Leadership skills are some of the most important soft skills for young people. This is because every young person in this day and age needs to be able to handle growing up and the responsibilities that come with it, for themselves. This can only be done if the young people are taught, from a very young age, about the value of good leadership, and what it can bring them later in life. However, that can only happen by first answering the question of What is Leadership?

What is Leadership: A Definitive Answer

At its core, leadership is the ability to influence social change, and maximize the efforts of other people to reach a goal that you all have in common.

A young person may not be able to understand this at once. After all, children are rarely put into positions where they have to take the efforts of other children, and mold them into something they are planning on, such as a class project.

Sure, a child may get to be the lead on a project, but even then there will be one or two leaders, and several followers. However, even then, this definition applies, because even if the child is not selected to be a leader, they can possess the quality of a leader which they can demonstrate, in order to be chosen as the leader in the next project.

A Natural Capacity to Lead

Kids naturally have the capacity to lead. They are not limited by ego, time, and/or place. It is the adults who put limitations on them. But this is changing. And it’s creating a ripple effect in the social sphere.

What Young People Can Do to Become Bona Fide Future Leaders

Following is what a young person can do, or an adult can help them do, in order to develop the spirit of leadership.

Mobilize several peers to do something good

Help create a committee to fund building water facilities and/or wells in Africa or some other developing nation. Or they can tutor kids in science and math. These are all good ideas, but young people need to come up with their own. Several kids are already doing these things in early school, up through college and even their early 20s. Whatever they do in this vein will get them noticed, and they will generate respect for it. Plus, they’ll learn valuable lessons from it.

Get help from a senior mentor

A mentor is a great way to develop knowledge in the world. Kids can find someone smarter than they are, and ask them to be their personal coach and later on, a professional adviser. They will need to reach out for this. You yourself can be a mentor, if you think an external individual is unattainable or unapproachable. However, with all the experienced people who are generally around students and teens, a positive reply is certain. Next, they can lean on their mentors. Mirror their good behavior and successes in life. Ask them to share what made them successful.

Don’t stop dreaming and develop your vision

Leaders are usually constant dreamers. They imagine things how they would like them to be, and since they’re decisive, they often follow their dreams. When a young person is in their teens, they have the perfect time to dream a lot. But then, they need to be able to act on those dreams. They also need to have the strength to fail, since dreams are not always the best business strategies. But that’s the fun of it trying.

When a person is in their teens, they can take more risk. They can stick their neck out further, since their ego is not always ahead of them, and other people’s expectations of them may be lower. Becoming a leader at an earlier age makes for more productive years, during which they can take youthful energy and make something good out of it.

Become financially responsible

If there’s one thing that’ll cement a young person as a leader of the future, it’s financial responsibility. Being good with money and finances is a skill that every teenager and even preteen should have. They need to know how to spend smarter.

For example, a young person in search of new clothes would be tempted to run into a store and splurge all they have. But, they need to be taught to instead take out a store credit card; let’s say, a Gap credit card, and spend only as much as they need. They can then use the reward points they have accumulated, to buy more clothing at a later date.

Final Word

Remember, the future is only as bright as the young people of the present. If our generation can teach the future generations to be great leaders, then we may very well benefit tremendously, alongside our bright young leaders of the future. They will have essential skills such as how to start investing and how to pay off student loans quicker, and we’ll have a financially stable future.

The student loan crisis is a serious socio-economic issue in the US. As of 2019, the total accumulated debt has crossed the $1.5 trillion mark. The rising cost of tuition, along with the changing requirements for the modern workforce (that are driving more students to attend college) are responsible for the rise in the national student loan debt. At times like these, it’s crucial that you teach your child how to pay off student loans, whether they’re in high school, exploring career options, or at college, already knee-deep in debt.

At school, children aren’t taught some of the most basic aspects of modern life, one of which includes managing personal finances. As their parent, guardian, or mentor, it’s up to you to teach them how to handle this unfortunate financial pickle.

Regardless of how old your child is, here are some tried-and-tested ways to teach them how to pay off student loans.

1. Teach Them About Loans

First and foremost, you have to start by teaching them about loans, the different types, how they work, and their alternatives, if they don’t know about them already.

As a parent, you may be tempted to look after all of the paperwork for your child.

However, ideally, you must involve them in the entire process, right from the beginning.

Start by telling them about the different types of student loans i.e. Federal, Private, and Refinance.

Tell them how they differ, their pros and cons, and how to opt for the best option based on your financial circumstances.

For example, federal loans are more flexible, whereas the lending limits with private loans are higher.

Discuss and evaluate all of the options with your financial advisor before you make a decision, while involving your child.

That way, your child would have a far better understanding of how everything works, and plan ahead to pay off student loans comfortably.

2. Help Them Pay Off Student Loans with Savings

The old adage, “Teach a man how to fish and you feed him for life” stands true in this case.

The art of saving is one thing which even some adults struggle with. Chances are, you’re probably not very good at it, either.

In any case, the best way to help your child pay off student loans is to teach them how to save.

Remember, savings is a lot more than putting in a few hundred dollars into a savings account.

It’s about discipline.

The best way to teach your child about self-discipline and financial freedom is to give them books.

