I recently returned from a road trip to Omaha where I joined other family members and friends as we celebrated my niece’s earning a Master of Science Degree in Speech Disorders from the University of Nebraska – Lincoln and her new position as a speech therapist. Along with the joy of the occasion and a great deal of pride in her achievements, I noted a sense of relief by her parents that she will now be financially independent. Comments ranged from “we’ve been waiting for this day for 6 years” to “I think I’ll ask for the credit card back soon” and “now she can pay her own cell phone bill.”
No doubt many of you have had similar thoughts and experiences as the young adults in your family reached significant milestones and were finally on their own financially. But the journey to financial independence begins at childhood and is best encouraged by stressing transitional skills as you help kids learn to handle their own financial affairs – such as encouraging savings by use of a piggy bank, teaching them to budget by using their allowance to purchase items they want, saving some of their earnings from a part-time job for major items such as college or to purchase a used car, helping them apply for a scholarship, teaching them how to balance a checking account or by cosigning on a car loan to help them establish credit.
As her aunt, I’ve encouraged savings by contributing to a youth certificate and later establishing a direct savings account for her. I also tried to transition her into the adult world by “loaning” her the use of a car when she needed one with the stipulation that she start paying me back (minus gifts for each of her graduations) when she was gainfully employed. Hopefully, I’ll soon start to reap some of the payback!
Brass magazine, the publication designed for and distributed to the young adult members of the Credit Union, features an article on the wise use of credit cards. Check out “Credit Cards Backstage Rock Out, Not Rock Bottom” at brass magazine.com. Among other things, you’ll learn that 44% of consumers do not know the APR on their credit cards (not really a surprise to me as a consumer loan officer) and be cautioned to be aware of default clauses.
I’d like to hear your stories about how you’ve helped your young adults achieve financial success. And speaking of Money, Money, Money I’d highly recommend the movie version of Momma Mia! It’s hugely entertaining, especially for female audiences, but I’ve heard a few men say they liked it too. This fun musical features Abba hits from the ‘70s that may have you dancing in the aisles, lead actors Meryl Streep & Pierce Brosnan in atypical roles, beautiful scenery that will have you dreaming of a Greek Isle vacation, as well as the requisite romantic love story. Check it out and let me know what you think.
Hint: don’t leave the theatre until all the credits have run.
Tags: financial security, Momma Mia!, Young adults
