Many of you may have heard about McDonald's rewarding children at Florida's Red Bug Elementary School in Seminole County with free Happy Meals for good grades. I was appalled by the idea (I don't think grades should be rewarded with money or prizes, period). Luckily for all of us against the concept of advertising on report cards, Susan Linn of the Campaign for a Commercial-Free Childhood led a campaign to halt the practice with the support of almost two-thousand parents. McDonald's has terminated the pratice as a result of this campaign. Click on the link above to read the press release about the campaign's success.
I also highly recommend watching Stephen Colbert's take on this topic at http://www.commercialexploitation.org/.
-John
Sunday, February 17, 2008
Saturday, February 02, 2008
Start Money Lessons Early - Avoid UK Card Users Fate
I just read a post by Paul Michael on the terrific finance blog, Wisebread, that the UK banking giant, Egg, is now blocking over 160,000 credit cards - protecting the cards' owners from themselves. Paul expresses surprise that this didn't happen in US - it's likely only a matter of time before this happens here. I think it's sad that it's come to this for some and it only reinforces my belief that we must not wait to teach our children about money. Let them make their mistakes NOW - before they face a situation as dire as those in the UK. We truly can't afford to wait.
Wednesday, December 26, 2007
A Christmas Gift
So what was my daughter's favorite present this Christmas? Her own.
Quick back story - As mentioned in a previous post, we recently tried the saving-for-a-goal approach to dealing with allowance. My daughter taped a picture of something she wanted to buy - a neat, kid-sized pottery wheel that came with wood, clay and paint. Over the course of a few months, she saved enough to purchase the wheel. Having the picture taped directly to her save bank helped serve as a reminder at allowance time. Sure enough, most of her money went to saving. When she saved enough for the item, she gave me her money and I purchased it online for her. I would have preferred to purchase this item at a store so she could physically pay for the item, but then this wouldn't have happened...
Back to Christmas - She had already opened most of her gifts as I picked up the brown box that had arrived with her name on it (one of several). It had been a busy holiday season and I had forgotten about the order we had placed for her. I thought this was another gift from one of her long distance relatives. We opened the box together and when I realized what was inside, I almost jumped with excitement. My daughter, though, went bananas. She was so excited and proud that she had received the toy for which she had so diligently saved. It was a an exciting moment for both my wife and me. Of all the presents she had received, none had elicited such a powerful reaction. We had stumbled into an incredible teaching moment for our child. She had learned the power and pride of saving for something on your own. She had received an incredible Christmas gift...from herself.
I wish you all a Happy New Year!
Quick back story - As mentioned in a previous post, we recently tried the saving-for-a-goal approach to dealing with allowance. My daughter taped a picture of something she wanted to buy - a neat, kid-sized pottery wheel that came with wood, clay and paint. Over the course of a few months, she saved enough to purchase the wheel. Having the picture taped directly to her save bank helped serve as a reminder at allowance time. Sure enough, most of her money went to saving. When she saved enough for the item, she gave me her money and I purchased it online for her. I would have preferred to purchase this item at a store so she could physically pay for the item, but then this wouldn't have happened...
Back to Christmas - She had already opened most of her gifts as I picked up the brown box that had arrived with her name on it (one of several). It had been a busy holiday season and I had forgotten about the order we had placed for her. I thought this was another gift from one of her long distance relatives. We opened the box together and when I realized what was inside, I almost jumped with excitement. My daughter, though, went bananas. She was so excited and proud that she had received the toy for which she had so diligently saved. It was a an exciting moment for both my wife and me. Of all the presents she had received, none had elicited such a powerful reaction. We had stumbled into an incredible teaching moment for our child. She had learned the power and pride of saving for something on your own. She had received an incredible Christmas gift...from herself.
I wish you all a Happy New Year!
Thursday, November 29, 2007
A Smart Way to Spoil Grandkids
Kudos to Janet Bodnar for this article in her "Money Smart Kids" column.
Holiday Cries for Help - Got Sanity?
Help! That seems to be the call this season. I am seeing so many articles about kids, money and the holidays that I honestly can't keep up. There is one thing that I've been talking about that I think is probably the most important consideration parents should have this holiday season - be aware of your own actions. Stacy Tisdale's new book, "The True Cost of Happiness," addresses this same issue - she says that if kids grow up in a credit card debt home, that's the kind of home they'll have. She even talked on the Today Show about this. True, true, true. I completely concur with Stacy's assessment. We all know kids do what we do, not what we say. So, this holiday season, be aware of the following:
- Make it a point to create and talk about a budget - even if you have very young kids, talk about it. They may not yet get, but you're setting the foundation...and you'll help yourselves curb "crazy spending in the process."
