Education Care

Today the financial odds are stacked against your children. Every day, more Americans are falling victim to runaway personal debt, an empty savings account, and inadequate retirement planning all because they lack a practical financial education. It’s not taught at school so this is where you come in.

A recent study by the Government Accountability Office (GAO) predicts that one out of every three workers will have nothing ($0) saved in a 401k style account by 2050. This statistic is supported by the National Association of State Boards of Education’s report that states ‘most workers are not participating sufficiently enough to allow comfortable retirement’. What makes this study scary is the fact that social security and pensions probably will not be around in the future so the need for financial security is more important than ever.

Not only will a practical financial education benefit young adults in the long-term but it will also have considerable positive effects right now. The latest studies show that over fifty percent of college graduates are planning to move back with their parents. According to the Student Monitor, 62% of college graduates leave school with $27,236 in debt. In addition, less than one-quarter of students and only 20% of parents say students are very well prepared to deal with the financial challenges that await them after graduation. Giving them a practical financial education prior to them leaving home will save them from these problems.

Most parents realize the importance of a financial education and are already aware that public high schools do not provide young adults with the necessary money skills. Parents know the significant positive impact that a practical financial education will have on their kids future. So parents it’s up to you to provide your children with the financial skills they need to make it in today’s society.

Even if you have made financial errors yourself there are resources available to help give your children the advantages many parents wish they had. 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. Consequently, many parents learned about money from the school of hard knocks and do not feel qualified to raise a financially independent teenager.

This lack of financial knowledge gets passed down through the generations because most children learn about money from their parents. Unfortunately, because most parents did not receive any financial education, many are not comfortable teaching their children about money. The good news is that learning the basics of personal money management is much easier and faster than picking up most courses in high school. The financial skills gained will last a lifetime and affect your child’s life profoundly for the better.

Getting your kids prepared for the realities of the 21st century is an important part of responsible parenting. Giving them a practical financial education before they move out on their own will continue to benefit them throughout their entire life. You would never give your child a car without drivers training; So before they leave home teach them about money with a practical financial education course.

Now, more than ever before, it is critical your children are on the path to financial security. There are financial education courses available on the market today that will give our children the advantage many of us wish we had growing up. Plus it can be a great way for you to pickup the money management skills that will help you feel financially secure so your life, and your child’s life, is made financially easier.

While there is speculation as to whether or not we are in a recession, there is no doubt that as a country we are facing difficult financial times. While some may be pessimistic about the current financial difficulty, times such as these can be prime opportunity to educate your teenager about money. With historic foreclosure rates, recurring job losses, and volatile stock market conditions, what is it that you tell your teenager about debt and money? Here are 7 ways to debt proof your teenager:
1. Teach them about interest
Interest is a part of money management just as the dollar bill. Without it, banks could not operate, and many would not be able to secure housing. A lot of teenagers can read about interest and even tell you what it means. However, there is nothing like experiencing it to get its full meaning. Find a practical way to help your teenager gain a tangible understanding of interest.
2. Teach the advantage of saving over immediate gratification
As consumers, we all know what it means to want something – and want it now. Patience is not a virtue that many can apply to object of our hearts desires. Credit makes it way too easy to fulfill our self-imposed desires for the “must haves” of our lives. For some teens, this temptation can be overwhelming. Yet, there is maturity in being able to save for those things we want, rather than paying more for it with the interest that comes from credit.
3. Educate the proper use of credit cards
Spending more than they have earned, you do not have to look far to find an adult that has gotten into trouble with credit card debt. Credit cards are not necessarily evil, but a convenient method of payment in the hands of responsible users.
4. Limit borrowing
There is something satisfying setting a financial goal, and earning enough money to meet it. Sometime loaning money to teenagers can rob them of the opportunity to gain resourceful financial skills. Encourage the entrepreneurial spirit within your teenager. You both may be amazed at the results.
5. Help them learn budgeting
To some budgeting may hold a negative connotation, one that is filled with restrictions and limitations. However, if done right, budgeting can eliminate financial stress and promote inner peace. If you know where all your money is going, then there is no guessing or the stress of trying to figure out how you are going to pay for your bills. There are many are many resources available to help your teenager learn how to make and keep a budget.
6. Teach them to save, save, and then save
Saving is not only important for getting the things we want, but it is also a safety net for when life’s mishaps occur. Without a proper savings account to cushion the blow of financial crisis, credit become and inevitable solution. Having a savings account will reduce stress when problems arise because a person is financially prepared.
7. Use financial tools
Do not be afraid to use the many financial tools available to help your teenager develop healthy money management skills. Debit cards, accounting software, online banking and checking accounts can be great tools to help educate your teenager about finances. Check with your financial institution, local library, and financial professional about possible resources for teenagers.
8. Get some financial counsel
If your teenager, or even yourself, do not have healthy money management skills, then I encourage you to get some help. Check your local community for financial counseling, classes or financial workshops. Contact a financial professional that can help your teenager gain positive financial advice and how to stay out of debt. Or consider taking a class as a family. It is never too late to learn.
Financial habits are taught, not assumed. Many adults that have spending problems or excessive credit card debt may never have learned how to handle money. The habits that are taught as a teenager and cultivated as an adult can have life changing implications for your teenager.

