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Being Part of the Solution: Helping Young People Learn Good Finance Practices

Students in a classroom hopefully learning! The new year is looming, and many of us are taking stock of our markets, our marketing plans and strategies for the next year. There are many great posts on Active Rain on this subject, for starters, check out these three: Jonathan Dalton, George Souto and Teresa Boardman. If you want to know how to set up a business plan email Elaine Reese; at one point she had a fantastic Business Plan organizer on Active Rain and maybe she can be convinced to add it back. :-)

I am adding some teaching to my 2007 Plan. I came up with this idea (well, it came to me I have no idea if it is original!) of helping my future clients. Those who haven't yet started to ruin their credit histories and those who are in schools (high school and college) so are presumably open to learning new ideas and facts. Consumer debt is a huge factor in why many of my potential buyers can't buy a home and potential sellers can't or won't list at market rates. My first post on this issue still weighs on my brain - I have been trying to come up with a way to be a part of the solution.

I'm going to schedule free seminars/lectures at the local community colleges and area high schools. I'd like to show them how saving money, keeping their debt low, can help them buy property and start saving for their futures. I still believe real estate is a much sounder investment than stocks. Maybe if they had the opportunity to hear from someone who is on the front lines of this issue (me) it can hit home. Dunno. But I want to try.

I've already made a list of contacts at schools (people I know from teaching and past clients) at High Schools. And three local Community Colleges. I could do this once a month, take my Finance Manager with me when he is available. And have resources available to hand out to them.

Do you think this is a good idea? Any 'refining' or 'retooling' ideas you can suggest? I'm thinking this is one of the few ways I can approach the younger audience and try to further demonstrate why they will LOVE saving rather than going into debt. LOL ok I am making myself laugh on that last comment. Yeah, I used to teach High School students so I know this is an uphill battle. I do know how to make it fun. Add rock music and self deprecation (I can see my Finance Manager rolling his eyes at me now).

Some things to touch on in these seminars: Credit card companies court you - should you go steady with them? ; buying a car, school loans, how to think about the best approach to handle future costs. A five year plan to buying a home. Other cause and effect issues. Any other ideas? Do you think I'm on the right path ?

Peace Out - 3C

Posted by Carole Cohen Realtor®, ePRO on 12/26/2006 01:11 PM

Comments (81)

community involvement, teaching, marketing

81 Comments on Being Part of the Solution: Helping Young People Learn Good Finance Practices

DEC

2006

Hi Carole,

I think this is a great idea! We did a financial literacy seminar for college students and the community in October and I'm looking forward to doing a few of them in 2007 as well!

Scott

I'm so glad you linked this; yes, one student at a time! Thanks Scott!

Carole:

I'm going to post A Realtor's Guide to The Ten Questions to ask the Oddball Lender tonight. (at your direction)

Brian, you are the best! I can't wait to read it. :-)

What a fabulous idea! Be sure to include some internet resources for them since that generation spends lots of time online. And as a resource for preparing for your classes - Bankrate which is a site I use for some blog ideas has some cool stuff!

Hi Carole,

I think this is a great approach! Especially for the students that are getting ready to go to college. I have seen several parents helping their kids purchase a home. I think it would be great to teach young adults the importance of good credit and homeownership. Love your idea; that is what I call commitment Carole!

What a great site and suggestion Linda. I read through one of the posts and the links and some sound advice. I take your website list idea to heart thank you!

Blanca: Thanks for the compliment. In a way I see it as a necessity so we can have future clients!

Brian always post after my bedtime. :-( But I will look forward to it tomorrow.

Carole...What a great idea and so timely as more buyers will be able to afford housing in this market. I think it will be awesome!!!!

Moni

Carole, this is spurring some thoughts of my own. What a great way to have an impact.

You are so right. Teaching children sound financial practice is not easy. I many cases we have to face our own weaknesses. A year ago our son and daughter started working. When they come home we have them put half of their earnings into their bank account. They can spend half odf what is left and keep the rest at home for emergencies. We also given them an allowance for what they can spend on clothes. Anything above the budgeted amount comes out of their pocket.

AS a result each has over $2000 in the bank and they haven't wanted for anything. It isn't easy, but it is our job as parents.

Carole - great idea. I think there are lots of opportunities. I wonder if somne employers would be interested in providing this as a free benefit to their employees - no cost to the budget and a nice-to-have for employees. You could then seque that into a second series on buying your home and financing, again a freebie for employees. Perhaps could be positioned as helping with retention (as a former HR person I wold see this as a good thing to be able to offer employees at no cost to the company - shows concern for EEs, etc.)

