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Ignorance is costly. Here's one example: People still pay the IRS up front by having money taken out of their paychecks which the IRS invests and collects interest on. They use this money to do what? Not really sure because U.S. citizens pay state taxes that cover most of their day-to-day needs. And they (the IRS) can afford to pay Equifax millions of dollars to do quien sabe que. That tells me they have a surplus somewhere.  Not only is the IRS acting in ignorance and without wisdom in the above instance, but American citizens, aren't rushing to change their tax withholding statuses to exempt. Why not? It's foolishness. Do you go to McDonald's and pay in advance for food you may not eat before the year's over? No. So why then do so many pay the IRS in advance just to get a refund on their own money? Especially when the IRS multiplying your money without giving you dividends! It's common knowledge - or should be - that it's not against the law to keep your money to invest for yourself throughout the year and then only send the IRS a check for your actual taxes owed. Businesses do this. People have been told to select their withholding without employers actually explaining how the tax system works. And that's ignorance at its best - allowing the status quo to set an information standard. Thankfully, I was taught that I don't have to pay them up front and then get a refund on my own money after they've earned compound interest on it for months. I know that I can keep my money to invest, increase and multiply for my household and only give them one payment each year based on what I owe and no freebies. I'm not in the business of making everyone else rich but myself. There is plenty of money to go around, and I'm getting my share and learning how to increase what I spend so that I make more than I'm putting out, and I'm doing that without dishonest business practices. I've simply learned how to make my money work for me instead of me working (striving) for it. I can teach you to do the same. I have a financial course coming in 2018 that'll teach how to break out of the rat race and prosper by the principles of wisdom. Look out for it. But, if you can't wait until 2018 and need a financial breakthrough now, schedule a call or book a package with me. I'll even give you a 2-for-1 if you book a Financial Deliverance Session by 12/31/17.   I mentioned in Teaching Teens About Debt that I've been asked about paying an allowance. I don't pay an allowance personally, I pay for working. My son is 14 and has a few monthly financial obligations that have to do with gaming services. He makes some money with that and if he wants more I give him the option of working to earn it. I pay him an hourly wage according to his age. So he's presently making $14/hour; in December he'll increase to $15. The work I have him do ranges from chores to assisting me with my businesses, which is the majority of how he earns. Cleaning his room and trash duties are excluded from payment because those are his required family contributions. This week he's checking and correcting the links in this blog because some of them were dead due to the change from zsolvesproblems.com to ZariBanks.com. There are times when I'll have some cash and give him a couple dollars when he doesn't have any. He has a savings account and a prepaid debit card, but it's nice to have cold, hard cash when he wants to run to the convenience store for a soda or something. But that's an every now and then thing, not a habit. That may seem radical to you, but it's my responsibility to teach him how to earn and use money. I've been to high school and college, taught high school and I can verify that financial wisdom isn't taught intentionally. I also taught financial literacy courses to adults for two years, and usually by the time adults seek help it's because they're in financial turmoil. I'm not willing to allow my son to wait until he's in trouble to get wisdom. I hope you're not going through financial difficulty right now, but if you are I have strategies that can turn things around for you quickly. My Financial Breakthrough Session is just what you need.   What you see above is a record of debt owed to me and payments made by my son. Earlier this year he wanted to make a large purchase that was outside of his current financial ability, and he approached me for credit. We discussed it and I agreed that it was a worthwhile investment for him because the product relates to his income source and one of his dreams (future goals), and because it was a lesson on debt that I want him to internalize ASAP. You know, it's one thing for me to repeatedly say don't get into debt, and another, more powerful thing for him to experience it. This isn't the first time he's experienced being indebted to me for a purchase, of course, and obviously owing me hasn't hit him hard enough just yet so I'm thankful the opportunity presented itself again while he's still under my charge. I was inspired to write this post today (6.29.2016) because he came to me and asked for money, and I happily replied, "I will not loan you anything else until your current debt is cleared." And let me tell ya ... he put in an hour's work to get back on track settling this debt because he doesn't want his bank to remain closed. Folks have asked me about giving allowances and how I determine how much to pay him, and I'll share that with you in a future post later this month. My most-popular mentoring session is The Financial Breakthrough. If you're in need of a money turnaround. Don't wait another minute. Schedule with me today to prepare for increase in your future.  |
Zari Banks, M.EdLife-Hack Strategist 
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