Preparing Your Child to be a Financially Responsible Adult

Dad helping daughter move into University
A kiss on the cheek, a pat on the head, a car packed to the brim and your precious baby is off to begin the first steps of his or her adult life. You’ve fed her, raised her and kept her out of trouble (as much as possible, that is) and you’ve taught her how to live her life as a responsible adult.

Before she leaves, though, it is paramount to help her understand her finances and what adult life will have in store. Here are a few tips to include in the conversation to help your child become a financially responsible adult:

1. Save

A penny saved is a penny earned, but more importantly, a penny that could be used to grow into a small fortune one day. Savings is an important part of any adult’s life as it helps to steer clear of purchasing on credit and racking up unnecessary debt. Most things can wait and saving up for things cuts out interest fees and creates a sense of accomplishment.

2. Create an Emergency Fund

Although this is similar to saving, it is for a different purpose. While you can save for a new car, a down payment on a house or apartment or something fun, an emergency fund is strictly for those unexpected things in life. A flat tire, fewer hours at work or any other sudden expense can be crippling, so it is important to have a good amount saved up for such occasions. A good rule of thumb is a month’s rent or at least one thousand dollars.

3. Employment

Even if it is only part-time, having steady employment can help teach a college student how to manage responsibilities and priorities as well as give them a little extra money to save or use for fun. They will also receive real-world experience in dealing with customers and bosses, even if it is not in their particular field.

When searching for a job post-college, it is always good to have experience to show you know how to work. But it will also be helpful if your field does not have a position available and you have to search for employment in a different profession.

As a parent, you want your child to be successful. Smart money management habits are a part of that success, and so you’ll want to make sure your child is prepared to handle his or her money responsibly.

Are Our Kids Being Dumbed Down?

Can't find the undo button
Kids today have to cram so much information into a relatively limited amount of time, but is all that information resonating and helping them achieve? Is the “dumbing down of kids” a real thing or just older folks (who don’t remember their own childhood) complaining? An increased reliance on technology, overscheduling and the need for instant gratification may be making kids seem dumber than before when they really just aren’t honing their problem-solving skills.

Can you Make Change?

The cash register serves a purpose, from tracking inventory and anticipated revenue to holding currency — but some cashiers are so dependent on it that they can’t make change without it. Is the ability to do math or make change quickly becoming a lost art because of Common Core or because of a loss of focus on practical skills? How often do today’s kids actually handle cash or see it used? In an increasingly digital and tech-friendly shopping setting, even small children see parents using cards instead of cash and may not be faced with making change until they are in front of the register, struggling with dimes and nickels.

Abridged (or Eliminated) Books

Abridgment can make a piece of literature easier to read, but may also leave behind all the details that make the book a classic in the first place. A recent piece in Philly Mag highlighted this issue; the author’s son was learning about the Great Gatsby, without every encountering the novel itself. Classics like the Jungle Book, Island of the Blue Dolphins and even Little House on the Prairie are being simplified to encourage reading — often rendering the story unrecognizable. Abridgment may make a book shorter and more appealing, but leave the story an empty husk — try discussing a classic with someone who has only read a summary or seen a movie and you won’t really have much of a conversation.

Stranger Things and Technology

The Netflix hit Stranger Things breaks away from technology and focuses on the mostly pre-tech 80s; aside from a cordless phone and walkie-talkie, the characters in this breakout hit have to rely on their own wits and fortitude. These 80’s kids were able to ride around pretty freely and used a pencil, paper and compass to figure things out — critical thinking skills that developed naturally with use. Would a modern child be able to determine “where” to go with just a simple compass — or would they be stuck without a modern phone with maps and texting capabilities?

We have more resources than ever before — but are we slowly becoming dumber? Probably not, we’re just not getting the opportunity to fully develop manual skills and critical thinking skills before receiving a device that does all the work for us. It’s not a thinking problem — it is faster to use Google than look something up in a book, after all.

There’s no question that some things are becoming a lost art and while technology has greatly enhanced the lives and safety of today’s kids, it can contribute to a reduction in actual life or living skills and problem-solving abilities.

Thoughts?

Moms – the ultimate superheroes.

Super Mom

She cooks; she cleans; she drives you to softball practice. When you are too old to drive to softball, she has the perfect advice on how you should drive. She’s Mom the Superhero, and she has your back from the very first breath that you take on this planet. She packed your lunch, and she still packs it if you let her. She has dinner waiting on you when you get home, even if that trip home takes years to make. She’s Mom, and she will always be your first superhero.

