Eight Ways to Avoid “Foot-in-Mouth” Disease

These days, it feels like the majority of our communication is online. Thanks to Facebook (and other social media platforms), e-mail, blogs, and the capability for many career positions to work remotely, most of us are more comfortable communicating online than we are in person. In fact, because we live in such a tech-inundated world, face-to-face communication skills (especially amongst young people) are at their all-time worst. Needless to say, we could all use some tips on how to avoid miscommunication—for those times when a text message or SnapChat just won’t do.

You see, it’s not uncommon for the messages we send to be received differently than we intend. And when it happens, it can be a disaster. It’s crucial that we are aware of the way we say things and how we come across to others. This applies to making first impressions at job interviews, dating, relating to your employers, making new friends, and more. It can’t all be done online! (Thank goodness!)

Miscommunication can happen to all of us.  Fortunately, there are some simple things you can do to minimize it. Three things affect how others receive our messages… and any one of them can be the cause of major misunderstandings if we’re not careful. As you step out from behind your computer, look up from your smart phone, and engage with the people around you, keep these three tips in mind:

  1. Word choice – This factor is huge, especially when we discuss sensitive topics and issues we are passionate or emotional about (e.g., politics and religion). In these situations, our emotions can interfere with our thinking, and we often use more provocative language that we later regret. As a result, the other person can become hurt and offended. Take a deep breath or two before you speak so your internal filter can soften your rhetoric.

 

  1. Delivery – Sometimes it’s our manner of delivery that gets in the way, even if our word choice is fine. Delivery is especially important when meeting people for the first time. Examples include speaking with a harsh (or bored, unenthusiastic, or condescending) tone of voice or displaying certain expressions and body language that are not received well by others (crossing arms, standing over someone, frowning, smirking, rolling eyes). No matter what words we use, if the “packaging” is incongruent, our message will lack credibility and rub people the wrong way. Always pay attention to the non-verbal cues your audience is sending!

 

  1. Filter – (No, I’m not referring to Instagram.) Depending on whether your audience likes or distrusts you, whether they’re in a good or bad mood, focused or distracted, your message may not get through in the way you intended. Unfortunately, this happens all the time, and you can’t control it. Filter is the one aspect of miscommunication is that most out of our control.

 

In short, here are eight ways to help you avoid miscommunication with others (and needing to put your foot in your mouth or apologize later on):

  • Be sure your expression (body language, facial expressions) are in sync
  • Think before you speak
  • Strive to be empathetic by putting yourself in the receiver’s position
  • Closely monitor the receiver’s body language to see whether he or she may be interpreting your words differently than you intend.
  • Be a discerning listener when they respond
  • Be quick to apologize for any misunderstandings
  • Avoid coming on too strong, especially with people who don’t know you well. It takes time to build the relationship capital needed for people to give you the benefit of the doubt.
  • Remember, it’s okay to be professional in casual settings, but not the reverse!

How do your own in-person communication skills rate? Do you have any other tips on avoiding miscommunication you’d like to share?

 Note: This is an excellent lesson for role-playing in the home or classroom. Encourage your teen or students to act out different scenarios in which the verbal communication could be misinterpreted. You will find a great lesson in our What I Wish I Knew at 18 study guide on this subject.

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!

Self Awareness: Where Career Readiness Begins

“Today you are You, that is truer than true.

There is no one alive that is Youer than You.”

~Dr. Suess

 

I love visiting with high schoolers and college students about their career plans. It takes me back to when I walked in their shoes. I remember feeling excited and confused at the same time. Eventually I found my way, but it was a circuitous path!

Some of my mentees are quite certain of their career interests and have laid out detailed plans to get there. However, most of my conversations go something like this:

Me:      So, what career or major are you considering?

Them: My parents want me to take up ____. My dad (or mom) has had a great career in it. But my friends think I should go into ____.  My school counselor has even different ideas.

Me:      So, what do you think?

Them:  (Anxious pause) I just don’t know.

Several things always strike me about these exchanges. One is how often they focus on what others think, rather than themselves. Two is the depth of anxiety, doubt, and pressure they are feeling about their future career. And, three, they are making this critical decision without the benefit of self awareness. They’re shooting in the dark, and it’s a shame. Fortunately, there is a better way!

Just as when we build our dream house, career planning begins with a solid foundation. In this case, it is a foundation built on the understanding of self—knowing who we are, how we are gifted with unique talents, experiences, and attributes, and what we’re interested in and passionate about. The who, what, and why… of us! If we don’t fully understand ourselves first, finding a career that fits is a random exercise, at best.

Career assessment surveys are indeed helpful, but tend to focus on skills and interests rather than the complete picture of self. As such, we encourage educators and parents to take a broader view.

