your one, golden piece of advice you would share

[scfr]

Since you are a magician, you could talk about illusion and things not always being as they appear.

They may look at a person who drives a luxury import car, lives in a McMansion, and wears designer clothes and think "rich guy" when in fact he may have next to no financial assets.

On the other hand, they may look at a person who drives a boring older vehicle, lives in a modest home, and wears garage sale finds and think "poor guy" when in fact he may have millions.

Then ask them if they want to create the illusion of being rich, or be rich for real.

[jasonnoguchi]

"You get everything you want in life as long as you help enough other people get what they want in life." -- Zig Ziglar

[cptacek]

Then ask them if they want to create the illusion of being rich, or be rich for real.

I like this one!

[swanson719]

My problem with having credit cards is the same I've always railed about. We have to remember that the people who come to this site are usually of sound enough financial mind to be able to understand their finances and know what's going on with them, etc. To that end, for the regulars here, responsible use of a credit card isn't so bad. You look around for the right one, don't pay annual fees, and find a good rewards program.

Credit card companies would be out of business if Ima Savers case was the norm. Ads for debt consolidation are on at least once an hour if you watch TV, and we get at least 3 CC offers in the mail a week. These things cost money. To keep these companies in business, it's not the financially fit they are marketing to. It's the same audience a magician markets to. To tell a teen or 20 something that "Credit cards are ok if used responsibly" is the same as telling that audience "Alcohol is ok if used responsibly". Both are equally dangerous - both can ruin lives or let you have a lot of fun. And the teen or 20 something hears the same thing on both "Credits cards or ok..." or "Alcohol is ok..." before they tune out. Responsibility doesn't seem to be a hot ticket item in our country right now, but fun has always been. To give an endorsement to something dangerous to a general audience, even with a caveat, is bad business in my book.

[disneysteve]

To tell a teen or 20 something that "Credit cards are ok if used responsibly" is the same as telling that audience "Alcohol is ok if used responsibly". Both are equally dangerous - both can ruin lives or let you have a lot of fun. And the teen or 20 something hears the same thing on both "Credits cards or ok..." or "Alcohol is ok..." before they tune out. Responsibility doesn't seem to be a hot ticket item in our country right now, but fun has always been. To give an endorsement to something dangerous to a general audience, even with a caveat, is bad business in my book.

I totally understand your point, but I think it leaves out the value of education. How many college kids get in trouble with credit cards not because CCs are somehow evil but because their parents never sat them down and explained how CCs work? The kids were never taught the consequences of using a credit card and not paying the balance in full each month. They were never taught the significance and importance of their FICO score.

My daughter is 14. We've had numerous conversations and "Dad's Financial Academy" lessons about credit. I've sat down at the computer with her and walked through a hypothetical purchase and discussed the differences between paying cash, paying by check, paying by debit card or paying by credit card. We focused on the CC and I used an online calculator to show her what happens if the balance isn't paid in full when the bill comes. I showed her how interest racks up and how the total repaid can be far more than the actual purchase. I showed her how it could take years to repay even a simple purchase if she only makes the minimum payment.

This is the info teens and college kids need. They don't need to be told "No credit cards ever." That's like having abstinence-only sex ed in school. It doesn't work. Kids will still have sex but it will be totally uninformed and uneducated. Same for credit. Tell them no credit cards and they will still go out and get credit cards. They just won't know how to use them properly.

[Joan.of.the.Arch]

Sex ed comparison? Ha-ha, I tucked a credit card into my responsible 16 year old's hand and told him to put it in his wallet, He had for years shared in the financial discussions of the household and been taught how to make decisions.

A magician can carry a message, but the most solid learning takes places as a process, not as a one time only event. The hope would be, that your message would reinforce what they are hearing elsewhere, or at least raise curiosity to find out more.

Are you ready to start pulling educational books and CDs from behind your audience's ears?

[swanson719]

I think Joan brings up a solid point, and yes Disneysteve, I did neglect the power of education on this topic for the fact that we are not taught, in general, personal finances in our schools. It still seems taboo to discuss finances amongst family in many instances, or the parents are equally uninformed. You can tell parents that it is as much their responsibility to educate their children as it the teachers, but that rarely seems to happen. Abstinence only sex ed has failed for years, but the point of sex ed is to either discourage sex, or to encourage responsible sex. The only 100% safe form of sex, like credit card usage, is to abstain. 1 day late as a result of either leads to some pretty serious consequences.

[lovcom]

Here is what I toldd my teen daughters (now 18 & 21):

1. Don't confuse a vocation/career with a hobby. Therefore DON'T major in art, music, anthropology, sociology, and other concerns that provide little or no pay and little or no opportunities. Leave those studies to the trust fund babies, or worse case MINOR in them but NEVER major in them.

2. Before you choose a major, FIRST reseach how many jobs you can get with that major, and how much do those jobs pay! I can't stress how important this is. Read #1 again!

