9 Important Money Skills All Parents Should Teach Their Teenagers

Posted on May 15, 2021 by Tim Connolly

Top 14 Ways to Teach Kids About Money — 9 Important Money Skills All Parents Should Teach Their Teenagers

Money Skills For Teenagers

One of the ways young adults get into trouble these days is with their finances. Schools are woefully inept at teaching personal financial planning, and most parents also don’t have a clue these days.

If I had to bet, most people are living paycheck to paycheck today, so it’s harder to think long term. But, think long term you must if you want to focus on money management for children.

Here are 9 important money skills all parents should teach their teenagers.

1. Let your teenager get a job

A lot of parents are afraid to let their teenagers work. However, studies show that teenagers who have jobs of up to 19 hours a week actually get better grades and are more likely to get a secondary education. Plus, it looks good on their college applications. It is also teaching them time management of balancing work with school.

2. Open a Child Checking Account

When your teenager gets a job, you should get them their own checking account. Until they’re 18 (19 in some states) they’ll be part of your account, in that you’ll be a signer on their account and if they overdraft the money you are responsible

Opening their own checking account, then working with them to do their bank statement monthly is a good way for them to learn money management skills. But don’t be surprised they overdraft the account a few times. Teach them to set aside some money each week into a savings account separate from their checking.

3. Give your teenager an allowance

Even if your child has a job, giving them an allowance is a good thing. You don’t want to give them “free money” however. The money you give your teen should be money you would spend on school lunches, activities, personal hygiene products, and clothing.

So, whatever you’ve budgeted for these items, give directly to your teen and let them budget the money to get these things. The trick is not to bail them out when and if they mess up

4. Teach your teenager how to budget

When you give them free reign on their own money, and help them work out a budget to start, they will learn money management skills that will carry them far into their adult life. So, if your child has a car payment, insurance, a cell phone, clothing, school supplies, etc..

Put this all into their budget and then let them take care of it. Check up each month to make sure they’re on track, but mostly stay hands off once you show them so they can learn.

5. Teach your teen how to pay bills

When you’ve given them an allowance to cover the things you normally pay directly for, and they have a job, along with their own checking account they will now learn how to pay their own bills. This is a great skill to have because so many young adults go out into the world having no idea about these things.

Your child will be head of the pack. It might be a good practice to show them a sample budget for when they have their own place too so they understand about water, electric, trash, rent and other types of bills they do not have now.

6. Teach your teen how to invest money

Part of managing money should also include how to save and invest their money. A portion of their money, probably at least 10 percent should be saved in both short term and long term savings accounts. You can even teach them how to start a 401K, which will truly set them ahead of their peers when they move out on their own.

7. Teach your teenager how credit works

Credit today is truly a dangerous thing. Some credit cards are being offered that charge more than 50 percent interest. Plus, the credit card companies prey on young people by sending more than one or two offers to them daily once they reach the age that it’s legal, usually college age. Teaching them how this works is imperative so they can see what a trap it can become if they’re not wise and careful

8. Teach your teen wise spending habits

Letting a teenager handle their own money will teach them wise spending habits. This is most especially true if you do not bail them out when they make a mistake.

For example, if your child knew that prom was coming up but did not plan for expenses, don’t give them the extra money. It can be a hard line to take, but as long as you explain everything when you first give it all over to them, they’re going to learn fast.

9. Be open with your teen about your financials

Finally, and this is a big one. Don’t hide your finances form your children. So many parents see this as personal information and while it is to a point, teenagers really do need to know how hard you work to provide what you provide.

If they understand it more, and get how much work goes into having that meal on the table each night their wants will become a lot more realistic as they get older.

5 key budgeting basics for teens

Posted on April 16, 2021July 12, 2021 by Tim Connolly

Before your teen leaves home, they should know how to create a budget, how to track spending, and how to save for the future, and its your responsibility to teach money management to children. While budgeting may seem like a hassle to some teens, research shows that young people who have good financial habits early on often grow up to be financially responsible adults.

1. Create a Money List – Sit down with your teen and create a list of everything they consume regularly. Aliche says that money lists allow young people get a physical picture of their money and the ins and outs of their spending habits. At the top of the money list, have them write down their monthly income.

2. Next, go through the list and write down how much they spend on their expenses which can include their bills, food, entertainment, clothes, and school supplies.

3. Finally, have them add up all of the items on the list and subtract it from their available resources and then they will have an idea of how much they have left over to spend on other stuff or better yet, save!

