Happy New Year!
Make 2013 the year that you embark on a financial literacy quest with your kids and teens! Maybe this will be a new quest for you. Or maybe you are ready to expand your existing financial literacy quest.
Whatever the case, the time is now.
Parents are the number one role model for their kids and teens when learning about how to manage money. All parents want their children to be happy and healthy. What about financially healthy? This is your chance to teach your kids good money habits: to grow up debt free, build up their savings, live within their means, and invest wisely.
Don't worry, you don't have to be financial expert yourself to teach your kids and teens about money. It's best to use the lessons from your own life and everyday situations to talk about money.
And, you are not alone, check this blog weekly for useful tips, tools and stories all year that will help you along the way.
Happy Quest!
Helping parents teach their children to become financially responsible
Showing posts with label Family Money Values. Show all posts
Showing posts with label Family Money Values. Show all posts
Jan 14, 2013
May 3, 2012
Bust the Money Tree Myth
Yesterday at my parent workshop Bust the Money Tree Myth ~ 3 Easy Steps to Teach your Kids the Value of Money, I mentioned a few surveys on kids and money that are worth taking a look at.
- Junior Achievement 2012 Teens & Personal Finance Survey
- T Rowe Price Parents, Kids & Money Survey - March 2012
- Charles Schwab 2011 Teens & Money Survey
The biggest take-away from these surveys is that parents play an instrumental role in teaching their children about money yet parents are not talking having enough money conversations using everyday life situations to do so. And parents need to be consistent and follow their own good money advice. The golden rule of parenting...they are watching you!
A big thank you to The Schoolhouse and Melissa Corey for hosting the parent workshop. I am back at The Schoolhouse in July for two fun and educational Teen summer workshops.
Mar 27, 2012
Does Allowance Really Teach Your Kids About Money?
I’m sure you can guess that my answer
would be a big “YES” however this article’s subtitle stated that giving
allowance was a “waste of time.” Of course, I had to read on to find out what
this heretic had to say.
It turns out I agree.
If you give allowance to your children without any guidance or daily conversation about money—then you are literally throwing away good money after bad and giving up the opportunity to teach and pass on your money values. Don’t bother to give allowance unless you are ready to talk about financial topics with your children.
Money is emotional. The earlier you talk about your money values the better off your children will be to cope with money issues as an adult. You want to connect money with values and emotions. For example, if they spend all their allowance before the next payday, don't bail them out. Let them learn from their poor choices. Now the lesson will stick otherwise it’s just numbers.
Allowance is a parenting tool. You need to spend the time upfront to design an Allowance Program. Only then will you have success in teaching your kids and teens about healthy money habits such as living within your means, understanding the pitfalls of too much debt and investing for the future to meet important goals.
It turns out I agree.
If you give allowance to your children without any guidance or daily conversation about money—then you are literally throwing away good money after bad and giving up the opportunity to teach and pass on your money values. Don’t bother to give allowance unless you are ready to talk about financial topics with your children.
Money is emotional. The earlier you talk about your money values the better off your children will be to cope with money issues as an adult. You want to connect money with values and emotions. For example, if they spend all their allowance before the next payday, don't bail them out. Let them learn from their poor choices. Now the lesson will stick otherwise it’s just numbers.
Allowance is a parenting tool. You need to spend the time upfront to design an Allowance Program. Only then will you have success in teaching your kids and teens about healthy money habits such as living within your means, understanding the pitfalls of too much debt and investing for the future to meet important goals.
If you would like guidance in building
your Allowance Program, check out 5 Steps to a Successful Allowance Program.
Feb 6, 2012
Enseignez la patience!
Did you see the article in the WSJ titled “Why French Parents are Superior” based on a new book “Bringing
Up Bébé: One American Mother Discovers the Wisdom of French Parenting”?
I am sure that between this new book and “The Battle Hymn of the Tiger Mother,”
we poor American parents are feeling a little put upon.
I am nowhere close to being a parenting expert (just ask my two teens), but I am always interested to add a new skill to my parenting tool kit. Or in this case, I was able to confirm an important life skill that just happens to relate to learning to be financially responsible:
Teach your children to have patience.
In the article, the author spoke about the importance of your children learning patience. Also known as: delayed gratification. (She even referenced the famous Marshmallow Experiment…see my blog entry). This is one of the most important money skills for your children to master. It is difficult to learn when we live in a world with instant everything from text messaging to fast food to WI-FI access everywhere.
How will our children learn to be patient? When it comes to money, they will need to have patience so they won’t have to live with bad money habits. For example, how many of us have purchased something we really couldn’t afford but went ahead and bought it anyway on credit. We bought now, and paid for it later.
A better money habit is to set a goal, save for it, and then purchase. And when it comes to investing your money, watching your money grow takes a lot of patience. Compounding interest works like magic, but it doesn’t grow over night. It takes time. Time can work for you, or against you. Invest now, watch your money grow. Or live beyond your means now, watch your future become more expensive as inflation takes over.
