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    6 Steps to Help Teens Plan Financially for the Future

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    By Family Features | ContributorFor teenagers, retirement may seem like a lifetime away, but it’s never too early to start saving for the future. Because financial habits can be created at a young age, the sooner kids begin to save and learn about investing, the less likely they’ll face worries about money when they eventually stop working.Teens are already thinking about retirement, according to the Achievement Teens & Retirement Survey conducted by Wakefield Research on behalf of Junior Achievement and MissionSquare Retirement’s Foundation. Among young adults ages 13-18 surveyed, 83% have thought about their retirement and 78% believe they’ll be able to retire comfortably when the time comes. However, only 60% view retirement as living on investments and savings after leaving work, believing instead retirement could mean taking extended time off for travel, study, illness or taking care of family matters.“This research shows retirement is more top-of-mind for teens than one might think,” said Tim Greinert, president of Junior Achievement USA. “While young people have given retirement planning some thought, it’s apparent they still need information on the best way to go about it.”Because nearly half of U.S. households (46%) report having nothing saved for retirement, according to the Survey of Consumer Finances, taking steps early to save and invest can help teens get a head start on achieving a successful retirement.Start now. The sooner you start, the longer you have to save and for investments to grow. Even though contributions may be small during your teens and 20s, it can make a dramatic difference in the long run.Pay yourself first. Whether through a dedicated savings account or an employer’s retirement plan, set aside a set percentage of each paycheck. Then prioritize spending on what you truly need and want.Invest what you save. Unless you save a lot, you’ll need to make the most of your savings by investing them to help them increase in value. According to the survey, teens believed investing in stocks and bonds with the help of a financial advisor (45%) or researched online (38%), buying real estate or property (30%) and buying cryptocurrency or non-fungible tokens (15%) are among the best ways to save for retirement.Find the right balance between investment risk and potential return. The ideal mix is one most likely to help meet investment goals with a level of risk you can handle. The longer you have to invest, the more risk you can likely take.Spread savings across different types of investments. This helps you manage risk. As some investments go through rough stretches, others are likely to hold steady or grow.Stick with your investing plan. Avoid making decisions based on emotions or in an attempt to time the ups and downs of the market. Focus instead on meeting goals over time.“The fact that so many young adults in the early stages of their careers are aware of a variety of investment strategies is encouraging news,” said Deanna Santana, president, MissionSquare Foundation. “Over the course of our lifetimes, investment approaches, the economy and our priorities will change, so planning for life after work is an ongoing necessity – for teens and adults alike.”Find more advice to plan for the future and achieve economic success at ja.org and missionsq.org.Photo courtesy of Shutterstock More

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      Why You Should Give Your Kids an Allowance

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      By Tanni Haas, Ph.D. | Contributor

      Experts agree that an allowance can teach kids important money management skills, like how to save for things they want, how to budget their money, and how to choose between competing spending goals. Personal finance expert Brad Munson says an allowance “is a great way to teach kids about the real value of money, how to be organized and responsible, and how to plan for the future.” Financial counselor Ray Martin, who’s the author of several books on money management, adds that an allowance is a great opportunity for kids to experiment with money and to learn from their mistakes. “It’s a way for them to learn big lessons with small amounts of money at an early age.”

      It’s important that you talk to your kids about the value of money, and it’s best to do so in the context of an actual allowance. Certified financial planner Marty Allenbaugh says that talking to your kids about money without giving them an allowance is like trying to teach them how to play the piano without ever letting them sit at the keys.

      Research shows that giving kids a regular allowance while discussing with them the importance of money makes them more financially responsible as adults. They become, as personal finance expert Evonne Lack succinctly puts it, “less likely to arrive on your doorstep years from now with a duffel bag full of dirty laundry and a mountain of credit card debt.”

      If an allowance is such a great tool for teaching kids money management, at what age should you start giving them one?

      Many parents start at age 8, but experts agree, as Mr. Martin puts it, that it’s the kid’s “aptitude not the age that really matters.” So how do you know if your kids are ready to receive and learn from an allowance? Research shows that they are ready to benefit from an allowance once they have reached certain developmental milestones, like 1) understanding that money can be exchanged for things they want, and 2) they can confidently add and subtract.

      And, here, kids differ widely. While some kids reach these milestones at age 4 or 5, others get there by age 8 or 9. “So if your child tends to shrug at money, losing it before it can find its way to his dusty piggy bank, hold off until you see signs that he enjoys saving it or thinking about how he might use it,” says Mrs. Lack.

      Finally, but not least importantly, what amount should you give your kids?

      Experts agree that, as a rule of thumb, you should give them $1 per year of age on a weekly basis: for example, a six-year-old would receive $6 a week and a ten-year-old $10 a week. The advantage of this approach is that kids get an automatic raise every birthday, eliminating the question of when their allowances will be increased. If you are really lucky, it may even reduce sibling arguments, because the younger kid will understand why the older siblings get more.

      Parents should feel free to deviate from this rule of thumb depending on whether they live in an expensive or inexpensive area, their particular financial situation, how many kids they have, and which regular expenses they or the kids are expected to pay for. As Susan Borowski, the author of “Money Crashers,” puts it, “If a straight $5 or $10 per week (or even per month) makes more sense to you than paying a dollar per year of age, then pay what works for you.”

