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Reasons for Your Teen to Work (Part II)

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Teens can build connections through part-time work

Another good way that part-time work benefits a teen’s resume? References. By working part-time, teens can get contacts with adult employers that can act as references and give recommendations in the future. These connections may even be able to provide future job opportunities.

Students can help with their own college fund

Having a job as a teen helps develop a work ethic.

Obviously, teens want to spend their part-time earnings on the fun stuff. But they must spend it responsibly as well. By saving all or some of their part-time earnings, teens can put a big dent in their college expenses, relieving a load off their parents and eliminating costly student loans that can halt post-graduate financial growth.

Work offers a constructive use for free time

Teens who might be bored find something good to do in their hours after school. Working offers adult supervision for teen workers, giving them a positive activity after school. Keeping teens busy, instead of just talking and texting on their cell phone, just might be vital in keeping them out of trouble in the afternoon and evening.

Teen employment fosters a healthy transition to adulthood

Having a job is a vital stepping stone to adulthood. With a job, teens are able to practice self-reliance and independence. This is very true for teens coming from a life of poverty, giving them a chance to have a better life.

Teens who work may earn higher grades in school

Another good part of the balancing lesson that comes along with teen work: better grades. Research has shown that students who work 10 to 15 hours a week during the school year get higher grades than students who don’t work at all. It’s probably having a limited amount of time to get school work done inspires teens to actually do it rather than put it off and forget about it.

 

Reasons for Your Teen to Work (Part I)

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When your teen works they are gaining valuable experience.

Working teens can be a double-edged sword. Research indicates that some teens could get lower grades and even get into trouble with alcohol and drugs as a result of after-school jobs. But for plenty, the advantages outweigh the risks. Building experience, self-reliance, and vital skills are among some of the top advantages many teens see from part-time work, and they’re among the top reasons for teens to get an after-school job. Read on and see the great reasons teens should work while in school.

Working makes adolescent life more affordable

Parents of teens today know how costly it can be to have a teenager in the house: electronics, clothes, even a car can all add up to big bills. Some families can afford these things for their teens, but not all can or want to pay for them. When teens get a part-time job, they are able to help with the cost of their expenses or completely pay for them.

Earning money provides an opportunity for financial education

Sure, children can learn about personal finance from getting an allowance. But that’s small potatoes. When teens start to earn their own money, the real lesson starts. As they earn money and spend it, parents have the chance to teach their children about responsible money management. Helping with car expenses and their college fund, making a budget, and learning just how much things such as gas and food cost are all lessons that are achievable with a teen’s paycheck.

Teens get valuable work experience

These days, the job market tends to favor those with experience over education. Although a college degree is still quite valuable, it’s even more valuable when linked with work experience. Students who are able to work while in high school and college can demonstrate this experience and build valuable entries on their resume. This also shows that they are able to productively balance work and education at the same time.

 

What is Wealth Management (Part II)? 

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It Optimizes Your Plan

Your wealth management advisor will help you stay on the right track.

Given you’re reading an article about wealth management, there’s a solid chance you’re already doing plenty of the right things to achieve your financial goals. A financial professional isn’t going to alter your destination, but they might assist you in getting there sooner.

You can compare wealth management to an app such as Waze. When you put in a destination, you get the best way from point A to B. But if there’s heavy construction or an accident, Waze will recommend changing routes to eliminate those traffic headaches and save you time. Your endpoint is the same, but you took a somewhat different route to get there.

Likewise, an advisor can make little changes, like put a little more of your portfolio into a specific sector of the market using her or his expertise and your personal goals. These tiny adjustments along the way are like little detours that can help you sidestep trouble.

Since an advisor is watching the store all the time, they could see changes that would otherwise go unnoticed. That’s because they aren’t just depending on their individual expertise, they’re also using the collective knowledge of the staff of financial minds at the institution they represent.

It’s Personal

This is maybe the most unique feature of wealth management: It’s very personal. A financial professional will sit with you to come to know who you are and where you want to be. They’ll learn how much risk you’re comfortable with. They’ll help you realize how your new business venture affects the kids’ college tuition.

It’s for Everyone

When it comes to the idea of managing assets in your best interest, don’t let the word “wealth” scare you off. Wealth management isn’t just for the rich. Even if you’re just beginning your career, you’re still building wealth. Wealth management is for everyone.

 

What is Wealth Management (Part I)? 

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When it comes to wealth management, speaking with an advisor will help you stay on track with your finances. 

An affluent retiree desiring to visit every country might define wealth management way differently than a 30-something small business owner wanting to push his or her enterprise past those critical first three years. Talk to a banker and a stockbroker about wealth management, and you’re going to get two very different viewpoints. Here’s the issue: every definition would be right.

That’s because, in the finance world, wealth management isn’t just one thing; it’s everything. It’s like financial planning, but more widespread.

