Get your mind in the game

Get your mind in the game -  learning how to save, invest, donate and spend money takes time, dedication and focus.  Its more fun when you know.  Start by watching the videos right here on this blog to get you thinking.  Go Team!  Coach Brett Ellen

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

April is Youth Financial Literacy Month

A whole month dedicated just to you!  Learning how to save, invest, donate and spend money.  It's Youth Financial Literacy Month.  Start by watching the video's right here on this site.  Scroll down a bit and to the right.

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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How Can I Earn That?

So you’ve either earned or been given some money, but what do you intend to do with it? The age-old lesson of need versus want it too often lost in today’s vast world of consumerism. The newest, greatest version of everything is coming at us faster than ever, making it easy for us to get confused about what we really need to spend our money on and what is just too cool to pass up. As soon as my children were old enough to point and ask for a toy or candy bar in the check-out line, I taught them to say “how can I earn that?” rather than “I want that”. This simple little step can completely change how you view all the stuff around you. If it isn’t worth doing an extra chore to get it, then maybe it really isn’t that important to have, after all. And if you choose to put a little skin in the game (earn the money to pay for the purchase) it makes you appreciate the item all the more.

How to knock your parents socks off!  Stop asking your parents to buy you things and starting asking them "How can I earn the things I want?"!

What Would You Do?

Here's an idea! This Thanksgiving, while you are sitting around the table with all of your family and friends, play this game. Ask everyone at the table, “What would you do with $1?” After everyone has answered, then ask, “What would you do with $100?” Finally, asked everyone, “What would you do with $1 million?” This kind of game can really get you thinking about what is important in your life and in the lives of the people you love. Notice if anyone starts to change their mind about what they would do with the money after they’ve heard ideas from others. Are you surprised or inspired by anyone’s answers? Money is not the end game. It is a tool to help you achieve what you really want to do in life.

This holiday, think about what is most important in your life and be thankful.
Happy Thanksgiving!

What’s the Difference between a Bull Market and a Bear Market?

You may have heard the terms Bull Market and Bull Market and wondered what they mean.

The stock market goes up and down all the time in little amounts and sometimes in big ones, but then it will go in the other direction for awhile. This is why the stock market is considered a risk when investing. Say you buy your bike today but it goes on sale tomorrow. That would be an example of what can happen in the stock market. Of course, you could also buy your bike on sale and pay less than someone who buys a bike a few days later when the sale is over. You can read about how the value of stocks change in our earlier post, How much do stocks cost?

But, sometimes the stock market goes in one direction, either up or down, pretty consistently for a few months. If the stock market goes up by 20% for two or more months, it is said to be a Bull Market. Most investors are excited about Bull Markets because it means that the value of their investments is going up. This is like you buying your bike and being able to sell it to your neighbor later for more than you paid for it.

If the stock market goes down by 20% for two or more months, that is called a Bear Market. The most famous Bear Market was the Great Depression in the 1930s. Most investors believe we are in a Bear Market right now because we are in a recession, and unemployment is high. You may have heard about this on the news or from your parents. Some people like Bear Markets because they can buy things at a low price and then wait for them to go up in a Bull Market.

Doesn’t it make sense to buy something when it is cheaper and then sell it when it is worth more? Things like bikes, tend to go down in value (you will probably have to sell it for less than you paid for it), but some things, like rare baseball cards or other collectible items can go up in value as time goes by. The problem with the stock market is that nobody knows when the value of stocks (or bonds) will go up or down.

This is why it is a risk. The best way to invest in the stock market is to invest for the long-term, for many decades instead of many years. That way you go through a lot of Bear and Bull markets before you sell your stocks.

The market goes up and down for a lot of reasons. We covered some of these in an earlier post. What causes the stock market to go up and down?

There are many theories about why the terms Bear and Bull are used. One of the most popular is that Bears rise up above their prey and come down, while Bulls use their horns to thrust up.

I’m Just a Kid! How Can I Save For College?

Adults have been told that they should have begun saving for college costs as soon as you were born! Well, I suggest it’s never too early for a kid to start saving money for his college expenses either. Here are some things you can do:

• Start earning your own money with a part-time or summer job. (Look at my old posts for ideas about how kids can earn money.)
• I’ve talked about how you can divide your money into categories to Save, Spend, Invest and Donate. Set aside a portion of the money you save for college expenses.
• Ask your parents for help opening a college savings account. You might even ask them to consider making a matching contribution each time you deposit your own money from work or gifts.
• When asked for gift ideas, suggest money for your college savings account.

Parents: Evaluate the potential benefits of contributing to tax-advantaged college savings vehicles, such as a 529 plan or a Coverdell Education Savings Account. Read “529 Lesson Plan: High Scores for 529 College Savings Program” 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?

