u either!!!!!!!... ..............we all work hard . to earn it !!!! and if i tell u magic mantra for doubling it!!! how would u feel .. im not jokin .... u will see for urself..!!!

• why rich become still richer !!!!!!

millionares are not necesaarily ppl with high education or degrees!!! they know how to use their money !!!!!and they do use it !!!

• ASSETS AND LIABILITIES :

assets are something which will get money in your pocket ( for eg: if u buy a house and then rent it out .. everymonth u will receive payment !!! irrespective of ur work !!! its like money tree .if u plant once then it will grow and keep on givin fruits )

liabilities are something tht take away money from ur pockets !!(eg ; ur cell phone ,creditcards ,bills,taxes...,travelling tickets ,house rents,loans .

EXAMPLE PERSONIFIED"""".......lets take an example ...if suppose mr X, has won a lottery of 1 million dollars$$$$.. wht will he do ... if he is buying a bigger house , a new branded sports car, hi tech assesories,,,wht he is really doin is buying liablities ,,these things wont get him returns on his money ,,and think abt the maintenance cost!!!!!! so u and i both know .. hell be needing a lottery ticket once again !!!!!!!.. BUT had he been wise and invested in mutual funds,shares or just saved in banks(if u get good savings returns!!),, he would have been a much happier person down the lane !!!! and would have enjoyed buying a good car with the returns he would receive from his investment ...and his investment growing with time and so his wallet too!$$$$.....!!!!!! u all agree rt !!......HMMMM Y ARE WE WAITIN FOR ?,,lets begin ........

• THE FORMULA :

so the best way to be financially free is to have lots of assests .and lesser and lesser liabilities, while there is no upper limit on assests .. u can have as much as u want ,,,(lots on assets later!!! wht are the different kinds!!!)

• ASSETS :

1. REAL ESTATE:( renting houses,purchasing it cheaply and selling during appreciation)
2. STOCK ,BONDS, ( THIS is the best as far as returns are concerned ,,, )
3. MUTUAL FUNDS..(THIS is catching up !! in the country as more and more ppl are buying it )
4. INSURANCE:(many insurance policies have schemes , which insure u as well has have good plans for return on investments !!! much more than banks give !! check this out !!)
5. BANKS:( ppl usually like saving money in banks ..they get arnd 9 to 10%on fixed deposits .. but its actually less ,,the amnt decreases due to inflation and taxes!! more on this later)
6. HOME:( well saving it under ur pillow makes no sense!! at all...... it wont grow and u might get a heart attack if termites feast on it !!!remember kasim the miser !!!!)
7. PRECIOUS METAL: it depends ,,, if u buy it for low and sell it high then u make profit ,,but thts risky as its prices fluctuate heavily!!!and u dont get interest on it !!
8. "BUSINESS": this is the most beautiful kind of asset !!! they will provide u with good amnt of returns !!!if u have drive and enthusiasm !! go for it , try out ur idea !! who knows u might be the next bill gates !! and i really wish u be one !!!( if u wanna start one ..have any ideas ,, contact me .... also feel free to ask any queries !!)

...............COMING SOON .............

• THE DEEP OCEAN: IN DEPTH ANALYSIS OF THE ASSETS ..WHICH WE CAN BANK UPON ..

FOR PEOPLE WHO WANT TO KNOW ABT STOCKS AND SHARES !!!!!! VISIT THE LINKS .......ITS QUITE SIMPLE AND U WILL ENJOY IT!!!!!

http://www.investopedia.com/university/stocks/

http://www.moneycontrol.com/pehlakadam/start.php

VISIT IT ........IF U HAVE ANY QUERIES FEEL FREE TO ASK ......OR EMAIL ME AT trilok_sonic@yahoo.co.in

Hello