At LifeSmart, we take a holistic approach to self assessment that helps students discover the unique value (assets) they have to offer to this world. It considers a wide range of asset categories that builds self confidence, a sense of identity, and inspires a healthy life vision. Here is an abbreviated summary of some of the asset groups we believe are essential for career and life readiness training:

  • Foundational Assets:
    • Physical: strength, speed, agility, endurance, dexterity, vocal, visual, auditory, sport-specific, appearance
    • Mental: intelligence, aptitudes, analytical ability, reasoning, creativity, conceptual thinking, intuition, memory, concentration, subject specific
    • Behavioral: personality (pace and people/task focus), attitude, social attributes, outlook, emotional intelligence, communication, productivity, soft skills
    • Spiritual: faith, values, inspirational experiences, encouragement
  • Aspirational Assets:
    • Experiential: credentials (academic, career, skills, service), life experiences, leadership, perspective
    • Interests: knowledge pursuits, recreation, leisure, industry, activities, entertainment, travel, nature, spiritual life, creative arts, social
    • Passions and Dreams: desires, causes, purpose, personal and professional goals, bucket list items

Knowing that self awareness comes through self discovery and affirmation from others (note parents!), we’ve developed a personal leadership assignment you can access here. It not only helps identify your unique assets/strengths, but it also captures the invaluable perspectives of others who know you well and have your best interests at heart. This is a great personal leadership assignment that can be led by educators or parents. Be sure to explore other self awareness resources, too.

It’s important to remember that some of these assets will be used directly in our careers while others help in different arenas. Regardless, by taking an inventory of our unique assets, personal nature, and desires, we’re much better equipped to select a great career match.

Successful people lead from their strengths, but first they have to know what they are. Help the students and children in your life understand their uniqueness and value. It’s one of the greatest gifts we can give—for their eventual career and for all of life.

 

 

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

Last week, we shared the first five of our ten best parenting tips to build college readiness and circumvent the “derailers” plaguing college students today. The sooner we can build these skills in our future collegians, the better prepared they will be to succeed! Without further adieu, here are the final five tips:

 

  1. Respect their need for balance and margin. In an effort to build a foolproof resume for their college applications, many students overcommit and are completely stressed out. Most of this is originating from performance-driven parents who mean well, but who are undervaluing their children’s need for balance, margin, downtime, and sleep. Not surprisingly, rebellion and/or high anxiety are common in college as a result of this pressure.

    This is a reminder to parents to help teens maintain a healthy work/life balance. Be realistic about the time requirements of their activities and avoid overscheduling. Also, encourage them to be highly selective in committing to college activities, especially in the first year when there are so many exciting opportunities. Variety is great, but balance is key.

  2. Develop career savvy. Many high schoolers are needlessly anxious because of pressure to know exactly which career to pursue. However, the reality is they’re still discovering themselves! Also, they’ve yet to take advanced courses in their major, and many haven’t even spoken with actual practitioners to gauge whether a certain career path is a good fit.

    You can play a constructive role with your high schoolers by building career awareness. This means: 1) having them complete career assessments (e.g., careerbridge.wa.gov and www.careercruising.com), 2) introducing them to people with interesting careers, and 3) training them on the process of selecting a career. Also, be sure to develop their marketing skills for interviewing, resume/cover letter writing, and networking. Offer real world career insights, including the qualities that employers value most (e.g., integrity, high standards, dependability, relational skills, positivity, work ethic, and resilience). What I Wish I Knew at 18 has several excellent success pointers to build your teen’s career savvy.

  3. Instill healthy living habits. The Freshman 15 (pounds, that is). The party scene. All nighters. Yes, they’re real. And, too much of a good thing is spoiling many college careers. With newfound freedom and a world of choices—some healthy, some not, and some even illegal—many students are underachieving, anxious, in poor health, and eventually, dropping out. Freedom can be a two-edged sword.

    It’s beyond the scope of this blog to do delve deeply into healthy living habits, but these are a must to nurture before the fact: 1) nutritious and balanced eating (a huge challenge when they enter Carb Heaven!), 2) physical activity and exercise (working out at the gym/joining intramural teams), 3) adequate sleep, and 4) positive stress relievers.

  4. Build their financial literacy. Far too many college careers are abbreviated for financial reasons. Whether it’s due to lack of affordability, poor spending habits, or credit card debt, student financial stress is impacting performance and college completion. Of all the topics where parents mistakenly assume their children are trained in school, this is number one. For too many schools, personal finance is not a requirement or even offered. Parents should assume the leadership role here.

    Some financial musts for your future collegian: 1) understanding needs versus wants, 2) knowing how to develop and adhere to a budget and spending plan, 3) understanding the basics of credit and debit cards (latter preferred for collegians), and 4) choosing a major that will yield a positive return on college investment.