Once they have compiled this list and understand what each expense costs, they will be able to plan their spending. This can be done by writing it down in a notebook or by using a spreadsheet, such as Microsoft Excel or Google Sheets.

From there you can continue the conversation about the importance of budgeting. Here are a few budgeting basics you can share with them.

Track spending

It is important a young person sees from where their money comes and to where it leaves. Over the course of a month, have your teen record each and every purchase so they can better visualize their spending. According to the American Institute of Certified Public Accountants, showing your child how to save and calculate receipts is one way to help them keep their spending on track.

Identify income

Will they be spending money from a monthly allowance, financial aid, or wages from their job? Help them understand the importance of planning. Have them write down their monthly expenses like rent, laundry, food and monthly bills. Talk to them about unexpected or emergency costs and the prudence of establishing a “safety net” savings account.

Be a role model

Budgeting is a tool and if you show them how you use it habitually it will become second nature to them, too. She says when it comes to money behaviors kids take their cues from their parents; being a good example of healthy financial habits is the best teaching you can provide. A couple of ways to do this can be to pair financial lessons with what’s important to them and by doing your bills in front of them.

Emphasize saving and giving

Another key component to budgeting is saving. When young people save, Aliche says that it helps them build towards wealth.

A helpful way to do this is to create “spend,” “save,” and “give” accounts. Percentages of the money your teen saves can be deposited in their bank account, be invested, donated or spent on their financial responsibilities and fun.

Aliche recommends the following percentage allocations for deposits into each account:

Savings and investing – 20% of their income should be deposited into their savings account for a rainy day, a big-ticket item, a vacation, or a venture that they would like to invest in.
Giving – 10% of their earnings can be put away in the giving account to be used towards donations to a charitable organization
Spending – 70% of their money should be spent on necessities like bills, groceries and toiletries. Once they’ve handled their business they can treat themselves.

While your teen’s commitments and obligations may change, specifying percentage goals for their money is a great way for them to stay on track.

Consider digital help

Not everything has to be done on paper. In fact, there are an array of mobile apps and websites that can help with budgeting, saving, and keeping track of all your finances.

These mobile apps can help your teen stay on top of their money spending habits while they’re on the go:

Mint – Has a website and mobile app that allows you to create budgets, track spending by category, and provides personalized tips and advice about your money. The app can be linked to your bank, credit, and loan accounts and updates automatically.

GoodBudget – Mocks envelope budgeting. If you and your teen are splitting some expenses, this might be a good fit. Within the app, your teen can share their budget with you through their cloud technology.

Prosper Daily – Helps with budgeting and to protect credit and debit cards from fraud and error. The app links to accounts and shows analytics from every transaction made.

As you and your teen plan for their finances after high school remember that you are their financial advisors and examples. What you teach them, and how you handle your own money, will help them when they are on their own.

financial education, teaching kids about money, teaching teens

Avoid Teenage Money Problems with These Top Financial Tips for Teens

Posted on April 16, 2021 by Tim Connolly

The 7 Best Personal Finance Books to Read in 2021 - Erin Gobler — Avoid Teenage Money Problems with These Top Financial Tips for Teens

Hey, teens! Your parents may give you some cash toward the things you want to buy, but you may feel better if you could earn and save money to put towards your goals. This is why it’s important to know how to handle personal finances and how important financial education for kids is.

These are the Top Financial Tips for Teens

Use Time Wisely

If you’re not making a lot of money, it doesn’t matter. What matters is time, and your money will have a lot of it because you’re young. For example, if you have a summer job and at the end of it you saved $1,000, you save that money a variety of ways, including:

Opening a savings account or open one with your parents so that you receive a higher interest rate.
Giving a portion of your money to your parents to invest in a business, stocks, bonds, or real estate.
Save your money at home, add to it, and then invest it.

If you invest your $1,000 at a rate of return of 5% and don’t do anything else for 50 years, you will have $11,467.49. At the end of 30 years, you would have $4,321.99. Imagine how fast your money will grow if you start saving very early. Time is on your side right now so take advantage of it.

Get into the Habit of Saving

I’ve touched on saving in the first point, but it begs to repeat. If your parents saved your birthday or holiday money since your birth, you’re off to a great start. Keep the momentum going by saving any money given to you by your grandparents, parents, and other relatives.

When you get older, you could do things around your neighborhood, such as shoveling snow, babysitting, or mowing lawns. Save the money you receive because it will add up over time.

