by Elisabeth Donati | Mar 7, 2013 | Financial Literacy, Uncategorized, What you can do
“A penny saved is a penny earned.” – Benjamin Franklin
The great Benjamin Franklin was a wise man, indeed. If he were alive today, he might very well say that an online savings account is the perfect way to teach teens about fiscal responsibility. Teaching teens how to earn and save their money will pay off in the long run as they grow into financially responsible young adults.
Teenagers have special financial needs, but most importantly, they need to learn that Mom and Dad aren’t made of money. Parents are often the first source of information when it comes to money management, so it is important to start early. Here are some great tips for parents hoping to help their kids learn more about managing their money – and to get started, click here for more information.
Why teens should have a savings account
Unfortunately, many adults don’t know how to manage their money simply because no one ever taught them when they were young that the perfect gateway to financial responsibility is a savings account. Because these accounts allow only a certain number of withdrawals every month, teens are encouraged to spend less and save more. Additionally, they can watch their money grow with the interest earned each month; however, these are only the basic reasons why every teen should have a savings account.
Depositing money and balancing the register is only the first step toward developing a strong base in personal finance. The fee structure of a savings account is important for a teen to learn, the consequences of making withdrawals and overdrawing the account (if allowed) should be realized. Though the fees may seem simple to understand, they can play an integral role in helping teens understand the idea of keeping to a budget.
Choosing a savings account for any teen
With so many different types of savings accounts out there, choosing the right one for a teenager can be a bit of a challenge. Generally speaking a good savings account will have no minimum balance requirement and no monthly fees, unless the account has been overdrawn. When possible, securing a savings account with the highest interest rate is always beneficial.
Many banks actually offer savings accounts designed specially for teenagers. They are either low-cost or free to operate, and offer a number of perks as well as educational opportunities for kids and their parents. Just remember, for account holders under the age of 18 years, parents must co-sign on the account and accept financial responsibility for any missed payments, fees, or overdrafts.
Today, most teens probably know more about the Internet than their parents, which is why an online savings account might actually be the best bet. These accounts can be accessed from any computer, smartphone, or mobile device and may appeal to today’s tech savvy teen. With online account access, teens will be able to watch their money grow, manage the account, and view transactions in real time.
So, if you have a teen and you’re wondering why type of account(s) to set up for them, consider an online account and let teens learn how to manage their money by doing what teens do best…playing on the computer!
by Elisabeth Donati | Feb 26, 2013 | Book Reviews, Uncategorized
Witticisms from the Old Folk that Still Ring True
Today, I was sitting on my decking enjoying the bright Santa Barbara sunshine, sipping a cold glass of one of my favorite herbal teas, and thinking about Camp Millionaire and how we try to make it a fun experience for our campers. (By the way, I think we all do a pretty good job of that.) Most of us, as coaches, get that people like learning best when it doesn’t seem to be hard.
If only the books that are written on the subject of money approached it differently—made it fun, simple to read and easy to understand, perhaps more people would be willing to learn. Then I thought about a book by one of our fellow Camp Millionaire coaches, Patricia Davis. It’s clear from reading her book, Mimi, Money and Me: 101 Realities About Money Daddy Never Taught Me but Mama Always Knew, that she got the message.
“Learn to paddle your own canoe.” “Every tub’s got to stand on its own bottom.”
Sound like teachings from your mother or grandmother? That’s exactly what these are. They and more “Mimi–isms” are some of the lessons on life and on money that are talked about in Davis’ book–one that I think most of us, as well as many of our campers, could get a lot out of. It’s a lighthearted book that is chocked full of good, solid information about the rules of the game of money. Mimi was her Mother, a young widow with five children who was determined they would be ok financially, but things were going to be done her way!
As you can tell from some of the stories Davis tells in the book, Mimi was tough, “took no prisoners,” and was determined to teach her children life and money lessons. Oh, if only we could get more of our parents to feel that same sense of responsibility.
More “allowance” because you’d spent all of yours? Ha! According to Davis, it wasn’t happening! Says Mimi, “You knew when you got that money, how long it would be before you got some more. If you’ve spent all of yours, too bad. You get no more!” “Every now and then,” Davis says, “she might make you a loan. But, next allowance day, “Judge Mimi” took hers off the top; she didn’t wait to be repaid!” (Mimi-ism: A loan is a loan; it is not a gift!)
I had the pleasure of reading this book before it was published. In my comments (which are actually included in the book), I describe it as a “…refreshing approach to helping people understand some of the little things about money that can cause them BIG financial headaches.” I go on to say that “…Davis’ book helps you make sure your reality is always based on the right information.” Even I learned a few things from reading it.
