This post was featured at anja merret, Confessions of a Novice, and The Skilled Investor.
It hasn't been long since I was a teen. Now that I'm an 'adult,' there are many things I wish I had known and done during my high school years, particularly when it comes to money. Not only would starting then have given me precious time to sock away and grow the money I had, it would have given me invaluable practice for when I had more serious cash and obligations to deal with. Smart teens will take advantage of this time and make these smart money moves:
1. Learn the value of a dollar. This does not mean knowing that a dollar is worth 100 pennies. It means knowing what a dollar will buy, what it takes to earn money, and how to get the most from the money you earn and keep. This is the most essential step in becoming financially successful. Teens with no concept of the power of money are unable to make good decisions about what to do with it. A great way for teens to learn this is by getting a job and/or having to pay for things on their own. This will quickly teach them about the 'real world' of money.
2. Learn to save. This goes hand in hand with learning the value of money. Regularly saving money is a vital part of finances that seems to be going out of style here in America. Teens today must learn to save if they are to ever be financially stable. Whether a teen has a job or gets an allowance, they should be encouraged to save a set amount of all their income. When the time comes to make a purchase larger than a $15 DVD, she will be proud that she was able to buy it on her own.
3. Get a savings and checking account. This is the place to hold those regular savings. The purpose isn't so much to protect or grow assets, as it is to teach teens about how money moves around in the world, and how to keep track of it. It can also be the first lesson in investment as they learn that money can make more money, but not if it's sitting in a can on your dresser.
4. Get a credit card and learn how it works. Credit cards are a way of life these days. No teen should be deprived of the opportunity to use one while still under the watchful eye of an adult. Many naive college freshmen have racked up serious debt because they used their first credit card without a clue.
Teens would be wise to get a card with a low limit, make affordable purchases, and always pay off the balance due each month. This will help them to understand that credit cards are for building credit and protection of transactions, not for purchasing things you don't have enough money to buy. They will also quickly learn the consequences of late payments, as well as high interest rates, should they choose to only pay the minimum payment.
5. Get a Roth IRA and learn the basics of investing. Although teens may give you a glossed-over look when you say 'retirement,' learning to plan for their financial future while they are young is a very smart thing to do. They have the most important financial ally on their side: time. Learning about risk, the power of compounding, the plethora of investment options available and more will start teens down the right financial path early.
Consider opening a Roth IRA for a teen with a job. This will give them the chance to practice what they have learned about investing, and their little nest egg will grow tax-free over the next decade. Parents can give their kids an even greater advantage by funding part of their teen's Roth IRA, as well: match the amount the teen earned, or up to $5000, whichever is less.
Teens can really make some smart financial moves when given the guidance and opportunity to do so. Even if they roll their eyes about 'financial responsibility,' they will surely show some excitement at watching their money grow.
5 Smart Financial Moves for Teens
Top Ten Ways to Save at the Grocery Store
This post was featured at angelawd.
The grocery store bill can be one of the biggest expenses for a family. Luckily, it is also one of the easiest to shrink. Since time is money, the following is a quick and dirty guide to saving cash in the grocery aisle.
1. Don't shop while you are hungry! Even if you credit yourself for having great will power, you will inevitably buy more when you are hungry than when you are not. The most effective way to save money is to spend less of it.
2. Plan your meals and make a list. Taking a bit of time once a week to plan your meals will save a surprising amount of money on your food bill. Write down the meal, the day you plan to make it, and all the ingredients you will need to buy to make it. This saves you time, energy, and extra trips to the store. It also helps you to use food before it spoils, saving you even more money.
3. Stick to your list! So much easier said than done, and so important! Passing on impulse buys will save you a good deal, because these items tend to be convenient, and therefore more expensive. They also tend to be junk food, and avoiding them will save on your waistline, as well.
4. Use coupons effectively. Although there are dozens of coupons out there each week, using one on an item you wouldn't buy anyway simply causes you to spend more money. Instead, only use coupons for items you buy often or plan to use. If possible, maximize coupons by using them when the item is also on sale, or by purchasing as many of the product as allowed.
5. When something is on sale, buy a lot of it. Most grocery store items will go on sale in a somewhat predictable cycle. When a non-perishable or freezable food that you buy regularly gets marked down, buy enough to last you until it goes on sale again.
6. Buy in bulk...sometimes. This tip applies only to large families, or non-perishable and frozen goods. Wholesale retailers have great prices, but if the food ends up going bad before you can eat it, that's money lost.
7. Consider the price per ounce of what you buy. Many grocers list the price per ounce, pound or unit on the shelf label. It's very tiny, but very helpful for comparing prices between different brands, and even different foods.
8. Compromise on name brands. Most name brands are more expensive due to advertising and packaging, not necessarily because of quality. Try different products to see where you can make the switch and save some cash.
9. Use the preferred shopper card, when available. They are often free to sign up for, and will save you money every time you shop.
10. If possible, shop during a weekday in the morning. The store will be less crowded than at other times. Avoid Mondays and Saturdays, as these tend to be the busiest days of the week at the grocery store. When you are rushed, you are more likely to forget items you need, buy things you don't, and miss good deals.
Following even just a few of these tips will save you money. Following all of them, all of the time, will reap you great rewards: more money, time, energy, and sanity. And those are things we could all use.