Create a Budget

It’s a good idea to have a teenage financial budget. Why? Because as you get older, you may prefer paying for certain items such as makeup, clothing, and bath and body. Keep in mind that a budget for high school students may have more expenses.

For instance, if you have a car, you’ll have to budget for gas, insurance, and repairs. However, your parents may help pay for the latter. You want your income to exceed your expenses. If it doesn’t see where you can save decrease your expenses.

Track and Lower Your Expenses

Not only can you make deposits at the ATM, but when you swipe your debit card, you can track your spending. It’s a great way to manage your money. And if you notice your balance getting low, it means you’re spending too much and time to save more money.

Establish a Credit History

Your parents can help you establish a credit history before you go out on your own, which is better than dropping you off at college, handing you a credit card, which essentially says, “Good luck. Go be responsible.”

Ask your parents to add you as an authorized user on a credit card. They don’t have to give you access to it. However, adding you to the account opens a credit file in your name. Once this happens, you’ll want to check and understand what makes up a credit score.

Think Carefully about College

With student loan debt on the rise, you may want to delay college or opt for community college since the tuition costs less than a four-year university. If you know that you want to go to college, open a College Savings Account so that you can save money for school. You can also apply for grants and scholarships and inquire about paid internships.

Take Advantage of Your Student ID

Did you know that your student ID could help you get up to 10 percent off at retailers such as Levis, Apple, and other retailers? Think about how much you can save because of discounted prices. Keep in mind that some businesses may not promote student discounts, but all you have to do is ask!

Get a Summer Job or Start an Online Business

You could get a summer job or ask your parents to help you start an online business. For example, if you like to bake cupcakes and other sweet treats, you could open an online bakery business. Ask your friends and siblings to help you with making deliveries. Or maybe you could be a camp counselor or tutor summer school students. Think about what you love to do, a hobby perhaps, and get help turning it into a business.

How Much Should a Teenager Save?

You may ask yourself, “What should I save up for as a teenager?” If you want a big-ticket item such as an iPhone or something else, you’ll need to cover the initial cost and any other expenses. Only you know if something is worth it or not.

Being a smart money manager means that you can delay instant gratification so that you can build your savings. It may not be easy, but when your bank account grows and grows, you may have enough funds to pay for something really special and still have money left over.

Discipline in kids, money management, teaching teens

6 Expert Ways to Make Your Kids Financially Successful for Life

Posted on April 9, 2021 by Tim Connolly

Many think of teenagers being fiscally irresponsible. Everyone wants to focus on the money management for children, but somehow, a lot of them never get there. It makes letting them go that much more difficult. You don’t have to push your child to be an entrepreneur just so they will understand how to manage money. Actually there are some simple ways to accomplish this task even if you struggle with money yourself.

Recently I discussed this topic with Asheesh Advani, CEO of Junior Achievement (JA) Worldwide, a massive global organization that educates more than 10 million young people per year. I had long thought JA was primarily focused on teaching kids about entrepreneurship. In actuality, JA has three major pillars of how they help children become productive and resilient in society. Aside from entrepreneurship, they teach career readiness and most importantly financial literacy.

Advani, a member of the Young Presidents’ Organization (YPO), has extensive financial experience having built two financial services companies from startup to acquisition. The first was sold to Richard Branson as part of the Virgin Money group and the second was sold to Interactive Brokers, one of the largest brokerage companies in the world.

Now, heading up the rapidly growing global organization at JA Worldwide and teaching young people fiscal responsibility in more than 100 countries, he has seen what works best. Here are his insights for getting your kids on the road to financial freedom.

1. Get them started early.

Most parents wait to involve their kids with money because they don’t see the necessity. Starting at a young age removes ignorance and reduces risk of bad habits. Advani points out they can see the value of compound interest while still young. “For saving, take a trip to the local bank and open an account when your kids turn 10,” advises Advani. “There’s nothing like receiving an interest payment (even if it is a few cents) in your name for the first time!”

2. Let them make mistakes with their money.

While no one wants to see anyone waste money, children benefit from learning the consequences poor financial decisions. “For spending, let your kid make some mistakes by spending too much on a toy, concert ticket, or mobile app they could have got for less,” says Advani. “Lessons come quickly when regret kicks in. Low-risk mistakes make for great conversation and learning that can save more costly mistakes down the line.”

