It’s a rite of passage for every teen and young adult… the start of making their own buying decisions and purchases. This rite often is met with tricks and traps as it seems the real world doesn’t want to make it easy for our younger generation. What’s it called? Learning the hard way? Yep, I’ve done that!

So I’ve pondered ways to help my teens navigate through the manipulative real world of “Buy Now, Pay Later”, “We’ll Beat Any Competitors Price” and “Zero Interest Until 2014”. We all have numerous experiences can we share with our teens on the art of negotiation and importance of reading the fine print, (which goes along with the mind bending exercise in trying to understand it.)

That fine art of negotiation works best when confidence fuels it, (and confidence is fueled by knowledge). Negotiating will be important not only in purchases but also in the career world as they seek to move up the ladder.

Below are 10 valuable tips compiled from Entrepreneur, Psychology Today and Consumer Reports.

1. Be Informed. Want to buy a new car, TV or rent an apartment? Do your homework first and research on the internet. The virtual world is bursting with information that’ll allow you to compare prices and important product details. Often there are online calculators that will factor in the price and most fees for you. These calculators are not entirely accurate but will give you a foundation to start from.

2. Create A Budget. The amount you spend can be determined by either what you are “able” to afford or what you “should” spend based on market prices. Both should be considered when establishing a budget. But be prepared, in most cases there are additional hidden fees known as taxes, interest, processing charges, insurance, maintenance packages, etc.) To account for the hidden fees, seek a product that is 85-90% of your total budget to allow for the average fees of 10-15%, (however it varies for every industry).

3. Shop Around. Find local (or online) businesses that are willing to beat any competitors advertised price. For smaller purchases, you can simply scan the bar code with your smart phone to compare prices. For larger purchases, it’s time to step away from your computer and iPod because the best places to find businesses offering price-beating programs are in your local newspaper or on the radio.

4. Make A List. After doing your research, write down what you need and what features are important to you. Your list will keep you focused so the “shiny objects” don’t lure you into buying something you don’t need or can’t afford.

5. Watch, Read & Listen. Find out what others are saying about the product or business. Testimonials can be found throughout the internet on Yelp.com, all search engines (Google, Bing & Yahoo) and in social media you can search via SocialMention.com. Another great source is Consumer Reports, a magazine and an app on your smart phone that is considered the supreme source of product research and reviews.

6. Put Your Game Face On. Your research and list will give you the confidence you need to get in the game. There are many types of sales people out there. The helpful, informative type and the commission-minded type. Keep your enthusiasm to yourself, evaluate your sales person to see if they have your true interests in mind, (and don’t be afraid to request a different person if they are not helpful). Stick to your research, list and budget but consider any new information you may gleam from an informative type sales person.

7. You’re In Charge. Always keep in mind that you are the customer. Never allow manipulative tactics to pressure you into purchasing on the spot. In the midst of negotiating a price or payment plan, or evaluating which product is best for you, take notes and prepare do more research.

8. Don’t Buy Now. Try not to rush into anything. Take the time to evaluate your experience, any new information and compare it with your research and list. This will prove valuable.

9. Cash vs. Credit. If you have been diligent in saving your money, you are miles ahead of others. The money you save in paying for your purchases vs. using credit can equate to a 15-40% savings. Of course, there are times we must use credit. If the company offers a “no interest” time period, this is timeframe in which you must to pay as much as you’re able to avoid high interest which will save you a lot of money.

10. Enjoy. Life is sweet! You’ve made a smart purchase on your own. Whether for need or pure entertainment, you can be assured you’ve paid the best price for a great product without over extending yourself.

I strongly encourage that you share these 10 valuable tips and your own experiences with teens and young adults as an important step towards a solid financial future. As stated in Tip #9, encourage them to save some of the money. They can start by opening a U22 account. It’s perfectly designed for 12-22 year olds.

Today we discuss purchasing, next month we’ll discuss negotiating in the career world.

So, with my checking account, comes actual checks!

