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Steps in Forex Trading with MetaTrader 4

17 Feb 2022

Trading Forex requires several basic steps and the use of a reliable trading platform like MetaTrader 4 (MT4).

Although you may think that learning these steps is just too daunting, it will be useful for you so you can start everything right.

Deciding How You Should Trade Forex

There is currently a lot of Forex trading taking place at banks and other financial institutions that utilize a buy and sell of currencies every day.

However, for individuals who cannot make up with these billion-dollar transactions, there are two ways for them to get involved in trading – it’s either through Forex CFDs or by trading through a broker.

Understanding Forex CFDs

In Forex CFD, you agree to pay the difference of the opening and closing amount. If you open a long position and its price increases, then you will have some profit.

However, there are also instances in which there is a drop in price, you will be on the losing side. You can trade a lot of markets in CFD and Forex is just one of those.

Understanding About Forex Trading Via a Broker

Trading Forex through a broker or a bank works similarly with CFD trading. You are also speculating on the movement of the price of the currency pair.

All of these are done without even taking ownership of the currency to yourself. If you speculate that the price of the currency will drop, you are required to go long instead of going short.

However, when you trade Forex through a broker, you won’t be having access to different markets aside from Forex.

Learning About Forex Market and How It Works

If you really want to learn how to trade currencies, one of the things that you should know about is the operation that revolves around the Forex market.

The operation here is so much different from the ones found in futures and shares.

You are not going to buy in a centralized exchange, instead, Forex is being bought and sold at banks.

This transaction can be referred to as over-the-counter. This works since the banks become market makers that offer a bid price to purchase a certain currency pair.

Opening a Trade Account

Trading Forex through CFDs requires you to open an account with a leveraged trading provider. There are brokers that allow you to open an account in minutes without strings attached.

Creating a Trading Plan

You have to create a trading plan so you can safeguard your emotions whenever the market becomes unsteady.

When it comes to decision-making, aside from trading with MT4, it is important to have the right structure that will help you in opening and closing your positions with profit in your pocket.

If possible, you may also use a forex trading strategy just to make sure that you have a steady plan that you can take a look back at if you need one.

After choosing a certain forex trading strategy, you must use it and stick to it. There are also several technical analysis tools that are available in the market that help you decide which one should be your first trade.

What Attracts Traders to CFD Trading?

11 Jan 2022

Contract for Difference (CFD) trading is a type of financial trading. This trading allows a trader or investor to take a position on a specific price of a financial asset without actually owning the underlying asset.

A contract is shared by the trader and the broker in a CFD. They are exchanging the difference between the current asset value and the asset value known at the end of the contract, whether it is indexes, shares, commodities, or currencies.

Contract for Difference Characteristics

Trading CFDs has a few distinct characteristics. Knowing these things will assist you in maximizing your market advantage.

CFDs are Derivatives

To trade CFDs, you do not need to hold the underlying asset. This implies that the trader can profit from the market without actually owning the financial item. The underlying asset in a CFD cannot be purchased, sold, or owned. The trader is given a certain number of assets with which to speculate on price movement, whether it is an increase or drop in market price.

CFDs can be Leveraged

When trading CFDs, you might acquire bigger leverage. Traders that use larger leverage tend to receive more market exposure for a smaller deposit. If you opt to trade CFDs, you have a good chance of making more money than you would with other types of trading. However, leveraged products like CFDs should be used with caution since they can operate as a double-edged sword.

Provides Access to the Financial Market Through a Single Platform

In today's financial industry, there are a plethora of brokers who offer CFD trading. This type of brokerage provides assets and products that are available on the global market. By using a trustworthy platform, trading CFDs can be available at any time of the day.

Trade Without Fees

Limit orders, dependent orders, and stop-loss orders are all available in CFD trading, just as they are in Forex trading. You would have to pay additional fees to use such services if you paid regular brokerage rates. However, no broker will require you to pay these fees or additional costs if you trade CFDs. When traders pay for spreads and additional commissions when opening or closing an ECN kind of trading account, CFD brokers make money.

