It seems to me that the words “teens” and “savings” are on opposite ends of the spectrum. Well at least with my kids. In a time when there is easy access to just about everything and endless marketing messages, saving is the last thing kids are thinking about. The other side of the coin is that kids technically don’t really need to save for anything because many kids get whatever they want from doting parents (I’m talking to myself here too). Work, sacrifice, and waiting seem like foreign concepts. I’m not bashing teens, but rather bringing to light the barriers to savings they seem to have.
Empowering Teens to Get Into the Savings Habit
Getting in the habit of saving is not something I’ve pushed very hard. That said, I want my kids to learn responsibility with money so I’ve done a few things to help them see the importance of saving. My problem is that I love giving them awesome things no matter how large or small. I love surprising them and seeing their faces light up. I almost think it is an addiction. But I’m recovering because I see that giving to them all the time instead of letting them earn and save for what they want does not warrant gratitude. That is what I really want them learn; how to be thankful and appreciative of what they get.
Lessons I’ll Use to Empower My Teens to Save
So my lesson begins in teaching them how to save. I read an article on the Regions Bank website about this very topic. They offered great feedback that I’m sure I can begin implementing. They offer five tips to encourage teens to save money.
Develop a Savings Habit
Use Online Tools
Differentiate Between Needs, Wants, and Wishes
Establish a Financial Game Plan Together
Keep a Record of Spending and Savingoffer begin implementing.They offered great feedback article on REhat they get.
and save for what they want does not wa
Encourage the Savings Habit
When my kids get birthday or holiday money it’s tempting to spend it all in one place. My 14-year-old son just wants food and games at this stage in life. As long as he has food and a bed he’s pretty happy. Recently he’s been talking about doing paintball for his birthday so he said he wants to save for that. My daughter wanted an iPad when she turned 15. I made a deal with her to save her birthday money and any other money she made to pay half for the device. She agreed and kept up her end of the bargain. I paid the other half and insurance. She still holds on to her precious iPad today even though she complains that it’s a bit outdated. She will always remember saving for what she wanted.
Online Banking
I’m big about banking online and being connected. I use tools like my bank app and Mint.com. My daughter is connected to our bank and can check her account balance when she needs the information. She can also see her savings account amount. I’ll have to set up an account for my son on my account and start letting him use his card and track his expenses. This is a good habit to start.
What they Want vs What they Need
Paintball is definitely a want for my son. Like I said before, he is all about playing games. He hasn’t hit the “gotta look good for the ladies” stage just yet. So buying clothes, shoes, and cologne is not a top priority. He’s not into designer sneakers so that has saved my budget. He loves getting new shoes when I get them but doesn’t make a big deal out of it.
My daughter on the other hand loves new clothes, make-up, and electronics. She wants them but is still working on making the most of her current wardrobe. She has had a wakeup call recently since she drives her own car now. Clearly she feels the need for gas, maintenance, and registration fees. She feels the pain each time she goes to the gas pump so her trips are few and far between; even to the mall. She has said she needs to save her money for when she goes to college and needs gas money. Savings for her will be kind of forced after all.
Planning for Their Financial Future
As they grow and their needs change in the process, we will need to talk about their financial future. My desire is for them to learn about business and entrepreneurship. They have it in them to use their creativity to provide a product or service. My daughter has dreams of being a private pilot. It will require a pretty large chunk of money to go through the final classes and do her test flight.
In the long term they have goals of finishing school and training for their profession. We will plan to sit down and discuss those goals and come up with a financial game plan.
Recording their Financial Activities
When I grew up I learned the basics of how to track my income and expenses using pen and paper. A simple ledger was enough to keep up with my allowance and payments for my small business. Today there are several options for recording financial activity. As part of my son’s curriculum he will learn how to record income and expenses using a simple spreadsheet system. It will be a great start and help him sharpen his math and critical thinking skills.
Empowering my teens to save and manage their money is a good first step to empowering them through life. They will feel in control of their finances and be able to make good choices throughout their lives.
This post was sponsored in part by Regions Bank. The content and opinions are my own.
