New Finding: Teens stressed about money

Teens are stressed about money, according to a recent H&R Block survey.

Why?

1. The cost of college
"...nearly all (97 percent) of survey respondents still plan on attending college, viewing it as a necessary step for future employment. In fact, 86 percent of teens believe it is more important than ever to choose a major that leads to a well-paying job. But, a vast majority of teens – 78 percent – worry about borrowing too much in student loans, fearing crippling debt after leaving college."

Since 1980, the cost of college has skyrocketed nearly 500% when adjusted for inflation. This trend cannot continue; something needs to change.

For now, most students can find an affordable path to earn a college degree. There are tools available to help students make an informed student debt choice. 

• CFPB's Paying for College
• FAFSA
• Federal Student Aid

2. Teenage households continue to face financial distress

"Median household income, as reported by the U.S. Census Bureau, fell for the fifth straight year in 2012. The current level of $51,017 is far below the $55,500 when the recession began and is the lowest mark, adjusted for inflation, since 1995 – before all but today’s oldest teenagers were even born.

Perhaps not surprisingly, 58 percent of teens now believe they will be less financially sound than their parents."

One of the most important lessons we can teach our students is the value of saving and investing at an early age. Both habits can cushion the blow of eroding wages everyday Americans are facing if they begin to save and invest when they're young.

We can help students by teaching them to take advantage of the power of compound interest, and introduce them to resources that nudge them into the habit of saving when they're younger and it's easier.

• America Saves Pledge and Texting Nudges 
• Council for Economic Education Compound Interest Calculator

3. Taxes are too complicated
"Taxes remain a duty for adulthood, as teens are either disengaged or uninformed – only three of every 100 have filled out an income tax form, while 26 percent feel the forms are too complex."

Most students will qualify for tax refunds. Yet with only 3% of teenagers filing, most will never see any of it. There are plenty of resources available to help students understand how to file and collect their refunds.

• IRS Understanding Taxes
• My Free Taxes

4. Teenagers are turning to their parents
"75 percent of teens still say their parents are their most important source of financial information. In fact, 62 percent of teens view their parents as good money management role models."

Unfortunately, research has found that on the aggregate, American parents are not financially literate. Our education system must train our teachers to provide students with a financial education. But in the mean time, there is an ideal resource to help parents teach their own children about money.

• Money As You Grow

5. Teenagers are making adult financial choices now
“Our survey shows 57 percent of teens use their own money on purchases, yet they often lack fundamental money management skills. The good news is, the research clearly illustrates a desire to learn, to grow and to become financially savvy..."

99% of U.S. adults support personal finance teaching in high schools. Yet, only 4 states require a semester long class be devoted entirely to teaching personal finance to graduate. This is a far cry from the CFPB’s recommendations of how personal finance should be taught in our schools. 

Most high school students are making financial choices now. Many shop; have jobs; pay bills; pay taxes, are eligible for refunds if they file; have accounts at financial institutions; make car payments; pay car insurance; and most importantly -- are preparing to make a student debt choice. So as our students shuffle from one class to the next learning lessons for their future, they’re missing out on the lessons that will help them manage the stresses they're facing right now.

My Mom was an Investor

Every time I feel down, I always think of my accomplishments. It may not be the best that I had hoped for but it's a great milestone in pursuit of success in life - far from what I was before but not yet what I'm going to be.


I was on the top 10 of the class during my primary and secondary years, graduated with flying colors in college, ran for 21km marathon and is now working on a multinational company.

These never happened in luck or coincidence. I worked hard every day and never slept for countless nights. I have a strong belief in myself. More in my mother.

I've known my mother as a strict disciplinarian. She would always protect me from any potential bad elements and steered me on the straight path to goodness, centered on education. Since I was small, she was always strict and protective. She had her eight rules:

The Eight Rules of My Mom

1. Sit on the first row in front of the teacher (sometimes teacher's saliva got into my cheek)

2. Choose your seatmate. He/She must be intelligent like you. (I was programmed to think that I am intelligent)

3. Don't talk. Listen to your teacher always. (I broke this rule when at the end of school year my teacher told my mother that I was very talkative)

4. Make sure you ace that exam always! Participate during discussions as much as possible. (Even if I didn't know the answer, I should raise up my hand. That's what she wanted.)

5. Don't go (during playtime, going home, etc) with low-performer classmates (especially boys), they are contagious.

6. If you earn a medal at the end of school year, tons of gifts await. (Robots, bicycle, watch, etc.)

7. She will only be happy if I have that medal. (Else, failure to do so will be a house topic for weeks and little things will be deferred i.e. watching TV, going outside, banana que, etc.)

