Put It In Writing?

Memorialize your child's commitment to learn the value of money by putting it in writing - or at least make it visual in some way. Just as you should write your own goals down to "train" your brain to follow your direction, writing or memorializing your child's commitment is something to strongly consider if you want to begin their lifelong commitment to money smarts. If you want some help (and an easy way to start), you can print a free copy of a Money Mammals certificate for your kids to help them to commit to share, save and spend smart (Click Here to download certificate). Or have your child make his own certificate. Or simply write something on a piece of paper that you refer to on a continuous basis. I personally like the idea of a certificate because it carries more weight - and it goes on a wall for easy reference. Another idea (or a complimentary idea) might be a wristband so that you can refer to it when you are out the house and out of range of the certificate. As always, good luck and always remember to Share & Save & Spend Smart Too.

A Little Victory

I talk a lot about needs and wants to other parents and kids and it's a core part of the mission my company and I are on. Recently, though, I've been wondering about the effectiveness of this communication because my 4-year-old, Quinn, has been overwhelming my wife and me with whining about "wants, wants, wants." I kept thinking to myself, "Is she getting it?"

And just about when I was at my breaking point, she stunned me. We were cruising down Gower St. here in Los Angeles when Kellyn, our 2-year-old, blurted from the back seat, "I need my Dora" (pronounced "Doe-wah" in two-speak). I had just watched her toss it on the floor and since I was, well, driving, I wasn't in a rush to satisfy this demand. She quickly followed her request with a whine when suddenly Quinn chimed in, "Kellyn, you don't NEED your Dora, you WANT it." I looked at Quinn in the rearview mirror and smiled. A little victory.

Say Yes to No

Minnesota has launched a new campaign, "Say Yes To No," that encourages parents to be more active in setting limits on their children, particularly when it comes to consuming media - which are filled with "yes" messages. Why? The site link above notes that "The constant barrage of “yes” messages undermines crucial character traits for success, including self-reliance, respect, integrity and the ability to delay gratification." The campaign promotes Dr. David Walsh's new book, "No. Why Kids – of All Ages – Need to Hear it and Ways Parents Can Say It," as a way of addressing the "yes" syndrome in our culture.

I haven't yet read the book, but I love the concept. It immediately reminded me of a recent conversation. My friend - a company president and someone with tremendous means - told me that he was having diffculty getting across the concept of saving with his 5-year-old. I probed a bit and found that his real problem was that he was having a difficult time saying no to "small requests." These requests (toys, games, etc.) were adding up and he was feeling that his child was beginning to become one of those "entitled" types. The irony of this was staggering - the wealth he had amassed by embodying the traits above was enabling him to potentially deprive his son of those very important traits. I told him that he really needed to learn how to say "no." Sure, he can afford most anything his son would like, but perhaps it was time to use the phrase, "it's not in our budget." It's just one way to "say yes to no."

Road to 10%

How long will it take us to get from a sub zero savings rate to 10%. Likely a generation. But steps like the bill being considered in the California legislature can help. AB 150 is a "first step" bill that will establish the California Literacy Council and create a state clearinghouse of financial literacy information for California schools. As I've said before, understanding personal finance is as crucial to a kid's well being as learning multiplication tables and your ABC's. The California Jump$tart Coalition (of which Snigglezoo Entertainment, our company, is a member) is focused on bringing financial literacy education to every child in California. This bill is a good first step. Currently, only seven states require that high school students take a personal finance course to graduate. This number should be 50. In time it will be.

"The Fourth R" - The Real World

I recently took part in a conference call hosted by Robert Duvall and the National Council on Economic Education (NCEE) announcing their "Report Card – Survey of the States: Economic, Personal Finance, and Entrepreneurship Education in Our Nation's Schools in 2007." The upshot? Kids are not learning what Mr. Duvall referred to as the "The Fourth R - 'The Real World'" The report notes that "the majority of students aren't receiving the essential real-life economic skills they need to become knowledgeable consumers, prudent savers and investors, and productive members of the workforce." It's this fourth R that is arguably as important as the other three (you remember, Reading, 'Riting, and 'Rithmetic). It's so exciting to be a part of those on the vanguard of getting this most important message out - particularly to very young children - so that we can help cement behaviors that will serve them well throughout their lives.

Give Kids Credit (Not that kind of credit)

This morning, I was perusing an article about teaching kids about money and the author suggested that you should start giving an allowance when kids begin to understand the concepts of saving and spending. I agree. Then the author said this should happend around first grade. First grade? Hmmm...my kids certainly have learned about the concept of spending money much earlier than that and saving money is something they can understand by the time they reach kindergarten (if not before). We need to give kids more credit (not that kind of credit) for their ability to grasp concepts earlier and, therefore, I think you should start them on an allowance earlier than first grade. Earlier is better, because the forces teaching kids to be irreponsible with money are certainly not waiting and an allowance is one of the best tools to start teaching your kids about the value of money. Let them make mistakes with the money young, seek out the teachable moments when they make them, and hopefully they will learn and we can raise a generation of kids much smarter than us when it comes to money.

Young Kids and Money - Rich or Poor

My family is always sending me articles relevant to our business and today's mail proved to be no exception. My Dad, a retired banker, sent me a piece from the June 2007 issue of the Parsippany monthly. Though the article addresses four topics for "Teaching Children the Financial Facts of Life" (article by Steven Brisgel), two items resonate for me. At the beginning of the article, Steven mentions that many young people may receive "sizable inheritances." Kids of wealth have difficulty with "value of money" issues just as poor or middle-class children do. It likely stems from the same problem, though, and that is the emphasis society or parents put on material things. Which brings me to the Steven's first (and arguably most important) topic, "Be a Role Model." This is one of the most difficult areas for any of us to address, particularly if we have developed any bad habits (which would be about 100% of us) over our lifetimes. We all know that kids do what you do, not what you say, and it is IMPERATIVE that we are mindful of this axiom. One thing that we try to do in our household is be mindful of our use of the terms "need" and "want." Put your attention on this during the day and you'll see what I mean. Adjust what you say accordingly - making sure that you are using the terms properly. And gently correct your children when they identify a want as a need. Nobody really needs a nightgown emblazoned with their favorite character. Do they?