Posted in Kids

10 Tips to Teach Your Child to Save Money

Posted on by Tim Connolly

Every year, one day in April is designated as “Teach Your Children to Save Day,” a day that is all about enlisting parents to help their kids become smart about money from an early age. According to a 2019 National Foundation for Credit Counseling survey, just 55% of adults give themselves an A or B when grading their knowledge of personal finance, making the financial literacy of the next generation even more urgent.

Saving money is a habit that can take time to build, and even some adults have yet to master it. Consider this: Almost three in ten Americans, or 28%, have no savings set aside to cover emergency expenses, according to Bankrate. With that in mind, here are some things you can do to get your kids—and perhaps yourself—on the saving bandwagon.

1. Discuss Wants vs. Needs

The first step in teaching kids the value of saving is to help them distinguish between wants and needs. Explain that needs include the basics, such as food, shelter, and clothing, and wants are all the extras. You can use your own budget as an example to illustrate how wants should take a back seat to needs in terms of spending. 

2. Let Them Earn Their Own Money

Sixty-eight percent of parents said they paid their children an allowance in 2016, with kids earning $26.58 per week on average, based on six hours of chores. If you want your children to become savers, allowing them to earn and save money provides them with the opportunity to learn how to use it. When you offer allowances in exchange for chores, they’re also learning the value of their hard work.

3. Set Savings Goals

To a kid, being told to save—without explaining why—may seem pointless. Helping children define a savings goal can be a better way to get them motivated. If they know what it is they want to save for, help them break down their goals into manageable bites. For example, if they want to buy a $50 video game and they get a $10 allowance each week, help them figure out how long it will take to reach that goal, based on their savings rate. 

4. Provide a Place to Save

Once your children have a savings goal in mind, they’ll need a place to stash their cash. For younger kids, this may be a piggy bank, but if they’re a little older, you may want to set them up with their own checking or savings account at a bank. That way, they can see how their savings are adding up and how much progress they’re making toward their goal.

5. Have Them Track Spending

Part of being a better saver means knowing where your money is going. If your children get an allowance, having them write down their purchases each day and add them up at the end of the week can be an eye-opening experience. Encourage them to think about how they’re spending and how much faster they could reach their savings goal if they were to change their spending patterns.

6. Offer Savings Incentives

One of the reasons people save in their employer’s retirement plan is the company matching contribution. After all, who doesn’t like free money? If you’re having trouble motivating your kids to save, you can use that same principle to ramp up their efforts. For example, if your child has set a big savings goal, say a $400 tablet, you could offer to match a percentage of what has been saved. Alternately, you could offer a reward when your kid reaches a savings milestone, such as a $50 bonus for hitting the halfway mark.

7. Leave Room for Mistakes

Part of putting kids in control of their own money is letting them learn from their errors. It’s tempting to step in and steer kids away from a potentially costly mistake, but it may be better to use that mistake as a teachable moment. In that way, they’ll know in the future what not to do with their cash.

8. Act as Their Creditor

One of the basic tenets of saving is to not live beyond your means. If your child has something he or she wants to buy and is being impatient about saving for it, becoming your kid’s creditor can help to teach the value of saving. For instance, if your child wants to purchase something that costs $100, you could “lend” the money and require payment from the allowance you provide, with interest. The lesson you want to teach is that saving may mean delaying gratification longer, but the thing you want to buy won’t end up costing more you if you wait.

9. Talk About Money

In a 2019 T. Rowe Price Study, 44% of parents said they’d never talked to their children about the value of long-term investing. Only 41% ever discussed market volatility. If you want kids to learn about saving, it must be an ongoing discussion. Whether you schedule a regular weekly check-in to talk about money or make money chats part of your daily round, the key is to keep the conversation going. 

10. Set a Good Example

In the same T. Rowe Price survey mentioned above, 10% of parents said they had zero savings for retirement, emergencies, college, or other financial goals. If you want your children to become savers, being one yourself can help. Getting your emergency fund in shape, opening a 529 savings account, or simply increasing your 401(k) plan contributions are all steps that you can take to encourage saving as a family activity. You could also decide to save for something together, such as a family vacation or a pool.

The Bottom Line

Teaching kids about money is very important. There are lessons to be learned, for parents and kids alike, all year long. If you’re a parent, making saving a regular part of your child’s routine can lay the foundation for a bright financial future. The tips outlined here are a good place to start. 

Posted in Financial freedom, Uncategorized

Financial Literacy for Kids

Posted on by Tim Connolly

Financial Literacy for Pre-school, Pre-K, Kindergarten, First and Second Grade

The following lessons provide guidance, lesson plans and activities for teachers interested in introducing four to seven year old children (pre-school, pre-k, first and second grade) to early financial literacy concepts.