The book is full of stories, money management myths, realities, and sayings that Davis calls Mimi-isms that are at the beginning of each chapter. It covers the waterfront with chapters on budgeting, banking, credit, estate planning, retirement and more. Chapters may be used selectively depending upon the age of your target population.
I strongly recommend Davis’ book. She’s even offering a “deal” to coaches who want to purchase copies for their programs. The book lists for $19.95, but she will sell it to Camp Millionaire coaches for only$12.50 per copy, if you buy at least 10 copies. If you’re interested, e-mail her directly at davisfinancial373@msn.com. In the subject line, write “Camp Millionaire Coach.”
Happy reading! Elisabeth
by Elisabeth Donati | Feb 11, 2013 | Latest News, Uncategorized, What you can do
I’m in the market for a new bookkeeper for my boyfriend’s company, Creative Carpet Repair. He’s taken it, in less than three years, from a single man (him) operation where he ran around in his truck up and down Southern California to a full-fledged company with six full-time employees, an office and close to 300 carpet repair contractors around the country.
But that’s not the point of this blog (but I am very proud of him!).
The point is that I can’t (or rather don’t want to) handle his accounting any more. There are too many account, there’s a lot of money flowing both ways and well, it’s time we passed it on to someone trained to do this. We need someone who can look at the numbers and tell us what’s up.
Many people tell me I’m the perfect one to do this since I’m the money lady but I’m NOT the money lady…I’m the financial literacy lady and that’s a completely different expertise :).
Who is Raving About Who?
So I’ve been asking around and one of our former employees, Ms. Karen Dwyer, who left to start her own franchise, Express Personnel, started RAVING about her accountant in the post office one day where I happily ran into her.
Karen told he how great he was, how much she trusted him, that he was reasonable and did what he said he would do in a timely manner and well, you can be darned tootin’ that I got his phone number and I’m going to give him a call this week.
We all know this as personal referrals but it’s more than this. We tend to call the people that others are excited about…the ones they RAVE about.
Like the movie your best friends says you “HAVE TO SEE.”
Or the new sushi bar that makes “THE BEST RAINBOW ROLL EVER!”
Or the new consignment shop that has “THE BEST JEAN SELECTION IN TOWN!”
You get the idea…Raving = Success
Not always, but most often, when people rave about something, you can bet it’s a success. And this is a concept you can teach your kids, and especially your teens as they get older and start wanting to figure out how to get ahold of money!
Phone Book (Google) Activity
This little activity is not only fun but enlightening for the whole family. It will show you how you have been influenced in the everyday consumer choices you make both locally and nationally.
- Someone picks a topic (pizza, hair cuts, etc.). Stick with local products and services at first and then go national if you want.
- Before looking in the phone book (if you still have one…I don’t think I actually do) or searching Google, write down the businesses that come to mind. Name as many as you can and list why you’re naming them. What have you heard about them.
- If you want to add another twist, do a list of businesses you’d NOT go to as well and list why.
- Then look those businesses up in the phone book or on Google (and remember when you search to add your town to the search, for example, “Santa Barbara pizza”).
- Notice the ones that come up first or the ones that have big ads. Are they the ones you use, buy from, or visit the most often?
- Have a conversation with your kids about this concept and ask them how it might influence how they do things as they enter the professional world of business.
How Can YOU Become the Raved About One
Being the one person people rave about requires consistent delivery of the following:
- 100% integrity: you always keep your word, you show up on time, you go above and beyond the call of duty, you add value to everything you touch, you change people’s lives in ways that are meaningful to them. Remember, this may mean, as in my example above, that you keep people’s businesses running impeccably and that they can count on you.
- Be honest: telling the truth is one of the most important values you can have in the business world. With so much marketing geared toward getting us to believe just about anything, it really is hard to know who to believe. BE the one who not only is believable but is telling the whole truth and nothing but the truth.
- Something unique: give something that no one else gives. When you’ve given 100% and delivered what people expect, what can you do that they didn’t expect that will cause them to stand up, take notice and rave about you? By the way, YOU can set up your customer’s expectations and then surpass them every time:-).
- Set an example: people love to rave about people they admire, look up to, and respect. Other professionals also tend to be influenced by the values, habits, behaviors and attitudes of the same. When you can set a great example for someone you work for, they will start to look out for you and send referrals, i.e., rave about you.
- Be positive and happy: let’s face it…it’s just not fun to work with someone who is miserable, unhappy, sad, depressed, exhausted, complaining, whiny or too serious. Ask yourself this simple question before going out each day…”What type of person would I want to work with?”… and then go be that person.
