It is no secret that casual conversations about money are awkward, especially when thought of having to engage children emerges. Reflecting upon my first conversations with my parents about finance, I recall how confident, yet cautious, they were in their discussions. Candid and transparent, they even went as far as showing me their paystubs – explaining the intricacies of their paycheck regarding gross and net amounts, Medicaid, and the federal taxes withdrawn. Likewise, they articulated how funds were dispersed throughout our household. While this proved to be successful in my early comprehensions of finance, every family and their approach(es) to finance are/will be unique.
Furthermore, because it is never too early to learn coveted savings tips and tricks, financial institutions are leading the charge in providing families with opportunities to jumpstart their offspring’s journey to saving. One financial institution, for example, is Capital One. Capital One’s Kids Savings Account provides the following to customers: no minimum deposit, no monthly service charge, an annual percentage yield (APY) of .75%, and is FDIC-insured. Should this be appealing, research away! However, should one still be on the fence about introducing their child, or children, to the concepts of finance at an early age, take a look at another Wise Bread chat I participated in on May 30, 2019: Q1: At what age do you think kids should start learning about finances? WW: From the ages of 3-7, most children are learning mathematical concepts such as addition and subtraction. As a result, these years may be the prime years for identifying what coins are, and their value, as well as coin counting. #WBChat #afinlitfuture Q2: Why is teaching kids about finances important? WW: Children are a part of this capitalist system; therefore, it is important that they have an early understanding of what finance is. Moreover, I stress early learning about how banks work given that many children will accompany their families to a few! #WBChat #afinlitfuture Q3: Should financial education start at home? WW: Sure! However, let us not forget that in order for proper information to disseminated to children, the adults in their lives must have an adequate financial education. Without one, the cycle of misinformation and misinformed/misguided decisions will continue. #WBChat #afinlitfuture Q4: What are some tools parents can use to teach their kids about finance? WW: My answer mirrors many answers throughout this thread, which includes playing the board game Monopoly (which I love). Additionally, have your child utilize mason jars to store coins. Once their jars are full, assist them in deciding how they would like to save their change. #WBChat #afinlitfuture Q5: What can parents do to help their kids practice good financial decision-making? WW: Engage in healthy financial decision making so that these behaviors are ultimately mirrored by children. For example: creating, and sticking to, a budget is one of many ways for children to see how expenses are tracked and where possible financial dieting should occur. #WBChat #afinlitfuture Q6: Is it ever too late to start teaching kids about finance? WW: It is NEVER too late for anyone to learn financial techniques applicable for daily life. We (should) know the effects of capitalism and financial illiteracy (often a result of corrupt capitalism) and as educators we must ensure that our teaching are not only practical, but best fit the needs of those seeking our help. #WBChat #afinlitfuture Q7: What topics do you think high school personal finance classes should discuss? WW: Interest rates, credit (the pros and cons), investing, retirement (the various types of retirement funds as well), savings, stocks (bonds, mutual funds, etc.), taxation, and of course system economic oppression (to name a few). #WBChat #afinlitfuture Q8: Do you think college loan debt is impacting the push for improved financial education? WW: I think the recent, and continual, rise in college loan debt has heightened the need to discuss loans (both unsubsidized and unsubsidized) further as well as the effects of improper guidance as families navigate the financial aid application process. #WBChat #afinlitfuture Q9: Are there any events parents can attend to learn more about financial education for kids? WW: There are a plethora of workshops in and around New York State, which can be found on Eventbrite. I, too, personally hold a few workshops in the Bronx and would love to learn more about what other New York City educators are doing! #WBChat #afinlitfuture
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As the May temperatures increase, and the weather becomes pleasantly warmer, Seasonal Affective Disorder (SAD) dissipates. Likewise, as individuals celebrate the joyous season, many are equally celebrating an important milestone: graduation. As such, the time is upon us when tassels will be turned from right to left then athletically thrown in the air, which will signal the end of an academic era. For high school seniors, graduation will more than likely be an emotional rollercoaster as they bid farewell to the administration, friends, halls, rivals, teachers, and walls that have come to shape their adolescence for four years. Upon bidding farewell, they will prepare to say “hello” to the next chapter of their lives – college, the military, or the workforce.
