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3 Important Money Lessons Every Child Should Learn



money lessons

Entrepreneurship should be a goal for everyone. While we all have to be employed in order to earn money, we must remember that we can’t just be working for someone else for the rest of our lives. In one way or another, we must be able to find a way to start our own business that we can develop and grow whether full time or as a side income.

These days, many entrepreneurs are starting their journey when they’re already older. As entrepreneurial parents, your children can start their financial education and their journey to the business world as early as possible to increase their chances of success in the future.

The best way to develop business sense in children is to incorporate money lessons and related concepts into play and guided situations. Don’t underestimate them because they learn fast through experience, imitation and observation.

Here are 3 lessons you can teach your children at a young age:

1. Budgeting

Most children will often ask parents to buy toys, sweets and other things they see while in shopping centers. If your kids are starting to ask you to stuff like that more frequently, introduce to them the concept that money is limited. Inform them that mom and dad will have to work first to earn money to buy more things.

If your current cash permits, you can tell them that they can only choose one item to buy at the moment. Otherwise, you can inform them of the consequences of buying something they really can’t afford, which leads to not having something else that is more important to their daily lives.

“It’s not about ideas. It’s about making ideas happen.” – Scott Belsky

In this way, children will learn how to prioritize and be able to differentiate their needs from wants. Even if you’re rich, it’s wise for the children to learn this concept so that they won’t grow up spoiled.

Activity Idea: Visit a candy shop or a snack bar and give your child a certain amount of money. Let him do his own shopping as he makes sure that he has enough money for the things he wants to buy. Let them figure out what they want and how much they can afford with the budget that was given to them.

2. It pays to shop around

Children generally want to own the first attractive toy they see in the store. This should be a good opportunity for you to teach them about deferring the purchase so you have more time to compare the same products in other stores or find some good alternatives. It’s wise to explain why you’re not buying what they want yet; otherwise, they would be throwing tantrums in the store.

By shopping around, they will soon realize that a dozen apples in shopping centers may be more expensive than those in the farmer’s markets or a generic doll may be much more affordable than the famous branded ones that many girls love.

Activity Idea: Bring your children during “grocery days” — the days when you need to buy important supplies for the home. But before you go, create a shopping list and involve your kids in deciding what the house needs. When shopping, let the children have the list and let them decide which brands you should be buying.

Considering that this involves major purchases, you should have the final say on what should go into the cart but make sure to explain to the kids about product quality, prices and other factors that affect your decisions. The next time you buy groceries with the kids, consider going to another store or better yet, a farmers’ market where products have low prices.

3. Time is gold

It may be a cliché, but children will have to understand that they only have 24 hours a day to do productive things or waste away. Just like their summer breaks, they have the freedom to do what they want such as earning money by getting jobs for kids, selling food at their makeshift stalls on the yard, studying for the lessons to be taught in the next semester or just playing around with friends and taking vacations. They should understand that their decisions can affect their future.

“The best time to plant a tree was 20 years ago. The second best time is now.” – Chinese proverb

Activity Idea: Let your child list down what she wants to do over the weekend or the school break. Sit down with them and brainstorm the benefits of each activity for their future. The purpose of the activity is to let them understand the concept of time management in terms of self-development, and thus, avoid imposing activities that they should be doing. Let them enjoy the break in ways they know how — with your guidance of course.

What money lessons were you taught as a kid? Please leave your thoughts below!

Maricor Bunal writes for Loansolutions to help educate people in making informed-decisions on taking out loans and becoming responsible borrowers. Being the COO, she feels it is her social responsibility to do so. Learn more from her as she shares tips, advice and stories on finance. Also, she's fond of 9GAG, so you might read some random stuff over there.

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How Entrepreneurs Are Harnessing LLCs to Launch Successful Startups

LLCs have unique advantages for starting up and growing a successful business



why you should set up an LLC

In my entrepreneurial journey, I’ve learned that LLCs have unique advantages for starting up and growing a successful business. But, before delving into the advantages, it’s essential to grasp the fundamentals of what an LLC is and how it operates. 

What is an LLC?

An LLC is a hybrid business entity that combines the liability protection of a corporation with the pass-through taxation of a partnership or sole proprietorship. This unique blend provides entrepreneurs with the best of both worlds: personal asset protection and simplified taxation.

One of the most significant advantages of an LLC is its limited liability feature. This means that as the owner, my personal assets are shielded from any liabilities or debts incurred by the business.

In the event of lawsuits or financial obligations, only the assets of the LLC are at risk, offering me peace of mind and protecting my personal wealth.

Advantages of Forming an LLC

Flexibility in Management and Structure

Another aspect of the LLC that appealed to me was its flexibility in management and structure. Unlike corporations, which have rigid hierarchies and formalities, LLCs allow for a more relaxed approach to governance. As the founder, I have the freedom to structure the company in a way that suits the needs and goals of my startup.

For instance, LLCs can choose to be managed by their members (owners) or appoint a manager to oversee operations. This flexibility enables me to maintain full control of the business or delegate management responsibilities to trusted individuals while retaining ownership.

Additionally, LLCs are not bound by strict meeting requirements or extensive record-keeping obligations, reducing administrative burdens and allowing me to focus on building and growing the business.