Images by StockImages, suphakit73, and adamr at freedigitalphotos.net
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
I’ve heard of and know a few people who have had their identity stolen as children. It’s mostly family members who where the culprit. Please do not use your children’s identity to open accounts for any reason. They deserve a financial future that hasn’t been ruined by you or any of your family members.
By Jason Alderman
I’m sorry to report that child identity fraud is alive and well in 2014. If anything, the problem may be worsening as identity thieves devise new methods to steal – and use – children’s personal information. Most commonly, they’ll harvest kids’ dormant Social Security numbers (SSNs) and use them to illegally obtain jobs or open fraudulent bank and credit accounts, mortgages or car loans.
Many victims don’t realize there’s a problem until they later apply for a student loan, bank account, job or apartment and are turned down because of the poor credit history someone else racked up. Some families are even hounded by collection agencies or arrested because the debts or criminal activities were so extreme.
There are no completely foolproof methods to protect your children’s identities, but here are some precautions you can take:
While it’s tempting to simply not register your kids for SSNs until they turn 18, that’s not practical in today’s world. For one thing, they’ll need one to be claimed as dependents on your taxes. You may also need SSNs for your kids to obtain medical coverage or government services or to open bank accounts in their names.
Because each person’s SSN is unique, it’s not uncommon for schools, healthcare providers, insurance companies, banks and others to require them as ID. However, don’t be afraid to ask:
Why do they need to use an SSN – is there a legal requirement?
Will they accept alternative identification?
What will happen if you don’t disclose it?
What security precautions do they take with personal information?
Will they agree not to use the SSN as your child’s personal identification number on correspondence, account statements or ID cards?
Watch for these clues your child’s personal data may have been compromised:
They receive preapproved credit account offers.
They receive calls or billing statements from collection agencies, creditors or government agencies.
You’re unable to open a bank account in their name because one already exists with the same SSN.
They’re denied credit, employment, a driver’s license or college enrollment for unknown or credit-related reasons.
Remember, there could be legitimate reasons why your child is receiving credit offers. For example, it could be a marketing outreach from an affiliate of your bank or because you opened a college fund in their name.
If you strongly suspect or have evidence that identity theft has been committed, you can:
File a police report and keep a copy as proof of the crime.
Notify the Federal Trade Commission (877-438-4338), whose Identity Theft site contains information on fraud alerts, credit freezes, how to work with police and much more (www.ftc.gov).
Ask Social Security (800-772-1213) whether anyone has reported income using your child’s SSN. Search “Identity Theft” at www.ssa.gov for information.
Contact the IRS’ Identity Protection Unit (800-980-4490).
The FTC recommends contacting the three credit bureaus around your child’s 16th birthday to see whether they have credit reports on file. (There usually wouldn’t be unless they’re an authorized user on one of your accounts.) If there is a report – and it has errors due to fraud or misuse – you’ll have time to correct it before you kid needs to use credit.
Warn your kids about the dangers of revealing personal information by phone, email, or social networking. Don’t hesitate to monitor their accounts and install parental blocking software. And remember, if they share your computer, a downloaded virus could infect your accounts as well.
Jason Alderman directs Visa’s financial education programs. To Follow Jason Alderman on Twitter: www.twitter.com/PracticalMoney.
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
Divorce is tough. Dealing with the fallout of kids, housing, and money issues is even tougher. It is a high-stress and potentially confusing period. It’s enough to drive you insane, but now is not the time to fall apart. Here are six ways to get your money (and your mind) straight after divorce:
Establish a New Bank Account
If you were like most couples, you probably had a joint account, if not a separate account. You and your ex used the same bank, but now it’s time for a change of scenery. After the divorce, you are free to establish new relationships, see other people, and relish your freedom. Why is meeting a new banker and establishing a relationship with a new institution any different? A new banking relationship will give you a fresh outlook, fresh new faces, and hopefully a fresh new boost to your finances. Utilize any classes offered in your city as well as the financial counseling services offered.
Establish a “Me” Fund
In marriage, you probably focused all your attention on your spouse and/or your kids. After the divorce, you can begin focusing on yourself. Create a “me” fund to fuel your life with fun and pampering. At first it might feel strange to set money aside for yourself, but you will get used to it.