For college seniors, graduation will be an equal ride of emotions as they bid farewell to the institutions, academic courses, faculty, sleepless nights, social excursions, and transformative experiences that have defined their four years of adulthood. Thus, after the ceremony has concluded, some will be taking a year (or two) off to begin their journey of self-discovery; some will begin their descent into the world of the gainfully employed; and some will still be doggedly seeking employment six months to a year after their momentous day. In examining life after college for these individuals, finding a full-time job will test their emotional and mental stamina, especially as the results pouring in become less than favorable. Moreover, as the prospect of securing part-time employment to stay afloat and begin building a nest egg increases, optimism may decrease. As result, life after college will not be what you expected. No matter your level of matriculation and plans for the next chapter of your life, advice on how to effectively navigate it all will be welcomed. More importantly, advice on how to effectively manage and maintain finances may be your single, top priority. If this is your reality, financial advice for recent graduates is abundant. An example of financial advice can be found in the form of Wise Bread’s May 22nd Twitter chat, for which I had the pleasure of participating in. Below you will find the transcript of the chat. Although finished, I welcome additional advice for recent graduates. Let us begin: Q1: What is one thing you wish you had known when you had graduated? WW: The importance of early action planning when looking to save for retirement. #WBChat Q2: For high school graduates headed to college, what should they do to prepare financially? WW: Graduates can begin doing these three things: begin saving money either earned through summer employment or gifted from family and friends; begin creating budgets so as to start tracking expenses; and start researching how to establish credit (ex: a secure credit card). #WBChat Q3: What financial moves should college grads make after they graduate? WW: Should student loan debt be a reality, be sure to talk with your loan provider about the various ways to lower monthly payments, how to make income-based repayment plans work for you, or deferment. #WBChat Q4: How can recent college grads save on housing expenses as they navigate post-college life? WW: If returning home is an option, act fast! As such, there is no shame in returning home as you prepare for the next chapter ahead. Additionally, while at home, utilize your stay as an opportunity to maximize savings. I, and so many of my family and friends, returned home after college. #WBChat Q5: What career advice do you have for recent college grads? WW: Prior to graduation, become a familiar face at your institution’s career office. Thus, if your schedule allows, attend every resume and cover letter workshop offered, as well as every interviewing workshop, too! #WBChat Q6: How can recent graduates tackle student loan debt if they have it? WW: Explore any and all repayment options available and then get started. Remember, if all you can repay is the bare minimum each month, do it without hesitation. #WBChat Q7: What can new graduates do to build an emergency fund? WW: Start small. Use an envelope, a mason jar, or shoe box (should you not have a bank account) to store $10 a week. This will serve as a starting point in the building of your emergency fund. #WBChat Q8: Should recent graduates make an effort to save for retirement? WW: Absolutely! There is no rule that says one should not start exploring retirement and savings options early. #WBChat Q9: What is your top financial tip for new graduates? WW: Treat saving with the same earnestness as you treated your academics. #WBChat Parents and guardians, stop and look at a clock or your watch. Do you notice anything peculiar about the hands? As the school bell is about toll at 8 o’clock, your watch flashes a reminder that there between 30 – 60 days until your child’s high school graduation (days vary depending on where your child attends school). As you snap back to reality, you then come to grips that with the final ring your child is slated to begin their final year of high school, specifically senior year. Roughly seventeen years ago, you were waving goodbye to them, and subsequently peeking through the window of their classroom, as they embarked on their first day of Pre-Kindergarten. Now, it appears that past feelings of anticipation, excitement, and stress have resurfaced as you help your child navigate the rough waters of senior year.
