Cultivating Productivity in Our Teens

career fairLast week we talked about senioritis, and how giving in to the temptation to slack off near the end of the school year can come back to bite us. That’s why it’s so important that we as parents and teachers do our best to cultivate productivity in our teens.

Over the years, I’ve noticed an interesting trend in my chance encounters with people. It goes something like this:
Me: “It’s great to see you! How’ve you been?”

Them: “Busy!” Or,

Them: “Crazy busy!” Or,

Them: “Out of control!” Or,

Them: “Overwhelmed!”

Is this good?

No, it’s not. We’re experiencing a crisis of over-commitment and information overload like never before. It’s not supposed to be this way. After all, technology is supposed to make us more efficient, isn’t it?  Not more stressed! At the risk of sounding like Fred Flintstone, faster isn’t always better—especially if it reduces our quality of life and productivity.

These days, everyone is consumed with “busyness.” You see it everywhere. Our attention spans are shorter, our responsiveness has markedly deteriorated, our cell phones have become appendages (where almost nonstop beeps and vibrations are creating a false sense of urgency), we’re having a harder time focusing, and relational depth is increasingly being replaced by superficial breadth. Our children are bombarded with information and opportunities like never before and it’s showing up in anxiety levels.

It is crucial that we arm them with a strong productivity foundation to handle this brave new world.

Let’s start with time management. Whether they go on to college or the workplace, they will be in charge of how they spend their time. Successful people are extremely disciplined with their time, viewing it as a priceless asset they cannot get back. That’s the attitude we want to cultivate in our teens. They will need to develop prioritized daily “to-do lists” arranged by importance and urgency, and plan their time accordingly. Top priorities come first and before the fun.

Another key productivity driver is their ability to set goals and plan for their achievement. Encourage your children to set goals regarding their career, family, education, personal growth, finances, service, experiences, recreation/leisure, and daily responsibilities. The more specific, realistic, and measurable they are, the better. Consider setting some time aside with your student and making a list together of their measurable goals— immediate, short term, and long term. Then, train them to develop strategies and plans to achieve them. Without a planning mindset, success is, at best, a random proposition.

Finally, our kids need to become great decision makers. In What I Wish I Knew at 18, I describe an effective six-step decision-making process. The steps are: 1) determine your key decision criteria, 2) get the facts, 3) identify all the alternatives, 4) conduct an objective pro/con analysis for each option, 5) engage wise counsel, and 6) listen to your “gut instinct” or intuition. By working the process, their best option will usually reveal itself. It’s a GREAT discipline for selecting among several college alternatives!

Here are some questions to consider as you prepare for launch time and “train for productivity:”:

  • Are they effective goal setters, planners, time managers, and decision-makers?
  • Do they control technology, rather than allow technology to control them?
  • In their daily planning, do they focus first on what matters most?
  • Do they consider their time as a precious asset?

Let’s do our best to cultivate a foundation of productivity in our teens, as it will the foundation of success for the rest of their lives. Also, don’t forget to lead by example. Ask the above questions about your own life, too. There’s room to improve for all of us!

How to Help Your Senior Finish Strong

se·nior·i·tis noun se-nyer-‘i-tis: an ebbing of motivation and effort by school seniors evidenced by tardiness, absences, and lower grades.

Sound familiar? I know I certainly suffered from senioritis during both high school and college (and my daughter is living it as I write this)!  At this point in the year I was so burnt out on tests and looking ahead to college or my new career,that it was easy to rationalize slacking off at school. But, now that I am older (and hopefully wiser), I look back with a different perspective.

If you have (or are) a high school senior, you know just what I’m talking about. So here are some thoughts about why it’s a good idea to stay the course and finish STRONG. I promise you, you’ll never regret pulling yourself out of your senioritis slump and finishing well. Here’s why:

  1. After graduation and throughout college and career, you will find yourself in situations where long, arduous efforts will make or break your success. A deadline for a huge presentation at work, grad school applications, or a team project for a history class are all examples of situations that require effort and adherence to deadlines. As life goes on, the stakes will only get higher, so it’s important to develop and nurture the discipline of finishing strong NOW.
  2. Success in all areas (career, academics, relationships, sports, etc.) requires planning, practice, and perseverance. Here at LifeSmart, we like to refer to these as “the Three P’s of Success.” In order to apply these P’s to your life, I encourage you to create daily to-do lists and implement daily goal-setting sessions. I guarantee you will see your productivity soar. (And remember, procrastination is a ‘P’ you want to avoid like the plague.)
  3. Good study habits are important throughout your life, not just during high school. Trust me when I say college academics are far more challenging than high school (my 3.8 GPA in high school became a 2.85 in my freshman year of college!). And of course, once you start moving ahead in your career, that doesn’t mean you’ll never study again! Most careers require some continuing education, and you’ll have to study and prepare for presentations, conferences, and portfolio building, and more.
  4. Most college admissions are contingent on the student finishing well! So, too, are academic awards and scholarships!

We’ve all seen painful examples of when people or teams squandered great starts by not finishing strong and incredible finishes from slow starters that eventually won the game. No matter who you were pulling for, the 2017 Super Bowl was the perfect illustration of what can happen when you ease up. Unfortunately, that big lead for the Falcons didn’t matter in the end. Better luck next year!
Current high school seniors are about to enter the most amazing six months of change in their lives. They’ll be saying “hello” to their future with more freedom and responsibility than ever before. Their worlds will become bigger and more exciting, but their plate will also become more full.  Encourage them that this is their time to finish strong and launch their future well. With planning, practice, perseverance, and patience, they’ll knock it out of the park. Their success is there for the taking.
Do you have – or know someone with – a classic case of senioritis?  It’s that time of year! What are some of your ideas for overcoming it and finishing strong?
 

Career Readiness: Excelling on the Job

“Some people dream of success… while others wake up and work for it.”

~Author Unknown

It’s day one on the job, and we can’t wait for our corner office, leather chair, and stunning view. Not so fast! Success on the job (including the perks!) takes hard work, and no one is entitled to it. In today’s competitive workplace, employers are managing their staffs with greater scrutiny than ever. Consequently, we must continually justify ourselves by adding value to our employer.

There’s a BIG difference between the MVPs in an organization and those whose careers stagnate. So for our students’ benefit, it’s critical that our career readiness training includes the secrets of workplace superstars. With so many teens and young adults lacking job experience, this segment offers a vital glimpse into the demands of the workplace. The better our students understand this now, the better equipped they will be to knock it out of the park from the first day.

Here are our recommendations for setting students up to excel in the workplace:

  1. Pursue a well-matched career. All-Star employees play to their strengths, and that begins with selecting a career that matches their skills, interests, and personal preferences. This is one reason why students should conduct a comprehensive assessment of themselves and career options (described in an earlier blog) before making a decision. It is also why parents and educators should play a role of guiding the process rather than directing it toward a particular outcome. There is no substitute for loving our work, and that can only be possible if it fits us like a glove.
  2. Model the qualities of workplace MVPs. Career success goes far beyond skills and smarts. Ask employers to identify what stands out among their most admired employees and you’ll hear qualities such as high standards of excellence, integrity, dependability, relational/communication skill, positivity/enthusiasm, motivation/strong work ethic, resilience, humility, loyalty, professionalism, focus, creativity, and a willingness to go above and beyond. Encourage your students to take these to heart.
  3. Deliver excellent job performance. It’s critical that students understand how they will likely be evaluated on the job. Their performance will link directly to their pay, promotion potential, and overall satisfaction. Generally speaking, their job reviews will include rankings on subjective criteria such as communication, attitude, teamwork, and dependability, as well as on specific goals for the performance period. We recommend sharing the following strategies with students starting on their first day:
  • Ask their supervisor to define excellence on the job and in each of the evaluation criteria. This offers invaluable insights how he/she will be rated in these subjective areas. Then, of course, deliver it!
  • Ask their supervisor to identify the one to three most significant accomplishments the employee could achieve in the next six months. Then, deliver them!
  • Ask their supervisor to share how he/she and the department are being evaluated and how they can contribute to their success. Then, deliver!
  1. Contribute to their employer’s success. MVPs go above and beyond. They proactively seek ways to build value in the eyes of their employer. And, the best way to do this is to positively impact the organization’s success. There are many ways to do this, but here are some of the most powerful:

Improve sales. This can be achieved through adding new customers, building customer loyalty, developing new products/services, and supporting the sales effort.