No Extra Trading Day Requirements

In most financial trading, a certain amount of capital must be paid before traders may engage in day trading. There are also occasions when a trader's ability to make a certain number of trades with the capital he has deposited is limited. However, there are no such rules in CFD trading.

Day traders have no limits and can trade as many times as they want in the market. You will only need a thousand bucks to get started, and you can trade as many as you want. This is the first deposit you'll need to make in order to start an account.

Is It Easy To Manage Your Risk in CFD Trading?

1 Dec 2021

You can only call a trading plan a solid one if it includes a risk management strategy. Since CFD trading exposes you to a significant number of risks, it is just right if you can mitigate it since you can never fully eliminate it.

Without the use of a good risk management plan, you will surely not end well. You’ll have the tendency to get huge losses, even more than the amount you initially deposited.

Leverage and Margin in CFD Trading

With the use of leverage and margin traders, an active trader can take advantage of the market with a minimum deposit and have greater market exposure to help you make more money.

But as the chances to increase profit grows, you also get too exposed to losing your money.

Therefore, to succeed in CFD, you need to follow a strict risk management strategy that mainly protects your capital.

Risk Management You Should Consider

The first and the most useful tip of all, to not forget to use a risk management strategy before you enter a trade.

It is very important and it works just like what it implies. Risk management is the process of controlling, not eliminating, the overall risks in trading in order to limit the losses and keep your account from getting wiped out.

Always remember that the more risks you take, the more reward you can get, or lose more than the capital that you invested.

Therefore, implementing risk and money management rules saves your capital. Here are other things you need to consider;

Do not trade with the money that you cannot afford to lose.
Start small.
Do not over-leverage.
Determine the maximum amount that you can risk per trade.
Do not put all your eggs in one basket.
Adapt to different position sizes based on the market condition.
Develop a realistic goal.

All these risk management rules must be strictly included in your trading plan because it cites guidelines on how you should trade.

Together with risk and money management rules, a trading guide also should best describe your trading strategy.

This way, you will know how you should enter or exit a trade or when to do so. Overall, managing your positions is very important to obtain continuous success in trading.

Another thing, if you have a trading plan, you must stick to it and follow it at all times. This is a very effective way to succeed in CFD, leaving no room for feelings and confusion.

What you should do is follow your trading plan and the things that are being described in it. A trading plan strongly describes your personality as well as your trading style.

Adapting the right mindset is another key to successful and stress-free trading. You may encounter a lot of negative aspects in life while you trade. But it shouldn’t affect you.

When you have problems at home, as much as possible, before opening a position in CFD trading, you should leave it out of your mind and concentrate on how you can become a prosperous trader.

ONLINE LEARNING :Strayer University

30 Oct 2015

Learning online is different than learning in a classroom. That’s why at Strayer University, we’ve spent thousands of hours perfecting the way we teach and support our students online.

Maximum Flexibility: If you can get online, you can get to class. 24 hours a day. Seven days a week. From anywhere in the world. Simply log in and learn.

Effective Learning A landmark study* published by the U.S. Department of Education found that students who took a combination of classes online and on-campus performed better.

Personal Support Learning online doesn't mean you're learning alone. All of our students have access to our online and on-campus support and resources.

Online Learning Options

Online in Real-Time: These online classes occur at set times on evenings and weekends. Online Anytime: These classes occur completely on your time anywhere you can get online.

STRAYER University IS ACCREDITED, TRUSTED, VALUED.

You can be confident that your Strayer degree is recognized and respected by schools and companies across the country.

We are regionally accredited by the Middle States Commission on Higher Education, the same organization that accredits universities like Princeton University, Johns Hopkins University, Syracuse University, and many more. Have the confidence that your degree will be recognized and respected by schools and organizations across the country.