If you have never written a check before, and a lot of kids haven’t, it is really easy.

This is how I typically do it:

1. The simplest thing is to write the date on the date line first.
2. Then you have to fill in the line “To pay to the order of.” Sometimes that is a person, sometimes it is a business. I had to pay my Macy’s bill with a check, ouchie!!
3. Then you write in the dollar amount like this, $25.14. On the line underneath you have to write out the amount in “long hand.” That means you write “Twenty Five Dollars and 14/100.” I guess this is so the people with really bad writing have two shots at the bank being able to read the real amount! LOL.
4. The last thing is very important!! YOU HAVE TO SIGN YOUR CHECK!! Sounds like no biggie, but with all of the other writing you have already done at that point, it can be easy to skip over. Hahahaha. Does this all make sense??

I actually use checks a lot! Sometimes I even write my mom checks when I owe her money. I also write checks off my GTE Federal Credit Union U22 account when I need to pay my band. Sometimes when we play a gig they only write us one check, and they usually make the check out to me. So I deposit it and then pay the band their part of it. I just love writing checks. My mom says it is not nearly as thrilling when you are older. LOL. But for now, it makes me feel responsible. And maybe when I’m old it will still be fun because I had such a good start at it!!!

When it comes to talk about personal finances, many of my friends have surprised me by asking, “Why do you bank with a Federal Credit Union?” First, it is clear their underlying question is they simply do not know the differences between a credit union and a bank, and there are many differences. So I’ll rewind past all my prior conversations and start at the beginning because if you understand the key elements of how credit unions and banks are structured, your choice is fairly clear as to which will serve your personal needs best.

Most banks are called “commercial banks” and as the name implies, their purpose is to serve commerce. Therefore their primary customers are businesses leaving private individuals as somewhat of an afterthought, (in fact banks account for 81% of industry revenue nationally). Most banks are led by boards of directors and must answer to shareholders with the expectation to make large profits. A bank’s depositors create those profits with every transaction they make. Even with a profit structure, for everyone who followed the news over the past year, it was the banking industry that was brought into the spotlight about their operations and need for a taxpayer bailout. (Did you see any credit unions under fire? No!)

So if banks have stockholders, what do credit unions have? Members. (So who do you think will serve your individual needs best?)

Credit unions were created specifically to serve individuals offering various accounts from savings to checking, in addition to credit cards, mortgages and, on occasion, home business accounts. Credit unions are federally regulated ‘non-profit’ organizations owned by their depositors, (that would be, should be you!). That’s why deposits are called shares versus deposits. Due to their structure and purpose, credit unions have remained well capitalized and remained the most viable option for home loans throughout the economic downturn. As consumers become more knowledgeable on the differences between banks and credit unions there has been an influx of families making the switch to who will serve their personal needs best, (and I think you know who that is).

So get moving to your locally depositor-owned and operated Federal Credit Union today!

Also learn more about youth accounts offered by Credit Unions. It’s a safe environment for teenagers to learn about money. Check out the GTE Federal Credit Union youth checking account for 12 to 22 year olds at www.U224U.com, because learning about money is important, no matter what your age.

Hey everyone! I was reading this article on CNNMoney.com that I found very startling. While it seems that the nation as a whole is dealing with a 10.2% jobless rate, teens are suffering a record unemployment rate of 27.6%. What’s happening is that people between the ages of 16 to 19 are having a hard time finding jobs because of the surplus of older, more experienced workers who are also having trouble finding jobs. Our parents are filling positions like being a waiter in restaurants or a cashier in a super market – jobs usually filled by teenagers like you and me. What makes the unemployment rate for young adults even worse is that because it is more difficult to find jobs, many teens give up and don’t bother to look. It’s a very vicious circle that is taking a heavy toll on the nation’s economy. Lawmakers are becoming very concerned about this growing problem and are attempting to make changes, but until then, we teens and young adults have to continue to seek out jobs and get experience, even if it’s unpaid. You’d be hard-pressed to find a business turning down free work or an internship. Now is actually a great time to find your dream job or your dream company and ask to intern, just for the experience and to put on your resume for future! There are paying jobs to be had out there, we just have to try harder and get inventive, like blogging for example. If you’re a good writer, a lot of companies are looking for blog-savvy teenagers who are reliable and excited to work. Put your name out there on Twitter or even on your Facebook page advertising your awesome blogging abilities for example. And who knows, maybe when we get a little older, we will be able to affect large enough change preventing economic turmoil like what we’re experiencing today!

