Remembering Dr. Martin Luther King’s famous speech – ‘I have a dream’. Bet you want to show this to your children. Inspiration at its best.
Budget is around the corner. Before we jump into major discussions, here’s a bit of trivia. See below Infographic to know the journey of how a bill becomes the Budget.
Recently we had an oh-so-formal birthday party invite of an year old. Well it was a fun party but a bit formal since it was husband’s boss’. Once the wives were introduced to each other and left to chat up, the gentlemen promptly made way to the bar.
I met a fellow momey who had taken a break from flying to look after her then 2 year old son’s growing needs. Now comes the interesting part – she is now working as a freelance educator for Cuemath. It started with her trying to explore new learning channels for her son, but soon they approached her to become an educator herself.
With ‘screen time’ becoming a major pet-peeve for all parents these days, engaging in alternate education methods made a lot of sense. After I came home and pondered more about it, I started to think, what were the things that kept us occupied in our childhood when screen options were practically zilch.
I recalled how ‘collecting’ was big with us. It was engaging and informative both. Collection of currency, postage stamps, books, doll sets, scrap book memorabilia and what not.
They say coin collecting is part all – art, science and history. You don’t have to aim to become a Numismatist. That may require in-depth academic knowledge of currency. Collection can be done purely as a Hobby. There’s always the advantage of knowing about the country where your collection of coin or paper currency comes from. Matching currencies with countries used to be a regular question in my GK test papers J Knowing coin’s worth in home currency, ease of getting it, can help unearth the value and joy in collecting. There’s a fair bit of history hidden as one takes note of year of making of the coins, symbols inscribed in designs, metals used, thereby telling about the era it represents.
There are ranking systems also used by pro collectors but its definitely advanced and not a pre-requisite to enjoy being a mere collector for hobby. It is also an interesting game between enthusiasts to trade your surplus coins. Trading adds to the collection and it can make you earn when higher value coin is traded for lower value.
There are moments of joys and jealousies as we form a little group of enthusiasts and compare our collections. If a friend managed to get a currency before it would be a big disappointment. But a dime more in our kitty and we would be on seventh heaven J
Those were good ole’ days. Even now I have a bit of interest in collecting coins which I am determined to pass on as a hobby to my lil one. So long as it keeps the screen at bay, it would be worth his while.
Back in the party, once our glasses arrived; the chit chat slowly gave way to some great music and food. I had a heck of a time myself.
Happy New year lovelies!
Home economics is no stranger to ‘The power of small’. Yup momeys, I am referring to the small savings we manage every now & then.
We have all had situations where a little fortune out of our savings kept aside bailed us out of unforeseen situations. A medical emergency, unexpected wedding or birthday shopping, unplanned purchases for home or self, numerous ocassions can pop up when small sum plays a big role.
This post is to draw attention to a fast gaining investment feature called SIP – Systematic Investment Plan.
SIP or ‘the good EMI’ as it has been fondly called is a sure shot way to make your small savings grow. To give some background, SIP is a feature offered to MF investors. Mutual Fund is a collective pool of money in which various investors put their money for returns. This pool is managed by experts who in turn invest it further to fetch gains for their investors. Now to invest in a mutual, there are 2 ways – lumpsum which you can do one time and second is SIP.
SIP is any fixed amount (starting Rs. 500) that can be invested every month on a set date into a mutual fund scheme of your choice.
Now comes the real part. SIP is increasingly being used by investors because of 2 main reasons:
1. Flexibility to invest small sums over a period of time.
2. Great returns due to the power of compounding.
An investment has to be given time to give worthwhile returns. And when you invest through SIP, you turn little sum into big money. As you invest month on month, your base increases – sum you are investing plus the returns keep getting added. This is how you benefit from compounding. To explain better, suppose you put Rs. 2000 every month in SIP for 10 years. The principal you have put is Rs. 2,40,000. With a modest rate of return of 12.5%, you will have Rs. 4,78,763 at the end of 10 years. You can use this calculator to find out more: https://www.mysiponline.com/sip-calculator.php
This supersedes any Recurring deposit returns you will make over long term. Mutual Funds are seeing unprecedented interest from new investors and SIP is becoming a favourite. But you don’t have to follow anyone for the heck of it. You can do an SIP for the sheer benefit it brings. Just resolve to make small savings into big as a first step and rest will fall in place. Start today!
