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Understanding the concept and value of money is an important life skill that can help set kids up for financial success long into their adult lives. However, financial education is not always covered extensively in school curriculums. But parents can do a lot to help ensure their children learn important lessons about money early on. 

Fortunately, the learning process does not have to be boring or difficult. In fact, it can be fun and engaging for kids from grade school to high school.  

Make it relatable. A wonderful way to illustrate money concepts to kids is by using real-life examples and situations that are familiar to them. For instance, when grocery shopping, you can explain the importance of comparing prices on boxes of their favorite cereals to help them understand whether Peanuty Puffy Puffs or Choco Cowabunga Crunch is a better bargain.  

Tangible teaching tools. With younger children, it can be especially helpful to use physical objects — like coins, piggy banks, or their own toys — to bring financial lessons to life. You could put the actual money in front of different items like a teddy bear and a board game, for example, and ask them which one costs the most or the least.   

Gifts that keep on giving. Allowances, birthday, or holiday gifts can also be a fantastic opportunity to introduce kids to the concept of saving money. Encourage them to put aside some of their gift money to buy something they really want, like a toy or game. Then show them ways they can track their progress and celebrate the achievement with them when they meet their savings goal.  

Learning while earning. For older kids, money earned through an allowance, babysitting, lawn mowing, or part-time job experiences can be a fantastic opportunity for early financial education. And when your child starts bringing home a paycheck, you can teach them about taxes and budgeting.  

Teaching your teens. As your child enters their later teenage years, they may face new financial challenges, like paying for car costs. You can help by teaching them about budgeting for recurring expenses such as gas, insurance, and maintenance when they get their license. And if they are planning on college, you can discuss the importance of managing debt responsibly and the potential long-term financial consequences of carrying student loans. 

Start Early with WellCents Kids and Teens 

Instructing your kids about money can help set them up for a brighter financial future, so begin the conversation early. If you are looking for additional resources, WellCents Kids and WellCents Teens videos, available on YouTube, are an excellent place to start. These informative videos cover topics like budgeting, saving and smart shopping — and are presented in a fun, accessible way. By using these resources, kids can begin to develop important financial skills that can benefit them throughout their lives. 

Understanding the concept and value of money is an important life skill that can help set kids up for financial success long into their adult lives. However, financial education is not always covered extensively in school curriculums. But parents can do a lot to help ensure their children learn important lessons about money early on. 

Fortunately, the learning process does not have to be boring or difficult. In fact, it can be fun and engaging for kids from grade school to high school.  

Make it relatable. A wonderful way to illustrate money concepts to kids is by using real-life examples and situations that are familiar to them. For instance, when grocery shopping, you can explain the importance of comparing prices on boxes of their favorite cereals to help them understand whether Peanuty Puffy Puffs or Choco Cowabunga Crunch is a better bargain.  

Tangible teaching tools. With younger children, it can be especially helpful to use physical objects — like coins, piggy banks, or their own toys — to bring financial lessons to life. You could put the actual money in front of different items like a teddy bear and a board game, for example, and ask them which one costs the most or the least.   

Gifts that keep on giving. Allowances, birthday, or holiday gifts can also be a fantastic opportunity to introduce kids to the concept of saving money. Encourage them to put aside some of their gift money to buy something they really want, like a toy or game. Then show them ways they can track their progress and celebrate the achievement with them when they meet their savings goal.  

Learning while earning. For older kids, money earned through an allowance, babysitting, lawn mowing, or part-time job experiences can be a fantastic opportunity for early financial education. And when your child starts bringing home a paycheck, you can teach them about taxes and budgeting.  

Teaching your teens. As your child enters their later teenage years, they may face new financial challenges, like paying for car costs. You can help by teaching them about budgeting for recurring expenses such as gas, insurance, and maintenance when they get their license. And if they are planning on college, you can discuss the importance of managing debt responsibly and the potential long-term financial consequences of carrying student loans. 

Start Early with WellCents Kids and Teens 

Instructing your kids about money can help set them up for a brighter financial future, so begin the conversation early. If you are looking for additional resources, WellCents Kids and WellCents Teens videos, available on YouTube, are an excellent place to start. These informative videos cover topics like budgeting, saving and smart shopping — and are presented in a fun, accessible way. By using these resources, kids can begin to develop important financial skills that can benefit them throughout their lives. 

You’ve been saving for years and making good progress toward your retirement and other investment goals. But a single catastrophic event — like major storm damage to your home or a serious car accident — can quickly derail your financial plan. That’s why having adequate insurance protection is a cornerstone of financial wellness. 

Many different types of policies are available. To help ensure you have all the protection you might need, it’s important to understand the options. 

Homeowners insurance. A homeowner's insurance policy can protect you from losses due to fire, theft, storms and other perils. And when there’s a mortgage on the property, it’s typically a lender requirement. 

Renters and condo insurance. Both of these types of policies can offer some of the same protection as homeowners insurance but are tailored to the specific needs of renters and condo owners. Condo owners, for example, don’t need as much structural coverage as homeowners. Renters primarily need insurance to cover belongings — and certain liability claims — and it’s often the least expensive of the three types of policies. 

Flood insurance. Damages caused by flooding are generally excluded from standard insurance policies, so you’d most likely need to purchase this type of coverage separately. Even homes outside of flood zones can be susceptible to flooding. 