The best way for your children to learn the money skills they need to be financially healthy adults is for you to start an Allowance Program and talk about money in everyday situations.
And, maybe a little French lesson is not so bad after all: Enseignez à votre patience de l'argent enfants.
Translation: Teach your kids money patience.
I am nowhere close to being a parenting expert (just ask my two teens), but I am always interested to add a new skill to my parenting tool kit. Or in this case, I was able to confirm an important life skill that just happens to relate to learning to be financially responsible:
Teach your children to have patience.
In the article, the author spoke about the importance of your children learning patience. Also known as: delayed gratification. (She even referenced the famous Marshmallow Experiment…see my blog entry). This is one of the most important money skills for your children to master. It is difficult to learn when we live in a world with instant everything from text messaging to fast food to WI-FI access everywhere.
How will our children learn to be patient? When it comes to money, they will need to have patience so they won’t have to live with bad money habits. For example, how many of us have purchased something we really couldn’t afford but went ahead and bought it anyway on credit. We bought now, and paid for it later.
A better money habit is to set a goal, save for it, and then purchase. And when it comes to investing your money, watching your money grow takes a lot of patience. Compounding interest works like magic, but it doesn’t grow over night. It takes time. Time can work for you, or against you. Invest now, watch your money grow. Or live beyond your means now, watch your future become more expensive as inflation takes over.
The best way for your children to learn the money skills they need to be financially healthy adults is for you to start an Allowance Program and talk about money in everyday situations.
And, maybe a little French lesson is not so bad after all: Enseignez à votre patience de l'argent enfants.
Translation: Teach your kids money patience.
Oct 11, 2011
What’s a Parent to do?
While having a successful Allowance Program is key to teaching your kids and teens about financial responsibility, they are watching your money habits closely…so beware.
While the old saying “Do as I say, not as I do” might work in some cases, when it comes to parenting it’s all about consistency. Your kids are watching you and emulating your every move in all aspects of your life. So it’s no surprise that they will copy your money habits too.
One of the most important lessons you can give your children is that of financial security. This is a good lesson for them to learn as adults, but could be instrumental in their current lives as a child.
Here are 3 sound financial steps you should have in place as a parent:
1. Retirement Account: you should make sure that you are saving for your own retirement. You don’t want to be a burden on your adult children if you run out of money in your later years. Keep adding to your retirement account. Remember you can get a loan for college but not for your retirement!
2. Risk Management: you need to make sure that your risks are taken care of, meaning you should carefully consider life insurance, property and casualty insurance, disability coverage, long-term care policy, medical insurance and an umbrella insurance policy. If something happens to you or a family member, you need to be protected financially. You should review your insurance when you have any major life changes and at least every few years to make sure you are still covered appropriately.
3. Estate Documents: you will need to have a will, a living will, and health directive. You will need to name guardians for your children and give direction on your health wishes.
You will be protecting your children and your family. Your adult children should do the same when they have a family – this is a long-term financial lesson.
These steps can be “boring” and sometimes confusing. You may have to make scary decisions, but these will have an important, long-term financial impact on you and your children. Don’t put them off – Just do it!
Sep 13, 2011
Senior Year
Congrats…your “baby” is now a high school senior! You’ve almost made it. You’ve been saving for the college years so you know what to expect going forward. However, senior year has some additional expenses that you and your teen should budget for early.
Here are some of the “extras” to discuss with your senior:
· Senior portraits – consider in school vs studio photographer
· Memorabilia – Class ring, Varsity sports jackets, etc
· Yearbook – embossed with initials/monogram
· Senior Prom/Dances – tickets, dress/tux, dinner, limo, after-parties, etc
· Senior Class Trip/Picnics - tickets, food, etc
· Graduation – cap and gown, announcements, party, etc
· College Application Fees – discuss how many applications you will be submitting
· College Test Fees – SAT/ACT, AP, etc
· College visits – gas or plane tickets to check out your top choices
As a family, you’ll need to decide what works for your budget. Then, discuss how much you will pay and what makes sense for your teen to contribute.
If the expenses are overwhelming, consider organizing a school fundraiser for prom/trip/graduation. And, if relatives would like to help out, they could contribute to senior portraits or the class ring.
Senior year is a milestone for your teen and your family. Some upfront planning will help you and your teen to keep the memories alive without busting your budget.
May 15, 2011
Congrats Grads!
‘Tis the season for celebrations—from pre-school ceremonies to college graduations. Congratulations to all!
‘Tis also a season of expenses and gift checks. You will want to celebrate your graduate’s achievements with a party and your graduate will most likely receive some larger-than-normal money gifts. You can use this time to talk about budgeting, spending wisely and saving strategies.
