10 Tips To Raising Financially Literate Young Adults

Do you truly care about the security and the financial future of your student’s or children? If so it is important that you prepare them for the financial challenges that await them as they move away from home.

The National Youth Financial Educators Council developed these ten simple tips that will help your child avoid the financial pitfalls that plague so many young people today.

Tip #1 Relate Money to Lifestyle. Who cares about money? It’s what money allows us to do that motivates our children to learn about personal finance. Talk to your child about their personal dreams and discover what they’re passionate about. Then relate their aspirations to how understanding money basics will make their life easier and will help them reach their goals sooner.

Tip #2 Eliminate Limiting Beliefs about Money. Even though many of us have had difficulties handling our finances – mostly due to lack of financial education instruction – we must avoid passing along negative associations about money. It’s OK to share financial mistakes with your child just be sure to do it in an encouraging way. Reverse those old false sayings because “you can make money without money”.

Tip #3 Develop Their Foundation Skills. There are key personal traits that will make it easier your child to achieve the level of success they desire. The top five traits that will give your child a financial head start include: organization / time management, ethical character, developing a proper mindset, living ones passions and the ability to communicate effectively. These five real world skills will give your son or daughter a huge advantage in life.

Tip #4 Savings Plan. Get your child, teen or young adult in a habit of saving money. As long as you pay for their food and housing bills have them set aside 40% of all income they receive, including gifts and earned allowance, into a savings account. Lack of savings is the biggest problem plaguing most Americans so help them avoid debt by encouraging a savings plan as soon as possible.

Tip #5 Build a Solid Financial Foundation. Make sure your child has their: checking, savings, Roth IRA and brokerage accounts open as soon as possible (even if they do not have money to put into their brokerage or retirement accounts right now). People that have these accounts open are more likely to save their money and begin investing at a young age. Plus, it gives them an added sense of responsibility and status which are essential in the development of financially responsible children.

Tip #6 Power of Compounding Interest. Youth gives our children a huge advantage when it comes to their financial health due to compounding interest. When harnessed young, this powerful financial force will make securing their future and living the lifestyle they want a breeze. What’s more, it’s motivating to young adults to know that if they just invest $100 per month they can hit the million dollar mark in their fifties. Showing them how compounding interest works gets them excited and is a great way to help them think about the future.

Tip #7 Raising Free Thinkers. In today’s age, from the moment our newborn is exposed to the real world, they are brainwashed with advertiser’s messages to “buy, buy, buy”. Teach them to evaluate advertising by asking “what are they trying to convince me of”, “who are they targeting” and “what does this goal of this ad”. Doing so will help your child evaluate advertisements logically, instead of emotionally, and pick up marketing knowledge which is a key skill of many successful people.

Tip #8 Credit. Building a rock solid credit history will save your child tens of thousands of dollars throughout their lifetime. Understanding the basics of how credit reporting agencies work and how to use credit cards as a tool to build up their credit scores will put them well ahead of the ‘average’ person. Teach your children to pay their bills on time, keep debt low and introduce them to credit cards.

Tip #9 Three Keys to Wealth. For many the thought of investing can seem overwhelming because they don’t know what to invest in. This doesn’t need to be the case because the three investment vehicles that have created almost all (over 90%) financially free people include: the financial (stock) market, real estate and entrepreneurial endeavors. Since pensions and SSI will be a thing of the past when your children reach retirement age, it is critical they pick up some basic investment skills to ensure their financial security. It is important you talk to your children about each of these investment vehicles to help build their awareness of potential future investment options.

Tip #10 Entrepreneurial skills – In the 21st century, entrepreneurial skills are essential. With many jobs being sent oversees to capitalize on cheaper labor it is now more important than ever your child has the skills that employers want. Employers want people that think outside the box; so entrepreneurial skills will not only help them start their own business but will help them stand out in corporate America. Encourage them to start a business and give them the resources so they know what steps to take.

Bonus Tip: Provide Your Children a Professional Financial Education Course. A professional financial education course that has been certified by the National Youth Financial Educators Council is the only way to ensure that your children learn everything they need to know about money. We send our children to school to learn math, biology, literature but not money. We give them a professional education on many other subjects; shouldn’t we give them a professional education on a subject they will use every day of their life?

Where to Get Financial Aid for College Students

Nowadays, if you hope for a financial stable future, you must attain a good college education to back you up. In this light numbers of incoming college students applies for grants and financial aid to respond for the increasing fee that college universities sets in order to get a higher education.

Financial aid for college students is everywhere but you must first need to understand how it works and the qualification for you to get it. In the United States, the government is very much aware of the importance of higher education hence they made various programs that aids students to have the best education they can. They are more lenient in giving these grants as compared to other grants sponsored by the federal government. There are colleges that are supported by the private sector that provides scholarship grants for incoming college students who cannot afford to support their studies. So basically all you need to do when applying for financial aid for college students is to look around and see what suits you best.

If you plan to apply for such grant you must first to fill out the FAFSA or the Free Application for Federal Student Aid. This is the first step, for the government to qualify who gets the grant and who doesn’t.

