How to Talk With Your
Kids About
Investing for the New Year!
The New Year is here and it’s time to
do something NEW! Teach your children about investing, Below is a
conversation you can start with your kids today.
How about investing in something that has a chance to grow right
along with you? When you purchase a stock you are buying a little
piece of a company, which is called a share. And that makes you a
shareholder.
Imagine the items in your room… the clothes you wear, games you
play, even the items you like to eat are all created by companies,
that you can own stock in, which is a share and makes you a
shareholder!
Every time you purchase one of these
items you would be helping the company you own a share of, which
helps increase their profit, which in turn helps your stock go up in
value. And makes more money for you! Got it!
But a word of caution, you must research the companies and make an
educated decision on the companies you buy. There have been
companies in the past that have lied about their earnings or have
gone bankrupt and people who owned stock in these companies lost
their money.
There are no guarantees in investing. But always remember the
sayings below…
If it sounds to good to be true it probably is… Don’t take a stock
tip from someone who has less money than you!
Don’t put all of your eggs in one basket… Don’t put your all your
money in one place; spread it around in different investing options.
You will miss 100% of the shots you never take... Stop waiting for
the perfect time, take a small amount of money and start investing
today!
Warren Buffett, who is one of the greatest investors of our time,
has two rules on money!
Rule #1 don’t lose your money.
Rule #2 don’t forget rule #1.
Wishing you a Healthy, Happy and Prosperous 2010!
"How to Be A Debt-Free Santa"
We have all been affected by the economic downturn in America. We
are checking our kid’s "Dear Santa" list, scratching our heads and
wondering, "How am I going to afford the mortgage, let alone little
Johnny's wish list? I have been implementing several family
traditions over the last five years and have found that theses tips
will help take the emphasis off the money, and place it where it
belongs, in the holiday spirit of Christmas and the holidays. Here
are five practical and fun suggestions that any family can utilize
for quality holiday time with family, without a quantity of bills
come January.
1) PASS THE RUBBER CHICKEN PLEASE!
A long-standing and treasured hilarious tradition in my
family has been passing along the same Rubber Chicken, with special
additions created by family members, which reflect the gift
recipient's year.
I believe every family with kids should have an inexpensive and
preferably funny holiday tradition that the kids and adults look
forward to experiencing annually. And even if you have a normal
tradition such as exchanging ornaments, get creative in searching
out that one-of-a-kind piece.
One great way to decide on your annual holiday tradition is to ask
your kids what they most remember about Christmas last year. If it
was going out and getting the Christmas tree, then perhaps your
tradition is a tree-trimming party. If what was most memorable was
going out to breakfast in new flannel pajamas on Christmas morning,
perhaps there is now the annual Christmas Eve gift of new pajamas
for everyone.
2) GIVE THE GIFT OF GRATITUDE NOT
GUILT.
Family members can give a group gift instead of individual
gifts. For example, save money by getting one gift for Dad that's
from mom and the two kids-or a gift for each of your two children
that is from mom, dad, and grandma, and grandpa.
Holiday fun can quickly turn into holiday remorse if family members
try to one-up each other on the gift-giving.
If individual gift-giving is practiced, make it an even playing
field when buying gifts for kids, setting a dollar limit that
cousins, grandpa, aunts, siblings, etc…can spend on the children.
Tell children that the most important thing is that you are together
as a family; model gratitude for your children by placing a priority
on connection and spending time with each other rather than a
frenzied focus on what we're getting each other for Christmas.
3) HAVE A CHRISTMAS BUDGET
FAMILY MEETING.
How many times has the reasoning behind your child's Christmas list
been “Dear Santa: I don't know why I want this but I just do!”???
You must investigate why your children are asking for certain items
in order to determine what's really important to them and what will
work with your budget.
If you plan a family meeting where you are going to be open and
honest and talk to your kids about having to scale back on holiday
purchases, you're teaching them self-discipline and you can discuss
the bigger picture of what you want as a family. Wouldn't it be nice
if we could spend more family time versus working harder to pay off
our Christmas purchases?
Kids have plenty of creative ideas and it can empower them and make
them want to get on board when you ask, "What do you think we can do
to get out of debt, or not go into debt, as a family this year at
Christmas time?”
Make a Christmas list right after Thanksgiving, during that biggest
shopping weekend of the year, and then put it away for a couple of
weeks. When you as a family revisit the list, and narrow it down to
the 3 things your kids really want.
Then, talk to them about why they want this…what's so special about
this…it doesn't hurt to quiz them a little to understand if it's
truly something they can't live without.
4) TEACH CHILDREN THE MEANING OF A “WE”
NOT “ME” CHRISTMAS.
The holiday season is a wonderful opportunity to teach
children about the power of giving of themselves to help others.
Inspiring children with the story of Kris Kringle, a child who liked
to give more than he liked to receive is a great start. Explain to
your children why it's important to give to others as a family and
select a charity that you want to support, either with your time or
money or both. Make it a family weekend project in November to start
collecting hand-me-downs from everyone's closets that you plan to
give away to charities at Christmas.
5) THE MORE MINI-MOGULS, THE MERRIER.
When you buy a financial investment for your children, it is
a gift that can educate your children as well as entertain them
forever. Children have the gift of time, and there is no better time
then now to invest in your child’s financial future. Children very
rarely remember the gifts, but for years to come they will be
thanking you for investing in their financial future. Family members
can open a high interest savings account, like ING DIRECT’S Orange
savings. Sharebuilder for stocks is a great way to get kids started
in buying individual stocks through dollar cost averaging. Start
teaching children the value in saving and investing money early,
because as we have learned over the last year, when you have the
security of money in the bank…that is your number one asset.
Wishing you a very prosperous
holiday!
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
New
Kids Tees!
Prosperity4kids launches a
brand new t-shirt line for
kids, which teaches the true meaning of wealth!
Kids have proven they are smarter with money than adults and now
they can wear it for all to see!
Gandhi says, “If we want real peace in the world we must start with
the children” this same philosophy applies to money. The best way to
avoid another financial crisis is to educate our youth on what to do
with their money now and in the future.
We are all born with money personalities, and the sooner we
recognize it the better! So what are you? Spender? Saver? Giver? Or
an Investor? Success has a combination all all four. No matter what
money personality you have, if you can add a little of each element
you will have the ingredients to create true wealth.
Children have the gift of time to become mini moguls, the natural
born instinct to share the wealth and the ability to become and grow
wiser with money. But only if we give children sound financial
lessons early in life.
Oak Park mom's Charitable Work Leads to Friends in High Places
Her charitable work with Grammy-winner Chaka Khan and others led Oak
Park resident Lori Mackey to Times Square in New York City last
month, where she and Khan rang the bell to open the stock market on
Aug. 11.
The bell ringing brought attention to the Chaka Kahn Foundation,
which helps at risk, underachieving children reach their educational
and life goals. Mackey’s work teaching children to be financially
literate and responsible consumers complements Kahn’s mission.
Mackey opened Prosperity 4 Kids in 2003 to teach her children,
Briana, 16, and Devin, 13, how to work hard, save money and reach
their goals. Her signature products—a four chambered ceramic piggy
bank and the book “Money Mama and The Three Little Pigs”—led to
other games and products that stressed Mackey’s “10101070”
philosophy of saving and spending money earned through an allowance.
Each of the three smaller chambers in the bank are designed to hold
10 percent of a child’s allowance for charitable donations, 10
percent for investments, 10 percent for savings and 70 percent for
everyday expenses, Mackey said.
Mackey met Kahn through working with Bear Stearns and Chris Gardner,
a homeless man who became a self-made millionaire as a stock broker.
Gardner’s memoir, “Pursuit of Happiness” was made into a feature
film with actor Will Smith.
Gardner and Stearns launched a program to provide inner-city
children with experiences to demonstrate that they could work their
way out of poverty with education and perseverance. Kahn’s
foundation was involved in the program.
Mackey and Kahn decided to work together to help children reach
grade-level proficiency in all academic areas. Middle school
students are bused to USC twice a week for tutoring to “bring them
up to speed,” Mackey said.
The tutoring sessions became a way to help students understand the
importance of financial responsibility, Mackey said. A financial
literacy component has been woven into the program.
“You can be educated, but without education in money you’re still
going to have problems,” Mackey said, adding that she is working on
a financial literacy curriculum for public schools.
