Giving Allowances To Your Children
By Sorli | March 21, 2009
Children also learn from experience, so apart from setting a good example, parents should give the children practice in handling money. This is where an allowance can play an important role.
Why Give Allowances To My Children?
An allowance can be a good teacher because it allows children to manage money in a safe environment. The sum involved is small and any mistakes made will not be too damaging. It is not like when they are adults and the mistakes made can cause them to lose their house or car.
Allowances can teach them financial responsibility. For example, when your child wants to buy a new toy, she can be asked to save part of her pocket money to get it.
Depending on the age of your child, she may need help to achieve her goal (i.e.,the toy). This gives you an opportunity to help her develop a spending and savings plan so that she will know how much and how long she has to save to buy her toy.
Saving for a toy will teach your child about delayed gratification. A child who has enjoyed the fruits of saving up for a toy may be less likely to be taken in later by the various choices of instant gratification like credit cards, easy payments and hire-purchase payments.
Thus allowances give children a chance to make mistakes that are not too costly, to think about the value of what they want, to experience anticipation if they save for a few weeks and even to feel the consequences of overspending.
Do not make a practice of giving additional money if your child overspends. If parents is quickly to bail out the child, the child will not learn the consequences of overspending.
Should your child overspend, she will then have to get a loan from you to meet her expenses. Set up a repayment period to give her some practical experience in using credit.
But if your child keeps overspending it should be time to put her on a simple budget.
How Soon Should I Give Them Allowances?
Your child probably ready for an allowance when she enters primary school. She should be old enough to handle money to buy food at the school canteen.
How Much Allowances Should I Give To My Children?
How much money your child is entitled to will depend on how much you can afford and how much food in the canteen costs. You may also want to have an idea of how much pocket money her classmates are getting.
Parents and child should agree on just what the pocket money is supposed to be spent on. Even if it is only to be spent on food in the canteen, give a little above so that your child can practice decision-making.
As adults, we make spending choices and not all of our choices turn out to be the right ones. Learning to live with the results of poor choice in spending money is a valuable lesson, so let children make mistakes and learn from their mistakes.
How Often Should I Give My Children Allowances?
At the very beginning the pocket money can be paid daily since your child is young and is not used to handling money. But as your child grows up the allowance can be paid weekly and when she reaches her late teens it can be paid monthly.
The longer your child has to wait for the next payment of pocket money, the more she has to practice her budgeting skills.
Topics: Money, Money Education | 22 Comments »
Insurance and Men: Handling Society's Negative Perceptions
By Sorli | March 16, 2009
If we view the present scenario, there are still many of us does not own an insurance policy yet. Regardless of what the package core whether it is life insurance, medical insurance, education insurance or investment insurance, the interest to have an insurance is still ‘blurry’ in the society’s eyes.
This situation obviously shows the practice of having insurance still new due to no education and awareness of its importance of being protected by insurance package. Let alone the living environment in this era which offers challenges whether from the economy, security and health aspect.
For some peoples, insurance is perceived as burden. This is because they are forced to allocate a portion of their salary to pay premium, whereas its return and benefit is not known when it can be taste. When some incident or disaster happens, it is then when the insurance policy interest and importance can be benefited.
‘Money saving’ factor always become a reason to refuse having an insurance policy. For some people, the premium payment which is in average as low as $80, $150 or $300 per month is perceived as burden. This form a mentality in society which often avoids each time they are visited by an insurance agent.
Men which become the hope of their family and as a chief are the key individuals who need to be protected by insurance. It is a gamble of his life and put the bad luck on the man’s shoulder solely, but it is in fact a long term protection and effect which will be enjoyed by them in their hard time.
In overall the society is still not yet exposed to the benefits of having an insurance policy. Men which become the head of the family do not see their interest need to be protected. This indirectly put the fate and future of their family and beloved ones in risks.
Imagine should a man, who is unprotected by insurance and involved in an accident, does just the hospital treatment is enough for him whereas he could affords to receive further treatment in a private hospital and received financial assistance incentive during the treatment period.
Topics: Uncategorized | No Comments »
Insurance and Men: Experience of an Agent and His Comments on General Perception Towards Insurance
By Sorli | March 16, 2009
This is an interview with Adie Mudzaffar, who serves for six years with Prudential’s agency, Al Isra’ Associates Sdn Bhd shares his experience and commenting the general perception towards insurance and protection.
Personally, how you see the importance of having insurance?
Along six years my participation in insurance world, clearly I would say that the society tendency especially Malays to own insurance is still low.
