Teens crave independence and want to be taken seriously; and, as parents we have to find ways that they can assume more responsibility in a way they can handle. Money just may be the answer. While we make sure our kids learn reading, writing and arithmetic, there is something noticeably absent from their school education, and that is money smarts. Unfortunately, your teen may be able to go through life with little understanding of geometry but no one goes through life without having to deal Read on...
Know the Game, Before You Play
You would never jump into a game and wager thousands of dollars without first knowing the rules. And yet, every year many parents do just that as they embark on the process of seeking financial aid for college costs. The truth is if more parents understood how the information on the Free Application for Federal Student Aid (FAFSA) is analyzed, they would take steps to place themselves in the most favorable light. Strategic positioning can really pay off if you know how the game is played. Read on...
Math that All Kids Will Love
Do you want to get your child’s attention and encourage them to save money? A little basic math will show them how they might become millionaires – if they start investing early. Consider this hypothetical example: A teenager has a part-time job and puts $2,000 of her earnings into a Roth IRA every year starting at age 16 and ending at age 20. Then, she leaves that $8,000 total investment to compound for 47 years at an average rate of 10.7%. Even though no additional money is added to the Read on...
Allowance: Your Kids’ First Money Lesson
One of the most important things you can teach your kids is how to handle money because this skill -- and not earning power -- will determine their financial success. Allowance is one way to create many teachable moments. There are many schools of thought on how to approach allowance: give $1 for every year of age or pay a "competitive" wage; use it as payment for chores, or keep it separate from chores. Well here's a way to make your life easier, limit whining, and give your kids the power Read on...