Jeff

Some agents here do the first-time-homeowner's seminars. They also team up with a lender, home inspector, insurance agent, etc. so each person has a speaking role. They 'advertise' the seminar in the local paper in the calendar section, but the paper doesn't include names. I would expect it to be a good source of new clients, but have no data on that.

Regarding the Business Plan, I don't have a copy of it. I'd have to get the AR Gods to reinstall it if they can. Don't know.

Great idea. Unfortunately, a 'financial' education is not part of our standard curriculum in today's schools. Too many kids make it to the real world without basic skills necessary to build wealth.

Linda: Yeah, Brian keeps MY hours lol Something to look forward to when you get up.

Moni: some of these students may be a few years from home buying but I just don't know. It just feels like a way to get future home buyers even if the future isn't immediate.

Jeff T: TY, and the added comments as usual are spurring more thoughts for me as well.

John: I like the way you think; I agree, if I had kids my own financial strategies would not have been a great model. I love what you are doing for them.

Jeff D: Mr. Moustache: That is a fab idea. I don't see why private companies wouldn't want to do this, especially if they are already spending time and money training people.

Elaine: For no money at all, I saved your plan :-) I will email it to you. Yeah, the 1st Time Home Buyer Seminars are popular especially with newer agents here. Inserting these debt/savings issues into them would be a great benefit.

Kaushik: When I taught, I know 'balancing a checkbook' was part of the teaching syllabus. And info on how debt rose historically blah blah blah. But you are right, I don't recall ever seeing this particular kind of info. And don't you really think buying real estate as early as you can in life is a sound investment?

Kaushik,

I think the major reason why we don't get this basic financial education is because the lending industry makes millions of dollars from our lack of knowledge. As a credit card company would you lobby for more financial education in the class rooms? Especially when they know that during the Christmas buying season, Visa cards alone are used an average of 5,340 times every minute in the United States. How much money are they going to make this season alone? I think Carole's approach will have a great impact in her community as she develops this program. By teaching and investing her time on this new venture, I anticipate she will get all of their business. Thank you Carole for having the enthusiasm to make a difference!

Carole.... this is a bad idea, because I didn't think about it first. AWESOME baby..... as Dick Vitale would say... and for you non college basketball fans.... he now does broadcasts for major hoops games.

But overall.... someone else mentioned adding things about the internet.... but again, this is a great idea..

I have a few more right now.... thinking and I will post later... but this is a good one.

I think this is a great idea as well. Education is not only a great way to positively influence our culture but it will establish a big arena of trust for your clients, present/past/& Future!

Blanca: I think financial responsibiiity is going to take more than my effort - I think like Scott Gromley says on his post about it (see link above) one student at a time. We are also all looking for ways to brand ourselves. I'm thinking this may cover a combo task (LOL) of community involvement and branding at the same time.

Jeff B: Scott has been doing this to colleges since last year so I can't take credit for it either lol. Which is what i suspected. Dick Vitale sure knows his business doesn't he. And you could still do this in your market Jeff.

Jason: I couldn't have said it better myself. And isn't Active Rain the bomb for allowing us to strategize together. I swear this is my number one reason for loving this place. Well, and all of you of course :-)

I MUST make a comment on this. I can just "feel" your excitement generating in anticipation of being part of the solution. Carole, i salute you on this in advance and know it will be successful because it's from the heart! Education to the youth in the areas of financing is a dire need - heading them off this way is like preventative maintenance. I pray you will get the support, knowledge, and have the strength to add with your courage to carry this off! This has blessed me, and has helped ignite a spark i have for a few upcoming projects. Thanks for sharing!

Hi Carole, this may be something that human resource departments would be interested in offering to their employees as well. Sounds like a great goal for 2007. Go for it!!

Diane: I love reading your posts, your enthusiasm is catchy lol. This kind of thing could help the public see us as the professionals we are as well.

Bryant, terrific idea about Human Resources. Thanks!

Carole, I have been doing first time homebuyer seminars every first Thursday of the month. This seems like it would be great addition to what I am already doing. Getting to the younger generation, especially those in college, before they start to make mistakes with their credit and spending habits is a great place to start.

Carol,

This is a great topic that you started and the comments are wonderful.

Not only are you planting the seeds for the next generation of homebuyers, but I'm sure you are having an effect on the older folks who are around, from faculty members toparents.

Good luck in 2007.

Have a Blessed day,

John Occhi, Hemet Realtor

George, hello: you would be a great teaching resource for the younger crowd. Thanks!

