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Three Reasons For Teens to Start Saving

It’s so easy to waste money, even more so when you’re young and are yet to learn the real value of it. But starting young is the key to setting yourself up for success later on, and if you have kids or teens, here are just three reasons it’s worth them saving what they can. It could be money from birthdays and Christmas, pocket money or part time jobs.

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Education

College and university is expensive, and chances are they’ll need to utilise loans and perhaps help from you to pay for things like books, fees and accommodation. But saving up towards education is no bad thing, and if they start a couple of years before they leave they’ll go away with a nice buffer. This can make it easier to afford travelling around the city they’re in, food, socialising and other daily living costs. When teens move away to university, it’s often the first time they’ll get a proper taste of independence, they’ll be managing their own money for the first time. Being equipped with some of their own money can make the process run much more smoothly, and if it’s cash they’ve saved themselves they’re likely to be that bit more careful with it as well.

A car and driving lessons

Being able to drive gives so much independence, and it’s this which teens and young people really crave. Learning to drive, theory tests, practical tests and other extras can really add up, not to mention the purchase and running costs of a car. Saving up before they’re old enough to drive means that once they reach the legal driving age they can book some lessons right away. Or once they pass, they can get themselves a car. Even if they can’t cover these costs completely and you need to foot the rest, it can make things easier for you and using their own savings means they’ll appreciate it more. Being able to drive can also open up the door to more jobs, those that are further away or those that require driving. It could even lead to setting up their own business. You can find finance deals for vans on sites like The Good Van Company so you don’t even need all of the money upfront.

Deposit for a house

Getting onto the property ladder is so worthwhile. Once you move out and start renting, it’s easy to remain stuck in the ‘renting trap.’ You can’t save much money for a deposit as all of your money is being spent on rent and bills. Once they’re working full time but before they move out of the parental home, it’s worth having a chat with teens and young adults about saving for a deposit. Living at home while they save means they’ll reach their goals much more quickly. When they do eventually move, it could be into something of their own rather than it going to a landlord every month.

All of these things can feel like a long way off when your child is in their early teens, but the years fly by. Anything they can save up now can all go towards a brighter future later on.

Mastermind Groups, Audiobooks and Serendipity

You may have heard of mastermind groups and their potential for elevating your business and personal success. I first became aware of the potential power of masterminds through the iconic book – Think and Grow Rich. Where the success secrets of many of the world’s highest achievers were distilled by author Napoleon Hill.

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Mastermind groups work by focusing the combined skills and experience of their members to solve challenges being faced by individuals. In Think and Grow Rich it was reported that Andrew Carnegie, then the richest man in the world, met regularly with Henry Ford and Thomas Edison among others.

After reading the book I was keen to find and participate in a mastermind group to draw upon the collective wisdom with a focus on my financial education business which I had recently started. Here’s where the first serendipity occurred. Shortly after having the thought I received an email from David Ricklan at SelfGrowth.com announcing that they were launching mastermind groups for people in the personal development industry. I eagerly applied and after some time was even asked if I would like to facilitate a group.

While the group memberships were being put together, I began thinking about the first challenge I could bring to my group. I had recently published my first book in the Financial Fairy Tales series, Dreams Can Come True and I was very interested in exploring an audiobook version. I could imagine for example; the book being playing in the car on the school run.

The first member of my particular mastermind group was an American lady currently living in Japan. During our initial conversation we discussed her goals and plans and how the group could support her. When we tasked about my desire for an audiobook I was amazed to hear that not only was she a voice actor, but also had a friend who was a Grammy award winning musician who she could ask to provide original music.

Within a few weeks she had produced a fantastic audiobook version of Dreams Can Come True which has been downloaded and enjoyed by hundreds if not thousands of children and parents around the world.

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For me this story illustrates the power of our intentions and the reward for taking action. I am sure many of us have experiences synchronicities such as these which occur when we listen to and act upon our intuition.

If you feel curious about listening to the Dreams Can Come True audiobook then we have a few coupons allowing a free download from audible. Please comment below with you email address or get in touch via our social media pages and I can send you a unique discount code.