For example, when planning your festivities, decide on a budget and then talk to your gradate about what types of parties will fit within the family budget. If you are on a tight budget, you could consider hosting a party with another graduating family so you can share the guest list and party expenses. Other ideas are to keep the decorations and food simple and use an on-line invitation services such as www.evite.com to save on stamps.Before your graduate opens their money-holder graduation cards, discuss with them what to do with their gift money. They can use the same allocation that they use for their allowance but if their checks are on the larger side you can consider:
- Put more into Savings – save for a long-term goal like a car or graduate school.
- Set some aside to use for College – books, computer, dorm room supplies, and/or tuition.
- Go ahead and really Celebrate – spend the money on a “reward” like a trip or even something smaller like a watch or computer.
Whatever you do, remember that the celebration should be about your child’s accomplishment and not necessarily about an expensive party or a big gift check.
Enjoy the moment—they grow up too quickly!
May 9, 2011
Guest Blogger: Evelyn Cucchiara
Money & kids. Seems there is never just the right balance. Some have too much and run amok, some have too little and run amok. What's a parent to do?
Luckily for my family, the current economy played a big part in the decision. Once upon a time my children received allowances. That was then. This is now. Due to a downturn in our real estate flipping business, allowances became a luxury in my kids world, no longer an expected. We sat all three of my boys down (ages 18, 13, & 11) and explained that allowances would be suspended temporarily. That was at least two years ago. They have been forced to figure out ways to earn their spending money. We worked with them to guide them, offering opinions when needed, but I have to say that they have been pretty resourceful on their own.
The oldest son went out and got a part time job. He looked around, talked to friends, (networked!) and got a job at Staples. This was right up his alley as it had benefits, could be put on hold while he was off at college where he has a work study job, and was air conditioned. Three big pluses in his world. Pretty savvy.
The younger ones had to be a bit creative. So, they saw a need and filled it. In a day and age where no kids shovel snow anymore, they started a business. J & A Snow Shoveling. They wrote a great flyer introducing their business, attached a magnet with their business card on it, and distributed it to all the houses on our block.
I lost track of how much money they made, but they certainly didn't. They kept a written record, subtracted when they took money out, and all in all had a hands on experience in managing their own money. In addition, since they worked for the money, they were very wise with their spending. They researched any video game they wanted to buy, figured out where the best price was and dwelled on it before their purchase. They also went through all of their old games and sold some to earn credit/money towards new ones. But my favorite thing they did was this - one day they came to the realization that while the new games had better graphics, the old games suited their playing needs - and they could get more games for their money if they bought the old games! So, they researched which video system would have the most accessible, cheap games, budgeted money for it, researched where to get it, purchased it and are now spending some of their money on the new inexpensive games. Is that a life lesson or what?
Now, they are brainstorming ways to earn money this summer. I can't wait to hear what they come up with. So, in a nutshell, the best way my kids ever learned about money was having none given to them. Much like kids of yesteryear. Which leads me to ask: Are we simply complicating our kids lives by giving too much?
Evelyn Cucchiara writes a daily blog on organizing called Best Organizing Tips and another blog on Happiness. She also runs an art studio for children in Madison called Art Adventures.
Luckily for my family, the current economy played a big part in the decision. Once upon a time my children received allowances. That was then. This is now. Due to a downturn in our real estate flipping business, allowances became a luxury in my kids world, no longer an expected. We sat all three of my boys down (ages 18, 13, & 11) and explained that allowances would be suspended temporarily. That was at least two years ago. They have been forced to figure out ways to earn their spending money. We worked with them to guide them, offering opinions when needed, but I have to say that they have been pretty resourceful on their own.
The oldest son went out and got a part time job. He looked around, talked to friends, (networked!) and got a job at Staples. This was right up his alley as it had benefits, could be put on hold while he was off at college where he has a work study job, and was air conditioned. Three big pluses in his world. Pretty savvy.
The younger ones had to be a bit creative. So, they saw a need and filled it. In a day and age where no kids shovel snow anymore, they started a business. J & A Snow Shoveling. They wrote a great flyer introducing their business, attached a magnet with their business card on it, and distributed it to all the houses on our block.
I lost track of how much money they made, but they certainly didn't. They kept a written record, subtracted when they took money out, and all in all had a hands on experience in managing their own money. In addition, since they worked for the money, they were very wise with their spending. They researched any video game they wanted to buy, figured out where the best price was and dwelled on it before their purchase. They also went through all of their old games and sold some to earn credit/money towards new ones. But my favorite thing they did was this - one day they came to the realization that while the new games had better graphics, the old games suited their playing needs - and they could get more games for their money if they bought the old games! So, they researched which video system would have the most accessible, cheap games, budgeted money for it, researched where to get it, purchased it and are now spending some of their money on the new inexpensive games. Is that a life lesson or what?
