7 Days to Raising a Money Smart Teen
2023,NEW BOOK 📚
your teens are still young, both in their view of the world as a whole and
their understanding of the concepts of money. Remember, they are still
teenagers and they may not fully grasp the concepts or the importance
of the information you will be teaching them. It may take several
attempts by you teaching them or by them reading this special report
before they begin to grasp the concept of money.
Since they know and trust you they’ll be more likely to be open to
learning these concepts and once they do they will have a concrete
foundation for the rest of their lives. Also, by teaching them these
strategies, you are opening up an entire new world for them and may
even be helping them on their path to their destiny in life.
I hope you’ll enjoy my special report, 7 Days to Raising Money Smart
Teens.
To your success and your teenager’s success,
How to Use This Special Report
This report is broken down into seven individual sections so you can
slowly introduce the concepts of money to your teenager over a
period of seven days. Each section is written so I will only take a few
moments each day to introduce and discuss the vital information in
each section.
Believe it or not, teenagers of today have stressful and hectic lives
when compared to the days when we grew up. The challenges of
balancing an ever increasing daily load of school work, the
importance of having a complete social network of friends both at
school and online and the availability of constant contact with friends
via instant messages, email, cell phones and more is simply daunting.
Here is an overview of the information included in this report:
Day 1: Set a Good Example – This first section was written for the parent
in mind. You will learn invaluable insight for setting a good personal
finance example for your teenager.
Day 2: Goal Setting Strategies for Your Teenager – Your teenager will
learn how to create and set personal goals that are important to them.
Day 3: Prioritize the Goals Set Yesterday – During day three your
teenager will learn how to prioritize goals based upon personal needs
and personal wants.
Day 4: Make Savings a Priority – Your teenager will learn the
importance of not spending every single dime that is given to them or
earned as an allowance.
Day 5: The Real Cost of Credit and Credit Cards – This section will teach
your teenager how to avoid the lure of easy credit and understand the
real cost of using credit and credit cards.
Day 6: Teach Savvy Online Shopping Skills – Once learned, these savvy
shopping techniques will benefit your teenager forever.
Day 7: Importance of Taxes – Your teenager will understand how taxes
impact their money.
Day 1: Set a Good Example
When should you start teaching your kids about money? The answer to
this question may surprise you. I believe no matter what age your kids
are, you are already teaching them skills and habits regarding money.
Although our kids may not fully understand the concept of money
while they are in the stroller, they closely watch our every emotion and
study our behavior. They learn from our actions and our tone of voice.
They learn from our attitude and our sincerity.
As they age, they over hear our conversations and they experience
some of our frustrations and enjoyment about money. Although you
may not be fully aware of it, kids experience almost the same emotions
you do regarding money. Let me explain.
For example, while planning the family vacation, you may be talking
about what you are going to be doing with your kids. Your voice
sparkles with excitement and your body language is animated. You
and your spouse are talking about walking on the beach, riding the
roller coasters or having dinner with Mickey Mouse.
Your kids hear how great it is going to be spending 7 days away from
home and forgetting all of the hassles of work. Maybe they don’t fully
understand the concept of having to pay for the vacation, but they
know they are going to have a great time with their family.
On the other hand, when you are paying the monthly bills you are
probably expressing different types of emotions. Your voice is probably
monotype and your body is unanimated. You may be experiencing the
emotions of stress, frustration or anger. These types of emotions are
diametrically opposite to the type of emotions you express while
planning the family vacation. Although your kids may not fully
understand why mom or dad is grumpy at the end of the month, they
know it happens every month and somehow money is the cause of this
monthly ritual.
In any event, your kids are probably experiencing the same type of
emotions as you, either positive or negative. They are “feeling” these
emotions, because these emotions are being projected by you to
them.
As you know, at least once in your life you have experienced the
“feelings” of another person. For example, you may have been talking
with a co-worker or your spouse and your subconscious picked up the
fact the person you were talking to was irritated or extremely excited.
They didn’t have to tell you how they felt in words you just had a
“feeling” of the type of mood they were in. In many cases, your
intuition turned out to be accurate.
So not only do you to teach your kids the “nuts and bolts” of money
such as budgeting, investing and savings, you also need to teach them
how to feel about money. Here is an example of what I mean.