      If your kids are very mature, you can discuss this issue with them and reach a mutual agreement on a reasonable amount. It’s useful to go through such a process with your kids, says Mr. Martin, because it “helps to develop budgeting skills, teaches responsibility, and prepares them for the realities of personal money management.”

      The allowance shouldn’t be too high. If you give kids too much, they won’t learn how to budget and allocate money because they never get a chance to prioritize among competing spending goals.

      However, the allowance shouldn’t be too high. If you give kids too much, they won’t learn how to budget and allocate money because they never get a chance to prioritize among competing spending goals. Ron Liebler, the author of “The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous, and Smart About Money,” says to “give your kids just enough so that they can get some of what they want but not so much that they don’t have to make a lot of difficult trade-offs. Let them own those, so they know what it’s like to make financial decisions that resemble grown-up ones.”

      Whatever amount you ultimately decide on, make sure to follow a consistent schedule and stick with it – whether weekly or monthly. As child psychologist Dr. Mary Kelly Blakeslee says, “random payments will be frustrating and confusing, and will reduce the opportunity for learning.”

      Editor’s Note: Click Here for insights on how you can help your kids maximize their money management skills.

      ABOUT THE AUTHOR

      Tanni Haas, Ph.D. is a Professor in the Department of Communication Arts, Sciences & Disorders at the City University of New York – Brooklyn College. More

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      That’s a Good Question! Podcast: Episode 7

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      In this episode, we visit with Dr. Shanna Garza the Clinic Director of Girls to Women and Young Men’s Health and Wellness, an Adolescent Medicine practice in McKinney, Texas.

      Dr. Garza received her B.S. in Biology from Emory University and attended medical school at Baylor College of Medicine. Following her medical education, she completed a Family Medicine residency at John Peter Smith Hospital in Fort Worth. She is a board-certified Family Medicine physician with over 13 years of experience working with children, teens and young adults.
      Eating disorders are a health issue Dr. Garza’s clinics contend with on a regular basis.  There are a lot of societal issues impacting the way young people, especially girls, see themselves and judge themselves. Preoccupation with food, body weight, and shape may signal an eating disorder.
      What is the risk of dieting to young people? Is there a difference between an eating disorder and disordered eating? How does social media, diet talk and body shaming lead to eating disorders? 
      Dr. Garza shares important advice for parents to help our kids navigate this very dangerous and even deadly health issue.  More

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      Talking So Your Teens Will Listen

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      By Tanni Haas, Ph.D. | Contributor
      Every parent of teens knows how difficult it can be to get through to them, but it doesn’t have to be this way. There are many things parents can do – and a couple of things they shouldn’t do – to get their teens to listen. Here’s what the experts suggest:
      Give Good Reasons
      Teens like to know that their parents are taking them seriously, so if you want them to listen, don’t just state your opinions or tell them what to do. “Tell them why those are the right opinions,” says Rachel Ehmke of the Child Mind Institute. Give good reasons for what you say, and for what you say they should do.
      Allow Time For Processing
      It can take days, even weeks, for teens to process the substance of a conversation, especially an important one. If your teens don’t understand what you say at first give them some time and space to reflect on the conversation before you bring it up again. “You might be surprised how your conversation evolves over time,” clinical psychologist Dr. Gregory Jantz says.  
      Rephrase Statements as Questions
      Teens will reflect more and better on what you’re telling them when you rephrase statements as questions instead of commands. “By asking questions,” says Josh Shipp, the author of The Grown-Up’s Guide to Teenage Humans, “you as a parent are getting your children to think critically on their own.” Try to ask questions that make your teens reflect on the causes and consequences of their actions.

      “Stop talking before your teen tunes out.”

      Keep It Short and Simple
      Keep it short and simple, says therapist Mendi Baron: “If you’re going on and on, your teen is thinking, ‘I got the point already, please STOP.’ So, stop talking before your teen tunes out.” This is difficult advice to follow. As parents, we like to unload whatever is on our minds but doing that can easily backfire.  
      Don’t Lose Your Temper
      Don’t lose your cool, even if your teens are rude or aren’t paying attention to what you’re saying. If you lose your temper, the conversation can escalate into a shouting match. Remember that you’re the adult and should be better able to control your emotions than your teens. Instead of losing your cool, Ms. Ehmke says, “count to ten or take some deep breaths before responding.”
      Don’t Lecture
      “If you lecture,” Mr. Shipp says, “your teen tunes you out. And when that happens, you become the boy who cried wolf. You could have the most pertinent information, but your teen won’t hear a thing you say.” Also, a lecture is a monologue where only you get to talk and not a dialogue between you and your teen where both get to speak.   

      A lecture is a monologue where only you get to talk and not a dialogue between you and your teen where both get to speak.

      Don’t Use Judgmental Language
      “No one likes to feel judged,” says professional counselor Trudy Griffin. “If you come off as critical or judgmental, your teen may shut down.” Try to say what you want to say in as neutral a way as possible. When you “remove judgmental phrases from dialogue with your teen,” Ms. Griffin adds, you’ll be surprised by how much more they’re willing to listen to you.”  
      ABOUT THE AUTHOR:
      Tanni Haas is a Professor in the Department of Communication Arts, Sciences & Disorders at the City University of New York – Brooklyn College. More