Teaching Financial Literacy to Youth

The importance and value of teaching financial literacy to our youth cannot be overstated. If this generation of young people cannot build their credit, manage a budget, or apply basic investment knowledge then we have produced an entire generation on their way to a lifetime of poverty and financial strife.

Recent studies show that over 70% of college graduates plan on moving back home with their parents after they graduate and many will stay there into their mid thirties simply because they lack financial literacy skills. Parents if you don't want to be embarrassed when you tell your friend that your 35 year old kid still lives with you, then pay close attention to this article.

By teaching financial literacy to children we give them the opportunity to consider their futures more carefully. When we preach the advancements made possible by going to college we often neglect to show them some specific examples or give them the other skills that will maximize their investment in a higher education. We often fail to show them how to take the extra money they earn with a college degree and get that working for them by establishing a savings and investment plan.

Here are 5 tips to ensuring you empower your children or students with practical money skills.

1) Motivate them by relating money to the ability to live the lifestyle they desire.

2) Start your children saving money when they are young.

3) Get them involved in your financial decisions and set family financial goals.

4) Have them open their checking, savings and brokerage account immediately.

5) Sign your child up for a professional financial education course.

Ensuring that we teach financial literacy to children is actually the key to preventing future financial problems for our children and for the world. If we can teach the future generations how to manage money and how to make it appropriately we offer the entire world a better financial outlook. Each child will contribute to the financial ruin or the financial success of our world's future.

We can take the time now to teach financial literacy to children or we can end up teaching it to today's kids when they turn into tomorrow's adults. By then it can be too late. It is much easier to stay out of debt than to dig your way out of it; that is why we must teach financial literacy to our children before they leave home.

Unfortunately, our children will not be able to count on social security or Medicare. On top of that, due to our debt problem and the almost certainty of inflation, there will be an accelerated cost of living that is projected to be quite significant. Unfortunately, projected incomes for many of today's minimum wage jobs do not coincide evenly with poverty projections.

Those issues may be disheartening but by taking the time to teach financial literacy to your children you equip a child to move into adulthood with confidence and abilities that will serve them for the rest of their lives.

It's not easy to grow up in a financially unstable world. By making this mission a top priority we can count on the financial success of tomorrow.

Article by Vince Shorb

How to Lead Your Kids Away From the Trappings of Debt

There is a lot of complaint about the lack of financial education being provided to the younger generations. Personal Finance 101 is not a required high school or college course, yet the financial status of an adult is highly dependent upon the lessons learned about money from a young age.

It most cases, the responsibility of personal finance lessons is naturally assumed by the parents. While it is true that parents have a duty to guide their kids into adult life, a real education about real-world financial matters would also not be a bad idea. But finding such courses is not likely, especially since it is important to start kinds on the right money path from a very young age.

Here are some of the most important things we can teach our own kids about financial matters broken down into age groups:

Pre-School
Savings is a good lesson for the youngest kids. Give a child a piggy bank and allow them to collect the loose change in the sofa cushions to save in the bank. Even at this young of age, children can be taught it is important to save money rather than spend it.

Tweens
For older elementary school kids, it is time to start a bank account. Discuss with the child the basics of a bank account and why it is important to put money into the account on a regular basis. Encourage kids to put a portion of money they receive as gifts for holidays and birthdays into the account to teach them the art of paying yourself first. Tweens can also learn how to enter data into a savings account register and review bank statements for accuracy. If parents are open to using cash as a reward for household chores or odd jobs, part of that money should also be deposited. Allow kids to spend part of their money for the items they want. Parents can still cover the basic expenses but kids should start learning financial independence for their wants. This will begin allowing a child to understand the benefits of responsibility and money management.

Teens
Teens can carry on the lessons learned as younger kids - paying for the things they desire. However, teens are also inclined to want bigger and more expensive things including a vehicle, spending money for dates, and higher-priced technology. Parents can encourage teens to take a part-time job and earn a pay check. Older teenagers can be taught the fundamentals of credit card usage. While kids younger than age 21 can not typically get a credit card of their own, they are certainly headed in that direction. Parents can add kids as authorized users on a credit card account and then discuss the rules of spending on credit.

Lessons detailing the way credit cards work, how much interest really costs, and the importance of making on-time payments for the balance due are all vital details an individual preparing to leave home should learn. Another important aspect of personal finances kids at this stage should become familiar with is a budgeting. Teens that have regular income and expenses such as gasoline, credit card payments, and entertainment funds can learn to add up and categorize their finances on simple budget worksheets. Creating this visual and establishing a reliance on a budget will also help carry older teens through their college years.