Now, they are brainstorming ways to earn money this summer. I can't wait to hear what they come up with. So, in a nutshell, the best way my kids ever learned about money was having none given to them. Much like kids of yesteryear. Which leads me to ask: Are we simply complicating our kids lives by giving too much?
Evelyn Cucchiara writes a daily blog on organizing called Best Organizing Tips and another blog on Happiness. She also runs an art studio for children in Madison called Art Adventures.
Apr 18, 2011
Elmo Rocks!
Elmo and I have something in common. No, it’s not red fur. It’s teaching kids about Spending, Sharing and Saving!
Sesame Street has a brand new free series of videos called “for me, for you, for later” to help parents teach their pre-school children about money with the help of Elmo. This is awesome. Yes, I did watch a few of the videos…who can resist Elmo! Now it’s your turn to check them out.
In addition there were two articles about the Sesame Street launch that are worth reading:
Sesame Street has a brand new free series of videos called “for me, for you, for later” to help parents teach their pre-school children about money with the help of Elmo. This is awesome. Yes, I did watch a few of the videos…who can resist Elmo! Now it’s your turn to check them out.
In addition there were two articles about the Sesame Street launch that are worth reading:
- “Too young for finance?Think again” by NY Times reporter Ron Lieber
- “No Child is too Young to Learn about Money Values…Just Ask Elmo!” by Beth Kobliner, a personal finance commentator and journalist
Mar 20, 2011
Some Skin in the Game
We had an exciting collegiate weekend. My daughter and I went on our first college trip! Yes, she is only a sophomore and I know it’s early to be looking. However we combined the trip with a visit to see my very good friend and her daughter who moved from our town about five years ago.
Our first information session and tour was at the University of Pennsylvania and then we headed to the suburbs of Philly for the same sessions at Villanova University. (I’m not going to review our visits but if you want to read more about parenting your college bound teen – check out a friend’s blog Bound 4 College.)
From our college visits, I could see that there are two main concerns (besides how’s the food and are the dorms co-ed) – how to get in and how to pay for it! Going to college is a financial partnership between you and your child. So it’s probably a good idea if your teen has “some skin in the game.”
Last week, the Wall Street Journal’s article Before You Choose That College asked some financial advisors for some advice on this partnership. There were five interesting pieces of advice:
We still have a few years before we will be writing out the big tuition check, but I am already thinking about how to pay for it and how much “skin” my daughter will have in her college game.
In case you want to know, my daughter told me that she was energized by our college visits and is now excited about the whole college experience. That’s a good thing, because she’ll have to keep up her end of the partnership.
Our first information session and tour was at the University of Pennsylvania and then we headed to the suburbs of Philly for the same sessions at Villanova University. (I’m not going to review our visits but if you want to read more about parenting your college bound teen – check out a friend’s blog Bound 4 College.)
From our college visits, I could see that there are two main concerns (besides how’s the food and are the dorms co-ed) – how to get in and how to pay for it! Going to college is a financial partnership between you and your child. So it’s probably a good idea if your teen has “some skin in the game.”
Last week, the Wall Street Journal’s article Before You Choose That College asked some financial advisors for some advice on this partnership. There were five interesting pieces of advice:
- Encourage your teen to explore some careers choices first, then look at appropriate schools.
- Don’t promise your teen that you’ll pay the entire tuition – with the latest economic downturn some parents have had to revise their promises.
- If deciding between schools with different price tags, make your teen responsible for at least some of the difference if they choose the more expense school.
- Make school their #1 priority, if they underperform then you’re not paying anymore.
- Once your teen is 18 years old, you will no longer have legal authority to access their health records or finances – you will need the appropriate legal documents to address the unexpected.
We still have a few years before we will be writing out the big tuition check, but I am already thinking about how to pay for it and how much “skin” my daughter will have in her college game.
In case you want to know, my daughter told me that she was energized by our college visits and is now excited about the whole college experience. That’s a good thing, because she’ll have to keep up her end of the partnership.
Mar 8, 2011
Can you spare some change?
Here’s a fun family activity: Collect your spare change in a “family piggybank” and then use for a special family outing or give to a favorite charity.
Step 1: Set Up the Family Piggybank
Put a container in a central place like the kitchen, family room or even the laundry room where everyone has access. If you have young kids, they can have fun decorating your container.
Decide as a family on how you want to use the spare change and your timeline. Maybe you will collect for a few months or even a year. Summer will be here before you know it, so you could decide to use the change for a special lunch, dinner or activity while on vacation. If your family would like to give your collected change to a favorite charity, have your kids and teens do some research on the charity so they will be excited to collect the spare change. When you make the donation, be sure to include your kids and teens as a donor on any correspondence to the charity and have them watch you write the check or click the on-line payment.