8. Your sisters, brother and others made it to the top, so can you! (My brother and sisters were always on the top 1 or 2 of the class. "Yes they are intelligent but they're not that good-looking!", I protested to her once. I was referring to other people, not my siblings)

She was an autocratic person, I must say. The way she had that belt on me was too tight that I couldn't breathe. Too bad and too good. Too bad because I never had the chance to experience the other side of life when I was young. Too good, for some reasons.

When I was in college, I still couldn't figure out why my mother was so hard on me. While I understand it was for my own sake, there was no profound meaning at all, though I never dared to ask. So I accepted her just what she wanted me to be. It never really sinked in.

However, things were different. I was in a different arena. It was never like the old, boring days in my early school years. I had lots of freedom, at last!

Never would she know that I was sitting in the middle row, frolicking in the room, having friends with "not-so-good" guys, sleeping during classes and not aiming for that shiny object hanging on my neck, when I was in college.

I applied as a working student in  the school. I foreseen the challenge like juggling two sharp knives. So I warned her, "Don't ever expect that I'll be having that medal when I graduate." My mother never said a word. She agreed in silence.

"Slacky" 1st Year

Things were so exciting and I had a good time with friends. I went around the city, flirt with ladies and played online games. I didn't have a chance to start as a working student so I was a regular student then.

I enjoyed and it was never the same before! I tried to have good grades but not enough. I ended up at satisfactory level - not excellent but not failing. What a good life! My mom still had her support and pressure on me.

"Kinda serious"2nd Year

I started studying and working at the same time. I had lesser to no time for wandering around or with some other stuffs. It was just between study and work.

While in the adjustment period, there was no other stuff to focus on but my studies. For the second time, I aimed to improve my grades. But I still didn't make it to the Dean's list. My mom had little pressure on me, but she understood what it's like to be a working student. Both my sisters were working students too.

"Trying hard" 3rd Year

It seemed like I was an average Joe but I really was. I felt like I was a guinea pig in a never-ending treadmill. My mother was neither dismayed nor satisfied with my grades but her support was still firm.

I always left home early and came home late. Very late. Sometimes 11PM because of my work in school. I almost made it to the dean's list but I got a clinging grade in my major subject - 3.0 in Advanced Statistics! Pull it down a little and I would've failed. What a shame!

My performance in studies and work was within the acceptable norms. "If I'd do my best working, what would I earn? Recognition, perhaps. Uncertain, because there was no such award given that time. What if I excel in my studies? Then I'd become a dean's lister. Honor student. School fee discount? No, working students were not eligible for that.

Honor student, eureka!" And that was the tipping point. I didn't know why but deep inside there was a voice telling me, "You are studying, yes.

Now, is it fulfilling when you graduate with nothing? Don't you miss being at the top?" I pondered these thoughts and agreed. "I will do my best to have higher grades! What about looting that school fee discount? I had a plan!"

"Liberation" 4th Year

June 12, 2008 - Independence Day of the Philippines. I was officially an academic scholar and will never work again in the office.

I could also focus on my studies to have that laurel and with the potential to loot money (school fee discount) if my grades were high enough. Clearly, my motivation was recognition and money. When I was a kid, that was robots, bicycle and watch.

Engineering is not really for the intelligent but diligent people, I must say. Memorization is just the tip of the iceberg. To put it simply, one has to memorize the formula and practice solving every time. Remember, every time.

Letters x and y were my friends and I never get bored with them. With no books (I didn't buy books if it were not required), I only took notes and stick with it until I master the solution process.

Mathematical problem is like cooking. There is a proper sequence of steps that should never be interchanged else your dish will end up so bad! That is why one professor of mine always includes the word "Step 1, Step 2, Step 3" and so on in the solution process.

I understood it was our guide. It's like "Do this first then after that, do this. Finally, do this!" It helped me a lot.

At the end of the semester, I was a dean's lister. And I had also availed a discount on my school fees. I looted, of course, but gave some to my mother. She was very happy.

"Mastery" 5th Year

Rinse and repeat. The taste of reward was addictive and I committed myself to do it again. I did it. I was very happy.

Graduation

When graduation was approaching, I assessed myself if I'd be eligible to graduate with honors. With so much excitement, I took my prospectus with the corresponding grades beside the syllabus.

I computed my GPA from first year to fifth year. In first year, I got an average of 2.3. In third year, I got a grade of 3.0. Hopeless. Finally, when I got the sum of each grade multiplied with the number of units, I divided it with the total number of units from 1st year to 5th year. Guess what. I got an average of 1.53. Cum Laude.

