Important Financial terms children need to learn made easy for

Do you know that handling your finances is considered a form of self-care? We all know that Self-care involves taking deliberate actions to improve your physical, emotional, and mental well-being, and managing your finances is an important aspect of this as well.

Good financial management can help reduce stress and anxiety, which can have a significant impact on your overall health and well-being. It can also help you feel more in control of your life and enable you to make better financial decisions that support your long-term goals.

Some examples of financial self-care include creating and sticking to a budget, saving for the future, paying off debt, and regularly reviewing your financial goals and progress. Additionally, seeking the advice of a financial professional can also be a form of self-care, as it can help you make informed decisions about your finances and reduce financial stress.

With all these things, don’t you think it’s important as a parent to start teaching your children early as well about financial literacy?

Teaching children about financial literacy from a young age is crucial because it can help set them up for long-term financial success. And as parents, that’s one of the many things we wish our children would be successful in the future as well.

Here are some basic terminology and examples that kids can understand.

1. Accounting
This is what you call when you keep track of where your money came from and where it goes, regardless if it’s a company/ business/ your own. 

2. Accrual Accounting
It is the method of accounting that records transactions when they happen, not when the money is received or paid. 

3. Cash Basis Accounting
It is the method of accounting that records transactions when the money is received or paid, not when they happen. 

4. Income
This is the money you earn from doing work or selling something.

5. Expenses
This is the money you spend on things you need to run your company/business/finances.

6. Profit
This is the money you have left over after you subtract your expenses from your income.

7. Loss
This is when your expenses are more than your income.

8. Assets
These are the things you own that have value.

9. Liabilities
This is the money you owe to others.

10. Equity
This is the difference between your assets and liabilities.

11. Revenue
This is the total amount of money coming into your business.

12. Accounts payable
This is the money you owe to others for goods or services you’ve received but hasn’t paid for yet.

13. Accounts receivable
This is the money others owe you for goods or services you’ve provided but hasn’t been paid for yet.

14. Debits and Credits
This helps a company/ business/ individual make sure it has the right amount of money and things. These are also commonly called the two marks.

15. Income Statement
A financial statement that shows your revenue, expenses, and net income over a period of time.

16. Statement of Cash Flows
A financial statement that shows your revenue, expenses, and net income over a period of time.

17. General Ledger
When the company/ business/ individual buys or sells something, or pays or gets paid, it has to make two marks in its special book called the general ledger. 

18. Balance Sheet
This is where you’ll see how much a company has, how much it owes, and how much is left for the company/ business/ yourself. 

19. Charts of Accounts
This is the list of all the things it can put in its special book, and each thing has its own special number. 

20. Cost Of Goods Sold
This is the cost of the materials used to make what you’re selling.

21. Operating Expenses
These are the costs of running your business, not including the cost of goods sold.

22. Gross Profit
This is the amount of money you have left over after subtracting the cost of goods sold from revenue. 

23. Net Income
This is the amount of money you have left over after subtracting operating expenses from gross profit. 

24. Depreciation
This is the decrease in the value of an asset over time. 

25. Tax
Tax is money you pay to help the government do things like build roads, and schools to keep people safe. 

Overall, teaching children about financial literacy is important because it helps them develop healthy financial habits and prepares them for a financially stable future.

How about you? When were you first educated about financial literacy? Do you agree that children should learn them as well while they are young?

Top Important Reasons why you need to prioritise sleeping

When I was young, I was always asked to have a nap in the afternoon, especially on weekends. Does this sound like your childhood too?? Being able to sleep late at night has always been made to look so cool that’s why it’s always every child’s nightmare to hear about the word, “bedtime”. And lastly when we are feeling old enough but still a bit young, a curfew, so you get forced to stay awake within the four corners of your room with nerves within you that still want to party outside. We’re so eager to become an adult already, ain’t we?!

And then comes adulthood, where everyone who expects it to be so cool is faced with a ton of disappointment and left overwhelmed. What we have been fighting all those years of not being asked to sleep has been one of our wish list nowadays. How ironic!

Sleep is one of the most important part of our wellbeing, hence, should be included on the top 5 of your list of Self-Care. Here are the reasons why:

Brain Function: Sleep is very important for our brain to function. The more we lack sleep, the more our minds become cloudy and chaotic inside, not being able to make right decisions. Our brain would be slow in understanding things which could affect our way of living.

Immune system: When your body is able to get the rest it needs, your immune system is kept at its best and able to fight against various bacteria, viruses, and diseases. By avoiding sleep deprivation, you also avoid putting yourself at risk of common diseases such as heart disease, kidney disease, high blood pressure, and diabetes.

Regulate appetite: Having the means to buy food or a partner to eat with always isn’t the only reason why most people gain weight. There’s much more to it suck as poor sleeping habits. When you’re deprived from sleep, your body’s ability to regulate your appetite is affected as well. This may be the first time you hear about this, and if so, it’s my pleasure to be the person you’ve heard it first, “If you want to lose weight, make sure you have enough sleep. By simply keeping track of your sleep, you can be assured to keep your weight or lose weight without doing any other thing at all.”

Emotions in control: It’s never a good feeling to feel irritated at all times. Not only are you not able to function the way you want to but even affect the people around you as well. You tend to be short tempered, and if you’re a mom, it is guaranteed that your children would feel that heat from their hot headed mom. Try to avoid this by making time to sleep. There’s always tomorrow to continue with your long to-do list.

I’ve ended my 2nd paragraph with the phrase, “How ironic!” And the more this blog post comes to an end, the more I come to think about this couple of questions and mind-blowing common answers.

No eating – We panic, complain, felt like going to die which resorts to us doing all sorts of things just to make sure we’ll somehow have something to eat.

No sleeping – Felt cool and even brag to others how little sleep you had.

Why is this ironic? Because of our lack of knowledge on how important sleep is and not being able to prioritise to have which our body need more. Fun Fact: Our body can last 8-21 days without eating, or at most, 2 months guaranteed you have water to drink. Contrary to that, our body could only last 264 hours or 11 consecutive days before our body shuts off due to lack of sleep. One of the movies I’ve watched during Pandemic times that is surely related to this topic is the Netflix movie, AWAKE. I hope you find time to watch this and be an awakening to this bad sleeping habit.

So the next time you think you’ll not have enough time to sleep, how about try to have a nap. There’s a lot more on the benefits you can get from Napping.

I hope this article help lit that spark within you into living a healthier lifestyle. Read from here some Easy to start habits for a better Lifestyle.

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