Lesson One: Making Spending Decisions

From birth, a child has choices. At first parents make the decisions, but before the end of the first year, children are capable of making some simple selections. If children are allowed to make easy choices as toddlers, then making decisions for themselves as they grow becomes less difficult. This lesson introduces guided, money-related, decision-making activities for children in preschool and kindergarten.

Lesson Two: Spending Plans

Preschool-aged children are capable of learning simple spending plans. Early training in categorizing money establishes patterns for future money-management behavior.  This lesson introduces children to the concept of dividing their money into categories, namely “save,” “spend,” and “share.” We present activities that will help children understand that money is limited in quantity and must be divided for different purposes.

Lesson Three: Earning Money

Adults must earn money to provide for their needs and wants. In this lesson children learn that money is earned and does not come free. Children also learn that money is limited in quantity.  Early training in earning small amounts of money provides a foundation and understanding that work and money are connected.

Young children perform certain tasks at home just because they are part of the family or household. Children can do additional tasks to earn money for their spending plans. Children need to distinguish between shared responsibilities as members of a family and responsibilities that earn them money.  This lesson introduces young children to activities and ideas for earning money. The money earned helps children meet their financial goals. Remember that the financial goals for a preschool-aged child may seem simple to an adult, but they are not simple to the child. Children learn the concept that money is a reward for working.

Lesson Four: What is Money?

Money is the medium of exchange for most goods and services. Different coins and paper money have different values.  Children need the ability to recognize the names and values of different coins and bills used in exchange for goods and services. This lesson helps children identify the names of coins and grasp their relative values in terms of purchasing power. We present games and activities that will help children acquire this knowledge.

Financial Literacy for Grades 3-6

The following lesson plans are designed for elementary school children in the following grades: third grade, fourth grade, fifth grade and sixth grade.

Lesson One: Allowances and Spending Plans

Children in grades three through six are capable of managing small amounts of money. They can divide their money into several categories, including “spend,” “save,” and “give.” At the same time, they can spend their money and keep a record of what was spent.  This lesson provides an introduction to allowances for third through sixth graders. Allowances are the first step to understanding written spending plans or budgets. With guidance managing allowances in childhood, children can become financially responsible adults. Adults with effective budget skills create healthier family relationships and contribute to building a stronger economy.

Lesson Two: Money Responsibility

Successful money management includes keeping records of money spent. This includes having the skills to know how much money is available, how much money has been spent, and how much money must be saved for future needs.  This lesson introduces elementary-aged children to the concept of being responsible for managing money through accurate record-keeping. It provides them with activities and worksheets that demonstrate the need to be accountable for how they spend and save money.

Lesson Three: Saving and Investing

Part of learning about money management includes knowing where to put savings. The value of savings increases differently depending on how the money is managed. Placing savings in something beyond a savings account introduces students to the world of investments.  When they become adults, these students will have control over where they invest their money for retirement. It is important that they understand how to get the best growth for their money. At the same time, they need to understand the chances of losing that money in investments.  This lesson introduces students to the basics of how money grows through saving and investing. It introduces the concepts of financial risk and rates of return.

Lesson Four: Comparison Shopping

This lesson introduces students to the concepts associated with comparison shopping and choosing the best option. The activities in this lesson will introduce students to the difference between needs versus wants. Students will also learn to scrutinize advertising to discover messages that may affect their decisions.

You can get all the knowledge about economics for kids and can easily teach kids about money and how to manage their money in future..

Posted in Parenting

Kick Off College Savings Before a Child Is Born

Posted on by Tim Connolly

BRIAN AND ELISA Keller’s unborn child doesn’t have a name yet – but does have a college savings account.

The Washington couple opened a GradSave account, which allows family and friends to donate money online to a college fund, because many people wanted to contribute to their child’s future.

Registry services such as GradSave allow parents to transfer money accumulated on the gifting site into a 529 plan account, a tax-advantaged college investment account, of their choosing.

The Kellers aren’t the only ones getting an early start. According to GradSave spokesman Eddie Pradel, it’s common for parents to open GradSave accounts before a child is born in anticipation of events such as baby showers.

Gift accounts, which can be for anyone, don’t require a name or social security number to open. In the account the Kellers opened, their son is “Little Man Keller,” and his photo is an ultrasound image.

But 529 plans are a bit more complicated. Opening a 529 plan account requires the social security number of the beneficiary, the person entitled to use the money in the account.