Broadly speaking, wealth management rolls financial and investment advice, risk and insurance planning, accounting, taxes, retirement planning, legal advice, estate planning and more all into one. Someone who is managing your wealth keeps an eye on all these important parts of your financial picture and connects them in a way that keeps you on track to accomplish your long-term objectives.

Though, wealth management isn’t just number-crunching and moving funds from account to account. It goes far deeper than that. Here are some of the main characteristics that make wealth management truly distinctive.

All-Encompassing

If you have a life insurance policy, you worked with an agent. For that business loan, you possibly met with a banker. During tax season, you might go to your accountant’s office to crunch the numbers. Need legal advice? You call an attorney.

All these folks are working in your best interest when you come to them for help. But they’re also driving in their individual lanes. No one is really seeing your whole financial picture. For instance, given your current asset allocation in your retirement funds, where does your life insurance policy fit in? That’s not of much concern to a banker managing your loan, but it really would be to an advisor managing your wealth.

A wealth management advisor will make sure no individual part disturbs the balance of the whole.

 

 

The Importance of Having an Emergency Fund 

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Your emergency fund can cover your expenses if you lose your job unexpectedly.

Your future self will thank you for creating an emergency fund now. It’s vital to set aside emergency savings can help you get in case your home requires an emergency repair or something more serious such as losing your job.

Having an emergency fund is one of the most critical things you can do. It’s part of adulting. Your savings must be able to cover your big expenses for three to five months.

Having a solid emergency fund gives you peace of mind. No one wants to live from paycheck to paycheck and not being able to pay the rent or a car repair away from not being able to get to the j-o-b.

It also offers you freedom. If you decide to leave a relationship or your boss gets so unbearable that you have to leave before finding another job or you want to go back to school or begin your own business, having an emergency fund gives you the freedom to do these things.

Keeping that money apart from the money you use to pay bills can help curb frivolous spending.

Sometimes when you see a huge number in your checking account you get a little big-headed a little more irresponsible Keeping the money separate can help you evade temptation.

What is an Emergency?

You must only dip into your emergency funds for a true emergency, such as to keep yourself afloat between jobs, for an auto repair, a medical expense, or a home repair. You can’t use your emergency fund for things such as a shopping spree, to buy a new cell phone or laptop, or to go on vacation.

How Much Should You Save?

Your emergency fund has to be 3-5 months of expenses. That sounds like a lot and it is but remembers, that number can be your bare-bones cost. If you were to lose your job your spending would be different than it is when you have money constantly coming in.

 

Reasons to Have a Piggy Bank

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In an effort to encourage all to save, we want to showcase one of the simplest, convenient ways to save: the piggy bank.

Piggy banks are a great way to save money from childhood all the way to adulthood.

Each person gets a piggy bank at some point in his or her childhood. It’s one of the most efficient ways for parents to teach their kids the value of saving money instead of spending it. More importantly, the piggy bank is also a great reminder for parents and young adults who might have failed to recall the significance of saving.

Here are the reasons why everyone, young or old, must have a piggy bank:

It helps keep loose change. Rather than losing all those nickels, dimes, and especially pennies under the couch cushion, in the bottom of your purse, hold onto them and put them inside a piggy bank. Not only will this aid in cleaning up the car and house, but it will also further strengthen good money savings habits.

Sets a great example 

Piggy banks are an effective and easy way to teach children about the importance of saving. They may not be saving up for a huge purchase, but they might want to save up for something, whether it’s a new toy, a new bike, or new clothing. Teaching them the advantages of using a piggy bank will go a big way in the future.

Reinforces “Always Be Saving” 

Saving should constantly be top of the mind when it comes to money. As the saying goes, “a penny saved is a penny earned.” It doesn’t matter if you’re putting some of your pay into a savings account or putting change into a piggy bank, every little bit helps. With a piggy bank, you’re able to see your money increase every time you save. This is a good habit to keep even throughout your adult life.

 

The Cons of a 529 Plan

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While there are advantages to using 529 plans as an investment for college funds, there are some huge cons to consider:

While 529 plans are a great idea to help save up for your child’s college, they have some disadvantages too.

You have to use the money for college
If you don’t use the money you invest in a 529 savings plan for college tuition, you will be penalized when you take out the money to use it for something else. Also, both your state and the federal government will tax the earnings on your account in your present tax bracket.

It could affect your financial aid eligibility
Currently, financial aid eligibility isn’t disturbed much by 529 plans, college savings plans or pre-paid tuition plans since these plans are thought to be part of the parents’ assets in the calculation of the Expected Family Contribution (EFC) toward college costs.

Your investment options are limited
Even though your 529 savings plan is tax-deferred, you might give up the chance to change your mind about where to invest your money. Meaning, if you discover a mutual fund that is growing more in interest than your 529 plan and desire to move your money, then you will be subject to a penalty.

Your investing window may be tight

Many plans have an all-in-one fund that’s just like a target-date fund. It’s created to own more stocks when your child is young and more bonds and cash equivalents, such as money market mutual funds when he or she nears college.