Step 2: Start Collecting
You’ll find money all around – the clothes hamper, washing machine, couch cushions, jeans and coat pockets, your junk drawer, the bottom of your purse, the car cup holder, even the sidewalks…keep looking! You can decide to include only coins or you can include those crumpled dollar bills in your pockets too.
Step 3: Sort and Count
At your determined time, bring the family together to sort and count the spare change. Everyone can take a guess of how much is in the family piggybank. It is a great activity for younger kids to actually sort the coins and then count them.
If you don’t want to physically count your change, you can go to TD Bank and use their Penny Arcade or some grocery stores and Wal-Marts have Coinstar machines. But beware that I have seen some stories of wrong amounts counted so it’s best to count your change yourself and then you can take to a machine to exchange for bills.
Step 4: Enjoy
Now it’s time for your family outing or your family donation. This fun activity will show your kids and teens just how much small change can really add up!
Enjoy your spare change!
Step 1: Set Up the Family Piggybank
Put a container in a central place like the kitchen, family room or even the laundry room where everyone has access. If you have young kids, they can have fun decorating your container.
Decide as a family on how you want to use the spare change and your timeline. Maybe you will collect for a few months or even a year. Summer will be here before you know it, so you could decide to use the change for a special lunch, dinner or activity while on vacation. If your family would like to give your collected change to a favorite charity, have your kids and teens do some research on the charity so they will be excited to collect the spare change. When you make the donation, be sure to include your kids and teens as a donor on any correspondence to the charity and have them watch you write the check or click the on-line payment.
Step 2: Start Collecting
You’ll find money all around – the clothes hamper, washing machine, couch cushions, jeans and coat pockets, your junk drawer, the bottom of your purse, the car cup holder, even the sidewalks…keep looking! You can decide to include only coins or you can include those crumpled dollar bills in your pockets too.
Step 3: Sort and Count
At your determined time, bring the family together to sort and count the spare change. Everyone can take a guess of how much is in the family piggybank. It is a great activity for younger kids to actually sort the coins and then count them.
If you don’t want to physically count your change, you can go to TD Bank and use their Penny Arcade or some grocery stores and Wal-Marts have Coinstar machines. But beware that I have seen some stories of wrong amounts counted so it’s best to count your change yourself and then you can take to a machine to exchange for bills.
Step 4: Enjoy
Now it’s time for your family outing or your family donation. This fun activity will show your kids and teens just how much small change can really add up!
Enjoy your spare change!
Feb 8, 2011
One Marshmallow or Two?
Have you heard about the “Marshmallow” experiment?
Walter Mischel, while a professor of psychology at Stanford, studied the concept of delayed gratification. His research project started in the 1960’s by tempting 4 yr olds with marshmallows. He left them in a room with one marshmallow on the table and told the child that if they didn’t eat it while he was gone (for 15 minutes!), then they would get to eat two marshmallows! Some kids ate the marshmallow immediately and others finally gave in after a delay. Still others were able to wait the full 15 minutes to get to eat two marshmallows.
Mischel went to on expand his research to see how the level of self –control as children predicted their success as a young adult. It turns out that the kids with a higher level of self-control had higher incomes, better health, less problems with drugs, and more satisfying relationships. You can read more about the study in this article in The New Yorker.
This is a key concept that you can work on with your children and teens using your allowance program.
By helping them set short-term and long-term savings goals, they will learn how to wait for bigger ticket purchases. Unfortunately we live in a world with instant everything…cell phone, texting, Twitter, and Facebook instant status updates. Our children are used to getting almost everything in a nano-second.
By using allowance, you will help them learn to delay gratification and according to the research, your children just may have more success (and more marshmallows) as an adult!
Walter Mischel, while a professor of psychology at Stanford, studied the concept of delayed gratification. His research project started in the 1960’s by tempting 4 yr olds with marshmallows. He left them in a room with one marshmallow on the table and told the child that if they didn’t eat it while he was gone (for 15 minutes!), then they would get to eat two marshmallows! Some kids ate the marshmallow immediately and others finally gave in after a delay. Still others were able to wait the full 15 minutes to get to eat two marshmallows.
Mischel went to on expand his research to see how the level of self –control as children predicted their success as a young adult. It turns out that the kids with a higher level of self-control had higher incomes, better health, less problems with drugs, and more satisfying relationships. You can read more about the study in this article in The New Yorker.
This is a key concept that you can work on with your children and teens using your allowance program.
By helping them set short-term and long-term savings goals, they will learn how to wait for bigger ticket purchases. Unfortunately we live in a world with instant everything…cell phone, texting, Twitter, and Facebook instant status updates. Our children are used to getting almost everything in a nano-second.
By using allowance, you will help them learn to delay gratification and according to the research, your children just may have more success (and more marshmallows) as an adult!
Jan 18, 2011
Success Story: Going Green!