Parents who want to start saving for an unborn child’s college tuition typically tackle the social security number problem in one of two ways. “Some parents open a 529 plan before the baby is born in their own name and transfer the gifts there,” says Pradel. “After the baby is born and they receive a social security number, they then change the beneficiary of the 529 plan to the child.”

Colorado-based financial planner Mitch O’Hare started a 529 plan account for his daughter before she was born. He designated himself as both the account owner and beneficiary. Once his daughter had a social security number, he changed the beneficiary to her.

The other way parents handle the social security number problem is to leave gifts received from a baby shower or other event in a GradSave account until the baby is born, says the registry’s Pradel, and open a 529 plan in the baby’s name once the child has a social security number, then transfer the gifts. The Kellers have already selected the 529 plan they will open once the baby is born and has a social security number.

O’Hare encourages his clients to start saving for college before their children are born.

“Why not just start funding a 529 plan early?” he says. An earlier start means parents have more time for compound interest to accrue.

He predicts parents of children born today will need $150,000 for four years of education at a state school.

If parents are able to earn 8 percent annual interest on their investments, they could accumulate roughly $150,000 by contributing $310 per month for 18 years. If they wait 10 years to start saving for college, the monthly contribution would be have to be $1,100 to get close to that amount.

Parents saving $100 per month from the time the baby is born could save for nearly a third of their child’s cost of attendance.

Would-be parents who want to get a jump on college savings should be careful, however, about starting a 529 plan if they have yet to conceive. For varying reasons, sometimes plans to have children don’t work out. While the money in a 529 plan can be used for other family members such as nieces and nephews or for the parents themselves, there is a 10 percent tax penalty, plus income tax on earnings, if the money is later withdrawn for a noneducational purpose, he says.

For the Kellers, having an option to fund their child’s education before birth was about continuing a family legacy.

“Both of us received savings bonds growing up from family members that paid for our education,” Brian Keller says. “There’s only so many things we need for our nursery. Having a baby shower registry that includes college savings feels like the right thing to do for our son.”

Even in the busy-ness of the holidays, you are confidently teaching teens about money principles. It’s easier than you think! And trust us—they will thank you later.

Posted in Financial freedom

How to Have the College Finance Talk With Your Children

Posted on by Tim Connolly

“The talk.” Those two words could refer to any number of troubling things: relationship problems, work issues or a midday TV gabfest.

However, for parents sending kids to college, “the talk” refers to one thing: how to pay for it. Likely, the answer will be “with student loans.”

Also likely is that parents will oversee the process by filling out the Free Application for Federal Student Aid, known as the FAFSA, and loan paperwork themselves. If you haven’t helped your children understand what they’re borrowing, it’s getting late – but not too late. Here are four steps to start talking. 

This Student Loan Ranger has never had this talk with his children, because he won’t even have one until about a month from now. And while I secretly hope this whole “college cost” thing is figured out in 18 years, I worry you thought the same thing back in 1994. Let’s help both of us out by running through how to talk about loans.

1. Put it on the calendar: Before you get to the “fun” stuff, set your conversation up for success by carving out some official time for it. Don’t just grab your daughter for a random kitchen table sit-down.

Instead, tell her in advance that you’d like to talk about paying for school on “X” date. You can even let her choose a favorite restaurant or other location for the chat, so she feels engaged and comfortable. 

2. Know your number: Before your meeting, think about how much your family should borrow. Finding that number can be tough, but a good ceiling is the annual maximum for undergraduate federal student loans: $5,500 for first-year students, $6,500 for second-year students and $7,500 for years thereafter.

If that’s not enough to cover costs, Parent PLUS loans or private loans can help – but they can also lead to overborrowing. Be careful.

3. Put the cost in context: Borrowing is a big commitment. Unfortunately, students sometimes take it lightly because they don’t see loans as real.

Since the brain fears losing money, you have to make this on-paper total tangible. To do that, put the amount into the context of your child’s life.

Remind her of how long she had to scrimp for that new game console. Then, tell her how borrowing $25,000 is like saving up for that $400 console – 62 times.

Or, mock up a budget based on her anticipated salary. Include things like rent, utilities and estimated student loan payments. That will show her how much she’ll have for nonessentials – you know, like food – and get her thinking.

4. Set expectations: Many parents want to tell their child to go wherever he or she wants – and they’ll figure out the rest later. If figuring out the rest includes borrowing a Parent PLUS loan, think about your retirement plans, other children yet to go to college or whether you anticipate caring for your parents before you borrow.