Something that parents rightly start early is getting piggy banks for children, but it can keep money-curiousity at bay only till the toddler stage. So what is a way out for growing kids to learn their money lessons right?
Technically a child can have bank account in her / his name. But it’s not that the kid would start operating the account on his own. An alternate way is to open a joint account with your child with either or survivor option and remove your name when he turns 18. In the course, he would learn his money lessons.
1. Start savings in the account
Make real credits into the account. Cash rewards for completing milestones or cash gifts should be deposited into account.
A monthly statement to show credits in account is a great motivation. With mobile apps, the job is even easier.
2. Budgeting & Rewarding
Other than deposits, the account should be used for budgeting calculated expenses like sponsoring wish lists. Purchases like the sports kit or the training shoes can be done when rewards are due. I remember reading that delaying gratification disciplines children.
3. Role Play
Sometimes without actual transactions, children can be allowed to play with their debit card while playing.
ATM pins sharing is a no-no, but they could certainly role play swiping of the card.
Siblings could compete for higher earnings and bank balance. They can even dabble with credits and loans among each other. The real exchange of money and change in bank balance will teach them a thing or two about money.
4. Prize money
Opening a dedicated account for the children is also a great way to prepare them for competitive exams & scholarships. They know that their prize money will not be taken away and will be secured in their personal accounts.
There’s a general phobia of using banking & financial products in our country. This is one area where possibly school curriculum could take note. It would definitely be worth the while to induct simple banking for our young ones.
Around children’s day, I came across smart things to read about inculcating good money habits in kids. Views from parents, counsellors, psychologists to doctors merged to give a great view on money handling. Naturally a lot of reading resulted in a lot of discussions too.
Interestingly, in my chat with a fellow momey, she confided that she herself has a dilemma regarding money. I asked her what is she talking about and she said that being an avid saver she manages to save 10-15% of her monthly expenses. I complimented her on such a feat and wondered what her problem was. My friend said ever since demonetization came unannounced, she doesn’t know where could she channelize her monthly cash savings. I have to admit the more I thought about it the more I got convinced that many momeys could be finding themselves in the same position perhaps.
I probed my friend a little more and she said she would often be able to collect lac plus amount over a period. And this large sum would find way to her jeweler. She would be able to gift herself latest designs of gold ornaments. I piqued and asked why jewelry. She said the amount was too much to spend on clothes or any kitchen items. All the larger expenses are anyways taken care of husband.
But now she is scared to make jewelry purchases also. She doesn’t want to share her details or make properly billed purchases which can be tracked back to her. Jewelry was meant to be her silent reward to herself.
Having understood her predicament, I asked her why doesn’t she put the money in the bank and to my surprise, she said she doesn’t operate thhe account herself, it’s a joint account with her husband.
Now momeys if you have also found yourself in a similar situation, you have a sweet start to make. The first and foremost is opening your bank account. Once you have your own account, you can simply deposit your savings or open a recurring deposit. It is one of the better ways to harness your saving discipline.
If you want to do better, then monthly surpluses can be utilized most efficiently with a Systematic Investment Plan. It can be a great way to see your small savings grow into a spectacle.
If you still prefer the traditional investment of gold then opt for digital gold. Digital gold is a mix of virtual & real gold. You can pay online to buy gold into your online account. Once you reach purchase worth 5 gms you can either take physical gold’s delivery or keep buying online. This is great if you have long term use of gold like child’s marriage, to ensure safety. There’s also an option of Gold Exchange Traded Fund but that can be your level next.
Its been a year since demonetization and my friend has amassed her year’s fortune. So I am making her an appointment with the bank representative to come over for account opening in the coming week. Did you say? #MeToo