Reduce expenses. Lowering costs and improving efficiency directly benefit the bottom line.

Innovating. Whether it’s new products or services or better ways to position the company in sales settings, these efforts contribute to the employer’s brand and revenue growth.

Leading. Whether it’s leading projects, teams, or people, the potential for significant impact and reputational value are huge. Seize the moment and use every opportunity to demonstrate leadership skills.

By knowing how to deliver excellent job performance, your students will be poised to reach their full career potential!

To Land Your Dream Job, Build Your Edge

One important key to success is self confidence.

An important key to self confidence is preparation.

~Arthur Ashe

 

So, you’ve buckled down and identified several candidate careers (or majors) that could be your perfect match. Now, it’s time to turn this vision into a reality! It’s a highly competitive job market out there, so you’ll need a solid plan to acquire the necessary qualifications to win. That means building your competitive edge—the next step to becoming career ready.

It’s difficult to generalize the qualification process because it varies so much by career choice. Do you prefer to dive right into the job market? Are you willing to get your Bachelor’s, Master’s, Ph.D, or more? Often, it’s the qualifications that help us narrow our career options to ones that are realistic and achievable.

When entering the workforce, chances are the basic qualifications will be in the following areas:

  • Education: degree, areas of specialization, GPA, certifications, specific courses
  • Work experience: minimum years and particular positions; internships and apprenticeships; training and professional certifications
  • Skills: technical proficiencies, physical requirements, familiarity with systems, relational and soft skills, etc.
  • References: they had better be good!

In last week’s newsletter, we identified several websites that show the various qualification requirements for different careers. Familiarize yourself with them and use this information to narrow your choices. Be realistic.

Now, in order to position yourself to land the job, you’ll want to go far beyond the minimum qualifications cited above. Employers are looking for special evidences of leadership, initiative, and accomplishment. For this reason, we strongly recommend that you speak with actual practitioners who hold your desired career position. Seek out advice and wisdom from the pros, especially to discover ways you can set yourself apart from the competition. They will be able to offer far deeper insights in building your edge than your high school or college career counselor/recruiter whose knowledge is more general. What leadership skills, internships, experiences, and trainings can you undertake that will stand out? Summer jobs? Camps? Job shadows? Extra courses?

We also encourage you to review the results of the state of Virginia’s workplace readiness survey of employers. You can access it here. You’ll notice that many of the top 21 skills are soft skills. Yes, today’s employers are looking far beyond your degrees and GPAs… they want people with great attitudes and leadership skills.

Great references are another necessity. Many times, they can overcome average academic performance with great stories about you. Whether they’re professors, teachers, coaches, mentors, or supervisors, all of them are prized potential references on your behalf. What have you done to deserve the highest praise among people who can potentially become your ambassadors?

So, what’s your story, from a prospective employer’s perspective? Remember, you’re competing against other worthy candidates, and the more you can demonstrate passion, initiative, and real life examples of your leadership skills, the more an employer will want you! Make yours a great story.

Educators and parents, be sure that your career readiness training incorporates these vital components. They will help your students build the edge they’ll need to win.

 

 

 

Career Readiness Essentials: Knowing What Employers Value

career fairHere’s a true story from my hometown. She was scheduled to arrive for work as a server for a small family restaurant at 5:00. However, she apparently received a better offer. At 4:55 she called the owner, informing him that she was sick and unable to work. But, merely 15 minutes later, she would be posting pictures of herself with friends at a beach party some seven miles away. When she showed up refreshed for work the next day, she was fired on the spot.

This case example is worth sharing in your homes and classrooms because, in various forms, stories like this are becoming commonplace. Whether from inexperience, lack of training, or simply misguided attitudes, many teens and young adults are struggling on the job. They’re learning the hard way that trophies, so easy to come by when they were young, are much more difficult to obtain in the workplace. But, with proper training, stories like this are preventable.

In last week’s installment in our career readiness series, we discussed the importance of self awareness as the necessary first step to a successful career. Finding a good match begins with knowing me!  Now, in the second step, I need to get to know you: my current or potential employer. But, judging from the horror stories I hear, employer perspectives are a missing ingredient in many career readiness programs. Students need to understand that their career success involves much more than smarts and skills.