My Realizations

1. My mom was an investor.

I was her business. She took advantage of Other People's Money (OPM), which is the school, and combined it with my TIME (as working student) to grow her business.

After 5 years, her business grew and was able to support on its own. Simple yet I regret some people are not taking advantage of this school hack. They complain how hard to send their child to college when what they only need is perseverance.

2. "Worst to Best" is better than "Best to Worst" transition.

My mom's discipline started the moment I knew how to understand words. I felt like I was always in a cage - controlled and imprisoned, that I couldn't do all that I wanted.

But when I was old enough and she set me free, the transition was like a walk in the park. Now think about a child who feels satiated with material things until he grows up. Suddenly, his parents changed the rules and tighten the belt. Most like he will rage and rebel. Not good.

3. Honor your parents. Someday it's going to make sense.

Had I not listened to my mother, I would never be what I am now. Although not completely perfect of who I want to become, she never disappointed me. She always knows best.

4. Strictness doesn't kill.

Undeniably, there were couple of times that I pity myself for not being free to do what I like and inhibited of things that others weren't. I felt my mother was unfair and inconsiderate.

However, when I recall myself before, there was never a time that she deprived me of something "good" - what I mean with good are things that I truly need and there's no other way but to have that or I couldn't do other things instead. She provided me not everything but what I only need.

5. What I didn't like to do (as a child) were the causes of my problems.

My mom always reminded me of brushing my teeth every morning and night regardless of where I was or what I was doing. Either I was having a sleepover to my cousin, or watched a late TV show, or went to my neighbor friend, or I was so damned sleepy, I should never forget to brush my teeth. I didn't follow her.

There were times that I fell asleep or slept at my cousin's house and forgot to brush my teeth. Now I suffer the consequences. I can still smile though :)

Budget Percentages

Where Did The Money Go?

There are many advice on how we should spend a percentage of our income and budget accordingly. I've been trying to fit my budget on these guides, but I've never been able to fit the profile. I've realized that budget percentages only serve as a guide on what's normal for us to spend. Each of us have different lifestyle, conditions, needs and wants. It's almost impossible to fit in perfectly unless we live according to the ideal of the budget.

For example, most parents who live in the USA send their children to public school. So, it's natural that most parents don't have a budget for their children's education. But for parents who send their kids to private schools, or who live in countries where schools aren't free, will have their children's education on their budget.

Dave Ramsey Budget Percentages

Charitable Gifts 10-15%
Savings 5-10%
Housing 25-35%
Utilities 5-10%
Transportation 10-15%
Food 5-15%
Clothing 2-7%
Medical/Health 5-10%
Personal 5-10%
Recreation 5-10%
Debt 5-10%

What we can do is determine which budget percentages we can use as a guide to determine if we are overspending. Dave Ramsey's Budget Percentages is a good start. We can use parts of it as a guide. For example, spending 25%-35% of our income on housing. If we make $4,000/mth, then we can spend $1,400 on housing. If we'd like to save, we can budget housing and utilities together so that housing and utilities is budgeted $1,400/mth. That is an ideal situation. People that make $2,000/mth will have to find a place that rents $700/mth.

The rest, we have to list what we spend on monthly and see how much it takes up from our income. Next, we will cover a topic on determining which cars are affordable according to our income...

The Gadget Purchase Rule

What's Next For YOU To Buy!

I'm an avid gadget-news follower, but I don't really buy them. I've mastered the skill of waiting. The wonderful thing about gadgets is if you know what's coming next, and the one after, you'll be able to delay gratification. I've wanted an Apple computer for a long time. Maybe since 5 years ago. Every year I've successfully waited for the next Intel chip, and the one after it. However, since all those years, I've not saved up any money for my purchase. Which is a terrible waste of time and money I could have saved.

I've created "The Gadget Purchase Rule" for people who, like me, love gadgets and would love to purchase them. The rule determines which gadget is affordable within your means.

It's a very simple rule;

price of gadget/20% = amount needed to save

After succeeding to save the amount, you will be able to take 20% of amount saved as a reward to purchase the gadget. Also an additional rule, if the gadget is updated yearly and you plan to update yearly, you'd have to save that amount yearly.

Example, An unlocked contract free iPhone, $649/20% = Save $3,245. You'll have a savings of around $2,596 and an iPhone as your reward. If you'd like to upgrade yearly to a new iPhone, you need to save $3,245 every year. If you can't do that, then it is not a phone within your means.

Another example, I'd like to purchase a Mac Mini. $799/20% = Save $3,995. I plan on using it for a good 3-5 years before upgrading. I'd need to save $3,995 in at least 3-5 years and finally deserve to have it.