I can say that 90 percent of Bumiputras people in Malaysia are not yet protected by insurance. Whereas, the insurance itself give sufficiently large advantages to individual and family at now and future. Not only it gives protection medically and in term of life, insurance scope is far bigger; as a fund to oneself in his old time later.
In your opinion, what causes people to not want having insurance policy?
This returns to the society’s culture of upbringing itself. If we see Malay community as example, culture of saving itself is not a habit. Let alone on insurance ownership in Malay families household.
Somehow this is different in the Chinese community. They make culture of saving and habit of having insurance policy since their children are still small.
So what is the real cause that cause people refused to have insurance?
The main cause is the financial factor. Let alone the effect of the world economy which indirectly gives great influence to the society’s daily expenditure. This is felt more by men which became the head of his family and moreover if his wife is not working and bringing up children in the city area. It is acknowledged, it is difficult for men to bear the living cost in town and at the same time have insurance.
Is there still opportunity for this group to have insurance?
I did not say no. It returns to the awareness factor itself. If men as a family leader realize his importance as the future pillar for himself and his family, insurance is the best answer in ensuring his family’s fate guaranteed. Imagine when one is not protected, what would happen to his fate and family in the future?
How to evaluate a person’s ability to have insurance?
Usually, as insurance representative we will evaluate the total monthly income owned by individual and inflow and outflow of his finance. A good insurance package usually includes 10 percent of monthly total income amount. This package is subjected to protection scheme is whether it is wanted as a saving, medical or both like often done by policy owner.
How can we get to know the advantages of an insurance package?
It is important for every of us to know the insurance package that being offered. Investigate insurance company background and the advantages that would be enjoyed from the investments that we are doing. Do not ever falls for cheap offer and package which offers insurance without knowing further details and claims which can be made later on.
Back to people perception, how to ward off community’s negative perception on insurance policy ownership?
Once upon, when talking on insurance people will see as a death protection. Peoples are not interested to talk about deaths. This story was 10 years ago where insurance package converge a lot to life insurance plan which gives compensation to family member if policy owner passed away.
Currently, many packages enjoyed by policy owner such as change help, emergency, saving package for old age and so on.
What will be enjoyed if one owns an insurance policy?
Not only are his interests protected, insurance owner usually given a medical card that qualify him to receive treatment incentive in registered private panel hospitals. He or she only needs to show the insurance medical card, the patient is eligible to get specialist treatment compared to those who do not own insurance.
Not that only, during hospitalize, the policy owner is also paid. Isn’t that attractive?
How is the flow of ownership of insurance policies during five years lately?
I can say that, within these five years the number are increasing among the societies especially in Malay society and those who reside in town choose to have insurance. This awareness is increasingly expand as they are thing the long term effect and to seek the best protection for themselves and family.
If we look to government hospital nowadays also provides specialist treatment where it impose high payment rate to patient who need treatment. Because of that we should think of the importance of owning an insurance policy.
In your opinion, how to change community’s perception on advantages of owning insurance policy?
It should be taught since small and starting from school level. It also becomes insurance representative’s responsibility to approach society to ensure that they understand and become aware of the importance owning insurance policy in the quite challenging environment today.
Who own more insurance policies, men or women? What factor contributes to the figure?
According to source that we believe, it is undeniable men have more insurance policies compared to women. It may be caused by awareness and men’s role factor as the head of family and bigger responsibility causing them to choose to own insurance policies.
How one man as family’s head can protect his family with insurance?
He still can own insurance through family insurance plan where each of his family members is protected. But this plan does not include medical coverage like in personal insurance.
Topics: Uncategorized | No Comments »
12 Tips to Protect Yourself from Health Care Fraud
By Sorli | February 13, 2009
Health care fraud is not just about losing money, it can make you sick or hurt you. From unsafe drugs sold on the Internet as a “cure” for cancer, to wheelchair billing plots that try to bilk consumers and Medicare out of millions of dollars for unneeded or improper equipment, health care fraud is everyone’s concern!
Health care fraud, errors and abuse costs the US between $80 and $160 billion a year. $1 of every $10 spent on public insurance programs like Medicare and Medicaid is lost to fraud. Health care fraud causes big financial problems for you as well- the most recent estimate is that consumers themselves lose more than $10 billion each year to health care fraud.
Don’t Be a Victim!
Consumers like you play a big role in the fight against health care fraud by reporting errors and possible fraud. Law enforcement is important, but the best protection comes from preventing people from being cheated in the first place. There are 12 simple steps you can take to protect yourself and your family.