3. Before you take out huge tuition loans, read #1 and #2 above.

4. DON'T confuse vocation/career with a hobby. Sure, art and such are "cool" but these studies rarely lead to good paying jobs.

5. People tend to be like their circle of friends, so if most in your circle are losers going no where, you might be like them too. Changes friends. Upgrade and get with a circle that are going places, doing things. Also friends that party all the time mean you will be too, and parying means spending too much money and wasting time that could otherwise be used more efficiently for advancing your life.

6. Don't get into debt. DO get a credit card but only use it for emergencies.

7. Pick a major that will lead to big $$$.

8. Don't buy this BS about finding something fun to learn, or this dellusion that if one does what they love, the $$ will follow...this is idealization, romantization, and also mostly BS. Sure it happens but it is very rare.

9. Don't go with the crowd on politics, lifestyle, nor financial strategies.

10. Nurture a strong sense of delayed gratification. Wait and get better. Wait and pay less. Wait and be wise!

[sandrark]

You have 12 minutes to reach 500 teens with you best piece of financial wisdom, what do you tell them?

- Make a budget and learn to live with it.

- The budget should include savings, and retirement savings of at least 10% gross income.

- Utilize Roth's while your income is low.

- Get an education. But don't mortgage your future with student loans.

- Marry someone with similar visions and values as you have. Divorce is expensive to your net worth.

- Pay cash for toys. Learning to save before spending is INVALUABLE.

- Find a job with insurance and benefits, even if the initial hourly rate is low. Evaluate TOTAL compensation.

- Be willing to buy a fixer-upper house, and learn to DIY in the early years. Equity is instantly attained with some paint, some effort, and a willingness to learn.

Sandi

[LuxLiving]

"Don't buy stuff you cannot afford." ~SNL skit

[Pitman]

Totally agree. I would also add: Don't spend your money just because you have it. I know a lot of people that "live below their means", but then after covering all of their living expenses, they see they have extra money in their checking account, so they go out and blow it on something they've "always wanted".

Sadly, I've fallen victim to this. Well victim sounds too much of a harsh word, lets just say I've done this in the past. And worst yet with my budget, I'm able to see how much $$$ I'll have remaining so then I'll start to calculate how much $$$ I can spend on something frivolous. But I've definitely reduced my spending habits dramatically over the years, but I still haven't yet curbed that habit completely.

[Radiance]

- Make a budget and learn to live with it.

- The budget should include savings, and retirement savings of at least 10% gross income.

- Utilize Roth's while your income is low.

- Get an education. But don't mortgage your future with student loans.

- Marry someone with similar visions and values as you have. Divorce is expensive to your net worth.

- Pay cash for toys. Learning to save before spending is INVALUABLE.

- Find a job with insurance and benefits, even if the initial hourly rate is low. Evaluate TOTAL compensation.

- Be willing to buy a fixer-upper house, and learn to DIY in the early years. Equity is instantly attained with some paint, some effort, and a willingness to learn.

Sandi

Two questions
1) What do you mean by "- Utilize Roth's while your income is low"
2) Fixer upper, how do you get a good one, do you use a realtor? I would be afraid of getting into one that is not worth the effort. Imagine If I fix it up and don't get a good return?

[elessar78]

Here is what I toldd my teen daughters (now 18 & 21):

1. Don't confuse a vocation/career with a hobby. Therefore DON'T major in art, music, anthropology, sociology, and other concerns that provide little or no pay and little or no opportunities. Leave those studies to the trust fund babies, or worse case MINOR in them but NEVER major in them.

Haha. I took graphic design in college and I agree with your advice. Although I'm far from destitute, I'd give another angle for this advice... the career can take the fun, what you enjoy about the activity, out of it. Some may say that it falls on me, but my career choice has left me jaded about "art".

I don't know where I stand on "following your passion" to decide on an educational path yet. I think for some people it works, but for most it doesn't. The media creates this feel-good mythology about following one's passion but I doubt most succesful people can fit into that category.

[disneysteve]

the career can take the fun, what you enjoy about the activity, out of it.

Very true. When you have to get up and do something every day of your working life, it simply isn't the same as doing it in your spare time when you have the urge or inspiration to do so. For example, I love photography and I'm pretty good at it. Over the years, I have had the occasional paying photography gig, but I never attempted to make a full-time career out of it. Something that you love and enjoy just becomes work when you have to do it.

Another example: My wife is a knitter. She makes great stuff and enjoys doing it. A few times, I've suggested that she make stuff and sell at local craft fairs. She doesn't want to do that because she feels it would take the enjoyment out of it. She does it in her down time to relax and unwind. If she knew she had a quota and deadline to meet, it wouldn't be fun and relaxing anymore.

[creditcardfree]

I definitely agree with living below your means.

It's also important to have an emergency fund for the rainy days...because it does rain!