Fredericksburg Parent

www.FredericksburgParent.NET 19 Rich Dad, Poor Dad: For Teens – The Secrets About Money That You Don't Learn in School Robert T. Kyosaki This is a think-outside-the-box read that introduces younger and older teens to the idea of mak- ing your money work for you. The author introduces financial concepts such as cash flow, liabilities and assets, passive income, and exploring entrepreneurship as opposed to more traditional career routes. There is also a section on ways teens can make money. Why Didn't They Teach Me This in School? 99 Personal Money Management Principles to Live Carl Siegel Originally intended only for the author's children, this is a quick, easy-to-read guide filled with practical (sometimes unorthodox) financial advice based on personal experience. The book contains 99 principles broken down into sec- tions that cover topics like budgeting and saving, investing and debt. The Infographic Guide to Personal Finance: A Visual Reference for Everything You Need to Know Michelle Cagan, CPA For the student who is more of a visual learner, author and CPA Cagan delivers bite-sized bits of important information using colorful and eye-catch- ing graphics and charts. Topics include Choosing a Bank, Health Insurance and What Not to Buy. Books to Introduce Teens to Personal Finance WRITTEN BY RHIANNON ELLIS Think About Investing Some families may choose to stick with the safer route—traditional savings—but for those willing to risk it, investing may be a viable option. "Depending on your personal income and situation, next consider using a Roth IRA, employer retirement plan or traditional IRA," suggests Brown. "Within these accounts, you will have access to stock, bonds, mutual funds. So many pros and cons come along with both saving and investing. On the one hand, saving seems more practical because the dollar amount in your account will never decrease—a risk that comes with investing. However, the value of that dollar amount in savings could decrease over time because of inflation. "Your financial advisor/fiduciary can help you decipher how aggressive or con- servative to be with your investments, based on your specific financial goals, time horizon and risk tolerance," says Shaulis. Be Wise About Debt Acquiring some debt is unavoidable for most families. But too much debt can weigh families down and lead to major financial problems, including damaged credit and lost assets. "Taking on debt can be inevitable but it shouldn't be permanent," says Brown, who says in his home, taking on debt is a family matter. "We make it a family decision to go into debt and we make it a family goal to eliminate it as quickly as possible." For families who find that their debt continues to grow despite making regu- lar payments toward reducing it, Shaulis suggests managing spending habits by getting a formal financial plan done. A financial planner has many expert tips and tools at their disposal to get their clients on the path to elimi- nating their debt. "One technique is to try to pay off your high-interest debt first," says Shaulis. "This may save you more money over the long haul because you should be paying less interest overall. Once you have a debt paid off, reallocate that payment to the next highest interest debt and so on. This is called the snowball technique." Live Within Your Means (But Still Enjoy Luxuries) Part of smart financial planning is to plan for all expected expenses, including the fun ones and not just monthly bills. Brown says it is possible to enjoy luxu- ries with a little planning. "I've often said to my family and clients 'Christmas, birthdays and anniversaries happen at the same time each year, so these are not unexpected expenses,'"says Brown. "Save ahead for major purchases and expenses." 7 Habits of Financially Eff ective Families (continued from pg 17) 3 You're off to great places, Today is your day! Your mountain is waiting, So…be on your way! – Dr. Seuss

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