To this end, here is our top ten list of qualities desired by employers:

  1. Integrity: adherence to moral and ethical principles; trustworthiness
  2. High standards: a commitment to excellence in work, relationships, and attitudes; actively seeks out feedback and professional development
  3. Reliability: dependable in fulfilling responsibilities; adopts an “on time, every time, with excellence” mentality
  4. Motivation/work ethic: self starter who is willing to go “above and beyond;” industrious and efficient and follows instructions
  5. Team player/relational skill: demonstrates positive interpersonal skills with fellow employees, clients, prospects, suppliers, and the community; encourages others and focuses on the company and team over self
  6. Positive attitude/enthusiasm: displays a constructive and uplifting attitude and passion for both work and the company
  7. Innovative: demonstrates curiosity, creativity, and a commitment to improve processes, products, and services
  8. Resilience: faces challenges head on, rebounds from adversity, and resolves conflict along the way
  9. Professional manner: displays a professional attitude, appearance, and communication
  10. Commitment: is loyal to the company’s mission and core values and represents the company well in the community

Whether we’re parents, educators, or mentors, it’s vital that we train the next generation with these guiding principles. While doing so, here are some important things to keep in mind:

  • Help them understand that they are there to serve the company, not the other way around. Disabuse them of any sense of entitlement or notion that the world revolves around them.
  • The time to begin modeling these qualities is NOW. Have your students rank themselves on a 1-5 scale. For which qualities are they a 5-star role model? Where do they need to up their game?
  • Through role-playing exercises, have your students pretend they are the owner of a company recruiting for a new position. What qualities would they be emphasizing as they evaluate candidates? By switching them from their usual subservient role to that of the boss, they will quickly appreciate the employer’s perspective.

Once students appreciate the importance of these workplace qualities, they will be better equipped for their entire career management process. That means better cover letters, resumes, applications, interviews, and on-the-job performance. Understanding the qualities valued by employers should be an integral part of your career training efforts. It would have certainly helped avoid a fiasco in my hometown!

Career Readiness Essentials for School and Home

 

“You’re off to great places! Today is your day.

Your mountain is waiting. So… get on your way!”

~Dr. Suess

 

“So, what do you want to be when you grow up?” It’s a question each of us has received (and often loathed!) countless times in our formative years. For some, like my daughter, the answer was clear from an early age. For most, it’s a trial and error process with midcourse changes—and loads of stress. And, that’s only the beginning.

In my conversations with teens and young adults, I see a generation that is starving for practical career wisdom. Some are struggling with their career (or major) choice. Some have all the credentials, but don’t have a clue how to market themselves and win. In today’s world, where personal initiative and networking are key, those who haven’t adapted are floundering. Finally, those who are underperforming on the job are getting a rude awakening about the ways of the real world.

To some extent, we attribute this to assumptions being made by parents and educators about who is responsible for training what. Parental guidance is all over the map. And, career readiness programs vary widely within high schools, colleges, and universities. Guess who loses?

At LifeSmart, we believe the solution is for all students to receive comprehensive and practical career readiness training to help position them for success. To that end, we are developing this extended blog series to share our vision for effective career preparation. Whether you’re a parent, educator, or student, we hope this advances your career readiness training and identifies any gaps to address.

Essential Elements

In order to holistically prepare our students for career success, we believe that training needs to be much broader than is commonly the case. In our view, the following are necessary ingredients to comprehensive career training:

  1. Self awareness building: understanding one’s self, in terms of assets/skills/strengths, personality profile, interests, and passions. This involves answering the fundamental questions of who am I?, what do I have to offer?, and what are my dreams? Self awareness is a necessary precursor to effective career selection.
  2. Leadership development: understanding the attitudes, behaviors, and practices of honorable and successful people. These qualities not only serve us in our careers, but in all of life. Leadership training is necessary for sustained career excellence.
  3. Career exploration: identifying and evaluating well-suited and accessible careers that play to our strengths, satisfy our preferences, and offer fulfillment and a livelihood. This needs to be one of the most well-researched decisions in our life.
  4. Career qualification: knowing the credentialing and planning required to access one’s chosen career. Through education, training, and experience, we must build a competitive edge that is attractive to future employers.
  5. Career acquisition: understanding the job search process and how to successfully market ourselves in this highly competitive, ever-changing world.
  6. Career mastery: developing a reputation as an “MVP employee” by virtue of one’s character, performance, and contribution to employer success. Together, these improve the odds of achieving our career potential and financial goals.