If you take some time to help your ‘adults in training’ understand these important points, and constantly have questions about these concepts as they get older, get their first (or second, etc.) jobs, have experiences in the professional world, you’ll watch your teens turn into adults who others rave about also!
by Elisabeth Donati | Feb 7, 2013 | Financial Literacy, Uncategorized, What you can do
Financial Freedom: What Does it Really Take?
I get emails all of the time from what appear to be stressed, tired human beings asking some very simple, yet serious, questions about money and financial freedom. This morning I got the following message and just had to share it and respond here on the blog.
Question from Grace…
How do you create financial freedom when you are at zeo: having a job, yes, but the salary is too little to save. How do I ever get to be financially free in this state?
Grace…great question and thanks for asking it. Let me give you the simple answer that I’m sure you’ve read before:
You have to either make more money than you spend (increase your income), spend less money than you make (decrease your spending) or perferably, embark on a combination of the two.
Since I don’t know from your email, where you are writing from, I don’t know if you have any other disadvantages that are holding you back, like freedoms, or lack of freedoms in other countries, or physical limitations, etc.
Let’s dig a little deeper into answers (there are many) to this allusive question based on the assumption that you don’t have any serious limitations that I should know about.
Part I: Financial Freedom – Think It First
Financial Freedom Begins In Your Mind
If you’ve realized you don’t know what you need to know about money and investing in order to create financial freedom for yourself and your family, you’ve no doubt started to find ways to teach yourself about this seemingly allusive stuff that in so many ways dictates our experience of life.
But it’s more than just the knowledge that you need…it’s the right thoughts, the right financial beliefs and the right attitudes about money and wealth that either support your journey to financial freedom or keep you away from it your whole life…and often never figure it out.
The very best book I have read on financial belief systems is T. Harv Eker’s called Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth
.
I’ve read this book four times already and plan to read it again soon. I learn more myself and money each time I read it and I’ve been TEACHING this stuff for years!
Here are some other great financial belief system books that are great:
Let’s just stay that becoming financially free is a step by step process starting with understanding your belief systems. When you start understanding what drives this aspect of your financial life, you can start making changes in your thoughts, beliefs and attitudes about money and wealth and you’ll notice things begin to shift in your life financially.
So if you’re struggling with money and how to create this peaceful state of financial freedom, start at the top…of your head that is. Read the books above and you’re financial situation can’t not change.
Stay tuned next week for Part II: Learning it.
by Elisabeth Donati | Jan 14, 2013 | Financial Literacy, Financial Literacy Principles, Latest News, Uncategorized, WEALTHwork™
Everywhere you look, companies are still offering people the opportunity to be irresponsible with their money. Even PayPal has gotten into the ‘credit’ game recently with their new BillMeLater service…but don’t do it and here’s why.
Painful Credit Lessons Don’t Last Long
The past several years has brought a huge percentage of Americans to their knees financially. The continued wrongful use of credit cards and the ‘mortgage’ situation should have taught us a thing or two about buying ‘stuff’ with other people’s money, but no…we’re still tempted and enamored by the idea that we can have all the ‘stuff’ we want today and pay for it tomorrow.
STOP THINKING THIS! Thinking that you can pay for things later is what keeps getting this country into the problems it’s in. In the US government only spent money it had, we would NOT be in debt…we couldn’t be.
Think Like People Who HAVE Money
Here’s the thing…
Wealthy, financially free, rich people are wealth, financially free and rich because they practice some very important, and simple, time-tested financial principles. Principles like Pay Yourself First, Put Your Money To Work for You and others.
Paying for stuff with other people’s money isn’t one of those principles.
Question: if you want to learn how to play the flute, do you learn from a concert flutist or a soccer player? I know…stupid question, huh. The fact is, if you want to have money, you MUST do what people who have money do.
In all of our financial literacy programs, we teach participants that the ONLY reason to borrow money (and that’s what using a credit card is) is if you have the opportunity to MAKE money by using it. (Caveat…I’m not talking about an emergency like a medical expense or something life-threatening.)
In other words, borrow money to invest in assets that are going to MAKE you money like rental property, parking lot, a business and other assets that have the opportunity to create a cash flow for you.
I would venture to say that most things paid through PayPal are NOT asset-like!
Financial Principles You Can Thrive By
Two of our Creative Wealth Principles (aka…Rules to The Money Game) that go hand in hand with this financial strategy are as follows:
Only Borrow Money When It’s Going To Make You Money
We’ve already discussed this one…
If You Can’t Afford To Pay Cash For It, You Can’t Afford It At All
This principle is quite simple. If you don’t have the cash, i.e., REAL MONEY, to pay for something right now, you can’t afford it. This is where we need to go back to saving up for things we want to buy. Something happened to the whole idea of delayed gratification years ago when credit cards were introduced. People no longer had to save up for purchases…they just went and bought whatever they wanted…and this was the beginning of what has become a huge issue for a huge percentage of Americans.
