Goal Setting for Teens

The population with the largest increase in bankruptcy rates in 2004 was young adults under the age of 24! Teens and young adults must learn about financial skills earlier than most parents think.

Financial literacy includes having a working knowledge about the issues everyone faces regarding money – getting money, spending money, and keeping money. Too often information is only focused on two narrow aspects of these large topics, budgeting and investing in the stock market. The skills that everyone needs to develop in order to be financially literate in today’s world are much more complex than that. Let’s take a look at each of these topics and what they mean to young people.

Getting Money – In the U.S. economy, getting money usually means earning a wage. Young people need to understand that what you earn is generally dependent on the knowledge and skills you possess. The typical American high school curriculum that just gets you a diploma does not usually develop any particular knowledge or skill set that will increase your earnings in any substantial way. There are programs in many schools that may develop some degree of skill specialization, or prepare you for higher education. These are the immediate goals for young people in order to address their future financial needs.

Additionally, the concept of compounding interest and the time value of money is a critical foundation for understanding the benefits of saving and investing and the drawbacks of borrowing. Time is on the side of youth in this country, but they need to know about the opportunity to start saving and the power of compounding to take advantage of the circumstance granted to everyone.

Spending Money – In 2005, Americans spent more than they earned. That might lead one to believe that we know how to spend! We do, we just don’t do it well. In order to spend money well we need to be aware of our goals, short term and long term, and make decisions that support the attainment of those goals. Spending happens on a daily basis for most of us, but are we really thinking about the things we want when we spend our money?

Spending money also means knowing how to take on debt in a manner that is appropriate. Discovering what financial strategies fit well with your personality and temperament will go a long way in making solid, consistent decisions. That in turn allows for credit scores to remain high enough to provide benefits on insurance rates and loan rates.

Consumer protection, identity theft, phishing, risk management, and predatory lending are all topics that everyone needs to be aware of in order to be financially successful today.

Keeping Money – A long time ago, you could put your savings under your mattress and you were set for most financial situations. Today, not only do you need to save, but you need to put your money to work for you. Discovering what investing tools motivate you to stay informed and on top of your investments is vital. That motivation also spurs you to continue to save. This positive spiral allows financial success. Not knowing what to do, investing poorly and loosing money, or putting your money in someone else’s hands are setting yourself up for failure. Investment decisions are yours alone. There is plenty of advice floating around. How do you tell the good advice from the bad? You need a basic financial knowledge. That will eliminate most of the risk of falling for a scam.

You also need to know how to keep the money that you make through your investments. With plenty of tax plans to assist with this, deferring or eliminating much of the tax consequences of making money through investing is available to everyone, not just the very rich.

But if you have developed basic financial literacy and live according what you know, you will be rich.