Take Action– post the 12 Tips to Protect Yourself on your refrigerator and use them as a daily checklist to make sure you are keeping your personal information and health safe.
12 Tips to Protect Yourself from Health Care Fraud
- Only visit your personal doctor, hospital or clinic for medical help. Only they should make referrals for special equipment, services or medicine.
- Never show anyone your medical or prescription records without first talking to your doctor or pharmacist.
- If someone calls and tries to threaten or pressure you into something – simply hang up the phone.
- If someone comes to your door and says they are from Medicare or some other health care company shut the door…It’s shrewd to be rude!
- Do your homework and talk to your health care provider before buying or investing in internet “cure-all” or “miracle” products or services.
- Don’t keep mail in your mailbox for more than one day. People steal personal information right out of your mailbox.
- Rip up or shred your Medicare or other health care papers and other important documents before throwing them away. Crooks go through the trash!
- Treat your Medicare & Social Security numbers like credit cards. If someone offers to buy your Medicare or social security number, don’t do it…it’s simply not worth it.
- Remember that “Medicare” doesn’t sell anything.
- Follow your instincts—if it seems too good to be true, it usually is!
- If you suspect an error, fraud or abuse related to health care, gather the facts and report it.
- ALWAYS read your Medicare Summary Notice (MSN) or health care billing statement. Your Medicare Summary Notice is the piece of mail stamped “This is Not a Bill” that comes in after you get medical care. Look for three things on your billing statement:
- Charges for something you didn’t get
- Billing for the same thing twice
- Services that were not ordered by the Doctor
Everyone pays the price for health care fraud, errors and abuse, through higher insurance payments, increased costs for medical services and equipment, and greater expenses for Medicare and Medicaid. But more importantly, lives are at stake.
Source: The National Consumer Protection Technical Resource Center
Topics: Tips | No Comments »
Tips: Why Should I Own An Insurance Policy?
By Sorli | February 13, 2009
Here are some reasons why that you should own insurance:
- As a preparation if struck by a disaster, we do not know when an accident will occur.
- Having insurance while still young and healthy can give higher returns when the insurance has matured.
- As a future savings for a source after pensioning.
- Increasingly higher cost for learning. For example, my child should possess insurance to ease our burden later.
- As an inheritance to my child and heir if I died as a consequence of a disaster.
- Health insurance is needed to accommodate the medical cost and treatment if I am hospitalized.
A lot of benefits when owning insurance. It is not a gamble of life but as a preparation to face the uncertainty.
Topics: Tips | No Comments »
Teach Children Money Management at Their Young
By Sorli | February 13, 2009
Children are not born with good money management skills, they have to be taught. And parents can start doing so around the age of three. By then the child will usually have a vague concept that money can be exchanged for food or toys. This they observed when they go out shopping with the family.
Setting Good Examples
Action speak louder than words in forming the child’s attitude toward money. Children can spot inconsistencies when parents say one thing and do another. Therefore parents should examine their own money attitude and practices.
This would, for example, mean not being overwhelmed by debts or not being a walking advertisement for branded goods.
Topics: Money, Money Education | No Comments »
Insurance and Men: Reasons Why Do They Need One
By Sorli | February 13, 2009
If we view the present scenario, there are still many of us does not own an insurance policy yet. Regardless of what the package core whether it is life insurance, medical insurance, education insurance or investment insurance, the interest to have an insurance is still ‘blurry’ in the society’s eyes.
This situation obviously shows the practice of having insurance still new due to lack of education and awareness of its importance of being protected by an insurance package. Let alone the living environment in this era which offers challenges whether from the economy, security and health aspect.
For some peoples, insurance is perceived as burden. This is because they are forced to allocate a portion of their salary to pay premium, whereas its return and benefit is not known when it can be taste. When some incident or disaster happens, it is then when the insurance policy interest and importance can be benefited.
The Money Saving Factor
‘Money saving’ or ‘money keeping’ factor always become a reason to refuse having an insurance policy. For some people, the premium payment which is in average as low as $80, $150 or $300 per month is perceived as burden. This form a mentality in society which often avoids each time they are visited by an insurance agent.
Men which become the hope of their family and as a chief are the key individuals who need to be protected by insurance. It is a gamble of his life and put the bad luck on the man’s shoulder solely, but it is in fact a long term protection and effect which will be enjoyed by them in their hard time.
