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Don’t Buckle Under the Pressure to Buy Name-Brand Products for Your Kids

As a new school year begins, parents aren’t just feeling the pinch in their budgets to buy basic back-to-school supplies and essentials — they’re often feeling pressure from their kids to purchase expensive designer jeans, name-brand sneakers and the latest gadget. While giving in to such lavish requests may appear overindulgent to an outsider looking in, for some parents it’s an opportunity to make up for lost time due to work. Other parents may simply want to help their kids fit in.

“Parents too often define being a good parent by making their children happy, which often entails giving in to their wants,” says Dr. Paul DePompo, founder of the PCIT Institute of Southern California, a clinic that offers parent-child interactive therapy. “Parents are the only creatures that can really feel their child’s feelings. Unfortunately, this makes it harder to set limits when their kids are showing pain from potential embarrassment about standing out or being made fun of for not being cool.”

Other experts agree. “Busy parents often feel guilty they are not around, so they use the lavish items as surrogates to help a child feel loved. It eases their guilt for being less available as a parent,” says Dr. Kimberly Williams, a pediatric neuropsychologist in New York.

Giving in to every name-brand request, regardless of the reason, could do more harm than good, experts say. Instead, parents should guide children to understand spending decisions, become smarter consumers and build confidence to stand up to peer pressure.

[See: How to Talk to Millennials About Money.]

Minimize the influence of materialism. Brand exposure begins at a very young age and has a profound effect on children. Kids as young as 3 years old recognize logos and make judgments about other children on the basis of brand usage, according to a 2010 study published in Psychology & Marketing.

“Parents should assess their own values and determine what message about money, spending and saving they are sending to their children,” Williams says.

Turn it into a teachable moment. Parents should seize this opportunity to teach a very valuable and important life lesson on money management and spending by allowing their kids to make their own purchasing decisions. Children need to learn how to budget and make their own decisions in order to understand the value of money, says Maggie Stevens, parenting coach and author of “Parent Fix: When Parents Change, Kids Change.”

“If you just hand your child money and buy them what they beg for, you are doing them a disservice,” she says. “You will be better off if you use this and other parenting moments to teach your child how to make responsible decisions.”

[See: 10 Money-Saving Websites to Check Before Shopping.]

Discuss family finances openly. Having an open conversation about family finances helps children understand the dynamics of a budget and how everyone contributes to managing it, as well as why parents can’t give in to every request and demand for a new item.

“It’s important for children to know that parents have financial goals they are working toward, which sometimes requires budgeting, saving and setting limits,” Williams says. “When buying a special brand-name item, discuss with your child the work efforts required to provide it to help them understand that such items are a result of hard work and don’t just magically appear.”

Talk about the power of branding. Discussing advertising strategies and how companies target kids will help children become more resistant to the pressure to keep up with certain brands and the pressure to be “cool,” says Anna McAlister, associate professor of marketing at Endicott College, and co-author of the 2010 study on children and brand usage in Psychology & Marketing. She encourages parents to talk openly with their children about how companies target kids with advertisements and brand messages.

“Including them in adult conversations challenges them to think in adult ways,” she says. “Once kids realize that advertising sometimes bends the truth, and that companies are profit-driven, some will refuse to be sucked into buying the next great gadget.”

[See: Basic Money Lessons You (Probably) Missed in High School.]

Justify the no. When parents say no to certain purchases, a battle often follows. To ease the frustration for both parent and child, it’s important to justify the response with a specific reason. For example, parents can explain that they can’t purchase a certain item because it is not in the budget.

“It is easier for a child to accept an answer when there is justification behind it,” says Ken Taylor, founder of 39 Ideas, a marketing consultancy, and author of “Persuaded by the Seven Deadly Sins of Decision Making and Influence.” “Always use the word ‘because’ as a persuasion-booster. Our mind unconsciously and automatically perceives a legitimate rationale, even when there isn’t one.”

Build competencies to grow confidence. Kids develop confidence not from parents telling them they’re great, but from their achievements, big and small. Parents need to provide opportunities for kids to practice new skills and make mistakes and encourage them to keep trying. Confidence is crucial in helping kids overcome peer pressure in school.

“When they feel confident in an area at school, they can build more social resilience,” DePompo says. “Parents can specifically praise bravery, doing things on their own, good manners, friendliness, fairness, patience, good eye for fashion to help reinforce the good pro-social behaviors needed for social confidence and self-esteem.”

Role-play situations of criticism. Parents can help children stand up to potential bullies and grow their confidence by acting out situations of criticism, providing guidance on different things they can say or do to overcome torment.

“Role-playing with your child with an assertive response will help them stand confidently,” DePompo says.

Take action against bullying. Children are so heavily influenced by brands that they often judge or shun classmates who do not keep up with certain material items, and this can go as far as bullying. Children who wear different clothing or appear as though they can’t afford what other kids consider “cool” are at risk for being bullied, according to StopBullying.gov. If parents think their child is being bullied, they need to be doing more than buying the coolest sneakers. Families can take action by speaking up at their children’s schools and find the resources needed to raise awareness about this serious issue through resources such as HealthCharities.org.

More from U.S. News

10 Offbeat Ways to Earn Extra Money

7 Deadly Money Sins to Avoid

7 Habits You Can Learn From Highly Successful Savers

Don’t Buckle Under the Pressure to Buy Name-Brand Products for Your Kids originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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