5 Simple Tips To Teach Your Kids About Money


When children start growing, they seem to depend on us less every single day. Teachers and friends have a big influence on them, and they start doing things on their own. However as parents, it’s still important we watch over what they’re doing and step in whenever necessary.

A big part of growing up is learning how to manage money. Even if they are not working yet, it’s important to teach them the importance of saving money, how to create a budget, and how to discriminate between needs and wants. Also, once they do start working, it’s crucial to teach them about taxes and their own financial responsibilities.

Keep in mind that our kids learn more from our actions than our words, so it’s key to lead by example.

Here are five suggestions so you can teach financial skills to your teenager:

1 – Work on a budget together.

It doesn’t have to be a general household budget, but can be a simple as a monthly lunch budget, so he or she can see how everything adds up. By learning to create a budget, teens can learn to be financially fit later in life.

2 – Leave it to them.

Ask your child for suggestions on how to save a bit more money each month. That way your child feels you value their opinion and are not simply trying to lecture all the time. It’s important to show teens that you trust their judgment.

3 – Teach the importance of saving.

Instill the importance of living under your means to increase your savings. Don’t buy things you cannot afford.

4 – Never assume.

Don’t assume teens understand common financial terms. Discuss what interest means, how it is calculated, how it adds up, and other related terms.

5 – Break the silence.

Many of us grew up feeling it was in poor taste to discuss money, which led to little or no knowledge about how to manage our finances when we were teens. Welcome any questions your kids might have, don’t belittle them even if they ask something you find obvious, and listen to their concerns.

Do you find it difficult to talk with your kids about money and don’t know where to start? It’s easier than you think.

Educating your child on the basics of personal finance is a crucial step for them to succeed in life once they graduate from high school… and beyond. Teaching kids about money is a crucial step to having practical money skills for life.

Most Taxed Cities And States In The US


 

Have you ever wondered about the tax forms within different cities? We found a wonderful infographic from H&R Block that discusses all the tax rates depending on cities and states.

Tax Cities In The US

Resource: H&R Block

You Can Save Money By Amending Your Federal Tax Return


You may discover you made a mistake on your tax return. Sometimes it’s not a big deal. Other times it can cost you money. You may even make money (if you can call it that) by filing an amended return if you are entitled to a refund. Other times you are absolutely required to amend.

If you’re one of those people who isn’t always perfect, here are 10 tips on amending your return:


Tip #1: When You Should Amend Your Tax Return

You should amend your tax return if you need to correct your filing status, the number of dependents claimed or your total income. You should also amend your return to claim tax deductions or tax credits that you did not claim when you filed your original return. By amending the return to include these tax deductions or tax credits your tax burden will almost certainly be reduced. These are just a few reasons to amend your return. The instructions for Form 1040X, Amended U.S. Individual Income Tax Return, list more reasons to amend a return.

Tip #2: When You SHOULD NOT Amend Your Tax Return

In some cases, there’s no need for you to amend your tax return, even if you think you do. Here’s an easy example – the IRS will make corrections, such as math errors, for you. Forget to include a required schedule with your return? Don’t worry about it – the IRS will mail you a notice about the missing item.

In some cases, there’s no need for you to amend your tax return, even if you think you do. Here’s an easy example – the IRS will make corrections, such as math errors, for you. Forget to include a required schedule with your return? Don’t worry about it – the IRS will mail you a notice about the missing item.

Tip #3: Using Form 1040X

Use Form 1040X to amend your return. You can get Form 1040X on IRS.gov/forms at any time. Make note however that you must file it by paper; you cannot file it electronically. Make sure you check the box at the top that shows which year you are amending. Review Form 1040X’s three columns. Column A shows numbers from the original return. Column B shows the net increase or decrease for the numbers you are changing. Column C shows the corrected amounts. Explain what you are changing and the reasons why on the back of the form. You don’t want to leave anything to chance.


Tip #4: More Than One Tax Year

If you need to file an amended return for more than one year, you must use a separate 1040X for each tax year. Mail them in separate envelopes to the IRS. Send each year to the specific address identified within the instructions for Form 1040X.

Tip #5: Other Forms Or Schedules

If your changes have to do with other tax forms or schedules, make sure you attach them to Form 1040X when you file. It will definitely cause a delay if you don’t.

Tip #6: Amending To Claim An Additional Refund 

Everyone loves an additional refund! I’m sure you’re anxiously waiting to get the amended form out if you are entitled to receive more money back from the IRS. Unfortunately, if you are waiting for a refund from your original tax return, don’t file your amended return until after you receive the refund. All amended returns take up to 16 weeks to process. You’ll have to wait a bit to receive any additional refund you are owed.

Tip # 7: Amending To Pay Additional Tax 

This one is the worst. You have to file an amended return because you owe more tax than you originally indicated. In that case, you should file Form 1040X and pay the tax as soon as possible. This will limit interest and penalty charges.

Tip #8: When To Reconcile the Premium Tax Credit 

You may also want to file an amended return if:

  • You incorrectly claimed a premium tax credit, or
  • If you received a corrected or voided Form 1095-A (Health Insurance Marketplace Statement).


Tip #9: When To File For Your Refund

When to file – Everyone wants a refund. Make sure you don’t miss out on yours! You have a limited time to amend your return in order to do so. You can claim a refund by filing Form 1040X within three years from the date you filed your original tax return. You can also file it within two years from the date you paid the tax, if that date is later than the three-year rule.

Tip #10: How To Track Your Return

You can track the status of your amended tax return three weeks after you file with the “Where’s My Amended Return?” tool available on IRS.gov or by phone at 866-464-2050.