As you might know, empowering women to take control of their finances is a central theme across my life’s work.  It’s critical – because women are so busy caring for everyone else, they often neglect themselves.

And I want to dive into that topic again, and often – but not today.  Today, I simply want to take a moment to give mothers a well-deserved and proverbial pat on the back.  As a mother of three, and now grandmother of 3, I know you’ve earned it.  (If you’re not a mother, read on.  Chances are you’ve got one, will become one, or know one!)

My roles as both a mother – and a grandmother – are rewarding ones.  Motherhood especially is hard work.  And guilt seems to go hand-in-hand with the territory – it’s something that binds all of us mothers together.  Working mothers feel they’re missing out on time with their children; full-time mothers demand perfection from themselves.  We all worry about achieving balance in love, career and family – but when you’re in balance, you’re neither moving ahead or forward.

In my view – balance is over-rated and almost impossible to achieve. Plus – it’s one more thing to feel guilty about!

Certainly, all mothers feel torn and stretched across our many, many roles.  And, we worry whether we’re doing it all right.   So what do I want you to give yourself for Mother’s Day?

A break. 

That’s right – give yourself a “pass” on the guilt for today.  Remember – you are the heart and soul of your family.

You’re the one who forgives your kids for staying out past curfew; for forgetting to inform you they need 2-dozen cupcakes for the class party tomorrow; for letting the dog swim in the pool.  You forgive your husband for forgetting your anniversary; for criticizing your casserole; for neglecting to pick up his socks.  It’s what wives and/or mothers do – we teach, we model, and above all, we forgive.  Because the people in our houses have a way of making mistakes.  Daily!

So on Mother’s Day, why not give yourself that same measure of grace?  With so many balls in the air, some are going to drop to the ground.  It’s inevitable – and it’s OK.  Don’t analyze all that you’ve done wrong.  Instead, focus on what you’ve done right.  If you don’t like a choice you made, make efforts toward a new one – and don’t look back.

Look ahead.  Move forward.  Keep going, and keep forgiving yourself with the same bandwidth you give to everyone else.

Happy Mother’s Day – now, and every day!

(Don’t worry.  We’ll talk finances again soon!)

Warmly,

Sharon

April.  For you, does it mean that you spent the prior weeks lamenting the looming tax deadline?  You might be able to get away with putting your head in the sand the rest of the year, but not in April.  Of course, I love April.  It means everyone’s paying attention to my favorite subject – personal finances and financial education!

In April, that which we’ve filed away or avoided suddenly screams, “Hey – I’m top priority now!” For some, tax season is frightening, stressful, and even overwhelming. It might be the reason April was designated by the U.S. Congress as National Financial Literacy Month – a time to showcase the importance of embracing sound money management practices.

Results from a 2012 survey by the  and the Network Branded Prepaid Card Association (NBPCA) revealed a disturbing trend to those of us who’ve been sounding the alarm. A significant number of Americans lack basic, critical financial skills.

• 56% of adults in the U.S. do not have a budget
• 77% of U.S. adults do not pay their bills on time
• 30% of adults in the U.S. do not have any non-retirement savings*

So while this month’s campaign’s not exactly sexy, it’s a key ingredient to our nation’s financial wellness.  What’s more important than taking stock of your family’s financial health?  Or, equipping your children to earn and steward money wisely?  Empower yourself with knowledge – commit to taking small steps that yield a big payoff later.

You can start to assess your own financial acumen by tackling two topics:  taxes and credit.  (Like I said – not exactly exciting.  But necessary!)

Taxes: Three good reasons to hire a tax professional

How do you manage your tax returns?  Did you struggle through doing on your own this year, or in years prior?  My advice is to enlist an expert.  The best way to learn to ski is to hire an instructor, right?  Same theory goes.  You could stumble through on your own, or you could partner with a CPA or certified tax professional. (It’s particularly important if you own a small business!)

Many people find working with a tax professional is well worth the investment.  Instead of wasting time sifting through paperwork, the focus shifts to saving money.  Professional advice ensures:

•  Your tax deductions are maximized
• You tax liabilities are minimized
• You have a partner in audits, and an expert to contact for future financial issues

Of course, don’t wait until April to talk with your tax professional.  Take your last three years’ tax returns with you… they may find savings opportunities for you right away.  Sound planning throughout the year that takes into account your entire portfolio prevents those tax related migraines in April.

Speaking of Credit …

Credit could not be a more relevant subject during National Financial Literacy Month.  Often times, it’s debt that gets people into so much trouble.  Credit card debt, especially, has a way of snowballing if left unchecked.

I believe that like many things, credit cards aren’t the problem – it’s the way they get used.  My advice is to use credit, but very carefully.  Stick to these guidelines:

• Check your credit score at www.freecreditreport.com.  Scan it for errors, and report any discrepancies.

• Ensure your outstanding balance remains in proportion with your available credit.  (For example, if you have a $10,000 limit, never allow your balance to exceed 3,000.)

• Use your credit cards, and pay them off at the end of each month; or pay as much as you are able.

• Shop for the lowest interest rate possible; you can often transfer your balance to a company offering a no-interest deal, but remember, you’ll have to be vigilant about paying it off, or the interest will skyrocket.

I’ve said it before and I’ll say it again – even if you yourself struggle with learning the basics of financial planning, you can still do better for your kids.  How about learning together?  Summer’s coming – so I’ve got an idea.  Why not get a copy of our award-winning board game, Thrive Time for Teens?