Open your purse or your wallet and pull out a $1 dollar bill, a $5 dollar
bill and a $10 dollar bill. Next, remove some of the change in your
wallet or purse and lay it out on the table in front of you. Now what do
you see?
If you are like majority of the people, you will say the something similar
to the following:
“I see a $1 dollar bill, a $5 dollar bill and a $10 dollar bill. I also see a
dime, a penny and a quarter.”
If that was you answer you are 50% correct. Let me example?
When you really look at it, money is only pieces of paper and metal
disks. It is not money itself that makes it valuable, it is what money can
buy is what gives it value. That is why your answer would only be 50%
correct, because money allows you the freedom to live the lifestyle you
want to live. Money allows you to buy the things you want. Money
allows you to experience more of life like taking your family to Disney
World and have dinner with Mickey Mouse. I’m sure you don’t want
huge stacks of paper and coins for the stake of having a huge stack of
paper; you want that new car or the 4 years of college for your
daughter.
Thus, the most important step in teaching your kids about money is not
teaching them the difference between and $5 dollar bill and $10 dollar
bill, but teaching them the value of money. I know this approach to
money education is a completely different to what most books teach,
but once your teenagers understand the “value of money”, they will
grasp the importance of money for the rest of their lives.
Day 2: Goal Setting Strategies for Your Teenager
Goal setting is the first step to help your kids understand the value of
money. Goal setting exercises usually work better with kids starting
around the age of 10. The younger ages may not fully comprehend
thinking past the immediate moment, so around age 10 is a good time
to start talking with your kids about setting goals.
Also, goals for a 10 year old are different than goals for a 30 year old,
so when you child tells you something they would like to be, do or have
something simply write it down on the goals worksheet include below.
I created a goals worksheet for you to use. The one on the next page is
for example purposes only. I have included several different types of
goals worksheets you can print off on your printer in the resource
chapter of this book.
Here is an overview of the breakdown of information included on the
goals worksheet:
- Your child’s name: By seeing their name on the goals worksheet,
your child will begin to realize they own the goal. Why do you
write your child’s name of every piece of clothing they own? The
reason is two-fold. The first is so the day care provider or the
school teacher is able to make sure the specific clothes (hat,
gloves, coat, etc.) belong with the right child. The second reason
is as your child grows and they see their name on a hat for
example, this means it belongs to them and if it belongs to them,
they will be less likely to lose it.
- I want: The “I want” line is a written description of what your child
wants. Although you can write it down, it would be better if your
child wrote it in their own handwriting. If they write it, the goal
becomes something they feel they can truly relate to and
something they feel they own.
- Because: This is the “why” behind the goal for your child. You will
some find this section will have many different reasons for the
goal. Here are a few example of I have seen written into these
section:
o Because: all of the my friends have a new bike and I want to
new bike
o Because: I want to ride my new bike to school
o Because: my old bike is blue and I want a new bike with
flames
- I will earn my goal by. This is only section of the worksheet you can
offer some guidance and assistance. You would want to make
the achievement of the goal far enough in the future so your
child can work for the attainment of the goal, yet not to far they
may become discouraged. For kids 10-12, a 2 -3 week time period
is usually long enough. For teenagers 13-16 up to a few months is
usually the maximum length of time for goal achievement. 17+
years of age, 6 months would be a good length of time.
- Your child’s signature and your signature. This is where both you
and your child would sign or print each of your names in your own
handwriting. By having your child sign or print their name on the
worksheet, they begin to take ownership of the goal. Again,
during younger years, if an article of clothing, school work of
goals worksheet has a child’s name on it, the child will realize they
are responsible for what it is they have their name on.
Day 3: Prioritize the Goals Set Yesterday
If your teenager has several goals from yesterday, it’s time to put these
goals in order. Prioritizing their goals will help them determine what they
really want most. Write down and prioritize the goals your teenager
wrote yesterday:
1. ________________________________________________________
2. ________________________________________________________
3. ________________________________________________________
4. ________________________________________________________
Once you have helped them to prioritize their list, create a goal’s
worksheet for them. At first, don’t let them have more than one or two
goals they want to accomplish. This may only discourage them and
may be a detriment to future goal setting. At this stage, it is more
important for them to enjoy of the feelings of goal accomplishment
rather than having a huge goal and getting discouraged.
