How Parents Can Help Their Teens Learn to Manage Money

Parenting a teenager involves transitioning your child into adulthood. Unfortunately, the school system today doesn’t teach practical skills like budgeting. But one of the biggest things that will help ensure a secure financial future for your teenager, is learning how to create a budget. Managing their money is crucial in order for them to understand the value of it. Here are four tips on how parents can help their teens learn to manage their money.

Consider Their Income

The budget for a teenager might be less complicated than that for an adult, but it shouldn’t be taken any less seriously. When starting your teenager’s budget, you should examine their sources of money. They might have a part-time job, a weekly allowance, or both. You should get an estimate of how much they make on a weekly basis. This might fluctuate, but it should some general consistency. This can help you decide how best to direct their money.

Buying a New Car

When it comes time to get a new car (either for yourself or for the teenager) this is the perfect way for your teen to learn about [Continue reading]

Looking To Invest? Bonds To Consider

When you decide to invest money, it’s important to commit to doing the appropriate research that will protect your financial investment. When you think of saving you generally think of a bank. And when you think of investing generally you think of either stocks or bonds. Stocks are a form of ownership while bonds are a form of debt. So if you buy a stock you participate in the good fortune of a company but you also can participate in its losses. Bonds on the other hand are you loaning money to a company. You don’t participate in any appreciation you are simply paid interest for using your money. You also don’t have the risk of the company value decreasing. Even if a company goes bankrupt bondholders are ahead of stockholders in getting their money back. For this reason bonds normally have a lower yield than stocks, but also a lower risk.  There are several different types of bonds and bond funds. Typically the difference is based on the type of issuer but differences also come from how the bond is structured.

1—Municipal Bonds

Municipal bonds are issued by state and local governments. Individuals who have invested in municipal bonds over the years are quick to tout their advantages. Local and state governments sell these bonds to fund special projects that benefit their communities . The local taxing authority guarantees payments to investors. If the investor lives in the state that issues the bond, interest payments are exempt from federal taxes. Municipal bonds can reduce the overall volatility of your portfolio investments and can provide important tax savings for high-income earners. Generally, municipal bonds are considered fairly safe because local governments can simply raise taxes to pay for them but recently some municipalities like Detroit and Puerto Rico have had difficulty making bond payments and have considered default.

2—Treasury Bonds, Bills and Notes

A United States Treasury security is an IOU from the US Government. There are four types of treasury securities [Continue reading]

Parent Problems: 4 Thrifty Ways to Prepare Yourself for Teenagers

Thrift Shop Challenge

It might seem like just yesterday you brought your newborn babies home from the hospital, but now, they’re teenagers. This is an exciting time to be a parent, but it’s also one that comes with its own share of anxieties and uncertainties, one of the … [Continue reading]

4 Factors That Determine Your Personal Injury Case’s Worth

Injury Case

When you’re hurt in a personal injury, it’s fair to want to know the value of your case. In some ways, valuing a personal injury case is a simple math problem. Other parts of valuing a claim are more complicated. Here are four factors that determine … [Continue reading]

Going from Zero to 720 Credit Score in One Year

Credit Score 720

Critical Factors That Affect Your Credit Score As you probably already know, your credit score can have a big impact on many different areas of your life. If you have little or no credit history merchants don't know if they can trust you or not so … [Continue reading]

Creating Business Opportunities

Online Businesses

If you’re concerned about your current income, you should try to develop some sort of business that isn't dependent on the number of hours you invest. The key to breaking free is to develop some sort of "passive income" stream. This could be rental … [Continue reading]

Things Mortgage Lenders Look for on Your Application

Underwriting a Mortgage

You are ready to move out of your apartment, move on from a roommate situation or your parent's place into your very first home. While it is an exciting time, you need to be ready to take the necessary steps to set up your finances and applications … [Continue reading]

Retirement Reasoning: 3 Investments To Consider Now

Stocks vs Bonds

Saving for retirement should be a part of your investment strategy as soon as you begin your adult employment. The actions you take today will help you manage the money you make during your working years, to invest for a time when you can relax and … [Continue reading]