The Best Jobs For 2023

30 Oct 2015

If you have an aptitude for high-level math, relish the challenge of constantly changing assignments, you’re a strong communicator and you work well on a team, consider a career as an actuary, a job that involves calculating the probability and financial impact of illness and property loss, usually for a consulting firm or insurance company.

The combination of healthy compensation, job satisfaction, manageable stress levels, and robust growth land actuary in the No. 1 spot on job listing website CareerCast.com’s 2023 list of the best and worst jobs in the U.S. Next in the “best” ranking: Audiologist, a job that involves testing, diagnosing and treating hearing and balance problems.

This year all 10 of the jobs in CareerCast’s best jobs list are in a STEM field (science, technology, engineering, and mathematics) or in health care.

That’s not surprising, given the rise of big data and the expansion of health care spurred by the Affordable Care Act and the aging Baby Boom generation.

Mathematician is listed as the third-best job and statistician ranks No. 4. Then come biomedical engineer, data scientist, and dental hygienist.

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CareerCast publisher Tony Lee says the objective of the best and worst jobs lists is to help young people and career changers better focus their ambitions. “For the ninth grader who loves crunching numbers to win his fantasy baseball league, learning about the career path of an actuary or data scientist may spark a career interest that simply didn’t exist before,” he said in a statement.

Of course, the lists also generate publicity for CareerCast. Forbes has been covering them for the last five years because, like Lee, we think that it’s useful for readers to consider the challenges, stresses, and rewards of various professions. Recommended by Forbes

Also, the team that puts the lists together has the accumulated wisdom of 27 years. The project started in 1988, when two doctoral students at the University of Wisconsin, working under the direction of career book author Les Krantz, assembled the first ranking, evaluating the 200 most populous jobs in the U.S.

The lists used to appear in two different publications owned by The Wall Street Journal. Then in 2009 Lee, who had worked for those publications, including the now-defunct CareerJournal.com, started CareerCast.com as a subsidiary of Adicio, an online classified ad and career support software company, and put out the lists under its auspices. Lee and CareerCast editor Kyle Kensing write up the report.

Their team has come up with a formula that takes into account a range of considerations, from what they call emotional factors like the degree of competitiveness and the amount of public contact (both viewed as negatives), to physical demands including crawling, stooping, and bending and work conditions like toxic fumes and noise.

In addition to income and growth potential in the field, they look at what they call stress factors, like the amount of travel the job requires, deadlines, and physical risks like whether the workers’ or their colleagues’ lives are put at risk on the job.

The methodology seems sound to me though some of the measures may not resonate for all workers. For instance, extensive contact with the public is considered a negative, although many people thrive in a situation where they can interact with numerous people, as opposed to a job where they spend all day alone.

Another thing CareerCast researchers don’t do: Uniformly poll large numbers of actual workers in the 200 fields.

They gather their data from the BLS, other government sources, trade associations and private survey firms, and they spot check some of their findings with people who work in various fields.

But they don’t attempt the gargantuan task of systematically surveying hundreds of workers in each of 200 professions. The failure to do that kind of research misses the telling experience of real people.

For instance, when I reported last year that CareerCast had listed audiologist as the least stressful job in another, more subjective list it puts out, of most and least stressful jobs, I got a long, convincing comment from Allie, an audiologist who started by saying, “Maybe I need to take a Xanax, but every day I am stressed! Maybe because I am dealing with people who are missing one of their SENSES.”

She went on to describe a patient whose insurance company refused to pay for his hearing aid, a woman with vertigo who vomited all over Allie’s shirt, four screaming children with severe ear infections, and informing the parents of a one-month-old that their baby had severe hearing loss.

And that was all before lunch. It may be that Allie works in an especially hectic practice but her story makes me wonder whether an audiologist should be listed as the second “best” of 200 jobs.

Of course, the most important things to consider when choosing a career are whether your skills, aptitudes, and desires match the demands of the field.