College Age
Even young adults ready to leave the nest still need the financial guidance of their parents. More in-depth discussion about finances can include discussions on the responsibilities of student loans, maintaining creditor accounts, and the importance of a credit score. Those who have established credit should be shown copies of their consumer credit report and parents can review the details concerning their credit score. All of this information will be important after college graduation and it is important for those about to enter the workforce to be fully prepared.

Life After College
When starting out on their own for the first time in the real world, kids will still rely on parents for the important details of adult finances. In particular, they should clear on loan practices when they need a car; mortgage procedures when they need a home; income requirements and retirement strategies when they get a job; and other relevant details concerning financial stability. While some children will begin to form their own opinions and financial strategies separate from their parents, many will still rely on their parent's advice when struggling with first-time money decisions.

Monkey See, Monkey Do
Many parents will hesitate to reveal personal financial information to their children which can be a mistake in the long-run. Kids traditionally follow in the footsteps of their parents and imitate the financial lessons they learn through observation of their own family life. If these perceptions are not accurate and parents do not make a concerted effort to teach children important financial facts, their offspring could end up burdened by debt simply because they were not taught the concepts of money.

Consider how children view a parent's financial situation. Money comes out of magic machines and small pieces of plastic let us take things from a store. While financial concepts can be complex even for informed adults, it is best for them to have the basic fundamentals taught through the different stages of their life so when reality sets in they will be well-equipped to face it head on.

Parents also need to remember that no two children will take away the same message from financial lessons. For some kids savings will come easy while others may have a difficult time dealing with money in a logical way. The key idea is to incorporate real-life money lessons to individual children in a way that makes the most sense. Some kids can learn a great deal from worksheets and written information while others need to have a visual before understand even basic concepts of money management. Luckily there are a lot of tools out there for parents to use to help provide their children with quality personal finance lessons.

Article by Steve Dowell

Teach Kids Financial Literacy

Introduction

The need for financial literacy is rising worldwide as long term financial planning becomes an increasingly complex process where even many financial professionals find hard to grasp! With today children growing up relying on their parents' wallets and credit cards for things they want (and often not needed), these children have apparently lost touch with money.

A Change to 'Invisible Money'

I grew up watching my parents receiving their pay packets in a brown envelope at the end of each month. The money would go into various allocated budget and these would be under the control of my mother. She was responsible for dishing out money for daily necessities, groceries, as well as pocket monies for me and my siblings. She was able to make ends meet each month, with a bit of savings.

Today, these pay cheques have become invisible as they are credited into bank accounts with various inter-bank GIRO payments taking away part of the salaries. The advent of the credit cards has also a major impact on the spending habits of the younger generations, and credit cards have altered entire generations' perception of money.

Teaching of Financial Literacy

In Singapore, the Ministry of Education has attempted to incorporate financial literacy into school programs such as social studies, civics, moral education at primary and secondary level. This financial literacy apparently is insufficient and has not enough depth and impact to educate the younger generations of students, and financial literacy is absence in the junior colleges and universities, as students drilled deep into their respective spheres of interest such as engineering, business administration, economics, etc.

Thus, financial education may not address the deeper issues such as behavioural patterns of today society. The hope is that it at least creates an awareness of the basics of money management.

Article by  Alice Tan

Resolve To Teach Your Kids About Money.

Now that the hectic holidays are coming to an end, it is time for another annual tradition: New Year's resolutions. In addition to the ones that seem to pop up every year (at least for me!), why not add one this year to teach your kids about money?

Why should you teach your kids about money?

One of the more practical life skills that does not get taught much in the school system is money management. That leaves the teaching to Mom and Dad. And the earlier you can get started, the more prepared your child will be as they grow and get more money responsibility.

But does knowing about money really matter? You bet! Take a look at the subprime mortgage crisis, the record credit card balances and the lack of savings of folks who want to retire. Individually, each financial issue has its own cause. But in total they all have one thing in common: a general issue with financial literacy and money management.

I know, I know. All of those issues are adult money problems. How can they apply to your kids when their biggest problem is how to afford the latest Wii game or an iPod? For starters, money education is a process. And it needs to start young. The "adult" problems come from adults who do not have a basic financial education. And, improving your child's money education now can help them avoid such money traps in the future.

But..but...I'm not a teacher!

Really? It seems like you have been doing a good job so far. How did your child learn to dress themselves and tie their shoes? How did they learn to brush their teeth and be kind to others? These are all life skills that you have taught them. Learning about money is no different - really.

It can seem daunting. Money is not typically one of those things on the list that parents should be teaching their kids - at least not until they get ready to leave for college. But starting young and taking it slow is a great way to make it easier on both you and the kids. Consider these ideas:

·       Start an allowance if your child is 6 years or older.

