Like many people, the recession hit me pretty hard. Thanks to a job loss, I got behind on some of my credit cards. Even though I did mange to make the mortgage payment every month, my credit rating nose-dived. While things did get better, I still wondered if it would be possible to refinance my mortgage with bad credit. After talking with a few lenders, I found out that my situation was not unique. I also found lenders who were willing to work with me. I managed to get terms that will save me money over the life of that mortgage. If your credit has taken a beating, don't assume that refinancing is out of the question. I'll share how I researched options and found a lender who offered a good deal. You could find that refinancing your mortgage is within your reach.
If your teen is about to enter high school, now's the time to start teaching them about investments. The old days of simply sticking money in a savings account and waiting for it to collect interest are long-gone. While basic savings accounts are still a good thing to have, they're not the type of investments you're teen will need to secure a successful life later on. Here are four steps you can take to help get your teen started on the path to a successful financial future.
Fire Up Their Entrepreneurial Spirit
Having a job as a teenager is a great way to earn some much-needed spending cash. However, it's not a great way to earn investment capital. To start building up investment capital and help your teen build a strong financial foundation, find a way to get their entrepreneurial spirit fired up. If your teen is passionate about something, help them find ways to make money from that passion. Starting a small business is an excellent way to help your teen earn investment capital. It's also an excellent way to help your teen create a business that could follow them through into adulthood.
Open a Retirement Account for Your Teen
Once your teen starts making money from their business, encourage them to open a retirement account, preferably one that will provide a substantial return on their investment – such as a Roth IRA. The money that your teen invests in their retirement account now will work to secure them a comfortable life later on. Not only that, but you're providing them with the tools they'll need to plan for their retirement early in life.
Have Them Follow the Stock Market
It's not enough to get your teen to invest in a retirement account. To be truly successful, they're going to need a more diversified portfolio. That's where the stock market comes into play. Have your teen start following the stock market; not just for a few weeks though. They'll need to follow it for several months so that they can get a feel for the market fluctuations. As they're watching the market, have them pick one or two stocks that really pique their interest. Have them watch those stocks closely, including how the values fluctuate from day to day and from month to month.
Sit Them Down with an Investment Counselor
Once your teen has spent some time watching the market, sit them down with an investment counselor. Have them bring the notes they've been taking as they've been watching the stocks over the past few months. This will give your teen the opportunity to discuss those stocks with their investment counselor. Together with the investment counselor, encourage your teen to invest in one of those stocks. As they progress, they can continue to invest in other stocks until they have a profitable stock portfolio to take with them when they finally leave home.
For more information and ideas to teach your teen about investment planning, work with professional investment services in your area.
Share6 December 2017