 Does your career training include all of these elements?

We will be addressing each of these topics over the next two months, deriving from our What I Wish I Knew at 18 resources as well as perspectives from employers. Stay tuned for next week’s discussion on self awareness, and please share this series with those in your sphere of influence. We’d love to hear your thoughts and would enjoy supporting your career readiness efforts.

 

 

 

 

Top Ten Parenting Tips to Promote College Readiness (Part One)

teen-at-college

“Don’t prepare the path for the child, prepare the child for the path.” 

~ Author Unknown

Or, as we say at LifeSmart, “Give them wings, not strings.”

Preparing our children for a successful launch into adulthood is one of our greatest parenting responsibilities. And a huge milestone! Unfortunately, as we shared in last week’s blog, many college students are struggling at this pivotal time of life. Our nation’s college completion rankings are plummeting, and we are witnessing a surge in mental health issues on campus.

Parents, we need to take the lead in turning this around. So, for the next two weeks, we’ll be sharing our best tips to help set your teens up for a successful college experience.

  1. Stop the helicoptering! Many collegian issues stem from parents’ efforts to manage their children’s happiness and success. A student’s inability to make decisions, cope with stress and adversity, and understand the world doesn’t revolve around them are predictable outcomes of helicoptering. When we step in to prevent failure, do their homework and applications, defend misbehavior in front of authorities, text them incessantly, and hover and control their lives and decisions, they will struggle on their own.

    As authors of Parenting for the Launch, we encourage parents to adopt an empowering approach that increasingly treats their teens as future adults. That means training them with strong internal guiding principles and giving them freedom, responsibility, and accountability to apply them. Yes, it may result in some short-term pain (e.g., a tough life lesson, failure/disappointment, unhappiness, anger), but it’s for the sake of long-term gain (e.g., resilience, grit, problem solving, coping, independence).     

  2. Foster healthy coping habits. Everyone has their stressors, but, during adolescence, they’re often exacerbated. By nurturing self awareness in our children, they’ll be able to: 1) identify the signs of their anxiety (irritability, restlessness, sleeplessness), 2) isolate the source (tight deadlines, relationship strains, exams), and 3) release their stress in a healthy manner. Together, these can help teens and young adults prevent and/or cope with the pressures of the day.

    Which stress relievers work best? It depends. For some, it’s an intensive cardio workout or blasting music. For others, it’s a bath, a good book, a walk along the beach, or prayer/meditation. Respect whatever works best for them, so long as it’s healthy.

  3. Build positive social adaptability. When it comes to social life, the transitions into and out of college are arguably the most demanding. Our support system of family and friends may seem light years away. In What I Wish I Knew at 18, we devote considerable space to social adaptation. We encourage students to explore affinity groups of others who share common interests and values. To make a list of BFF qualities and quietly evaluate new acquaintances accordingly. To stay patient and selective, knowing it’s all about quality and positivity. Parents, you can instill these valuable habits while they’re under your roof by helping them find opportunities to meet new people in new social settings.

  4. Cultivate strong time management and planning disciplines. With demanding courses, endless activities, newfound freedom, and higher stakes, many students struggle with disorganization, distractions, and last minute cramming—all anxiety boosters. During the high school years, parents need to stress that time is a precious asset to be used wisely. Encourage them to use planners, block their time, build in margin, and create daily to do lists organized by importance and urgency. This is particularly important for the procrastinator, who won’t find it as easy in college. Remember, fun is fine, but the work comes first!   

  5. Apply empowering, but realistic, academic expectations. It’s wise to expect some grade deflation in college as compared to high school. The transition is significant, the competition is greater, and students suffer tremendously when parents expect perfection. Today’s students (both high school and college) often face intense and unrealistic pressure from parents to achieve the highest GPAs. Granted, we should expect our students to do their best, but that doesn’t automatically translate to a 4.0. Oh, and one more thing: encourage your collegian to take a slightly lesser academic load in his/her first semester. It’ll make for a smoother transition.