If you have a late start, you could find yourself stuck in a close investing time frame.

Put off saving until your child leaves daycare, for instance, and you’ll have just around 13 years to grow a college fund.

Since you’ll need to get into asset-preservation mode six to seven years before the child starts college, you’ll honestly have only around five years on the front end to put in your portfolio higher-yielding stocks or CDs.

 

The Pros of a 529 Plan 

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Before you invest in any sort of college savings plan, you might want to consider the pros and cons that it provides. The information here could help you as you consider using a 529 plan to have college funds for your child.

The benefits of a 529 plan

Here are some good reasons to invest in a 529 college plan for our child’s college fund:

529 College Saving plans are a great way to ensure that your child can get a good education.

529 plans are tax-deferred investments
When you invest in a 529 college savings plan, your withdrawals will probably be tax-free. It’s always smart to check IRS Publication to be sure. Until now, this tax-free provision was made to expire in 2010, but, thanks to current changes to the law, it seems to be an advantage that will be around for years.

Your account grows interest
529 plans work like mutual funds. Some states’ plans might work differently, but most invest your money in stocks and bonds in the chance that it will grow faster than a regular bank savings account. Most plans do a very solid job of managing your money.

An automatic investment option
Many plans provide an automatic investment choice which lets the 529 college plan take out a certain amount of money every month from your checking or savings account. You decide the amount and better yet, you get to enjoy hands-free investing that aids in preventing you from spending your money on something else. You will have money in the bank!

You can contribute as much as you want
College savings 529 plans let you put in as much money as you want. Pre-paid tuition plans, sadly, do not. They limit the amount of money you can put in annually the same as an IRA. While unlimited savings sounds wonderful, be cautious not to put yourself into a corner by saving too much.

 

 

Is Bitcoin Over? 

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The worth of internet cryptocurrencies such as Bitcoin rose in recent years, with bitcoin chalking up a rise of over 1,500 per-cent from around $1,000 per coin to more than $18,000 between January and December. Since climbing to this fever pitch, though, the cryptocurrency market has lost almost three-quarters of its value, losing over $500b (£393bn) in a steep sell-off that puts the recent decline of the Turkish lira in the dark.

Bitcoin is in a downward spiral.

The price of a Bitcoin is now about $6,245, a 68 per-cent drop in recent months. Ethereum, the second-largest cryptocurrency, has suffered a similar slide. It is down over 80 per-cent from around $1,400 to $173 a coin over the same period. Lastly, Ripple, the third-largest, is down 92 per-cent, from around $3.20 a coin to $0.26.

Downward spiral

Experts say numerous factors drove the decline. One of the most critical is the refusal of the US regulators to approve a number of Exchange Traded Funds (ETFs) based on Bitcoin because of concerns over the security of exchanges.

Mark Ward, head of execution at Sanlam UK, said: “A lot was waiting on that ETF approval and it hasn’t come as the SEC just doesn’t think cryptocurrencies are secure enough for the mainstream currency.” This unwillingness was reinforced by the largest cryptocurrency hack on record: in January $534m was taken from Japanese exchange Coincheck, dwarfing the notorious hack on MountGox in 2014. Other raids recently are those on South Korean exchanges Coinrail and Bithumb, which lost £37m and $30m respectively.

Other noted factors for the crypto crash are the increasing price of mining the bigger currencies, many warnings from central banks, and a surge of selling among crypto entrepreneurs. Though, for some money specialists, really what we are seeing is the end of a trend.

Taking a Vacation on a Budget

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Taking a family vacation doesn’t have to make the family broke. If you are willing to be flexible about opportunities and timing, you can get a good deal. From money-saving strategies to bargain destinations, here’s the 411 to creating the perfect budget-friendly family vacation with kids.

The secret to arranging an affordable family vacation is developing a game plan that’s surefire and simple. Here’s how to craft a no-fail plan that will guarantee you are forever able to have a great getaway at an affordable cost.

If it’s May, it’s that time for getaways from the professional travel groups. The spring is the time for travel sales have savings of up to 60% off regular prices. Every year, over 25% of the US top travel brands have teamed up with the U.S.T.A. to provide travel deals not available anywhere else.

Dying to get away but don’t want to spend a lot of money? Get the kids and get to packing. Memorial Day weekend is one of the year’s best secret seasons. Impulsive travelers can get some of the largest savings.

The simplest way to keep family vacation costs low? Choose a place in driving distance of where you reside.

These travel deal websites will hook you up with incredible getaway deals close to where you live. Sign up for alerts and newsletters using a new e-mail account just for vacation info.

For vacations where it makes more sense to fly, sign up for alerts from sites that follow airfares. If you pick just one, make it AirfareWatchdog, which allows you to get alerts based on your home airport. This way, you’re always in the know about which destination is having a great sale and you can be the first to book tickets. This year, make that family vacation dream come true!