What You Can Do
The most important thing you can do is to learn a little self-control and the way you do that is have a big enough WHY for not buying everything you think you want or need.
In other words, learn to tell yourself, “NO, because I’d rather….. (fill in the blank).
Here’s an example of what I’m talking about.
Imagine you’re in your favorite clothing store and you see a shirt that you just have to have. Instead of buying the shirt on impulse, you say to yourself, “Self, I’m not going to buy that shirt because I’d rather feel more secure with an extra $60 in my savings account this month.”
We must learn to look further into the future when it comes to making personal decisions in regard to money, health, relationships. We all want things right now, whether it’s a new iPhone, piece of cheesecake or hugs and kisses. Learning how to best assert personal self-control, i.e., self-disciple, gives you the tools to create the future you keep saying you want for yourself.
WealthWork*
Answer the following sentences and then go look into the nearest mirror and say them to yourself. You won’t believe how powerful you’ll feel.
“I’m not going to buy this today because I’d rather experience……”
“I’m not going to eat this today because I’d rather experience……”
“I’m not going to say _______ to ________ because I’d rather create _________ type of relationship for the long term.”
And feel free to make up a few of your own.
As always, hope this information was valuable. Please leave your comments below and please share this post on your Facebook wall to share with your friends.
Elisabeth
The Financial Literacy Lady
Just helping you think differently about money
www.ElisabethDonati.com
* WealthWork is what wealthy people do in their spare time to create wealth for themselves.
by Elisabeth Donati | Dec 31, 2012 | Uncategorized, What you can do
I know, I know…it’s that time of year that we’ve all been convinced is the perfect time to change something about ourselves…
- How we look
- What we weigh
- How we workout
- What we eat
- How we treat others
- How we treat ourselves
- How we save money
- How we spend money
- How we invest money
Though it’s a great idea to look at our lives and reflect upon what we might like to change in order to get a different result…health, beauty, love, happiness, security, wealth…simply making New Year’s Resolutions doesn’t help much.
New Year’s Resolutions are Short Lived
Making New Year’s Resolutions might help in the short term…a few days, weeks or months…but the only thing that really helps you change something fundamental about your being is discovering and implementing the most amazing WHY for the change that you think you want.
Notice that I said, “think you want.” And it means just what it says. Often we think we want something when in reality, we really don’t want it. We either think we ‘should’ want it or someone else says we should want it when in reality, we really don’t care one way or the other.
I heard it said once that if you really want to know what you’re committed to, look at your life. We do, and don’t do, the things we’re committed to. So believe it or not…
- If you’re poor, you’re committed to that.
- If you’re unhealthy and fat, you’re committed to that.
- If you’re unhappy, miserable and depressed, yes, you’re committed to that.
For whatever reason, being poor, unhealthy, fat, unhappy, miserable or depressed provides something for you that you need or want for yourself. In other words, it’s serving some purpose.
Quite often we choose to stay the same so we can blame someone or something else for our current and past life situations.
The fact is, however, that until you GET that you’re making the choices that bring you closer to, or further away, your goals, you will never have and experience what you say you want to experience.
So, all this being said, you can now see why all of the New Year’s Resolutions in the world can’t help you achieve your goals. Instead, use the five steps below to strive toward, and reach, your goals.
5 Steps to Achieving Your Goals
1) Sit down and decide what you want. I know it sounds silly but sometimes we just don’t know what we want. It’s often that I ask myself what I really want and I don’t get an answer. Then out of the blue, something will come up for me and I’ll say out loud, “I want that!”
2) Write it down and draw a picture of it. Somehow putting whatever it is that you want in some tangible form helps the laws of the Universe bring you closer to it.
3) Write down the steps it will take to create that thing or situation for you. Write down as many of the small steps as you can think of and constantly revisit this list. What you’ll find is that the more defined and thought out the list is, the easier it is for you to take the baby steps you need to take to reach the goal.
4) Take those baby steps. Even if you just take one baby step per day, you’ll eventually reach your goal. You can’t help it…it will happen before you know it. One baby step…we can all do this!
5) Enjoy the process. If you don’t enjoy what you’re doing, it won’t last, you won’t take baby steps and you’ll never get what you say you really want for yourself…whatever it is.
BONUS STEP – Re-evalute #1 to make sure you really want what you say you want. If you’re finding it hard to write it down, come up with the steps or stick to the baby steps, you simply don’t want this thing badly enough. Stop wasting your precious time and energy and figure out what it is you really want.
OK, what are you waiting for? Start at #1 and then go enjoy The New Year without all the guilt!
Happy New Year to you all!
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