Sent: 27-07-2010 10:18:10
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Discipline is needed to stick with your plan
What's it mean to be disciplined? By definition, discipline involves training, doing, repeating, correcting, bringing order and control to a situation. Think back to times in your life when you were disciplined - perhaps you learned to play a musical instrument and spent hours each week practicing, perhaps you trained in a particular sport, maybe it was studying at school or for your trade or profession.
When it comes to financial success, one of the biggest keys is to discipline yourself to a money plan. It can be as simple as putting aside a set percentage of your income each and every pay for giving (say 10%), living (70%), saving (10%) and wealthing (10%).
With your kids, discipline yourself to a pocket money regime, and then work with them to work out the percentages they are prepared to put into each compartment of their MoneyEd Box™, and encourage them to stick to the plan. It may help to give them their pocket money with these amounts in mind, so that it's easy for them to split the money up.
With younger kids, it is enough to encourage them to put some of their pocket money into each Money-Ed-Box compartment. Give a mix of coins to allow them to split it up.
As your kids are more able to understand basic maths like division and then percentages, you can work with them to discover what is right for them to allocate to each compartment.
InParent's Teaching Guide Resource Book 2 there is an exercise called Pocket Money Strategy that does just this.
For great resources to help you teach your kids about money, including the books and guides mentioned in these articles, see www.qld.kidsmoney.com.au. Leanda Kayess can be contacted on firstname.lastname@example.org, or phone 0409 057 952.
This email is general in nature only and does not constitute or convey specific or professional advice. Legislation changes may occur quickly. Formal advice should be sought before acting in any of the areas discussed. Be aware that the information in these articles may become innaccurate with time. Responsibility is disclaimed for any inaccuracies, errors or omissions. Particular investments are neither invited nor recommended and hence this publication is not "financial product advice" as defined in Section 766B of the above legislation. All expressions of opinion by contributors are published on the basis that they are not to be regarded as expressing the official opinion of any other person or entity unless expressly stated. No responsibility for the accuracy of the opinions or information contained in the contributor's articles is accepted by any other person or entity. Copyright: This publication is copyright. If you wish to reproduce this article you require a license, which can be purchased here, to do so.