Month: October 2016

8 Financial Mistakes to Avoid at All Costs

Posted by

0

Money, money, money. Few things in life generate as much interest, yet demand more responsibility. Money is taken into consideration with almost every life decision we make (which is one reason why personal finance courses should be required in every school)! And while money itself will not bring happiness, mismanaging it can surely ruin a person’s chances for success, and cause a lot of UNhappiness.

 

The principles of wise financial management aren’t that tough to master. Truly, you don’t need to have a degree in finance, be a math whiz, or consult a professional financial consultant in order to make smart choices. You simply need to know the basics and abide by certain key principles. It pays to avoid these eight common financial mistakes (and understand their consequences if you don’t):

 

  1. Failure to set goals and plan for major purchases and retirement. It’s crucial that you plan for large purchases (homes, cars, big toys) by accumulating savings, while also making sure you’ll have sufficient resources for retirement. These types of purchases should never be made on impulse or funded by withdrawals from your 401K.
  2. Spending more than you earn and failing to budget and monitor expenses. These days, it’s impossible to get away from ads (they’re on Instagram, Facebook, Billboards, YouTube videos, commercials, etc.). We are constantly bombarded with the idea that we need this or that. It’s important to resist the urge to spend, unless each purchase is within the budget you’ve set. If you don’t have a budget, set one…now! Overspending is the most common source of financial difficulty and stress.
  3. Incurring too much debt, including excessive credit card usage. If you have to put it on a credit card, you probably can’t afford it. That is, unless you pay off all of your credit card balances at month end.
  4. Investing too little and starting too late. In order to build a sufficient nest egg for retirement, you’ll need to save and invest 15-20% of your income. And, the sooner you begin, the greater your assets will accumulate. Start a monthly investment program as soon as you’ve developed an emergency fund worth six months of expenses. This should be a priority in the first year you begin your career.
  5. Incurring significant fixed expenses that can’t be reduced in difficult economic times (e.g., spending too much on housing and cars). Your mortgage or rent payment should not exceed 25 percent of your monthly income. And please, avoid those crazy high car payments!
  6. Ill-timed investment decisions (“buy high, sell low” habits and market timing). Too many investors make decisions on emotion. They take too much risk when the markets are high and panic sell when markets are in decline. Studies show the average investor loses around 2% a year due to poorly timed decisions! Regular investments in a well-diversified program serves investors better.
  7. Impulse buying and lack of value consciousness when shopping. Have a strong grasp on the actual value of the stuff you’re buying. Are those jeans really worth $175 in the long run? How could buying less expensive jeans and putting that money toward something else impact your financial situation in the long run?
  8. Lack of discipline and personal responsibility. This is one of the most important tips. Making sure you have positive cash flow and that you’re set-up well for the future takes some serious discipline and self-control! If you need some help with accountability, consider downloading spending tracker, like those available on mint.com. It’s eye opening how our spending on little things adds up.

 

Because finances aren’t taught enough (if at all) in secondary school or college/university, parents are advised to assume a leadership role. These are CRUCIAL life skills that will set your young people up for success in the real world (and help them avoid potential crises).

 

Periodically check how you’re doing in these areas, too. If we can all successfully avoid these traps, we’ll be in excellent financial shape! It does wonders for our stress levels, too!

 

 

 

 

 

 

4 Tips to Help Your High School Student Succeed

Posted by

0

We just finished up an amazing week at the National Dropout Prevention Network conference in Detroit, MI. The LifeSmart team was able to share our perspective on what we can do as educators, mentors, and parents to help set teens up for success and graduate high school with their peers. Consequentially, we’ve got high school graduation on our minds—even if Halloween hasn’t yet arrived!

Are you a parent or a teacher of high schoolers? Have you ever wondered what YOU can do to prevent the potential of your students’ dropping out, or how you can equip your student for optimum success? Unfortunately, one million kids leave school every year without a diploma. We’d like to share with you our top four ways to equip high school students for success and help them cross the graduation finish line.