I never got past geometry in school, I feel I have no aptitude for science or engineering, I become flustered when I have to learn how to use a dummy-proof new program on my computer or phone, and I have a profound fear of working in any field that involves bodily fluids, so I can’t imagine myself working in most of the top 10 jobs, like data scientist (No. 6) or especially software engineer (No. 8).

At a stretch I could see myself as a physical therapist but according to the American Physical Therapy Association I would have to master physiology, neuroscience and pathology, which would probably do me in. In fact I have the greatest aptitude for the No. 1 job on the “worst” jobs list, newspaper reporter. For our coverage of that list, click here.

The Worst Jobs For 2023

30 Oct 2015

My late father, a former newspaper reporter whose colorful exploits included dressing in drag to chronicle the life of a San Francisco prostitute and writing an exposé on reform school after posing as an inmate under an assumed name, discouraged me from a career in journalism.

He would have preferred I become a doctor or a lawyer. But he was also a fisherman and when pressed about my desire to follow in his footsteps, he gave me this piece of advice: “I’ll give you the same answer I give to people who ask me whether they should buy a boat. Don’t. But if you can’t be happy unless you have a boat, then you have to get one.”

I’d say the same thing to a young person today who wants to be a newspaper reporter. It may be in the No. 1 slot on job listings website CareerCast’s ranking of the worst jobs for 2023, but it can also be the most rewarding career in the world if you have the right personality.

Of course readership of ink on dead trees has plummeted and newspapers are struggling to find ways to make money online, but many papers like The New York Times and the San Francisco Chronicle have vibrant websites and they maintain large staffs, despite layoffs.

Among my friends who find their careers most rewarding is the Times’ Paris bureau chief Alissa J. Rubin, who was previously bureau chief in Baghdad and Kabul. (Read her outstanding feature on a female suicide bomber here; it won an Overseas Press Club award.)

Alissa narrowly escaped death in a helicopter crash while covering Yazidi refugees in Iraq seven months ago, but she is more dedicated than ever to her work. Alissa’s colleague Lynsey Addario is also deeply gratified by her career as a photojournalist, No. 6 on the worst jobs list.

She recently sold the screen rights to her book, It’s What I Do, to Warner Bros., which plans to make a movie starring Jennifer Lawrence and directed by Steven Spielberg.

Some of the other “worst” jobs seem more obviously awful to me, like taxi drivers, No. 8, who make just $23,100, according the CareerCast’s calculations, and face abusive, intoxicated and violent customers while battling competition from ride-sharing companies like Uber and Lyft. Corrections officers, at No. 7, work every day in jails and prisons full of unpredictably violent and mentally ill inmates.

The New York Times reports, for instance, that 40% of the population on Rikers Island suffers from mental illness. Corrections officers also reportedly engage in routine, brutal violence themselves, making for what would seem to be an utterly miserable existence. CareerCast lists their compensation as just $39,200. (I welcome comments from corrections officers, and people in any other profession on the worst jobs list, whether you agree that your job is awful or not.)

The ranking of America’s best and worst jobs started back in 1988, when two doctoral students at the University of Wisconsin, working under the direction of career book author Les Krantz, assembled the first list, ambitiously evaluating the 200 most populous jobs in the U.S. The lists used to appear in two different publications owned by The Wall Street Journal.

Then in 2009 Lee, who had worked for those publications, including the now-defunct CareerJournal.com, started CareerCast.com as a subsidiary of Adicio, an online classified ad and career support software company, and put out the lists under its auspices. Lee and CareerCast editor Kyle Kensing write up the report. Recommended by Forbes

Their team has come up with a formula that takes into account a range of considerations, from what they call emotional factors like the degree of competitiveness and the amount of public contact (both viewed as negatives), to physical demands including crawling, stooping and bending and work conditions like toxic fumes and noise.