“I used to think it would be nice to teach kids about money— now
it’s mandatory,” Mackey said. “Schools want it but are struggling
with ways to implement (programs). We can do it through after school
programs and (in) different ways without it being on the exit exam.”
Kahn and Mackey will integrate healthy living into school programs
and show children the connection between all kinds of behavior.
“If you get good grades and don’t have financial literacy you will
fail,” Mackey said. “If you get an education and understand money
but don’t eat right, you’re going to get sick.”
The multipronged approach aims to help children reach their full
potential so “they can become whatever they want to be and have the
tools necessary to attain (their goals).”
Mackey said that in the real world no one will ask for a student’s
report card when they’re seeking a job or buying a home. They ask
for your credit score,” she said.
The Mackey children have been living with financial accountability
all their lives.
“They understand money and what to do with it,” Mackey said of her
two teenagers. They earn money by doing chores and then split their
earnings into separate accounts—for savings, investments, movies,
etc.
“They can save for anything they want,” Mackey said. “They know
money doesn’t fall out of the sky.”
Devin earns spending money by washing the family’s cars and dog.
Brianna likes to earn her keep by cleaning the house.
“It takes a couple of hours, and I get $30 every time,” Brianna
said.
Briana said she has learned from her mother how to spot the best
deals and winning investments.
“I’ve been saving for a long time,” Briana said. “I want to travel.”
Because of the new laws in the Consumer Product Safety
Improvement Act retailers are
choosing not to offer Back to School List in their stores, for fear
of being fined for suggesting items to children under 12 that
contain certain amounts of lead, or phthalates. For 16 years I have
used a list to buy my kids supplies, and when you don’t have a list,
you tend to over spend. Back to school shopping is the second most
expensive time of the year behind the holiday season; the average
family spent $600 on back to school supplies in 08 totaling $54.1
billion on items for school, clothing and college. Walking into any
store without a list is prime for over spending, to help we have
created a typical printout for essential Back to school items you
use in grades 1st-12th grade.
Just click here
Starting now will save time, money and the stress of over spending
with Back to School ...Here’s how...
First, using the printable list take inventory of reusable supplies
at home leftover from last year, pack them away, check these items
off your list and keep this list with you in your purse.
Second, all the stores run online weekly ads from Sunday to Sunday.
Sign up for the email alerts and check what is available on your
list before going to the stores. No need to go shopping if the
stores don’t have what you need.
Techbargains.com has coupons for the
stores below and many others.
Staples – Has a sneak peak of the
week ahead and special saving on back to school items, example: 1”
Avery Eco-Recyclable binders for $1.98, Dollar Days and Teacher
Appreciation day, where the teachers can come in and have free
breakfast and receive a free gift.
Office Depot – Offers Mobile Alerts
where you receive offers sent to your cell phone, of what’s on sale
right now, Example: Black Sharpie’s 12 packs for $5.99, split with 3
friends and each Sharpie is a steal. 5% back to schools program and
a Star Teacher Program, with rewards.
Target – has school supplies out
already and I picked up 24 packs of crayons for .24 cents, 4 college
ruled multi pack of notebooks for $1.47 and college ruled paper for
.57 cents.
Thirdly, visit
A2zdeals.com and down load coupons
from your favorite department stores. Take inventory of your child’s
clothing and only purchase what is needed to start school, no need
to buy a wardrobe before school starts, styles change quickly and
one or two outfits are plenty to start off with. The weather stays
warm into October, making summer clothes last longer. Buy just the
basics, my family loves the KB socks from
Costco, can’t beat 9 colorful pairs
for $9.99. Buy one bunch and your set for the start of school.
Starting early will save a substantial amount of money. Waiting till
the last minute will cost you more money and time trying to find
certain items in stock. Starting now will insure that every one in
the family starts school with what they need, less stress and more
money in the bank.
The Power of Earning! NEW E-Book
Summer is here, kids are off school
and looking for something to do… how about helping kids open, run
and operate their very own business. Kids can earn profits way
before wages and with the tight economy and job market, now is the
time to help kids learn how to earn!
We have developed a Mini Business Plan in Our Show Me the Money
E-Book Series, which helps kids take their talents, passions, and
strengths and start businesses earning money doing what they love to
do!
Kids will experience how to create a business plan, marketing plan
and how to find their perfect customer, in an easy step-by-step
process.
This outline is designed to encourage creativity and allow your
child to see all the possibilities they have within themselves to
implement a successful business.
We have even included several templates for tracking income and
expenses and how to read their own income statement!
This will foster confidence and teach important life skills about
leadership, pride and the value of a dollar!
“A New Era of Responsibility”
We have experienced first hand what happens when people are
irresponsible with money, this irresponsibility took the world to
its knees, and every person has felt the effects around the world!
I know we will come out of this stronger and wiser just as we have
in the past. But… no more… business as usual, I’m too busy or I
don’t have time. From this day forward you must be responsible for
anything that will affect your future and your families future.
Gandhi says, “If we are to have real peace in the world, we will
have to begin with the children.”
The same applies with money. We must start when our children are
young teaching them the basic foundations necessary in understanding
money. Just as we do with ABC’s, 123,s and sharing is caring.
(U.S. Treasury
Department Releases) Financial Regulatory Reform
Over the past two years we have faced the most severe financial
crisis since the Great Depression. Americans across the nation are
struggling with unemployment, failing businesses, falling home
prices, and declining savings. These challenges have forced the
government to take extraordinary measures to revive our financial
system so that people can access loans to buy a car or home, pay for
a child's education, or finance a business.
We must act now to restore confidence in the integrity of our
financial system. The lasting economic damage to ordinary families
and businesses is a constant reminder of the urgent need to act to
reform our financial regulatory system and put our economy on track
to a sustainable recovery. We must build a new foundation for
financial regulation and supervision that is simpler and more
effectively enforced, that protects consumers and investors, that
rewards innovation and that is able to adapt and evolve with changes
in the financial market. To
see the full Story Click Here
It's Only a Dollar... Until You Add to It! Allowance Chart/E-Book
We had so much response on Allowance for kids we have developed a
new Allowance E-Book, with an Interactive Chore Chart that can be
printed right from your computer for each child! Now with school
almost out, this is the perfect time to teach your child how to
create a work ethic, become responsible and earn their own money!
Click here for details
I am a contributor to a new Financial Website
called FiLife and we are asking what the average parent spends on
the children on a weekly basis for un-necessities.
We are going to publish the results at the end of summer. Let us
know your answer!
My daughter just turned 16, and the
first thing she wants this summer is get a job! I didn’t have the
heart to tell her according to the Bureau of Labor statistics, the
teenage unemployment rate is 21.7 percent, up from last year's 15.8
percent -- the highest rate in nearly 20 years.
She loves to earn money and has been working odd jobs since she was
12. Now wants a real job, as she states, 'to meet new people and
experience what it’s like.' So I sat with her, and we went over
several ways she can set herself apart from the rest of the
applicants vying for the same position.
First, I was extremely honest and explained that the job market will
be tough, but not impossible, and she will have to show the employer
beyond a reasonable doubt that she is right for the job. I asked her
simple questions like, "Why should they hire you?" and "What do you
offer that others don’t?" We talked a lot about defining her strong
points. If your child can answer these questions positively and
confidently, then they will have a greater chance of landing the
job. Explain to your child they must create value for the employer
-- they must be an asset and not a liability.
Many employers' biggest complaint with young workers today is their
lack of work ethic. It is important that we explain to our children
that slacking off while on the job will get them fired.
Next I asked, “What are you good at, what do you enjoy and where do
you see yourself working?” My daughter is health conscious and
explained to me that fast food probably would not be her favorite
environment, but gyms and healthy restaurants would. It’s important
that we help our children look for a job in an environment they
enjoy.
I also asked her what she sees herself doing in the future. She
loves being healthy and is interested in sports nutrition, sports
medicine, and psychology, which open a different area of internship
positions. These can give her insight to the job or profession she
might want to pursue.
Encourage your children to look in an area that is interesting and
something they enjoy. Their first job can be a stepping-stone into
their future career. Testing out what you think you might want to do
can save your kids many years of wasted time. My daughter thought
she wanted to be a soccer trainer, a coach or a director of a club,
but after two years of training youth soccer from ages 13-15, she
realized it was not for her. There is nothing better than on the job
training in an environment you might be interested in, and it can
open doors down the road.