Although it may be hard at first, try to fight what every parent naturally
does. That is to tell your teenager they should aim always higher or
achieve an extremely hard goal in a shorter time frame. Yes, we all
want our teenagers to best the best they can be, however, if you tell
them what their goal should be, who’s goal does it become, yours or
your teenagers?
In addition, once they create a goal you can always support them to
achieve their goal faster or help them accomplish more than they
thought they could, both of these would provide a positive outcome.
The reason I am suggesting that you help your child to set a goal is
because you are helping them to learn the “why” they are doing choirs
around the house. Remember it is very easy for most 13 years old to be
distracted when a task becomes too long or too difficult. Having a
written goal on the refrigerator is a good way to keep the goal in front
of your teenager.
So the first time your child complains about having to do the dishes,
instead of fighting with them or demanding they do the dishes, you
can now say, “Seth, remember the new bike you wanted? The black
bike with the red flame painted on the side. After you do all of your
choirs this week you have another $5 in your saving bank. This means
after earning another $5 next week you will be able to buy the bike you
want.” You child will relate the weekly choirs to getting the bike he
want. Also, if he doesn’t do his choirs, he can’t get the bike he wants.
He will have to watch all of this friends ride their bikes, since he doesn’t
have one. If properly used, peer pressure can be a very positive
motivator.
Day 4: Make Savings a Priority
Living a world of instant gratification can make the task of saving
money can a real challenge for some teens. However, saving a portion
of your income is vital not only to an enjoyable future by a financially
secure, too. In addition, saving money develops and encourages
pragmatic thinking habits and skills.
For example, we recently purchased a WII for our family. This is an
excellent gaming unit that encourages physical movement, hand-eye
coordination and mental sharpness. Of course, when we purchased
the gaming unit, we also purchased a few additional games to enjoy.
During a recent visit to the local shopping mall we visited a video game
store. You also have these types of stores by your home, it is a place
where you can buy video and computer games for all types of gaming
units. Since we just purchased the WII, we weren’t in the market for any
more games. However, since we were in the shopping mall we
stopped in to see what new games where on the shelves. Of course,
my son found a game he wanted and asked to buy it, but since we are
helping him to develop his saving skills and teaching him the
importance of goal setting, here is how I handled the situation:
I said: “Yes, that is a very cool game and I know you would enjoy it, but
why do you want it?”
My son replied: “Because it is a very cool game and a lot of my friends
have it.”
I said: “If I buy this for you today, how would you pay it back?”
My son replied: “I would pay for it with the money in my piggy bank.”
I said: “Remember your goal of savings for a lap top computer. If you
buy this game you won’t be able to buy your lap top computer.”
- You see, my son had been working hard to save up to buy a
laptop computer. The laptop he wanted was an incredibly low
price of $299.00 from a local computer store. My wife and I told
him that if he earned $150 by doing his choirs, we would pay the
remaining $150 and buy him the computer. In addition, to having
$45 in his piggy bank from doing his choirs, each of his
grandparents gave him a $50 bill for his recent birthday. So all in
all, he had $145 tucked away in his piggy. He would earn the
remaining money within the coming week. It is amazing how
grandparents are more than willing to help out when you tell
them how your teenager is saving up for a worthwhile goal. ☺
My son thought about it for a few seconds and finally said, “You’re
right, I want the laptop computer.” I didn’t have to argue with him or
get mad at him, I simply reminded him of his goal of a laptop
computer.
So the best way to make savings a priority is to help them set realistic
goals and remind them of those worthwhile goals whenever they want
to buy something on the spur of the moment. Also there may be times
when your teenage decides to buy something on the spur of the
moment, don’t stop them. Let them make some minor mistakes. They
will learn very fast when they realize that buying those new $50
sunglasses, when they already own 10 pairs, just prevented them from
getting the new personal laptop computer for another two weeks.
By allowing them to make their own decisions, and yes mistakes, with
money you will be amazed how fast they will learn that money is
something to respect and understand rather than take for granted or
waste.
