Finance – Page 6 – Tim Connolly

Financial Literacy for Teens: Must-Know Basics

Posted on January 31, 2023 by Tim Connolly

Teach Money Management Through a Bank Account

Rather than feeding them with long boring discussions on money control that rarely perform, open a bank account in their name. Many banks offer unique accounts for young people.

These funds come with easy terms and conditions to provide a teen can use them without requiring anyone’s help. When setting up a bank account for a young person, teaches them in ways.

First, it guides them through all the essential banking vocabulary they will need to learn later in life. After a couple of years, when they will be opening a proper bank account as a grown-up, they will know the process and the type of account they need.

Convince Them To Save for College

College gets financial problems for students all across the world. A lot of it maintains to do with the public economy. Nonetheless, the activities of an individual can make successfully guiding unsettled financial waters during college days comfortable.

If they are working a summer job, or have a part-time job, then convince them to set aside some of their earnings in a college savings account. This activity will teach teens about money and make the habit of savings in them and help them learn the importance of money in college life. They will save money on scholar loans by earning a head start.

Help Them Understand the Difference Between Wants and Requirements

Teenagers are an impressionable lot, and their impressionability can include financial priority. Even though they may understand the difference between desires and needs, you must explain this crucial dichotomy in terms of finances.

Teenagers are heavily affected by what they visit online and what their friends are doing. Many times these exterior elements make teenagers ignore this important difference.

Teach Them How To Avoid Impulse Purchasing

Impulse buying is not a new sensation, and it involves everyone, not only teenagers. Since e-commerce has made purchasing completely hassle-free, one has to be mindful of their shopping/buying manners to avoid overspending.

It is often noticed that teenagers burn their hard-earned savings in the blink of an eye due to stimulating buying.

Have a Session on the Perils of Credit Cards

Credit card operators start chasing teenagers as they turn 18. Many times credit card companies use their possible young clients who are already nervous and hopeless about their college finances.

As a parent and guardian, it is your responsibility to educate your young ones about the risks of credit cards and how to properly utilize them. You control to advise them how depending on credit cards can make a nasty cycle of debts, but also how you can safely take benefit of utilizing credit cards.

Teach Them the Concept of Compound Interest

The compound interest lies at the heart of our financial system. Whether it is loans or investments, compound interest is one element that specifies their deals on the other side of the horizon. By creating them to understand its concept, we do not represent only leading them through the calculations for compound interest.

money management

Kids and money: Teaching kids financial responsibility

Posted on September 22, 2022September 23, 2022 by Tim Connolly

Money management for children and financial responsibility means setting a budget or deciding what to do when kids run incorrectly of their guidelines. One answer is to need your kids to save their allowances in locked containers. But since this doesn’t teach control and you can not always be everywhere to overlook savings deposits, there are more informative ways to make the point.

One of the methods is to make it a game of playing with money. You can use different piggy banks to collect money for different purposes like saving for a specific item, day-to-day spending, buying gifts, contributions, and investing.

If your kids get your financial teachings from an early age, older kids do not have concerns about understanding the concepts of long-term and short-term saving. If not, explain them concepts by using goals, as with a new video game a month from now versus a new smartphone this summer.

More youthful kids understandably have a problem learning off-site savings, so the best tool for them is often a piggy bank for coins and a wallet for bills. Count the money with them occasionally and tell them how close they are coming to achieving their goals. Do not demotivate them, honor their improvement.

When you are kids reach the age of 9 or 20 they are enough big to manage their bank accounts. So that teaches them about bank accounts, loans, debit cards, and credit cards so that they can understand the concept of interest rates at an early age. Unless they are old enough to manage a checking account, kids can do withdrawals as cashier’s checks.

For big-ticket items, teach them how to do the research: reading articles and reviews, analogizing prices, and bargaining with others. Doubtless, an occasional purchase will be faulty. No problem. Use this to explain the importance of saving sales receipts and reviewing warranties. When you return the goods, take your kids to show them how to deal with such kinds of issues.

The best way to encourage good spending habits is to show them. When planning a trip to the grocery or discount store, get your kids involved in making a list and sticking to it. It will teach your kids to avoid impulse buying.

