If you’ve been entrusted to assist an elderly relative with scheduling preventive exams and putting a health care plan in place, you may struggle with knowing when it’s time to take on a greater role in other aspects of their life. That’s why now is the perfect time to look for warning signs that your loved ones might be suffering from a decline in financial ability. Learn more by reading the full article here.
When it comes to economics, many teens’ mouths write checks their knowledge can’t cash. Help influence the financial literacy of a teen in your life with these practical money-management tips.
5 Financial Tips for Teens
(Family Features) When it comes to economics, many teens’ mouths write checks their knowledge can’t cash.
While 93% of American teens say they know how the economy works, 29% have had no economic schooling, according to a survey of 1,000 U.S. teens ages 13-18 by Wakefield Research on behalf of Junior Achievement and the Charles Koch Foundation. Even in light of their false confidence, teens are aware of the importance of financial education.
Although the study identified numerous gaps in economic and financial knowledge, it also showed teens do know where to look for credible information. Two-thirds (67%) recognize they should use their school as a resource.
“One of the things we hear often is that some textbooks are written too academically for most students to understand the concepts,” said Jack E. Kosakowski, president and CEO of Junior Achievement USA. “Our programs, which work as a complement to the school curriculum, are written from the perspective of today’s teens and use digital content to help bring economic concepts to life for students.”
Beyond the classroom, another 63% of students believe they should use their parents as resources for economics education. Help influence the financial literacy of a teen in your life with these practical money-management tips adapted from the curriculum.
Set goals. Managing your money is more meaningful when you’re doing it with purpose. This might mean budgeting to ensure you have enough money to maintain your auto insurance and keep gas in your car, or you may be saving for a big senior trip. Knowing what you want to achieve with your money can help you plan how you spend it more wisely.
Weigh needs vs. wants. When you begin making your own money, it’s easier to indulge your own wishes and spend money on things you don’t necessarily need. To some extent, that’s not a bad thing; rewarding yourself is fine when you do so within reason. That means not exceeding your available funds, and not forsaking things you truly need, like gas money to get to and from a job or school.
Get a debit card. Most people find that having cash on hand makes it easier to spend. If you use a debit card instead, you’re an extra step away from spending so you have a little more time to consider your purchase. Another benefit of a debit card is it helps track your purchases in real time so you can keep constant tabs on your balance and ensure you don’t overdraft your account.
Start a savings habit. Even if your income doesn’t allow for much, it’s a good idea to get in the habit of setting aside a portion of each check. It may only be $10, but over time each $10 deposit can build your account toward a long-range goal.
Protect your privacy. Teens who’ve grown up in the digital age tend to be less skeptical and cautious about privacy matters than their elder counterparts. It’s important that young people understand the potential impact of failing to protect their privacy when it comes to financial matters, including the possibility that their identities could be stolen and all of their money siphoned away. Teaching kids about security is an essential lesson in economics.
Visit ja.org for more tips and information to help raise your teen’s financial literacy.
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For many young adults, heavy debt and lower-paying jobs lead to a delay in traditional life goals like buying homes and starting families. However, research suggests that Millennials’ financial worries are adding up to more than stress and disappointment, particularly once they become parents.
Millennial Parents Struggle with High Cost of Living
Better money management today can lead to brighter financial future
Two in five young parents rate their financial health as unsatisfactory and 40 percent said financial stress is putting a strain on their relationship, according to a survey from the National Endowment for Financial Education and Parents Magazine. More than half of millennial parents concede they would surrender a year of their life to have more financial security.
"Being a parent takes patience, forgiveness and a lot of silent counts to 10, but it also takes a lot of money," said Paul Golden, director of Smart About Money, a nonprofit foundation inspiring educated financial decision-making for individuals and families through every stage of life. "Many young adults start off with significant student loan debt. When you add housing, groceries, utilities, transportation expenses and health care costs, the strain increases, and oftentimes the math in the household budget doesn't add up."
The price tag of raising a child is more than $304,000 based on the projected inflation-adjusted cost of rearing a child until age 18, not counting college. Managing that financial pressure begins with planning for the future and truly understanding the costs associated with adding a baby to the family or buying a new home, Golden added.
"Regularly paying attention to your money and practicing major life transitions before they happen is an important step toward achieving financial health," he said.
As a parent, you have many financial responsibilities to balance, but planning for the future can help prevent unforeseen expenses from tipping your scales.
Debt reduction. Make a plan to pay off excessive debt, particularly credit cards. Tackle your lowest balance first to gain momentum then take on the next smallest. Additionally, pay attention to higher interest rates that are costing you a lot of money.
Use a budget. Get a budget and spending plan in place to keep track of your expenses. Try an envelope system with monthly allowances for groceries, entertainment, utilities, etc.
Start saving. Build an emergency fund. Aim for a small, achievable goal as low as $500 then set the bar higher. Participate in your employer-sponsored savings program to boost retirement savings, especially if there is a match. Make it an automatic payroll deduction and increase it when your paycheck goes up. As far as your child's college savings, save what you can, when you can. Every little bit will help when education bills come due.
Child care. Consider establishing a flexible spending account if one is offered by your employer. Parents can use pretax dollars to pay up to $5,000 in child care expenses in most states.
Review insurance and important paperwork. Create a will either by using an online program or hiring a professional to name your child's guardian, and designate at what age any payouts, savings or investments will be distributed. With health insurance, notify your employer within 30 days of the birth to ensure that the child is eligible for any dependent benefits. Purchase appropriate health care coverage to protect your family. Review your employer's life insurance plan and determine if it is adequate for your needs. If not, consider purchasing additional life insurance.
Save for the future. Put money for short-term expenses (1-5 years) in safe investments, such as savings accounts and certificates of deposit. These low-interest-rate investments will not grow dramatically, but they will not lose money, either. Money you will need beyond five years should have the opportunity to grow at a risk level you are comfortable with. Use a combination of steady-earning savings accounts and more volatile stock and bond mutual funds to help protect you against long-term losses.
Get started with these tips and learn more through self-directed courses at SmartAboutMoney.org.
How Much Does Having a Baby Cost?Along with preparing for the costs of clothes, furniture and baby items, take time to review your health care and employer benefits and policies relating to time off work.
Spread the costs.
Know what's covered.
Account for time off work.
Photo courtesy of Getty ImagesSOURCE:
National Endowment for Financial Education
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