This is a challenge for me, so I’m listing it to remind me to do it for myself. What a difference a day makes when you can go out a buy something you want without feeling guilty. Establish a “me” fund and bask in the feeling of financial freedom!
File Bankruptcy
This feels scary, but it’s the advice a divorce attorney gave me when I explained how much debt my ex left in my lap. I resisted for three or four years before I finally did it. My resistance came from long-held beliefs that bankruptcy would ruin my financial life and be a black spot on my credit. The reality is, I was drowning in debt I didn’t create, and my credit was already in the toilet. Filing for bankruptcy would be relief and a way to unburden me from past financial potholes.
The process was moderately painless and took less than three months to complete. The discharge happened rather quickly because there was no objection from creditors. Now I am on my way to better financial health and have a clean financial slate to rebuild my life. You can do the same if applicable.
Request Monetary Gifts on Holidays
Do you really need another scarf or toaster for your birthday or Christmas? Wouldn’t you be better off with a nicely padded emergency fund? For some people, it feels weird answering the question, “What do you want for your birthday/Christmas?” This year, answer the question loudly and proudly by saying, “Money, honey!”
Let people know you are creating an emergency fund now that you are divorced, and they will probably be happy to help. Money in the bank for emergencies has a funny way of making you feel capable of handling anything that comes your way. That is worth stretching beyond your proprietary boundaries isn’t it?
Sell Old Jewelry, Clothes, Etc.
Did your darling ex give you a big ol’ hunkin’ diamond ring, a fabulous floor-length fur, or a leather coat? How about a cute lil’ sports car? All the jewelry, clothing, and other luxury items can be sold and used to pad your bank account. The proceeds can jumpstart your new life and put you financially in the black. Forget about nostalgia and start thinking about a new wardrobe, a retirement fund, or that trip around the world you’ve been dreaming of. Selling off valuables is a great way to clear your mind, reset your life’s purpose, and keep moving forward.
Create a Realistic Spending Plan
Now that you have followed the first five steps in this financial (and mental) makeover, it is time to create a realistic spending plan. You are a now a one-income household, and barring any child support you may be eligible/entitled to receive, you must begin living on one income. Your spending plan must include all your expenses, savings, and investments you anticipate.
Review your bank account for three to six months to see your spending trends. Connect your accounts to Mint.com or some other account tracking system to get a realistic idea of where your money is going. From that information, you can create your spending plan. I recommend that you don’t include child support or alimony in the plan unless you know it is guaranteed to be consistent. Otherwise, treat it as an occasional source of income. It may sound counter-intuitive to do this, but your spending plan should only be based on your earned income. This is part of getting your finances and your mind together. Planning for the predictable is the wisest move you can make and a sure path to peace of mind.
No matter how tough divorce is on your money and your mind, you can come out smelling like a rose. It takes time, planning, and perseverance to see the other side of this life-changing event. But you can do this! I believe in you.
Author Bio:
Samantha Gregory is a single mom, financial empowerment speaker, coach, and a published author. She is the editor of RichSingleMomma.com, a personal finance, parenting, and personal development blog for solo moms. She offers the Goodbye Broke Hello Prosperity free five-day e-course on her website.
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
Last year my daughter attended an aviation camp for a week at no cost to me other than a $25 application fee. This camp is not widely publicized but is what I consider an elite camp because it includes flying lessons and a day trip to another city. My sister found the camp during a search for summer camps for her kids.
The camp is sponsored by corporate partners so most kids were able to attend at no cost, but there are other camps out there that offer specialized experiences that may require a premium price tag. So how can you afford to send your bright kid to this kind of camp without breaking the bank? Here are six tips:
Apply early
Now is the time to apply for summer camp. The earlier in the year you apply the better. This requires keeping your eye on the camp’s application start date, which is often posted on their website. This is not the time to procrastinate so get in gear and find the camps you want your kids to attend. Find the website and jot down the first day they accept applications on your calendar. When that day rolls around grab the application, fill it out completely, and submit it ASAP!