Every single parent wants their kids to become responsible adults. And can manage their finances. Kids grow up seeing their parents manage money, write checks, use an ATM, and buy things with credit cards. Starting teaching them at a young age will help them understand financial matters in the future.

When it comes to teaching kids about money management, assure to have a conversation about credit cards, how they work, and their proper use of them. Discuss marketing strategies that will come their way. Do not teach money management in a complicated way. Just follow some easy steps and your kids will be well on their way to obtaining healthy lifelong money management skills.

Kids need to learn about money because it will help them live a successful life, protect them in the knowledge that they are financially stable, and have an honest respect for the value of the money they earn.

Kids and Money

Top tips for teaching financial education to kids

Posted on September 22, 2022September 23, 2022 by Tim Connolly

Financial education is one of the most essential lessons to teach kids and the current climate provides an excellent chance to start the conversation. All young people should have access to financial education, taught by both parents and teachers, and believe that it is an excellent opportunity to set the bases for actions that will last long into the future.

Therefore, here is a list of top tips and advice for financial education for kids and make them aware of the advantages of budgeting, saving, investing, and giving back. It is a life skill that needs to be introduced early on for them to know what to do, how money works, and yet how to plan their financial future.

Start investing earlier

Taking small steps by investing little and often from an early age can make a surprising difference to a young person’s future, giving them a head start towards financial security. The essential thing is to start investing as soon as you can so that your money has an abundance of time to grow.

Make learning fun

It is a stressful time for parents, most of who are juggling home-schooling – usually for the first time – with work and handling the home. Moreover, there are fun, fast, and simple ways to start teaching kids about money. Start with virtual games-based lessons these games are often free and can include everything from budgeting and saving, to risk and reward, the basics of investing, and how interest works. These types of games can help your kids to make smart financial decisions when they are older.

Teach them by setting an example

Ensuring people can plan, grow and save their financial future and achieve financial well-being in today’s world worth living in is so essential. It is equally so important to share and teach these skills to your kids so that they can grow up a sense of confidence towards money and understand how to make informed decisions throughout their lifetime. Educating young people about the benefits of budgeting, saving, investing, and offering about is a life skill that needs to be taught early.

Improved emotional and financial support

It is likely that your kids need extra support during these unprecedented times, whether they are young or home from school. Thinking about money as a family is a great place to start and has the added benefit of introducing more youthful generations to financial planning. The effect of covid-19 can prompt you to teach your kids important life skills such as how to adapt to current events and how to avoid financial stress, and how to get out of such kind of situation.

Fix a goal

Whether it is buying a first home, paying for education, or traveling the world, setting a goal and putting money away to save for this early on in life can make it achievable. The more extended the investment is, the greater the benefit from yearly compound growth of reinvested retrievals.

Final thoughts

There are so many tips and technologies that can guide a way that kids will understand and appreciate.

money management

Best Money Management and Saving Apps For Kids

Posted on August 19, 2022August 29, 2022 by Tim Connolly

While there are many apps to help kids manage their money, managing money through apps is interesting for your kids will never be gone bored with it and learn how to manage money.

All money apps are effective moreover, your kids can use them consistently. Money management apps are simple and helpful. There are also many apps for savings besides those apps not only return interest but also help you to set your goals and track your progress to achieve your goals.

Here are some apps for teaching kids about money

FamZoo

FamZoo is a family finance app that teaches your kids money management. Make an account of your kids it gives one dollar for any objective such as savings, spending donation, and investing. Let them know that the Fam zoo app also develops incentives within, the app to support financial matters that are set with your values.

Greenlight

Greenlight is like a prepaid debit card in which you can also see your child’s account without knowing them. You can see how they are spending their money and if you find out they are not managing their money, after that you can guide them. In this app, there is no balance limit and age requirement. You can also receive real-time notifications
from this app.

Bankroo

Introduce your kids to the Bankroo app, which is designed by a student who wants to manage her monthly budget and pocket money in a better way. Bankroo is easy to use that will help you or your kids manage their finances.

You can also give your kids allowance or frequently add funds to their accounts, even you can use this app to encourage your child’s helpful and good behavior.

Teach your kids to keep a record of their every expense, by this they know how much balance they have left. In Bankroo ap there is also a saving feature to teach your kids how essential saving is to achieve their dreams.