Day 5: The Real Cost of Credit and Credit Cards
Your teen must start learning about credit before arriving at college
and finding a mailbox filled with credit card offers. He or she needs to
know how credit cards work and understand that late or unpaid credit
card bills can affect the ability to buy a house or car in the future. In
addition, you need to explain that buying “stuff” on credit may also
require your teenager to pay for this one purchase for years to come,
thus affecting their future ability to enjoy life to the fullest. Many
teenagers don’t realize the $25 dinner they put on a credit card some
becomes a $100 dinner with interest. Here is a simple worksheet to show
your teenage the devastating effects of carrying a credit card
balance. For the purpose of this book, we will use simple interest rather
than compound interest and a compressed time period.
In addition, the example below is only for example purposes and
doesn’t represent how interest is actually calculated and charged by
credit card companies on outstanding purchases. A full and complete
explain of the calculation procedures used by credit card companies is
far too complex for the subject matter of this special report. If you want
to fully understand how interest is calculated and added to
outstanding balances, please consult your credit card statement and
contact your credit card company and ask them to fully explain how
interested is calculated and credited to outstanding credit card
balances. The following example is by no means an actual example or
explanation of interest calculation by credit card companies. It used
simple interest and if for example purposes only. THIS DOES NOT
REPRESENT ACTUAL INTEREST CALCULATION IN ANY WAY.
Day 6: Teach Savvy Online Shopping Skills
As you know, the Internet offers much more than Myspace, Facebook
and other online destinations. It offers unlimited opportunity for
valuable knowledge and information to improve our individual lives.
Here are some vital tips in teaching your teenager the importance of
shopping online:
- Comparison shop only at well-known and teenager friendly
Internet stores. Most teenagers may not fully grasp what Internet
technology can do such as “cookies”, tracking software and
more. That is why having parental controls on the Internet is vital
to ensure the Internet is being used the way you as a parent
wants it to be to used. That is why teaching your teenagers to
Proper product comparison. During comparison shopping, teach
your teenagers to read the “small print”. These are the exact
details of the products. For example, if your teenager is
comparing a Wii from two different websites, teach them to look
at shipping options, product features, model numbers, etc.
Although one site by be offering a new Wii for $100 less than the
other site, is it make it a better deal? Probably not, since the lower
priced Wii at the second online store may not include shipping
and the product offered is an older model.
- Don’t enter personal information or join email lists. Teach your
teenager not to enter personal information or give an email
address if they are only surfing or comparison shopping.
- Enter here any other information you have learned to keep you
teenagers safe while online and while they comparison shopping.
Also, if you believe your child is spending too much money on frivolous
things, have him or her create an expense log showing exactly where
the money is going. Your teenager may not even realize how much
money is being spent on snacks, entertainment, and other activities.
This can help put spending habits into perspective and inspire your
teen to change his or her ways. Keeping a 3-ring binder or an Excel
spreadsheet is the best way to help them keep the vital expense
information.
Day 7: Importance of Taxes
Taxes are an important part of growing up. Although we all complain
about paying taxes, taxes are a vital component of a strong country. I
firmly believe in paying my fair share of taxes, because I know it keeps
our country safe and strong. However, I also believe in taking full
advantage of every legal opportunity as granted by the government
to minimize my tax liability. So by teaching teenagers what the taxes
pay is the first step in teaching them about taxes.
Many young workers don’t understand the role taxes play in our
country and our government. We need to explain the taxes taken from
our pay checks go to pay fire firefighters, repair roads, support our
military, pay our congressional representatives and more. In fact, taxes
are vital component to a strong country and a successful society.
So by relating taxes to paying for the requirements of our country, I
have found this is the best way to introduce the complex subject of
taxes to your teenager.
Teenagers probably get their first introduction into the world of taxes
when they discover their first paycheck was less than expected, thanks
to income tax deductions. CPAs say it’s important to be sure your child
understands the responsibilities for paying taxes and, if required, filing
tax returns. Here are a few ideas to teach your teenagers about the
importance of taxes:
Have a meeting with your CPA, tax advisor or tax attorney. One
of the best ways to introduce your teenager to the subject of
taxes is to sit down with your CPA or tax advisor. This approach
shows the importance of taxes and how it affects earnings and
investments.
- Explain to your teenager what services income taxes provide to
our country. For example, the next time you are stuck in road
construction while your teenager is in the car, remind them the
taxes taken from their pay check is paying to improve the
condition of the roads for the better meant of the country.
By relating real-life situations to the abstract concept of paying taxes,
your teenager will better understand “why” taxes are taken from their
pay check.
THE END!
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