As New Yorkers bid farewell to summer on September 4th, by taking one last dip into city beaches and pools, their day of relaxation and reflection was cut short due to preparations for a familiar routine, returning back to school. As I too found small pockets to relax and reflect, a majority of Labor Day was exhausted mentally preparing myself for the upcoming fall semester, which includes the reunion between myself, the chalkboard, students, and Algebra I (Common Core). As a high school instructor, a plethora of attention is placed upon the academic and social development of students as they mature into well-adjusted adults ready for college or careers in the workforce. Additionally, attention must be paid to their emotional capacities and mental well-being. Thus for many families, watching children emotionally and mentally prepare for school is often met with mixed emotions.
Mixed emotions exhibited in parents/guardians, especially those of high school students, are from the following: excitement at the thought of your child entering a new chapter in their lives, as well as grappling with the fact that they’re one step closer to ultimately leaving the nest. Therefore, families are trying to spend every waking moments creating additional memories, while also being preoccupied thinking about collegiate and professional futures, and the costs of these futures. As a result, families in the midst of saving should also be proactive in organizing time to have conversations regarding thriving during high school and beyond. It is imperative to begin laying the foundation for their future financial well-being. In studying the fall semester courses your child will be enrolled in, you will find that these courses are not related to banking, credit, finance, or interest rates to name a few. Although mathematics is a component of finance, the concepts introduced will be complex (functions, exponents, quadratic functions, slope, systems of equations, etc.), not the elementary skills (addition, subtraction, multiplication, and division) utilized in balancing a checkbook, bank account, or paying bills. Algebra, Algebra 2/Trigonometry, and Geometry will be the source of many headaches for your children between their first and third years, thus with limited exposure to financing techniques, coupled with the level of knowledge (or lack thereof) they already possess, it is important that you, the adult, take on the role of instructor during their spare time. In an effort to not pile onto a crowded plate of academics, extracurricular activities, and maintaining a social life, start slowly by introducing your teenager, if you already haven’t, to the “Dynamic Duo” of finance, checking and savings accounts. Checking and savings are two terms that should look familiar because whether you are financially privileged to have these accounts, or are financially disadvantaged, these terms are etched into our vocabulary. Moreover, whether your teenager currently has a checking account, or will open one later, learning the basics can help to avoid pitfalls. As such, vital information that should be discussed is the relationship between checking accounts, debit cards, and purchases. Specifically, when a debit card is used as a method of payment at stores, the money paid is withdrawn from your checking account. Thus, it is imperative that account alerts are set and synced with primary email accounts so as to keep track of spending and possible overdraft fees. Remind your teenager that failure to keep an agreed upon amount in your checking account can result in monthly charges and additional costs. Because checking and savings accounts are regarded with equal esteem, the damage incurred to checking accounts is similar to that of savings accounts. When it comes to adequately saving it is a lofty goal for a majority of adults – just when you have found solid footing and have saved more than expected, life happens and the account is drained to cover damages, quick fixes, and more. Additionally, when it comes to adequately saving for teenagers, it is a thought rarely acted upon because funds are frequently minimal to non-existent. Likewise, intended usage of available funds have not been outlined. Even though a few teenagers can recall overhearing their parents discuss a 529 College Savings Plan, and overall savings plans with financial advisors and planners, again the awareness is minimal. Furthermore, formal financial training will not commence until Junior or Senior year, when a Government and Economics course will be a required class to take. Therefore, at the moment, learning is stalled. Comprehending the gravity of the situation, it is crucial for teenagers to grasp concepts early on.
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WhitneyEducation enthusiast whose mission it is to see Financial Literacy receive well-deserved shine. Archives
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