I promise your kids will love it – in fact, we’ve been traveling across Arizona for several months taking the Thrive Time Challenge to area high schools to rave reviews.  Kids are hungry to learn about this important topic.

Please talk to your teachers and principals, and advocate for financial literacy curriculum.

What’s that saying about an ounce of prevention?  Before your child slides into debt give him or her the tools to stay out of it in the first place.  It’s a gift you’re also giving to yourself!

* www.nfcc.org

I’m jet setting again.  This time to Ghana, recognized in 2011 by the World Bank as enjoying the fastest growing economy as they drilled for their most plentiful of resources – oil.

I love visiting Africa, love the people, and the children that seem to delight in our appearance there.

This time up, my husband, Michael, and I have been invited to serve as keynote speakers at MTN – Business World’s 4th Annual Executive Breakfast.  (MTN is a leading telecommunications company across the continent of Africa; Business World is Ghana’s popular business magazine.)

We’re thrilled to have been extended the invitation to return!

It’s my second trip back in a year’s time – the first time around, I spoke at the 6th Annual Financial Literacy Week celebration in Uganda.  I was excited to discover how many of Uganda’s youth had read the best-selling book I co-authored, Rich Dad Poor Dad.  I enjoyed their bright, wide smiles as they recognized me from the book jacket. (Who wouldn’t enjoy that kind of affirmation?)

So what’s the topic this time?  “Getting your Finances Right.”  This trip, like the last, is especially enjoyable because I get to share the podium with my husband, Michael Lechter, a leading intellectual property U.S. attorney, certified licensing professional, university professor and best-selling author.  Together, we’ll promote our message of financial wellness, and Michael will talk about protecting some of the best assets we have: ideas and intellectual property.

As I speak to business executives and entrepreneurs, I plan to advise them to use caution against “sudden wealth syndrome.”   Many times, when people who’ve never had enough are suddenly flush with cash – such as lottery winners – there is temptation to spend rather than steward.  I’ll encourage the good folks in Ghana to grab the tools, education and resources they need to manage their finances wisely.

The Highlight:  It’s always the Kids!

As a proud mother and grandmother, I’m passionate about inspiring schools and communities to empower children with the tools they need to earn, save and steward money.  It’s become the most important part of my life’s work.

I’m forecasting that a highlight for us this week is the chance to talk to hundreds of middle and high school aged kids participating in Ghana’s SOS Villages program.  These children, many of which are orphaned or from disadvantaged families, desperately need to hear this message:  you can control your own destiny!  Just like here at home; the message is very similar.  We want kids to understand that they have the power within themselves to create a stable, secure future.  They just have to want it badly enough, and be willing to work hard to get there.

We’ve found kids respond to very specific instructions, so we’ll be using our favorite acronym to illustrate our point:  BEFAB.  It stands for:

Back Straight

Eye Contact

Firm Hand Shake

Ask Question (and allow answers)

Be Bold

Try it with your kids at home!

These tools simply require sweat equity, and we’re certain the resilient children in Ghana have plenty in store.  They’re just eager for someone to show them the way, and we’re thrilled for the opportunity to do just that.  Stay tuned for a full report!

Have you filled up your car this week? Ouch. Gas prices have climbed, taking a more noticeable chunk out of our wallets. For many families, the increase creates even more stress on already stretched budgets.  Even for those who have more flexibility with their budgets, being mindful of driving habits and gas consumption can create surprising savings-for both our wallets and the environment. Every drop counts!

If you’re looking for ways to save on gas money without taking drastic measures – remember my mantra, “little wins.”  Make small changes that add up to big savings while we ride out this summer’s spike:

1.   Drive Less Often

Can you remember the last time you rode your bike to the store or walked to the neighbor’s?

Walking and biking for short trips not only saves gas – it’s healthier. For longer trips, consider public transit and carpooling. Websites like www.erideshare.com and www.carpoolworld.com connect neighbors with similar commutes for ridesharing. Who knows, you might make a friend for life!

Ask your employer about telecommuting.  Although once strongly resisted, many employers have embraced this now common work arrangement.   Even if you are driving a short distance between home and the office, this will add up to significant savings.

When you do drive, consolidate your errands. Planning your route and making lists can save you extra trips – and money.  (Because you still want to do the fun stuff like eat out once in awhile.)

2. Drive Smarter

You can improve your gas mileage by several percentage points with a few simple changes in your travel practices.

• Drive the limit. Most vehicles reach optimal gas mileage at around 60 mph. Driving at 62 mph versus 75 mph reduces fuel consumption by about 15%.
• Drive gently. Rapid acceleration and hard braking will quickly drain your tank.
• Avoid idling. Turn the car off while you wait. Restarting the car uses less fuel than idling for more than a minute.  Really!
• Stay sleek. Open windows & sunroofs, roof top cargo, and excess weight in the trunk each create drag, using more gas.

3. Maintain Your Car

Keep your engine tuned and your oil changed. Sludgy oil, sticky spark plugs and dirty air filters reduce your engine’s efficiency. Properly aligned and inflated tires can increase your gas mileage by up to 3% – and keep you safer on the road.

When we take better care of ourselves, we need fewer doctor visits and less medical intervention.  Your car works the same way.  I know it takes time to keep everything fine-tuned –but it’s worth it!

4. Shop for the Best Price

Like I’ve said – we’re fixated on convenience. Do you always fill up at the gas station around the corner from your house? You may be paying more than you need to, with several fuel options available along your daily route.