  1. Instill resilience. Let’s face it. Life gets difficult. And it can be especially difficult for students who are dealing with struggles at home (broken families, drugs and alcohol, emotional/verbal/physical abuse), or who come from a low-income background. One of the most important qualities for young people to embody is resilience; learning to handle adversity with courage, integrity, and determination. Take time to talk with your teen about obstacles (because that’s exactly what they are, obstacles—not derailers!) and the importance of overcoming them, growing from them, and, ultimately, becoming an “inspirational encourager” to others who are facing similar challenges. Always be mindful of what other side to today’s valley might look like..
  2. Cultivate your relationship. Whether you’re a parent or a teacher, it’s important to cultivate a relationship with your student, especially if you notice the dropout “warning signs.” Take time to talk and learn what makes him/her tick. Are they feeling alone? Is there a certain subject they just don’t get? Are they overwhelmed with too many commitments? Position yourself as an ally—someone who can be trusted—and cultivate a relationship of trust, acceptance, and encouragement with your teen. And, while you’re at it, always seek opportunities to affirm their uniqueness and value. It’s a powerful way to build hope and belief in themselves and their future. They’ll never forget you for it.
  3. Rely on community resources. I’m sure you’ve heard the age-old saying, “It takes a village.” It’s true! Without the wider community supporting the schools, and without parents and schools relying on resources within the community, success would be hard to come by. There are great organizations out there (like the Boys and Girls Club, Big Brothers/Big Sisters program, and more) that can help your student make friends, bond to other positive influences, and stay on track. Also, encourage them to identify their interests and passions, to offer a glimpse of what their future can look like. It builds motivation, too.
  4. Make sure your child is surrounded with positive influences. Remember, your student needs to have other wise and encouraging voices in their life other than their parents and teachers. In fact, research shows that each student needs at least five adults in their life who are there to offer support, wisdom, advice, trust, and encouragement. Sometimes kids listen to non-parent voices the best! The same goes for their friends. If you notice your student is hanging around with the wrong crowd, or tapping into destructive media influences, address it immediately.

 

Our students are our future—and their success is of utmost importance. Let’s position ourselves as their safety net and rally around them with the support the need to ensure their graduation and life success.

Will We Ever Let Them Go: Part Four

Posted by

0

Millennials—you’ve probably heard some pretty strong statements about them. “No work ethic, too dependent on their parents, irresponsible, addicted to technology…” But in this four-part series, I’ve been addressing what steps we can take as parents, secondary educators, and college educators, to better equip them for a long line of success. And today, I’d like to talk to those on the fourth leg of the relay race—our employers. (If you missed the first three parts in this series, you can find the links to them below.)

Employers, I take it you’ve already received a few new, younger workers from parents, high schools, colleges/vocational schools, etc. Some of your new hires have arrived well prepared with the skills and attitudes you value, while others are lacking. It’s with these latter cases that many of today’s unflattering stereotypes about Millennials are being formed.

I know some of you have even resorted to specialized management training to deal with interfering parents of young employees. Many of you are also experimenting with ways to help your more experienced staff members relate to incoming “needy” Millennial co-workers. Some workplace consultants are even advising companies to adapt in all kinds of (often unorthodox) ways order to accommodate/pacify Millennials—as if they arrived from some other planet. Yes, it’s come this far. How sad.

What to do? Here are some recommendations that can serve all employees, including Millennials, in your workplace:

  1. Build a contagious culture of excellence with high expectations and standards for all. Develop an inspiring mission, vision, and values statement with the input of employees. Then, through relational management, set each employee up for success by defining excellence on the job and coaching employees to achieve it. Management should be invested in the success of each employee, providing feedback and guidance along the way. While less experienced employees have a longer learning curve ahead, workplace standards should not be compromised for them. Nor should invaluable constructive feedback be withheld because of a coddling view that they can’t take it. Let them rise to the occasion. Most will.
  2. Incorporate mentoring as a part of new employee training. One of the quickest ways to workplace success is tapping into the wisdom of experienced and highly valued employees through personal relationships. A mentor program, where younger employees are paired with seasoned personnel, is an invaluable asset for onboarding, professional growth, and network building. It will also help reduce the generation gap among older and younger employees.
  3. Partner with schools and colleges in your community to offer real world perspectives from the workplace. Since many students lack the work experience our generation enjoyed decades ago, insights from the professional community can be especially beneficial in filling the gap. Also, your company and area students will benefit tremendously from an internship program.

 

This article was intended to call out some of the issues we are facing regarding the training of our young people for life success. Because so many parties are involved—parents, primary and secondary educators, colleges, and employers to name a few—it’s a complicated subject. Evidence indicates that we’re missing some key training components, in part because of a mistaken notion that someone else is covering the territory. Our young adults are bearing the brunt.

Excessive coddling is also taking its toll. The pendulum has swung from the “sink or swim” parenting mentality in my generation to one of overprotection and control today. We need to restore a healthy balance.

Our younger generation has so much to offer. With holistic, relevant, and sustainable training methods that cover all the bases, guided by an attitude of empowerment, they will soar. Let’s all do our best in making this happen.

