4 Top tips for raising money savvy teens

When it comes to teaching our teens how to manage money, the hardest part can be knowing where to start. There are so many pieces to this necessary puzzle, but the time to start is now. Here are the top four factors that every teen must understand to insure financial independence and peace.

Number one: Learn to live beneath your means. Simply stated get a grip on your spending habits and spend less than you earn. Preferably, much less. Seems simple enough and it certainly isn’t rocket science, but this one little tip is what many people struggle with. Use a spending tracker for a few weeks to get a feel of how and where your money is spent. You may be surprised. Spending less than what we earn can sometimes be tough, especially with the peer pressure many teens face. Bottom line, it becomes a choice. A choice of priorities. If I was paid $1.00 for every time I heard, “I just don’t know where my money goes,” I’d be sitting in my beach chair enjoying the Hawaiian Islands.

Number two: Show them the power of saving early. Our teens are blessed with the gift of time, so show them how quickly $40 a month can add up to thousands with the magic of compounding interest. Whenever I show a group of teens the power of time and investing, I get a combination of jaws dropping and eyes widening. I think I have more fun than they do. Check out www.moneychimp.com for easy and fun calculators.

Number three: Understanding credit cards is non-negotiable. We must educate our teens on the pitfalls, as well as the advantages, of credit card usage. Without a complete understanding of how finance charges will sneak up on them, they are bound to get into trouble. Bottom line: if they can’t pay for the item in full when the bill arrives, they shouldn’t be buying it, (excluding emergencies, of course.) This ties in with item number one above; don’t spend what you don’t have.

Number four: Last, but certainly not least, introduce them to the importance of their credit score. A good credit score can mean the difference between being approved for an auto loan, getting a job (many employers will pull credit before hiring) or being able to qualify for a home someday. Without a doubt, interest rates they pay will be higher with poor scores, which equates to money flying out the window.

There are certainly more topics to cover when it comes to money education, but these four are the top on my list. Be sure to talk with your teens and seek help yourself, if needed. As always, I’m here if you need me.

The Power of NO!

Normally I prefer the word yes, but sometimes a ‘no’ is necessary!

New credit card laws may save the day for college bound teens

Credit cards can be a man’s (and woman’s) best friend…or worst enemy. They can save the day when an unexpected expense occurs, a flat tire at 2:00 am blows, or a medical emergency hits you from behind. In the event of an amazing sale at your favorite store, this little piece of plastic can become your biggest nightmare.

For college bound teens, credit card companies have, in years past, made it very easy to obtain credit cards. According to a recent Sallie Mae study, college students carried an average balance of $3,173 on their credit cards last year, a record high since the first analysis in 1998. A whopping 82 percent revolved a balance each month.
On May 22, President Barack Obama signed the Credit Card Accountability, Responsibility and Disclosure, or Credit CARD, Act of 2009 into law. Among many changes, one in particular is geared towards those college kids.

Effective February 2010, consumers under age 21who can’t prove an independent means of income or provide the signature of a co-signer aged 21 or older, won’t get approved for credit cards. The provision protects young people who lack the means or the knowledge to handle credit cards from drowning themselves into debt.

Although credit cards are important, especially for obtaining a credit history, which is necessary for good credit scores, people need to understand the pitfalls.

Given this new law, we should see more debt free college graduates. At least when it comes to credit cards!

Giving back, it’s not all about the money!

Be a Role Model:Follow your Dreams!

My friend, Britt Michaelian, M.A., wrote this article
recently. I loved it so much, I wanted to
share with you!

There’s no doubt about it. The love a mother feels for
her children is profound, but in this incredibly
beautiful experience of motherhood, many moms also
disconnect from their dreams. With constant demands on
our time, energy and attention, it is easy to see how
some moms can get lost in the very role of being the
mother. Now, take a moment to acknowledge the power a
mother holds when she has her own personal goals and
takes active steps to follow them. By having ambition
and taking an active role in her destiny, she is
showing her children how to follow their dreams!
Mothers are role models and children do as we do, not
as we say. Right?

The reality is that when everything in a mother’s life
becomes about her children, her own needs, wants and
desires get lost in the shuffle. In addition, children
can see this lack of self-care as an unconscious
example to follow. Ask yourself this question: Do you
want your children to follow their dreams or live a
life that consists of fulfilling their obligations?
The majority of moms want their children to be happy
which means the answer to this question is that you
want your children to spend their lives pursuing their
dreams!

So, just as the flight attendants demonstrate on
airplanes, we must remember we cannot truly encourage
and support our children in their efforts unless we put
our own oxygen masks on first! This act of self-care
is not selfish, it is necessary for own survival and
happiness. As our own interests may sometimes fall
second or third in line to the duties that are required
to raise our families, we cannot forget to take the
time we need to focus on what makes us happy. The
truth is that we need to feel good about and show love
to ourselves regularly so that we can show our children
how to love, value and respect themselves. We must
remind ourselves that everything we do as moms reflects
on our children and plays a large role on their future.

What You Can Do Now:

If you are ready to follow your dreams (or if you are
feeling out of touch with your inner passions) here are
some things you can do to get back on track and
reconnect with yourself.

First, take a deep breath and release all of your
feelings of inadequacy and self-doubt. You deserve to
have a passion, purpose and personal goals. Everyone
does! Letting go of the idea that you can’t have your
own interests because you are a mom is a self-limiting
belief that will not serve you or your children well.
Leave these false beliefs behind and move forward with
the understanding that by giving yourself your dreams
back, you will be happier, more fulfilled and a better
mom!

Second, start writing down a list of all of the dreams
that you have had throughout your life, even things
from childhood that you never thought could be
achieved. No dream is out of reach. Some may take
more creativity to achieve than others, so if you catch
yourself saying that something is impossible remind
yourself that there was a day when no one could fly!
Now, it’s your turn to spread your wings and soar!

Third, choose your top three dreams and write down 3 to
5 action steps you can take this week to achieve them.
Yes, this week! Then, commit to and continue with
those action steps until you have reached your goals.
Baby steps add up into massive growth very quickly!

Most importantly, enjoy every moment of this process
and surround yourself with people who support your
dreams. You really can do whatever you set your mind
to. And when you do, your children will have proof
that by taking decisive action dreams really can come
true!

Bio: Britt Michaelian, M.A. is a mompreneur with
multiple business and a new 12 week coaching program
for moms who are ready to take the leap and start a
lifestyle business. To receive 12 Business Building
Bonus Gifts and access to her FREE Business Building
Basics for Moms Teleseries, go to http://CoachBritt.com