Children do not have to decide what they want to do just yet, but
doing what you love and earning an income is a wonderful way to
start.
New Interactive Website for Kids
I just reviewed
ING DIRECT’s
new kids' website called Planet
Orange. It is awesome -- and every kid and parent should check
it out. I signed up and went through it as a kid would, and as you
probably know, I am still a kid at heart. I also have the attention
span of a nat! So if something can keep my attention, then it has a
great chance at keeping a kid's attention.
The site is fun, educational, and has the right amount of play and
learning mixed together. The kids can design their outfits, skin and
hair color and pick out really cool accessories. There's a twist of
course, because the outfits aren’t free, and they have to be
purchased with Obux (Planet Orange's currency). Kids learn how to
budget and are rewarded for finishing certain tasks and lessons.
You go on a mission through the concepts of earning, investing,
saving and spending wisely. None of the lessons are too long or
wordy. The characters, props, and towns are fun, colorful and
engaging. At the end of each adventure there is a fun and quick quiz
to review -- the repetition is great for reinforcing the concepts.
You can also purchase games with the Obux you earn. My son came home
while I was playing “The Great Orange Escape,” and his first
response was, “Wow mom, let me show you how it’s done.” He must have
played it for 10 minutes straight, which is amazing considering he
has my attention span.
I rate this website a 10: it gives the kids the most important
lessons in money, without too much wording, reading or work.
This website is designed for 1st through 6th graders, that range is
the most important time to teach kids about money. Don’t get me
wrong -- it's never too late to teach anyone, including adults,
about money. I didn’t even realize I had a problem until my late
30s. The sooner you create good habits, the fewer bad habits you
will have to break later in life.
Kindergarten through 6th grade is all about creating foundations for
kids, as they learn the three Rs, build character and create their
life long habits. This age group has the most amount of parent
participation in school, kids usually have one teacher for the day,
and if kids start at this age learning how to save and invest their
money their financial futures will be set. Imagine where you would
be right now if you became educated in money and started saving and
investing at a young age?
Times have changed, and in the last year they have changed
drastically throughout the world. So we have to become proactive in
teaching one of the most important life lessons of all: money.
Breaking the cycle of financially illiteracy, starting with our
kids, will be the best defense we have in protecting our own
financial futures and our children’s as well.
Disney Teaches Kids About Money The Epcot theme park in Orlando
Florida opened up an exhibit with interactive games aimed at
teaching kids ages 8-13 basic lessons in money! Saving, investing,
goals and inflation. If you cant make it to Florida they have an
online game you can play. Piggy Bank Adventure It takes place in a
small town called fiscalville... It's great, I love anything that
teaches kids about money! The project was sponsored by T. Rowe Price
and has been in the works since 2006. I must say the time could not
be better ;)
Piggy Bank Adventure
Engaging Kids Early is Key
A parent said to me, "My kid is too young to worry about money. I
don’t want to burden them with money just yet." I bit my tongue and
thought, 'Wow is that child headed down a rough financial road.'
Money isn't a burden or a worry unless you don’t have it, and for
that reason the sooner a child understands the value of money the
better. We all know that your habits, beliefs and attitudes start in
childhood. So why don’t we teach children about money and create
good habits as early as possible?
We introduce concepts in kindergarten like sharing, ABCs and 123s,
so why introduce the concepts of money? Children have the greatest
gift of all: Time + Money + Compound Interest = an MBA, or Massive
Bank Account!
We can show our children from an early age the more you learn about
money, the more you earn. Use any online calculator and you will see
that one dollar a day invested at 10% grows into $1,948,552.07 by
age 65.
With that in mind, start an online savings account the day your
child is born, or as soon as possible. My favorite is
ING DIRECT’s
Orange Savings Account. Based on the figure above take $30 a
month and automatically have it transferred from your checking
account to your child’s savings account monthly.
At the same time open an online investing account. I have
Sharebuilder accounts for the kids and myself. This is a great
way to start investing with small amounts of money. You can take the
$30 from above and divide that into $15 for savings and $15 for
investing. You can invest the $15 in any stock you would like.
Remember there is a small fee to buy a share of stock.
Sharebuilder has many articles to help you get started. If you
start investing the day your child is born and enlist the help of
your family and friends in the process, you will be amazed on how
fast your baby’s investments will grow.
Ask the grandparents and family members to help you in securing your
child's financial future, instead of buying your child gifts, toys
and clothing. If they insist on a purchase, then ask them to split
it and buy a smaller item and give you the rest to invest!
Then once your child is old enough to start learning about money --
which can be as young as two years old for understanding savings and
five years old for investing -- you can sit with your kids and show
them their accounts online. Kids get excited when they see their
money growing. Then your child will understand that saving and
investing is just what you do with a portion of your money.
If you spend the first 18 years of their life teaching them how to
manage, understand and grow money, you will have taught your child
one of the most important life lessons they will ever learn. This
will truly set your children on the road to success and wealth, and
secure their financial future.
Through the month of
April Kijiji.com & Prosperity4Kids, teamed up to spread the word
about kids and money, we ended up doing interviews from L.A. to
Chicago and everywhere in between. Listen to our latest interview on
Kids and Money with Bob McCormick from KNX 1070 Money 101.
Kijiji is a free local family-friendly classified site that has just
about everything, but personals! Kijiji found that the average
household has over $600.00 of unused items. Now is a great time for
some spring cleaning and teaching your kids how to earn some extra
income! Help your kids identify items around the house and then take
digital pictures of each item and upload them to the site. This is a
perfect way for kids to see that there are other ways of earning
money. If these items do not sell then you can donate them to a
local shelter or charity.
The Smarter Way to Pay an Allowance, When? Why? & How Much!
Allowance is one of the best tools for teaching your child the value
of money. It can create good habits, break bad habits and change
behavior. Don’t think of allowance as “Paying Your Kids” -- think of
allowance as a tool for teaching financial literacy and an
introduction to the wonderful world of money.
Children can start earning an allowance as soon as they know money
gets them what they want. This depends on the personality of your
child -- if at age 2 he wants anything and everything in sight, then
it's time for some money lessons. If your child has little or no
interest in wanting everything they see, then they are not quite
ready for the fundamentals of allowance.
The amount you pay a child depends on the family income, not age or
ranking. Think back to all of the things you bought your child in
the last month that was not a necessity. Add up things like candy,
videos, toys, CDs, trinkets and other extras. This will be the
amount you should allow your child to earn throughout the month. It
won't cost you any more money and may even save you some money in
the long run.
Next, sit with your child and explain that they are going to start
earning an allowance for certain chores, and from now on they are
going to use their own earned income to buy the items that you used
to buy for them.
Allow your kids to earn money for anything that they are not doing
right now! If your child is not making their bed, brushing their
teeth, or cleaning their room, start with that. Experts say it takes
21 days to create a habit. Once your child gets in the habit of
doing those chores automatically, you can stop paying for the
previous chores and move on to other things like cleaning the
bathroom, laundry, etc.
The next time you are going out into the market place, remind your
child to bring their money. Now they will purchase the items you
used to buy for them. You will probably find that your child will
make better choices with their money versus your money and will
probably think twice before letting go of their cash. If they find
something they want, encourage them to do some research to find the
best price. I always have my children visit
Kijiji.com, which is a free,
family-friendly, classified website. Your child will start to see
that sites like these are full of items they might want, but they
will also see this as another way to earn money by selling items
that they have no use for anymore.
You can help your child understand that there are several ways to
earn money besides allowance and open their eyes to the wonderful
world of money. To receive your free guide on Allowance... click
here The Smarter Way to Pay
an Allowance
Kids are savvier with
money than adults! I know you know this and I am excited for you
because your children are ahead of the game!
I wanted to share this survey with you, because I know you will see
the value in the information and as Schug says, you have every right
to ask your school to incorporate financial literacy into the
classroom curriculum!
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Kids
savvy about money, Northwestern Mutual survey finds
By Megan Hupp
Posted: Apr. 15, 2009
Parents looking for the recession's silver lining, take heart. Your
kids are savvier about money than you are, according to a
Northwestern Mutual Foundation poll released Wednesday.