Teaching your kids and teens about financial responsibility can be challenging. Not everything works for every child or family situation. By highlighting a family’s success story I hope to give you an idea for your family or get you motivated to start an allowance program.
***
When Janice Coviello told me her story about why she started her new business, I knew her story was perfect for my blog series “Success Story” because Janice was able to show her kids how important it is to follow your family values.
It was Earth Week and her 7 year old daughter came home from school to ask, “Hey, Mom, what are we doing to help protect the environment?”
“We recycle,” said Janice “And don’t forget that we walk to school.”
“Everyone does that!” her daughter said. “What else are we doing?”
"We can never be doing enough," Janice replied.
Janice is the kind of person who is committed to her causes. When the town started cutting down trees across the street from her house, she called the town to find out why. She found that they were cutting down four 100-year old trees just so they could build a drainage system for the town pool. Due to her commitment to save the trees in her town, the mayor has requested that Janice head the Tree Protection Committee for her town. Her kids think this is so cool.
Next Janice looked into a new business opportunity that would put her values where her money is: Viridian. She choose to be an Independent Associate for Viridian because it is an energy company that provides an alternative energy supply option for commercial businesses and residents that is both affordable and green.
When she told her kids about her new business they said “Now we really are doing something important to protect our earth.”
“And it’s also saving us money,” Janice told them. She feels great about how her business is meeting her family values of being green and also saves the family some money on their energy bill.
You can incorporate your family values into your allowance program by talking to your kids and teens about sharing and giving back to your community. Remember that a successful allowance program not only includes spending, saving but also sharing. What a great lesson for your family!
***
Do you have your own Success Story? If so, I’d like to feature you in a future “Success Story” posting.
Tell me what you have done to help your kids and teens become financially responsible. I am interested in all your stories. It can be a small story or an amazing experience. Leave a comment to this post with your story and I will incorporate it into a future post. If you want to be interviewed – let me know how to contact you (I will not post your personal info).
***
When Janice Coviello told me her story about why she started her new business, I knew her story was perfect for my blog series “Success Story” because Janice was able to show her kids how important it is to follow your family values.
It was Earth Week and her 7 year old daughter came home from school to ask, “Hey, Mom, what are we doing to help protect the environment?”
“We recycle,” said Janice “And don’t forget that we walk to school.”
“Everyone does that!” her daughter said. “What else are we doing?”
"We can never be doing enough," Janice replied.
Janice is the kind of person who is committed to her causes. When the town started cutting down trees across the street from her house, she called the town to find out why. She found that they were cutting down four 100-year old trees just so they could build a drainage system for the town pool. Due to her commitment to save the trees in her town, the mayor has requested that Janice head the Tree Protection Committee for her town. Her kids think this is so cool.
Next Janice looked into a new business opportunity that would put her values where her money is: Viridian. She choose to be an Independent Associate for Viridian because it is an energy company that provides an alternative energy supply option for commercial businesses and residents that is both affordable and green.
When she told her kids about her new business they said “Now we really are doing something important to protect our earth.”
“And it’s also saving us money,” Janice told them. She feels great about how her business is meeting her family values of being green and also saves the family some money on their energy bill.
You can incorporate your family values into your allowance program by talking to your kids and teens about sharing and giving back to your community. Remember that a successful allowance program not only includes spending, saving but also sharing. What a great lesson for your family!
***
Do you have your own Success Story? If so, I’d like to feature you in a future “Success Story” posting.
Tell me what you have done to help your kids and teens become financially responsible. I am interested in all your stories. It can be a small story or an amazing experience. Leave a comment to this post with your story and I will incorporate it into a future post. If you want to be interviewed – let me know how to contact you (I will not post your personal info).
Jan 10, 2011
Resolutions and Values
Happy & Healthy New Year!
It’s refreshing to start a new year with a renewed sense of goals. Did you know that the top New Year Resolutions for most Americans include: lose weight, find a better job, quit smoking, spend more time with family and friends, give back, get fit, be more spiritual, return to school and get out of debt.
Resolutions are personal and reflect what is important to you. This got me to thinking about one of the most important steps when designing an allowance program: Your Family Money Values.
Think about who you want to teach your kids and teens about money.
So before you begin your allowance program it is important for all family members to compare their values on the different aspects of money: earning, spending, saving, investing and giving. Each family member who will be involved in your kids and teens financial education should compare their feelings on money so you can show a united front. This means parents, grandparents, uncles, aunts and babysitters.
For example: If you feel strongly about having your child save up their allowance and birthday money to buy a big ticket item, all family members need to be on board with the decision. Otherwise, a well meaning grandparent may unknowingly buy the item and cancel out your lesson!
If one of your New Year Resolutions is to start an allowance program, then begin with your family money values. It’s the best way to insure success.
