It is what you say! 3 Tips when talking to your kids about money
August 12, 2010
We’ve often heard the saying, “it’s not what you say, but how you say it that matters.” I agree with that statement; however I have a slight twist to it.
With the present state of the economy, we have watched many families struggle, if not our own family. People are fearful, worried about their future, their kids future, finding a job, paying the mortgage or putting food on the table. As parents, we are concerned that our kids will be traumatized by these experiences and somehow lead a life of ongoing challenges.
The language you use when speaking with your kids can dramatically affect whether they see “challenges or opportunities”, “tests of strength or life as unfair”, “tests of courage or I give up.” Here are three tips that can help you when speaking to your kids.
Tip #1
When the kids are pleading with you to buy something, rather than saying, “we can’t afford that” respond with, “that is not a good use of our money right now.” This statement shifts the mindset from ‘living in lack’ to ‘living with choices.’ We all have choices; we just need to be aware they exist.
Tip #2
Empower your kids by shifting the opportunity to them. In the above example when your kids are asking you to buy something, your response could be something like “what can you do to afford buying this for yourself?” Now your kids have an opportunity to think about how they can make their own money and become independent from mom or dad.
Tip #3
Perseverance in life is a crucial life skill to teach your kids. Whether you are following your dream or getting out of debt, never giving up is a powerful message to give your kids. When talking at the dinner table or on a drive, bring up this important topic and discuss examples in your own world.
Kids are watching you and how you respond to life. Give them the gift of a strong mindset by shifting your own thoughts and beliefs.
We parents don’t know it all about money…and its okay!
July 19, 2010
The final mistake that I feel parents are making is not getting educated themselves. A recent Jumpstart Coalition survey showed that “relatively few teachers felt they were adequately prepared to teach personal finance topics.” Parents and teachers, struggle with feeling educated themselves when it comes to financial literacy. It’s no wonder these topics aren’t discussed at home (number one mistake). Some parents are ashamed or embarrassed to admit they don’t know how to balance a checkbook or truly understand how credit cards work. Understand that it’s okay not to know everything, but it’s important to seek help. Reach out and get the education that will benefit both you and your kids. Empowerment and independence is a gift for every family member. Besides, its good for your kids to see that we as parents don’t know everything.
I’m not proud of this one, but I’m guilty too!
June 28, 2010
Number four mistake: Feeling guilty. Boy, do I know this one! As a single mom, wanting to give my child everything is a natural instinct. If I don’t, the ‘mom guilt’ runs amuck. We need to let go of the thought that we need to give our kids everything. I often hear, “I want to give my kids the things I never had.” I understand this and can relate, but there comes a point where this begins to work against us. If we continue to gift our kids with ‘things’, just because, we are sending the wrong messages. Not always, but oftentimes, these kids begin to feel entitled and will expect that trend to continue. Don’t feel the guilts, instead feel proud that you are teaching your kids invaluable lessons. This is a work in progress for me too, so I completely understand if it comes with some bumps.
Number two mistake that parents are making with teaching kids about money!
May 26, 2010
Stop playing the ATM machine!!. Whether your kids want to hit the mall or grab a cup of coffee with friends, it seems the first thing they do is come running to the Bank of Mom or Dad and take a withdrawal. Stop! If they don’t have the cash from their own doing, they just can’t buy what they want to buy. We as parents, myself included, struggle with the desire to be our child’s ‘friend’. As friends we want to do and give in order to please, but as parents, this will backfire. We are doing our kids a disservice if we don’t teach them how to be self reliant. We won’t always be popular with our kids, which is fine. We’re the parents, we’re the disciplinarian. That’s what they need, and deep down, really want.
Watch for number three reason next week! Oh joy :)
Top 5 mistakes parents are making with teens and money: Mistake number one
May 19, 2010
Money is a topic that makes most people cringe. Especially in the present economic climate, it’s generally not a fun conversation to have. I’d like to change that. Some tell me that my mission of teaching financial literacy to teens is similar to turning the Titanic…it’s going to take a long, long time and require a lot of effort.
Fine, we better get moving now then!
Although I prefer to discuss what we as parents are doing correctly, I’ve been asked several times from various people, to talk about what we are doing wrong. Let me start by saying, don’t beat yourself up if you find some of the following issues ring true for you. We are all doing the best we can, so take the information, make the changes that apply and move forward.
Number one mistake: parents aren’t talking! We talk about school, friends, drugs, smoking, sports and more, but never about money. Without question, everything I mentioned above is critical, it’s just not enough. Start the conversation about money over dinner, while driving or when shopping at the grocery store. It doesn’t need to be some heavy, boring talk, which would tune your kids out anyways. The intention is to bring an awareness of spending habits, saving habits, credit card pitfalls, and more, to your child’s radar.
Keep it simple, keep it short. Talk often, listen more.
Stay tuned for next week when I discuss mistake number two!
Fantastic stories by Teen Entrepreneurs
April 27, 2010
I love sharing inspiring articles that I come across. You’ve got to have your kids read this one as well! Enjoy.
Forbes article on kids and money
April 21, 2010
Here’s a great article that Forbes put out recently on kids and money. I thought you would enjoy it. Check it out here:
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.
New credit card laws may save the day for college bound teens
January 20, 2010
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!
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