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Archive for the ‘Teens’ Category

If you are a parent, you realize that there are millions of things a child must learn before they become adults, and it is in large part your job to instill them with all this knowledge. Oftentimes, financial sense and frugality take a backseat to these other tasks, but it is important to help your child understand how to get money and what to do with it once they have it if they are to be financially successful once they move out.

Be a Good Role Model

The quickest and best thing you can do to help your child be financially stable is to be financially stable yourself and explain to him what you do and why. Every time you choose not to purchase something or you put money away for something important, like retirement or emergencies, you have the opportunity to give your kid a mini-lesson to help them later on.

When you’re at the grocery store, talk to your child as you compare prices, and when you’re getting ready to leave for work, explain why you’re not purchasing that fancy Starbucks coffee and drinking homemade brew instead. Thinking aloud gives your child the chance to see your thought processes when you purchase items, and this will help them create similar thought processes to use later in life.

Help them Practice Frugality

Giving your kid the chance to practice the skills you show them is invaluable. Allowing them to make the choice between the name brand cereal and the cheaper store brand, with some type of reward attached to the less expensive choice (even if it’s just praise) can help them see thriftiness as a positive attribute in a person. Showing him how saving money on one thing can free up money for something else that is more important to him can help prepare him to save for long-term goals later in life.

Give Them Some Practice Financial Independence

Before a child is given free reign with his money, it’s best to let him get in some practice first. Give him an allowance, but require him to pay for specific things himself (toys at first, and later gas or school items). Get your child a secured credit card so they can practice using one without worrying about them getting into debt. If they’re going to make poor choices with money, as most people do at first, it’s best to put it under a controlled situation so that the worst that happens is they’re unable to get the shirt they want or go to the movies without the side effect of debt and interest payments.

Show Them How to Save

Open a savings account in your child’s name and create a saving policy similar to your own. If he has an allowance or gets money for birthdays, have him put 10% into long-term savings, explaining that this money is for important long-term goals such as their college education or a house. If they get in this habit early, they can continue it on into their adult life, and they get the bonus of having some money saved up before they walk out the door.

Preparing your child for their financial future can help make his life simpler, happier, and much more stress-free. Through a few simple actions, you can set your child up to be financially successful from the moment they leave your care, and you can feel secure in knowing that your child knows enough to avoid many of the pitfalls of young people who start receiving an income and aren’t sure how to save and spend wisely.

Sandra Matthews is a mother of three, a loan consultant, and a content contributor for online insurance companies. She insists that unsecured loans as well as secured loans are still available for all types of borrowers.

Teens have the highest car insurance rates due to their inexperience behind the wheel, and their inability to recognize and react to dangerous situations in a timely manner. Teens are more of a risk taker than mature drivers are, and are more likely to become distracted while driving.

Cell Phone Use Among Teen Drivers Leads to Distraction

Distracted driving is the number one killer of teen drivers from the ages 16 to 17. The Pew Research Institute found 34% of the teens ages 16 and 17 they interviewed admitted to texting while driving.

The research also showed that 52% of the teens interviewed said they used their cell phones while driving. In addition, 40% of the teens interviewed said they were in a car with a driver that was using a cell phone while driving in a distracted manner.

The National Safety Council determined that drivers between the ages 16 and 17 are three times more likely to be killed in an auto accident.

Teen Drivers Raise Insurance Premiums

Insurance companies classify male teens a higher risk than females of the same age group. The males have a higher incident rate of speeding violations, drinking violations, and accidents according to the Center for Disease Control (CDC).

Where the overall auto insurance rates may double if you were to add a teenage girl to your policy, if you have a son, you may see your teen auto insurance triple.

Teen Drivers and Insurance Discounts

There are ways to get discounts on your insurance premiums, even with a teen in the house and behind the wheel.

If you have more than one car on your insurance, let your agent know that your new driver will be only driving the vehicle that is older, and has a lower replacement value. By listing your teen as an occasional driver, you may further reduce the cost of your premium.

Good Students Benefit with Lower Insurance Premiums

Good students with good grades can equal good insurance rates. Your insurance agent should be able to tell you what type of discount you are eligible for if your student is a straight A student. Many insurance companies will reward discounts to the students that carry a B average as well.

If your teen has a car of their own, they may be able to get a cheaper policy on their own if the vehicle is older with a very low replacement value. They will not qualify for low insurance rates if they are driving a 2009 red Mustang convertible.

Graduated License Programs Report Reduced Accidents

Some states have a graduated license process for new drivers. The teen that is going through this program starts with a learner permit, and graduates to a driver’s license by completing driver’s education courses and driving with experienced licensed drivers. Your teen may qualify for an insurance discount if they have participated in this program.

Nationally, states that have a graduated license program report a 20% reduction in fatal crashes that involve drivers 16 years of age.

Help Your Teen Become a Safe Driver

Some insurance companies have classes that you can send your teen to that will help to reduce your insurance premiums. These specially designed training programs provide further education to your teen driver, while providing parents with tips on how to help your teen become a safe driver.

By combining your auto insurance with your home insurance, and adding multiple car discounts, it is possible to save money, even while adding a teen to your insurance policy.

Crystal is a freelance writer for a site that provides affordable car insurance for consumers by comparing auto insurance quotes. If she is not busy working then she can be found helping her three children or going to the gym to work out.