Parenting My Teen

The Parenting My Teen Podcast is a show all about you and your teens.
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Raising a Financially Independent Teen

By: Aurelia Category: Money Management, Parenting A Teen

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. Everyday we hear about what happens when they are not prepared: record debt, foreclosures and bankruptcies are just a few of the problems people experience. Those are the big ones but consider the fact that just one credit card late payment will haunt them for 7 years. These problems can all be avoided by giving your children the foundation financial education skills needed for financial independence.

Looking at the statistics it is apparent the majority of parents do not have enough knowledge to raise a financially responsible teenager. Public high schools have been teaching similar subjects for the last 50 years and financial education is not one of them. Because of this, many parents never were taught about money and feel unprepared to raise a financially responsible teen.

Raising a financially responsible teen in today’s society is critical. There are ways to raise your child to achieve financial independence at a young age. Even if you have made financial errors yourself there are resources available to help give your children the advantages many parents wish they had.

5 Foundation Lessons to Teaching Your Teenager Financial Responsibility.

Helping your high school or college age child to achieve financial independence will give them an advantage that they will use everyday 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 A key to bringing up a financially responsible teenager has a lot to do with their communication skills. It gives them the power to persuade people and align others with their personal goals, which is fundamental quality to greater earning power. Helping them to develop their writing and speaking skills will increase their chances of getting hired and they are more likely to get paid what they are worth. 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. Creating a vivid image of their desired goal will give them the motivation they need to reach their dreams. 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. Give them advice on how they can make money by following their passions. 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.

By helping them to develop these skills you’re giving them a head start to achieving the freedom of not having to worry about money. You can help your child achieve financial independence at a young age by giving them the skills necessary to go out and 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!

Top Ten Financial Aid Tips for Parents

By: Aurelia Category: Money Management, Parenting A Teen

Looking for financial aid to help foot the tuition bill? Follow these 10 tips to help you secure the funding help you need and remember – don’t wait until your child’s senior year to start thinking about financial aid. The sooner you start, the more money you may be able to find.

1. Get an early idea of your EFC

Estimate your Expected Family Contribution (EFC) during your child’s junior year. By getting an idea of what you might pay, you can find colleges within your price range and identify what you might need in scholarships and loans to manage your tuition costs.

2. Reduce your child’s savings

An entire 20 percent of your child’s assets are considered available for college, as opposed to just 5.6 percent of yours. Encourage your child to save, but keep college funds in a custodial account.

3. Learn a little about marketing

This is one of the most important aspects of competing for merit-based awards. Highlight your child’s accomplishments and an award committee will be that much more likely to consider giving a scholarship to your son or daughter.

4. Make financial aid a part of your campus visits

Ask to speak with someone in the financial aid office – it’s the best way to get your family on the radar for campus-based awards. Afterwards, take some notes! These contacts could come in handy later.

5. Do a bit of detective work

Determine if your child’s application for aid affects the probability of admittance. If so, find out how.

6. Make a decision on early decision

If your child is thinking of applying Early Decision or Early Action, determine how it will affect your chances for aid. Early Decision acceptance may prevent you from comparing awards, because your child will have to commit to the school before you see the aid offers from other applications. (This is not a factor if your child is accepted under an Early Action or Single-Choice Early Action application, as these are non-binding offers.)

7. Determine the effect of outside awards

If your child receives an outside scholarship, find out how it will affect your financial aid award. Some schools will lessen grant aid, and others will pare down on loans. The school’s policy will affect the amount you’ll have to borrow.

8. Pay attention to deadlines

The sooner your child files his or her college applications, the better your chances of receiving aid. To assist with financial aid forms, file your taxes as early in the year as possible. Keep in mind that if you are applying to schools that require the PROFILE financial aid application, it may have an earlier deadline than the FAFSA.

9. Complete the FAFSA

Fill out this form, even if you think you won’t qualify – very affluent families sometimes qualify for aid at certain high-tuition schools. This single application is your gateway to all federal loan, grant, and work-study awards that total in the billions of dollars.

10. Make your college aware of special circumstances

If you have lost your job since completing the FAFSA or PROFILE, inform schools about your situation. Most have standard policies that allow for the use of projected income, which could increase financial assistance.

Financial Aid Information Site – One-stop shop for anything about college financial aid. Learn how you can quickly and easily get more Financial Aid without having to apply for thousands of scholarships!

Financial Tips for Young Adults – Show #49

By: Aurelia Category: Parenting My Teen Podcast

Teaching children and teens how to manage money is essential to their future as independent adults. Rather than teaching your teen how to be dependent on credit cards as they venture off to college, parents can be the ones that set their children on the right path by learning sound financial advice themselves and being good role models.

Today I’m pleased to interview Vince Shorb, founder of the National Youth Financial Educator’s Council, www.FinancialEducatorsCouncil.org. Vince is dedicated to increasing youth financial literacy through a variety of workshops, custom programs, educator training, curriculum, live events and online virtual learning centers.

Vince shares how he went from being a young real estate investor, living a comfortable life, to losing everything, all because he made a few common financial mistakes.

After this experience, Vince learned by speaking with other people that they, too, were making some of the same mistakes he made and this led him to the create the National Youth Financial Educator’s Council and wanting to help educate young people about finances.

Vince is also the producer of Money XLive (www.MoneyXLive.com) which is one of the nation’s largest, full-production, financial literacy events in the country that recently served over 1,100 youth and over 30 nonprofits. This event brings together celebrities, sport stars, and live acts to teach practical money matters in a full production concert venue.

During today’s show we discussed why we have the problem of financial illiteracy amongst young people today and he also shares some vital tips with us on how we can instill financial responsibility in our children.

Listen in as Vince shares tips on how we can start teaching our teens today to be financially savvy and also how we can help them start to build a solid financial foundation.