After all, the borrower – you – is responsible for this debt. If you take out this loan thinking your child will repay part or all of it, outline your expectations and set up a repayment schedule.

You may even want to put this in writing. After all, what’s a friendly family chat without paperwork?

Talking about student loans isn’t easy. Just remember: You’re not doing this to turn the “dream” school into the “school that requires the least debt” – though that’s not a terrible dream. It’s to set your child up for success, not only during school but also after he or she graduates. Ultimately, how much educational debt to take on is a personal decision for each family. So, if you haven’t already talked about it with your son or daughter, you need to start today. Sorry, only I have 18 years left to prepare.

Want more great tips on how to teach kids about money? Just drop your comments in the comment section.

Posted in Parenting

Balance Obesity Worries With a Holistic Health Focus

Posted on by Tim Connolly

Fixating on weight or encouraging kids to be overly circumspect about food can put kids at risk.

According to the Centers for Disease Control and Prevention, 1 in 5 children are affected by obesity and are at risk for health problems, including diabetes, heart disease, fatty liver and orthopedic issues. At the same time, the National Eating Disorders Association warns that eating disorders are on the rise, particularly in children under 12 and in boys.

As a pediatric nutritionist, I understand the risks associated with obesity treatment and eating disorders. Parents must take a balanced approach that focuses on children’s overall health, rather than simply a number on a scale.

Recently, WW (formerly Weight Watchers) launched Kurbo, a diet app for kids aged 8 to 17, which allows them to track food intake, exercise minutes and goals for weight loss. Although WW says the app focuses on health overall, while also being an effective tool for weight loss, targeting a child or teen who is developing both physically and emotionally is off the mark, increasing the risk for disordered eating and a dysfunctional relationship with food and one’s own body.

Parents who are concerned about their child must be careful around the topic of weight. Instead, self-reflect and look at the big picture: Is this a normal growth transition? Is my home environment and family lifestyle supportive of my child’s health? In my professional experience, these are the fundamental contributors to a child’s health and areas where families can improve.

Parents Are the Nutritional Gatekeepers

Parents choose and prepare food in the home. They set the schedule and rules for eating. And, they set expectations for eating outside of the home.

Over time, they can help mold healthy habits, such as regular physical activity and sleep patterns. They are also responsible for modeling attitudes about foods, eating and body image.

Childhood Development Is a Delicate Process

Throughout childhood, kids are physically changing while developing their relationship with food and their bodies. Often, in preparation for a growth spurt, preteens gain weight, especially around the midsection; and girls in particular can expect some weight gain specific to certain areas of the body, such as hips, thighs and breasts, that’s related to normal development. Meanwhile, kids are developing the emotional blueprint of their self-esteem and body image.

“The body is changing rapidly and we want to reassure females during this time that this is a normal part of growth,” says Angela Lemond, a registered dietitian nutritionist and co-founder of Lemond Nutrition in Texas. “Girls already feel self-conscious.” The best approach is to be reassuring, let your child know that weight changes are normal and talk about what a healthy lifestyle entails, she says.

Experts agree that heavy children are at higher risk for fat shaming and bullying, which may increase the risk for unhealthy dieting and eating disorders. Placing any child on a weight loss diet, no matter their size or shape, has the potential to cause havoc during this sensitive, developmental time.

“The ‘pressure to be thin’ is one of the greatest risk factors for the development of an eating disorder, and studies show that body dissatisfaction can start as early as age 6,” says Wendy Sterling, a registered dietitian and co-author of “How to Nourish Your Child Through an Eating Disorder.”

“Putting kids on diets teaches them that something is wrong with their body as is,” Sterling says. “This challenges their self-worth, interferes with the development of self-esteem, creates confusing and chaotic messages about how to fuel a growing body, and makes children more susceptible (to) the development of an eating disorder.”

It’s Not About Form, It’s About Function

Child obesity is determined by a set of numbers and a calculation called the body mass index, or BMI. It’s not a perfect number and doesn’t show the range of factors that speak to a child’s overall health. For example, if a teen is a muscular athlete, based on their BMI, they may be classified as overweight, even though the teen is very fit. Alternatively, a child may be a picky eater and deficient in nutrients, even though the child’s BMI indicates his or her weight is “normal.”

While BMI can point to potential health concerns, it is more realistic to look at a child’s growth over time. More importantly, we need to appreciate that a child can be heavy (or bigger) and healthy. And, a child can be thin, or normal weight, and unhealthy.

Do Weight Loss Programs for Kids Actually Work?