Apply for scholarships
Sometimes you will not see any information about a scholarship on the website. This can be discouraging but do not fear. Often camps do not post information about financial aid because it may not be official and/or they do not want an influx of applications. This may be due to limited funds, not enough staff, or other reasons. The best thing to do is ask if they provide assistance, either full or partial, then make your case for why your kids is worthy of that assistance. Just ask!
Go through your company
Your company may have a connection with a summer camp. Ask human resources and ask the camp itself if there is an affiliation with your company. There may be a discount available for you that is not widely advertised. Check the employee discount boards for summer camps that may have posted an ad. Often they attach discounts for employees only.
Speak to the director
Relationships go a long way so begin cultivating a relationship with the camp director. Call to ask questions about the application, logistics, and special needs your child may have. The director can give you insights to other camp opportunities with partners or within their own camp. The director may strike a deal with you to barter services if you ask. You may be able to get the camp fee reduced by half or completely written off if you provide a valuable service.
Ask family/friends for introductions
You may have family or friends that know camp personnel and in best case scenario, the director. Friends love helping friends so if they know you want to put your child in an elite or specialized camp they will likely come to your aid. A model friend of mine knows my daughter is interested in modeling so she tells me about opportunities I might never hear about. She keeps her eye out for us because I’ve asked her to mentor my daughter. People love helping you when you express a genuine interest in them and in improving your child’s life. Family and friends may also be a source of funding for the camp you want your child to attend. Again, you must be clear about what you want and have conversations with people who care. They will not know what you need until you ask.
Volunteer
The power of volunteering can be effective in the case of getting your child into an elite summer camp. If you are in a position to volunteer for the camp in question ask the director if you can do it in exchange for admission to the program for your child. Volunteering can mean many things. You can volunteer to check kids in at the start of the day. You can volunteer to bring supplies and snacks. You can volunteer to do paperwork or the camp newsletter. You can also have your child volunteer to earn part of his or her way to camp for the summer. It is a good way to show alternatives to getting what you truly desire and how to work hard at the same time.
Getting your child into an elite summer camp program may seem challenging but it is not impossible. Timing, gumption, and resourcefulness are the key to opening the doors of opportunity. If you want to expose your child to new opportunities take the initiative and apply to the programs you want today!
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
If you don’t you will never reach the level of prosperity you dream about. It’s all up to you and absolutely no one else. Read on to see how to do it.
Yesterday I started writing my expenses and then wrote my ideal income scenario. I kept it simple so I wouldn’t overload my brain. Here are a few tips I can pass along to you:
Decide where you want the income to come from (i.e. work, gifts, child support, side gigs, etc.)
Do a simple breakdown of what you need to do to reach the amount you set. Makes it more concrete. For example: If work goal is $35k year (which is $2,916 gross), divide the monthly amount by your hourly pay to see how many hours you need to work. Do this for your side gig and any other income generating activity you will do this year.
Believe that when God gives you a vision he will make the provision. (In this case for your finances)
Hold the vision for your best income level to happen this year. You can’t reach your goal if you are busy thinking negative thoughts feeling afraid.
Remember it has to be a combination of planning and believing you are worth receiving the income you want.
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
With the economic ups and downs of the last several years, many Americans are more motivated than ever to get their finances on track. With some financial alternatives expiring before the year’s end, there’s no better time than the present to start.
“If you’re waiting until the New Year to resolve to better your finances, you may want to think again. You could be missing out on some year-end strategies that could help bolster your retirement savings and even provide tax benefits,” says Lule Demmissie, managing director of retirement at TD Ameritrade, Inc., a broker dealer subsidiary of TD Ameritrade Holding Corporation. “By being proactive, you can really have a positive effect on your nest egg.”
Demmissie offers 10 smart year-end strategies to help you start the new year with a strong financial focus:
1. Make 401(k) contributions by the end of the year
Not good at regularly saving for retirement? Make up for it by investing part of – or your entire -year-end bonus. For 2013, the maximum 401(k) contribution for people younger than 50 is $17,500. It’s a simple way to help build your retirement savings.
2. Play catch up
If you’ll be 50 by the end of the calendar year, now may be the perfect time to make catch-up contributions. In addition to the $17,500 401(k) maximum, people 50 and older can make a $5,500 catch-up contribution. Visit the IRS website for more information on contribution amounts.
