Saturday 13 October 2012

How to Teach Financial Responsibility to Your Children


Someone who thinks about financial responsibility will never allow his/her children to spend money without his/her guidance. Kids are unknown to exhausted money affairs and they do not even acquainted about the value of money. It's all your duty how to teach them their financial responsibility. A five year child-boy can't do more with money but spend for his toy, chocolate or for fun. To allow them to get involved in small finance managements would be the first step for future financial obligations. How you can teach financial management and responsibilities?
·         Don't give money to your children without any cause. Hand them a task or some employment so that they can learn how money is important. After finishing the task, pay them for their job. Sometimes, you should make them to get money instead of gift on some special occasion like birthday. Tell them importance of money in their life and how it can secure our future. You can let them watch financial TV channel and help themselves to understand financial issues. Teach them in very easy language and include some interesting examples. Show them financial graphic, visual models or animation videos if possible.
·         Second thing is how to teach them to spend money wisely. Very initial thing to teach them about money saving. Tell your kids how to spend their precious money after saving. Realize them that every saved buck is equal to a made one. Allow them to spend two third of total money. Set money spending criteria in their mind. You can divide this in three part-
·         First for Essential Need- first they should spend for their very necessary things like school uniform, lunchbox, shoes etc. If at the time you have almost all these necessity then save some money for these kinds of need in future.
·         Second for Desire- Every child have a bunch of dreams and want lots of thing in their life. After spending on necessary things they should think about their tiny dream like bicycle, video game etc.
·         Third for Fun- afterward you can allow your child to have some fun enjoy his/her life by spending on entertainment.
·         You can allow your child to go for a job when he/she has grown enough to work. It will give them virtual knowledge of finance with decent earning.

Teaching financial responsibility to your children as early as possible is a very good and fruitful idea. Let them grow up and make their financial decision themselves.

Friday 12 October 2012

How to Use Financial Planner - Some Precautions


If you feel complexion in your financial planning and really need someone to help in this situation, you can hire a professional financial planner who will plan or assist in managing your finance.  A worthwhile guide by an adviser can less your burden but choosing a untalented or fraudster could pull you in the trench of troubles. When you decide to call a financial adviser, you should keep some precaution in your mind.
Whoever planner you call must be Certified Financial Adviser by a recognized institutes of Government. Research on his/her previous work and study background. Ask about his/her work experience and study background and inquire for provided information. A renowned Financial Advisory Organization will never come up foreword for assistance but they can advertise their services. Don't rely blindly on these glistening advertisements without probing their services and allegiances.
Sometimes you need to trust on a newbie but still you keep your inquiry on until entirely assurance. Use some precautions while handing over your important documents to him/her. Do not tell any unknown person about your personal and financial information like bank a/c banking password, income and investment and bank a/c information etc. you must not sign any check for advance payment to adviser until they demonstrate their reliability.
It is good to elect one from folk of financial contriver but still you need more knowledge and research to ponder them. Therefore it would be better to you having some knowledge or experience relevant to finance. If you are a modest salary based or business individual you can manage your personal finance yourself but if you are a big one as a company, firm or an organization then you will definitely need a Planner for it.
Anyways, you need more precautions while hiring a financial planner because once you lost your money by fraudsters you would have nothing to do except repentance.

Wednesday 10 October 2012

Banking Institutions - How They Work


Banking is a financial institute where great job of money get form. Sustainable employment, noteworthy accuracy and civility are the key features of banking employee's personality. How they manage? Work System in banking is so simplified for their workers that they remain gentle and calm during their sift. Let us try to understand the work system of banking institutions by studying separate department of job -
·         Depositary Department - The bank spreads its branches in whole nation or worldwide according to need and work. In every branch every kind of work has been dividing to employees. Depositary section has two divisions - cash deposit and check deposit -
§   Cash deposit - In this procedure first customer fill a printed slip with all necessary details of a/c, cash and depositor. After that he hands over the cash with this depositary slip to cashier who gives him a receipt of depositing the money as cash. Cashier credit customers a/c and gives money to superior authorities of bank.
§  Check deposit - For this customer attaches depository slip with the check and deliver it to banker who credit customers a/c and pass the check for clearing. In clearing section they give the checks to drawer banks collect the cash.
·         Withdrawal Department - As people deposit their money in other way they withdraw it time to time. The process of withdrawing is little different from deposit.
§  Cash withdrawal - you need to fill up a withdraw slip and give it to bank person and he will give you a token and you need to wait for sometimes. After a few minutes he will call your token no. and then you can collect your money.
§  Check withdrawal - Here is the same process and you can collect money by filling up slip and attaching this with check.
·         Loan Department - Loan is the major earning source of banking institutions. You can get the loan by showing repayment ability to bank. Bank will decide with a procedure if someone is eligible to receive the loan. Bank sends its employee to probe ones information provided in the application. After a long but finished in short time process bank gives loan to customer on high interest rate.
·         Customer Support - A separate counter every branch of bank have in it for Customer Care. If you want your a/c statement, check clearing related or any other information, you can visit here. If you are a dominant customer for bank then bank provide a relationship manager to hear from you.
·         Complains - Bank tries its best to make happy its customers but still if you have any complain in regarding to banking services or want give any suggestion to improve services, you can visit the Complain and Advice Department.

Monday 8 October 2012

FDI to Indian Economy - Will It help to Speedup


Recently Government of India announced most awaited and controversial FDI in India in various sector. There is a conflict about it but still majority of Indian citizens is in favor of this reforming effort. Although not everyone is taking it beneficial for Indian economy however, most people think it will play a great role to change the economic shape of India. Let's figure out primary main of Foreign Direct Investment in India -
Profit Get High - Foreign companies will open their store here and start making profit by selling their products to Indian costumer. In this process a sure amount of profit will go to Indian Govt. treasury. This amount of money is extra benefit apart from regular taxes. In other way these companies will depend on subsidiary Indian companies they will provide goods and other necessary stuff.
New Vacancies - Unemployment is a consistent and chief problem in growth of Indian economy. If FDI comes in retail and other sector it will allow overseas companies to open their stores in India. These new institutions and workshops will need lots of new staff and it will increase possibilities of jobs. Therefore thousands of new vacancies will arise.
Life to Poor Indian Companies - There are many companies sector-wise in India are not more beneficial and profitable. In this condition only FDI is only lucrative option where foreign companies invest in these companies and they will get partake profit for this. These poor companies actually need this kind of reformation.
Sovereignty in Retail - It has been assumed that after taking over retail in multiband by foreign in India, Indian regular and traditional retail store may get end. This is only a speculation because virtually Foreign Investment will create new completion in the retail market of India.
Hence FDI is more profitable and positive effort by Government of India than loss. Welcome new opportunities and make your mind broad for the new trends.