There’s scant research that indicates weight loss diets in children are effective. There is little evidence that tracking what foods one eats has any impact in terms of changing long term dietary behaviors, says Leslie Mattimore, a registered dietitian with Boston Children’s Optimal Wellness for Life program.

Many nutrition professionals avoid the weight loss diet approach, myself included. Instead, the whole family is encouraged to focus on health behaviors. “Regardless of size, shape, gender or age, all family members should be following a lifestyle that promotes health,” Lemond says. “We like to tell the child and parents that the entire family should be living the same way, and we often make the same goals for each family member.”

Mattimore agrees. “It’s about more than just the food,” she says. When interventions are focused only on the child, that can result in kids developing unhealthy relationships with food. “While interventions that involve the whole family can help everyone develop healthy lifelong habits, regardless of their weight, Mattimore says.

For those children who experience severe complications due to weight, the research also supports a focus on lifestyle changes. Even without weight loss, lifestyle changes such as routine physical activity may help with managing associated conditions like high blood pressure or diabetes, according to a review of treatment options for severe obesity in children and teens published last year in the journal Obesity.

Unhealthy Habits Begin Early

When parents aren’t informed about nutrition, feeding, healthy habits, and teaching kids about money the whole family can get off track. For instance, when young children are offered sweets too early, they may develop a strong preference for those types of foods or flavors. Or, if they are encouraged to eat more food or finish their meal, they may learn to overeat rather than tune in to their appetite cues.

When the pudgy phase hits, parents may react by restricting access to indulgent foods. This may trigger kids to sneak food. Good parenting around food and establishing healthy habits throughout childhood are the keys to raising a healthy child.

Target the Parent, Not the Child

If we want to help kids, we need to help their parents first. In my experience, prevention and treatment look a lot alike, but the timing makes all the difference. When parents are educated early and often about nutrition, feeding and development, they have a better handle on what it takes to nourish and nurture a child, regardless of their shape or size.

From infant nutrition education delivered in birthing hospitals and parent-focused online education in the pediatrician’s office to delivering preventive education in the workplace, there are many opportunities to empower parents with the information they need to successfully raise healthy kids.

Parents are the change-makers, not the child, and certainly not an app.

Posted in Parenting

Self-Care for Teens: a Boon for Mental Health

Posted on by Tim Connolly

Teens are getting too little sleep, not enough exercise and spending far too much time online. Research tells us so (if you need proof), and it’s also clear that when teens don’t take care of themselves, it can affect their mental health.

That’s all the more reason parents should teach their kids about the fundamentals of good self-care. And that means getting back to the basics, such as eating well, getting plenty of sleep and exercising more. That may be easier said than done, as adults know. But if you want your teen to live a healthier life, it’s important to pay attention to these three pillars of health.

Here’s what you should know about the benefits of these forms of self-care for kids – and what happens if they’re ignored.

Establishing Healthy Eating Habits

Most have heard the saying, “You are what you eat” – and nothing could be more accurate when it comes to food and mental fitness. Food choice really does have an impact on how we feel and look. For example, it’s not uncommon to hear people say that when they eat better, they feel better. The food we put in our mouths is the fuel that we run on. And when we opt for premium nutrients, we simply run better.

The same is true for our teens. Yet, too many of our young people run on junk food. According to the Centers for Disease Control and Prevention, more than a third of our nation’s youth eat fast food daily.

Research indicates that fuel choice may be hurting their bodies and mental health. In one study published in Physiological Reports, researchers followed 84 middle school students. They monitored sodium and potassium excretion and depressive symptoms for a year and a half. The findings suggested that for adolescents, consuming foods that are high in sodium, a mineral frequently found at high levels in junk food, and those that are low in potassium was related to an increase in depressive symptoms. The researchers concluded that poor diet was, in fact, a risk factor for depression.

What we eat impacts how we think, feel and act. That’s why it’s essential to help your teen establish healthy eating habits. Many teens gravitate toward junk food because it’s convenient and fits into their busy lifestyles, but that doesn’t have to be the case. It’s just as easy to opt for an apple as it is for a bag of chips. There is just no way around it – a healthy body helps support a healthy mind.

Sleeping More

The National Sleep Foundation recommends that children ages 14 to 18 sleep eight to 10 hours a night, but the vast majority of youth aren’t even coming close to that recommendation. On average, most teens get about 7.5 hours of sleep a night. It comes as no surprise that sleep deprivation takes a toll on their mood.

As reported by the American College of Neuropsychopharmacology, researchers at the University of Pittsburgh found that when teens experience sleep loss, even for short periods, it increased their risk for mood disorders. In this particular study, 35 participants, aged 11 1/2 to 15 years, were monitored in a sleep lab for two nights, with half of them sleeping for 10 hours and the remaining sleeping for four hours.