It might sound too extreme at first, but really that is the challenge to not only delay gratification but also build up savings. Because we should treat our savings like trees, plant when there's too few, but when in abundance, it does not mean we can cut and use it all.

Has It Been That Long?

The People of the Cave

I've not written on this blog for a while, and I realized my last post was in November. It's March. I've finally awaken and realize it's been 5 months since I posted. Passing the new year, I didn't make any resolutions. I did, however, use the personal finance apps for my budgeting needs. Many things happened during the time that I gave the apps a run for their money. I'll give a short say on each of them with a very important conclusion.

Toshl Finance was coming close to a winner during my experience. It's the most easiest to use and understand out of the whole bunch, but functionality have changed during the start of my test. It's almost unusable now. So, you'd have to decide if it would fit you to continuously use it. For $19.99/year, it's a small amount if it can motivate you to get your finances together.

YNAB made the most sense. You set your budget (spending goals), you track your expense (spending), and you can see whether you made your goals accordingly. It's for those who loves looking at numbers. It's $60 for the license to use the software.

MoneyWise and Pocket Budget are excellent free-to-use-apps, mainly as an expense tracker.

There's one problem, all these software doesn't really fit me. I really hate tracking my expenses, it gets tedious after a while. I've built the habit of spending without really planning nor tracking for such a long time, that all these software would fail to be a part of my financial activities. The one closest to succeeding was YNAB since I love numbers. So, I chose to use a spreadsheet software as part of my financial activities. I really dug deep to create a system that works for ME. A combination of a cash based spending system and NOT registering any of it.

My advice?

Don't read any personal finance apps review.

Don't spend money on software and justifying that purchase by telling yourself that you will use it and magic will happen to your finances.

The best thing you can do is to get down to business and quickly figure out a system that works for YOU.

Roadrunning

I wouldn't be proud of this but it's worth sharing. Today I put myself to a test: run for 5km right after work from residential house to the nearest mall in town. Fortunately, my alter ego did not react and voluntarily gave in. I was happy. And it was a success to control the other side of me.


I'm really sad about lazy and fat people because that only shows their lack of discipline and commitment when it comes to fitness and lifestyle.

One friend of mine is fond of food imagination that makes him hungry every time! Every single time. The aftermath is craving and ultimately, gulping to what he desires. Good thing if he is eating healthy, but sad to say, tons of oil and fatty foods are the apple of his eyes. 

Road run has been my cup of tea since I started working. It has been very effective for me for a couple of years. Although I'm not running regularly, in fact I have badminton twice a week to compensate the missed miles.

My last road run was on January this year and that was tougher than now. Not bad since I'm back with the habit. No excuses. No what if's. No maybes.

Scientifically, running is good for our health. No questions about it. However, my experience has shown me a lot of benefits, far better than what science could explain. This is something personal but I believe this is in general.

1. It makes me a warrior.

When I was running a half marathon (21km), I never thought I could make it to the finish line. The burden was too heavy for me to carry.

There is no way that I would forget how I was about to defecate in the middle of the marathon when I reached the turning point (10.5km).

Not only that, my tummy was hurting so badly due to excess water intake (greediness has the worst punishment ever). Also, I have blisters on my right toe and nipples (slight) due to the friction with my garments.

With strong conviction (backed up with fear of failure), I reached the finish line - no walking. That experience made me brave to face future challenges. No matter how hard it is, think about the benefit it brings.

2. It controls my emotions.

Whenever I am down (or not), running mitigates my troublesome emotions and turns it into a happy-go-lucky state. The greatest part of this is the fulfillment in controlling the other side of you. Bliss.

Oftentimes my emotions are so controlling that when he wants something, my mind is easily tempted and justifies the situation. Through running, my mind is trained to be the chieftain, not the soldier. 

3. Running takes me to a new dimension.

Truly, it is in running that ideas are incubated. If only possible, I would bring a paper and a pen with me while running to write the idea proceedings.

It is undeniable though that you get distracted easily with the pain on your shoulders, a blister on your foot or thirst of water. Ignoring these extrinsic factors solves the issue and will take you to a whole new different dimension - the muse for creativity. 

4. Optimistic thinking of longevity.

When you exercise, it makes you happy to think about the results of what you are doing. And that is exactly investing for health and longevity. Fitness takes time and there's no easy way around to keep you alive and kicking for the couple of decades.

We already know that exercise translates to longer life and that means more time with your partner, family and friends. We only live once so better nurture ourselves for a happy tomorrow.

To add, being conscious about health doesn't mean no oil and fat intake at all. Consciousness is being aware of what you are eating and doing. Thus, it is normally right to dive into guilty pleasures but the key there is control: quantity, variety and frequency.