Pay Attention, Parents. This One’s for You!

Who are our children’s first teachers? That’s right…parents. April is Financial Literacy Month, so I’m doing what I can to help kids understand and become comfortable with financial concepts. Here’s a list of things YOU can be doing to help teach the valuable skill of money management to your child.
Ten Tips for Teaching Kids about Money

1. It’s never too early to start talking about money with your kids.
2. Don’t make personal finance topics taboo from kids. Talking about money is a learning opportunity. Any discussion is better than silence.
3. Consider giving your kids an allowance. Set expectations about spending, saving and giving to charity.
4. Encourage your kids to make their own money. That way, they connect work to money. Money is a means to an end, not an end in itself.
5. Teach your child to ask, “how can I earn that?”
6. Make sure saving is a habit. Reinforce it. Don’t forget to do it yourself.
7. Don’t say “we can’t afford it”, say “we don’t need that right now.”
8. Keep talking about issues like debt and credit with teenagers, even if they act like they are not listening. Credit/debit cards can feel like plastic funny money.
9. Kids remember and copy parents’ behavior. So model good stewardship of money no matter how much you have. Discuss the basics of budgeting.
10. Think of a financial planner as a resource. Just ask. They can help you talk with your kids about money.

Six Simple Steps to a Savings Plan

Build from the ground up with solid foundation!
• STEP SIX - Review Your Progress
Are you on track to reach your goals? How long will it take? Do you need to make any adjustments?
• STEP FIVE - Identify Your Earnings Plan
Will you be getting an allowance? Would you like to get a job? What other income can you expect?
• STEP FOUR - Establish a Savings Vehicle
Do you want to save your money at home? Do you want to open a bank account? Do you want to start a collection?
• STEP THREE - Set Up a Budget
How will you earn money? How much money will you need to reach your goals? How will you divide your money if you are saving for 2 budget items?
• STEP TWO: Set Your Goals
What are your financial goals? What do you WANT and what do you really NEED? What do you need now and what can wait a few months or even a year?
• STEP ONE: Get Educated
Where does money come from? How does a bank earn money? How can you make your money grow in value? What is compound Interest? (Hint: Check this blog’s archives. I’ve answered these questions before.)

What have you done lately to help out in your community? You may have heard on the news or from your parents that our economy is not doing too well lately. That means more people than ever are struggling to pay bills and even provide food for their family.

No matter how old you are, there are many creative and inexpensive ways to help others this summer.

Take a Stand With Sunkist
Kids ages 7 to 12 can register at http://www.sunkist.com/ and submit their "Take a Stand" pledge and receive a free Sunkist lemonade stand, while supplies last. Then sell glasses of homemade to raise money for a charity.

Angels in Action
Students ages 8 to 18, will be recognized and rewarded for exemplary acts of service to benefit their community, a charity or cause. Visit http://www.angelsoft.com/ to get great ideas for creative projects by reading about last year's winners on the Angel Soft site.

Stamp out Hunger
It is easy to help local hunger organizations at a very low cost by donating coupon bargains.
Students can use the Grocery Deals by State page on The Savings Mom Web site, www.savingsmom.com, which lists grocery coupon deals in most states.

Clip coupons and buy several items to donate yourself. Or make a flyer asking neighbors to stick a few canned items in a sack and leave the sacks on their front porch on a designated day. Then go around collecting the bags to be delivered to a local food pantry.

Start a Great American Bake Sale
Sponsored by Domino Sugar and C&H Sugar, kids can sign up to receive a Participant Kit which includes everything you’ll need to get baking and starting selling your treats. Donate the money you earn to an area homeless shelter.

How Much Do Stocks Cost?

When you think about buying stock, you should remember that there is risk that goes along with it, but there is also opportunity. So if someone asks the question “what are the best companies to invest in,” the answer must take into consideration the amount of risk that investor is willing to take. If the investor says, I don’t want to lose this money to make a fortune, but I really think it’s a great company - there are lots of companies that look promising. Many of them you’ve never heard of, but they believe they’ve got the next newest idea.

Have you ever heard the expression “Time heals all wounds”? When you get older, you’ll have typical grown-up experiences – like with boyfriends and girlfriends. You’ll break up and think the world is coming to an end. But over time, you’ll get over it and your life will get back to normal and things will be OK. Well it’s similar with stocks. If you invest in enough stocks and diversify – buying some companies that are less risky and some with medium risk and some that are real risky – over time it should all be ok. However it's important to remember that diversification doesn't guarantee you will make money and it is still possible to lose money in your investments.