Using Financial Fairy Tales to Teach Children About Money

Eighty percent of parents in the UK agree that early financial education translates to better money management in adulthood but feel that they are ill-equipped to teach their children themselves. Children are increasingly exposed to household finance complexities in an era where four out of 10 adults in England and Northern Ireland struggle with basic arithmetic and only 36% of those ages 18 to 34 understand common financial terms. Aside from the fact that many parents are struggling with finances themselves, finance counselor and researcher Martha Henn McCormick notes that the relationship between early financial education and financial savvy in adulthood has not been thoroughly studied.

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Photo by Robyn Budlender on Unsplash

The gap in knowledge is a serious concern, according to the English Department of Education, and the All Party Parliamentary Group on Financial Education for Young People (APPG) agrees. An APPG report in 2016 states that the financial literacy crisis is reflected in the UK’s adult population and that there is a need for schools to teach financial skills to reverse this trend. The people over at gkandpartners.com can provide some help in this regard, but curricula do need to be changed to include more financial learning. Research done by finance firm M&G encourages financial education at home as well and suggests parents should be the first to teach their children about money.

Financial Literacy Crisis

With children aged 11 to 17 now exposed to financial issues that they cannot understand or solve, the Department of Education is worried that the financial literacy crisis in the country will get worse. Representatives of the department feel that parents need to be more proactive in their children’s education and that financial education must start as early as age two. While it is still not compulsory for students to take up coursework on finance, it is not enough. The APPG reports that the debt to income ratio of 17 to 24 year olds in the UK is now at 70%, indicating a lack of financial education among the youth.

The Power of Bedtime Stories

Children love stories and parents should take advantage of this by including financial fairy tales during story time. The right stories can teach children about the basics of commerce, the value of money, and the importance of savings and investments. This is a good start for ages 2 to 11 because it is a fun approach to teaching financial knowledge that will come in handy in adulthood. Bedtime stories can also teach children how to grow their wealth and keep their expenses lower than their pocket money. There are a number of financial fairy tales that tackle money wasters, budgeting, and fundamental investment concepts that can give them insight on how to handle the money they have.

The Magic Magpie, a financial fairy tale about a girl who wants to get rich quick offers lessons on financial decisions and their consequences. The Toll Bridge is another good bedtime story for parents struggling to teach their children about money. The book teaches children about taxes, supply and demand, and trade and public spending. The Last Gold Coin is also a good option because it tackles issues on scarcity and what people can do to save the day. You can find out more about the Financial Fairy Tales books here

Knowledge is Power

A child’s brain is like a sponge, according to the International Journal of Science. This means that he or she will be able to master the fundamentals of money management if it is taught early on. Teaching your child about finances through financial fairy tales would later translate to financial literacy in adulthood and can save your child from the burden of financial troubles.

Begin Financial Education Early: It Makes Perfect Cents!

As a responsible parent, you want to ensure that your child is healthy, safe and happy. Part of instilling confidence and self-esteem within your child is making sure that they understand money and finances, and that they’re ready when they do eventually fly the nest into the big wide world. It’s never too early to start teaching your youngsters about money. Having an open and transparent attitude to family finances and being there to answer any questions that your toddler, adolescent or teenager may have means that they’ll be clued up when they have to make major financial decisions later in life. Take a look at how you can teach your kids the value of money.

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Structured Play

Two-year-olds are now able to open up an iPad, swipe across the screen and watch their favorite nursery rhyme on youtube.com without any intervention from mom or dad. Technology is taking over, and this is the same when it comes to money. Internet banking and paying by card means that toddlers rarely see any real money. When you are playing shop or heading down the local store to purchase a small item, get your real life notes and pennies out. Allow your child to feel the genuine article, not a plastic replica. Little kids love nothing better than feeling more grown up than they are, so allow them to pay the guy behind the counter when you pick up your newspaper and see if they can count their change.

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Family Finances

As your kids grow older, they may begin to want for more things whether this is the latest smartphone, console or tablet. If you are struggling to afford their wishlist, it’s vital that you tell them why. You may have recently renovated the kitchen, had to fork out for a new gasket on the car and paid for them to head off on their annual school trip. This meant you had to take out more short-term loans and credit cards putting you into debt. Explain to your child that this is manageable but only if you reign in the spending for a while. If this situation is familiar to yours, consider heading to a site like consolidate.loan and compare debt consolidation lenders. This way all those tiny chunks of debt can be merged into one monthly repayment.