Well, you can’t really spank them anymore, can you? It’s a little distressing… disciplining a teenager while you are looking up at them. In fact, most teenage boys can simply pick their mothers up and move them out of their way if they so choose. So how does a parent go about instilling strong life lessons in their teenage children and help them grow into wonderful, fulfilled, and responsible adults?
Discipline and punishment, in my book, are two different things. Punishment is about power, exerting power over your child when they have messed up. Punishment implies anger. Discipline is about educating a child, young or old, about their behavior and the impending consequences. We discipline because we want them to grow up and be productive and happy people in the world. Unfortunately, teenagers tend to tune out a lot of the normal parental efforts to discipline and parents often feel that punishment works better because it gets their attention.
Getting your kids to listen to you is not as easy as it used to be. When five minutes in the time out chair was a playtime killer and going to bed ten minutes early was a serious punishment, your kids were much more likely to heed your words and listen intently so they could learn to get themselves out of their predicament. Now they are big and the time out chair is laughable and they often even seem to enjoy the challenge of getting themselves out of their predicaments with their own wits.
In many ways, we can equate disciplining a teenager with manipulating a teenager. They want to be free to do their own thing and to create their life as they see fit. We want them to pitch in around the house, make nice with their sister, and keep their grades up. Because each of these wants is tied in with the other’s actions, we tend to manipulate our kids more than discipline them. This isn’t some horrid parenting sin. Sometimes, it’s the only way to get their attention in order to move into the education portion of discipline.
Kids with cars, eventful social schedules, or serious hobbies are the ones that are most likely to listen up when those things are threatened in the form of discipline. When ood grades mean that they can participate in the sport they are passionate about and gas money is contingent upon keeping up with the daily chores, kids tend to be more cooperative. This is because there is more to manipulate them with. When they are failing to provide the appropriate behavior that we would like to see, we have something to take away from them in order to change their behavior. Like I said, this is often how we help them open up their ears so that the educational portion of discipline can follow.
To gain any useful benefit from the manipulation stage, we have to put forth effort during the secondary discipline stage. Once we have their attention, it is important to talk with them about why they are in their current predicament and how to prevent it in the future. If you shut down their car use for a week due to slipping grades, use that week to discuss how your teen can learn to balance his activities more responsibly so that he doesn’t wind up in the same situation. Discussing why slipping grades are more important than using a car can help him grasp that you are looking beyond his action packed weekend and into his college bound future. Ultimately, you want him to recognize that you didn’t dole out the punishment and discipline just to take their car away. You want him to recognize that you are concerned that he may have lost sight of the fact that his college education is more important than his moment to moment fun.
Discipline is a tricky art form. You have to maintain a position of power in the life of a teenager if you want them to realize that your word counts for anything. We have all witnessed a young child whom has figured out at an early age that his parent doesn’t mean what they say and there really won’t be any serious consequence for their behavior. Perhaps you have witnessed this in a grocery store or other public venue. The child not only refuses to stop the behavior that the parent has corrected, but they will actually escalate the behavior the more the parent tries to correct them. Usually the parent continuously comes up with various threats. The child continues to misbehave because they already know that these are empty threats and that nothing is really going to happen. When that child grows into a teenager (without any type of adjustment to the lack of consequences) that teen will walk all over the parent because there will be no reason to adhere to the rules then, either.
Of course, we don’t want our children to be terrified of us, either. We aren’t looking to brutally beat them with some handy apparatus just because they came home five minutes late. Parents need to have rules, but becoming a drill sergeant in your own home is most likely a bit excessive. Provided that you mean what you say and follow through with action and still be willing (at the appropriate time and place) to listen and talk with your child about their behavior and the consequences, you can foster a nice balance of discipline and growth without being unreasonable.
That sweet balance between tyrant and pushover can take a little trial and error practice. When you are dealing with teenage behavior, intelligent discussion, fair and natural consequences, and the strong ability to stick to your guns is what is most beneficial all the way around. Teenagers can make you want to tear your hair out one minute and melt your heart the next. They can be master manipulators while in the next breath become the brainless wonder-child of the century. Disciplining a teenager requires firm and decisive action on your part and an ear for meaningful and productive conversations that lead to better behavior down the line.