Until you become a mother (or a dad – close enough), you will never truly understand the sacrifices that mom made to make your life so easy. Everything else doesn’t just fall by the wayside just because mom is mom. Mom still deals with adult problems – problems that she tried her best to shield you from for as long as possible.

When was the last time that you gave your mom a truly heartfelt “thank you” – Mother’s Day last year? There is nothing wrong with setting aside time for a special thanks. That’s what Mother’s Day is all about. However, we should all be thanking our moms every day. They are, after all, the ultimate superheroes of our lives. They are the people who give us the strength and the example to be superheroes for our kids.
Never forget who made you who you are. It was always, and it will always be, MOM!

PS – Don’t forget to show your mom how special she is on Mother’s Day!

Spending Less vs. Earning More

money dollars in hands
If you made 10 or 20 percent more each year, how much better would your life be? Would you find it interesting to know that no matter how much people make, virtually everyone believes that just a little bit more is all that’s needed?

Earning More

Let’s start by accepting the fact that to earn more, especially significantly more, you have to provide more value. If you believe you will earn more by simply spending more time doing what you are doing, you will likely be disappointed. You may get an occasional raise in pay, but most of that will be eaten up over time by inflation.

Ask yourself why you aren’t making more. Be honest. Is it because of where you work? Is it due to what you do? Is your income limited by what you know or where you live? What are the things you have the ability to change that may be holding you back?

How would your life change if you could make 40 or 50 percent more? What if it was possible to double your income in the next three years? What would have to occur to make that a reality? How would a person who makes twice what you make act? How would that person approach his or her work? What kind of attitude would such a person have? What are you willing to do to double your income?

Many times, we have more control than we think, but we limit ourselves. I’ve talked with people who excel in sales, but when asked why they don’t earn more, they’ll respond, “I just don’t want to work that hard.” They could benefit greatly by hiring a part-time administrative assistant on their own and spending more of their time in front of prospects. Explore out-of-the-box ideas that can make you more efficient and valuable at what you do. How are the top earners in your career category making the most of their efforts?

Spending Less

While many people believe making at least 10 percent more would make their lives so much better, they are not willing to take the steps necessary to spend 10 percent less. They will convince themselves that they deserve what they have and how they spend their money. They will struggle to keep doing it.

If making 10 percent more would make such a positive difference, wouldn’t spending 10 percent less have the same positive impact, especially when you consider that spending less is actually easier than earning more? You see, because of payroll taxes, you have to make about $140 to net a $100 raise. On the other hand, if you spend $100 less per month, you are giving yourself that same $100 raise.

Combining Spending Less with Earning More

Of course, the most powerful combination to improve your financial wealth is a combination of earning more and spending less. Fill your bucket with more cash while you plug the leaks. You have both your earning ability and the opportunity to spend less at your disposal.

This week’s cartoon is not fake…

You want lies with that?

I tried to capture the overall view of the news lately.  I’m disappointed how easily “fake news” has dominated our society.  I’m just as disappointed in news organizations who favor revenue over credibility and value.  I’m scared to see what happens if these two trends continue.

Why You Should Be Recycling More

Recycled answers

On average, we each produce almost four and a half pounds of waste every day. While about a third of it is recycled in the U.S., that’s still a lot going to the landfills. Recapturing more of that waste can have many positive effects, including:

Conservation of Natural Resources

When metal, paper, plastics and other materials are recycled instead of being discarded after a single use, that means less new materials need to be mined or harvested. This means less water use and less pollution attributed to gathering new materials. Our current rate of recycling has the same greenhouse emissions benefit as removing 25 million cars from the road. Imagine the benefits if we did more.

More Green Jobs

Experts estimate that achieving a U.S. recycling rate of 75% by 2030 would create 1.1 million new jobs. When we recycle and reuse we create at least nine times as many jobs as there would be when we send all our waste to the landfill.

Green Spaces are Preserved for Future Generations

Lowering the amount of raw materials we need means that less space is ravaged by logging and mining. Less in landfills means more beautiful usable spaces for everyone else. When we recycle, we aren’t just making things better for today; we’re building a more sustainable future.

How You Can Help

Recycling only works if we all get involved. A few ways we all can help:

  • Recycle at home. Each one of us can reduce the amount of materials we send to landfills by sending recyclables to the right place.
  • Make recycling easier in public places. Ask your city to put public bins for recycling cans and bottles next to the garbage receptacles so people can responsibly dispose of trash on the go.
  • Buy recycled products. When you are buying new items, look for information that shows the maker used recycled materials. Papers that make paper and plastic products, for instance, will say on the label how much recycled material they use. By buying recycled, you keep the cycle going.

These small actions every day can help ensure that more is recycled and that less winds up in the trash.