Halah Touryalai, Forbes Staff
During a lesson on credit one of Stuart Ritter’s college
students raised her hand and asked him to clarify what he meant by
“carried balance.” He explained that if she were to swipe her credit
card for a $10 meal and pay the credit card company $8 that month she’d
then receive a bill for the remaining $2, or the carried balance. Her
response: What do you mean they send a bill?
“She didn’t understand that you actually pay for the items you swipe
on a credit card with real money,” Ritter says. “Her parents always pay
the bill and she was never taught how basic money transactions work.”
That’s an extreme case but indicative of a larger problem kids face: Lack of education on money. Not enough parents are talking to their kids about money early enough, says Ritter, a CFP and senior financial planner at T. Rowe Price.
Teaching kids the mechanics of money is important for their future financial health. Lessons about money should start earlier than high school or college where there is sometimes a brief course taught on financial planning.
How early? “Talk to kids about money as early as 5-years-old, or as soon as they realize that money buys things,” Ritter says.
Basic money vocabulary is a good place to start. By age 5, Ritter recommends teaching your child the following terms:
Ritter says you don’t have to tell your kids exactly what’s in your bank account or how much you make, but they should understand that money comes out of an ATM machine only because deposits, like earnings from work, are made into the bank account. Also, that a portion is then used toward things like the mortgage, taxes, credit cards, savings, etc.
The lessons are not taught in a single sit-down talk but rather they’re more effective in real-life situations. Ritter gives an example with his own kids who were squeezed into the backseat of the family car recently. When he asked if they’d like for him to buy a larger car where they could all sit comfortably the answer was a unanimous and enthusiastic, “Yes!” Ritter agreed but mentioned that the money for the new car would come from the family’s vacation savings, and that plans to go on a beach vacation would be put on hold. Suddenly, the crowd became less enthused about the car.
Those kinds of real-life examples illustrate the mechanics of money, values and priorities. “It’s not about saving for the sake of saving. It’s about spending choices and figuring out if you should spend now or spend later. It’s about teaching priorities and trade-offs,” Ritter says.
Those kinds of lessons can pay off later when it’s time to make decisions big decisions like paying for college, for example. With delinquency rates on the rise, student loan debt has become one of the biggest financial concerns in the country. Early money lessons could help your kid make smart financial decisions and avoid burdensome debt they may have otherwise taken on.
========================================================================================== The Secret to Getting Really Good at Promoting Referral Items: Join, Promote, Earn cash
1. You’ve got to have a website or a blog, of course the easiest and most practical Way to Promote Referral Items.
2. With this in place, join various network sites hosting merchants' products/services. There's usually no charge. You join; you get your own referral link code, so that you can send people to the destination with your own code branded into it. This way, the merchant can determine that the sale was originated by you and you earn a commission.
3. Choose from the more popular sites for information and/or hard products or services. Many of the products or services offer very generous commissions.
4. You can also examine the links that appear on this page and join the sites. We have spent the time and put in much effort to create for you something extraordinary! Go to the websites, relax, watch the videos, and get ready...they Can Easily Make you Financially Independent and many more!. You will have more reliable ones as you continue to hang on with http://fortunefair.blogspot.com
5. Once you joined, just do a search in the network company to find your favorite product/service.
6. Grab your code and promotional creative, text, banners, etc.
7. Place the link on your website.
8. Go ahead and promote your website. You should get many visitors to your website in order to be able to get enough sales.
9. Do a review of the product/service of your website and make a recommendation. A very good way is to review products/services and point out their pros and cons and rate them according to their quality.
10. Even better is to have your own experience with that product/service and share it with your visitors.
11. Only a small number of your visitors are likely to follow your advice and buy and this also provided that you've done an honest and good job promoting it.
12. You should take a look from time to time in the stats in your account at the network company to see how you perform. The good thing is that you don't necessarily have to deal with the merchants. You can just join a reliable and reputable network hosting the products/services and doing all the work for you.
With any new start up company you are at risk if the company doesn’t make it. Plain and simple. If you focus on promoting only one product, service, affiliate program or business opportunity and it doesn’t sell or the company goes down – you have nothing! But when you create multiple streams of income – if one of the streams dries up – it’s a bummer but not catastrophic.
Talk to kids about money as early as 5-years-old, or as soon as they realize money buys things.
That’s an extreme case but indicative of a larger problem kids face: Lack of education on money. Not enough parents are talking to their kids about money early enough, says Ritter, a CFP and senior financial planner at T. Rowe Price.
Teaching kids the mechanics of money is important for their future financial health. Lessons about money should start earlier than high school or college where there is sometimes a brief course taught on financial planning.
