Making TEA
Preparing for Life: Let’s talk about your teen and money!
Wednesday, March 16, 2011
There’s always a good time to talk about money with your teens! So whether you’re...
• planning your household budget for the week/month/year
• thinking that your teen needs to understand/do more about spending, saving, and credit cards (loans and debt) with her allowance
• or realizing that one of the first conversations about college with your teen needs to be about the funds available for four years
It’s great to learn that resources exist!
Just last week I was interviewing Galia Gichon of Down to Earth Finance for my radio show College Bound & Determined, and she had some gems to share. Here are her top four points, all of which need to be discussed early and often, yet always when your child is receptive to learning (not when they-or you-are tired). (And, yes, starting these conversations in the candy or clothing store when your kids are 3, 4, or 5 years old, is completely natural, as the choices you make/how you spend you money reveals your values.)
Galia’s Gems
1. Teach basic concepts of spending, short and long term savings, and percentages; which is readily done through talking about weekly allowance
2. Be explicit about credit card use (a loan of money) and debt (do the math or show debt tables), and differentiate between credit and debit cards
3. Explain compound interest (easily tied into the conversations about dividing up allowance for the week/saving for short and long term goals)
4. Explore stocks and bonds with your teen by looking at companies known to your household (Apple, Barnes & Noble, Starbucks)
These practices are a great foundation for the conversations that will need to precede the college search. Teens must have a realistic sense of the family budget for college so they can look in all the right places. It’s also critical to understand that there are lots of options in the college search, from community colleges, to state schools, to private colleges and universities. Remember, you and your teen need to look beyond the “price tag” to understand the value of a school... and that while the effects of the economy are still challenging to many, scholarships are available and small private schools tend to give larger financial aid packages than state or larger schools. Finding the colleges that re the right fit is a perfect opportunity to partner with your teen. If you have questions, please contact me!
You can here more pearls of wisdom from Galia starting Monday, March 7, at College Bound & Determined on WebTalk Radio.
Major in You
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• planning your household budget for the week/month/year
• thinking that your teen needs to understand/do more about spending, saving, and credit cards (loans and debt) with her allowance
• or realizing that one of the first conversations about college with your teen needs to be about the funds available for four years
It’s great to learn that resources exist!
Just last week I was interviewing Galia Gichon of Down to Earth Finance for my radio show College Bound & Determined, and she had some gems to share. Here are her top four points, all of which need to be discussed early and often, yet always when your child is receptive to learning (not when they-or you-are tired). (And, yes, starting these conversations in the candy or clothing store when your kids are 3, 4, or 5 years old, is completely natural, as the choices you make/how you spend you money reveals your values.)
Galia’s Gems
1. Teach basic concepts of spending, short and long term savings, and percentages; which is readily done through talking about weekly allowance
2. Be explicit about credit card use (a loan of money) and debt (do the math or show debt tables), and differentiate between credit and debit cards
3. Explain compound interest (easily tied into the conversations about dividing up allowance for the week/saving for short and long term goals)
4. Explore stocks and bonds with your teen by looking at companies known to your household (Apple, Barnes & Noble, Starbucks)
These practices are a great foundation for the conversations that will need to precede the college search. Teens must have a realistic sense of the family budget for college so they can look in all the right places. It’s also critical to understand that there are lots of options in the college search, from community colleges, to state schools, to private colleges and universities. Remember, you and your teen need to look beyond the “price tag” to understand the value of a school... and that while the effects of the economy are still challenging to many, scholarships are available and small private schools tend to give larger financial aid packages than state or larger schools. Finding the colleges that re the right fit is a perfect opportunity to partner with your teen. If you have questions, please contact me!
You can here more pearls of wisdom from Galia starting Monday, March 7, at College Bound & Determined on WebTalk Radio.
Major in You
blog her
Friend Jill
Tweet with Jill
Listen to Jill