3. Demonstrate how money equals work, work equals money.

A lot of parents give their children seemingly everything, but then the children don’t associate value to material items. Advani advises that parents need to make the connection of work with reward. “The best way for kids to realize this is to earn money for chores and for self-initiated projects,” adds Advani. “Create opportunities for small projects to earn money. If everything is provided freely, nothing will be valued.”

4. Make sure they appreciate what they have.

Not everyone has enough money, and some may never have more than enough to barely get by. Children who are insolated from poverty are less inclined to value the privileges they have. “Teaching empathy goes hand in hand with teaching financial literacy,” asserts Advani. “Ensure your kids appreciate the plight of others so they can appreciate the value of money.”

5. Have them share their wealth with others.

The value of money lies not only in your own reward, but also enabling what you can do for others. Advani says charity helps get children thinking about how they can use their money for good. But simply donating means little if the children can’t see how the money helps. “For giving, set aside 10% and make it real,” says Advani. “Take your kids to meet the recipients of their charitable gift, whether it is a small soup kitchen or a large non-profit with local presence. Even if they give a small amount of money, seeing its impact will drive the point home.”

6. Set the best example you can.

Children are sponges when it comes to learning–they soak everything in, including what they observe from their own parents’ behaviors. So if they see you frequently blowing money at the mall or burning through your savings account, don’t be surprised to see them get involved with similar habits as they get older. “If your kids see you waste money or treat savings frivolously, they will pick up your habits,” notes Advani.

Discipline in kids, Financial freedom, money management, teaching teens

Should You Give Your Child A Credit Card?

Posted on April 5, 2021 by Tim Connolly

Getting a Credit Card for a Child - Experian — Should You Give Your Child A Credit Card?

We seem to be moving closer to being a cashless society, meaning more kids are being exposed to digital wallets, money apps and yes, credit cards. While digital wallets and apps can be great learning tools for older kids who understand money – credit cards can be dangerous (at any age).

As a financial planner who sees so many buried under massive debt, I typically discourage the use of credit cards (at any age). According to the Federal Reserve, total credit card debt is its highest point, surpassing $1 trillion. Data from CreditDonkey.com states the average individual credit card debt stands at $5,331 in 2019. Additionally, on a monthly basis most Americans don’t pay their credit card balance in full every month, leading to interest fees.

Normally I say something like, these numbers aren’t meant to scare you…but these are! Taking on a credit card shouldn’t be taken lightly by anyone, especially when it comes to your child.

Credit card debt is easy to grow, and with the average credit card interest rate on new offers at 19.24%, it can be difficult to pay off.

However, credit cards can provide some valuable benefits to the older kids if done in the right way. If your teenager uses it responsibly, having a credit card can establish and build credit and can be a great tool to practice money management.

Should You Give Your Child A Credit Card?

On the other hand, if they overspend and/or don’t pay on time, both you and your child can get into trouble. If you are a parent and considering giving your child a credit card, there are some limits already set up for your child’s protection. Below are two scenarios where a child could get a credit card, and how to do it responsibly.

If your child is not over the age of 18, they aren’t considered a legal adult and cannot get a credit card in their own name. If this is the case you could make your child an authorized user on one of your credit cards. This means they could use the card and it would show up on their credit report, but your child wouldn’t have any legal responsibility for the account.

This allows your child to begin building credit and practice using a credit card without the consequences. As a parent, if you go this route be sure to set boundaries up front as to when your child can use the credit card. This may be a card only to be used for emergencies, or maybe it’s for gas, school supplies and food.

Whatever the parameters, be sure to monitor the spending – one way is to set up alerts if your child goes over a specified amount. Some cards also let you set up credit limits for the authorized user, which will prevent costly mistakes.

Young adults who are over 18 but under 21 can get a card in their own name, but they either must 1) make sufficient income to pay back borrowed funds or 2) have a cosigner. If you cosign, your child will get a card in their own name and will be legally responsible for any debt associated with the account.

Keep in mind, as a cosigner you will also be responsible for that debt. If you cosign for a card, be sure the credit limit is something you are comfortable with – the lower the better initially. Once they’ve demonstrated they can use it responsibly, it can be increased.

Helping your child have a credit card can be a jumpstart towards the financial education for kids, how to manage money and building credit. But like everything else in life, there has to be limits and it needs to be done responsibly.

Make sure your child understands the potential dangers of credit card use upfront; explain to them that you are giving them a card because you want them to learn how to use it responsibly as an adult, meaning never carrying a balance and always paying on time.

