News Now

Consumer
Declining home values already impacting teenagers
MADISON, Wis. (12/31/08)--The recent drop in home values has ripple effects beyond homeowners. The economic crisis also affects teenagers, according to youth educators at the Credit Union National Association. “Teenagers are already affected by the seismic ripple that flows from the plunge in home values,” says Rena Crispin, managing editor, Googolplex. And as painful as it’s been, it could get worse. Although home values nationally have dropped an average of 19% from their peak in 2000, they still haven’t reached their traditional relationship to household income, according to a USA TODAY analysis of home prices since 1950. Recent analyses from that same source indicate home prices still would have to fall another 17%. How does this affect teenagers?
* Tight job market with a lot of competition; * Scarcity of student loans and grants; * Clamped-down car loans; and * Increased cost of living.
If home values drop to their 1950s’ relationship to income (three times income), "we'll need another bailout of banks similar to what we just did," says Susan Wachter, professor of real estate at the University of Pennsylvania. Include teenagers in your serious talks about finances. They are mature enough to anticipate and solve financial problems. Let them know that home prices will affect them and provide the reasons. Here’s how you can help them survive:
* Re-visit the discussion about your student’s career path as well as a supportive part-time job while in high school. * Weigh the advantages and disadvantages of enrolling in advanced placement (AP) classes. AP classes can save hundreds because they allow students to apply test scores toward college credit. “The catch is that if the student doesn’t attain a high enough score, there will be no credit awarded,” says Bridget Widdowson, sophomore at Robert E. Cook Honors College at the Indiana University of Pennsylvania. * Encourage your high school student to take a money management class either at school or through your credit union, and get armed with sound financial information. * Help your student create a savings plan for a used car. Find out how your credit union can help. * Re-evaluate college choices and costs--consider junior colleges, work colleges and technical schools. * Research scholarship opportunities and brainstorm new solutions for paying for college. Widdowson advises you “start at fastweb.com and broaden your base with more unconventional scholarship searches.” * Consider enrolling in an apprenticeship program while in high school. Widdowson says that if the goal is to enter the job market after graduation, getting students involved in apprenticeship programs is essential.
Other Resources

RSS print
News Now LiveWire
Economic activity slowed in June, according to the #Chicago Fed's national activity index, released today #Market http://t.co/1pN6peM8my
10 hours ago
Money burns a hole in workers' pockets after payday, despite best intentions via @WSJeconomy http://t.co/A9SNiUdf9v
11 hours ago
"SAR Stats," new from #FinCEN, focuses on #bitcoin. See #NewsNow http://t.co/vS7iTwY2SW
12 hours ago
.@CFPB now accepts consumer complaints on prepaid cards, debt settlement services, credit repair services, and pawn and title loans.
13 hours ago
.@WellsFargo to process transactions in order received, not high to low http://t.co/g0jWJoegoJ
13 hours ago
150x172_Annual Report 2013Unite for Good Share your StoriesData-Breach-150x172.jpg