 

Next week, our last five tips! We’d love to hear yours.

Is It Time to Revisit High School Course Requirements?

When we speak to educators and administrators at various conferences around the country, one of the questions we invariably ask is:

“How many of your schools have defined a well prepared graduate for life?”

Sadly, we’ve yet to see more than 10% of audience members respond affirmatively. Of those, comparatively few admit that their school has a specific pathway to build these required skills.

At the same time, out in the “real world,” we find that:

  1. Employers are lamenting the lack of soft skills among younger workers (and applicants), thereby necessitating additional training.
  2. The US ranked 19th out of 28 countries in college completion in 2012, according to an OECD study1. (It ranked first as recently as 1995.)
  3. Colleges are reporting significant increases in student visits to their counseling centers, citing factors such as depression and anxiety.

It is apparent from multiple perspectives that we are falling short in preparing our children for independent life. While this is a complex challenge with many contributors, I’d like to share what I consider to be a primary source of the problems: the course requirements for high school graduation.

The US economy has changed dramatically in the past few decades, requiring different skills than before. Also, post-secondary education has become much more popular, which argues for greater advance preparation.  And, jobs for students during high school are more difficult to come by, limiting opportunities for valuable workplace skill development. In light of these factors, the question is whether our education requirements have appropriately adapted. Many believe they have not—and we agree.

At LifeSmart, we believe students need greater applied learning and skill development and practical preparation for independent living. This would significantly enhance both career- and life-readiness for our nation’s high school graduates.

While people may disagree on which courses deserve the status of a requirement (versus an elective), we believe the following would help address the skill gap:

  • College and Career Readiness: this would prepare students for their next education steps, as well as the four career mastery stages: exploring, qualifying, marketing, and excelling. Valuable perspectives from employers would be included.
  • Independent Living: this would offer students a clear glimpse into “life on their own,” including leadership, soft skills, relationship building, budgeting, and everyday living skills.
  • 21st Century Skills: this would help students build the analytical, problem solving, collaborative, and communication skills needed to succeed.
  • Personal Finance: this would include the basics of budgeting, banking, investing, credit, identity protection, insurance, car buying, and loan applications. (It would also improve our nation’s financial literacy!)
  • Entrepreneurship: this course would expose students to all aspects of creating and managing a business (and learning about capitalism in the process!). Knowing that most students will work in a business or organization, this would offer valuable insights into how the “real world” operates.
  • Communications: this course would include both verbal and written personal and professional communications. In today’s highly collaborative workforce, communication skills are a must. The casualness of contemporary communication has become a major impediment to many young people adapting to college and professional environments.

For some schools, this would involve converting existing electives into requirements, and others would involve new course offerings. Of course, it would be helpful to incorporate these practical skills in other classes where possible.

These are our ideas. We’d love to hear yours!

Because We’re Thankful For You

As we enter Thanksgiving week, we’re grateful for your tireless investment in the next generation. Whether you’re a parent, guardian, educator, or mentor, we’re celebrating YOU with our annual holiday sale, now through year-end!

You’ll receive substantial savings—(20% off!)—on all of our products:


What I Wish I Knew at 18:  wiwik18-cover

  • 109 leadership strategies for a successful life, messaged to your teen
  • Powerful wisdom for college, career, family and finances
  • Builds 23 of the 40 Developmental Assets® and key workplace readiness skills
  • Conversationally written, third party voice for parents!
  • Complete curriculum for leadership, life skills, CTE, FCS and At Risk
  • Acclaimed by business leaders, educators, parents, mentors, and students!

 

Parenting for the Launch:  Launch Cove Web Res

 

  • Comprehensive parenting guide to navigate the teen years
  • Strategies for parenting with purpose and letting go with confidence
  • Powerful relationship-building strategies and communication tips
  • Primer for building leadership- after high school
  • Setting teens up for a successful transition into adulthood!

 

Order at AtlasBooks.com or 1-800-BOOKLOG

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Let us help you empower the next generation!


Tagged as: sale, special, holidays, gift buying, what i wish i knew at 18, parenting for the launch

8 Financial Mistakes to Avoid at All Costs

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!