The foundation, the charitable arm of Northwestern Mutual Life
Insurance Co., surveyed 1,600 kids and adults via TheMint.org, a
financial literacy Web site, between Jan. 8 and April 4. The survey
found that respondents 17 and younger are more likely to save their
money than adults 30 years and older. Young people are also less
likely to charge credit cards with purchases they can't afford.
When asked, "If you spotted a great item at the mall that you
couldn't afford right now, what would you do?" 57% of respondents 17
and younger said they would "put money aside each month until I have
the full amount to buy it."
Only 6% said they would charge the item to a credit card.
Asked the same question, 42% of respondents ages 30 to 45 and 41% of
respondents ages 46 to 59 said they would save for the item. Of the
30-to-45 group, 14% said they would purchase the item with a credit
card while 10% of the older group said the same.
The poll is part of a series of surveys on kids and money
management. When asked how it feels to borrow money or charge a
credit card, 14% of kids said they feel extremely nervous about
debt. Only 6% of respondents over 30 felt the same.
The data confirms historical evidence from the Great Depression and
World War II that hard times breed more careful consumers.
"Kids today could become the most money-smart generation since the
1940s," said Meridee Maynard, financial literacy expert and senior
vice president for Northwestern Mutual, in a statement.
During the 1940s, the personal savings rate was around 25% in the
United States. But between 2005 and 2008, the rate was about 1% -
and in some quarters dropped into negative numbers, meaning
Americans spent more than they saved. By January of this year, the
savings rate had risen to 5%.
Mark Schug, professor emeritus at the University of
Wisconsin-Milwaukee, said the savings rate isn't a foolproof measure
of what's in Americans' savings accounts. But kids, he said, do
mimic the saving and spending habits of their parents.
"When they see their parents act in a more frugal way, that's
influential," said Schug, who is also the former director for UWM's
Center for Economic Education.
Adult problems like job loss or salary freezes affect the entire
household, Schug said, and children are often acutely aware of their
parents' financial situations. Parents should talk frankly to their
kids about spending, investing, saving and charitable giving.
Historically, kids learned such lessons in school. In today's
economy, parents should expect a push to bring back financial
education, he said.
"Parents can talk to their school about a place in math or social
studies curriculum where lessons on basic economics and personal
finance could be included," Schug said.
12 Parenting Tips for
Teaching Money in a New Economy
Few adults were taught
about money as kids, but, as parents we cannot afford to leave this
life lesson to chance. On the positive side of the economy many
people are saving more, making smarter choices and thinking twice
before spending. Now is the perfect time to start teaching your kids
money concepts. Below are 12-tips which teach “How To” explain money
concepts in ways that kids and parents can understand and practice
in their daily life.
Tip # 1
Engaging Kids Early About Money is Key!
We introduce concepts
like sharing is caring, ABC’s and 1,2,3s in Kindergarten how about
introducing the concepts of money? Children have the greatest gift
of all TIME + MONEY + COMPOUND INTEREST = MBA Massive Bank Account!
We can show our children from an early age the more you learn about
money the more you earn, check it out…One Dollar a day invested at
10% grows into $1,948,552.07 at age 65. Spend the first 18 years of
their life teaching them how to handle, manage, control, understand
and grow money. This will truly set your children on the road of
success and wealth and secure their financial future.
Tip #2
“Kids can Earn Profits way before Wages”
Free, family-friendly local
classifieds site, Kijiji.com, found
the average household has 35 unused items worth about $670. This is
a perfect time for some spring-cleaning and allowing your kids to
earn some money. Help your kids identify items throughout the house,
garage and even outside in the yard. You can sell just about
anything; your junk is another’s treasure. This will also show your
kids that unused items still have value and can be put to good use,
whether they are sold or donated.
Tip #3
Re-Use-Re-Think- Recycle!
The majority of wealthy people do not
waste their time, resources or money, they naturally keep items as
long as possible, think about purchases and recycle everything
naturally because they are not wasteful. Our world and our resources
will last longer if we follow these principals. Teach your children
to use items till they no longer have use for them, not because Joey
down the street just got the latest and greatest. Take a moment and
think about every purchase and know why you are buying the item. And
make the effort to recycle everything that you possibly can. This
will automatically teach your child how to be a wise consumer in all
areas.
Tip #4
The Smarter Way to Pay an Allowance, When? Why? & How Much!
Allowance can teach children how to be responsible, independent and
how to value money. Allowance can create good habits, break bad
habits and change behavior. Don’t think of allowance as “Paying Your
Kids” think of allowance as a tool for teaching Financial Literacy
and an introduction to the wonderful world of money. Children can
start earning an allowance as soon as they know that money gets them
what they want… this depends on the personality of your child, if at
age two he wants anything and everything then its time for some
money lessons. The amount you pay a child depends on the family
income not age or ranking. Take what you are already spending on
un-necessities and allow your child to earn that amount, and then…
he uses his own money to buy the items you used to buy for him. I
guarantee he will make better choices with his money verses your
money.
Tip #5
Never Spend the Whole Dollar!
Now that your kids are earning money you must then teach them what
to do with that money. The sooner your child applies this the
better, we have proven as adults, you cannot create wealth by
spending 100% of what you have. Teach the 10/10/10/70 concept… out
of every dollar, children ‘PAY THEMSELVES’ FIRST! If your child
practices this concept you will guarantee a bright financial future!
10 cents out of every dollar is set aside for savings, 10 cents is
set aside for investing, then 10 cents for giving and your child is
able to spend what is left over which is 70% or 70 cents. When your
child practices this with every dollar they will create the habits
of wealth and build secure financial futures. Creating the habits of
saving, investing, giving and spending wisely will become as natural
as walking and talking!
Tip #6
Research, Compare and Delay!
Our children have
grown up in an instant gratification world, they don’t wait for
anything, between texting, the internet and fast food, children
today have little experience in delayed gratification. By teaching
your kids to research the items they want, compare the items price
and read the comments and ratings, children will start to understand
how to make educated decisions and better choices. If my son wants
to buy an item, he has to research it online before he can purchase
it. In doing so, 9 times out of 10, he realizes the item was not all
it was cracked up to be. When he does purchase the item, he knows he
has made an educated decision based on facts and research.
Tip #7
Watch What You Say, about Money!
Money is a piece of paper; it is your
attitude, belief and habits about money that determine your success
or failure in money management. So when talking to your kids ‘Keep
it Positive”, never say “we can’t afford it”, “we don’t have any
money” even if it’s true, a more positive response is “It’s not in
the budget right now, we are making different choices with our money
right now, we are setting more money aside for savings right now…ect.
Can you remember what you were told about money as a child? If so,
know that your kids will remember also.
Tip # 8
Talking About Money Eliminate F’s in Finance!
Our children are graduating with below failing grades in basic money
management, says Jump$tart Coalition. The financial crisis could
have been avoided if more people understood money and finance. As
parents we have to start educating our children in money, we need to
incorporate money lessons into everyday activities. Have a family
money night, have your kids ask you questions, if you can’t answer
it-research it! Have a money scavenger hunt, play Monopoly…make a
huge effort to teach and educate your children in Money, because if
you don’t someone else will. The more you talk about a subject the
more comfortable and the more educated you become on the subject…
make money a topic of conversation so you and your kids can become
comfortable with money.
Tip #9
Master Cash before Credit!
Kids believe it is easier to buy with credit then with cash states a
Charles Schwab teen and money survey… it hurts to give someone
$100.00 bill and get no money back, but there is no pain in giving
plastic. Kids cannot learn to run before they walk and kids should
NOT be using credit cards unless they understand cash. Rule of
thumb, your child must read the fine print, know all the fees,
understand the interest rate of a credit card and be willing to pay
it off in full before they should be aloud to have one. If it is a
must then start your child off with an ATM card tied to a checking
account and a set amount that they can spend for the month.
Tip #10
- Set Goals As A Family! Surveys have proven that people who
write goals down have a higher achievement of success. Why… because
goals are a plan, teaching your child to set goals, take action, and
work for results is essential to your child’s future successes. Sit
as a family and each write out one goal you would like to attain
this month. When you do this as a family each family member can help
the other in attaining the goal they have written down. Setting a
goal and attaining it can be the happiest moment, there is nothing
like achieving exactly what you want. When a child realizes the
power of goals, anything is possible.
Tip #11
- It’s the Little Things that Add up to Overspending!