• Check out websites like www.gasbuddy.com to find the best price closest to you.
• Take advantage of loyalty programs through grocery stores and credit cards.
• Buying your groceries and your gas at the same place often saves up to 20 cents a gallon. Warehouse clubs like Costco and Sam’s Club often deliver the best price per gallon and Costco’s Amex card offers 3% back on gasoline purchases.

5. Rethink Your Ride

Sound financial thinking usually says that the cheapest car is the one you already own. But if it’s time for a new car, think carefully about what you really need. Are you spending most of your time driving errands alone in an empty SUV? Do you really need a 4WD Gas Guzzler to get the kids to school? Perhaps you can downsize to a more fuel -efficient model. Perhaps you can even go to one vehicle for your family – I know that’s radical but how often does your second car just sit in the driveway?

Remember, minor changes – little wins – will go a long way to keeping more money in your wallet and less of it leaving the tailpipe. What changes have you made in your driving habits? How are you saving money at the pump?  Chime in and share your ideas!

Yours in Financial Freedom,

Sharon Lechter

Businesses working with ActionCOACH boost revenues, profits and hiring.

While politicians continue to grope for answers about what to do about the economy, businesses that work with ActionCOACH Business Coaches just may have discovered a system that policy makers may want to consider for themselves.

New independent research conducted among businesses in one of the most economically challenged regions in the country reveals that business coaching (specifically ActionCOACH business coaching) leads to increased revenues, profits and hiring.

The new study is a continuation of research conducted last year that showed that return on investment (ROI) for businesses that worked with an ActionCOACH was upwards of $7.50 for every dollar spent.

This year’s research confirmed those findings, and also revealed that based on current ROI, ActionCOACH business coaching could deliver more than $34 billion in extra income to Florida businesses.

In addition, ActionCOACH coached companies increased their hiring of new team members by 7 percent over the course of the study.

ActionCOACH USA and Canada CEO Jodie Shaw viewed the independent research as confirmation of internal numbers the company has tracked and benchmarked for years.

“These results not only confirm previous studies on the effectiveness and return on investment of business coaching, but also offered new insights as to the benefits of our proprietary systems and the overall financial value of the business coaching process.”

The study showed that companies coached by ActionCOACH saw an increase in profits of 61 percent, which translated into more than $160,000 per company. The return on investment metric also increased, jumping 44 percent to an average of return of $10.80 for every dollar spent.

“In an election year, politicians pay lip service to creating stronger businesses and creating more jobs,” Shaw added. “In studies like this one, we can see that business is the real engine of growth in the economy and that ActionCOACH can boost the power and effectiveness of that engine. Just imagine what kind of economy we’d have if we could boost employment 7 percent nationwide.”

Formalized research such as the Florida study not only add to the credibility of business coaching as a proven way to build businesses, it also offers assurance to business owners and entrepreneurs who may have never heard of business coaching that the ActionCOACH systems work — and can be effective for their companies.

“The studies prove that business coaching offers a return, and if owners follow the system, they will get results,” Shaw said. “There’s incredible value in being able to go to an owner and show them they are guaranteed to get results with the ActionCOACH system. Very few coaching companies or business consultants can make that claim – and back it up with real results.”

ActionCOACH, was founded by Brad Sugars in 1993 and over the past two decades, has become the world’s number one business coaching and executive coaching firm, with more than 1,000 offices in 39 countries. To learn more, go to actioncoach.com.

For more information contact Phil Lechter at phillechter@actioncoach.com

I’ll bet when your brand new bundle of joy kicked off the receiving blanket, you began to tabulate the cost of a college education.  And if you haven’t thought about it yet, it’s never too late to start building a college savings fund – no time like the present!

The cost of a college education has soared.  Sadly, I’m seeing an alarming trend – parents raiding their retirement funds to pay for their kids’ college education.  I can understand why – tuition has skyrocketed by 130% over the last 2 decades, as income for many families has declined.   I don’t want to be the bearer of bad news, but take a look at the numbers:

If you’re tempted to pillage your own retirement accounts – consider this.  You could jeopardize your own financial future to do so.  I’m betting you don’t want to become a burden on your children later, so take care of yourselves first.

For now, start laying the groundwork for your children to get some teeth in the game.  (Even if their teeth haven’t quite come in just yet!)

Many children grow up listening to their parents extol the virtues of a college education.  But use caution in creating a family culture where children believe they’re entitled to a college education.  In today’s climate, many students will have no choice but to contribute toward their education or finance it entirely – and with the right guidance,  that could be a good thing.   Here’s why:

Whenever we’re invested in something, we tend to place in it more value.  I believe students with teeth in the game get better results. I encourage parents to prepare their children to invest in some share of the tuition, by working part-time for books and/or spending money, maintaining a certain GPA average in exchange for tuition, or taking out student loans.  Doing so gifts your children with an increased capacity for work ethic and time management skills – plus, using their own funds prevents them from falling prey to the temptations of campus life.

Don’t forget to discuss what the potential payoff may be for their investment in a college education.  Current statistics show an alarming gap between expectations and reality for college graduates.  According to a 2011 Charles Schwab Survey, teens expect that on average their starting salary will be $73,000 out of college.  Have a realistic conversation about your child’s career of choice and future ability to repay college loans.  Allow this to guide you and your child in finding a healthy threshold for debt.  Don’t worry.  They’ll thank you later!