Savings Spree

Savings free is a money management app for kids who are the age of 7 and more than 7. This app teaches your kids about saving, investing, spending, and giving in a fun way.

Counting Coins

Let your kids know about this app it is a kind of game that is interesting and teaches kids money management nicely. In this app, there are four modes for matching values, creating a total, and showing values and how many cents.

Conclusion

Teaching money management to children through games and various apps is a great idea. It teaches kids how they can make choices, how to do savings, or how to spend their money wisely in a game. It introduces the concept of earning money through various jobs. All these apps will get your kids excited and motivated to learn how to spend, save and share ideally.

It’s never too early to teach your kids about money management skills that will help them to serve well in their future. Each of these apps will help your kids initiate discussions about money. Not understanding money management creates many problems in the future.

teaching teens

5 Money Tips Every Teen Should Know

Posted on July 22, 2022 by Tim Connolly

As a teenager, you may even be living at home. But as adultness approaches, it’s necessary to ensure you have the economic know-how you’ll need to avoid costly mistakes when it comes to handling your own money.

As you start to get financial independence, such as working your first job and qualifying to live on your own, you should seek out ways and tools that will improve your money management skills before you learn these lessons the difficult way.

Here are five money tips for teaching teens about money and joining adulthood with a good financial head on your shoulders.

Set up checking and savings accounts while you’re still living at home

Don’t wait until you’re living on your own to specify accounts with a local bank. Set up a checking and savings account and understand the basic functions of these accounts, such as script checks, creating debit charges, and analyzing online bill pay and other key elements.

Opening checking and savings accounts can help you to establish a connection with a local financial institution, while also enlightening yourself with two of the most meaningful financial tools you will ever use.

Utilize money management apps to set budgets and track spending

Money management apps are an incredible help to help you follow your income, set spending budgets, and determine trends in your spending behavior.

With these money management apps, you can practice money management and track your progress over time.

Find simple ways to start building credit

Opening a checking or savings account is fantastic for creating a financial history. But these accounts don’t permit you to build credit. There are other steps you need to take to start building a positive reputation that contributes to a more elevated credit score—which will come in handy when it’s time to take out student loans or finance a car purchase.

The first step is to make on-time payments for any invoices you may have, such as your cell phone, if your plan is distinct from your parents’. If you’ve invested in a car purchase with your parent as a co-signer, creating regular payments can help you build a substantial credit history.

Another easy way to build credit is to open a starter credit card that has a low spending limit. Credit card fees and interest can stack up quickly, so ensure you keep an eye on your spending. One way to avoid stressing about overspending is to only use your credit card for one or two spending classes per month, such as getting gas. It’s also good to set up automated payments to confirm your balance is paid off in full every month.

Take benefit of digital tools that help you save gradually

Comparable to money management apps, you have many different options when it comes to investing platforms and other savings tools that leverage technology to assemble toward savings goals.

Educate yourself on the risks of taking out debt.

As you look forward to your college years and adult life, it’s essential to be aware of the risks of using credit cards and student loan obligations to fund your lifestyle. These financial tools make it easy to spend finance carefree at the moment, but if you are not careful, you could explore a deep money gap that takes years to rise out of—and accrue considerable interest along the way.

Conclusion

Be sure your teenager understands how you earn money. Involve them in tracking spending and calculating the percentage of your loved one’s take-home income that goes to rent or mortgage. Knowing to budget now will help them manage to spend when they are on their own.

Financial Advice, financial education, financial lessons, financial literacy

3 Money Skills to Teach Your Teen

Posted on April 21, 2022 by Tim Connolly

Set your older child up for success with these important lessons.

Though a child’s teenage years are often wrought with turbulence, they’re also a turning point. After all, teenagers are at an age when they’re finally able to take on certain responsibilities, such as caring for themselves without an adult present or getting a job and earning money rather than depending on their folks for an allowance.

Now, as most parents will tell you, getting a teenager to listen and take you seriously is easier said than done. As such, you may need to pick your battles when attempting to impart wisdom to an older child. But if you’re going to make the effort, it really pays to offer financial education to kids, and you can do so by focusing on these key money skills.

1. Budgeting

Budgeting is one of the most effective financial tools out there, and it’s really simple to do. If you teach your teens to budget money carefully, they will be less likely to land in debt as young adults — and suffer the repercussions involved.