We always complain
‘Where did all the Money go?’ No one likes a budget, but everyone
needs to know where the money goes. Rockefeller paid his kids an
allowance and he made his sons account for every penny they spent.
Have your kids account for every penny that comes in and goes out,
teach your kids to keep receipts and create a log of all income and
expenditures. Practice this for a while and like everything else it
will become natural and you will know off the top of your head were
the money is going.
Tip #12
- Let Your Kids Make Money Mistakes When they are Young!
Now that your child is earning money,
feeling good about the wad in the pocket, let them spend their 70%
on what they want as long as it’s in alignment with the family
values. You will have to bite your tongue, but remember the more
mistakes they make with $10 toys that break on the way home, the
more your child will learn the value of their money. Over time they
will get tired of wasting their hard earned money and make fewer and
fewer mistakes. You will see your child look for quality in the
purchases they make and value the items they purchase.
April is "Financial Literacy Youth Month!"
April is upon us and I am looking forward to spring, and spring
break so I do not have to make sandwiches at 7 am for a week!
I am having challenges with my website excepting documents, so as
usual I found another way around it! I created a Blog which I can
put the newsletters and just about anything else I want up there. We
are creating a new activity book for kids and as we are working on
it I will be sending you ideas in the form of a newsletter for kids.
http://www.teachingkidsmoney.com
The biggest complaint from parents is starting the conversations
about money, so we are going to start it for you, all you have to do
is print these out, bring them in the car, appointments, waiting for
practice, ect. You can say... Hey I found this online and I thought
you might like this... depending on your child's age,
you can do the activity with them or let them do as much as possible
and jump in if needed.
The objective
with these activities is to get the conversations going...
get the
imaginations working... and teach different concepts of money at the
same time!
I would love
your feed back on the activities and information so we can make this
book the best book ever!
If any of the
activities are favorites let us know and your child's name will be
printed in the book as... Joey Smith's favorite activity! and a
quote of what they thought of it. If there is any questions
your kids have let us know and we will answer them in the book!
What I spoke of
above will not be mentioned in the blog...this is offered to
subscribers of the newsletter and our customers. If you would like
to pass the info on to friends and family feel free!
Enjoy and
wishing you a wonderful Easter, Spring Break and Much Prosperity!
P.S.I
almost forgot, the answers to the activity is not in the activity
section it is a separate area of the book. I will post that on the
blog also.
Rules of Money Every Parent Should be Teaching their Kids!
First off I know it’s hard to teach
your kids about concepts you don’t know yourself, but after the last
year, it is obvious children should not follow down the same path as
adults! One thing for sure is, we must teach our children… question
things that don’t seem right, if everyone else is doing it…DON’T.
Everyone knew that the loans, 100%
financing and low interest rates were to good to be true, but took
part in it anyway. Unfortunately the people who convinced everyone
to take part in this baloney will not be held accountable, and the
unfortunate homeowners are losing their homes, paid too much or have
lost massive equity. By experiencing it first hand in 06, the little
knowledge I did have was enough for me to figure out that these
crazy deals were not realistic or in my best interest, even through
everyone around me was saying it was ok! Now… I teach my children, just
because someone is of an authority figure, (bankers, mortgage
brokers, investors, lawyers, ect) does not mean they will tell you
or do what is in your best interest. You must become educated in the
areas that will affect the rest of your life!
And money is on the top #1 List of items that you must become
extremely educated and knowledgeable about… just look at the state
of our economy, stock market and the housing market. This mess was
driven by greed, but would of never happened if individuals were
educated in money.
So…here is some really good news, I will walk you through step by
step of how to teach your kids about money and below is your first
step in changing not only your child’s financial future but your own
as well…
1. Not Talking to Your Kids About Money is Detrimental to Their
Financial Future!
Talk about Money as Much as Possible … just think it's mandatory
that we attend school for 12 years to learn how to read, write and
understand arithmetic. But nowhere in the equation are the concepts
of money taught!
And here is the kicker… A’s in school and F’s in finance will land
you in the poor house.
Money beliefs and habits start extremely young.
In the Past…Parents used to teach children that money got you
materialistic items.
Present and Future…Teach your children that money offers you three
things in life, Choices…Security…and Freedom… then comes materialist
items.
So where do you start…you may ask…well, I will tell you!
Say you are getting gas and your child says can I go in and get some
candy? Most of the time you may say yes here is a dollar… and stop
at that.
I want you to try something different…
OK, I will give you a dollar, but
I want you to come out with as much candy as possible with this
dollar… they will look at you like you are crazy…but their
imagination will kick in and they will start using their mind and
see not only the different prices of candy but they will be excited
about the fact that they can get as much candy as they can.
The first time I did this, I had my two kids and a friend of theirs,
it was amazing to see,
normally they would of come out with one candy bar and now they were
talking, asking questions to the clerk and adding the costs in their
head. Their little minds were working and they were learning a
valuable lesson in money. “How much things cost!”
Once we were back in the car driving home, they started to talk
about the price of candy, and realized that normally they would of
just grabbed one candy bar and been done, but this time they got a
lot more for their money.
You can do this with your teenagers when it comes to clothing,
accessories or food for that matter.
Children need to work with money, use money, and make mistakes with
money just like they do with everything else they learn in life.
• You have to roll over, crawl and walk before you can run.
• You have to learn your ABC’s and 123’s before you can read, write
and add and subtract.
• You must learn the basic foundations of money before you can
successfully make financial decisions.
• The sooner your kids start to
see how money works the sooner they will start to understand how to
use money.
• Talking about money to your kids will help them understand what
money is and how to use it to their benefit, when your children
start to understand money they will start to have control over money
verses money controlling them.
• Research shows we talk more about sex and drugs than we do money.
Have conversations about money often, so your children will be
comfortable with asking questions about money.
• The sooner your child can experience and handle money, the sooner
your child will experience the benefits, good, and bad with money.
• Allow your child to make mistakes with their hard-earned money,
because the more they make when they are young the less they will
make when they get older.
• Your children will always do what they know and understand to be
true. If your child always takes a dollar and spends a dollar then
they will always live paycheck to paycheck. If your child always
saves a portion of their money, they will create a secure financial
future and understand the habit of paying themselves first.
• By changing this habit, you open up a world of possibility for
your child. Your child will be comfortable with money, they will
know how to use money verses money using them.
I hope you enjoyed the first "How To" in our series
Rules of Money Every Parent Should be Teaching their Kids!
Enjoy!
Warmly, Lori
I want to wish you a Very Merry Christmas and Happy New Year! Our country is
going through some major challenges right now and the obvious
is...we need to make changes... I believe our country and families
need to simplify their lives and re-establish what is most important
in their lives...I believe the most important things in life are
...family, friends, values, security and freedom. In simplifying
your life...you will need less...in needing less you will have more
money...in having more money you will have more freedom and
security.
Make the
commitment to yourself and your family, that the most important
priority is the security of your family... I have sat with my kids
now the age of 13 and 15 and explained that this year is going to be
different than past years. We know people very close to us that have
suffered through the financial crisis, lost their job and or their
home. I explained that we were still celebrating as we always do but
the emphasis was going to be on family, not the gifts. They were ok
with it and handled it a lot better than I expected. We need to
believe that our kids are able to handle disappointment and step up
to the plate when they have to. Let go of how you think they will
react...and I think you will be pleasantly surprised!
If they do get a little upset, that is OK too, because this maybe
all they know... this maybe all you have taught...but the
opportunity is here for you to teach your children some very
valuable lessons... below are five tips for spending a little less
money this year, and as always I want to wish you much prosperity
and success!
Warmly,
Lori
Talking Your Kids
Through the Financial Crisis
How you talk to your kids about the financial crisis depends on
how it is personally affecting your family. Children do not have
enough knowledge about money and the financial crisis to
understand what is going on. This is a complicated issue for the
majority of kids and they will have a hard time understanding.
However, no matter what your child knows, take this time to
assure your children that you are there to protect and take care
of them. Children did not create the problem adults did. The
lesson for parents is to take this time to start teaching your
children differently when it comes to money! For all ages, my
suggestion is to not create fear and insecurity around this
situation but look for solutions on how you can teach your
children better habits so when and if this happens in their
adult life they will be well prepared.
There is no doubt that things will change due to the economic
conditions in our country, and change is good, families can get
back to what is important. Which is teaching life-long financial
habits that create security in the future and we can all become
better role models for the next generation.
