Teen Entrepreneurship-The gift that keeps on giving!

April 11, 2010

When I was growing up, one of the things I remember my mom telling me was “one of the best things I can do as a parent, besides loving you and keeping you healthy and safe, is to teach you how to be independent.” Back then, I really didn’t appreciate those words the way I do today. Funny thing, I use those same words on my son today!

There isn’t anything I wouldn’t do for my son and I would imagine that holds true for you and your kids as well. But, in that desire to ‘give everything’ to our kids, we oftentimes do a disservice to them. Teaching our kids how to be independent, especially financially, can be a gift of empowerment and confidence.

So where should we start when it comes to teaching them how to stand on their own two feet? It depends on the age, of course, but begin with something. As a money coach, I’ll focus on the financial aspect for this article.

Start with teaching them how to create their own income. Inspire them by introducing the world of entrepreneurship. This concept can be taught to them as early as elementary school! Imagine how your child would feel, knowing that he or she was able to make their own money! Imagine how you will feel, knowing the foundation was being laid for a solid and prosperous future for your children.

Sit with your kids and have them identify their skills, loves and talents. Brainstorm together and come up with various ways to take those gifts and create a small business. Start with something simple, like mowing lawns, walking dogs or taking the neighbors trash cans out. Teens can detail cars, run errands or wash windows. Once they get a taste of having their own cash, the motivation will kick in to do more. Especially if they know the Bank of Mom and Dad is no longer available.

Once the cash is in hand, you can teach them how to manage that money wisely to create even more money. Now the real fun begins!

If you have teens and would love to inspire the entrepreneurial spirit, I have an upcoming event your teens won’t want to miss. A Millionaire in the Making, The Biz Building Boot Camp for Teens is a 3 hour workshop being held Thursday, April 29th. Teens will learn how to build a business, market that business, create flyers, business cards and learn about designing a website. Money management skills and strategies will also be taught to assure they keep the money they work so hard for! The workshop is designed specifically for teens, age 13-18. Dinner will also be served. To learn more and register, visit http://teenscashcoach.com/upcoming-events. Seating is very limited, as I keep the workshop small, so be sure to sign up today!

4 Top tips for raising money savvy teens

February 22, 2010

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.

Biz ideas for those younger teens!

October 21, 2009

What does football and finances have in common?

October 6, 2009

OK, I admit it. I like football. This season has been especially exciting to watch. Although I don’t understand all the strategies just yet, I enjoy watching the carefully planned plays. Sometimes they work, sometimes they don’t, but nevertheless, very fun stuff to watch.

As I’m watching the games, it occurs to me that football and finances have a lot in common. (I admit, sometimes it’s hard for me to turn my ‘work’ brain off, even in the middle of an exciting game). The plays are carefully planned, the teams spend countless hours practicing and strategizing, there is an experienced coach that guides the team
to victory and they never give up. Their goal is specific, understood by all and there is serious motivation to win. Do you see where I am going with this?

Your money matters, your financial roadmap, requires the same mindset as those big, bad, burly football players. If you don’t have a specific plan in place, if you don’t practice and don’t have someone guiding you, you will probably not end up where you want to. When it’s time to send your kids to college, go on that vacation or retire, where are those funds coming from? What if you lost your job unexpectedly? Do you have reserves to fall back on?

Imagine those football players running onto the field with no plan, no plays. It would almost be painful to watch. Complete chaos. Is that what we enjoy watching? Doubtful.So, is your financial picture complete chaos? If so, don’t panic. It’s never too late to get things in order.

Start by having a plan. Write down specific goals, what action steps are necessary to achieve those goals and by when. If lifestyle changes must occur, define what those changes are and commit to that change. Sit down and pull all your bills out for the last month. Determine your fixed expenses and compare that to what you actually spend every month. Sometimes this alone can be a real eye opener. Where does all that extra money go? The local coffee house? Lunch out? Those shoes you had to have?

Here’s an interesting statistic: If you saved $4 per day (one coffee) for 5 days per week for 52 weeks and invested that money at 10%, do you know how much you would have after 40 years? Some would say about $80,000, $90,000 even $100,000. Nope, you would have $553,396. Wow. Compounding interest, your new best friend.

As we wind down this year and welcome the New Year, I encourage you to spend some time and make a plan. You deserve this. If you need some help, seek guidance. Taking action is the most important step you can take. I wish you the best.

3 key questions to ask yourself when looking at mutual funds

June 4, 2009

httpv://www.youtube.com/watch?v=Kxho-28uND8

Fun with mutual funds!

May 27, 2009

httpv://www.youtube.com/watch?v=PgzsF31j2rc

The Bulls vs. the Bears!

April 15, 2009

httpv://www.youtube.com/watch?v=uUwJH6KC5pU

The Money Minute for Kids on Entreprenuership!

February 3, 2009

httpv://www.youtube.com/watch?v=dvemjr4ixWA

Money Minute for Kids-S&P500? Not a car race!

January 21, 2009

httpv://au.youtube.com/watch?v=7spY4OyJSMg

Teen Checking Account – Part One

January 19, 2009

Is Your Teen Ready For A Checking Account?

There are many reasons to open a checking account for your teen. Before you do, there are several things you may want to consider.

Here are just a few…

If you’re considering a checking account for your teen, you probably feel that on some level they’re ready for the responsibility. Maybe they’ve just started working part-time and they want a safe place to keep their money. They may also want easy access to that money.

You may also be thinking of the convenience factor where you’re time is concerned. Maybe you don’t like going to the mall. Perhaps walking around with a lot of cash makes you uncomfortable.

You’re not alone. Many people prefer the option of paying for their purchases with a check. It can be more convenient to carry around checks, because you don’t have to remember to go to the bank ahead of time to withdraw money.

These days, using checks can be safer than carrying cash. If checks are stolen, they can be replaced. You can stop payment on a check that’s lost or stolen. If cash is lost or stolen -- it’s gone.

A checking account can also help your teen learn how to budget money. When you write a check, you are creating a written record of your purchase -- a record of your spending decisions. This can be a good discipline for your teen as he begins his life-long relationship with money.

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