How Smart Tweens and Tweens Set and Achieve Financial Goals

Poet Maya Angelou once said “when you know better you do better. So why is that every time a new gadget, a new nail polish, or a cute skirt is displayed in the window at the mall you have no money to purchase them? Everyone is familiar with this scenario: Just Bieber, Lady Gaga, Beyonce, or Kesha is touring your city and you heard the concert was amazing to witness, but there is no money left from baby sitting or completing chores because you spent it as fast as you earned it. So any chance you had of going to the Kesha concert is a distant dream, but your friends will tell you all about it at school the next week. Wouldn’t it be great to have the money saved to purchase concerts tickets without the stress of not knowing how you will pay for it.




Why is it important to save even if you only save 10% of all the monies you earn? Saving your money will help you pay for big ticket purchases, achieve financial goals that you have set for yourself, and let’s not forget the rainy day fund. Buying Lady Gaga concerts tickets would be considered a big ticket item, ordering your yearbook would be a financial goal that your will want to accomplish before the payment due date. Both of these purchases are important and must be planned for. So how do you save and spend your money? One you must decide what it is you want to purchase, and what is the average price? Once you have assessed the cost make a decision for a timeline, your timeline can be a week, a month, 6 months or a year. After you have established a timeframe take the cost of your goal and divide it by the timeline. For example if you want an Ipad at a cost of $600.00 and you want it in 6 months the formula is (cost of goal/ timeframe = savings goal) $600.00/6 months = $100 per month is your savings goal. You must save $100.00 per month for six months or $25.00 per week for 24 weeks. Once you know what your weekly or monthly savings goal is you can now develop a strategy. Your strategy might be starting a dog walking business, or raking leaves, and it may mean doing more chores for additional allowance money. Whatever your strategy is to create income, be consistent for the duration of your timeframe. You might even get to your goal much quicker than you planned. Smart Teens and Tweens make smart purchases because they plan for their spending so they never miss out on what’s hot.

Leveraging Lessons Learned

So its 2011 and many companies have reported making a 4th quarter profit despite the slow start of 2010.  Hip Hip Hooray for these companies, but have American households started to realize a profit yet?  Have we learned from the hard lessons of 2008 through 2010?  Many Americans believe so.  Just last year American families were eating out less, decreasing their budgets for entertainment and other wants.  Coupon clipping was the new trend, and cutting back in every area of our finances was a must.  But now as Americans are feeling better about the current economic environment and its upward trend to recover; they are rethinking their current spending habits.  I think some would agree that in the last couple of years American households went cold turkey on their mindless spending habits.  Today Americans feel more confident that they will ask the right questions and make better choices when it comes to making financial decisions.  They are truly leveraging thier lessons learned.   Today they will not wait to buy a car when their current car is about to fall apart.  They will buy a car with confidence leveraging what they know now.  They will buy a reasonable priced car after much negotiation, for the right price.  It will not be a brand new car, and it will not be a luxuary car if it is not in their budget.  Americans still want to take family vacations but will not go into debt for it.  They will be strategic in their vacaion planning, researching the best deals and discovering ways to be entertained for free.  As people begin to consider their first or second home purchase the "Mini Mansions" of the past will stay in the past.  As Americans are now opting for practical, cozy, and smart home purchases.  But if none of this sounds like you then, well, you must have farewelled during the worst American recession in history.  If you didn't may I recommend that you consider thinking about the purchases you wish you had not made.  Consider if you have at least 6 months worth of living expenses saved and if not why not?  Then take notice of your neighbors and family members did they change their spending behaviors?  Now you can leverage lessons learned.  I declare we are no longer scared to make purchases and spend money but we will make purchases carefully and timely.  Maya Angelou stated "When you know better, you do better".  This year in 2011 before we make financial decisions let's leverage our lessons learned.     

Money Conversations That Cross Cultural Lines

According to a survey conducted by the FDIC Black and Hispanic communities are not as financially savvy as other communities.  So why is that?  Have some cultures been provided early financial literacy education as well as opportunity?  As I teach workshops and seminars at many different schools and organizations I look at the faces of all my class participants.  I listen to their experiences around money.  What I have come to understand is all cultures learn from experience with regards to money.  Some people learn lessons from working their family businesses, some from international travels, some from church, some from sitting at the kitchen table with their parent balancing their checkbook or paying bills; and others learn hard lessons.  Hard lessons are money mistakes made initially then either are corrected or are developed into a bad habit.  For example the first time you got a bounced check fee from the bank it may have caused a domino effect.  The mistake was made and hopefully corrected, but my many years in the banking industry tells me that a significant amount of first time offenders traditionally become repeat offenders.  We all learn from experience regardless of our race, but because of race and culture we are exposed and experience many different things.  When you look at your circle of friends, church members, or coworkers try and understand their money experiences and if you can help take the opportunity to do so.  If you learn something take the opportunity to be open and listen. Mark your calendars for the CNN broadcast of "Almighty Debt, a Black in America Special."   Reported by Soledad O' Brien.  Thursday, October 21st at 9 p.m. est.  