There are steps you can do to help your children become more
financially aware of what is happening around them and best of
all create responsible financial habits children can live by.
1. You can start to teach the concept of spending less and
saving more. Living within your means is a security issue for
you and your family. Your children will adapt to the situation
and support whatever the family needs to do. You are not
depriving your child of anything if you stop spending money; you
will actually be teaching your children valuable lessons. Stop
giving your child $20 to go to the movies and invite their
friends over for a pizza, popcorn and a movie for $3 apiece. Be
creative, have more family meals together, have the kids'
brainstorm how they can save money and have fun, let their
imaginations go wild, and create memories instead of more debt.
2. Create the habit of saving, and living more simple
conservative lives. Set goals as a family to save money in
different ways, what can you do differently around the house, is
there anything you can cut in the monthly expenses that are not
necessary right now. When you learn how to live with less, it
teaches you the value of what you do have. We really do not need
most of the things we think we need. Make it a habit too
automatically save money on a weekly or monthly basis. Start out
with a little, increase with time, and teach your kids to do the
same. This is the most valuable financial habits you can teach
your child and the people who practice this habit will have more
options through times like this.
3. It is time to enjoy the simple things in life, go to museums,
galleries and visit the zoo. Make plans with friends to have a
picnic and play games outside. Plan a night to lay in the front
yard, look for shooting stars, and eat 'so mores!' The time you
spend with your children is more valuable than the amount of
money you spend on your children. Your children will forget the
materialistic items but never forget the memories. This will
also take your mind off the current situation and build a
stronger bond between you and your kids.
As we have heard before the most important things in life are
free and in these times, we need to look for as many of these as
possible. Most importantly do not spend time on the problems,
spend your valuable time looking for solutions and keeping your
family safe. Remember this is a cycle and we will get through it
as we always do.
Things you can do right now to insure your children start on the
path of financial success!
Open an Orange Savings account! And if you have an Account for
your kids switch it over to an Orange CD which is paying 4.25%
for 12 months. And a 24 month CD is at 4.50%. I just
switch my kids savings over to the 24 month CD. Click the link
to the right and start saving and making money today!!!!
I know that Wall Street has taken hit, but for the kids that
have 40,50 or 60 years why not start an investing account for
their future! Both of my kids have a Sharebuilder account as do
I, and though we have seen a drop in our investments, I also
know that some of these stocks have not been this low for a long
time. Sharebuilder allows you to dollar cost average and invest
small amounts which over the long term can reap great rewards
for your children. To find out more click the link to the right.
Stop giving your kids money, stop buying your kids things and
allow your kids to earn the money for the items they want! I
cannot stress this enough. Many adults are in debt because they
want their kids to have all the items they never had as a child.
The reason you did not have these things as a child was that
your parents were not willing to go into debt to give you those
items.
Enjoy and Wishing
you Much Success and Prosperity!
Warmly, Lori
Cash verses Debit/Credit &
Pre-Paid
Cards for Kids
After I sent out this article, I received many
responses, but, this one made me laugh ;-)
Hi Lori, wonderful article. No one is this house
is getting anything plastic unless its my facelift!
you are the best thanks for always looking out for us!
Linda
Wow, I
have been reading a lot about the fact that many parents are
giving up, giving their children cash and moving to debit cards
and credit cards.
I
understand that kids are spending money on digital media, buying
things online and it's easier than carrying around cash. But,
don't put the cart before the horse.
If you are
going to give your kids credit cards or debit cards, do not do
so unless you have fully educated them on the risk and rewards
of these cards. And yourself included because until your
children are 18 you are still responsible for their actions.
Kids are kids and still need to grasp the idea of “cash”
especially when reports are stating kids today think it is
easier to spend with a credit card than cash! Anyone knows it
hurts more to have a $100 bill leave your hand than swiping a
credit card.
Give a Man a Fish feed him
for a day; teach him how to fish feed him for a lifetime… The
same applies to kids and money.
Kids need
to learn their ABC’s before they can learn to read – Kids need
to learn how to add and subtract before they can learn how to
multiply and divide. And, you cannot learn how to run before you
can walk.
I suggest... Do Not give your kids a debit card if they
do not understand the value of money ‘cash’. There are certain
fundamentals kids must learn first, and stepping into credit
cards or debit cards is a recipe for financial disaster. Look at
the statistics, Adults cannot manage plastic, and adults spend
billions on their credit cards. Kids are following down this
same path, our children have the highest amount of debt than any
other generation before them.
Credit Cards are Tooooooo
Tempting
Very few
kids have the ability to delay their gratification, and credit
cards are just too tempting for kids unless they are educated in
how to use these debit and credit cards. Children need to know
the pro’s and con’s ahead of time! To many kids are receiving
credit cards and debit cards without reading the fine print and
are getting into huge financial problems.
It is
extremely difficult to deny yourself things when credit is
available and the marketers are fully aware of this. Buy Now Pay
Later… if you do not have the money now, it’s doubtful you will
have it later. But as I have done, you convince yourself that
you really need the item. And what about “No interest until
2010”… that makes you feel like you are getting the item free!
Your plan is to pay it off before hand, which if you do great...
but most people I have talked to do not.
I have
coached many people over the last several years and one of the
biggest challenges for most parents is saying “NO” when it comes
to their children’s spending. I understand I have two children
of my own, but you can still teach your children the value of
money without denying them of the items they want.
As with
everything there are basic Fundamentals you must know especially
when it comes to money!
Fundamental Rule #1 “Do not Spend Money
You do Not Have! It’s just
about impossible to do that with a credit card or debit card.
Both allow you to go over your limit with massive fees also,
where as with cash once it’s gone it’s gone.
PRE-PAID DEBIT CARDS-Have
you read the fine print on the kid friendly debit cards...?
Better yet, have your kids read the fine print… Without naming
names below is the fine print on one card that says, it will
teach your child the value of money. This card
says…,”Teach your teens to use our PRE PAID card the right way
without spending more than they can afford. Manage your teens'
accounts securely and conveniently, either online or via our
24-hour customer service hotline.
Then in the frequently asked questions box
to the right… The question is …
What are the fees associated with the card?
Bank Customer
Non. Bank Customer
One-time Enrollment Fee
$10.00
$15.00
Value Transfer Fee
Waived
$2.50
Value Transfer via Payroll Direct Deposit Fee
Waived
Waived
U.S. Bank ATM Fee
Waived
Waived
Non-U.S. Bank ATM Fee
$1.50
$1.50
It
only shows the first three and then says to read the card
agreement for the details and the “optional charges”
Well... below are the optional charges...
Service Charges
Bank Customer
Non. Bank Customer
One-time Enrollment Fee
$10.00
$15.00
Value Transfer Fee
Waived
$2.50
Value Transfer via Payroll Direct Deposit Fee
Waived
Waived
U.S. Bank ATM Fee
Waived
Waived
Non-U.S. Bank ATM Fee
$1.50
$1.50
ATM Balance Inquiry Fee
$1.50
$1.50 - When your child uses the ATM to check their
balance
ATM Withdrawal Decline Fee
$.75
$.75 - A fee when your child does not have enough money
in the account.
Two Calls Fee
$.50
$.50 - You get two calls a month free to check your
balance, after that if you call to check to are charged.
Bank Teller Fee
$2.50
$2.50 - A fee you pay if your child walks into a bank
and withdraws cash from the teller.
Replacement Card Fee
$10.00
$10.00 - if your child loses their card.
Inactive Card Fee
$2.00
$2.00 - If you do not load the card with money
after 90 days
Paper Statement Fee
$2.00
$2.00
Overdraft Fee
$10.00
$10.00 - If you do not have enough money in the account
and they put the charge through.
Express Delivery of Card
$20.00
$20.00
Foreign Currency Conversion
3%
3%
You see the
charges above are typical mistakes a child will make with this
card.
The only
way for a child to check their card for free is to go online and
look it up…how many kids have access to the internet at a mall,
restaurant or movie? How many kids are going to check their card
before they go out of the house? The other option is to call the
bank, but you can only call two times in one month or you are
charged .50 after the two phone calls.
I do not
understand where the learning how to manage money, save money,
budget or financial literacy comes in. They also guilt the
parent by saying… this helps keep your child safe, which of
course every parent wants to keep their child safe, but they are
also saying that if your child walks around with cash, you the
parent are putting your child at risk.
