Graduation Time

Chances are you know someone who is graduating in the coming weeks.  A good time to think about your own planning for higher education.  Meet with your school counselor to map out a plan of what you need to do now to get started - things like knowing which classes to take, when to apply for scholarships and grants and the type of school you want to go to.  It has been estimated that a year of college costs about $30K.  Start a plan.  Go Team!  Brett Ellen, The Kids Finance Coach

Tell your money exactly where to go

A great quote I want to share again...it will get you thinking. "It is better to TELL your money where to go than to ASK where it went." April is Financial Literacy Month and keep learning how to save, invest, donate, and spend your money right here on this site and at places like  www.afn-net.com.  Go Team!  Brett Ellen, The Kids Finance Coach.

find a treasure chest

There is more treasure in books than in all the pirates' loot on the Treasure Island - Walt Disney.  Walt said it best.  It's School Library Month...a good reason to celebrate the treasure in books.  Stay curious.  Go Team!  Brett Ellen, The Kids Finance Coach

Make Today Count Rule of 72

Start today! Take action because ...The Rule of 72 is Cool! When people invest money, they do it so they can make money. That’s called "getting a return on your investment.” Sometimes they want to know how long it will take to double their investment. To do this, we use the Rule of 72.

Take 72 and divide it by the amount of return on your investment. That is the number of years it will take to double your original investment.

For example: Ten year-old Keanu buys a bond for $10,000 and earns 6%. 72 divided by 6 = 12. So every 12 years, Keanu’s money doubles. When he is 22, he will have $20,000.

What if Keanu leaves that money alone until he retires at 60 years old? His money will double 4 times by then and he will have $160,000.

Let’s say Keanu used that original $10,000 and bought a stock that earns 12% return (72 divided by 12 = 6) he will have $20,000 in 6 years when he is 16. If he leaves that money alone until he retires, it will double 8 times and he will have over $2.5 million when he is 60 years old.

The Rule of 72 is based on a principle called “compound interest” (return), which is sometimes called “The 8th Wonder of the World”!

Go Team!  Brett Ellen, The Kids Finance Coach

Tell your money where to go

A great quote I want to share...it will get you thinking.  "It is better to TELL your money where to go than to ASK where it went."  April is Financial Literacy Month and as The Kids Finance Coach you'll see extra postings and resources right here and I invite you to click the learning center tab at  www.afn-net.com

Know your ABCs

You can learn about money by starting with your ABCs.  First up ... A:  Asset - Anything owned that has monetary value.

 

get to know this Principal

Principal - In a security, the principal is the amount of money that is invested, excluding earnings. In a debt instrument such as a bond, it is the face amount.  See more financial terms in the glossary.

What does AGI stand for anyway?

From Ajusted Gross Income to Zero-Coupon Bond.  We've got a robust glossary of financial terms just one click away.  http://www.afn-net.com/glossary.cfm

College Bound

What Can You Do To Start Planning For College?


Most likely, your parents have already started saving for your college education. But how have you gotten involved in preparing for college? Working together with your parents to be part of the planning process can be very educational. Although you may not have the same amount of money as your parents do to save for college, there are other ways you can help your family plan for college.

Maintain good study habits which can help you achieve good grades. Academic scholarships are an excellent source of money to help pay for college.

Take college preparatory classes in high school and start thinking about possible career choices. What you want to be when you grow up may strongly influence your choice of college. Most colleges prefer to accept students who have taken more than the basic requires for high school graduation.

Set aside money from part-time jobs to save for college expenses. Tuition is just a part of the cost of going to college. You have to buy books, pay for room and board if you go away to school, travel costs and general living expenses, as well.



Parents: Start talking to your kids about college planning and get them involved with the process. This will help them take ownership of their educational goals. Read “How Can I Save for My Child’s College Education?” to learn more about financial tactics for college planning.


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What About Scholarships?

We’ve talked quite a bit about how to save money for college. But keep in mind that scholarships can also help pay for your college expenses. Although there are more options available for students with top grades, academic scholarships are not your only option. Scholarships are offered for a variety of factors in addition to academic performance, such as athletics, volunteer work, minority status, field of study, or even overcoming adversity. Typically, you do not have to repay scholarships and grants.