The methodology seems sound to me though some of the measures may not resonate for all workers. For instance, extensive contact with the public is considered a negative by Lee and his team, although many people thrive in a situation where they can interact with numerous people, as opposed to a job where they spend all day alone. Some people like deadlines and the feeling of accomplishment that goes with them.

Another thing CareerCast researchers don’t do: Uniformly poll large numbers of actual workers in the 200 fields.

They gather their data from the BLS, other government sources, trade associations and private survey firms, and they spot check some of their findings with individuals who work in various fields.

But they don’t attempt the gargantuan task of systematically surveying hundreds of workers in each of 200 fields.

Other jobs on the “worst” list that must be rewarding to the people who do them: Lumberjack, at No. 2. It’s dangerous, to be sure, but lumberjacks work outside among trees and sunlight, though they make only $34,100, according to CareerCast.

Many enlisted military personnel (No. 3) are deeply gratified by serving their country, despite the danger and rigors of the job. I also know broadcasters (No. 5) who wouldn’t trade their jobs, however stressful, for any other profession.

Mail carrier (No. 10) is on the worst list for the first time this year. With email, instant messaging and texting only growing, it’s a profession that is contracting dramatically.

9 Phrases Smart People Never Use In Conversation

30 Oct 2015

We’ve all said things that people interpreted much differently than we thought they would. These seemingly benign comments lead to the awful feeling that only comes when you’ve planted your foot firmly into your mouth.

Verbal slip-ups often occur because we say things without knowledge of the subtle implications they carry. Understanding these implications requires social awareness—the ability to pick up on the emotions and experiences of other people.

TalentSmart has tested the emotional intelligence (EQ) of more than a million people and discovered that social awareness is a skill in which many of us are lacking.

We lack social awareness because we’re so focused on what we’re going to say next—and how what other people are saying affects us—that we completely lose sight of other people.

This is a problem because people are complicated. You can’t hope to understand someone until you focus all of your attention in his or her direction.

The beauty of social awareness is that a few simple adjustments to what you say can vastly improve your relationships with other people.

To that end, there are some phrases that emotionally intelligent people are careful to avoid in casual conversation. The following phrases are nine of the worst offenders. You should avoid them at all costs. Recommended by Forbes

1. “You look tired.”

Tired people are incredibly unappealing—they have droopy eyes and messy hair, they have trouble concentrating, and they’re as grouchy as they come. Telling someone he looks tired implies all of the above and then some.

Instead say: “Is everything okay?” Most people ask if someone is tired because they’re intending to be helpful (they want to know if the other person is okay). Instead of assuming someone’s disposition, just ask. This way, he can open up and share. More importantly, he will see you as concerned instead of rude.

2. “Wow, you’ve lost a ton of weight!”

Once again, a well-meaning comment—in this case a compliment—creates the impression that you’re being critical. Telling someone that she has lost a lot of weight suggests that she used to look fat or unattractive.

Instead say: “You look fantastic.” This one is an easy fix. Instead of comparing how she looks now to how she used to look, just compliment her for looking great. It takes the past right out of the picture.

3. “You were too good for her anyway.”

When someone severs ties with a relationship of any type, personal or professional, this comment implies he has bad taste and made a poor choice in the first place.

Instead say: “Her loss!” This provides the same enthusiastic support and optimism without any implied criticism. Beyond PR: An eBook From Forbes Old-fashioned PR is dead. Discover how to communicate with purpose and passion today.

4. “You always…” or “You never…”

No one always or never does anything. People don’t see themselves as one-dimensional, so you shouldn’t attempt to define them as such. These phrases make people defensive and closed off to your message, which is a really bad thing because you likely use these phrases when you have something important to discuss.

Instead say: Simply point out what the other person did that’s a problem for you. Stick to the facts. If the frequency of the behavior is an issue, you can always say, “It seems like you do this often.” or “You do this often enough for me to notice.”

5. “You look great for your age.”

Using “for your” as a qualifier always comes across as condescending and rude. No one wants to be smart for an athlete or in good shape relative to other people who are also knocking on death’s door. People simply want to be smart and fit.