Look into a GTE Federal Credit Union U22 checking account for teenagers 12 to 22 in Tampa Bay. Because learning and managing money right is important no matter what your age.

Hello All!

Last year’s presidential election drew the attention of my teenagers for the first time, giving them a full lesson in the political process. Maybe it was their age, perhaps the state of the economy. Nevertheless, (and regardless of political party affiliations), I saw this as an important step towards being a responsible adult.

Since the election, we’ve seen government push forth for a program that would educate our youth on finances. As Business Week put it earlier this month, “When it comes to financial matters, Americans are functionally illiterate.”

So while the intent to educate has been alive for over a decade, those behind the financial literacy program say that during a strong economy many assumed we knew what to do with our money (other than spending it). Let’s reflect back on my previous blogs, ‘Teens Top 10 Money Myths’, obviously that assumption was not accurate.

As the Business Week article reported, “President’s Advisory Council on Financial Literacy issued a 57-page report in January just before President Barack Obama took office. Among other recommendations, the council said states and the federal government should mandate financial education from kindergarten to grade 12, and require college students to take a financial literacy course before taking out student loans.”

It seems our government leaders are seeking to correct our economy from both ends – what caused it (in part, financial illiteracy), as well as the other factors we’ve read about in the news. So I dove into learning more about the proposed Financial Literacy programs for our youth. One of several bills in Congress addressing the issue would devote $250 million per year to financial education, with the money split between K-12 schools and colleges. I love the thought of this program as my kids try to dodge me in my continued quest to educate them on money matters. (However, I have seen the results of my efforts in their savings accounts!)

A major benefit I’ve come to realize as a parent who is trying to educate my kids, is that our kids may soon be educated on finances within the schools from kindergarten through college. So educating them on saving, spending and investing will be unavoidable!

So there’s still a long road ahead in putting a Financial Literacy program into effect. I think we can all agree that with a program like this, we all win.

Learn more about a GTE Federal Credit Union U22 checking account for 12 to 22 year olds. Because learning about money is important no matter what your age!

Gift Giving Challenges at the Holidays.

Buying for tweens, teens and young adults can be incredibly challenging. Seems like it’s almost impossible to figure out what’s in style, what are the latest trends. Sometimes I’m almost certain I got it right with my kids just to find out “thanks mom but that was soooo yesterday!”

However, one gift that is always in style is a gift card from one of their favorite stores. They seem to provide a sense of freedom, an opportunity to do their own shopping and buy exactly what they like. Now maybe for you, gift cards seem a little impersonal but it got me thinking about what they really like about gift cards. Freedom! Independence!

Freedom and independence can come in many packages and money never goes out of style. Now, I don’t want to sound like a pitch person, but opening the GTE U22 account with my own teens has proved to be an important step towards their financial independence. While I can contribute to their accounts as well as monitor their spending and balances, I mostly sit back and watch them manage their money all on their own. (I’ve been quite impressed!)

So I’ve decided to do what may seem a little predictable and gift wrap a few U.S. Savings Bonds and U22 deposits because I’ve seen firsthand the rewards of educating my kids on money matters.

(Hopefully they won’t read my blog or it’ll ruin the surprise!)

Visit www.U224U.com for more information on GTE Federal Credit Union’s U22 checking account for 12 to 22 year olds. Because learning about money is important no matter what your age!

The holidays are here!! The holidays are here!!