Granted, it’s not that easy to teach teenagers to budget when they only have a handful of expenses to bear, such as a cell phone (assuming you don’t pay for it) or leisure spending.

But what you can do is let your teen in on your budget — the one that covers everything from your mortgage payment to your auto loan to the food you put on the table. That way, your children will get a sense of what budgeting is truly like so that when they move out or go off to college, it’ll come naturally.

2. Saving

If saving money were an easy thing to do, more people would do it. But saving money takes discipline, and that’s something a teenager may not have at first.

That’s where you come in. Review the importance of having healthy savings account with your children and explain how it could come in handy at various points in life.

Whether it’s the spring break trip your teens will want to take or the home they’ll eventually want to buy, understanding that savings make these things possible means your child is more likely to take the idea seriously.

But don’t just talk up the importance of saving money — show your teen how to make it happen. Discuss the art of setting priorities, and explain how the process of automating savings can help your child stay on target.

3. Investing

You’re no doubt aware that investing money is a good way to grow a smaller sum into a larger one. And it’s important that you share that with your teens so that they can start putting their money to work.

If your teens earn money from a job, encourage them to open IRAs, which is generally an option as long as your teen is 18. If your children are younger, you’ll need to open custodial IRAs on their behalf.

From there, you can walk your teens through their investment choices in that account and explain the various benefits, drawbacks, and risks associated with each one. Stocks, for example, can be volatile, but they offer higher returns. Bonds are safer, but offer lower returns, generally speaking.

money management

What Should I Teach About Money?

Posted on March 29, 2022 by Tim Connolly

Children start to learn about money from early childhood. Parents and carers have the most important influence on how children deal with money in adult life. Teaching kids about money helps them manage their own finances as they get older. There are lots of age-appropriate ways to do this by keeping it simple and making it fun.

All children are different, but there are some developmental milestones that can help guide what to teach them and when:

Three and four-year-olds

You can start teaching pre-schoolers about money from when they start to talk and ask questions – when they touch, investigate and play with everything.

Five and six-year-olds

They’re starting to develop a deeper understanding of numbers and will be able to pay attention for longer.

This makes it a great age to move from playing to showing good money management.

It will still need to be fun – but you can start integrating more money-related skills into everyday life. For example, saving for a new toy or turning shopping into a learning experience.

Seven and eight-year-olds

They’re beginning to understand the difference between wants and needs.

This is a great age to talk about how they can start achieving some of their own wants through earning and saving.

Nine to 12-year-olds

At this age, children want independence. So you can focus on getting them to take responsibility for their own spending and saving choices.

Helping them learn about how to be responsible with their money can also give you peace of mind as they become more independent in their decision-making.

Teenagers

When a child becomes a teenager, their aspirations will be bigger – and more costly. From thinking about what they wear to wanting the freedom that comes from learning to drive, this is an age when money really starts to matter to them.

You can help them become money-savvy adults in three main ways:

giving them financial responsibility
setting the right example
helping them manage their first wage.

Financial Advice, financial education, teaching teens, Teaching Teens About Money

Teaching Kids About Money in a Creative Way

Posted on March 23, 2022 by Tim Connolly

Only 23% of kids say they talk to their parents regularly about money, according to survey results shared by Money Confident Kids.

In a 2014 survey of 15-year-olds in the United States, the Organization for Economic Co‑operation and Development found that 18% did not learn fundamental financial skills that are often applied in everyday situations, such as building a simple budget, comparison shopping, and understanding an invoice.

That’s quite a sizable knowledge gap for an age set poised to start driving a car and applying for college and student loans.

Military families often have an abundance of opportunities for teaching teens about money. Each time you move to a new location or buy a new home, for example, you usually need to create a new budget surrounding the current cost of living and any changes in parental employment and housing expenses. Situations like these are excellent opportunities to involve kids in real-world money talks.

If talking to your kids about money is a goal you have been thinking about, here are a few simple steps and resources to help you get started.

Start bringing kids into the conversation, rather than saving financial talks for when they’re out of the room. It’s okay to have budget conversations with your spouse in front of your children, including talking about paying the monthly bills or saving money for your upcoming PCS move.

You’ll be a healthy role model for your kids. A good friend who runs her own company from home often lets her 8-year-old son help “run the business” by involving him and talking to him about the finances, including reviewing income and expenses.