Financial freedom, money management, Parenting, teaching teens

4 WAYS TO HELP YOUR TEENAGED CHILDREN TO MANAGE MONEY

Posted on April 5, 2021 by Tim Connolly

How to Manage Your Money: 19 Tips to Do it Right — 4 WAYS TO HELP YOUR TEENAGED CHILDREN TO MANAGE MONEY

Shaping a child’s financial behavior and attitude towards money depends on their parents. Most teenagers look up to their mom and dad as an example when it comes to managing finances. Hence, as a parent, it is important to set great standards and teach money management to children. We would like to share a few tips as they might be of help:-

Share responsibilities

Share your responsibilities with your child. You can assign at least 1 household chore to your child, for example, she/he could be required to bring milk and eggs every day for everyone. If you link small monetary incentives with it, teenagers will understand the value of earning their pocket money as against just demanding it.

If there could be a nice user interface like a mobile app that can show them what they have earned and how well they have managed their expenses, it would give teenagers some of the finest lessons in money management.

5 Tips to Managing Your Money During the COVID-19 Pandemic — Drucker Wealth Management

Create a budget

Assign a monthly budget to your child to help them to manage their finances for that month. For example, if you set a budget for your child to manage travel and project expenses within a budget of some dollars every month, it would get them to think, plan and save as well as learn the art of money management. Using the Create Budget feature, you can accomplish this for your children in 5 minutes.

Empower with guide rails

Give your child a monthly allowance all at once. But what if she/he spends the entire money in a day or in one transaction? It is here that you can leverage technology to empower with guiderails.

You can start giving the monthly pocket money and set limits per transaction, per day etc. This will ensure that your child doesn’t spend excess money in a day while also having the freedom to take their money decisions independently.

How To Manage Your Money Like A Freelancing Pro | Bit Rebels

teaching teens

Teaching Children To Understand Money, Credit And Interest

Posted on January 18, 2021January 22, 2021 by Tim Connolly

Use Coin-Based Games to Teach Money and Math Skills — Teaching Children To Understand Money, Credit And Interest

It is never too early to learn how to spend and save money wisely!

Before you know it, children will be hopping back on the school bus and once again be engaged in the day to day activities of school. One subject that is not often addressed in school’s curriculums is the basics of personal finances. Investing time into teaching kids about money management, savings and credit scores will serve to benefit their future financial well-being. There is still some time before they head back to school, making August the perfect time to begin instilling these life lessons!

Younger children

For young children, it can be helpful to start off by giving them “jobs” that earn an allowance. A child’s job can be a household chore, a learning activity, or just being a member of the family. Showing your children that money is earned will help them understand the value of a dollar and an allowance will give them independence to make decisions about how they spend or save their money. Paying them an allowance opens the way for conversations about difference between needs and wants, as well as the benefits of saving and growing their money.

Older Children

As your children get older, have them get involved in the family budget and let them have an input in it. Consider having them take financial responsibility for the things they want, such as entertainment funds or articles of clothing. Teach your children how credit and interest work, and how using credit can be very expensive. Educate your children on credit scores and the significance of having a good credit score.

teaching teens

How to Teach Your Children About Money

Posted on January 18, 2021January 19, 2021 by Tim Connolly

6 Tips for Getting Your Kids Involved in the Family Budget This Year — How to Teach Your Children About Money

A few tips about teaching your kids about money:

Start Early – the sooner kids understand that there isn’t an unlimited source of money coming from an ATM, the better
Involve them in budgeting – don’t be so secretive about your household budget. It shouldn’t be mysterious to them. Have them learn from your mistakes and from your smart choices… from your EXAMPLE!

Here are a few basics principals that every parent should talk to their children about in respect to money.

Where does money come from?

In order for children to understand the value of money, they must first recognize where it comes from. Many might believe that money grows on trees or that it is magically produced from your wallet. My favorite one is that it somehow appears after punching a few buttons on the ATM.

Children can have so many ideas about money so it is parents job to clear it up for them. Providing financial education to kids on how money is earned will not only help them understand the worth of money but also help them better appreciate it.

What is the use money?

Another important step in teaching the children about money is talking to them about how it is used. Don’t be afraid to help them understand all the different things that money is used on…

The home
The car
The clothes
The shoes
The food and dishes on the table
The books
The toys
The television
The water and electricity
The internet

…and the list could go on. Everything costs money! However, keep it positive when reviewing spending… you don’t want to ingrain a “scarcity mindset” in your child. It will carry with them through their adult life.