Every year I put up a tree with my sister. We use the ornaments that my mom doesn’t want for her tree … you know, like the SpongeBob ones, and the one with Taylor Lautner’s picture on it?? LOL. So, my tree is covered in things with feathers, polka dots, glitter. All the fun stuff. (Target was a GREAT source last year!!) I like to put the presents that I buy for my family under this tree, until Christmas morning when I take them to the family tree downstairs. (My mom likes white lights, I liked the colored ones!) I was making my list to go Christmas shopping, and when I looked at how long it was I got a little nervous. Do I have enough money to do all of this and still have some savings?? (I have LOTS of cousins!!) So, I went on my computer and called up my U22 account to check my balance. It was as easy as entering the web address. I was pleasantly surprised that my balance was in good shape. I also told myself to spend carefully, though, so my savings would still be there for many Christmases to come!!! Easier said than done, I know!!! But I REALLY am going to try

Visit www.u224u.com for more information the GTE Federal Credit Union’s U22 checking account. Because learning and saving is important, no matter what your age!

If you ask most kids where they’d like to go on a trip, most of them I guess would say something like Orlando. But if you ask me, I would have to say Nashville, Tennessee! I will be heading back there soon. Every time I go, I get energized about my music career. I meet with record labels (and yes, that IS very cool) song writers and other people in the music business that give me really good advice. I wish I could go more often. But these trips can be expensive! I have to fly on an airplane with my mom, and we rent a car and stay in a hotel. Now that I make some of my own money, I always set some aside for trips to Nashville. My U22 account helps make my trip easier. I don’t have to bring cash. (Which I am not very good at keeping track of!!) I just bring my MasterCard debit card. When I need (or want!) to buy something, all I have to do is swipe the card and enter my pin number. My mom gets an alert that I have made a purchase just in case I get a little crazy with my card! LOL!!

Wish me luck on my trip!! THANKS!!!

Build Credit. Fix Credit. Start Saving.

I’m sure this comes of no surprise to all of you, there are two personalities when it comes to money: Spenders and Savers. If there was a race, the savers would clearly be in the lead. Sometimes I wonder if all teenagers are born spenders (and grow into one category or the other).

We all know the “spenders”… covered in labels from international designers, driving the super sports car with a wallet bursting with showy credit cards. It’s a lifestyle that teens see in music videos and movies. But it’s not real, not smart and the consequences can be life changing. Today’s economy has presented a perfect opportunity for teens and young adults to learn from the mistakes of overspending. As I say it: “Spenders survive, Savers thrive”.

Build Credit. Fix Credit.
Establishing good credit is the message, but sometimes that requires a few fixes along the way. No one likes to suffer the consequences of doing something you didn’t know was wrong (or you did know but were too young to understand). Life catches up with all of us, especially when it comes to credit.

Sometimes our teens or college-aged kids sway from their fiscal responsibilities, so share with them the basic 5-step process for improving their credit. Perhaps if they have to do the work to fix their credit, they’ll get back on track and stay there!

• Step 1: Get your credit report. Everyone is entitled to one free credit report a year. Visit www.AnnualCreditReport.com and order one from Equifax, Experian, or TransUnion.

• Step 2: Categorize the negative items. Create two categories: items that are legitimate and those that are mistakes. It’s reported that 80% of credit histories have at least one error.

• Step 3: Deal with the mistakes. With identity theft on the rise, your teen may find accounts they never opened and charges they never made. Contact the credit reporting agencies; it may be a hassle but it’s worth the pain in rebuilding credit.

• Step 4: Try overturning legitimately bad items. Skip the credit repair companies; your teen can do this on their own. They made mistakes and got behind, so now it’s time to ask for forgiveness. In some cases a creditor may be willing to waive or remove a negative item for those who been an otherwise excellent customer.

• Step 5: Think beyond FICO. There are alternative credit scores out there where they can build credit by paying their rent on time and doing other responsible things that aren’t included in traditional credit scores. While the alternative credit scores won’t make a huge impact on the overall score, they can give a more accurate picture of a borrower.
Start Saving.