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Incentivise

The best way to get kids saving is to make it worth their while. As you give them pocket money, they may choose to save up for something like a drum kit or a trip to the cinema. Motivate them by pledging to top up their funds with $5 every time they save $20, giving them an extra impetus to save. As they see their nest egg accrue, you may want to introduce the idea of a bank account or other avenues down which they could see their money grow even further. As they get older, it’s important that children understand the importance of saving, so they don’t become frivolous with money as they enter college and adulthood.

Financial education is only sometimes taught in schools, but it should also be an integral part of the home. Teaching sound money sense from an early age will enable your child to grow up feeling confident, content and happy when budgeting, saving and spending.

 

Building a Firm Financial Foundation

Effectively administering your personal finances encompasses broad responsibilities, ranging from everyday budgeting to long-range concerns, such as retirement planning and preparing for a child’s higher education expenses.  For the best results finding security and stability, individual money managers start with solid footing, building upon each favorable financial outcome.  Without a consistent base, on the other hand, individual finances are vulnerable to damage and distress.

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Building a sturdy financial base begins early in life, as young adults transition from dependency, carving-out their own financial territories.  And the process continues for a lifetime, calling on effective money managers to remain proactive shaping positive financial outcomes.  Consider the following concerns, at the heart of your financial stability:

Use Strong Credit References to Support Your Financial Health

From your first financial interactions, your behavior handling money lays the groundwork for credit references, which follow you for a lifetime.  By setting-off on the right foot, you not only establish short-term credit references, but early success also puts building blocks in place on which to raise a strong financial structure.

Although it is a representation of your actual credit behavior, your credit score ultimately takes on a life of its own.  Beginning with your first credit card, car note, or revolving store account, credit reporting agencies monitor your behavior making good on debts and managing money matters.  Successful financial outcomes boost your score, while inconsistencies reduce your strength of credit.  Each circumstance is judged according to its particulars, so it is hard to generalize about the impact of credit mistakes.  Suffice to say, however, it doesn’t take many missteps to undermine your credit strength, resulting in an uphill battle correcting deficiencies.  In addition to responsible use of credit opportunities, adopt these strategies to maintain credit integrity:

  • Always pay on time
  • Utilize various forms of credit
  • Close unused accounts
  • Check your credit score annually

Select the Right Financing for the Job

Various types of financing serve non-commercial borrowers, helping people fund everything from routine daily purchases to major, big-ticket buys.  Matching the correct loan or revolving account to your funding need can save money on the cost of purchases and reinforce your financial foundation.  Using equity financing to carry-off home improvements, for example, is a sensible approach to renovation.  While relying on a high-interest credit card to pay for residential upgrades may not be prudent.

Fortunately it is easier than ever to evaluate lender rates and terms, using online resources to compare and contrast borrowing alternatives.  Your credit history, income and employment status are important considerations when vetting financing alternatives, leading you to the most cost-effective solution for each funding need.

Build a Strong Financial IQ

When it comes to money matters, knowledge is empowering – in more ways than one.  Not only does financial understanding give you peace of mind, ensuring you are making the right moves, but a well-rounded financial IQ can also have a direct impact on your bottom line.  Building and reinforcing financial savvy protects your monetary interests and  whether or not you are mathematically inclined, general accounting principles are important tools for making the most of your financial resources.  Understanding how to balance your budget, for instance, is essential for long-term financial success, resulting in a sustainable flow of cash through your home.  And knowledge of fundamentals such as depreciation, dollar-cost averaging, and APR weigh heavily on your ability to effectively manage money.  For the most consistent financial outcomes possible, use your commitment to financial understanding to make informed decisions, without leaving money on the table.

Your financial security relies on a sturdy base and ongoing discipline managing money matters.  From a high credit score to a strong financial IQ, it is up to you to use all the tools at your disposal, building and preserving a solid financial foundation.