The card
says… Benefits for parents and
teens include:
•
Powerful tool to encourage
financial responsibility – Where is this a powerful tool
to teach financial responsibility? Cash works just as well and
cost less. When the money is gone, your pockets are empty and
there are no fees to pay.
•
Convenient and flexible way to pay
– yes it is a convenient way to get our kids addicted to credit
cards at an early age.
•
Safer than cash - how is it
safer than cash? It cost you $10 to replace the card. Kids need
to learn how to be responsible, and all they have to do is lose
their cash once, and I doubt they will do it again.
•
Parental control and peace of mind
- The only control you have is the amount of money you put on
the card. Yes, you can see where your kid is spending their
money, but you can do that with receipts from cash also.
•
Wide acceptance—everywhere debit
cards are welcome – cash is accepted everywhere also.
This is just one company; there are other companies who charge
more than the fees you see above.
Fundamental
rule #2 read all fine print;
if you do not understand, ask questions! Teach your child to
make informed decisions with all the facts. I know kids well
enough if they new that there were all these fees they would
either ditch the card or make sure the bank did not get any
extra money! Kids are greedy with their own money!
I
know I am being brutal but look at what is happening in the
world today, one of the biggest failures in US History happened
in the financial arena on Monday, Lehman Brothers collapses,
while few of us know this company me included, they say that
this company has been around for 158 years! How can this happen?
... that will be another newsletter.
I
believe in Credit, I love Credit, I use Credit and I feel it is
one of the most valuable assets we have, but if it is abused it
can ruin you for a long-long time.
Children need credit to survive in our society, and as I have
said before bad credit will cost you and your children thousands
of dollars. If you are going to give your kids credit cards or
debit cards than you must take the time to teach your children
the pro's and cons of both.
The U.S. Treasury is launching a long planned
program that teaches young Americans about credit and other
financial matters called
www.controlyourcredit.gov
the theme of the program is “Don’t let your credit put you in a
bad place.” The site has an interactive game called “The
Bad Credit Hotel” It’s good for anyone including adults to play
it, for the younger kids it might be scary... but it will
probably scare the little ones away from credit cards
altogether!
Visit this
website, and go through all the rooms till you make it to room
850! You will understand later.
Enjoy and Wishing you Much Success and Prosperity!
Warmly, Lori
What Kids do Not Know Will Hurt Them!
I have a story for you that happened last week at my husband’s
Hockey shop. One of his new employees called and asked what he
should do with the checks that he receives from the customers. My
husband told him to endorse the checks with the company stamp, and
leave the checks in the drawer.
Later that afternoon my husband stopped by to grab the deposits and
noticed every check had the stamp across the front. When he
questioned the employee, he blankly looked at Dana and responded
with, “You told me to endorse the checks!” Dana looked at him with a
blank stare, turned the check over and said this is where you
endorse the checks.
Dana then asked him if he had a checking account, he murmured “no”.
Dana my husband was in shock and then found out that this 21 year
old has never had a checking account, lives at home with his mother
and she cashes all his checks for him. Then he spends his whole
check and is asking for a loan from Dana four days after payday!
This will go on my list to warn my kids about.
Stay away from drugs, do not drink and drive and do not date anyone
who is clueless with money!
Ironically, last week, National Jump Start reported that the results
of the 2008 financial literacy survey were disappointing to say the
least. Over the last several years, the average score has been
around 52% - 54% (below an F). This year 2008, the average score was
48%showing that kids are becoming more and more financially
illiterate!
Now, I know that if your child is failing in any subject, your
teacher will call you; or you will hire a tutor or sit down with
your kid and have a serious chat. But as you can see this is a
silent fail that no-one talks about, knows about or even cares
about, don’t let your child fall victim to financial illiteracy it
is way to costly for you and your child.
To read the full report and see the
test visit the link below. You might want to take the test yourself
and see what it is they expect your child to know. It’s eye opening!
http://www.jumpstart.org/fileindex.cfm
Take the quiz yourself and see how you measure up!
I know this is short notice, but I just found about about it myself.
If you have a child in high school, you can forward this info to
your teacher or principal and see if they will allow the class to
take this online financial literacy challenge!
High
School Students Take the Challenge
The Treasury Department is issuing a National Financial Literacy
Challenge to America’s high school students. High-scoring
young people will be awarded a certificate of recognition. In
addition, the top 10 participants will win a 2-day,
all-expenses-paid trip to the nation’s capital to be recognized for
their money smarts. The President’s Advisory Council on
Financial Literacy recommended the challenge.
Students in your community, age 13 and up, can test their finance
knowledge by taking this online voluntary test at:
http://FLC.treas.gov,
Monday, April 28--Friday, May 16. The Challenge involves 35
basic personal finance questions, will take the average student
40-45 minutes to complete, and must be proctored by an educator.
Share this information with high school teachers in your community.
Sign up for the distribution list to learn more about the National
Financial Literacy Challenge at:
http://www.flc.treas.gov.
Legal Planning for Busy Parents
I have done the legal planning for my kids, but I must update it,
I know many of my friends have not; this is something you must do,
but avoid like the plague! My friend and college Alexis Martin Neely
just release today a fantastic book with tons of great bonuses,
including some stuff from me!
It's called, "Wear Clean Underwear: A Fast, Fun, Friendly -and
Essential - Guide to Legal Planning for Busy Parents" and it's
written by California lawyer and mom, Alexis Martin Neely.
For less than $16, you will not only get the straight information on
everything you need to know to legally plan for the care of your
kids and your money, but you will also get over $3000 worth of bonus
gifts that Alexis has put together for you. But, to get the
bonuses, you've got to buy the book TODAY! Visit the website
Wear Clean Underwear and check it out.
And, don't think this book is going to be depressing, hard to read
or full of legal jargon. It's just the opposite!
As you can tell from the title, Alexis has made this topic
entertaining, interesting and, yes, even a little bit fun.
By using an easy to read story-based format, Alexis walks you
through three stories that guide you to all the right answers for
your family.
Her book is a fast read and when you are done, you will know the
exact next steps on what you need to do to make life as easy as
possible for the people you love most if you were in an accident.
By the end, you will know exactly how easy it can be to legally plan
for your family and she even gives you tons of free resources to get
you started or fix what you've already got in place.
This is a book you must read even if you think you've gotten
everything.
Wear Clean Underwear
Enjoy,
Wishing
you much Success and Prosperity!
Warmly,
Lori Mackey
Welcome to the Prosperity4Kids Newsletter!
In this issue April 08
Do Not Miss this opportunity!
6 Ways to Find Extra Cash!
Do Not Miss This Opportunity to Save Money!
Many of you have asked me over the years where should I start with
investing!
You know how highly I think of ING DIRECT and their Orange Savings
Account, well they have acquired
Sharebuilder.com and now you
can save your money and invest your money with a trustworthy
company!
You only have a little less than two weeks left to make a 2007 IRA
contribution before April 15th, if you do not have a
ShareBuilder account run don’t
walk and get one right now!
I opened a ShareBuilder
Account in October and then I found out in December that ING
purchased the company. I must say I love it, I have been leery to
invest in the stock market because in the 90's we lost a ton of
money, not by anyone's fault but our own. But, never the less, I
decided I would not do that again unless I became more educated in
investing. I read many articles on Fool.com and I have several
subscriptions to their newsletters and several others. I picked
companies that have a record of accomplishment and have great
reviews. Then I finally jumped in! I picked the stocks I want to
invest in, decided how much I want to invest a month and it's as
easy as that!
Last month was the true
test for me because when the stock market crashed so did my stocks,
but I waited it out and now I am ahead in many of them and only one
has not bounced back yet. I am enjoying it and learning a lot as I
invest regularly, as I get more comfortable I will invest even more.
The biggest accomplishment for me was taking action and just doing
it!
You owe it to yourself
to start saving for your own financial future, and teach your kids
to do the same!
ShareBuilder
is easy, simple and a great place to start investing.
Whether you want to
invest $20, $100 or $1000 a month at least you can start right now!
You owe it to yourself
and your future; go ahead pay yourself instead of buying something
you really do not need! And, if you get a refund, invest that in
yourself instead of spending it.