A week later, they returned to the lab and switched sleep schedules from their initial visit. During their time at the lab, they underwent brain scans monitoring the reward center of their brain while playing a game and also completed emotional functioning and depressive symptoms assessments. The data indicated that sleep deprivation affected the putamen, an area of the brain that is responsible for goal-based movements and learning from rewards.

Consequently, there was a link between sleep deprivation and their reported depressive symptoms, too. Participants who did not get enough sleep reported feeling more depressed than their well-rested peers.

Overall, the results suggested that inadequate sleep during adolescence may affect how the brain processes reward and increase the likelihood of depression and risk-taking behavior. When teens were sleep-deprived, they didn’t make the best choices. According to this study, sleep not only helps kids feel better, it also helps them make better choices.

Make sure that your teen is getting enough sleep by limiting screen time before bed and establishing a good bedtime routine, particularly on school nights when they are more apt to sleep less. It’s also important for kids to keep their phones away from their beds at night. Just a few simple tweaks in their bedtime routine can make all the difference, because a well-rested teen is a happier and healthier teen.

Exercising More

The U.S. Department of Health and Human Services recommends that teens get at least an hour of moderate or vigorous physical activity each day. Still, according to a study in Preventive Medicine, young people are getting about as much exercise as a 60-year-old.

In Latin, there’s a saying: “mens sana in corpore sano.” When translated, it means: “a healthy mind in a healthy body.” And researchers have shown that a healthy body does indeed contribute to a healthy mind, especially when it comes to anxiety and depression.

A study published in the American Journal of Psychiatry reported that exercise could reduce the risk of developing depression. In this study, researchers monitored the physical activity of 266,939 participants from around the world for more than seven years. Their findings showed that when people were more active, their risk of developing depression decreased regardless of how old they were and where they lived.

These findings support a large body of literature that has linked physical activity with improved mood. In fact, there’s some evidence to suggest that exercise is as effective in treating depression as antidepressants. Now, that’s something to consider.

Establishing healthy habits begins early. It’s important to get our kids moving because an hour a day can go a long way toward promoting physical and mental well-being.

All things considered, it’s incredible how some of life’s most basic tasks, such as eating well, getting a good night’s sleep and exercising, can positively impact our children’s well-being. There’s just no way around it: A healthy body and a healthy mind really begin with the basics of self-care.

Even in the busyness of the holidays, you are confidently teaching teens about money principles. It’s easier than you think! And trust us—they will thank you later and it will also help your teens maintain a good mental health.

Posted in Financial freedom

Young Entrepreneurs Create Their Own Wealth

Posted on by Tim Connolly

Most teens looking for summer work head to the local mall or fast food joint. Even though these jobs give you a paycheck, why not find work that you are passionate about? You’re never too young to develop your talents and, in turn, make money from your skills. If flipping burgers or hanging up clothes is not for you, look for a way to make money doing something you love.

Take, for example, Teressa’s son. “My nine-year-old son purchased items at garage sales and then resold them on eBay. His best deal was a pair of Waterford Crystal toasting flutes that he bought for $15. He sold them on eBay for $70!”

Naomi’s neighbor is an innovative 10-year-old boy. “He comes to my house after school and reads books to my kids for $5 an hour. I use him on Tuesdays for one hour and, in turn, get all my laundry and emails done.”

Another young entrepreneur is Frances’ 18-year-old daughter who grew tired of her mall job. “Working retail wasn’t working out in this economy, so she used her talents and started teaching piano lessons. She’s making more money now than when she was working for someone. Now she’s in control of her schedule and whom she teaches—plus she enjoys it!”

Quyann’s 11-year-old son found his passion through the 4-H Fair. “He raises a pig and sells it at the fair. He made $600 in the past two years and keeps financial records. He shops for the best feed at the lowest price. The kid is a penny pincher, and I love it!”

Another great example is Marc’s 12-year-old daughter. “She has a kid’s birthday party planning business. She interviews the mom, then she organizes the activities like games, crafts, face painting, piñata smashing, cakes and gifts. She also makes cakes. Recently, she made 24 cupcakes to look like Van Gogh’s Starry Night.”

Being a young entrepreneur doesn’t mean you have to think of a new idea to make money. It just means you need to find a way to make money doing something you love. You have to think out of the box a little. Here are some tips to help you brainstorm ways to become a young entrepreneur.