·       Start a savings plan by allocating certain amounts of allowance, earnings or gifts to spending, short-term and long-term savings.

·       Open a savings account at a local kid-friendly bank or credit union.

·       Encourage savings by paying interest or matching (if your budget allows).

·       Check out some good financial books. These can be for you as a parent or for the kids. Improving everyone's money knowledge is an important step.

·       Teach kids about the costs of everyday items. One of the best teaching tools can be grocery shopping and price comparison.

What ideas can you come up with? The goal here is just to get started - it is not to turn your child into the next Warren Buffet. Take advantage of everyday opportunities such as getting money from an ATM, paying bills or shopping. Try to make it fun and interesting for everyone...and just think how much they will have learned by this time next year!

Source: Jennifer Peek

Consider Looking for Ways for Kids to Make Money To Pay for Their Education

One of the big pressures of the teen years is saving for college. With the rising costs of education, it is probably wise to look for ways for kids to make money to pay for their education. In addition, I want to give you some practical things to remember as parents with teenagers.

First off you need to spend time looking for scholarships and grants for your child. The best part about these is they don't have to be paid back. Grants and scholarships can often be applied in a number of ways. For kids to make money while they are in college some grants can cover other expenses such as housing, books, and sometimes even spending money. There are numerous places to do research for these types of aid. In fact, searching online is a great starting point. Make sure you don't pay anyone to do this because all of these sites should be free.

In addition to searching for scholarships, it makes sense to begin saving for college as well. You have many vehicles for this such as regular savings and maybe even a 529 plan. You should also consider having your child put money towards this if they are working.

Here are a few other things to consider as you navigate your teen through these teen years.

1. You are your child's example. If you want your child to make good financial decisions then you need to make sure you are making them. You have to lead by your actions and not just your words.

2. Talk about the benefits of being in good financial shape. Since you have introduced credit talk about credit rating and how that can affect every area of their life. It can affect whether or not they get the job. It can affect how much interest they pay for a house, car, or insurance. It can also keep you in a position to take advantage of financial opportunities that present themselves.

3. Don't allow your children to overwork - Although it's important to look at ways for kids to make money if they find work help them keep it in the right perspective. Work should be used to supplement school and should never interfere with their primary school work. Since most of these jobs are only temporary it's OK to let one go if your child can't handle it.

So parents if your child is in their teen years, be thankful it only happens to them once. If you plan correctly your teens will make it through unscathed and will be in a positive position to have an exciting financial future.

Credit: Nicole Clemow

Dangers Of Lacking Financial Education And Giving Value To Others

In this article, I am going to talk about the dangers of lacking financial and values education which are just as important as our school education which mainly and still focuses on theory and academic score having read and understood the books by Robert Kiyosaki like Rich Dad Poor Dad as well as watching all videos of Eben Pagan on what it takes to succeed in business, relationships, wealth, and improving all areas of life as his subscriber and customer which is in contrary to what we have been taught and conditioned to think and do by our parents, grandparents, and teachers.

Truth being said, most of us only think of making money for ourselves, families, and loved ones if we are married and have kids without understanding that in order to make money, we need to give and deliver value to others which is just as important. That also ties in with what Zig Ziglar said that you can have everything you want in life if you give enough people what they want in life. The only knowledge we have is that we have to study hard to get good grades and qualifications so that we can get great jobs with high pay in order to have our homes, marry, retire, and live happily ever after. While our parents - especially those from low and middle-income families - told us this out of concern, this sort of mentality is sadly outdated in the current 21st century. And even more so with digital technology looking to shape and change the way we live, study and work.

A rich parent - for instance, the current US President Trump - will never tell his children that. Sure at first glance, they will tell their children to respect others in public and tell them off if they are disobedient and do not behave. But behind closed doors of their homes only known to family members and maid serving them, they will share with the other things that poor and average parents will never share with their kids.

Which is while making and saving money is important, delivering value and smart investing to maximize it are just as important.

According to Eben Pagan in his YouTube videos, he said after years of studying business and wealth, he learned two critical things. One is that people do not like to give away their hard-earned money without getting any value in return. When I say value, I am not talking about anything that sales and marketing people offered them. But what people really need and want for themselves and loved ones. The second is that money has a hole in its bucket and unless you know how to earn, you will lose every dollar you spent never mind on what things.

Here is another truth of life that I discovered after my very own study and research on other articles and blog posts besides reading and watching videos by those gurus. That is money is never given or distributed evenly all the time. It is only for those who delivered the most value as in helping and making a difference to others' lives as well as those that others feel closest to. Even if it is otherwise, most people will squander on things they like short-term but are not essential long-term. Especially luxury items such as cars, condos, gadgets, and jewelry to name a few. And when they spend all their hard-earned money with little or no savings, they will usually resort to those things.

