The following is a continuance of the portion of the “expert” portion of our website.  This time, we interviewed Mr. Kelly Barnes.  Kelly is the Executive Director of Money Camp OK, a certified Money Coach, and an Associate Speaker for YourNextSpeaker, LLC. Kelly graduated with a degree in Agricultural Leadership from Oklahoma State University and has since traveled the U.S. motivating leaders and inspiring his audience to build decision-making skills. Kelly’s passion for empowering people and realization of the lack of financial knowledge among them, led him and business partners Stewart and Casey Kennedy to start Money Camp OK; a high-energy, fast-paced money camp geared to provide children, teens, and adults with the knowledge and habits to become financially independent. Kelly’s experience as an entrepreneur, elected official and motivational speaker has provided him with the life lessons to deliver a quality program that is guaranteed to make those in the audience change the way they think about money, leadership and life.

1.   What is the best way for an 18 year old college student to get started on their financial wellbeing?  The first step is for a college student to understand that this is the most crucial time to become financially stable and begin to grow wealth.  I would recommend not using student loans.  I am against any loans.  There are ways around this.  Apply for as many scholarships and grants as possible.  There is a robust amount of free money out there for scholarships and it is simple: those who really want it get it.  There is also the dreaded JOB!  I know this doesn’t sound appealing to most college students but I graduated debt free due to two things; scholarships and my job.  Stay away from credit cards, student loans and things you can’t afford.  This is a jump start time for wealth building if treated as such.

2.   At what stage in a person’s life should they invest in stock?  Whenever they are debt (besides a mortgage payment) and have secure knowledge of the stock market or have hired a financial investor.

3.   At what stage should they invest in mutual funds?  I like growth stock mutual funds and feel it is always a great investment at any age.  The key is the younger the better.  Low risk, continual growth is on a college student’s side!

4.   How do the current interest rates affect home buyers?  I recently purchased a home and I think it is a great time to buy if you are not STUPID with your delusions of what you need (And yes I say STUPID).  I am a true believer in Dave Ramsey (www.daveramsey.com) and all his thoughts on money. I do believe that a house is probably the single most expensive purchase a person can make.  If handled correctly it can be a wonderful experience.  If handled wrong however, it will ruin you. 

      With the market we have now is a great time to buy if you  a) have a large down payment b) keep the yearly payments under  25% of your total take home and c)buy what you need and not what you want.  I would recommend paying 100% on the home and know it can be done.

      So many young people want their first home to be like something of MTV Cribs (which sometimes everything you see on the show was probably rented for the day).  This is just dumb.  Purchase something you can be happy with but don’t buy into a home you cannot sleep in because you are up all night worrying about money.  I live in a nice home.  I bought when the market was bad, I had a substantial down payment, and in only three and a half years from the date of purchase it will be paid off.  I am not telling you this to impress you but to impress upon you the power of sensibility with your money.

      My house is very nice but the nicest thing is I will have a paid for house in a few years and I can     then afford to put that huge monthly payment into the market or other means of investing and    really grow some wealth!  You should try it… it feels really good.

5.   How much money should a parent invest in a child’s future education at birth? As much as they can while not taking away from retirement.  You have to make at least 7 percent each year on your investment to keep up with inflation.  Dave Ramsey recommends an Educational Savings Account (ESA).  The ESA grows tax free when used for higher education.

6.   What age do you recommend a person getting a credit card and why? Never. Never. Never. Never.  I hate credit cards and know many people personally who have ruined their marriage, career and lives because of credit cards.  The temptation of other people’s money is strong and the interest rates are ridiculous.  Stay away.

7.   What is the best way to manage a credit card? Cut it in half.

8.   What kind of interest rates should you look for when getting a credit card? I think we all know my stance on this issue but just for repetition sake: NONE! 

9.   What services do you provide to your customers? My company, Money Camp OK, provides basic financial knowledge and literacy for teens, college age students and adults.  I also do personal money coaching for families and adults. The focus is to train the mind and habits to say no.  To think before spending and to get a much needed understanding of the language of finances.

10. If you could give 3 bits of advice to all ages of investors, what would they be? Stay away from debt, never buy a new car and save early, save often.

11. Would you recommend a 15 or 30 year mortgage on your house? I would never recommend a 30 year mortgage.  The monthly payment on a 15 year note is not that much higher and you will literally save 10’s of thousands of dollars in interest.