  • Find something you enjoy and figure out a way to make money from it.
  • Become good at what you are trying to do. Practice makes perfect!
  • Have a plan for your business. Do a budget and start a savings account.
  • Get the word out! Word of mouth is the best way to advertise.
  • Work hard and don’t forget to tithe or give away some of your profits.
  • Have fun! You’re doing something you love, so enjoy it!

There are thousands of ways to make money doing something you love. Get creative and work hard. Before you know it, you’ll find yourself becoming an entrepreneur, too!

To help you with the financial challenges of parenting, In addition to saving, you can learn more about how to teach kids about money, teaching your kids to work hard, spend wisely, and give generously—all with a spirit of contentment that will transform their lives.

Posted in Financial freedom

Life After College: 3 Ways to Make It Awesome for Your Kids Now

Posted on by Tim Connolly

“Best years of my life!”

That’s a common phrase college students hear from older adults. After all, thinking back to your college years is pretty nostalgic. Those late nights studying with friends, the year your team dominated all other opponents in the flag football tournament, the first time you saw your spouse standing in the cafeteria line … Ah, college.

Of course, the phrase could also be summed up like this: You might as well enjoy college because life goes downhill from there. That, unfortunately, is the problem too many people are experiencing.

Teens approach the college decision-making process with a best-years-of-my-life mindset. So they look for a party school, or a school in a vibrant city, or a school with the most prestigious reputation, or whatever particular will satisfy their craving for fun … and off they go.

It’s true—most teens do enjoy themselves during college and graduation does mark a downhill trajectory. That’s because, just six months later, student loan repayment begins. If you’ve been there, it really can feel like the best years are over.

As a parent, you can help in teaching teens about money. With FAFSA deadlines approaching and spring campus tours scheduled, now is the perfect time to start. Read on for tips to ensure that your teen’s time in college is merely the beginning of the best years of their life.

Education is important. Where a student goes to school is not.

While some colleges and universities are better than others, alma mater does not determine success. A lazy student attending an expensive school is not guaranteed a job, and a driven student who graduates from a decent, affordable school is not doomed to a life of settling.

In fact, over the past 30 years studies show an upward trend of CEOs graduating from public colleges and universities instead of private institutions and Ivy League schools. Your teen can go after their dreams and conquer the world, even if they spend two years at a community college and finish up at a local state university. A $30,000 loan isn’t a necessity—only pay for what you can afford.

You don’t make big purchases without tons of research. College is a really big purchase.

Think back to the last time you bought a car. You started by deciding what size vehicle best fit your needs—a truck for hauling furniture, a van for toting kids, a wagon for loading groceries. Then, you considered different makes and models and compared your options side by side.

You made your final decision based on lots of details: cost, gas mileage, power, features, drivability and color. Some factors weighed more heavily than others, sure, but each factor held sway. Why, then, don’t we apply the same decision-making process to college? As you know, college is expensive—the four years your teen spends in school will cost more than your car. It’s not a decision that should be taken lightly.

Your teen can go to college debt free. We can show you how.

The easiest way to open up the world to your teen is to help them avoid debt completely. Student loans are not good debt, and they account for $1 trillion worth of debt floating around our country today. That’s more than all credit card debt combined!

Custom is the key word. Spend 20 minutes on the phone with an advisor, and within 3–5 business days, your personalized book is mailed to you. This 52-page guide includes timelines and checklists to get you started as well as tons of original ideas from our team on how to increase your funding options.

Best of all, you’ll see important information regarding your teen’s top six college choices in a side-by-side comparison. We do the research ahead of time, which saves you hours of online searching and paperwork. This guide is your coach to picking the best college for your teen.

You’re the parent—go ahead and act on that authority. Begin talking with your teens today about a debt-free plan for college. We promise, just like they’re glad you taught them to brush their teeth and to share with friends, they’ll thank you later. College should be the beginning of the best years of their life.

Posted in Financial freedom

The Art of Raising a Money Superstar

Posted on by Tim Connolly

One thing parents know for certain, they don’t want their kids to make the same mistakes they did. That’s especially true for money mistakes.

Most of our money mistakes are due to lack of education. Did your parents take time to teach you about how money works? Even if they did, you’ve probably discovered some holes they glazed over and thought in disbelief, How did they forget to teach me that? You can stop that cycle by teaching your kids—no matter what age—how to handle money with success. Here are a few tips:

Embrace the Process

When you start out teaching kids about money, understand that it will be a process. In your early lessons, you’ll teach your youngster the value of working and saving by paying him for small jobs, like cleaning up his toys. Congratulate him with lots of high-fives and pay him immediately. Keep it visual by wadding up a dollar bill and putting it in a clear container. That way, he’ll see how his money adds up as he’s paid for doing his jobs.