Auto insurance. Car insurance can protect you from unforeseen losses resulting from accidents, storms, theft and vandalism — as well as property damage and injuries to yourself or others. Coverage requirements can vary by state, so it’s important to carefully review the terms of your policy.   

Boat, motorcycle and RV insurance. Operating watercraft and vehicles other than your car carry unique risks and require separate policies of their own. They may also include coverage for belongings stored on them. 

Health insurance. Preventive care, as well as treatments for diseases and other conditions such as diabetes and asthma, are covered by private or employer-provided policies. The Affordable Care Act guarantees 10 essential health benefits, including mental health treatment, maternity care, lab work and ambulatory and preventive services. 

Life insurance. Purchase this type of protection to safeguard the financial future of those you love should the unthinkable happen. Term policies typically cost less and pay a benefit for a certain number of years, while whole life policies cover an entire lifetime and can accrue cash value. 

Umbrella policies. You can obtain extra liability coverage beyond the limits of other policies — such as homeowners and auto policies — with this type of insurance. Umbrella coverage is often sought after by higher net worth individuals with more assets to protect. 

Disability insurance. If you’re unable to work due to illness or injury, short- and long-term disability coverage can help protect your income. You may have a policy provided through your employer, but you can also purchase disability insurance individually.  

Effectively knitting together adequate protection from a variety of policies can mean the difference between financial security and financial peril. With such high stakes, it can be highly beneficial to get advice from a qualified financial professional or licensed insurance agent to help ensure you have the types and amounts of coverage you need. The time to act is before disaster strikes — because insurance helps protect your financial future … and the things you value most. 

Many people wonder exactly how much it will cost for them to retire comfortably, and whether they’ll have enough money to do it. That can be a tough question to answer — but it’s an important one to get right. Learning about current retirees’ finances can be a helpful starting point when gauging your own retirement goals. 

According to the Data … 

The U.S. Census Bureau provides information regarding the typical retirement income of Americans. They do this by reporting two types of statistics — mean income and median income. 

Mean income is determined by adding all the annual incomes of retirees and dividing by the total number of retirees. The resulting number is the arithmetic average. However, this value can be greatly influenced by extremely high- or low-income numbers.  

The median is calculated by taking the middle value of all annual incomes of retirees when the values are arranged from low to high. Because a median isn’t influenced by those with very high or low incomes, it’s often regarded as more representative. In 2021, the median annual income of American retirees over the age of 65 was $47,357 — whereas the mean was $73,288.  

Where to Start? 

One often-cited rule of thumb when it comes to retirement income planning is that many people are expected to need approximately 80% of their pre-retirement income to retire comfortably. That means if you made $100,000 per year pre-retirement, you’d need about $80,000 post-retirement. Thinking about why you’ll need less is that your income tax obligations are anticipated to be lower, and you won’t have to pay for many job-related expenses. However, it’s important to realize that other costs, especially those related to medical needs, can increase significantly during retirement. 

The Number That Matters Most 

Retirement planning is ultimately a very personal decision-making process that depends on your unique situation and needs. That’s why things like the 80% rule are best regarded as a starting point and not a hard and fast rule. Because so many factors go into retirement planning — projected taxes, inflation, cost-of-living increases and much more — it can be useful to seek the advice of a qualified financial professional to assist you. In the end, it’s not the average retirement that matters most — it’s your own. 

Source 

https://www.annuity.org/retirement/planning/average-retirement-income/  

If you’re committed to social and environmental causes, you may already purchase products from companies that align with your values when you shop. However, you may not be aware of the ethical investment choices that might be available right within your 401(k) plan. These funds are called ESGs.  

ESG stands for environmental, social and governance. The designation is given to investments deemed environmentally or socially responsible. Here’s an overview of ESG funds and considerations when deciding whether to invest in them.  

ESG Ratings Vary 

There’s no definitive standard to determine whether a fund receives an ESG designation, but many organizations — such as MSCI ESG Research and the Dow Jones Sustainability Index — have their own rating systems. And they can use different criteria to rate investments, which means the same fund may receive different ESG ratings. 

An ESG investment doesn’t have to meet criteria for all three categories, which is why it’s important to research funds for yourself. If your primary concern is sustainability, for example, an ESG label doesn’t necessarily mean the fund is environmentally friendly. It could have been categorized as an ESG fund because of its labor policies, diversity or leadership.  

Categories Can Be Broad 

ESG designations can cover a wide range of ethical considerations — even within each of the three individual components.  

Evaluating ESG Investments 

While it may be important to you that a fund aligns with your values, you should evaluate it as you would any other investment — especially when you’re considering including it in your retirement portfolio. Even if the fund reflects your ethics, consider its investment risk, management and historical performance. 

If an ESG fund appears to be a prudent choice for you, research the company’s investment philosophy and actions. An investment might receive an ESG designation because of how it functions in one area, but there could be other factors that don’t reflect your values.  

Good Business Can Be Good for Business 

While an ESG fund doesn’t ensure positive returns, many of the practices that lead to an ESG rating can be good for business and customers in the long run. Reducing waste, for example, can save money, and keeping workers happy can help avoid costly strikes. Plus, conservation can help everyone living on the planet avoid paying a premium for limited resources. Nonetheless, just as with any investment, it’s always a good idea to do your homework first and make sure ESG funds are a good fit for both your values — and your wallet. 

Source 

https://www.nerdwallet.com/article/investing/esg-investing#:~:text=ESG%20scores%20are%20calculated%20by,differ%20depending%20on%20the%20provider