KidCents

SAVINGS - These used to be the best way for everyone to hold on to their money but with close to zero interest on savings plus inflation, savings are becoming less valuable to people.

There are a few solutions but one of the best in terms of longevity is the S&P 500 index in the US. This has average returns of 7% per year over the last 40 years led by the tech giants of Apple, Meta, and Amazon amongst others.

It is simply put, one of the best forms of investments on the market with a history of returns. Take the Nutmeg interest calculator and find out for yourself.

https://www.nutmeg.com/compound-interest-calculator

If your children invested in the S&P 500 over the course of 40 years, starting at age 18 and investing £200 a month, they would have invested for themselves £96000 over the course of this saving period, big deal you say but if it was invested in the S&P 500 the value of the savings pot would be £529000, that is a return of 400% above the initial investment. The power of compounding.

You could retire but if you live in the UK and live longer, work for another 10 years, and the value of your pot is a cool £1000000+. How did it double within 10 years? Compounding - this word is your friend and allows everybody no matter their status to achieve a good retirement.

Lesson - Get investing as soon as possible, let KidCents be your shepherd to brighter pastures. Message us now, and we can answer your queries.

Compound Returns Calculator (Daily, Monthly & Annually) - Nutmeg With our compound returns calculator, we’ll give you an estimate of the benefit. You can try it out today, no sign up required!

FINANCIAL LITERACY

According to UK government statistics and data from the Joseph Rowntree Foundation, in 2022, 4.3 million children in this country are experiencing poverty.

For a country like the UK which is ranked according to where you look, between the 6th and 8th richest country in the world, simply not good enough. The wealth is concentrated in a small minority of the population.

This is one of the prime motivations for me creating this class. Why should working-class children always serve at the whims of the rich?

By giving your child the power of financial literacy, you are giving them the power to break the circle of poverty and allow them and their descendants to become financially astute.

KidCents was formed to help your children get ahead in their world and stay ahead. The best investment for your children is knowing how to invest and the best superpower is knowing how to make your money work for yourself.

Send us a message on our page to find out more and arrange a lesson for your children now.

What are Assets and Liabilities?

Simply put assets are things that make you money and money that works for you. Liabilities are things that take money out of your pocket in the form of continuous expenses.

Let's have some examples: A house or property you own that has someone renting it and making you money from its ownership. Property may also be a liability because if you are paying rent it becomes an expense and money leaves your ownership. Property is also taxed and requires maintenance in order to retain its value.

Stocks and shares are assets that you invest in and make interest on. They go up in value or sometimes down but over the long run, the trend has been upward as new companies join the market, such as Amazon, Meta, and Tesla. This asset is something to hold on to for the long run due to the compounding of interest (more on this in the next post).

A car can be an asset but is mostly a liability because as soon as it is purchased it starts to lose value, in some models it goes down by up to 30%. It has to be taxed, fueled, insured, and maintained and always losing its value unless it is a rare care.

A business that you run whether part-time, for cash only, or employing many people is an asset because it employs a system to keep creating wealth.

Paying off loans and debts are liabilities as you have to also pay the interest on such loans. They are like vampires sucking your money away even when you sleep. Pay debts off as soon as possible before they compound, or better yet when deciding on a big purchase, wait for 48 hours and if you still want it, find a way to fund it yourself such as saving so it doesn't become a liability but helps you in your life and thus become an asset.

For more tips on educating your children on the power of money, stay tuned and like our posts or contact us to arrange a tutor.

"Empowering Your Children's Financial Future: Why Financial Education Matters"

Why is it important for your children to understand money and wealth early?

The answer is simple, the power of compound interest. The longer your child invests, the more their money works for them.

Using a webpage like Nutmeg which offers a free compounding calculator https://www.nutmeg.com/compound-interest-calculator we can see the power of compounding.

If you invested £100 for 10 years your investment would be £12000 but your portfolio based on a conservative 5% would bring your final value close to £16000. That is a return of almost 25% with compounding.

If we did this for 20 years the investment would be £24000 but the return would be £41000 and a return of close to 60%.

For 40 years, the investment of £48000 would ensure a final return of close to a whopping £154000 so the return would be over 200%.

The benefits of early adoption of the wealth creation mindset

1. Is the power of compounding, making your money work for you. The great thing is that a 5% return is half the average return on the world's most popular stock the S&P 500 and you have the power to invest more at anytime.

2. The establishment of good and sound financial habits that will give you peace of mind to know that you have invested in your future will also encourage more financial education and enable you to understand the true value of other investments such as property and commodities.

3. Your children will learn the merits of investing wisely not just in financial acumen but in other aspects of their life such as which things they buy are of value or an asset or what is a liability or something that brings only short-term happiness.

What are you waiting for? Arrange a class and give your young the opportunity of a more financially stable mindset that will pay dividends back in the future.

Compound Returns Calculator (Daily, Monthly & Annually) - Nutmeg With our compound returns calculator, we’ll give you an estimate of the benefit. You can try it out today, no sign up required!

Financial literacy is the key to breaking the cycle of poverty. It empowers children with the knowledge and skills they need to manage their money wisely, set financial goals, and make informed decisions about their future. When schools don't provide this education, it's up to parents to fill the gap.

Why are children not taught anything about money at school?

1. Children are taught to pass exams where the goal is to test the memory retention of the child so that when they leave education they are domesticated and predisposed to work in jobs that pay taxes.

2. If every child was equipped with financial skills, few would choose to be an employee as your taxes would be 20% -30% of your income.

3. If told about investing and investments students will never use banks as a place to gain money as investments are mostly tax-free up to a point and actually accumulate over time at a better rate than bank interest rates. If you leave your money in the bank it loses value with inflation.

Want to learn more? Get in touch to secure your future with affordable tutor advice and lessons within London.

Below is a breakdown for every first lesson in tutoring you or your child about how to understand and take control of their money.

Unit 1: Money (55 Minutes)

What is money and its history?

Understanding the different forms of money (cash, credit cards, digital transactions)

Assets and Liabilities.

Inflation

Resources: Fake coinage and paper currency

Different currencies

Fiat currencies tied to banks

Supremacy of the US Dollar

Money is debt.

Understanding these elements builds the foundation for everything that follows.

Good day everyone and welcome to the page.

When I attended school many years ago we were told in order to get money we needed to work hard and save.

These words were the only financial literacy we learned until we left high school.

25 years later and now a teacher myself I am aghast at the lack of progress in teaching students the vital lesson about how money is created, how to create money to work for you and the power of investing.

Our children are entering the world without the critical wisdom of understanding the power of money or the subject is taboo at home. How can we expect our young people to make good decisions without the relevant tools?

When we buy a house or car, we study the benefits and pitfalls of these things but we don't see financial education in the same light, why?

My classes will teach you or your children how to make sound financial decisions and how to make money work for you. Why not invest in your children in the best possible manner and invest in their financial acumen ensuring they have the tools ready to maximize opportunities and avoid risks.

My classes are easy to learn and apply so why not get in touch now? Each lesson costs £15 per hour and unlike other tutors, I don't keep students for more than 6 lessons.

What are you waiting for? Get in touch now and secure your children's financial future.