  5. Impose guidelines for technology/social media use. While technology serves many useful purposes, the side effects rarely receive the airtime they deserve. Issues with shorter attention spans, addiction to devices, distraction, lack of motivation, irritability, communication deterioration, wasted time, constant stimulation, and, yes, destructive content, are interfering with student health and success.

    To counteract these influences, institute and enforce healthy boundaries in your household (e.g., time limits) when it comes to technology and social media use. You may lose some “popularity points” with your children, but the stakes are simply too high for a laissez faire

 

We hope these tips are helpful to you, and we encourage you to share them with others in your sphere. Here is a link to the complete article. Let’s set all of our future collegians up for success!

 

 

Growing Signs of College Unreadiness

university-graduatesHave you experienced something like the following? You’re invited to a high school graduation party brimming with pride and promise. In a few short months, he/she will be heading off to college to fulfill his/her dreams, so it’s a festive occasion. Then, after a semester, a year, or maybe two, we hear the disheartening news: in an unexpected turn of events, our friend/relative/son/daughter just dropped out. That upbeat graduation party seemed like only yesterday, didn’t it? Now what?

By all accounts, stories like this are becoming more common. Here are a few telltale signs:

  • The US college completion ranking among 28 nations has fallen from first in 1995 to 19th in 2012, according to OECD. That’s a substantial shift in a mere 17 years.
  • Many colleges are reporting significant increases in student demand for mental health counseling services. Nearly 10 percent of students are receiving such treatment. (Note: some of this increase may be due to efforts to destigmatize mental health issues and seeing a counselor. This is a positive)

Clearly, though, these are worrisome trends. Why are so many students struggling? Are they unready?

Peeling the Onion

According to the 2013 Association of College Counseling Center Directors Survey1 of 380 colleges, here are the top 10 reasons cited for student visits with counselors over the 2012-2013 period: Anxiety (46%), Depression (39%), Relationship Issues (35%), Psychotropic Medication (25%), Suicidal Thoughts/Behaviors (18%), Extensive Treatment History (14%), Alcohol Abuse (11%), Self Injury (10%), ADHD (8%), and Drug Abuse (8%). All of these are concerning, but number five is downright alarming.

That anxiety ranks number one shouldn’t come as a surprise. After all, the college years are inherently stressful, with students facing new environments, responsibilities, competition, and career decisions. That’s a lot to absorb, as many of us may remember all too well!  Among the most commonly cited student stressors are: relationships and loneliness, competitive academic and social pressure, time management/workload/balance, career/major choice, finances, poor eating/sleeping habits, roommate incompatibility, and handling newfound freedom responsibly. Whew!

Contributors

Obviously, each individual situation is unique, and preparing students for success in this major transition is no easy feat. That said, we believe the following are some of the main causes of college unreadiness and student struggles:

  1. Helicoptering and performance parenting: many of today’s parenting methods, often well intended, are producing students who are ill equipped for adulthood and the performance pressures imposed by their parents.
  2. “College for all” mentality: in recent decades, college has been loudly messaged as the ticket to success. Many students would have been better served choosing a different path.
  3. Inadequate commitment to independent living preparation and soft skill development in high schools: schools vary widely in course offerings involving independent living, college/career preparation, leadership, and soft skills (e.g., resilience). In most cases, these valuable courses, if offered at all, are considered electives. Further, there isn’t formal accountability for success after
  4. Insufficient college onboarding programs: arriving on a college campus can be a “deer in the headlights” experience! First year students could benefit from stronger student transition management programs, including how to handle the most common challenges and “derailers.”
  5. Extended period of adolescence: research is showing that the adolescent stage is lasting longer than before. This suggests that today’s college entrant, on average, may be less mature than in year’s past.
  6. Susceptible age: the years from 18-22 often reveal genetic predispositions to mental health issues. Further, at this time of major decisions and transitioning, the adolescent brain is still undergoing significant development. This is a massive amount of change to endure in a short period.

 

We all have a stake in improving this situation. Next week, I’ll share some parenting strategies to help prepare your teens for a successful college experience.

1”Top Reasons Students Seek College Counseling Centers,” Matters of the Mind, http://www.themillennialminds.com

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!

Take Charge of Your Worries

Have you ever noticed that some people are chronic worriers, while others seem to calmly take things in stride? I’ve often wondered how hard life must be for the worrying types. They face the same uncertainties as more easygoing types, but somehow manage to focus on what could go wrong or how something may potentially negatively affect them. It shows up in their stress level, appearance, disposition, and encounters with almost everyone.