There are numerous Web sites with information about scholarships and financial aid. For example, fastweb.com and finaid.org contain information about thousands of scholarships. In addition, fafsa.ed.gov provides an overview of federal student aid programs, including Pell Grants, campus-based aid programs, Stafford Loans, PLUS Loans, and others. Also, scholarshipexperts.com offers a free scholarship search targeted to the student's profile. Don’t forget, your local library and high school guidance office may have information about state-sponsored aid programs and scholarships sponsored by local organizations.
 

Parents: Financial aid can be a valuable source of funds to help finance your child’s college education. Don’t assume you won’t qualify. Read “What About Financial Aid for College?” to learn more.

What Can You Do To Start Planning For College?

Most likely, your parents have already started saving for your college education. But how have you gotten involved in preparing for college? Working together with your parents to be part of the planning process can be very educational. Although you may not have the same amount of money as your parents do to save for college, there are other ways you can help your family plan for college.

• Maintain good study habits which can help you achieve good grades. Academic scholarships are an excellent source of money to help pay for college.
• Take college preparatory classes in high school and start thinking about possible career choices. What you want to be when you grow up may strongly influence your choice of college. Most colleges prefer to accept students who have taken more than the basic requires for high school graduation.
• Set aside money from part-time jobs to save for college expenses. Tuition is just a part of the cost of going to college. You have to buy books, pay for room and board if you go away to school, travel costs and general living expenses, as well.

Parents: Start talking to your kids about college planning and get them involved with the process. This will help them take ownership of their educational goals. Read “How Can I Save for My Child’s College Education?” to learn more about financial tactics for college planning.

Kids Finance Coach Donates $1,000 to School During Financial Literacy Month

I recently gave a presentation to about 900 high school students at Oaks Christian School. We talked about the basics of money management; including budgeting, responsible spending, charitable giving and investing. The energizing presentation was complete with music, a T-shirt launcher and prize wheel! The students were tremendously engaged and informed, which made for a really exciting time. (Click here if you want to find out how to bring The Kids Finance Coach to your school or group!)

While at the presentation, my team and I awarded a $1,000 check to the non-profit school. According to the school's headmaster, the donation was the first time the school had actually received a donation from one of its speakers. But for those of you who have been following my blog regularly, you know who committed I am to charitable giving as one of the four building blocks of money management: save - spend - donate - invest. What better way to teach those students about giving back, than by showing them how it's done?

How have you been giving back, lately?

Wow! What a Work- shop!

Last month I held my first Kids Finance Coach Workshop at my home and it was a blast! We invited kids and their parents to my house for an afternoon of fun activities to learn about money. We talked about things like allowance and spending, and even why and how to start saving money. Of course we couldn’t talk about money without learning about charitable giving. Money really can be used to help improve the lives of others.

Parents, interested in having Coach Brett visit your community or starting a League of your own? Contact Denise Villanueva.

Bankers nationwide are celebrating National Teach Children to Save Day on Tuesday, April 21. Founded by the American Bankers’ Association Education Foundation, the day is dedicated to educating youth about the importance of saving.

Parents, Here are Five Tips for Teaching Financial Responsibility

1. Value of Saving – Teach children why you save and why they should save by using everyday examples like buying groceries. Illustrate how savings can grow by collecting money in a jar or container.
2. Needs vs. Wants – Explain the differences between needs and wants and how to prioritize spending. Use examples like toothpaste vs. another video game.
3. Allowance – Consider an allowance to teach how money is earned. Provide an allowance in a way that children can save part of it and spend part of it (for example, if an allowance is $5, give five one dollar bills so some can be saved and some spent).
4. Set a Goal – Setting a goal for savings or to buy a desired item will help teach a child to be responsible for him/herself and reinforce the feeling of accomplishment when the goal is reached.
5. Open a Savings Account – Establish regular saving habits that will last a lifetime by opening a savings account with your child.

CHECK OUT THE LINKS on our sidebar for lots of fun resources to help your children save!