In my own state of Arizona, the issue of rising tuition costs has led to a legislative effort: propose House Bill 2675.  The bill, authored by Rep. John Kavanagh, requires that every student pay a minimum of $2,000 toward tuition at public Arizona state schools – although, students who receive national scholarships based on academic merit or athletic ability are exempt. 

What do you think?  Should all students be required to pay something?  Should this decision be left for the parents to decide…not the government? Either way, this issue will continue to make local and national headlines as funds dry up and universities struggle to balance budgets – just like everyone else.

Building your college savings fund:  Which option is right?  Get advice from the experts -

As college costs continue to skyrocket and the economy proves uncertain, planning for tuition, books and living expenses may be daunting.  I strongly encourage you to enlist the help of a CPA or certified investment or financial advisor to navigate the varied options available to you in building a college savings plan – including systematic savings vehicles, such as savings bonds; education specific savings vehicles, such as 529 college savings plans; and of course, garnering funds from scholarships, grants and loans.

Whatever your choice, make certain to integrate your children into the discussion.  Involve them in the decision-making process, and talk with them frequently about the status of your goal.  By the time they’ll need to pay for college, your kids will have become accustomed to this idea: they are, too, responsible for the careful stewardship of funds they’ve built, earned, or borrowed.

Getting Kids to Contribute:  Think outside the box

Creativity and diligence count when planning for college.  Check out these ideas and share yours with us.

1.  Incentivize your kids to save their earnings from jobs, or a percentage of money from gifts by creating a matching funds system.

2.  Invest in real estate as a means by which to pay for college or provide housing for your kids, where they act as property managers and collect money for rent from roommates.

3.  Inspire your kids’ entrepreneurial spirit – encourage them to launch a side business such as landscaping, child care, computer maintenance, arts camps for young kids or home and pet care, promoting to customers they’re using their earnings toward college.

Got an idea to share?  We want to hear it.  Please chime in and let’s get the conversation going!

Today’s Savvy Money Management Tip:  Ask your children to clip coupons to use at the grocery store.  Tally your savings, and add it to their college savings account.  Teach them that over time, modest amounts add up.  Remember – little wins!

Ladies, it’s your turn today.   Because as women, we’re so busy thinking of everyone else, we often neglect to do the things most beneficial for ourselves.  Even taking time to read this blog means you’re saying “no” to someone or something else.  Good.  It means for once, you’re saying “yes” to YOU!

Here’s some statistics that might interest you.  Studies show that:

• 85% of consumer decisions are made by women
• 90% of women will be solely responsible for their finances at   some point during their lifetime
• 31% of households are headed by women breadwinners

As our demographics shift, it’s more important than ever for women to harness the skills necessary to budget, save, steward, spend and invest money.  I know you’re busy – so take one step at a time, and make what I call “small wins,” one step at a time.  You won’t regret it!

Scores of women have told me they feel unprepared – even afraid – with regard to money management.  Often, we defer to our spouses to make decisions about money – even powerful career women with corner offices.  Case in point:

Just a couple years ago at my Birthday party, I asked each of the ladies at the table this question, “How many of you sign your tax returns without even knowing what’s in them?”   Their answers shocked me.  All but one of these jet setters (literally) signed her return without knowing and understanding the details.  Ouch!

The truth is – we never, ever know what’s in store.  Are you prepared if your husband died suddenly?  Would you know how much money was at your immediate disposal and where to find the rest?  Will the funds at your disposal secure your future – or are you prepared to earn more?

Because this topic is such an essential one, I’m going to write a series of blog posts over the coming months to walk you through 5 concepts of money management, including creating a budget, understanding and managing credit, saving, investing, and preparing for death and divorce. 

Empowering yourself with information before an emergency is the first step in achieving the savvy money management skills essential for every woman, especially if you’re raising a family.  (And while you’re learning – teach your kids!)

First things First:  Create a Budget

Creating a budget is essential because it’s a proactive step to understanding just how much disposable income you have to spend, aside from fixed expenses, savings and investments.  Creating a budget – and sticking to it – reduces stress, curbs impulse purchases, and holds your feet to the fire. The hardest part is getting started.  Dig in!

Minutes to a Mastering Basic Budget Skills (Well, almost…)

Get an online form.  The web’s got scores of budget templates you can find online.  Your software packages may even include one, so take a look.  (I’ll give a plug for one that anyone can use created by our friends at National Bank of Arizona)

Determine your disposable income.  You need to determine exactly how much money you have each month to spend.  Some people find spending on a cash-only basis discourages excess debit usage. Try withdrawing cash twice each month based the amount you have to spend after fixed expenses, savings and investments.  You’d be surprised how using cash affects your spending choices!  If you spend faster with cash in your wallet, then stick with the debit card.

Spend time with your budget every month.  Maybe it’s “Money Mondays” or “Thrifty Thursdays”  – but make friends with your budget.  Take a look at your spending each week. Keep your goals in mind.  What are you working toward?  What incentivizes you?  Picture it.  Reward yourself for your progress.  (But not with more spending!)

When you take a little time to analyze what you bring home after expenses, savings and investments, make a commitment to live within your means, or work to earn more.  Taking just one proactive step such as creating a monthly budget boosts your confidence – and your savvy money management chops!

