Easy come, easy go. Does it seem like money flows quickly through the hands of your teenager? Would you like a high-tech, appealing way to show a teenager that saving money adds up?
The Plan Well, Retire Well: Your how-to guide website may be just the website you have been looking for! Motivate your teenager to begin a savings plan with the online calculators that let people see how they can meet goals, take advantage of compounding interest, and make their money grow.
“Here’s an example of problem that your teenager might like to try and solve using the online calculators,” says Kathy Sweedler, Extension Assistant for University of Illinois Extension. “To buy a car Greg needs to save $10,000. Greg has $250 in a savings account that earns 2.0% annual interest rate. He also has a new job and plans to save $400 each month towards his goal. How many years will it take to save $10,000? Sounds complicated, but with the online calculator, it’s very easy to do.”
The calculator can be found at the Plan Well, Retire Well website at http://www.RetireWell.uiuc.edu, under the section heading “Time Makes a Difference,” on the page “Make Time Work for You.” You can put in your own numbers to calculate a savings plan that helps meet your goals.
Teenagers face money management problems that are good practice for handling money in the future, says Kathy Sweedler, University of Illinois Extension Assistant. For example, consider this problem, “Jamie has a part-time job and makes $80 a month. Jamie would like to go with a school group to Florida, but it costs $350. Jamie has 12 months to save the money. This is what Jamie spends money on each month: food, $20; movies, $20, CDs, $30, and school and sport supplies, $10. How can Jamie adjust her spending so that she can go on the trip?”
You can use the calculator “What’s It Worth to Reduce My Spending?” under the section “Dollars from Dimes” to develop a plan so that Jamie will have the money she needs in a year. Is there something your teenager would like to have or do in the next year? Here is an opportunity to practice skills that will make a difference throughout their life.
A student worksheet is available to help guide teenagers through the website’s first two sections. The worksheet “Take Time to Save Now” is available for download on the website at http://www.RetireWell.uiuc.edu. A teacher lesson plan and a list of Illinois learning standards for the lesson also are available on the website.
The Plan Well, Retire Well website also includes information about saving money through tax-deferred savings plans, choosing investments, and forecasting retirement finances. Worksheets throughout the website allow you to input your own financial information; all information is secure and confidential. How are your retirement plans? While talking to your teenager about saving money, you may want to share some of your own saving habits and goals. Take the time to look over the Plan Well, Retire Well website to refine your financial goals and investments.
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Source: Kathy Sweedler, Extension Assistant Consumer and Family Economics
Department of Agricultural and Consumer Economics
University of Illinois
(217 265-0322)