As for my New Year Resolutions, I have the standard get more exercise and spend more time having fun with my family and friends but my big one for the year is completing my eBook on what makes a successful allowance program – I’ll keep you posted on my progress!
It’s refreshing to start a new year with a renewed sense of goals. Did you know that the top New Year Resolutions for most Americans include: lose weight, find a better job, quit smoking, spend more time with family and friends, give back, get fit, be more spiritual, return to school and get out of debt.
Resolutions are personal and reflect what is important to you. This got me to thinking about one of the most important steps when designing an allowance program: Your Family Money Values.
Think about who you want to teach your kids and teens about money.
- Do you want the media to teach them? They will learn to be the ultimate consumer.
- Do you want them to learn about money from their friends? Peer pressure can be harmful to your wallet.
So before you begin your allowance program it is important for all family members to compare their values on the different aspects of money: earning, spending, saving, investing and giving. Each family member who will be involved in your kids and teens financial education should compare their feelings on money so you can show a united front. This means parents, grandparents, uncles, aunts and babysitters.
For example: If you feel strongly about having your child save up their allowance and birthday money to buy a big ticket item, all family members need to be on board with the decision. Otherwise, a well meaning grandparent may unknowingly buy the item and cancel out your lesson!
If one of your New Year Resolutions is to start an allowance program, then begin with your family money values. It’s the best way to insure success.
As for my New Year Resolutions, I have the standard get more exercise and spend more time having fun with my family and friends but my big one for the year is completing my eBook on what makes a successful allowance program – I’ll keep you posted on my progress!
Dec 21, 2010
‘Tis the season…
Celebrate the season with these money quotes:
“Time is more valuable than money. You can get more money, but you cannot get more time.” - John Rohn
“Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it makes one.” - Benjamin Franklin
"For I don't care too much for money, for money can't buy me love." - The Beatles
"A penny saved is a penny earned." - Benjamin Franklin
"The safest way to double your money is to fold it over and put it in your pocket." - Kin Hubbard
"Money will come when you are doing the right thing." - Mike Phillips
"Dogs have no money. Isn't that amazing? They're broke their entire lives. But they get through. You know why dogs have no money? .. No Pockets." - Jerry Seinfeld
"Early to bed, early to rise, keeps you healthy, wealthy and wise." - Benjamin Franklin
"Don't tell me where your priorities are. Show me where you spend your money and I'll tell you what they are." - James W. Frick
"Money will buy you a fine dog, but only love can make it wag its tail" - Richard Friedman
"It's good to have money and the things that money can buy, but it's good, too, to check up once in a while and make sure that you haven't lost the things that money can't buy." - George Lorimer
Have a wonderful holiday season!!
“Time is more valuable than money. You can get more money, but you cannot get more time.” - John Rohn
“Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it makes one.” - Benjamin Franklin
"For I don't care too much for money, for money can't buy me love." - The Beatles
"A penny saved is a penny earned." - Benjamin Franklin
"The safest way to double your money is to fold it over and put it in your pocket." - Kin Hubbard
"Money will come when you are doing the right thing." - Mike Phillips
"Dogs have no money. Isn't that amazing? They're broke their entire lives. But they get through. You know why dogs have no money? .. No Pockets." - Jerry Seinfeld
"Early to bed, early to rise, keeps you healthy, wealthy and wise." - Benjamin Franklin
"Don't tell me where your priorities are. Show me where you spend your money and I'll tell you what they are." - James W. Frick
"Money will buy you a fine dog, but only love can make it wag its tail" - Richard Friedman
"It's good to have money and the things that money can buy, but it's good, too, to check up once in a while and make sure that you haven't lost the things that money can't buy." - George Lorimer
Have a wonderful holiday season!!
Sep 14, 2010
Rich Kids
What does it mean to be “rich”?
If you ask Dictionary.com…
Rich – adjective
• Having wealth or great possessions; abundantly supplied with resources, means, or funds; wealthy: a rich man; a rich nation.
• Abounding in desirable elements or qualities: a man rich in kindness.
When my children were little they used to ask me if we were rich. I’d answer “Yes, because we have each other.” My babies are now teenagers and have bigger questions for me which has led me to think about how to raise my kids to truly be “rich”.
Last week I was doing some research on charitable organizations and I came across Stand Up To Cancer. Part of their mission states that their “goal is to bring together the best and the brightest” and to “encourage collaboration instead of competition” for cancer research. Like all charitable organizations, they need to fund raise to be able to reach their goals. It’s only when they have their financial needs met can the organization do their job effectively without any worries.
I had an “a-ha” moment. This is same for us as individuals. We can only reach our goals and have our dreams come true if we have our own financial life in order. This is what I want for my children, to learn how to confidently manage their finances so they will not have to worry about money. It does not mean that you need to have piles and piles of money or be a billionaire. Instead, it is about being in control of what you have financially. Only then will you be able to focus on your goals and dreams.