"Payday"

What does payday mean your children?  Have you ever made a comment about only making a purchase on “Payday” or waiting to buy something on “Payday”.  If your children are hearing this they may be thinking only on “Payday” can I ask for something or can we afford something.  Last night I was speaking with my sister in law and my niece asked if she could have something on my sister in law’s “Payday”.  Now Sophia, my niece, has no idea when payday is or even how often it comes, but she now relies on “payday” to ask for things she normally wouldn’t ask for because of their expense or the idea that it’s too grand and she must wait until “payday” to get it.

Students today are clueless of the expenses that eat up “payday” when it comes around weekly, biweekly, bi monthly, or monthly.  Here are a few things to make the countdown to “Payday” easy for you and less interesting for your kids. 

1)      Show them what expenses are paid during the month and that your paycheck goes to fund those expenses.  Be open and don’t shelter your kids they are smarter than we think.  They don’t need to know what you make but be realistic in what you decide to share if the number are made up.  if the family has a spending plan make sure your kids get a spending plan too.  If you don’t have a spending plan or budget now’s the time. Visit the Smart Kidz Money Matters website at www.smartkidzmatter.com and get a copy of an excel budget worksheet.

2)      Your kids wouldn’t worry about “Payday” so much if they had a Financial Savings Goal. Have them make a list of the things they want and create a savings goal around it.  Visit the Smart Kidz Money Matters website at www.smartkidzmatter.com and get a copy of a Setting Financial Saving Goal Worksheet.        

Smart Kidz Money Matters to Offer an Economic and Financial Literacy Enrichment Course at Ivy Preparatory Academy

Smart Kidz Money Mattersâ„¢ to Offer an Economic and Financial Literacy Enrichment Course at Ivy Preparatory Academy

Today's students are tomorrow's financial leaders. They will create industry changing ideas and develop commerce unheard of today. They will walk through many doors or opportunities and break through glass ceilings. Their experiences will not only come from higher learning institutions but home, life, and service learning experiences. They will be future politicians, CEO's, entrepreneurs, bankers, teachers, scientist, Christians, Muslims, Buddhist, and everything or anything they decide to be. That is why students and parents must choose to understand money. Where it comes from, how to earn it, and how to make it work even in your SLEEP. Economic and Financial Literacy Enrichment Courses are opportunities for students to prepare for the future. If adults do nothing else give students the chance to learn a money lesson without being burned first to get the lesson. Whether adults like it or not our future tomorrow is up to the students of today.

Raising Cash Savvy Kids

April has been a great month to celebrate Financial Literacy Month.  As school is coming to a close and summer vacation is starting it is time for student to start looking for jobs and for parents to start teaching their kids personal money management.  Let's start with students looking for jobs.  April is a great month to start researching jobs, submitting resumes, and completing job applications.  But where do you start and what can you expect to get paid?  Students must consider how they will get to work first will it be public transportation like the bus, or train.  Will you walk to work or have a parent take you.  Once you figure out your primary means of transportation begin looking for local job postings in your community.  Your local grocery store, gas station, or mall maybe hiring.  Other great opportunities for you to pursue is with your county Workforce Development Agency.  Some Workforce Development Agencies have specific jobs for students, these jobs may include working for parks and recreation, watershed or waste management, and other county departments.  These jobs often pay more than minimum wage but you have to apply now!

Parents this year is critical in talking with your kids about personal finances.  It's never easy to talk about money matters with your kids, but teh time is now.  There are several things to help start those conversations, and you must also provide them with the right tools to get them engaged.  Promoting the use of technology in financial literacy is key, technology is the lanuage that our youth speaks today. On April 28th-30th fifteen speakers including myself from across the globe will facilitating a FREE teleseries entilted "Raising Cash Savvy Kids".  You can get tips and ask questions of experts on financially literacy and how best to communicate with your kids about money.  You can register free at www.smartkidzmatter.com under the resource tab, just click on the Raising Cash Savvy Kids link.

Don't let summer come and go without you talking to your parents about money, and parents don't let school start again without providing your kids tips on becoming Cash Savvy.                        

Smart Kidz Smart Money Tips for Teens

If you are an employed or unemployed teenager you have to be very smart with the money you make. It is easy for teens to go out and spend money because the newest music CD, or latest fashion trend is always at your finger tips, but music and fashion will eventually become classic or vintage chic. This means you'll always be able to find it somewhere in a great trendy boutique, or online, but your future wont be fashionable or vintage chic if you do not prepare for it today. There are many things you can do and several other things you should do however, let's start with baby steps.

Smart Teens always talk to their parents, or guardians about money. Your parent may not be comfortable sharing with you how much income they are payed from their employers. Let them know you are not interested in knowing their salary, but more so in what bills are paid each month and the amount of the bills due. Knowing the total amount owed on the household bills will help you make better spending decisions about your own money. If you get $15.00 in a weekly allowance and you normally spend $12.00 per week in junk food, you are fully aware now that you may need to save $5-10.00 each week in case something comes up and you are not able to ask for additional allowance from your parents or guardian because the household bills need to be paid.

Always save 10-33% of your allowance or monies earned from working. This will allow you to have money when larger items need to be purchased. Larger purchases like the latest "Guitar Hero". This will also help you set financial goals by entrusting you to think about your purchases before you buy them and develop creative ways to raise more money for the things you want.

Smart Teens talk about money with their parents and set realistic financial goals that lead to financial success.