In overall the society is still not yet exposed to the benefits of having an insurance policy. Men which become the head of the family do not see their interest need to be protected. This indirectly put the fate and future of their family and beloved ones in risks.
Imagine should a man, who is unprotected by insurance and involved in an accident, does just the hospital treatment is enough for him whereas he could affords to receive further treatment in a private hospital and received financial assistance incentive during the treatment period.
Topics: Uncategorized | No Comments »
Auto Insurance: Understanding Car Insurance
By Sorli | February 7, 2009
Unexpected losses. Future disasters. Insurance can protect against all these eventualities which are potential money draining experiences.
In the case of being an owner of a vehicle, shop around for a good policy and a good tip is to purchase more coverage than required to cover for a variety problems. Some examples of policies include:
Liability
This coverage pays for accidental bodily injury and property damages to others. Injury damages include medical expenses, pain and suffering and lost wages. Property damage includes damaged property and automobiles.
This coverage also pays defense and court costs. The law determines how much liability coverage you must purchase, but you can always get more coverage than required.
Collision
This coverage pays for damages to your vehicle caused by collision with another vehicle or object.
Comprehensive
This coverage pays for loss or damage to the insured vehicle that doesn’t occur in an auto accident. The types of damages comprehensive insurance covers include loss caused by fire, wind, hail, flood, vandalism or theft.
Medical Coverage
Pays medical expenses regardless of fault when the expenses are caused by an auto accident.
PIP
Personal Injury Protection (PIP) pays medical expenses for the insured driver, regardless of fault, for treatment due to an auto accident.
Uninsured Motorist
Pays your car’s damages when an auto accident is caused by a driver who doesn’t have liability insurance.
Underinsured Motorist
Pays your car’s damages when an auto accident is caused by someone who has insufficient liability insurance.
Rental Reimbursement
This type of coverage will pay for a rental car if your car is damaged due to an auto accident. Often this coverage has a daily allowance for a rental car.
Factors That Affect the Pricing of the Auto Insurance
Now that you know more about the various policies available, it’s also essential to know what type of factors affect the pricing of the auto insurance such as:
Drive ‘Safe’ Car
The first thing that affects your policy price would be what kind of car you drive. For instance, a sports car will definitely be more expensive to insure compared to a family car. Also, if your car is a popular target with thieves, chances are that your coverage will be more expensive.
Neighborhood and Mileage Counts
Another factor is where you reside. If you reside in an area which is crime ridden, your policy will be a more expensive one. Drivers who clock up long distance in driving will also pay more than those who live nearby their work places.
Depends on Your Profile
The final factor is that the price depends on yourself. Your age, your gender, marital status and driving records are all taken into account for. Accident rates are higher for drivers under the age of 25 years old, so if you are young, expect to pay a wee bit more.
With that in mind, have fun researching on various policy packages offered by insurance packages to find out the policy that suits your profile!
Topics: Auto Insurance | 18 Comments »
Parents Role In Educating Their Children on Money Management
By Sorli | February 7, 2009
Kids today have more money to spend than previous generations. Their attitude towards money will be influenced by their parents, the media and their peers. It is important to start them on the right track since their spending habits as children and teenagers will shape their attitude towards money as adults.
Children who learn good money management skills will be better chance of becoming adults who can make sound financial decisions and not getting into money trouble.
However, teaching children about the value of money is more difficult in today’s increasingly cashless society since they do not always see money being paid immediately for the purchase of goods and services. And yet because we live in society where credit is so easily available that the ability to manage money is even more important.
But since good financial skills are taught at school, it is up to parents to develop such skill in their children. But when does one should start teaching children about money?
Topics: Money, Money Education | No Comments »
Tips How to Get Cheap Auto Insurance Quote
By Sorli | February 6, 2009
Here are some useful tips on getting cheap auto insurance quote. These tips are from Brian, a former insurance agent and financial consultant. He gives some tips on how to get cheap auto insurance quote:
Examine Your Auto Insurance Policy – A few changes in the auto insurance coverage can save hundreds of dollars in the insurance premium.
Increase The Insurance Deductible – Deductible is the amount of money have to be paid before an insurance company pays a claim. Raising it can save hundreds of dollars per year of the car insurance.
Install a Security System – Most insurance companies will give discount if security system is installed to the car.
Decrease Your Mileage – The auto insurance that have to be paid is directly proportional to the number of miles you drive. So cut down your mileage, try car pooling or walking sometime.
Shop Online for Cheap Auto Insurance – Try to compare them online.
Topics: Auto Insurance, Tips | 1 Comment »