How early? “Talk to kids about money as early as 5-years-old, or as soon as they realize that money buys things,” Ritter says.
Basic money vocabulary is a good place to start. By age 5, Ritter recommends teaching your child the following terms:
- Savings Goal – a savings goal has three elements: (1) what you want to buy, (2) when you want to buy it and (3) how much it will cost at that time.
- Bank – a place that helps us safely store, organize and manage our money
- Check – a way to pay for items where we write a note asking our bank to send our money to someone to pay for our purchases
- Bills – notes letting us know how much we owe for our purchases
- Trade Off – A decision we have to make when we are considering whether to save for something or spend our money
- Interest – money you are paid for lending your money or an amount of money that is added to money you borrowed
- Loan – money that’s borrowed and is expected to be repaid, usually with added interest
- Time Horizon – the amount of time that you will save for a big purchase
- Inflation – a general increase in the price of goods and services over time
- Taxes – money that we pay to the government to help pay for public programs and necessities.
- Investing – putting money into assets (like stocks, bonds, mutual funds, etc.) to help you reach your financial goals.
- Asset Allocation – how your money is divided among asset classes such as stocks, bonds, and short-term investments
- Diversification – spreading your money amongst various types of investments within an asset class (different kinds of stocks and different kinds of bonds)
- Stock – a share of a company that is sold to the public
- Bonds – an IOU issued by the federal government, state governments, or corporations in which you earn interest, and receive your investment back at a later date
Ritter says you don’t have to tell your kids exactly what’s in your bank account or how much you make, but they should understand that money comes out of an ATM machine only because deposits, like earnings from work, are made into the bank account. Also, that a portion is then used toward things like the mortgage, taxes, credit cards, savings, etc.
The lessons are not taught in a single sit-down talk but rather they’re more effective in real-life situations. Ritter gives an example with his own kids who were squeezed into the backseat of the family car recently. When he asked if they’d like for him to buy a larger car where they could all sit comfortably the answer was a unanimous and enthusiastic, “Yes!” Ritter agreed but mentioned that the money for the new car would come from the family’s vacation savings, and that plans to go on a beach vacation would be put on hold. Suddenly, the crowd became less enthused about the car.
Those kinds of real-life examples illustrate the mechanics of money, values and priorities. “It’s not about saving for the sake of saving. It’s about spending choices and figuring out if you should spend now or spend later. It’s about teaching priorities and trade-offs,” Ritter says.
Those kinds of lessons can pay off later when it’s time to make decisions big decisions like paying for college, for example. With delinquency rates on the rise, student loan debt has become one of the biggest financial concerns in the country. Early money lessons could help your kid make smart financial decisions and avoid burdensome debt they may have otherwise taken on.
========================================================================================== The Secret to Getting Really Good at Promoting Referral Items: Join, Promote, Earn cash
1. You’ve got to have a website or a blog, of course the easiest and most practical Way to Promote Referral Items.
2. With this in place, join various network sites hosting merchants' products/services. There's usually no charge. You join; you get your own referral link code, so that you can send people to the destination with your own code branded into it. This way, the merchant can determine that the sale was originated by you and you earn a commission.
3. Choose from the more popular sites for information and/or hard products or services. Many of the products or services offer very generous commissions.
4. You can also examine the links that appear on this page and join the sites. We have spent the time and put in much effort to create for you something extraordinary! Go to the websites, relax, watch the videos, and get ready...they Can Easily Make you Financially Independent and many more!. You will have more reliable ones as you continue to hang on with http://fortunefair.blogspot.com
5. Once you joined, just do a search in the network company to find your favorite product/service.
6. Grab your code and promotional creative, text, banners, etc.
7. Place the link on your website.
8. Go ahead and promote your website. You should get many visitors to your website in order to be able to get enough sales.
9. Do a review of the product/service of your website and make a recommendation. A very good way is to review products/services and point out their pros and cons and rate them according to their quality.
10. Even better is to have your own experience with that product/service and share it with your visitors.
11. Only a small number of your visitors are likely to follow your advice and buy and this also provided that you've done an honest and good job promoting it.
12. You should take a look from time to time in the stats in your account at the network company to see how you perform. The good thing is that you don't necessarily have to deal with the merchants. You can just join a reliable and reputable network hosting the products/services and doing all the work for you.
With any new start up company you are at risk if the company doesn’t make it. Plain and simple. If you focus on promoting only one product, service, affiliate program or business opportunity and it doesn’t sell or the company goes down – you have nothing! But when you create multiple streams of income – if one of the streams dries up – it’s a bummer but not catastrophic.
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