First ask your teens and college kids, “What are you saving for?” Independence? A computer? A car? Or even better, “A luxurious lifestyle?” Dreams are the first step in establishing goals. Once you have them, you need to draw a clear path on what it will take to accomplish them.

Sit with your kids and help them evaluate their own income whether they have a part time job or an allowance. From there, simply make note of all the large to small expenses they are responsible for. Do the math, set aside some fun spending money and portion for savings. If they train themselves early to save a fixed portion of each paycheck, your teen will find that spending is more controlled. This is a money saving habit I like to call “out of sight, out of mine (and mind)”.

I read about a 12 year old that bought a used lawn mower for $10. In one summer he saved $10,000 from his profits! He later turned his lawn mowing business into a successful landscaping business and now makes more than a six figure income.
A six figure income can translate to a lot of fun like vacations, cars, computers… what else did your teens have on their list? Here you can see how saving creates stability, less worry and more purchasing ability. What a great concept!

Visit www.U224U.com to learn more about GTE Federal Credit Union’s U22 checking account for 12 to 22 year olds. “Because learning about money is important, no matter what your age!”

One day, not too far off, Gloria, my eldest, will most likely be heading off to college. Beyond the liberating and exciting stuff college has to offer, like dorms, new friends, parties (don’t even want to think about it) and college sports, graduates are faced with the real world reality of how to pay for it all and student loans and credit cards are usually in the mix. Now, in today’s tough economy, for our kids in college, once they are 18, their credit history plays a huge part in their future success. You can have the grades, extracurricular activities, internships and a great personality, but if you’ve been irresponsible in the money arena, it can prevent you from starting a career. Graduates are faced with the real world reality and challenge of trying to find a job in a jobless market. Talking to your kids about managing money while away from home is more important than ever; a poor credit history is just one less obstacle they will have to hurdle. Check out these scary stats:

According to the National Association of Colleges and Employers, in 2009 only 19.7% of college graduates have found a job – that’s just 1 in 5 – compared to 51% in 2007.

The average college senior owes $21,000 in student loans upon graduation.

What are the statistics for young adults without a college education?

Unemployment is 20.6% for those with just a high school diploma according to the U.S. Bureau of Labor Statistics. (If that isn’t a statement for the value of a college education what is?)

These are harsh realities that need to be discussed. So, I set out on my continuous quest for knowledge about teens and money by visiting the local bookstore.

First, I encourage you to check out The Motley Fool Investment Guide for Teens. This clever book gives sound advice for teens to see how saving and investing can be fun. It’s filled with pages of work sheets, information in the credit card department and real world investment advice. Best of all, they talk the language of teens.

A few topics to expect from this book:
- How to gain financial independence
- Ask questions when it comes to managing your money
- Save cash for college, for investing and for fun
- Dodge the spending and savings pitfalls that have trapped many adults
- Get started with investing today
- Discover and learn how to identify up-and-coming businesses that could be future blue chips (what’s a blue chip? That too is explained in the book).

Fast forward to young adults and I found another great book, GradSpot.com’s Guide To Life After College.
This book helps twenty-somethings take a step into the real world with advice on finding a first apartment, first job, office politics, managing finances, paying taxes and so much more.

The book’s authors create a punchy comparison between college antics and fiscal responsibility pointing out there are those mistakes you can make now that won’t affect you when you’re older… and there are those that will. As they so aptly put it, “Between credit scores and compound interest, the American financial institution is designed to reward long-term saving and responsibility. So while a booze-soaked week in Acapulco hopefully won’t be held against you when you’re 65, your money and the people you owe it to are the proverbial elephants in the room. They are big, powerful, and have very good memories.”

I couldn’t have said it better myself. Buy the book or visit the website www.gradspot.com for great advice by college graduates for college graduates.

Here’s a real world tip… get started today! Visit www.U224U.com to learn more about GTE Federal Credit Union’s U22 checking account for 12 to 22 year olds. “Because learning about money is important, no matter what your age!”