Today’s Savvy Money Management Tip:  Take a look at your spending when it comes to convenience.  If you often find yourself at drive-thrus for lunch, make a commitment to make up a couple of fabulous salads to keep in the fridge…and instead of fast-food restaurants…drive-through your kitchen at least twice each week.  It will be easier on your wallet…and your waistline! Remember, “small wins,” over time, translate to sizeable savings!

What is Your Financial Knowledge

1. What are wants and needs?

• Parents ask your kids: What’s the difference between a “want” and a “need”?
• As adults and parents, we all have a better concept of wants and needs. Even we have to be reminded at times though, and it is an important distinction that many children simply do not grasp. Engage in a simple activity to show your kids the difference between a want and need. To your children anything they want enough instantly becomes a need. Ask them if they really need those new shoes, or do they just want them? Ask them to think of others things they might want but don’t need. It will be a great start to begin distinctions that might help them save money in the future (see my post on the Two Minute Rule) and a great refresher for you too!

2. How Can You Celebrate Without Money?

• Parents ask your kids: How could you celebrate when you accomplish something that doesn’t require money?
• The possibilities to do activities without draining your money are only limited by your children’s imagination. I am sure from experience you know they have quite the imagination! Listen to your kid’s ideas and try to put it into practice it in the near future. Don’t just consider their ideas, actually do them. They might suggest fun and free activities all by themselves in the future. If you can create a reward for their creativity, not only will it fuel their creative potential throughout their life, but you will be establishing a healthy habit for them.

3. What Are Taxes?

• Parents ask your kids: Do you know what a tax is and why we have it?
• Many kids simply have no idea. Taxes are a concept more for your children that have a good handle on some basic money concepts. Talk to them about the different types of taxes before they start into part time jobs or their own business. They may know about some coin terms like Medicaid and Social Security, but not have any idea what these taxes actually do. Explain the different types of taxes to your children and how they might encounter them in their life. From sales tax to income, show how each affects them.

4. How Do Ads Influence Us?

• Parents ask your kids: Do you know that you will see over 40,000 ads before you turn 18 that will make you want to spend money?
• That is a pretty staggering number that most kids (and adults) have no idea about. The number of outlets reaching out to try and steer you towards a purchasing decision are phenomenal, and they are coming in more ways then just billboards, TV commercials and newspaper ads these days. Ask your kids if they know how all these ads might influence them. Tell them to think critically about ads and to use their brain when making buying decisions. Many times you are paying simply for the name on an article of clothing or toy, when there are products exactly the same at half the price! See if you can spot one of these items with your kids.

5. How Do Your Parents Make Money?

• Parents ask your kids: Do you know what your parents do to make money?
• Your children know that you work for your money, but most of them won’t know what that actually entails. Explain what it is you do everyday that makes money and pays the bills. It will be a great learning experience for your kids to actually learn the technicals of a day to day job or your entrepreneurial lifestyle. Encourage them to think of their own ways to make money while you are at it. Teaching your kids what job expectations are and how companies work is important for their entry into the work force. You may find it ignites their creativity to start their own business.

6. How Much Does Gas Cost?

• Parents ask your kids: Do you know how much it costs to fill up a car’s tank of gas?
• Your 15 or 16 year old probably knows this lesson all too well, but your younger children may not. It is never too early to introduce them to the facts that going places they want to go costs money too. Use this as an opportunity to talk about the advantages of having one type of car over another. An SUV guzzles gas but it is often necessary for larger loads. Hybrids save lots of gas but can cost more upfront. Find out how your children might save on gas like consolidating trips.

7.  Can You Make a Present?

• Parents ask your kids: Have you ever made a present instead of buying it for someone?
• Some families make this a holiday tradition while others pick up all their presents at the mall. If your kids have never done this before encourage them to. Think of some ideas with your kids how they might make their own gifts this year. Sometimes the best gifts are the ones we make ourselves and not the ones we buy from a store.

What Are Your Buying Choices (or Entitlement vs. Empowerment)

8.  What makes you decide on which pair of shoes to buy, which clothes to buy?

• Parents ask your kids: What makes you decide on which pair of shoes to buy, which clothes to buy?
• Most kids will give you two answers; either because it is what their friends wear, or simply because they like it. Both make perfect sense, but the hidden question to this is, “why do you like them?” It’s probably not one they are going to be able to give you a firm answer to, but the answer is most likely because they have been influenced by advertising. Ask them to reflect again on how advertising has been affecting them without them even knowing it. Hopefully they will learn to shop for similar styles that are half the cost.

9. What is your favorite store? Why?

• Parents ask your kids: What is your favorite store? Why?
• You probably already know the answer. Whether it’s Macy’s, American Eagle, Forever 21, Pac Sun or many more, there is usually one favorite store your kids always picks to shop. It may be the ambiance of the store or more likely the brand of clothing they find there. What you and they might not know though, is that lots of the exact same brands can be found at different stores for half the price! A dress that costs $100 in Macy may be only $40 or $50 in Ross or Marshalls. Knowing that, doesn’t it seem silly not to buy the same clothes at half the price if you can? Be sure to visit some discount stores next time with your kids to find true savings.

10. How many of your clothes are from popular brands?

• Parents ask your kids: How many of your clothes are from popular brands?
• Ask your kids to physically go into their closet and count out the number of clothes from their favorite brand or two. Is it 30 percent, 50 percent or even 70 percent? Try to find examples of cheaper brands of clothing that are very similar to the one they like. There are many that are very similar in style and fashion, just with a different logo. Combine it with the previous example and see if they can find their favorite brands at other stores for much cheaper. Show them how they are spending so much extra money simply for a name!