Most of us enjoy a lazy day when we can sleep in, putz around and just relax a little – and our kids are no different. However, when the dog days of summer come, some teens take that one “couch out” day and stretch it over an entire summer break. Here are some tips to combat summertime teen laziness and keep your teen active and engaged.
Communicate Expectations – Tell your teen in a nonthreatening but firm manner that you will not accept their staying in bed all morning and afternoon. It is perfectly reasonable to ask that they get up at a decent hour. Explain that you want them to do more than merely watch TV, play video games, or visit social networking sites all day.
If your teen wants you to help pay for their summer activities, they should be willing to abide by a few summer guidelines. Set an age appropriate, specific time that you expect them to be home, based upon the level of trust they have earned. Ask them to take on a couple of extra chores during the summer to earn some pocket money. These chores could be for you or someone else, but make sure they go above and beyond the normal, everyday chores that every member of the family should be expected to do.
Get Them Engaged – Whether you ask them to help you more around the house, participate in volunteer activities in the community, or help them get a job, you want them to be engaged in something worthwhile. Give them encouragement to help at a YMCA, children’s program, or nursing home. They may find they truly enjoy these volunteer activities and you will help them appreciate the joys of serving others that will last a lifetime.
Help them find volunteer positions by calling around to local places of worship, daycares, charities, or nursing homes. Local businesses may be hiring summer help; offer to help them find a job to earn some extra money. This will help them learn to manage money, but will also help them realize the value of their time. If they get paid by the hour, they might be less likely to fritter their time away.
Spend Family Time – Avoid giving lectures about what they should do during the summer. (Lectures, period, are ineffective with teens.) Instead, find activities that you can do with them. You don’t have to spend every waking moment with your teen, but take some time to take them shopping, go to a movie, or out for a coffee. Keep it relaxed and let your teen open up to you in their own time and way. Summertime is a great time to reconnect with your teen. Don’t let these weeks go by without taking this time to slow down and just be together.
Encourage Physical Activity – Take time to learn or play a new sport with your teen. Not only will this help your teen be more active during the summer, it’ll help you get some much needed exercise, too. Boys in particular are more likely to enjoy “side by side” activities. These are often great times to open dialogue with your son about important issues. Give tennis, swimming, cycling, or rollerblading a try. You both will benefit your health and well being.
Parents all over the country complain that their teens get lazy during the summer break. But teens, just like toddlers, need guidance, clear communication, and reminders of your expectations in order to be successful. These tips should get you well on your way. Ask your teen if there are things they’d like to accomplish before school starts, and then help them to meet those goals.

A little over a week ago, Adam provided us with three great insights for parenting troubled, angry teens. Before reading this article, I encourage you to please read the first article about managing aggressive teens. As a recap, the first three points were
1. The parent should always control themselves.
2. The parent needs to recognize the signs of potential aggressiveness in their teen.
3. If a parent is the source of the problem, they need to remove themselves.
So what does it mean, that a “parent should always control themselves”? It sounds simple and self-explanatory, but isn’t there more to this simple truth? Or, am I just missing the point?Parenting Troubled Teens Requires Parental Self-Control
I asked Adam if he could elaborate on the first point being discussed. I asked questions such as:
1. The parents are the boss, why can’t they react to their teen’s angry behaviors?
2. What are the repercussions if parents do not control themselves?
3. How can a self-controlled parent calm an aggressive situation with their teen?
So what is the point for parents practicing self control with their angry teen? Some of his answers are as follows. Adam said, “Controlling one’s self IS the point. A parent cannot control the actions of their teen. That’s an ever common problem. The parent attempts to control the behavior of the teen by making it worse (yelling, aggressive behavior, grounding, belittling, etc).
Behavior modification is most effective when it comes from behavior modeling. In other words, the parent MUST set the tone of the conversation. Realizing that the object is to get through the “moment” in a civil, caring and loving way. Even if the outcome is not desirable. With each “modeled” moment, the teen will see new responses to the ongoing situation.
The situation must be dealt with. In other words, the parent should not run around the issue, rather attack it head on being honest and open, BUT in control of their own emotions.”Parents Cannot Control Their Teens, Even if the Outcome is Not Desirable
The sad truth is that many parents do not control themselves when their troubled teens are acting out. They react, yell, belittle, etc… I’m not talking down to you -the parent- because I know it’s next to impossible to control your actions when your angry teen is yelling at you, swearing, threatening, and even physically demolishing your home and belongings.
Really, what parent is perfect in this? None. BUT, with practice and dedication, you CAN learn how to control yourself when your teen is aggressive and out of control.
Your struggling teen WILL see the change in you, and your teen will learn that even though he/she is angry, they don’t have to respond aggressively. You cannot control your teen, but you can change your response to one that is loving, caring, and civil.
This isn’t easy…we know. But, we encourage you to take these steps in parenting your teen.
1. You cannot control the actions of your teen.
2. You MUST set the tone of the conversation.
3. Your goal is to get through the “moment” in a civil, caring and loving way, even if the outcome is not desirable.
We are here to support you, and if you ever have a question or want a community to talk to other parents about your teen, please join our forum. You are doing a great job, please continue and be encouraged that we are here for you and know what you are going through.