Instead say: “You look great.” This one is another easy fix. Genuine compliments don’t need qualifiers.

6. “As I said before…”

We all forget things from time to time. This phrase makes it sound as if you’re insulted at having to repeat yourself, which is hard on the recipient (someone who is genuinely interested in hearing your perspective). Getting insulted over having to repeat yourself suggests that either you’re insecure or you think you’re better than everyone else (or both!). Few people who use this phrase actually feel this way.

Instead say: When you say it again, see what you can do to convey the message in a clearer and more interesting manner. This way they’ll remember what you said.

7. “Good luck.”

This is a subtle one. It certainly isn’t the end of the world if you wish someone good luck, but you can do better because this phrase implies that they need luck to succeed.

Instead say: “I know you have what it takes.” This is better than wishing her luck because suggesting that she has the skills needed to succeed provides a huge boost of confidence. You’ll stand out from everyone else who simply wishes her luck.

8. “It’s up to you.” or “Whatever you want.”

While you may be indifferent to the question, your opinion is important to the person asking (or else he wouldn’t have asked you in the first place).

Instead say: “I don’t have a strong opinion either way, but a couple of things to consider are…” When you offer an opinion (even without choosing a side), it shows that you care about the person asking. Recommended by Forbes

9. “Well at least I’ve never ___.”

This phrase is an aggressive way to shift attention away from your mistake by pointing out an old, likely irrelevant mistake the other person made (and one you should have forgiven her for by now).

Instead say: “I’m sorry.” Owning up to your mistake is the best way to bring the discussion to a more rational, calm place so that you can work things out. Admitting guilt is an amazing way to prevent escalation.

Bringing It All Together

In everyday conversation, it’s the little things that make all the difference. Try these suggestions out, and you’ll be amazed at the positive response you get.

What other phrases should people avoid? Please share your thoughts in the comments section below as I learn just as much from you as you do from me.

The Best Jobs In Engineering And IT

30 Oct 2015

Biomedical engineer, data scientist and software engineer are at the top of the list of best jobs in engineering and information technology, according to a new report by jobs website CareerCast. Research staffers at the seven-year-old site, based in Carlsbad, CA, looked through each profession’s projected annual growth between 2012 and 2022, using data from the Bureau of Labor Statistics.

They also considered the annual mean salary for each profession, as measured by the BLS. Among the 12 jobs selected for the list, three pay salaries of more than $100,000. Petroleum engineer pays the best, at $130,280, data scientist pays $124,140 and aerospace engineer pays $103,720.

But CareerCast didn’t pick out the best jobs merely by salary and growth outlook. It considered the jobs’ ranking on its annual Jobs Rated report. That ranking evaluates 200 professions using five core criteria. In addition to pay and hiring outlook it considers work environment, stress and physical demands. Within those categories, there are more than 100 sub-criteria, like degree of confinement in the workplace and income growth potential.

The data come from the BLS, Census Bureau, the Occupational Safety and Health Administration, and an array of private compensation surveys, trade association studies and state statistics. Though CareerCast doesn’t run a comprehensive poll of actual workers in the 200 fields, it spot-checks its findings through interviews with people in a range of professions.

The new CareerCast report notes that the field of information technology is undergoing huge changes that require new skills. Example: The job of network and computer systems administrator, which has an annual median salary of $72,560 and a 12% projected growth outlook. Network administrators who have mastered cloud-based technology “have their pick of the nearly 4 million jobs based in cloud computing around the United States,” says the report.

Another job on the list with a strong growth outlook of 15%: data scientist. Any company that sells its services or products is hungry for analysis of the most effective approaches. “Organizations have more data to formulate predictive models on consumers and/or user behavior than ever before,” says the report, “and the need is rising for workers who can parse this data into something usable.”