Colleges on the other hand based their qualification on merits, choosing the best among the applicants using their achievement record and income status. There are scholarship funds given to those who are assets to various universities like athletic excellence and academic achievement, etc.

Private businesses also are giving financial aid for college students with minimum qualification. If you aim for this grant, you should first check with the company closest to your family, like the company where your parents work, for they choose to give grants as a part of employee benefits.

You think of college as an intimidating and highly priced place to get proper knowledge, there are a lot of colleges out there that provides good education at a lower rate, so the key still is to keep a watch over those that provide grants either through private sectors and/ or government sector and looking for colleges that offers a much, much lower rate. Financial aids for college student are endless, that is why you should never lose faith. Put in mind that education is the key to your better future.

Student loans like the Stafford loan are given to students with financial needs. These loans are not and will require you pay up gradually, six months after you graduate. Although for most cases, these loans easier to get and covers almost the entire educational needs. These loans are usually very low in interest and easier to pay.

Financial aid for college students are indeed a good to promote higher education and does not only helps students financially, they also motivates students to seek for a better future.

Financial Planning Education Programs Are For You

Are you 16 or 19? Then this article is probably not for you. Of course exceptions do persist and you may have the responsibility of sustaining a family on your own. Financial planning is something we as teenagers are never bothered about as our parents look after our major expenses. However, with the changing times and rising inflation rates, I personally think that it is important to every living individual to plan and execute properly, their financial decisions, expenditures, investments and returns. People that lived half a century ago must have never had the facility to access information on handling one’s finances and securing the future due to lack of theoretical resources on the topic. Not everyone was able to secure a firm future with highly managed finances except if they were rich enough to hire a professional financial planner. The others who belonged to the working class stayed as the working class as they did nothing but work for money and never the other way round. The rich, on the other hand, got richer because they had learnt how to make the money work for them and bring in more money as a result.

Thanks to the advancement in today’s information and communication technology you have inexpensive access to the world renowned strategies in financial planning. And with the recent financial setback that most of the major countries in the world experienced one can never afford to go careless in securing finances for themselves and their future generations. This is where financial planning education programs hugely help develop the right attitude towards money. As men and women of the modern world you not only have to be financially independent but also financially capable of securing the future of your children. Financial planning education programs cater to people at an individualistic level to a corporate level. It is a course that almost anyone can benefit from.

Online financial planning education is by far the most inexpensive means of garnering effective and practical knowledge of financial planning for the future. You get to learn the different investment solutions that aid the money in working for you. You get to acknowledge the importance of insurance policies that can help you out of unnecessarily heavy expenditures in any unseen circumstances. You get a blueprint to plan out the educational, medical and various other expenses that would come your way and means to carefully tackle these problems by pre-planning everything. Choose your future by choosing the best financial planning education programs. There are many available online, try and filter out those that do not make over-the-top promises and are straightforward and offer crisp training modules at affordable costs.

Earn An Online Education And Success Is Just There To Be Had

There is another option if you want to advance your academic pursuits. With the use of the computer Internet technology, earning a college degree is not that hard anymore. The mode of education that used web-based instructions is called online education or distance learning. Since most of the students in progressive countries such as United States of America and Europe have computers and an access to the Internet, the desire to study online has become a norm. Consumers are discovering the advantages of earning a degree online, this system of education is gaining its popularity especially among the working individuals and people with responsibilities at home.

Learning online enables you to attain a college degree that interest you the most at your own pace. You can graduate and get a two-year associates degree, a bachelor’s, a master’s or even a doctorate in your choice span of year to complete it. That is why many colleges and universities are now offering online courses to cater many students who prefer to study online. And many are now discovering the effectiveness and efficiency of this mode of learning. Through the use of a computer and Internet access, a student can study and earn a degree by staying conveniently wherever and whenever they want to study. They can study at home, in the park, to the confines of an office work space, in the public library or even when they are travelling as long as there is an available Internet access. There is a wide area of educational interest in an online education program. To name a few of them, you can have learning degree programs in business, education, engineering, law and criminal justice, arts and humanities, social science and technology offered by accredited online schools.

In this modern and fast-paced world, education is available in almost everywhere and in almost every language. Just like with the traditional mode of education, financial aid is also available in almost every schools and through the federal government. Deserving students can receive grants from the government as long as they pass the qualifications. There are other expenses that are usually tied in getting a college degree are absent when a student prefer to go online learning. No need to rent an apartment or boarding house because you can stay at the comforts of your home and study. Travelling that may cost you for transportation expenses like bus fare or gas for your car. You can save time and much money that you can use in paying a substantial portion of your tuition fees.

Online students are also free from classroom distractions. But virtual learners also needs self-discipline. It takes you a great deal to work in earning a college degree course online. Internet could also distract a student because it has a hypnotic effect even how conducive a bedroom or office for studying. That is why commitment and perseverance of a student are very important in order to complete a college degree. For those who are willing to work for their achievement, success is just there to be had, it all depends on the one seeking of earning something worthwhile.