1. Taking on 1 to 2 part-time jobs on top of their main one just to be able to cope with the daily expenses and support their family.

2. Borrowing from families and friends,

3. Asking for loans from creditors, loan sharks, and banks,

4. Applying for credit cards,

5. Gambling in casinos, lottery, and sports betting

While there is nothing wrong with the first though it might put additional stress on individuals' health and well-being, there is everything wrong with the other four which I myself was guilty of in the second and fourth.

Because every time you borrowed, you needed to pay back as we Asians have a very strong ethnic and principle on it. If they are not carefully abided by, tragedies may occur. Not just on individuals who cannot pay back and lose everything but their families as in their parents, parents-in-law, spouse and children as well.

And the saddest truth is when the family is poor, the spouse has to work or take an extra job as well to bear the costs and the children will have to give up their passion, interest, and even studies just to work early to copy with the family burden costs.

For the rich, it is another story. Suppose if one or both your parents are running the company as bosses or CEOs, you will be required to help them out upon completing your studies.

Otherwise, they will be judged as "selfish and unfilial who only think of themselves, inconsiderate and uncaring about their families' well-being."

That is if they want to pursue their ambitions, interests, and passions they once have as children but are dismissed by most parents as a naive child words, play, and who are just asking them what they like to be when they grow up simply to make fun of them.

It may sound weird to you but that is the situation in my country Singapore.

This explains why most people are conditioned to study hard, work hard, save hard and retire comfortably with just one working job income they see as honest earnings.

Any income incurred outside are dismissed by baby boomers in particular - as a fraud from cheating other people of their hard-earned money which is partially true with some entrepreneurs but it is wrong to dismiss every business owner because of a few rotten eggs.

Given the fact that government supports them because they are our pioneers, very little room is given for youth development not just in terms of creativity and innovation but in terms of money and wealth management be it creation, multiplication, and preservation.

The only things they know are saving, working, and borrowing money as well as buying insurance policies from financial advisors who may or may not be acting in the interest of their clients.

Hence their ignorance, overspending, and not earning enough leads them to be over-dependence on the government to the extent of asking more and blaming the government when things are not going the way they expected and wanted. That will cause serious implications on our economy and society well-being in general be it relationships and the daily essentials of life we, our families and future generations need.

I don't mean to sound arrogant but if I am in the shoes of Minister for Education, I will make financial education compulsory as one of the main subjects. Especially when it comes to generating, growing, and saving money while still acting in the interest of others as in giving value.

Which most people need to know but in actual truth, they don't which is absolutely critical.

Except for a selected few.

Like Warren Buffet, Donald Trump, Robert Kiyosaki, and Eben Pagan I earlier mentioned.

Credit: Amuro Wesley

Stock Market For Kids - What You Need To Know To Begin Investing At A Young Age

Is the stock market for kids? Should kids really begin investing at a young age? Absolutely yes! Actually, investing when you are younger is the best time to begin, because at this point you generally don't have a lot of money to risk, and you can begin learning the ropes at a very early age, and you will achieve financial freedom very quickly.

So you are looking for some stock market for kids investing tips? Here are some great ways to help you begin learning the market now, and therefore avoid the learning curve most investors don't go through until their adult years.

First of all, here's the first stock market for kids investing tip you must know: be absolutely sure you are financially educated before you begin investing. One of the biggest causes of the market fluctuations we see today is a lack of financial education among most investors.

All too often, investors place too much faith in a financial analyst to guide them with their investments. Instead of investing in a company with the eye on long term profit, most people view the investment as a quick hit thing, a way to get in, make some quick money, and sell quickly. The world's top stock market investors don't think this way.

You see, when you are investing your money in a company, you are buying part of the business itself. If you were to buy a real business, don't you think it would probably be a good idea to look at the companies' finances and determine if it was a good investment or not?

However, for some reason most investors separate a companies' stock market price from the company itself, and think of themselves as only buying the stock price, instead of a portion of the company. When thinking this way, they will often only look at the company's stock price, and not even bother to check its' financial statements. Short tem, this can sometimes work.

However, if you want to invest in a company for its' long term profit potential (and this is what most of the world's top investors do) you need to know the companies' profitability and its' future outlook. Without this knowledge, you can never hope to make a lot of money in the market.

Congratulations! You are about to embark on an incredible journey, and at a very young age!
Most people don't begin investing their money until much later in life, making it very difficult for them to build up any significant wealth. Hopefully these stock market for kids tips will help you get on the road to financial freedom very quickly.

Credit: Josh Neumann