John: thanks and good luck to you in 2007 as well. It will be interesting to see what kind of input the class instructors have when we are there!

Carole, so you think they will listen to old folk like me.....LOL

LOL I'm in a higher age bracket than you my friend lolol. I guess we will find out. Just take your young attitude self there and see what happens!

Carole...Bryant did say human resources which are great. I know from the lending side of things, it's not that easy. Many are already set up with a specific lender. So now, it becomes a "being at the right place at the right time" type of thingy. As for realtors....I wouldn't know. Many do have their relo companies though. But it's not to say that you can get some business this way.

Jeff, some companies are small enough not to use relo services automatically; plus, even if our company is signed up as the official relo contact, seminars will not affect that. It's worth a try.

I agree... I wasn't trying to be negative....

Hi Carole

I think the seminar idea is a great one, I too am making that part of my plan for 2007. Best of luck with that

Phylis pafumi

Carole, This is a great idea! One great topic for the high school/college age crowd is to warn them about the onslaught of "pre-approved" credit card offers they will begin receiving upon registering for college. These offers are very, very enticing to someone just coming of age. And they can cause lots and lots of trouble if not handled properly...

If you really want to work with the younger folks be sure that you know how to send and recieve text messages from your phone. No kidding this is a must. As for the credit counceling you need to get them before they put their college tuition on their credt card.

No worries Jeff didn't even take it that way!

Phyllis: Good luck to you as well. Much sucess in 2007!

Don: Yeah, I was thinking of that when I wrote this; glad you brought it up. From what I am told, this can even start in High School (though I don't know if that means they have to wait till they are 18?) Incredible

Teresa: You snuck in hi. I even disabled the text message feature on my phone. I'll have to rely on a good knowledge of current music to help me muddle through. Do they really put it on their credit cards?

Hi Carole,

You've been busy blogging away. Great idea. Here is a good resource suzeorman.com She is my financial guru. She has a book Young Fabulous and Broke.

Maybe it will be the Suze and Carole show.....wait...no....It will be the Carole and Suze show! And it started right here folks. And I can say I made a comment (or two) on the blog that started it all.

Hi MFAB Mitchell: Suze Orman is someone I miss from not having cable anymore. I'll check out that link thanks! I should read that book before starting on this adventure. Great book title no?

Linda LOLOL The autograph line starts at 9pm :-) I would have to tell Suze I had a prior commitment: managing your campaign

OK, I checked out Suze's site; she even has a Young, Fabulous and Broke section, you can sign up and presumably get a plan or some assistance. (I didn't sign up, I meet two of the qualifications but not the third lol) BUT any of you who are thinking about now utilizing this idea, this site would be a good tool to inform students about.

Carole, this is probably the most necessary public teaching needed in all of real estate. I have given several people in-depth outlines on how to check, correct and better their credit reports and scores and I wonder if it doesn't just zing right past people when I do - like somehow they don't believe how big an issue it is...until they get told NO by their lender or mortgage broker, or they walk away from a $900,000 closing with nothing to show for selling their place, which as you noted on my blog a few minutes ago, is just plain sad.

Carole- So nice to see you on the dashboard! I think this is one of the best ideas that I have heard in a long time. Kids are NOT taught financial intelligence or responsibility in school - or at home for the most part. Breaking the cycle of American Debt is SO NEEDED. What you are planning on doing is AWESOME... You go Girl!

Gabriel: another common issue for me this past year has been people wanting to sell their homes after only owning it a year or two and expecting a listing price much higher than possible. Wonder if an early financial education can help with some of this. You wrote a great post!

Mariana: thank you! I still feel like Scott Gromley on his post about this in October, one student listening would be a plus. It's a deep issue and modeling at home doesn't necessarily reflect fiscal responsibility - and this is across all income groups. Anyway, thanks again.

Carole great idea go for it. I know you will be very succesful at it. Especially, if no one else in your marketplace is doing it. You Maverick You. LOL

Thanks Jay

Jay: we will see if I'm a maverick or not! I'll keep you posted lol. And thanks!

Carole - I love the idea - what a great way to give back to the community and with a younger audience. I know the local community colleges and even high schools would welcome you with open arms. Keep us posted on how it goes, I would love to know.

Carole,

Like you, every day I deal with sellers who can't sell because they did not really understand what using that whole equity line would do to them. I hate hearing from people a few years after they have bought when they tell me "I can't make these payments." Most kids NEVER hear the financial things they need to. We spend more time teaching them the rules of football. Duh! Its a GREAT idea.