Get on the automatic
plan where you have small amounts or large amounts taken out of your
checking account monthly. You may be thinking "I do not have the
extra money to invest" , but, I beg to differ, you would be amazed
on where money can come from. Then once you have set yourself on an
automatic investing plan you will get used to it and then be able to
increase it every month.
Remember you are worth
it, I promise you, no one else is going to care of you like you do,
so be a little selfish and pay yourself what your worth!
Then once you get comfortable start an account for your kids and
have your family contribute to their financial future at holidays,
birthdays and special events!
Buy Stocks for $4 at ShareBuilder.
Investing in your future has
never been easier! With a ShareBuilder Automatic Investment Plan you
can:
Invest any dollar amount on Tuesdays exclusively online
Schedule investments on a weekly or monthly basis
Select from our list of over 6,000 stocks and ETFs
Investment and funding instructions can be edited up to 5:00pm (ET)
on the Monday before your purchase.
Real-time trade fees apply to all sales. To find out more visit this
link!
Buy Stocks for $4 at ShareBuilder.
Six
Ways to Find Extra Cash
If you feel you do not
have the extra cash, here are 6 things you can do this month to earn
extra cash to invest in yourself. This could easily add up to
$125.00 if not more! Always know that anything I ask you to do, I
have done myself to see if it works, and I have done each and
everyone of these! I have read about these ideas in magazines,
online and in the paper and the more research I do the more I find
out that people who have created wealth practice these ideas also.
So I decided to stop being lazy and give a couple of the ideas a
try and you wont believe how much I saved!
Sell something, take the cash and invest it! Many people love
garage sales, and if you do not want to spend the time on that,
then the next best thing is Craig’s List, just Google it or if
you understand eBay go that route.
$25
I sold my daughter's old bed I had in storage for $300
Figure out how much you are spending by eating out whether it is
breakfast, lunch or dinner, brown bag it, take the money, and
invest it! $25
Couple less coffees a week $10, and stopped eating out one
night a month $40!
Take any insurance
bill you have at home and research to see if you can get a
better price. This can be life insurance, car insurance and
health insurance.
$25
I switched my life insurance companies and went from $100 a
month, down to $64
Take your home
phone and switch to an internet phone company. Vonage, AT&T is
two that I know of, I have Vonage for my home phone and use a
regular line for my business.
$25
My home phone plus the fax line was about $120 now with the
Vonage for the fax and home it's down to $54
Utilities are a big one! Look at your last bill and try your
best to drop it down, dress warmer, unplug all unused electrical
items from the wall, use energy saving light bulbs and turn off
the lights when leaving the room. $25
Our refrigerator in the garage died, our bill went down about
$100, then we switched the light bulbs as they burned out to the
energy saving, and unplugged the appliances from the wall that
are not used often and our bill went down another $50.
Total $150 savings for two months.
Recycle water bottles, cans and bottles. Take it to the
recycling center and invest the money!
$25
We only drink water, no soda's, beer or bottles so our
recycling is on the low end, about $10 a month.
Minus the bed I am
saving $221.00 a month, I am not living any less than I was, I
am just saving money on things I already have. This is a real
eye opener, of how we truly waste money.
In doing this you start
the process of not only conserving money but energy and making the
world a little greener! Everything we have can be recycled by
selling it, giving it away or reusing it.
Enjoy,
Wishing you much
Success and Prosperity!
Lori is Speaking at a local ING Café near you!
I want to invite you to a seminar I will be giving at a local ING
DIRECT Café near you! As you know I think very highly of ING DIRECT
and they have hired me to speak at their Café’s throughout the month
of April. We will be talking about Kids, Money, and your financial
future!
With all the press lately about the economy, this will be a breath
of fresh air for you! ING is all about bringing American’s back to
savings and we will discuss many money saving ideas and ways of
teaching your children how to manage money also.
This event is for all parents, grandparents and anyone involved with
kids. Visit the website below and register for an event in your
area!
New York - Philadelphia -
Wilmington, Delaware - Chicago - Los Angeles
New Book Coming in
June! (Not) Keeping up with
Our Parents: The Decline of the Professional Middle Class, by Nan
Mooney
Nan interviewed 100's of families and
couples
throughout the U.S. and these are some of the
statistics she found out.
She states that married couples with
children have nine times the debt level of all childless adults.
Americans households debt has grown from 33.2 percent of disposable
income to 131.8 percent in just under 50 years; hours worked by
couples with children have risen 30 percent since 1975;
approximately one in six households has zero to negative net worth.
This book shows most Americans, but
now I have found out most of the world are hanging onto financial
stability by their fingernails. One little setback can create the
tumble!
The biggest problem is inflation has risen; the amount of money
devoted to housing, childcare, health insurance, and taxes has gone
from 53 to 75 percent in the last 20 years. But the wages, for the
most part, have not kept pace.
Today’s families have to choose between raising a family and owning
a house. Simply put, if 40 is the new 30, then credit is the new
savings!
This proves that we cannot keep going at the pace we
are, something has to change!
The New Savings
by Lori Mackey
Over the last several years, I have realized that
many adults including experts teach parents the wrong or not so
right way of saving money. Think about it, they say, have your kids
set a goal, and help them save for that goal by putting money aside
in a savings. While this is true, the problem is that there are
missing pieces of this concept you are not being told.
Let me explain;
I was raised the same way, save your money, I did,
then I found what I wanted and spent it all! This is not teaching
you how to save, this only teaches you how to save and then spend.
You are still back to zero and it’s just spending in disguise.
Statistics are proving adults are not saving money,
which probably steams from not learning how to save money as a kid.
Reports say that more kids have cell phones than savings accounts
and this is something as a parent we should be worried about. How
will our children know how to make it through tough economic times
if they do not even have a savings account!
The new savings lesson is simple - saved
money-is-saved money-, do not spend it unless it’s an emergency or
you are financially secure and able to spend the money on something
necessary! And shoes, color TV’s and the newest cell phone are not
on the list of necessities.
The money your child has in their savings account is
for their future and if you teach your child this concept from the
beginning, your child will know and understand this as the norm.
The next time your child decides they want to save
their money for something, then call it what it is, ‘putting your
spending money aside until you have enough for the item you want to
purchase.’
Keep it simple, and explain to your kids that if you
want to create wealth you must save your money and invest it, follow
the 10/10/10/70 concept. The saved money should be forgotten about
and off limits for spending, you can watch it grow all day long if
you want. Then when the day comes that you find yourself low on
cash, or your car breaks down, or an unexpected bill comes up you
have the cushion of the money in your savings account and you will
not have to turn to credit cards.
Teaching this
habit early will save you and your kids a ton of money!
Enjoy!
Simpleology News!
This is for
the parents who have their own business and
love marketing. Mark Joyner who provides the
Simpleology website that I love and use
daily! Has come out with a re-release of one
of his very sought after books that he for
some reason decided to stop publishing and
the buzz is happening!
check out his crazy video he has for
promoting it
Subject: The
Missing Chapter
FIRST,
It's finally
back and the rumors about the missing chapter
were apparently true!
New York Times
best-selling authors
Mark Victor Hanson and
Robert Allen
give a powerful foundation for Prosperity 4 Kids
creator Lori Mackey.
"Finally, a
Real Piggy Bank that teaches life's 3 most important financial lessons to kids instantly.
I love this product and want every kid to have one starting at birth." Mark Victor Hansen
Co-Author of
Chicken Soup for the Soul
and 79 more New York Times
#1 best-selling titles
"Just imagine where we would all be,
if we were taught this valuable lesson as children.
Prosperity 4 Kids is a wonderful way
to start your child on the
road to financial success." Robert Allen
Author of New York Times #1 bestsellers Multiple Streams of Income, Nothing Down
and Creating Wealth
I had the absolute privilege of personally coaching Lori
Mackey at the beginning of her entrepreneurial career. I
congratulate her for creating Prosperity4Kids, Inc., a
cause-driven idea for kids that will assist today's children in
becoming our society's entrepreneurs of the future. I am proud
to have been a small part of her vision. Jeffery Combs, President
Golden Mastermind Seminars, Inc.
www.goldenmastermind.com
Teaching Kids to Save & Invest
I Love This Savings Account!
ING Direct Savings Account will show your child the power of saving and investing instantly, no fees no minimums! A regular savings account pays you pennies this account pays you dollars!
To read the full benefits
click here!
