Five tips for parents to start the New Year right
NEW YORK (MarketWatch) — I’m a huge fan of starting a new year off right, including creating my own personal plan for the coming months. But what about those of you who are parents? What can you do to create a super future not just for you, but for your teenager?
Two-way conversations are not a slam-dunk during the teen years. Hopefully, these five moves will help you and your teen bond — and help you build your finances in 2011.
1. Set goals for grades
Remember “Big Mike” in “The Blind Side?” If he couldn’t boost his GPA from about 1.5 to over 2, he wouldn’t qualify to play football, let alone qualify for football scholarships.
Setting some achievable goals can boost a teen's confidence not to mention his or her chances for scholarships and college admissions.
“But let the child start first and then add your feedback,” said Lynn Berger, a career counselor and coach. “If your teen sets the bar too low, that’s an opportunity” to help them set it higher. “The reverse is true, too, if a goal is too ambitious.”
So let your child — not you — be the leader in setting goals. Ask them what they think they can achieve in the new year and what they need to do to get there.
2. Recruit for college savings
In my last column and on a recent appearance on “Good Morning America,” I spoke about 10 smart money moves parents can make. Watch Openshaw on "Good Morning America."
Among those tips? Recruiting the grandparents to help, and watching money grow faster through a 529 college savings account. Read more on 10 money moves to make now.
Grandparents can give up to $13,000 ($26,000 if married) per year to their grandchildren without incurring gift taxes. If they contribute to a 529 college savings plan, however, they can front-load their gifting and give up to five times that — $130,000 if married — without facing a gift tax.
If that sounds like too much, think about this: Even if each set of grandparents contributed just $500 a year each, over 18 years that can grow to cover about half the cost of a four-year education at a public university. They get the joy of giving to their grandkids now while lowering their estate taxes — and you can tuck more away for your retirement.
3. Focus the conversation at dinner
Dinner time can be valuable bonding time, if done right. Consider devoting at least one night a week to discuss topics that will help you connect to your teen. Possible themes include: goals for the coming week; the most exciting and most challenging part of the day; what do you want to be when you grow up; how to purchase that new car.
Berger echoed something I’ve seen other savvy parents and even grandparents do: devote a dinner out to one child, nothing fancy, though.
“We always focused one night a week with only one son at a time because it allowed us to focus on that person and take them out of their regular environment,” Berger said.
4. Create ‘me’ time
All students (and adults!) deserve a "time out" just for them — with no parental or school pressures. Encourage your child to take 30 minutes each day or week to do what he or she wants.
“There should be a gap between school and homework,” Berger said. “There’s no reason anyone should go from one thing to another without some transition.”
She suggests some physical exercise at the local gym or YMCA on a regular basis, which brings a host of other benefits from stress-release and focus to overall well-being.
5. Get involved
More schools are requiring community service. Parents can play a role in helping their child get involved, boost her resume and possibly even increase her chances of a scholarship.
Each year, my friends Cathi and John take their teen boys to Africa or elsewhere to build homes for those in need. It’s a hands-on experience that bonds the family and it’s become an annual ritual.
In Darien, Conn., Zach and Lindsay Domonekus, ages 8 and 11, launched their home delivery bagel service by partnering with a local bagel company. Not only are they raising cash for Haiti or their own savings accounts — depending on who you talk to — but they’re honing their real-world business skills and boosting the resume, too. In the process, they’re even bonding with Dad, the weekend chauffeur without whom their business wouldn’t be possible.
Maybe weekend trips at 4 a.m. aren’t for you, but if you follow these tips, you might find yourself in the driver’s seat of more than you imagined — and you’ll be starting your family off right in the new year.
Jennifer Openshaw, author of “The Millionaire Zone,” is chief executive of Family Financial Network and founder of SuperFutures, whose mission is to help students discover their futures and build skills to succeed. You can reach her at twitter @ jopenshaw or on Facebook.
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