Why is it important to save?

It can be difficult for a young child to understand the importance of saving. parents can help them by explaining the different reasons why they save. Here are some examples of reasons why to save:

Unforeseen circumstances
Future purchases of wants or needs
College; and
Vacations

Using visuals is a helpful way to teach money management for kids. If your child has a specific item they are hoping to purchase, help them come up with a plan. It may be helpful to create a mini budget or chart so that they can visually see where they are at and how long it will take to reach their savings goal.

Another great practice is helping them create long and short-term goals. And don’t over-estimate the power of a piggy bank! Buy your child a little piggy bank and let them save up all the change they can scrounge together! Change can add up REAL FAST!

Discipline in kids, Financial freedom, teaching teens

Financial Literacy: tips for college freshmen

Posted on December 24, 2020 by Tim Connolly

Financial Literacy 101: tips for college freshmen — Financial Literacy: tips for college freshmen

For most college freshmen, they’re all the experiences you might expect beginning your first semester. With all that (and more) on your collegiate plate, it’s easy to forget that it’s also the time to start getting serious about your finances. Living on campus, away from home for the first time, being financially responsible can seem as foreign a concept as anything in the classes you’re taking. And unfortunately, most colleges don’t have a 101 class in financial literacy.

Anything from racking up a large credit card bill to borrowing too much in student loans are mistakes that can cause some major college freshman stress (and make you go broke).

Precisely the following teachings are intended to provide parents with guidelines to Teach Teens About Money, which will undoubtedly be at stake for the rest of their lives.

1. Talk with your parents

Now that you’re off to college and totally independent, asking your parents for advice may be the last thing you want to do. But don’t be afraid to ask mom or dad about any of these subjects yourself if you’re motivated to learn about personal finance. Try to arrange some time with them to chat about how to start saving money, learning about interest (earning it and owing it), and most of all, the basics of your student loans.

2. Budget, budget, budget

Keeping a monthly budget of what you earn and what you spend can help make you aware of where your money is going, since losing track of it can quickly leave you with no money left. A budget doesn’t have to be anything detailed or super involved. If you have a part-time job, list what you earn each week, and then budget for how much you’ll allow yourself to spend in a month. (Use an app!) Give yourself some allowance money for going to the movies or eating out with friends; with your budget, you’ll be able to work with those dollar amounts and experiment with cutting back on spending. Always budget for necessary items, like toiletries, school supplies or other items that arise by need. The best advice I can give you: Stick with your budget.

3. Apps are your best friends

If you know that a budget on paper is sure to get lost in the shuffle of class notes, take advantage of budgeting apps on your smartphone to manage and save your money. Our favorite is You Need A Budget (YNAB), since it automatically connects your bank accounts together to give you a full, rounded picture of your spending. Other apps like Mint, Level, BUDGT, and others make budgeting fun, organized and easy to understand if a spreadsheet is too unapproachable, intimidating or just feels like something you’d do in class.

4. Start building your credit

One way not to use a credit card is to go to the mall and buy everything in sight, thinking that it’s “free money.” Since college is the first step to becoming a finance-conscious adult, take this time to learn about credit, not just credit cards. If you have no credit, it’s time to start establishing it. Try applying for a secured or student credit card. If you’re approved, you’ll need to make a cash deposit; this becomes your credit limit that you can borrow against. Keep your spending limit low – use it only for your Netflix subscription, cell phone bill or eating out once a week. Pay your monthly balance on the due date, in full (never partial), and over time, you’ll start building positive creditworthiness that will help you buy a car or house after graduation.

5. Buy used books

With the average cost of college books at about $1,200, we’d encourage you to buy used whenever possible. Remember that other students are thinking the same thing, so buy your books as early as possible before used copies get sold out. You can even email your professors before the start of the semester to get names of the required texts. Amazon and Textbooks.com are also two resources to buy and sell used books. In my college days, I’d always ask my professors if I could purchase an older edition of the class text to save money. Updates to new editions are often so minor that they don’t justify the full cost charge by textbook publishers.

6. Beware of ID theft

Over 13.1 million people were victims of identity theft last year, and college students are no exception. On a college campus, you could have your personal information stolen anywhere from the dining hall to the library to your own dorm room, on your laptop. Don’t let friends or roommates borrow your credit card; in fact, never carry your cards to and from class unless you’re certain you’ll be buying something along the way.