11. Does it feel good to buy something on sale? Why?

• Parents ask your kids: Does it feel good to buy something on sale? Why?
• Hopefully they answer yes! But considering you have probably done most of the buying for your kids, they may not care or really appreciate a sale. Saving money should always be a rewarding experience. A good way to start your children learning is by giving them a set limit card of their own, just like the one we offer here at YOUTHpreneur. Something like the UPside card can help your children appreciate the value of a dollar a bit more. Check it out today to learn more.

12. What was the best thing you ever bought? Why?

• Parents ask your kids: What was the best thing you ever bought? Why?
• You may or may not have any idea what the answer to this question will be. It could be an expensive and flashy toy, or it could be a treasured stuffed animal or other item from when they were younger. What this will give you is a good bearing on some of the things your child values. Ask them their top five. Try to show them that some of the best things they ever bought might not necessarily be the most expensive. Think of examples to help them find other items like these.

13. How do you act when you want us to buy you something?

• Parents ask your kids: How do you act when you want your parents to buy you something?
• Your kids may see the situation quite differently than you do! But sometimes the way they ask for things are not appropriate or the best way to reasonably ask for them. Try to instill in them a sense of self-ownership and make them earn what it is they want. That can be through letting them control their own set spending limits or coaching them when they are being obstinate, instead of just bowing down and purchasing things for them. Whatever your method if you can make them realize the value of the things they want, they will be better prepared to function in the real working world.

14.  Is it easier to name your favorite store than your favorite charity?

• Parents ask your kids: Is it easier to name your favorite store than your favorite charity?
• For most kids it will be. After all, their favorite charity isn’t posting billboards and ads at every turn. But instilling a sense of charity and showing them how to give back to the community should be an important part of their life. Find out if they have any desire to help one cause or another and try to put it into action. Visit a soup kitchen and help out if that is what they like to do, or donate old clothes to the Salvation Army. Try to encourage whatever their charitable passions are and they will reap the rewards from helping throughout their lives.

How Can You be Charitable (or Delayed gratification vs. Instant Gratification)

15.  How do you feel when your friend gets something new and you do not?

• Parents ask your kids: How do you feel when your friend gets something new and you do not?
• Your kids may shrug off this question or not. It is always good to know how your children react when their friends get cool new toys though. Now I’m not advocating every time your children’s friends get a toy to go out and buy them one too – exactly the opposite. Knowing how your kids react to this kind of influencer though is important. Maybe you can do one of your free and fun activities with them to take their mind off this and show them they are special in their own right. This will help them learn to value more of what matters and less about every new bauble or toy.

16.  How do you act when you get something new and your friend does not?

• Parents ask your kids: How do you act when you get something new and your friend does not?
• Children usually react in two different ways; they share their new toys with their friends, or they hold it over them and taunt them with it. Most of it is a reasonably good natured competitive spirit, but you should take the opportunity whenever possible to teach your kids to be sharers and to let others enjoy the benefits they have received. It is a philosophy they can use throughout their life and is essential in being an entrepreneur and a good steward of the business community. Giving back has many of its own rewards and it is never too early to being learning that lesson.

17.  What are some of the things you could do to help reduce the monthly bills at your house?

• Parents ask your kids: What are some of the things you could do to help reduce the monthly bills at your house?
• Kids of different ages could have different ideas. The important thing is to listen to what they might do and suggest some ideas of your own. Maybe they can cut down on the water bill by taking quicker showers or cutting back costs on gas for the car by consolidating trips. It’s possible they come up with an idea of their own that you might have never thought of and is quite good. Their idea could also be to not cut down on bills, but bring in additional income and how they might help do that. Whatever it is, listen and work with their ideas.

18.  What could you do to help someone else besides give them money?

• Parents ask your kids: What could you do to help someone else besides give them money?
• This is another great question to find out what kind of charitable activities your kids are into. It can also be a great opportunity to help out the neighbors or a family friend. Perhaps as a weekly charitable act your kids can help the neighbor pick the acorns up off their lawn, help an elderly person with some of their groceries or a number of different things. Think of it as a way to instill philanthropy. Take their ideas into consideration and try to make them happen first before suggesting some of your own.

19. Could you raise money by selling some of your stuff?

• Parents ask your kids: Could you raise money by selling some of your stuff?
• Hopefully the answer is yes! A lot of us have the tendency to be pack rats and keep every stitch of clothing or toy we have bought for our children. But rarely do we use many of these old items anymore. Wouldn’t you and your children rather sell off unused but still good items and turn them into cash instead? So clean out the closets, attic and basement with your children and show them how they could be making some extra money by selling off old stuff.

20.  Could you raise money by helping your neighbors for a few hours a week?

• Parents ask your kids: Could you raise money by helping your neighbors for a few hours a week?
• Find out if your kids have some ideas how they could help out the neighbor and make some money doing it. Mowing their lawn or other various chores many neighbors are willing to pay for and help out your kids. The tasks don’t have to take over their whole week, but if they start small and begin generating an income it will start to spark their own drive and creativity. Walk with your kids over to a neighbor’s house you are friendly with and introduce them, but let them make the proposal to help out. It will give them a sense of ownership for helping.