One of the cliché, yet definitive components of senior year is the development of senioritis. As defined by Merriam-Webster, senioritis is the “ebbing of motivation and effort by school seniors as evidenced by tardiness, absences, and lower grades.” Thus, as your senior’s motivation gradually wanes, it will be paramount that their family provides the necessary energy to complete pressing tasks. Such tasks will include completing college applications, completing coursework, extracurricular activities, final exams, and prom (should your child want to go). Moreover, with every ball being juggled in the air, and every task successfully crossed off “to-do” lists, prioritizing time to solidify financial literacy skills is a must! Prioritizing this time can occur during either the fall or spring semesters, or during the first, second, or third quarters depending on your child's academic calendar. Nonetheless, once you and your senior have locked in dates and times, begin preparing your lesson plan. One of the many pertinent topics of conversation can include the costs surrounding college applications and standardized testing. Because it is widely known that college application and exam fees are high, fee waivers are often viewed as a "saving grace" for low-income families. However, fee waivers are not often granted; therefore, alternative methods of payment are needed. If your child secured employment during the summer of 2018 the hope is that a portion of their earnings has been saved for moments such as this. If they were not fortunate to work a summer job, families may be incurring these costs. To avoid frantically covering the cost, the first step is to have your teen thoroughly research the various application costs as well as standardized testing deadlines. Next, because senior dues are right around the corner, begin breaking down the cost of prom, senior trip, yearbook, and other miscellaneous fees then have honest discussions about the affordability of each item. In stressing the importance of early-action planning, be sure to reiterate the importance of employment, after-school employment to be exact. With all student employment, it is crucial that potential employers allow for maximum flexibility; employers should always have your child’s academic and personal interests at the core. Moreover, if your teen previously held a summer position that was not outdoors (amusement park, summer camp, or water park for these will be closed during the fall and winter months), making a possible return should be explored. Furthermore, if your teen’s demeanor was exceptionally pleasant, performance evaluations were solid, and their work ethic was exemplary, send an email to inquire. For teens who did not participate in summer employment, there is a myriad of avenues to explore. Thus, from referrals from family and friends, to small "Help Wanted" postings, job hunting can commence. While the process can be exhaustive, utilizing technology can simplify the process. As such, whether researching at home or at a local library, search engines such as www.indeed.com, www.idealist.com, www.linkedin.com, and www.monster.com provides job seekers with a plethora of employment options that can be narrowed down to best fit your child’s needs. As you explore employment, one area to zoom in on is tutoring. With the domestic and global academic stakes higher than ever, it is imperative that North American high school student excel and thrive. Therefore, if your teenager’s mastery of core subjects is high, and they possess interpersonal skills, explore tutoring further. Tutoring positions can include but are not limited to assisting elementary school students with homework, preparing middle school students for upcoming state examinations, or helping fellow high school peers grasp difficult subjects – Geometry for example. For prospective tutors in New York City, contact organizations such as Huntington Learning Center, Kumon, and The Sylvan Learning Center to inquire about hours and pay rate. Moreover, research private tutoring options, which will allow your teen to not only set up their own work schedules and pay rate but will allow them to develop self-sufficiency skills. Additionally, through frequent positive word-of-mouth referrals, a steady clientele will be developed. With a bevy of options to explore, it is now time for your teenager to create, or polish, their résumés. To all the soon-to-be high school graduates, it is my fervent wish that all of your academic, personal, and professional feats have been achieved. Moreover, it is my additional hope that balancing academics, afterschool employment, extracurricular activities, and homemade financial literacy lessons have not left you emotionally, mentally, and physically empty. All things considered; every last achievement thus far deserves a round of applause! It is the second week of Financial Literacy Month 2019 as the content released continues to be abundant, I hope that the lessons, tips, and tricks provided will (hopefully) be impactful. One of the goals I hope that readers take away from this month is that goal-setting is a key step in becoming monetarily savvy this year. Thus, when creating financial goals, it may help to have a balance of lofty, long-term goals and small, short-term goals.