When your child is old enough for chores, around five or six, start paying commission—not allowance. If he does the work, he gets paid. It’s a great way to teach personal responsibility. At this point, help him learn basic budgeting skills by dividing his money into saving, spending and giving categories.

Open a checking account for your teen and teach him how to balance his checkbook. If he’s earning money at a part-time job, encourage him to continue budgeting to spend, save and give.

As he moves into college, find a balance where you are there to hold him accountable, while also allowing him to make some mistakes so he knows what that feels like and learns from it.

  • Make sure he’s continuing to balance his checkbook,
  • Discuss any large purchases he’s thinking about making, and
  • Even though credit card companies have to follow stricter laws when they market to college students, they still prey on them in more creative ways. Make sure your young adult understands the dangers of credit cards and why he should never have one.

Healthy Habits, Healthy Finances

Some kids will go to extremes with their money. Extreme spenders may need to learn the value of money by setting savings goals and working to meet them. Extreme savers often operate out of fear and need to learn that it’s okay to spend and give. Even extreme givers have to find a balance so they learn to support themselves without giving all their money away.

As a parent, you may have to learn some new habits as well. If you buy your kids whatever they want, you’re not teaching them to be anything but spoiled. The world doesn’t work that way, and they could end up living in your basement when they’re 35 if you don’t set limits and say no once in a while.

When your kids spend their money, you don’t have to allow them to buy the latest junk they see advertised on TV. Part of being a good money manager is making wise purchasing decisions. And you have every right to deny purchases of music, video games, etc. you don’t approve of.

The Payoff

For all your efforts, what will you get? You’ll get a responsible adult, who knows how to manage his money, how to live on what he makes, isn’t afraid to work, and has a generous spirit. In other words, it’s totally worth it.

What advice do you have for parents in this process? Leave a comment below!

Posted in Financial freedom

Teach Your Teenager How to Handle Money with This 4-Letter Word: SAVE

Posted on by Tim Connolly

Kids aren’t naturally patient.

Okay, so that’s not really a shock to any parent. From the day you brought your kids home, they wanted to be the center of your universe—partly because they depended on you and partly because they wanted their needs met as quickly as possible.

Even if patience is a virtue, it’s still a challenge to make it a part of our normal lives—and the lives of our kids. But one great way to nurture patience is by saving money, which is where you can connect with your kids in a meaningful way.

After all, teens want stuff. Sometimes, they want big-budget stuff. So, challenging them to save up for those things actually teaches them some incredible life lessons, like goal-setting, delayed gratification, sacrifice, self-discipline and, yes, patience.

With that in mind, here are five things your teen may be thinking about—and could be saving for—right now.

1. Emergencies

Teen emergencies probably look different than adult emergencies. They may be dealing with a phone that fell in the toilet rather than a major medical event. But the scale isn’t as important as the habit. Building an emergency fund of at least $500 is something every teen needs so they’ll be prepared for the unexpected.

2. Technology

Whether it’s a new phone, a new computer or a new gaming system, the price tag for technology can be high. But the sense of accomplishment and pride from saving up cash and buying it with their own money can make a powerful impression on teens.

3. Cars

When it comes to saving for a car, nothing beats clear communication. You may want to match what your teen saves, or you may want your teen to pay it all. Just make sure the expectations are spelled out ahead of time. Also, talk about the other costs that they might miss, like taxes, insurance, gas and regular maintenance.

4. Travel

Some teens may be eyeing an international mission trip, while others might be planning a special trip with friends. But whether it’s to serve or just for fun, teens need to pay for it with cash. Help them identify their ultimate goal, break it down into bite-size pieces, and come up with ideas for making the numbers work.

5. College

It’s never too early to think about life after graduation. In a world weighed down by student loans, your teens need to know that going to school debt-free isn’t a pipe dream. Challenge them to start looking for scholarships early. Sign them up for ACT or SAT tutoring. Consider in-state universities and community colleges. And don’t forget about the power of a part-time job! Like buying a car, set clear expectations about what you can contribute, and plan for the rest. Sit down and estimate all of the costs that go along with college so you both have a realistic idea of what to aim for.

Parenting comes with its own unique challenges, including how to teach your kids to handle money. But you—and your teen—can do it together! And when you do, you’ll be on your way to raising more than just a great kid. You’ll be raising a competent adult.

To help you with the financial challenges of parenting, In addition to saving, you can learn more about how to teach kids about money, teaching your kids to work hard, spend wisely, and give generously—all with a spirit of contentment that will transform their lives.