As you begin the fall season and new school schedules, make the commitment to teach your kids and teens to be “rich”…give them money confidence. By giving them the life skill of personal financial responsibility, you will give them the freedom to be “rich” in other areas of their life.
If you ask Dictionary.com…
Rich – adjective
• Having wealth or great possessions; abundantly supplied with resources, means, or funds; wealthy: a rich man; a rich nation.
• Abounding in desirable elements or qualities: a man rich in kindness.
When my children were little they used to ask me if we were rich. I’d answer “Yes, because we have each other.” My babies are now teenagers and have bigger questions for me which has led me to think about how to raise my kids to truly be “rich”.
Last week I was doing some research on charitable organizations and I came across Stand Up To Cancer. Part of their mission states that their “goal is to bring together the best and the brightest” and to “encourage collaboration instead of competition” for cancer research. Like all charitable organizations, they need to fund raise to be able to reach their goals. It’s only when they have their financial needs met can the organization do their job effectively without any worries.
I had an “a-ha” moment. This is same for us as individuals. We can only reach our goals and have our dreams come true if we have our own financial life in order. This is what I want for my children, to learn how to confidently manage their finances so they will not have to worry about money. It does not mean that you need to have piles and piles of money or be a billionaire. Instead, it is about being in control of what you have financially. Only then will you be able to focus on your goals and dreams.
As you begin the fall season and new school schedules, make the commitment to teach your kids and teens to be “rich”…give them money confidence. By giving them the life skill of personal financial responsibility, you will give them the freedom to be “rich” in other areas of their life.
Jun 21, 2010
Family Money Values
When I flipped open up my weekend edition of the Wall Street Journal, I was greeted with the headline “Is There a Cure for Financial Illiteracy?”
http://online.wsj.com/article/SB10001424052748703280004575309143171720002.html
In the column by Karen Blumenthal, she discussed what the US government is doing to help Americans become more financially wise – oh, the irony – our government offering financial education! She concluded her column by mentioning what we should be teaching our children.
This got me to thinking: Who do you want to teach your children about money?
Well, not the government, they are budget-challenged!
What about the media? The media teaches them to be the ultimate consumer. We live in a world where they see advertisements for all the latest toys and gadgets. They watch shows where people live richly and most likely beyond their means. They go to school and have peer pressure – who has the latest cell phone, designer clothes or shoes.
What about our school system? The educational system can teach your children economics and math – they may be involved in a “stock market game” in high school. But school only teaches book concepts at best.
The best teacher for your child is – you. Only you can tell impart the money values that you want your child to live by.
Take the time to think about the following topics that related to your own money values:
• Earning
i.e. get paid what you are worth, work hard for your money, enjoy your work
• Spending
i.e. make good choices, research prices, comparisons, look for good value, you get what you pay for
• Saving
i.e. save for a rainy day, save for big items, pay yourself first
• Investing
i.e. safety vs. speculation, learn your risk tolerance, understand what you are investing in
• Giving
i.e. importance of giving back to the community or organizations that mean something to you
Each family member will have different values on each topic so make sure you compare your feelings on each topic before sharing with your children. You want to show a united front. Taking time to do this will avoid conflicts within your family as you teach them about money.
So, is there a cure for financial illiteracy? Yes, and it starts with you and your family money values.
http://online.wsj.com/article/SB10001424052748703280004575309143171720002.html
In the column by Karen Blumenthal, she discussed what the US government is doing to help Americans become more financially wise – oh, the irony – our government offering financial education! She concluded her column by mentioning what we should be teaching our children.
This got me to thinking: Who do you want to teach your children about money?
Well, not the government, they are budget-challenged!
What about the media? The media teaches them to be the ultimate consumer. We live in a world where they see advertisements for all the latest toys and gadgets. They watch shows where people live richly and most likely beyond their means. They go to school and have peer pressure – who has the latest cell phone, designer clothes or shoes.
What about our school system? The educational system can teach your children economics and math – they may be involved in a “stock market game” in high school. But school only teaches book concepts at best.
The best teacher for your child is – you. Only you can tell impart the money values that you want your child to live by.
Take the time to think about the following topics that related to your own money values:
• Earning
i.e. get paid what you are worth, work hard for your money, enjoy your work
• Spending
i.e. make good choices, research prices, comparisons, look for good value, you get what you pay for
• Saving
i.e. save for a rainy day, save for big items, pay yourself first
• Investing
i.e. safety vs. speculation, learn your risk tolerance, understand what you are investing in
• Giving
i.e. importance of giving back to the community or organizations that mean something to you
Each family member will have different values on each topic so make sure you compare your feelings on each topic before sharing with your children. You want to show a united front. Taking time to do this will avoid conflicts within your family as you teach them about money.
So, is there a cure for financial illiteracy? Yes, and it starts with you and your family money values.
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