Teaching Your Teens Money Management

Teaching Our ChildrenAbout “Money”,[object Object],Presented By,[object Object]

MONEY MANAGEMENT FOR YOUR KIDS ,[object Object],“Well, one way or another you develop financial habits when you are very young. And the habits you develop live with you for the rest of your life.” - Warren Buffet,[object Object],Ask yourself,[object Object],How well and how often do you work money management topics into daily conversations with your kids? ,[object Object],Do I avoid talking about money just because my kids are young? Simple lessons about money should start early in your child's life and become more complex as your child matures. ,[object Object], ,[object Object],DebtWave.com,[object Object]

MONEY MANAGEMENT FOR YOUR KIDSK THROUGH 5 IS THE TIME TO START,[object Object],We have to start somewhere! ,[object Object],The elementary years are the most important times to teach and reach children about money. ,[object Object],Why?,[object Object],There is nothing they really can’t learn.,[object Object],By kindergarten they already have experienced money in some form,[object Object],They already want stuff (and let you know about it!),[object Object],Spending habits start early and they reflect their parents by watching,[object Object],Influenced spending (What we purchase our kids at their urging).,[object Object],Advertisers and marketers target children as early as 18 months old.,[object Object],Never under estimate the credit card companies!,[object Object],DebtWave.com,[object Object]

EVERYDAY OPPORTUNITIES TO TALK TO YOUR KIDS,[object Object],Question: If we don’t take the time to use real-life situations, how will kids learn the money lessons they need as adults? I’m glad you asked!!!,[object Object],Examine your own attitudes towards money and spending,[object Object],Involve your child in the financial planning,[object Object],Give your child the option of doing odd jobs around the house (That way they don’t feel like they should get paid for every chore they do).,[object Object],Show the difference between needs and wants. (This is something even us adults struggle with).,[object Object],Talk about credit early. They need to know it is not “their” $$$.,[object Object],DebtWave.com,[object Object]

BANKING? Yes, banking!,[object Object],Teach Smart Shopping,[object Object],When your child is old enough to understand that money works in stores, start to show your child how to stretch a dollar. When you buy, be a smart shopper, and talk about the steps you take to save money. ,[object Object],Note: To benefit from this coin demonstration, your child doesn't need to know how to add or subtract, he or she will get the concept simply by seeing that some coins have been saved and can now be used for another purpose.,[object Object],Build a Four-Bank System,[object Object],[object Object],Build a bank that shows children that money is used for more than spending. ,[object Object], ,[object Object],DebtWave.com,[object Object]

SAVINGS LESSON,[object Object],Babysitting Income:$50 per week,[object Object], $10 per hour, 5 hours a week,[object Object],[object Object], Take out trash, walk the dog or clean dishes ,[object Object],Total: $65/week ,[object Object],Example: Nicole just got two new jobs! ,[object Object]

TEENS SAVING FOR THE FUTURE,[object Object],Create A Money Diary,[object Object], How are you spending your money? ,[object Object],A tool to help you achieve your financial goals,[object Object],Write Down:,[object Object],[object Object],Write Down:,[object Object],[object Object],Expenses,[object Object],Money I owe,[object Object],Money put into savings,[object Object],(paying yourself first!),[object Object],Food/snacks for school,[object Object],Starbucks Coffee,[object Object],Meals with friends,[object Object],Cell phone bill,[object Object],Movies,[object Object],Clothes,[object Object],iTunes Music,[object Object],Income,[object Object],Allowance,[object Object],Part-time job,[object Object],Debt owed to me,[object Object],Gift Money,[object Object],Part-Time Jobs:,[object Object],[object Object]

Allowance for chores Evaluate:,[object Object],[object Object]

Can you cut back on anything?DebtWave.com,[object Object]

Date your entries and see how often ,[object Object],you spend on the same items.,[object Object],My Daily Money Diary,[object Object],Mon 1/31: Snack and soda $1.50,[object Object],Tues 2/1: Cell phone bill $15 ,[object Object], text message overages $8.00,[object Object],Tues 2/1: Starbucks Coffee $3.85,[object Object],Wed 2/2: Chipotle after school $4.25,[object Object],Wed 2/2: iTunes music $6.99,[object Object],Thurs 2/3: Snack and soda $1.50,[object Object],Fri 2/4: Movie and popcorn $12.36,[object Object],Sat 2/5: Clothes from the mall $15.67,[object Object],Sat 2/5: Lunch @ food court $4.95,[object Object],Sun 2/6: New volleyball $5.00,[object Object],Sun 2/6: Lunch at the beach $5.88,[object Object],REMEMBER:,[object Object],$65/WEEK,[object Object],What Can Be Adjusted?,[object Object],Less snacks or sodas?,[object Object],Skip Starbucks?,[object Object],Less music?,[object Object],Less clothing?,[object Object],A better text message plan?,[object Object],START SAVING!,[object Object],Mon 2/7: Snack and soda $1.50,[object Object],Tues 2/8: Snack after volleyball $4.50,[object Object],Thurs 2/10: Valentines Day cards $4.59,[object Object],Thurs 2/10: Present for BFF $6.08,[object Object],Sat 2/12: Lunch after volleyball $6.54,[object Object],Mon 2/14: Happy Valentines Day!,[object Object], Starbucks Coffee $3.85,[object Object],Mon 2/14: Pizza with BFF $4.39,[object Object],TOTAL EXPENSES: $ 31.45,[object Object],AMOUNT LEFT OVER: $33.55,[object Object],TOTAL EXPENSES: $84.95,[object Object],DEBTS OWED: -$20.00,[object Object],AMOUNT LEFT OVER: -$19.95,[object Object],(Asked Mom and Dad to loan her an extra $20),[object Object],FINAL AMOUNT LEFT OVER: $13.55,[object Object],DebtWave.com,[object Object]

Can you tell the difference?,[object Object],Credit Cards DO NOT say “debit”,[object Object],Debit Cards say “debit”,[object Object],DEBIT CARDS -vs- CREDIT CARDS ,[object Object],Credit Cards are NOT linked to your checking account,[object Object],There is a credit limit b/c it’s a loan,[object Object],Both Cards:,[object Object],[object Object]

Credit card logo (Visa, Mastercard),[object Object],Debit Cards are linked to your checking account,[object Object]

TEACHING YOUR TEENS ABOUT CREDIT ,[object Object],Together, read a credit card statement. ,[object Object],Show your teen how many small purchases can add up over a month. ,[object Object],Go over the layout: account balance, APR, location of due date, minimum monthly payment and how long it would take to pay off if you only pay the minimum. Briefly go over credit limits and available credit.,[object Object],Go over important terms and conditions: annual fees, late fees, over the limit fees, cash advance fees.,[object Object],DebtWave.com,[object Object]

TYPES OF CREDIT TO TEACH,[object Object],Revolving Credit:credit cards,[object Object],Installment Credit: cars, personal loans, student loans,[object Object],Service Credit:cell phone, electricity, gas, water,[object Object],Mortgage: home, condo, land,[object Object],DebtWave.com,[object Object]

THE COST OF CREDIT CARDS,[object Object],How Did the Credit Card Companies Make $450 Billion ,[object Object],in Profits in 2009*?,[object Object],[object Object]

Teaching Your Teens Money Management

Teaching Your Teens Money Management

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