Carole ~ your idea is excellent! Kids aren't taught to balance a check book much less handle debt in school. It should be part of the process begining before they start work, not after.

I seem to recall Colorado had a couse that they took to the High Schools at one time throught the Association of Realtors. I don't know if they still do it.

Good luck, I'm impressed with your spunk!

Carole,

I think it is an excellent idea. As you do the classes, I would try to bring in different guests that can help aid the students to get into their first home. A financial planner to assist with the savings of down payments. A mortgage professional to explain how the mortgage works and the different types of mortgages. A RE attorney to address the legal impacts of owning a home. Etc, Etc, Etc.

I could swear I already typed replies - maybe I forgot to type the fruit :-)

Ines: Thank you, and I will certainly keep everyone updated; there are others who (judging by their comments) have decided to do this too; we can all update; this is why I love AR.

Mo: yeah, keep football but keep the Econ classes too. Sometimes that is why I like the big City schools; lots of students and a good variety of classes. As for the parents....that's a tougher nut to crack lol

Kristal: great idea by the Co R Assn, I think that's a great initiative. And thanks!

Jason: Yes I agree; I might learn a thing or two myself! I could see you doing this too.

Carole, this is a great cause. So many young people leave school and don't even know how to write a check. Then when they get to college they are tempted by the credit card offers and end up in serious debt. I think a class on personal finance should be mandatory. I know from personal experience if I did not take the time to teach my children how to be responsible with money they too would be debt. Best wishes with the class

DEC

2006

Jennifer: I was on Eileen Landau's post and Blanca was commenting; I'm going to quote her here because she read an economic report:

You probably saw this from this weeks economic update. "Americans' personal savings rate -- savings as a percentage of after-tax income -- dipped to a negative 1% in November, the worst showing since August"

Now sometimes that can't be helped, due to the job market here in Cleveland as one example. But it is pretty sobering.

Caron, hello: I remember being in High School, one of my Social Studies Teachers started a stock club (or maybe it was part of the Jay cees, I can't remember lol). Anyway, we bought tiny amounts of Diamond Shamrock Stock and then followed the stock's course through the year and learned a bit about the stock market. It was fun.

Carole,

You can lie on the Suze Orman website. So you meet two qualifications, Young and Fabulous she doesn't have to know you are RICH!! Just say you are broke. lol

Carole - We just started listening to the book written by Donald Trump and Robert Kiyosaki - "Why we want you to be Rich" - very interesting through the first 5 chapters!

Mitchell, MFAB: :-) maybe I will go in undercover

Carole,

Thanks for the post. I commend you on your efforts to educate, inform and inspire. I would also like to add the church as a venue for your educational forums. It is something that has worked well for me.

Suzanne, maybe instead The Donald can just adopt me

William: churches have historically been good about allowing their meeting rooms to be used for outside meetings and seminars so it's a possibility. I'm going to start out though by just focusing on classrooms. And will take it from there.

Carole,

It would be interesting to see her plan. Although she usually advises against buying real estate until you're totally out of debt have a savings enough for a downpayment and a cushion for emergencies.

Hi Mitchell, we could both go in Y, F, stealth mode and compare plans - I'm only partially kidding lol

Carole - AWESOME AWESOME AWESOME topic!! I wasn't taught much about money skills while growing up, and went to the school of HARD-KNOCKS for what I know now. I would have loved to have learned money managing skills at a much younger age. I applaud you for your efforts on this subject!!

Ann

Excellent ideas, Carole! One of the things our public education system seems to miss out on is the importance of teaching sound financial principles. Kids today don't understand the value of a hard-earned dollar, or delaying momentary gratification in light of saving for some long term goal.

Ann and Rich: Thank you both, the school of hard knocks is how I learned as well Ann. And Rich, I have been pleasantly surprised at a few of my younger clients who have actually saved up money for their first home. I guess the surprise comes in because it doesn't happen very often. But oddly enough, I've only noticed it with young people. 'Boomers' tend to be spenders not savers?

Carole,

What a thoughtful idea! I haven't read all of the comments because I wanted to be sure that I shared with you my first experience with credit cards (which got me into a load of debt). You see, when I was 18 I got my first store credit card...I remember feeling so empowered --- they had given me CREDIT for being able to pay my bills. Now that might not seem to be a problem but I really didn't understand the concept of credit but I sure did feel like they had given me CREDIT for being a worthwhile human being... kind of play on words. Well, long story short...by the time I got married I brought with me $10K worth of debt. Funny, even to this day, I always seem to be $10K short for most of what I want/need.