Very early in life, I decided to minimize worry because it rarely did me any good. I noticed that the more I worried, the more difficult life seemed. I learned to adopt a phrase my mom always said: “Don’t sweat the small stuff.” I realized that things generally worked out fine anyway, and even when they didn’t, I somehow managed to deal with them (and build a little humility and resilience in the process!). The best approach is to focus on the things I can control.

If you have a tendency to worry (as in, “what if he/she won’t like my gift?!?”), I encourage you to reflect on the following questions:

  • How often have your worries actually been justified (i.e., when the bad news DID happen)?
  • If things didn’t work out, did you still deal with them well and grow as a person?
  • Can you remember what you worried about a year ago?
  • What do you tend to worry about and why? Can you instead channel these worries into a productive plan to achieve a good outcome?
  • What can you do to worry less and trust yourself more?

In addition to asking yourself these questions, you can also follow these tips to help you slow down, relax, and focus on the positive and constructive instead of the negative and hypothetical:

  • Accept the fact that uncertainty is a normal part of life..We can’t always know the outcome of a situation before we enter it!
  • Even if your life has been filled with challenges, try to take each opportunity with a fresh start. Keep an open mind and try to avoid jumping to conclusions.
  • Surround yourself with positive people who are uplifting and encouraging. And, by all means, take advantage of the wisdom and care from your friends and family.
  • Set aside a “quiet time” for yourself every day, especially when you’re going through a challenging time or decision. Use this time to reflect, meditate, and think about the things that may be bothering you. When you make this a regular habit, you will notice you spend less time throughout the day distracted by worrisome thoughts.

Every one of us will go through challenges and worries. In fact, our greatest character growth comes from enduring trials, which often prove to be for our own good (even if it’s hard to fathom at the time). So if you’re a worrier, do yourself (and those around you) a favor: take charge of your worries rather than letting them take charge of you!

“Worry never robs tomorrow of its sorrow, it only saps today of its joy.” –Leo Buscaglia

 In uncertain situations, do you tend to worry a lot? What steps can you take to worry less and trust more? What tips and tricks have worked for you?

 

 

How to Start Treating Your Teen Like a (Real) Grown-Up

Parents: how many times have you heard your teen say, You treat me like a kid!” How many times have you responded, “Well, it’s because you act like one!”?

Teens are constantly and increasingly tugging at the reins, wanting more and more slack. When teens ask to be treated like adults, what they’re really wanting are the privileges of adulthood. A car. Money in their pockets. Decision-making authority. Autonomy. Unfortunately, because of the nature of childhood (immaturity) and the tendency of some parents to rescue, pamper, and enable— that day never comes (or doesn’t come soon enough).

Have you ever wondered, when I am SUPPOSED to start giving them more leash?

The reality is most teens are ready for more responsibility than we give them and need opportunities to exercise it. Adults have extra rights and privileges that kids look forward to enjoying and usually want now. But remember that for adults, those privileges are usually attached to responsibility. For example:

  1. I have a car (privilege). I must earn money to fill the tank and pay the insurance and maintenance (responsibility).
  2. I can stay up (or out) as late as I want to, every night (privilege). However, I have children who need to be off to school early in the mornings, and a busy daily schedule that requires me to have enough sleep to be in top form (responsibility).
  3. I can make any decision I want to (privilege). However, I have a spouse and children (and neighbors, employers, coworkers, friends) whose lives and happiness are influenced by my decisions. Sometimes, what I want to do is outweighed by what honors and benefits others (responsibility).

What children need to understand is that privileges, in the real world, are attached to responsibilities. If we give them the privileges, but don’t require responsibility, we set them up for an entitlement mentality—and for struggles in the real world. Folks, this is a pervasive issue.

So, the next time your teen tells you he or she wants to be treated like an adult, do it! Treat him or her like a real adult—not just with privileges, though. Make sure there are responsibilities to go with them and explain the connection. You don’t need to give up full control all at once. But, you can start by requiring them to do things like:

  • Contribute to their own income by getting a job (or babysitting, etc.)
  • Buy their own car (or make a significant contribution to it) and pay for all or most of their gas
  • Make their own appointments (dentist, doctor, hair, etc.). Encourage them, as much as is appropriate and realistic, to go to the appointment themselves, fill out the paperwork, etc.
  • Do their own laundry and make their lunch
  • Clean up the house before and after they entertain friends.

If you are a parent who draws a great deal of identity and personal fulfillment from doing things for your children, it can be difficult to change your habits. You may feel like you’re being mean. But, if you want to set them up well for the launch and equip them to be happy, healthy, functioning, and successful adults, it must happen. It will pay huge dividends in the long run to start moving now to the passenger seat and becoming more of a cheerleader/coach as your teen learns to operate in the driver’s seat of his or her life.

 

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!

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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!