That helps explain why data scientists make the second-highest salary on the list. No one degree guarantees you a job as a data scientist, though statistics, math and degrees in the sciences like biology and chemistry can all translate to data science jobs. Schools like Arizona State offer master’s degrees in business analytics and data science.

One more job that’s growing rapidly because of technological advances: biomedical engineering, a force in healthcare. “Another relatively fledgling field, biomedical engineers help bridge the gap between the healthcare and tech sectors,” says the report.

Biomedical engineers design systems and products, such as artificial internal organs, artificial devices that replace body parts, and machines for diagnosing medical problems. To get a start in the profession, you typically need a bachelor’s degree from an accredited program. More than 100 schools offer the undergraduate degree, from Duke to the University of Minnesota.

The Debt-Free Degree

30 Oct 2015

The Debt-Free Degree How To Eliminate College Debt At Every Step

The unfortunate truth is that most Americans have little idea on how to avoid college debt: More than 40 million people are currently repaying $1.3 trillion in student loans. Since his children were born, author John F. Wasik remained committed to an important goal: putting them through college without taking on any debt.

The Debt-Free Degree is a straightforward book on how to strategize a plan against student loans and is a must-read for anyone facing or paying off college debt.

Divided into three parts, the book will help you: save for college well before you apply; avoid debt after you have been accepted to some schools; and greatly reduce the burden of debt if you’ve already graduated and are currently in repayment. Wasik bridges the information gap on how pay off loans and provides multiple strategies on renegotiating or consolidating them. He sources tips from experts all over the country and outlines his own personal journey of helping his daughter navigate the college maze.

5 Money Lessons Students Should (But Usually Don't) Learn In School

30 Oct 2015

A Wal-Mart Stores Inc. associate organizes school supplies at a Wal-Mart Stores Inc. location in the Porter Ranch neighborhood of Los Angeles, California, U.S., on Thursday, August 6, 2015. More U.S. parents are planning to increase back-to-school spending this fall than at any time in at least the past four years, according to a survey released Tuesday by the International Council of Shopping enters. Photographer: Patrick Fallon/Bloomberg

As millions of American children head back to school over the next few weeks, they’re preparing for lessons in reading, writing, and math. But there’s one crucial subject that too many of today’s high schools students are missing out on: Financial literacy.

Only 17 states require a high school course in financial literacy, even though such courses have been shown to have a direct effect on students’ ability to make smart money decisions. Students who have taken a class in personal finance are more likely to save, more likely to budget, and more likely to have invested money.

The basics of budgeting. Today’s teenagers may never need to physically balance a checkbook register, but they need to understand the concept of how to do so. The modern equivalent is getting to know an online budgeting site like Mint.com to understand how they money that they earn (or receive as gifts) gets spent.“The teenager has to be accountable and be able to report back to a teacher or parent about where that money went and what happened to it,” says Carrie Friedberg, a San Francisco-based money coach.
The magic of compound interest. Most students will run across this one in math class, but the real world implications can’t be overstated. Long-term compound interest can, of course, be a powerful tool for saving, but it can also make a small debt balloon to unmanageable levels.
The value of paying yourself first. It’s never too early to start a savings account. While it may be hard for teenagers to wrap their head around retirement, putting some money from a summer job into a Roth IRA now can be incredibly valuable since their income and tax rate will likely only go up. An easier lesson for teens might be saving money for a short-term goal like concert tickets or a Spring break trip.
The importance of using credit responsibly. Once you’ve established poor credit habits, it’s difficult to change course. Teens should learn as early as possible how credit works and how to use a tool like a credit card. Understanding credit and the long-term implications of debt will also help prepare them to make college-financing decisions in a few short years.“The decisions you make about debt in high school and college can have a long-term affect on your career and you financial security,” says Kelly Long, a certified financial planner with Financial Finesse.
The danger of identity theft. In today’s digital world, it’s easier than ever for ID thieves to get ahold of the personal information needed to someone else’s identity for financial fraud.