It’s all great exposure to terminology and critical thinking, plus it adds so much more meaning to the work our kids see us do on a daily basis.

Make money more visible. For most of us, paper money is seldom used as much as it used to be. With so many of our financial tasks handled online or automatically, kids can miss out on the exchange altogether, if we don’t point out what’s happening.

Whether you decide to take out cash from the ATM and let your child count it or manage it for a few days, or you have them sit with you while you pay a few bills or look at your bank account online, you’re helping them to learn valuable lessons in money management.

Add a fun spin by pulling out the foreign coins and bills you’ve collected on your military travels to show how money looks different around the world.

Involve them in making a purchase. For little kids, a great first experience could be to pick out a small something together at the coffee shop or grocery store. You can point out the price tag (or show that there are several options and discuss how you might choose between them).

Then, you can help them count the cash or change to buy a piece of candy or a drink, let them present it to the cashier, and allow them to make the change. Involving them in an everyday purchase like this can help them tune into the exchange of money for a good or service.

For an older child, focus on the research and decision-making involved in making a bigger purchase, such as a new lawnmower, annual vacation, or family car.

Start with one small goal or improvement. Maybe you’ve wanted to talk about money with your kids and are ready to get started, but the teaching points seem overwhelming.

Don’t worry about stock trading on the first day. You can accomplish a lot just by making one small, intentional change—such as bringing money into your daily conversation. Pick a natural time each day to share with your kids about money:

While…

making a grocery list, chat about including seasonal produce rather than items priced at a premium.
sorting sales flyers from the mail, discuss temptations to buy or the concept of a bargain.
paying an invoice, show how you pay some bills by check and others online.
depositing a paycheck and checking your account balance, talk about reasons you move some of the funds to your savings.
updating your budget to reflect new expenses after a recent PCS move, discuss cost of living in different areas and/or typical household expenses.
researching options for a larger purchase, discuss ways to pay or finance and how these options impact your monthly budget over time.

These are all good opportunities to a practice involving kids in the process by asking questions and soliciting their ideas and input.

At any age, there are valuable lessons you can teach your children about money. Even as adults, often the first place we direct a financial question is to our parents.

You are unquestionably qualified to prepare your kids with the important foundations of money management.

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Starting early: How to use allowance as financial education

Posted on March 18, 2021 by Tim Connolly

Top 10 Tips on Teaching Kids About Money — Starting early: How to use allowance as financial education

For many families, allowance is just that — money that children can use at their discretion. But allowance can also be used as a valuable tool to give your kids a head start on learning about money, including how to budget, how to prioritize needs and wants, and how banks work. Starting early is key to building strong financial foundations. So, to help you get started, Union Bank & Trust has put together some tips on how to turn an allowance into learning opportunities.

Start with the basics

The amount of allowance you give your children is up to you, but even younger children can start learning financial management skills. Experts suggest $0.50 a week for each year of a child’s age; for example, 5-year-olds would receive $2.50 a week, and 10-year-olds would receive $5 a week. Decide on an amount and frequency that makes sense for your family, then give them their allowance in cash — this helps them to visually see their money increase or decrease when they save or spend.

Set expectations

As you discuss allowance with your kids, it’s important to establish guidelines. How long do they need to make the allowance last? Do they need to ask your permission before making purchases? Do they need to earn the allowance with chores, or is it freely given? Once you decide on terms for allowance, work with them to divide their cash into different buckets to spend, save, and give. A good target is to delegate 10% to savings, 10% to charitable giving, and the rest as spending money. This is also a great opportunity to teach your little ones about charities, nonprofits, and the importance of giving back and helping others in need.

Add in best practices

It’s never too early to set up a savings account for your child! Savings accounts give them a dedicated place for their money, and having the money safely tucked away in a savings account can help prevent impulse purchases. Savings accounts will also teach compound interest and can help motivate them to save more for the bigger things they want to buy. Additionally, tracking and monitoring their savings and their purchases can help develop both their math and banking skills.

