Record debt, skyrocketing foreclosures and a large number of people suffering from financial stress – is this your teenagers’ future? It does not have to be. Raising a financially responsible teenager will help them avoid the problems that so many of their peers face today.

In today’s age, it is more important than ever that parents provide their teenage children with the knowledge they need to make in the financial real world. Young people are faced with financial challenges the moment they leave the safety net of home. Financial pitfalls that plague many young adults can be avoided by giving your children practical financial education skills needed for them to achieve financial independence.

Five Tips to Teaching Your Teen Financial Independence

Helping your high school or college age child to achieve financial independence will give them an advantage that they will use every day of their life. Below is a list of the top lessons that will establish a solid foundation to raising a financially responsible teen.

1. Ethics – Developing a high moral character will help your teenager earn more money, be a better job candidate and be an overall good person that people respect. In today’s society being a well respected member of the community will help them gain financial independence. The most wealthy and well-respected people are those with high ethical standards.

2. Communication – The backbone to raising a financially independent teen depends on the ability their ability to communicate effectively. It gives them the power to persuade people and align others with their personal goals, which is fundamental quality to greater earning power. The ability to communicate in the written and spoken word will help them to stand out and increase their chances of promotion. What’s more great communicators are more likely to be leaders within a company or become successful entrepreneurs.

3. Proper mindset—Negativity hinders all things in life and can destroy teenagers chances of achieving financial independence. Teach your children to think with the end goal in mind. Developing a clear picture of the end goal will motivate them and give them the added confidence they need to succeed. Studies show that positive outlooks attract positive events so encourage them to develop a mindset that will help them develop into a happy, well-rounded, financially responsible adult.

4. Passion —Help your teenager to find and follow their passions. Help them to consider how they can turn their passions into a fulfilling career. When your child loves what they do it doesn’t feel like work and they excel at what they do. By understanding your teens dreams you will get to know them on a deeper level plus you’ll be helping them develop a skill that will last a lifetime.

5. Organizational skills — Achieving financial independence at a young age will be aided by having good organizational habits. Lead by example; show your teenage child how having an organized schedule, space, and life will benefit them. Doing so will allow them to reach their fullest earning potential

These five tips lay the ground work to achieving financial independence. Of course additional financial lessons need to be taught to help them handle their money; however helping your teen to have a good head on their shoulders is the critical first step.

Protect your child by giving them the practical financial lessons they need to make it in the real world. Visit www.FinancialEducatorsCouncil.org to receive your Free report “10 tips to Raising Financially Savvy Children”. Also download exclusive videos from Vince Shorb, the founder of the National Youth Financial Educators Council, as he shows you how to give your child the financial advantage needed to make it in the real world.

Protect your child from graduating “book smart but money dumb” – help them avoid debt, financial stress and paycheck-to-paycheck living. Give your child the gift of MoneySmarts – for a lifetime of financial Intelligence, Independence, Security and Success!

If you’re the parent of a teen, then undoubtedly you’ve heard this before: “Mom, I need those jeans. All my friends are wearing them and my friends will make fun of me if I don’t.”  Despite what some teenagers think, parents aren’t made of money. You may be struggling with how to address your teenager’s big spending behavior; the following may give you some ideas how to do exactly that.

You can find money to pay for college

(ARA) – In a competitive job market, earning a degree can be the biggest single step one can take to enhance career value and earning potential. As many bask in the glow of making plans to increase their career potential, the prospect of paying for college is a sobering reality.

Few of us have funds set aside for this endeavor. In addition, the College Board’s annual “Trends in College Pricing” reports a rise in tuition costs at public and private institutions for the 2009-2010 school year. According to the report, annual tuition and fees at private four-year colleges rose 4.4 percent to $26,273, and public university costs rose 6.5 percent to $7,020.

Prospective students often don’t know where to start. But take heart; Darlene Violet, director of Financial Aid at Brown Mackie College – Akron, Ohio, offers advice on funding your education. “The U.S. Department of Education distributes $96 billion a year in grants, work-study assistance, and low-interest loans,” Violet says. “Every student begins the process of seeking financial aid by completing the Free Application for Federal Student Aid form, known as the ‘FAFSA.’” Information submitted on the FAFSA form determines the amount a student may receive through a federal Pell Grant, which is based on financial need. The recent economic stimulus program increased Pell Grant funds by $500 per student. Financial aid is available for those who qualify.