Here are some suggestions (some of these might even help you out):

• The Kids’ Money Book: Earning, Saving, Spending, Investing, Donating (by Jamie Kyle McGillian)
• Make Your Kid A Money Genius (Even If You’re Not) (by Beth Kobliner)
• Finance 101 for Kids: Money Lessons Children Cannot Afford to Miss (by Walter Andal)
• Rich Dad Poor Dad for Teens: The Secrets about Money – That You Don’t Learn in School! (by Robert T. Kiyosaki)

Remember, the earlier they start saving, the more likely they are to pay off their debt with ease.

3. Teach Them How to Invest

Relying on a job, whether full-time or part-time, and your savings account, isn’t enough.

Repaying student loans can really take its toll on your monthly budget. Both you, and your child, need additional income streams.

The best way to do that is to teach your child how to start investing.

There are different ways you can go about doing that, including, teaching them the basics yourself, enrolling them in a course, and/or buying them special books that are targeted younger people.

Open up a custodial brokerage account for them and trust them to start investing.

4. Prepare Them to Take on the Real World

By “real world,” we mean the modern day hustle.

Children are accustomed to having their expenses paid for by their parents. Because of this, when they do get the taste of the real world, where they have to pay for their own bills, work part-time jobs, and manage their finances, it’s all too overwhelming.

To avoid this, teach your child what it’s like to work. Motivate them to volunteer, or get internships.

Even better, motivate them to explore the path of entrepreneurship.

All of this, would put them on the path of financial stability, which would ultimately help them pay off their debt.

Benefits of Teaching Your Kid How to Pay Off Student Loans

By teaching your child how to pay off student loans, you’d:

• Ensure that they have a financially-sound future.
• Help them become financially independent.
• Help them save enough money for other, more important things, such as retirement.

Needless to say, sooner or later, your child will thank you for it.

To Conclude

With the student debt crisis going out of hand, it’s more important than ever to teach your child how to pay off their student loans.

Children copy whatever we do. While some lessons can be taught to them with just your day-to-day actions, others require you to gently nudge them in the right direction, and share your wisdom. Learning how to start investing falls in the latter category.

The education system, up until high school, does a good job at strengthening the core foundations needed to help children take on the real world. However, certain areas could definitely do with some improvements. For example, kids are never taught how to invest their money. This is shocking, considering that investment is one of the best ways to scale your fortunes, starting from the late teenage years.

As a result, years later, many people don’t know how to approach investments, either because they’re scared, or because they’re simply comfortable with their normal, steady paychecks. Again, at the end of the day, it’s not their fault.

To avoid having your children fall into the same trap, and to help them take full advantage of investing, it’s up to you to pique their interest and teach them this skill.

Here are 4 ways you can turn your children into savvy investors:

1. Start Early in Teaching Them How to Start Investing

Children are very impressionable, especially when they’re under the age of 10.

At this stage of their lives, they’ll believe and do whatever you tell them to.

While it’s never too late to learn how to start investing, the earlier you begin, the better.

Considering that, on top of teaching them about things related to their mandatory curriculum, go out of your way a little to teach them about how investment works.

You don’t have to go all in and blast them with all of the terminologies right off the bat.

Instead, start small. Start by talking about the concept of investment (while doing so, it’s important that you clarify how it’s different from saving).

With comic books and bed time stories, consider buying these finance books for children:

• Growing Money (by Gail Karlitz)
• The Young Investor: Projects and Activities for Making Your Money Grow (by Katherine Roberta Bateman)
• How to Turn $100 Into $1,000,000: Earn! Save! Invest! (by James McKenna, Jeannine Glista, and Matt Fontaine)
• Finance 101 for Kids: Money Lessons Children Cannot Afford to Miss (by Walter Andal)

Piquing the interest of children at an early stage can go a long way. Take advantage of this.

2. Give Them a Taste of Investment

Books and bedtime finance lessons aren’t enough to make children understand the importance of investing.

Once they get the basics down (i.e. how an investment works and the different types of investments there are), test whatever they’ve learned and give them a small taste of what it feels like to invest.

Here’s how you can do that:

• Make an “investment box” and ask your kids to add $1 from their allowance, into it.
• Tell them that for every dollar they add, they’ll get a return of $1 (100% return).
• At the end of the month, when they have $4 in the box, give them $8.

This monthly exercise will make them appreciate how investments work, and motivate them to learn more about them.

All you’ll have to do is to add another $4 to their monthly allowance.

3. Teach Them How to Start Investing with Stories

Children (even adults) love a good story.

Incidentally, the most financially-savvy individuals were once children who grew up learning about investing and business.

While teaching them the essentials of how to start investing, narrate your own investment stories (if you have any).

Tell them about the various major investors, such as Warren Buffet, Carl Icahn, and Mark Cuban.

4. Allow Your Children to Invest

Once you feel that your child is ready, give them a taste of the actual investment world.

You can do that by opening a custodial brokerage account for kids.

Support them financially during this journey, to a point where it doesn’t affect your budget, and trust them to make their own decisions.

Meanwhile, coach them and offer your advice whenever they need it.

Benefits of Teaching Your Kids How to Start Investing

Here are the benefits of teaching your kids the wonders of investment:

• It teaches them how to be careful with their money.
• It teaches them how to pay off student loans and even avoid student loans altogether.
• Kids who learn how to manage their finances, and know how to grow their wealth with investments, are more likely to be successful.

And that’s just scratching the surface.

Ending Note

Teaching your children about the benefits of investments can go a long way in ensuring that they have a comfortable future.

Remember – at the end of the day, no one is really too young or old to learn how to start investing.

However, the sooner one starts, the better.