21.  What are two things that you own that you could give to someone else?

• Parents ask your kids: What are two things that you own that you could give to someone else?
• It could be a soccer ball, old clothes and more. Ask your kids to bury through their closet or the attic to find two things they are not using anymore. Maybe they have a friend that has always wanted something they have, but no longer use. Once they have picked out the items, make sure they follow through and actually give them to the friend, relative or even sibling. Maybe it is even an item they still like, but know another person would be happy to have. That kind of generosity will serve your kids well throughout their lives.

How Can You Save and Make Money (or Becoming a master to money instead of a slave to money)

22.  How would you feel if you had to wait until you saved enough money to buy something you really wanted?

• Parents ask your kids: How would you feel if you had to wait until you saved enough money to buy something you really wanted?
• Whatever the answer, this is something you should start teaching your children how to do. By giving them the responsibility to earn and manage their own money, not only will they value it more, but they will take pride in the things they have bought with it. It will certainly save you a lot of money and pull your children out of the “just charge it” and entitlement phase that so many have today.

23.  Have you ever traded your time in exchange for something you really wanted?  When? How did it feel when you were
done?

• Parents ask your kids: Have you ever traded your time in exchange for something you really wanted?  When? How did it feel when you were done?
• Maybe it was through helping a friend or neighbor out, or even you, to help get something they wanted. It should be a rewarding experience for them. Show them that mowing the lawn or other chores they get paid for are actually trading their time in exchange for the things they want. Money is the common denominator between all of it, but what we do with it is what really defines us.

24. How can you make sharing a part of your next shopping trip?

• Parents ask your kids: How can you make sharing a part of your next shopping trip?
• Listen to their ideas and see if they have any creative ones. Perhaps if they are going to buy something, they could also pick up something small for a friend and share with them. It could be as simple as sharing a ride to the mall with a friend. Whatever it is, the connection you want to make with them is between buying and sharing. When they do something for themselves that they are thinking about what they can do for someone else as well.

25.  What things have you done with your friends where you had fun but didn’t have to spend money?

• Parents ask your kids: What things have you done with your friends where you had fun but didn’t have to spend money?
• This is another great question to find out where your kids’ interests may lie without having to spend lots of money. Encourage more of these types of activities with their friends. Sure it’s great to head to the water park, movies and other places every now and then, but they may be just as content to go over a friend’s house and hang out without spending any money. Not everything fun requires money!

26. How do you feel when you set a goal, and then achieve it?

• Parents ask your kids: How do you feel when you set a goal, and then achieve it?
• Your kids should have a sense of accomplishment. Meeting a goal, even a little one, is always a rewarding experience! Meeting some of our bigger goals often are the most memorable moments in our lives. Know what your kids’ goals are and how you can help them meet them, within reason. Don’t do it for them! Also, be sure to congratulate your kids when they reach a goal.

27. How could you help your parents make more money?

• Parents ask your kids: How could you help your parents make more money?
• The range of ideas here could be huge, and usually it involves around one or more of your kids’ interests. This can be a great opportunity to show them how to turn a hobby into a business. It is never too early to start them down the path of entrepreneurship. It could be anything from jewel making to photography, babysitting to mowing lawns. Whatever the idea, try to help them along and encourage them to start. There are some great tools here on YOUTHpreneur that can get them excited and give them a helping hand along the way.

28.  Do you have a hobby or talent that could become a business that could make you money?

• Parents ask your kids: Do you have a hobby or talent that could become a business that could make you money?
• Follow up with the ideas from yesterday and really ask your kids to look into how they could turn a hobby into a business. Ask them to sit down and create a budget sheet. How much would it cost them for equipment or goods they might need, compared to how much they are making in profit? Is their hobby a feasible business? In the YOUTHpreneur Biz Kit you will find many of these items that can help simplify the process and explain all the terms to them. It’s a great way to launch their entrepreneurial careers.

29.  If you could have an extra $500 per month, what would you do with it?

• Parents ask your kids: If you could have an extra $500 per month, what would you do with it?
• Your kids’ immediate answer might be to go spend it on a whole bunch of new things, most of them that will last them only a few weeks before being forgotten. Guide them through different ways to save and give back their money. If they have $500, ask them to put $200 of it into a savings account, give $100 to their favorite charity and keep the other $200 for themselves to spend as they would like. This will set them up for long term success and the fundamentals of a budget. If we all spent every penny we got as soon as we got it, we would be dead broke before too long and have nothing for the future! This way, your children learn philanthropy and saving.

30. How would you Pay Your Family First?

• Parents ask your kids: How would you Pay Your Family First?
• Your kids may not know this term, but they should as it is one of the most fundamental to continued success and happiness. Pay Your Family First is not only my organization for financial education; it is also a way of being financially fit. What it means is that whenever you are accounting for your income or any good fortune that has come your way, to always share it and give back with your family first and foremost. Paying your family first not only helps you to strengthen bonds, but sets you up for success your entire life. I hope you have enjoyed these questions to ask your kids, and have both grown together because of them. I encourage you to join our ongoing conversation in the YOUTHpreneur community and to start your own. Have your kids sign up and spark their entrepreneurial spirit. It is a skill they will develop and keep throughout their lives.

Your teen just spilled soda all over the brand new laptop you gave him for Christmas…or downloaded too many songs last month.  What now?  That’s exactly the kind of scenario we serve up in our award-winning board game, ThriveTime for Teens.  And as we kicked off our statewide ThriveTime Scholarship Challenge at Estrella High School in Avondale, Arizona, it was our pleasure to watch students compete so enthusiastically.  Proving the Xbox generation still embraces a real-time challenge!