Beyond completing the FAFSA, many turn next to student loans. “An education is always a good investment,” says Violet, “but many people don’t realize the loans must be paid back starting six months after leaving school. I advise students to seek out and apply for scholarships.” Wide varieties of organizations offer scholarships, from fraternities and sororities to community groups, foundations, and corporations. Winning candidates receive funds based on a vast spectrum of criteria, including ethnicity and cultural heritage. “Students just don’t take the time to find them,” Violet continued. “It can be a lot of work.”

The Scholarship Committee at Brown Mackie College – Akron hired a group of honor students to help others navigate through the many scholarships available, complete the application forms, and provide feedback on essays written for submission. “This allows students the security to delve deeper into the scholarship world. It’s well worth it,” Violet says.

Scholarship awards can be as important to the educational institution as they are to the student. Federal guidelines, known as the 90-10 rule, mandate that no more than 90 percent of the funds received by a college can come from Federal loans and grants. A minimum of 10 percent must come from outside sources, including scholarships, private loans, and the students’ own financial contributions.

Violet recommends checking additional resources as well. “Many employers will pay or reimburse tuition expenses, sometimes even for immediate family members. And the Veteran’s Administration offers benefits to those who have served our country,” she says. The Workforce Investment Act offers grants to those who qualify, and many churches offer scholarship opportunities. In addition, the Orphan Foundation of America offers scholarships to students who are wards of the state.

Further savings can come in the form of a temporary tax credit. The American Opportunity Tax Credit, included in the economic stimulus bill signed by President Barack Obama, can be worth as much as $2,500. People who earn $80,000 or less a year (or $160,000 or less for joint filers) can claim this credit on money paid for tuition, certain fees and course materials for higher education in 2009 and 2010. For complete details, visit www.irs.gov.

Once a student enters college, Violet advises making other financial considerations:

Ride public transportation. In addition to saving on fuel and parking fees, public transportation provides time for students to get a head start on assigned reading and homework.

Avoid credit card offers. However tempting the offer seems, credit cards charge interest on purchases and impose fees for late payments.

Work while attending classes. Many students work full- or part-time while earning their degrees. The federal work-study program helps eligible students find employment on campus.

“Taking the time to apply for scholarship funds is a step that can help now while they’re in school, and in the future when no bill comes due,” Violet says.

Courtesy of ARAcontent

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The Holidays are a great time for teaching your teen how to be frugal. You can show them how to get the most out of their money, how to save money and different options for gift-giving.

Teach your Teen how to get the Most out of their Money

The Holidays are about giving and some teens really love to give. The trouble is most teens don’t know how to bargain or comparison shop. They usually see something they’d like to give and if they have the money they get it without a second thought. But, you can teach them how to shop and compare.

When you get your local store’s ads in the mail, sit down with your teen and show them what’s on sale. Show them the sales price compared to regular price. Also, compare ads with another store. Perhaps one store will have an item on sale one week, and then the next week a different store will feature that same item in their sales ad. Teach your child to wait before they just go out and purchase something at regular price.

Brand name items can often be found at greatly reduced rates in outlet stores like TJ Maxx and Marshall’s. Teach your teen to shop these stores for items that would otherwise be too expensive.

Help your teen make wise gift choices by teaching them not to select a gift just for the sake of giving a gift. What I mean by this is, for example, when you go to your local department or big box store there is always an aisle, or two, of shelves filled with pre-packaged gift items. Usually these items are off brand makeup sets or hair brush sets, wallets, weather clocks, socks, slippers, and other stuff no one really wants. A better idea would be to go to the dollar store and pick up some cute baskets and fill them with some items your teens family and friends really want. You can do this fairly inexpensively and the gifts are much more appreciated and usually cost a whole lot less.

For instance, a teen girl might really like a basket with a sample or trial size of their favorite perfume or body spray, some lip gloss, a tube of  mascara, some hair ties or headbands, their favorite CD or DVD, a candle, some scented lotion or bath gel. You could even create a set of their favorite shower items like shampoo, conditioner, body wash and lotion for fairly inexpensively.

Another great idea is to have your teen bake a batch of goodies and package them up into nice gift baskets for giving.

If your teen is artsy, have them create some works of art and hand them out for gifts. Most people truly appreciate handmade gifts better than store bought anyway.

As you can see, there are lots of ways you can help your teen be more frugal during the Holidays. A little though and imagination can go a long way.