Protect your logins with strong passwords nobody will guess, and change them often. (The same goes for tablets and smartphones.) When using public WiFi, always log in to a secured network to protect your activity from ID thieves and scammers. And remember to completely log out when using a school lab computer – it’s likely that your Facebook status won’t be the only thing at risk if you don’t.

7. Remember your student loans

One of the most financially literate things you can do in college is to stay mindful of your student loans from day one. Find out what kinds of loans you have, and how much you or your parents have borrowed. Are they federal or private? Subsidized or unsubsidized? What are your interest rates?

You might even consider starting to pay them off early before they’re due, even if it’s just the interest. There’s no rule when you can start, so if you’re an ambitious freshman, even a few dollars here and there counts. If you have questions, don’t hesitate to meet up with your student advisor or make a visit to the financial aid office on campus.

8. Take advantage of student discounts

When it comes to financial literacy, college is the one time where being a student gives you countless chances to get discounts and save money where other adults need to pay full price. Diners, restaurants, movie theaters, cafes, concert venues and other places often offer discounts when you bring a valid student ID.

Keep your grades up and you may qualify for discounts on everything from insurance rates to airfare. Don’t ignore the perks and pluses on campus that come with being a student. Picking the right meal plan, for instance, can help save money if you live on campus. And if you’re a resident student who doesn’t commute, consider leaving your car at home to save money on gas, maintenance and insurance.

9. Save smartly

If you do nothing else with your money this semester (or the next four years), remember to save money. Like studying, you’ll want to save smarter, not harder. It’s already difficult enough to make ends meet as a poor college student, so how can you come up with enough to save?

Use the power of interest to build on your deposits – open up a bank account that rewards dividends, like a certificate of deposit (CD) or high-yield savings account with a higher interest rate. If you’re working on campus or off, you might also have a portion of your pay automatically deposited into your savings, reducing the temptation to spend it.

Going to college, picking a major and getting your degree aren’t the only things you’ll need to prepare you for adulthood once you graduate. By putting some of these financial tips into practice, you’ll be ready for when it comes time to pay off your student loans, buy a house, budget for a family and other big financial responsibilities on the horizon.

Kids, money management, teaching teens

Are You Teaching Financial Literacy To High School Students?

Posted on December 8, 2020 by Tim Connolly

https://www.militaryonesource.mil/wp-content/uploads/2017/04/Teaching-Money-Management-1.jpg — Are You Teaching Financial Literacy To High School Students?

The teaching curriculum consists of lesson plans & worksheets designed to augment a semester course in life skills and personal finance management. The Teacher’s Guide, compiled in a separate, easy-to-use notebook, includes an outline of the curriculum:

Goals
Lesson objectives
Suggested resources
Teaching notes

Lesson One: Making Personal Finance Decisions

Each day, we are faced with many decisions. While most decisions are simple, such as “what should I wear?” or “what should I eat?,” others are more complex, such as “should I buy a new or used car?” As decision-making skills are used and improved, a person’s quality of life is enhanced. Wiser choices result in better use of time, money, and other resources. This introductory lesson provides students with an opportunity to learn more about decision-making. The lesson starts with an overview of the decision-making process followed by a discussion of various internal and external factors that affect decisions.

Lesson Two: Making Money

Building your career is one of the surest ways to increase income and make money. When planning for the future, one of the most critical financial decisions is determining your career path. In this lesson, students will be encouraged to consider various topics related to career planning and the financial aspects of employment. This variation of the decision-making process can help a person match personal abilities and interests with appropriate employment opportunities.

Lesson Three: The Art of Budgeting

Experts say that paying a small amount, however infrequently, can help in providing financial education to kids. A personal budget is a financial plan that allocates future income toward expenses, savings, and debt repayment. “Where does the money go?” is a common dilemma faced by many individuals and households when it comes to budgeting and money management. Effective money management starts with a goal and a step-by-step plan for saving and spending. Financial goals should be realistic, be specific, have a timeframe, and imply an action to be taken. This lesson will encourage students to take the time and effort to develop their own personal financial goals and budget.

Lesson Four: Living on Your Own

As young people grow up, a common goal is to live on their own. However, the challenges of independent living are often quite different from their expectations. This lesson provides a reality check for students as they investigate the costs associated with moving, obtaining furniture and appliances, and renting an apartment.