I strongly support the idea of "cheat day" for people on a diet. It gives someone the seldom taste of freedom after days of hard work.

Credits to www.runwiththeanimals.com

The Art of Naivety

Too much worry of something kills, seriously. Poverty and death may be the most common examples but it doesn't end there. Small things that are really not bothering, can bother us in a distractive way. It is a matter of perspective.

Whether a hot gadget we desperately want, a never-ending project, unfaithful partner or a backbiter office mate, it can greatly affect us deep inside. Worst part is when we envelop ourselves with an issue for a long time. 

Sometimes it pays to be naive - ignore things and let it happen when it has to. Being passive is not really a good idea however using this tactic is the only workaround to avoid the trap. Diversion is a good strategy.

The way I see it though, at present, is that our youth tend to divert their attention by introducing a stimulus - alcohol, drugs, to name a few. To some it is effective. But remember, one wrong doesn't make the other wrong thing right.

Being naive is inherent in me. Sometimes it is working against me but in crucial situations, I appreciate my skill. It helped me a lot most of the time. Because of being naive, no hurting words were said, no self-depression (I hope not), no aggressive attacks made and no bickering with friends. Unaffected. Passive. Dormant. Here's what I think about when I get caught emotionally.

1. We will all die, enjoy while still alive.

Chameleons are everywhere and we don't know who they are. You lied and you've been lied; They're up there and you're still on the ground, but remember, nothing will be brought when you die. No one is an exemption. Material things decompose, decay and rut but our souls. Enjoy and do good things to everyone.

2. Words doesn't make you a lesser person.

Someone may have said something that hurt you. So what. True or not, it does not define your life there and then. You can always change anytime and achieve great happiness than everyone else. Bad words can be disposed easily from one ear to another. Don't keep it. Karma will always be there and yes it exists.

3. Luxury is just an illusion, it doesn't last long.

The luxury fulfillment is ephemeral. The experience may truly be one of a kind but the essential purpose is no nerve-wrecking.

4. Happiness lies within you.

Being happy is a how, not a what. It is how you see yourself, others and the world that defines how happy you are. Happiness is not defined by the things you achieve or net worth. The latter is just a result of happiness, not the cause.

Credits to www.lynnegolodner.com 

Sell Structured Settlement Payments Today!

A financial or insurance arrangement in which the individual who claims to resolve a wrongful act leading to legal liability by receiving periodic payments on an agreed schedule rather than receiving the whole money at once is known as structured settlement. This method was first utilized in Canada and later on became a part of common law in USA, Australia and Canada. This arrangement was first used for children affected by Thalidomide. It became very popular in 1970 in the USA as an alternative to lump sum settlements. Other than that a structured settlement also provides with income tax as well as spendthrift requirements benefits. Structured settlement provides ongoing income and also reduces the risk of blowing the huge sum of money by making poor choices. It is also considered the best way to improve financial security if used pay-outs wisely.

Structured Settlement Payment estimates

Sell my Structured Settlement may be life contingent sometimes but may not be the same for everybody. In the ultimate long run there is a huge possibility of the situation where the individual needs to sell his/her structured settlement. The reason behind the sell can be diverse and can range from buying a new house to starting a new business. No matter what the case is one has to definitely pass through a court approved process and can be able to cash out a huge payment all together. Depending upon the choices an individual make, there are options on which he/his can sell of his /her entire settlement or sell off in pieces. Once an individual has decided to sell his/her Structured Settlement, the question comes is Who Can I Sell my Structured Settlement Apparently about one third of the states of America restricts people from selling structured settlements. So one should always consider on which place he/she belongs to and whether or not structured settlement is allowed in the region. Sell my Structured Settlement is not at all an easy job to do. One needs to look after the legal issues. Other than that he/she needs to consider and accept a cash offer, impress a good company to attract itself toward the agreement. Once accepted the individual needs undergo court hearings and answer legal questions to the judge who then approves the transaction to be continued.

Reasons to Sell My Structured Settlement Payment

There are several good reason o to sell structured settlement, which is mostly never rejected n the court. Repaying unexpected medical requirements if needed can be paid off. At this emergency situation there is no other option but to sell the structured settlement. People need a lump of cash when they decide on to build or buy their own house, at this situation the only way one can get out of the situation is to pay via structured settlement. Paying for college or for higher education can be acquired by average people by paying off loan. The better option there leads to selling of structured settlement. Beginning a new business, the thing it requires is a terrific concept and a lump of money and the only way a middle class member can get that is via selling structured settlement.