Launching Financial Grownups

Launching Financial Grownups
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Learn how to give the young adults in your life the knowledge, confidence, and motivation to make adult money decisions, and create their own strong financial foundation and independence, so you can all live richer lives. In Launching Financial Grownups , popular personal finance expert and Certified Financial Planner Bobbi Rebell gets candid about the very real-life challenges of getting young adults to choose to be financial grownups and develop their own financial foundation and security. She shares her own personal setbacks and solutions (both from her own past, and as a parent), and walks readers through the ups and downs of financial adulting milestones. Rebell has put together a practical and specific adulting launch plan for parents of young adults along with tips on how to open money discussions, the questions to ask your children, the most effective listening strategies, when to step in to stop them from making mistakes, and when to let them learn from their mistakes. Launching Financial Grownups provides the tools to help your teen or young adults navigate the challenges of adulthood including debt, credit cards, peer pressure that leads to bad money decisions, negotiations, how to manage their own household, different investing opportunities, insurance needs, charitable giving, the legal documents they need to have in place in case of an emergency, what they need to know about your finances and even starting to think about their retirement planning. All this while also addressing recent demographic trends driven by the pandemic including young adults moving back into their childhood homes, and becoming financially dependent, after having been independent. Launching Financial Grownups offers: Solutions for parents who want to avoid ‘cutting off’ their kids at a seemingly arbitrary age or life milestone and are looking for more supportive solutions to get their young adults to be well adjusted financial grownups. Strategies for parents to protect their own financial well-being and retirement resources. Advice from top parenting and money experts including “How to Raise an Adult” author Julie Lythcott-Haims, “The Price You Pay for College” author Ron Lieber, “Grown and Flown” co-author Mary Dell Harrington, Tori Dunlap of “Her First 100K”, “How to be a Happier Parent” author KJ Dell’Antonia, Tonya Rapley of My Fab Finance and Jean Chatzky, author and CEO of HerMoney MediaEssential for the parents, grandparents, aunts, uncles, friends and everyone who is vested in the financial success and independence of young adults, Launching Financial Grownups is a must-have financial resource for long-overdue and timeless advice in an engaging and supportive package.

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Bobbi Rebell. Launching Financial Grownups

Table of Contents

Guide

Pages

Launching Financial Grownups. Live Your Richest Life by Helping Your (Almost) Adult Kids Become Everyday Money Smart

Foreword

Preface

Introduction

Notes

CHAPTER 1 Orientation

The COVID-19 Boomerang

Stepping Up as Stakeholders

It's Not Your Imagination: Things Have Changed

The Xbox Doesn't Take Cash

Incentives Matter

The Big Picture

Review

Note

CHAPTER 2 The Family Ecosystem

The Grownup Mindset

The Benefits of a Strategic Boost

Review

Notes

CHAPTER 3 Blind Spots

Stop Blaming the Kids for Your Money Mess

Student Parent Loans

Look in the Mirror

Doing the Work

Getting Real about Our Blind Spots

Be Their Coach, not Their Teammate

Review

Notes

CHAPTER 4 D Is for Debt

Priceless Education Is Expensive

College Financial Aid: Make It about Them

Make Sure They Are Doing the Math (Have a Budget)

Don't Let Debt Be Their Dream Crusher

Paying Down Debt

Major Decisions

College Alternatives

Review

Notes

CHAPTER 5 Career Foundations

Focus on Your Own Listening Skills

Negotiation Skills Are Nonnegotiable

Life Is Tough Enough – Make the Introductions (If You Can)

Leveraging Skills

Do the Math and Do the Budgets

Living Their Best Life – Not Yours

Review

CHAPTER 6 Homeroom

Let the Boomerang Begin

Rules + Expectations = Launch

There Has to Be a Timeline

Review

CHAPTER 7 (Lifestyle) Inflation

Early Adulting with Money

Adulting Milestones Are Expensive

When and How to Step In

Review

Notes

CHAPTER 8 Exit Strategy: Getting Your Kids to Pay Their Own Bills

Mixed Messages

To Subsidize or Not to Subsidize?