If you missed the first three parts in this series, you can access the article in its entirety here, in our resource center.

 

Will We Ever Let Them Go: Part Three

Posted by

0

Our nation’s colleges and universities have a powerful, two-fold influence on preparing young adults for life success. On one hand, they play a role as receiver of our high school graduates. On the other hand, after four plus years of educational effort, they serve as senders of their graduates to employers, communities, and independent life. They’re rather like the third leg of the relay race from parents to schools to colleges to employers.

The implications of this positioning are profound. College educators, via their admissions criteria, have an enormous influence on the high school agenda, especially in the area of course requirements. They are the proverbial tail wagging the dog when it comes to high school academic programs. Frankly, I believe this is an undue, and not always beneficial, influence.  Academicians, who often lack work experience outside of the classroom, are setting the agenda. Based on their actions, they seem to undervalue practical leadership/life skills training (e.g., personal finance) that is so relevant to students. Otherwise you’d see these courses reflected in their admission requirements! Not surprisingly, high schools design their course menus to satisfy the demands of colleges. That’s an issue. I would argue, a big issue.

Secondly, college course offerings and their own graduation requirements are often lacking in practical life training. Rather, their first few years emphasize traditional academic subjects that are often redundant from high school, and irrelevant to life after college for many students. In other words, college course requirements appear disconnected from their role in preparing students for independent living. This is also a big issue.

Thirdly, colleges are often shortchanging students in the area of employability and job acquisition. Despite their massive investment, students are not always required to take career readiness and job search courses to help them achieve a positive return on their college experience. Today’s graduates are increasingly ill prepared to navigate today’s recruitment process. If colleges aren’t accountable for this training, who is?

Several of my recommendations to colleges echo what I shared in my thoughts for high schools. However, because of the unique positioning of our colleges in preparing young adults for real life, others are specifically directed toward them.

 

  1. Apply my points 1-3 and 5-7 from the secondary school educators’ recommendation list to your college/university institution. Unlike the high school setting, the next step for most college graduates is a well-suited career. Accordingly, this should have significant ramifications on college programs, rather than predominantly focusing on academics for academics’ sake. However, based on employer feedback, this is not generally the case. I encourage colleges to allow employers to command a voice on this topic to do a better job of representing the end users receiving your graduates. Invite them to share in your classrooms—to offer valuable perspectives outside of the academic bubble. Most importantly, solicit their views on what constitutes a well prepared graduate for life and reflect their perspectives in your program. Just as your views are influencing the secondary school agenda, so should employers be influencing yours.
  1. Focus more on leadership and life-relevant training and (comparatively) less on redundant core requirements that are often found in high school. While a broad-based educational foundation is important, far too much of the college experience (and dollar!) is devoted to courses that are simply not as relevant or practically beneficial to students. The opportunity cost is too great.
  2. Completely revisit the academic admissions requirements imposed on our high schools. Aside from a base of core academics, it would better serve all students to incorporate leadership and practical life training to a greater degree. (Does anyone really believe that a two-to-three-year foreign language requirement for high school students is more important to life than financial literacy?!? Yet, the former is usually required, and we’re silent on the latter.)
  3. Assume greater accountability for student career success. All colleges and universities should be required provide success measures of their graduates in landing a job (both within and outside of their major). This would not only be beneficial to families in the college search process, but it would also help students in selecting their major. (Wouldn’t it be helpful to know the percent of students who landed a job in each major?) Also, students should be required to take a comprehensive career-readiness course involving career exploration, qualification, marketing, and excelling. With the lack of jobs for youth and young adults, many are entering the workforce extremely green. All colleges should seek partnerships with area businesses to offer students real-world perspectives, internships, and recruitment for future jobs. The bottom line: colleges need to take more ownership in providing graduates with a significant return on their sizable investment.
  4. Dispense with the political correctness, safe spaces, trigger warnings, segregated dorms, and disrespectful guest speaker treatment/disinvitations. These efforts merely delay students’ ability to relate/communicate with others, resolve conflict, problem solve, handle adversity, and respectfully consider differing views and perspectives. Unfortunately, this heightened form of coddling has become routine on campuses, and it will only inhibit your students’ ability to navigate life. (Thank you Dr. John Edison, Dean of Students at the University of Chicago, for your example.)

I truly believe that if we all made a conscious and concerted effort to make some changes, we would see the next generation thrive. Isn’t that something we all want to see?

You can access parts one and two of this series here and here, or, you can read the full article in our resource center.