Moreover, when looking to implement financial goal-setting practices into your routine, one place to start is by identifying where you currently are financially. As such, identifying your current fiscal circumstance can include the following: admitting that your literacy about budgeting, investing, and retirement is low, assessing how much is spent monthly, and thoroughly reviewing current money habits in place. Thus, in exploring current money habits further, let us revisit last Wednesday’s Financial Fitness Twitter Chat hosted by Winnie Sun. An informative chat, each question centered on analyzing childhood fiscal practices that may have been carried into adulthood as well as understanding the root cause(s) of one’s inability to save. In the end, the process was cathartic, and the answers delivered were insightful. View my responses below and feel free to contribute to the conversation: Q1: Let’s Meet! Who are you, what do you do, what was the last thing you spent money on and was it planned or an impulse purchase? WW: An hour to the late to the party, but I am ready to have fun nonetheless! To start, I am Whitney from the Empire State (New York City), and the last thing I spent money on was @MeekMill's Motivation Tour tickets. A last-minute impulsive buy, but oh so worth it! #WinnieSun Q2: Define this: What does financial freedom mean to you? WW: Financial freedom equals having multiple options at your disposal. Moreover, it means comfortably weighing decisions and knowing that once purchases have been made, there is no worry about potential damaging long-term effects. #WinnieSun Q3: The hard truth about money. Why do you think so many people are ill-prepared for financial emergencies, and important needs such as retirement, and paying for college? WW: A large percentage of people lack access and resources to financial education. Far too often in my work, adults lack financial preparedness, which hinders a myriad of things. However, by starting the conversation and education early, we can improve financial literacy. #WinnieSun Q4: Have you ever had a financial wakeup call? What was it and how did you take action? WW: My wakeup call was recent: I had become too prone to call a cab versus taking public transportation, which resulted in my account dwindling. I put myself on a financial diet and have been slowly cutting cabs from my routine. #WinnieSun Q5: Talking about money is so taboo. Why do you think there is such a stigma about money and what can we do to rectify it? Who do you talk to about your finances? (professionally or casually). WW: Often income and money is tied to class and classism, and we are all too aware of how stigmatizing socioeconomic status is. For individuals whose money is scarce, it is hard to articulate that and to have the proper conversations to identify the root(s) of the problem. #WinnieSun Q6: Your money education. Who taught you your best financial habit? Did you learn from communication, an experience, @YouTube, a class? WW: My father. My father was a mathematics major in college, so my love for numbers is inherited from him. Additionally, he is a wiz at budgeting, investing, and more, so I am fortunate to have one of the best to educate me. #WinnieSun Q7: Show me the money! What role does money play in your life and how has your relationship with money evolved? WW: Money plays an ever-present role in my life for it is tied to my daily interactions. Whether it is paying student loan debt, or making purchases, having to utilize money exists! Moreover, I am proud to say that our relationship (money and myself) has matured for the better! #WinnieSun Q8: Agree or disagree and why: health is wealth? WW: Agree! There is a strong correlation between economics and healthcare, and there is an equally strong correlation between a lack of access to adequate healthcare and poor health. Additionally, we have all witnessed, in some capacity, stories of exorbitant health bills and the struggles to pay them off. #WinnieSun Q9: The fear of the unknown. If you were feeling insecure about your finances what steps should you take to help you feel more in control? WW: If I tried to fix my finances to no avail, I would seek help. Specifically, I would research articles and additional materials that could help me regain control of my financial life. #WinnieSun Q10: Is enough, enough? Is the goalpost always moving? Is there an amount of money that would make you feel like you had “enough money”? How has this changed over the years? WW: While I have no definitive amount, I know what “enough” feels like, and it feels like comfort. It feels like making extravagant purchases without the fear of how I would survive the upcoming months. #WinnieSun Q11: Does the perfect money tool exist? If you could create the perfect app or tool to help you with your money, what would it look like and what would it do? WW: My perfect app would incorporate Excel spreadsheets and a digital workbook. #WinnieSun Q12: What financial blogs, podcasts, or content creators do you enjoy? Tag them. WW: Outside of my own work, I enjoy anything from Broke Millennial, The Consumer Finance Protection Bureau, Council for Economic Education, Dr. Barbara O’Neill , and more! #WinnieSun Q13: What’s your worth? How do you quantify your financial value as it pertains to your employer, your company, and other businesses or clients you work with? WW: I am still learning how to quantify my worth. While I can assess the quality of my work, I often struggle with defining the dollar amount. #WinnieSun Q14: It takes a village. How do you think your environment affects your attitude towards money? How do your financial decisions now align with your values and life goals for the future? WW: My village is comprised of fellow financial literacy educators and those learning how to improve their financial lives. It is a healthy balance of sharing ideas and holding each other accountable. #WinnieSun Q15: How important would you say investing is for the future to stay ahead of taxes and inflation? How informed do you feel you are about the different options and saving vehicles out there? WW: Investing is very important to my future, even though I have not allotted serious time to it. Although my time has been scarce, I feel as if I have a solid understanding of the various investment options available to me. #WinnieSun |
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