If you can get the youngsters to understand what they're being given CREDIT for...it might help them! Good luck.

Joanne I had no debt until later (the 90s) but I hear you completely! Did you know that when people are leaving the courthouse (after their bankruptcy hearings) people from places like Sears etc are in the hallway following them and asking if they want credit! It's a mess. Thank you for sharing your story!

I would have benefited from that type of class Carole. I hope you do it gf!!!

Hi Moni thanks! How are you. I spoke to the Consumer Counselor in our Company today and she is going to get some information for me on one of the Community Colleges. So it's a start!

Ok I have another question. I have been browsing the Suze Orman site. The Youn, Fabulous and Broke 'stuff' is really pretty cool, but. You have to buy the book first before you can register. It got me thinking. Should I buy a book (13.50 I think, so nominal price) and raffle it off when I do these seminars? You need the book, it has a code in it and then the YFB person can use that code to register for an online, ongoing consultation process. Is this a good idea or is it just dorky?

Hi Carole,

I have been thinking that your idea could be the next big thing that could help define Active Rain's mission. The internet is a medium used by up and coming generations as their primary source of information to gain knowledge. We could combine our expertise and resources to develop a program offered by members of AR in all 50 states. I believe we could create valuable information to be taught around the country. What do you think, is this something people would be interested in putting together?

C cubed:

You were a high school teacher in another life, right? Forgive my obsession with "franchising" every noble idea but couldn't you develop a lesson plan module, write a textbook, and sell this?

DEC

2006

Ok so the book idea must be dorky, no comments on it lmao. Blanca: First it has to be put into practice and then let's see what happens after that. As a former educator I know that theory is great but until you see the practical application, you don't have a sure idea of what the focus should be and what will make the biggest impact. I like the way you think though!

Which leads me to Mr. Brady: same applies there too no? I think a textbook on this issue needs to focus heavily on the financial end (at least that is my initial thought). A module might be more practical. I would need financial expertise of which I have very little! But I certainly could make some Rain to get some I betcha - what say you? LOL

Something's gotta pay my bingo debts and shuffleboard entry fees in my retirement...I'm game

I love this idea!

Keep us posted Carole!

Carole and Brian - Just make sure you save enough time for me. We have a campaign to run this year.

Linda Davis

Linda, plenty of time; we need to start on podcasts every month; I am ready to send the advance team when you give the word :-)

DEC

2006

Now that's a candidate I can support. Linda, you'll understand that posing for a picture with a Republican who graduated Villanova won't necessarily make the CT locals swoon so I'll help from afar.

DEC

2006

Carole,

Start the program, then travel around and teach it all across the US. You have a referral network here! You can be famous. Set it up and franchise it. Teaching was your thing and obviously still is one of them. You can make lots of money and buy that baseball team you are yearning for:)

Brian I am tickled that you guys don't mind a non CRW campaign manager; pretty progressive of you two!

Karen I like the franchise part..... and Happy Birthday!

JAN

2007

I just had to come and check your blog out. Sorry I didn't find you sooner :)

What a noble idea, I hope it goes well for you.

A great way to GIVE BACK

JAN

2007

Carole, Your question: Do you think I'm on the right path?

This is about as important as breathing! So glad that everyone here sees what a wonderful goal you have.

You are taking something that you love to do, teaching, and using it to make a real difference in the future of young adults.

Thanks to Moo for not letting me miss this post!

www.homerome.com

Baltimore,Md

Jessica: Thank you and I will head over to read your post.

Margaret: I will have to thank Moo as well! I will let you know how many opportunities I get to do this - I have already talked with someone today who seems receptive lol.

JAN

2007

Hi Carole.. I figured since no one want to comment on your blog, I should write something.. hee heee! I'm kidding, I kid you, i kid. great topic, but even better, great big heart. You rock Carole.. ya hear me!?! YOU ROCK!!

Nick you made me cry LOL That's a good thing, so now here is why: I was ON YOUR POST (now how often have we read each others posts) and you commented and I got an email. I'm adding you to my associates list the gods told me to do it LOL. Seriously though, thank you,

Hey Carole.. you are popping up in my email from different blogs? what is going on?!?! hee heee btw, you dont know it, but I have been lurking on your post for some time.. hhmm so what you are saying is that you dont read MY posts.. hee heeee no worries. I still love ya! I bet I can add you first!

Ive lurked but not really commented on your wonderfully written posts. Sometimes when someone (you) is so good at writing, I find it hard to say anything! And HA HA I added you first :-)

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