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SMART MONEY TIPS
Institute of Consumer Financial Education
18 Ways For Children or Grandchildren to Learn
The Value of Money
Money gives people - both young and older - decision-making
opportunities. Everyday spending decisions can have
a far greater negative impact on your children's financial
future (and yours also) than any investment decisions
they (or you) may ever make. Educating, motivating and
empowering your children to become regular savers and
investors will enable them to keep more of the money
they earn and do more with the money they keep! Click
here for 18 tips, plus more information for children.
Some Easy Ways to Learn About the 10 Commandments
of Money
If you are a teenager who is always broke, and wondering
why, maybe it is your spending habits. Last year a typical
teenager spent over $5,200 of their own discretionary
spending - money that you decide where and what to spend
it on, as opposed to something you have to pay for,
like a utility bill. The $5,200 also included any spending
done on parents' behalf, whether for personal or household
purchases, according to a study by Teenage Research
Unlimited (TRU), the nation's premier market-research
firm focusing on the teen market.
A good question to ask yourself is; “What do
you have to show for all that spending?” You may
not have much to show for it, now.
The following tips, however, will help you learn about
the wiser spending of money and, importantly, how to
hang on to some of it. Click
here for details.
Thrive by Five™: Teaching Your Preschooler
About Spending and Saving
Children learn about money from many sources. Long before
they enter school, they observe adults using money and
buying things. They watch television daily and see thousands
of commercials each year. Like it or not, money is a
part of your preschooler’s life.
What children witness affects their attitudes about
money. Some of these beliefs will help them as adult
consumers and some will not. For example, they might
get the message that saving is important or they might
not.
As a parent, you will not be the only influence on
what your child learns about using money. But when you
teach basic lessons about money, you increase the chance
that your child’s values will be similar to yours.
To access simple activities and resources which are
parent-and-child tested on the following topics:
- Teaching how money works and what it can do
- Talking about how your family uses money
- Modeling good money management
Additional
Resources
Youth-Oriented Articles
Helping The Kids Buy Their First Car The Right
Way
by Remar Sutton
Remember the first time you bought a car? Prices and
sales tactics have changed a lot since then, but one
thing remains the same: The first-time buyer usually
is an easy mark for a salesperson. Why? Most young buyers
are enthusiastic and untutored, which leads to big profits
in the auto business. Here's a quick plan to rein in
their enthusiasm and raise their negotiating skills.
- Teach kids to budget before they shop. How much
can they spend in total dollars and/or per month?
The figure should include allowances for insurance,
gas, and maintenance.
- Teach them to do their homework before they shop:
What cars in their price range are mechanically reliable?
A search through Consumer Reports auto issues will
help. What would insurance cost for a car like that?
A quick call to your insurance agent will answer that.
- Teach them never to buy on their first visit to
a dealership, even if they love the car. People who
buy on the spot always pay more. A smart young person
will find two cars at two different locations and
play those two sellers off against each other. Prices
tumble when real negotiating begins.
- Teach them how to recognize the best price. When
they've found the car they like, ask your credit union
to tell you what that specific car's "loan value"
is, and make the loan value figure your targeted buying
price. Negotiate up slowly from that figure.
- Teach them the power of smart financing. If your
kids are paying cash, fine. But if they are financing--and
particularly if you're signing with them--right now
is the time to show them how to comparison-shop financing.
Ask the seller to give you a completely filled out
copy of the finance contract and bring that contract
to your credit union. Compare each item on the seller’s
contract to the credit union contract. Nine times
out of 10, your credit union will be cheaper.
A first-time buying experience should be an exciting
experience. Follow these guidelines, and it will be
a smart one, too.
Editor's note: Remar Sutton's car-buying tips have
been featured on "Good Morning America," "Today,"
"20/20," "Nightline," and in magazines
such as People, Newsweek, and Credit Union Magazine.
He's president of the national Consumer Task Force for
Automotive Issues. He writes this column exclusively
for credit union members.
Copyright 2002 Credit Union National Association,
Inc. Information subject to change without notice. For
use with members of a single credit union. All other
rights reserved.
Additional Youth-Oriented Financial Education
Links
Young
Money
Practical
Money Skills
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