3. Invest in a traditional or a Roth IRA
While the deadline for this year is technically April 15 of the next year; some say don’t wait to make contributions to an IRA for the 2013 tax year. Take advantage of the tax benefits, such federal tax-free growth and tax-free withdrawals during retirement. For traditional IRAs, most wage earners can deduct contributions on income taxes now and pay the taxes upon qualified withdrawals in retirement. Note: Adjusted Gross Income (AGI) limits apply for deductibility for both Roth and traditional IRAs.
4. Invest in a child’s future
Give your child a head start in life by investing toward his or her education. Consider opening a 529, Coverdell or custodial account. For parents of children already in college, don’t forget to take advantage of the American Opportunity College Credit if you are currently paying your child’s college tuition. (Note: AGI limits apply).
5. Pay down high-interest debt
Having high-interest debt can make saving for anything else very challenging. By paying it down now, you can save yourself money in the long run. If you only pay the minimum amount each month, a seemingly small purchase could take months to pay off and over time could cost significantly more due to the high interest rates.
6. Own a home? Invest in it
Numerous energy-efficient home improvements qualify for a federal tax credit if done by the end of 2013. Things like new windows, doors, water heaters and skylights may qualify. Visit energy.gov to learn more. In addition to a tax credit, these improvements can save you money on your utility bills, opening up more of your monthly budget.
7. Donate to charity
Donating to charity isn’t only an act of goodwill; it can be used as a write-off come tax time. Whether a monetary gift or donation of goods, such as clothing and household items you no longer use, keep records and include the deduction when you do your taxes.
8. Adjust your W9
In 2012, the average tax refund was just under $3,000. Rather than loaning Uncle Sam the money at no cost, consider adjusting withholdings and using the funds for saving or investing
9. Save for a rainy day
It can be tempting to spend any monetary holiday gifts or bonuses from work immediately. Instead, if you don’t already have one, use that money to start an emergency fund. Some financial professionals advocate having six to nine months’ worth of expenses set aside for unforeseen emergencies.
10. Review your portfolio
Don’t delay reviewing your contributions and portfolio allocations. TD Ameritrade offers a variety of tax-deferred savings vehicles that can help you pursue your retirement goals. If you have questions, meet with a qualified financial advisor and learn what you can do to start 2014 on the right financial foot.
TD Ameritrade does not provide tax advice. -Please consult with a tax-planning professional with regard to your personal circumstances.
Provided by: TD Ameritrade, Inc. Member FINRA/SIPC /NFA & BPT
Samantha A. Gregory is an author, consultant, and speaker. She’s a single-mom lifestyle, money, and parenting expert featured in The Washington Post, The New York Times, Essence Magazine, HuffPost, ABC News, and Mint.com.
Samantha founded the award-winning RichSingleMomma.com™, the first online magazine featuring personal finance, parenting, and personal development content and courses for single moms.
She aims to inspire women who are ready to thrive and not just survive in their single motherhood journey. Connect with her on Instagram @richsinglemomma.
Hi! Welcome to RichSingleMomma.com. I started this website almost a decade ago because I couldn't find any blogs back then that helped single moms with money. I was having some success in that area so I decided to share what I knew about side hustles, making extra money, and managing money. Read more...
When my kids get birthday or holiday money it’s tempting to spend it all in one place. My 14-year-old son just wants food and games at this stage in life. As long as he has food and a bed he’s pretty happy. Recently he’s been talking about doing paintball for his birthday so he said he wants to save for that. My daughter wanted an iPad when she turned 15. I made a deal with her to save her birthday money and any other money she made to pay half for the device. She agreed and kept up her end of the bargain. I paid the other half and insurance. She still holds on to her precious iPad today even though she complains that it’s a bit outdated. She will always remember saving for what she wanted.
hit the “gotta look good for the ladies” stage just yet. So buying clothes, shoes, and cologne is not a top priority. He’s not into designer sneakers so that has saved my budget. He loves getting new shoes when I get them but doesn’t make a big deal out of it.
Images by StockImages, suphakit73, and adamr at freedigitalphotos.net