Credit Cards

Discretionary, Entertainment, Dining Out

Health Insurance

Phone Plans

Car and Transportation-Related Costs

Get Everyone Onboard

Review

Note

CHAPTER 9 Paycheck 101

They Got Paid! Helping Your Child Understand Their First Paycheck

Employee Identifying Information

Pay Period

Gross Wages

YTD Gross Wages

Net Pay

Pretax Deductions

After-Tax Deductions

The Self-Employed Child

Taxes

Retirement Plans

Business-Related Deductions

Review

CHAPTER 10 Jobs with Benefits

Health Coverage

Terms to Know

Savings Plans

Plan Types

Dental Coverage

Vision Insurance

Life Insurance

Disability Insurance

Mental Health Resources

Health and Wellness Perks

Commuter Benefits

Legal Services

Paid Time Off

Education and Career Development

Student Debt Repayment

Coaching

Emergency Childcare

Product Discounts

Donation Matching

Pet Insurance

Free Premium Event Tickets

Retirement

401(k)

Traditional vs. Roth

The DIY Benefits Plan

Work Culture: Best Behavior and Making Good Choices

You Are Not the Boss of You at Work

Showing Up Really Is Half the Battle

Dress the Part

Review

Notes

CHAPTER 11 Grownup Investing

When and Exactly How?

Brace Yourself

Start with Goals

Short-Term Goals

Medium-Term Goals

Long-Term Goals

Choosing the Right Buckets

Savings and Money Market Accounts

Certificates of Deposit (CDs)

Bonds

Stocks

Dividends

Mutual Funds

Exchange Traded Funds (ETFs)

Non-Fungible Tokens, Cryptocurrencies, Art, Real Estate, and Other Investments

Who's Holding the Money?

Full-Service Brokerages and Money Managers

Discount Brokerages

Robo-Advisors

Free Trading Apps

Review

CHAPTER 12 Grownup Home Economics

The Cost of Adulting

Renting

Owning a Home

Creating a (Paper) Trail

Home Maintenance

Pet Projects

Medical Care

Ongoing Expenses

Insurance

Living Their Best Life

Review

Note

CHAPTER 13 Generosity

Helping Your Child Find Their Causes

Religious Gifts

Corporate Matching Donation Programs

When Their Friends Ask

Don't Forget the Tax Deduction

Review

CHAPTER 14 Driver's Ed

Who Pays for What?

Getting Ready for the Transaction

The Case for Owning

The Case for Leasing

Car Power

Insurance

Other Factors to Consider

Are You Ready to Let Them Be Drivers?

Review

CHAPTER 15 Cultural Studies

Review

CHAPTER 16 Til Death Do Us Part

This Is Awkward

You Don't Have to Bare All

No Lottery Winners

Extenuating Circumstances

The Basics of Getting It Done

Advance Directives

Insurance

Wills and Trusts

A Note about Technology and Passwords

The Kids Need a Plan, Too

Paying for It

Review

CHAPTER 17 Stepping Back: A Parental Pep Talk

Celebrate Wins

What's Your Financial Grownup Story?

Cherish the Memories

Review

Epilogue My Advice for Financial Grownups By Ashley Jessica Kaufman. Money Tips for Young Adults

Compare Prices Across Stores

Split Up Costs with Friends

Consider the Long Term

Discounts

Maximize Credit Card Offers and Join Loyalty Programs

Buy Refurbished

Acknowledgments

About the Author

Index

WILEY END USER LICENSE AGREEMENT

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BOBBI REBELL

Bobbi, who was a global business news anchor at Thomson Reuters at the time, asked if I would do an interview with her about my latest project. After 15 years, I had updated my #1 New York Times bestselling book The Automatic Millionaire, and Bobbi wanted to amplify the critical messages this little book has taught millions. Over our talk together I highlighted the simple, yet life-changing power of paying yourself first, saving money automatically, and the importance of buying a home. Once again, we found ourselves very much in agreement as I explained my belief that there are really two primary escalators to building wealth in America – investing in stocks and in real estate – and the sooner you start investing, the easier everything in life is. Bobbi had bought her first home at age 23 and had been investing since she was a teen. But her dad worked on Wall Street, and she had a very proactive grandfather who pushed her to learn about investing at a young age. She knew she was more the exception than the rule. She also realized she had learned about investing from family, not from school.

.....

We were not alone. I started to hear stories of kids leaving school to come home and help save their parents’ businesses. Many stepped up to help out with bills. Family finances tend to become a lot more transparent in a crisis. I have been so impressed with all the young adults who rose to the challenge of giving back to their parents when they needed them most.

That is the silver lining in this unique chapter of our lives. The time families are spending together has created a season of our family evolution where we have had few distractions and many opportunities to better understand each other. Families have bonded in a common mission: to protect the family financial ecosystem. It's one thing to “get financially naked” with your partner; it's another to do it with your kids no matter their age.

.....

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