As I witnessed first hand the difference the challenge will make in the lives of those kids, I beamed with pride.  When teens practice making choices and decisions about personal finances before they get to college and out into the “real world”, they’re so much better armed against diving into debt.

By educating teens about managing money and time, we can better equip them to Thrive during their early twenties and throughout their lifetime.  We can set our youth up to do more than just survive.

This is why Pay Your Family First launched a scholarship challenge in my own home state of Arizona.  Under the searing budget cuts of a limping economy, schools everywhere are struggling to maintain high quality education.  So we created a win-win opportunity for students, schools and families.  The ThriveTime Scholarship Challenge requires participants to navigate real-life scenarios related to earning, saving, investing, spending, and giving.  Oh – and they’re having FUN competing against each other in groups of 4 to 6 players at a table, with dozens of games going at once.

In partnership with Choices Educational Empowerment, we’ve scheduled competitions at scores of high schools across our great state with more schools interested in signing on.  Each participating school will receive a $250 donation from Pay Your Family First, and winning students earn the chance to compete during the state tournament in April 17th, 2012, for prizes ranging from $2500 to $5000.  That kind of money goes a long way toward financing a college education. No wonder the kids were motivated!

According to Estrella’s principal, Casey Zordani, the kick-off competition went off without a hitch, and high praise came from the kids themselves. “The students were talking about the competition for the rest of the day. Thanks again. Your program made a big impact on my students’ lives.“

For years I have advocated that money management skills begin at home. Think about what your parents taught you.  Did they help you to practice the discipline of saving part of that $20 Grandma sent for your Birthday each year?  Did they require you to pitch in around the house and to earn spending money?  Did they underscore the dangers of debt and how to avoid it?

Unfortunately, many parents don’t feel comfortable or are not sure where to start to teach their children the principles of personal finance because they never learned any skills themselves.   But you can do better for your kids.

Start by using the tools available to you, and learn together.  Check out our website at Pay Your Family First, andif you think your child’s high school would benefit from our ThriveTime Scholarship Challenge, contact our own Angela Totman at: angela@pyff.net

Here’s to building a secure financial future, starting today!

Sharon

Smart Money Tip of the Day:  Talk with your local banker or investment advisor about opening a 529 College Savings Plan.  These plans – named after Section 529 of the Internal Revenue Code – are administered by state agencies and organizations.  The withdrawals you make toward higher education expenses are free from federal tax income.

You read that right.  As one year comes to an end and another begins, people often look to make changes in every aspect of their lives – especially finances.  So now is a good time to think about taxes.  Yes, really!

It’s not too early to look ahead to tax season to consider steps you can take now to make that often dreaded deadline a bit easier.  As a CPA, I’d like to share a few quick tips that may help you to get as much out of your taxable income as possible:

Hire a Tax Representative.  We hire landscapers to manage our grounds.  We consult with attorneys to represent our interests.  Taxes, too, require professional advice and management.

It’s easy for most people to miss opportunities to reduce their taxable income, given our complex tax code and changing legislation.  Sure, you could opt to do your own taxes to save money, but an advisor is likely to identify how to keep more of the money you earn.  They have years of experience of seeing how people have handled their finances correctly (and not so correctly) — so you get the benefit of all of that experience.  Plus, you can reduce the fees incurred a tax professional by preparing ahead of time by taking just a few steps:

• Gather the appropriate records, including last year’s tax returns, receipts for charitable donations, and year-end investment and property tax statements
• Identify changes in your status if you’ve gotten married or had children
• Consider starting your own business…it will allow you to invest in your future with pre-tax dollars!  Ask your advisor to guide you through the process.

Read Up on Tax Legislation and Programs.  If you still choose to do your own tax returns, or if you just want to stay informed, make use of trusted free resources such as www.feedthepig.org, or www.360financialliteracy.org to brush up on legislative initiatives to get the most out of your taxes.   Make sure to look into those now, for important year-end opportunities.  Many of these tax initiatives were extended through the end of 2012.  However, with all the discord in Washington, your advisors may want you to take advantage of them while you can in 2011.

Don’t overlook the most common practices to reduce taxes, such as deferring income, accelerating expenses, and asking for a raise after the New Year.  Considering retirement in the near future?   Consult with your tax advisor about the options available to you.  If you are looking for more guidance check out It’s Your Turn To Thrive, a program I created with my advisors to help you learn what questions you should be asking your own advisors.  www.payyourfamilyfirst.com

Follow these tips and cross at least one of those New Year’s resolutions off your list! Wishing you peace, joy and prosperity in 2012!

Best selling author, entrepreneur, international speaker, CPA, philanthropist and proud mother and grandmother, Sharon Lechter passionately promotes financial literacy. A national spokesperson for the AICPA, Lechter also served as a member of the first President’s Advisory Council on Financial Literacy. 

The Founder of Pay Your Family First and YOUTHpreneur, Lechter has been honored to receive several awards, including the Mom’s Choice Award® for her board game, ThriveTime for Teens, and also for the YOUTHpreneur BIZkit.  Most recently, she released Three Feet from Gold and Outwitting the Devil in cooperation with the Napoleon Hill Foundation. Co-author of the international best selling book, Rich Dad Poor Dad, Lechter continues to travel the globe empowering others to achieve prosperity. Visit Sharon Lechter online at http://www.sharonlechter.com