Develop financial responsibility

As your kids get older and more experienced in their money management, give them more responsibility and higher expectations of what they earn and manage for themselves. If you feel comfortable, increase the amount of money you give them and what expenses they are responsible for. Giving them a certain amount for lunch, clothing, and necessities each month lets them practice budgeting but also lets them fail in a safe space. The average person takes three months to get a handle on their budget, so failing is expected, and important! For example, if they spend all their lunch money in the first week, they have the natural consequence of relying on home lunch for the rest of the month. It might seem harsh, but by doing so, you can help guide them through spending and saving for bigger expenses, like college or a car. As your child gets older and well versed in budgeting and savings, you can also introduce other categories of saving and spending, such as a checking account with a debit card or an investment account.

Teach by example

Money doesn’t have to be a taboo subject with your children — in fact, consider walking them through your own bill-paying process and how you save. Exposing a child early to the reality of money, expenses, budgeting, and saving sets them up for success as they become adults and eventually manage their own money.

No matter how you handle the specifics in your home, an allowance is a powerful tool for teaching kids about money and the importance of saving.

money management, Parenting

Money, Honey Teaching Kids the Power of Financial Literacy

Posted on March 18, 2021 by Tim Connolly

Teaching your kids the value of money | Randell Tiongson — Money, Honey Teaching Kids the Power of Financial Literacy

There was a time when financial literacy for children was pretty simple. Counting and saving pennies in a piggy bank, which could be raided for an occasional treat, went a long way toward teaching kids what they needed to know about managing money.

Today, finances are not nearly so concrete. They’re characterized by highly abstract notions like credit and interest, and by transactions that occur invisibly and magically over the Internet. Teaching money management to children is more complex, yet, perhaps more critical than ever before.

On budgeting:

Beyond identifying types of money and their associated value, even the youngest children (beginning at age 3) can learn to budget. Provide jars labeled “Save,” “Spend” and “Share” and have your child divide his money among the three. This allows him to think ahead about how to spend and promotes the habit of setting funds aside for future uses (therefore teaching deferred gratification), rather than spending it all right away. When he gets older, have him use envelopes or bank accounts to divvy up his loot.

On choosing:

Shopping trips are great times to teach children about making choices. Help your elementary school-aged child understand that if she spends all her money on a doll, she won’t be able to buy an arts and crafts kit, too. Are there two things she can buy for the same amount she would have spent on one? (This is a great opportunity to sneak in some math and analytical thinking, close cousins to financial literacy.) It’s important to resist the urge to buy additional things your child wants but can’t “afford.” Otherwise, she won’t experience what it feels like to make choices.

Savings and interest:

Older children can and should begin to tackle concepts that are more mathematically sophisticated. Plug in some figures on the Investment Calculator tool, which can be found at Investment.gov, to see how compound interest and regular contributions “grow” a savings account over time. The exercise may inspire your child to save early and contribute often. Having a specific goal to save toward, like a new skateboard, car or college fund, can also be motivating.

Credit cards and interest:

Navigating the world of credit card and other debt can be more challenging but is also incredibly important. As plastic and electronic devices have largely replaced using coins, bills or checks, spending may not even seem very real to your child. But the impact of accumulating debt that outpaces his ability to pay can quickly become a huge burden. According to one source, the average American household’s credit card debt last year was $5,700, but the nearly 40 percent of households who carried debt month-to-month owed more than $16,000. Ensure your older child understands how credit card companies charge interest and how it compounds when balances are not fully paid each month. A pair of shoes that cost $50 could cost $200 or more by the time the “principal” (or original charge) and accumulated interest is paid.

Other types of borrowing:

At the same time, borrowing to finance certain big-ticket items like higher education or a home may be unavoidable. So, while children should be wary of debt, they must also know how to borrow responsibly. Talk to your child about how interest works on a loan as opposed to the “revolving” debt of a credit card. Look at specific loan scenarios, including total time to pay off the loan, projected monthly payment and how much total interest would be paid over the life of the loan. Armed with information, your child may be more motivated to defer or save up for bigger purchases. When your child does borrow, encourage him to shop around for the best available terms. Studentaid.gov contains a lot of good information about student borrowing and other types of financial assistance.

At the end of the day, it may be most important to remind children that, in small and large matters alike, what may seem like a “need” may actually be a “want,” and that “wants” can be deferred or perhaps satisfied through less expensive alternatives. Once they become adept at knowing the difference, children and teens are in an infinitely better position to make good financial choices and to have more funds available for what is most important.