Pass-Through Taxation and Financial Efficiency

One of the most attractive features of an LLC, particularly for startups, is its pass-through taxation. Unlike corporations, which are subject to double taxation (taxation at both the corporate and individual levels), LLCs pass profits and losses directly to their members’ personal tax returns.

This tax efficiency not only simplifies the filing process but also allows for greater flexibility in managing cash flow and reinvesting profits back into the business. As an entrepreneur, minimizing tax liabilities and maximizing financial efficiency are critical components of long-term success, and the pass-through taxation feature of an LLC aligns perfectly with these objectives.

Enhanced Credibility and Professionalism

Establishing an LLC can also enhance the credibility and professionalism of a startup. Unlike sole proprietorships or general partnerships, which may be perceived as informal or less legitimate, an LLC provides a formal business structure that instills confidence in customers, investors, and partners.

By operating under the umbrella of an LLC, I can present my startup as a reputable and established entity, which can open doors to opportunities such as securing financing, attracting top talent, and forging strategic partnerships.

This enhanced credibility can be a significant advantage, particularly in competitive industries or when seeking to differentiate my startup in the market.

Protection of Intellectual Property and Brand Assets

For startups built around innovative ideas or unique intellectual property, protecting these assets is paramount. An LLC offers an additional layer of protection for intellectual property and brand assets, safeguarding them from infringement or unauthorized use.

By registering trademarks, copyrights, or patents under the name of the LLC, I can establish legal ownership and enforce my rights more effectively in the event of disputes or infringement claims. This protection not only preserves the value of my intellectual property but also enhances the overall stability and longevity of the startup.

Steps to Form an LLC

Let us now look at the general steps to form an LLC for your business:

Step 1: Choose a Name for Your LLC

Selecting a unique and distinguishable name is the first step in forming an LLC. Ensure that the name you choose complies with the rules set by your state’s LLC division. Typically, the name must end with “Limited Liability Company,” “LLC,” or an abbreviation of these terms.

Additionally, the name should not infringe on the trademarks of existing businesses.

Step 2: Designate a Registered Agent

A registered agent is an individual or entity appointed to receive legal documents, such as lawsuits or subpoenas, on behalf of the LLC. The registered agent must have a physical address within the state where the LLC is formed.

For instance, if you are forming an LLC in Texas, ensure that your registered agent has a physical address in Texas.

This role is crucial for ensuring that the LLC remains compliant with legal requirements and maintains good standing.

Step 3: File Articles of Organization

The Articles of Organization, also known as a Certificate of Formation or Certificate of Organization in some states, is a document that formally establishes the LLC. You’ll need to submit this document to the appropriate state agency, usually the Secretary of State or Division of Corporations.

The articles typically include basic information such as the LLC’s name, address, registered agent details, and the purpose of the business.

Step 4: Create an Operating Agreement

While not always a legal requirement, drafting an operating agreement is highly recommended for LLCs. This document outlines the ownership structure, management roles, voting rights, profit-sharing arrangements, and other important aspects of the LLC’s operations.

Even if you’re the sole owner of the LLC, having an operating agreement in place can help clarify expectations and prevent disputes in the future.

Step 5: Obtain an Employer Identification Number (EIN)

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify your LLC for tax purposes.

Even if your LLC doesn’t have employees, obtaining an EIN is necessary for opening a business bank account, filing taxes, and conducting other financial transactions.

Step 6: Obtain Necessary Permits and Licenses

Depending on the nature of your business and its location, you may need to obtain various permits, licenses, or certifications to operate legally. These requirements can vary widely from one industry and jurisdiction to another. Common examples include business licenses, zoning permits, health permits, and professional licenses.

In my entrepreneurial journey, the decision to establish my startups as LLCs has been instrumental in mitigating risks, optimizing financial performance, and positioning my ventures for long-term success.

By harnessing the advantages of the LLC structure, I’ve been able to navigate the complexities of entrepreneurship with confidence and resilience, laying the groundwork for a bright and prosperous future.

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Build a Strong IT Team with These Smart Hiring Tips

Without dedicated IT staff, your company may not be able to function as efficiently or effectively



Hiring tips for tech industry

The role of IT staff in your company is not only essential but also ever-evolving. As your business grows, so does the need for qualified IT staff and more robust recruiting solutions.

After all, from maintaining and troubleshooting the computer systems that keep your business running smoothly, IT staff also help employees stay connected and productive by providing technical support at all times. (more…)

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5 Important Legal Tips Every Entrepreneur Should Know

With a firm commitment to legal knowledge, you pave the way to grow your business sustainably



legal tips for entrepreneurs

Embarking on the entrepreneurial path is a courageous venture that calls for a diverse skill set to achieve enduring success.

While creativity, drive, and strategic vision are paramount, integrating legal insight into your entrepreneurial toolkit can be a game-changer.

This comprehensive guide delves deeper into the five critical steps that can empower you to navigate the intricate legal landscape and propel your venture toward prosperity. (more…)

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6 Hacks to Boost Your Productivity as a Business Owner

To improve how much you get done each day, it’s smart to establish routines and use careful planning



productivity for business owners

Entrepreneurs are always looking for ways to get more done with the time and resources they have. Business owners can use clever productivity tricks to break these limits and make the most of their projects. (more…)

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