- Be very aware of the use of the words "need" and "want." Correct yourself and your children when you use these words incorrectly and/or interchangeability. Seriously, make it a point to pay strict attention to your words and actions regarding money for a day or two and you may be surprised at what you might discover about yourself - and your kids.
-Emphasize traditions. Don't have any traditions, create some. Every kids wants gifts during the holidays and I certainly don't want to advocate being a scrooge here, but emphasize your traditions - whatever they may be - because that's what kids will value in the long run. Granted, a Christmas without presents would not be fun at all, but neither would a Christmas without a decorated tree.
Make time for family and enjoy yourselves.
-John
- Make it a point to create and talk about a budget - even if you have very young kids, talk about it. They may not yet get, but you're setting the foundation...and you'll help yourselves curb "crazy spending in the process."
- Be very aware of the use of the words "need" and "want." Correct yourself and your children when you use these words incorrectly and/or interchangeability. Seriously, make it a point to pay strict attention to your words and actions regarding money for a day or two and you may be surprised at what you might discover about yourself - and your kids.
-Emphasize traditions. Don't have any traditions, create some. Every kids wants gifts during the holidays and I certainly don't want to advocate being a scrooge here, but emphasize your traditions - whatever they may be - because that's what kids will value in the long run. Granted, a Christmas without presents would not be fun at all, but neither would a Christmas without a decorated tree.
Make time for family and enjoy yourselves.
-John
Monday, November 05, 2007
Starting An Allowance
At one of our recent super-fun live "Money Mammals" shows, a parent approached me about starting an allowance for her 5-year-old. I figured it was a good time to share the approach our family is taking as it might be helpful for others. We've just started allowance for our 4-and-a-half year old and I've begun by using David McCurrach's book, Kids' Allowances, as a guide. I like this book because it's simple, includes a survey of what parents of various age kids do r.e. allowance, cites various experts on youth financial literacy, and provides you with a structure to provide allowance for your children. The author is also experienced - he has honed his method on both his kids and grandkids. And he's not "preachy" or condescending, refreshing when you consider the approach of some financial self-help gurus today.
So what are we doing? We are using a three bank system (Share, Save, Spend Smart) and she's getting three dollars per week - two dollars and four quarters. Providing the money in different denominations provides us with a teaching opportunity each week (e.g. four quarters equals one dollar - and you can change up the coins each week). She is required to put two quarters into the "Share" jar (for donations) and two into the "Save" jar. At her age, we're making saving tangible by putting a picture of a savings goal on the bank so she knows that she's saving for something. She can do what she pleases with the other two dollars - put them in the "Spend Smart" jar or either of the other two (Save or Share). We are not tying our allowance to chores and we will revisit our approach at least every six months. At some point, we may consider some type of savings matching to encourage savings and I envision giving her complete control of her allowance (no mandates) in a few years.
I hope this is helpful and good luck to all parents out there. Remember, it's most important to just do something. You can't afford not to teach your kids about money.
So what are we doing? We are using a three bank system (Share, Save, Spend Smart) and she's getting three dollars per week - two dollars and four quarters. Providing the money in different denominations provides us with a teaching opportunity each week (e.g. four quarters equals one dollar - and you can change up the coins each week). She is required to put two quarters into the "Share" jar (for donations) and two into the "Save" jar. At her age, we're making saving tangible by putting a picture of a savings goal on the bank so she knows that she's saving for something. She can do what she pleases with the other two dollars - put them in the "Spend Smart" jar or either of the other two (Save or Share). We are not tying our allowance to chores and we will revisit our approach at least every six months. At some point, we may consider some type of savings matching to encourage savings and I envision giving her complete control of her allowance (no mandates) in a few years.
I hope this is helpful and good luck to all parents out there. Remember, it's most important to just do something. You can't afford not to teach your kids about money.
Monday, October 01, 2007
Who Will Own Our Children?
Ok, I'll admit it. I stole this headline for the National Association of State Boards of Education's report on financial and investor literacy. The title says it all. If you decide not to teach your kids about money when they are young, you may be ceding their financial educational literacy to credit card companies or financial institutions who may not have your child's best interests in mind. This is certainly not to say that credit card companies and financial institutions are bad - only that I don't believe they should be the primary source of financial literacy education for our kids. Parents need to teach their kids about money. Why? Let me give you a few snippets from the report:
"In 2005, the average personal savings rate for the year dipped into negative territory [where it's remained] ...in the United States for the first time since the Great Depression as consumers relied on credit and/or tapped into personal savings and other assets to allow them to spend more than they took in. As a comparison, savings rates for countries in Western Europe hover around 14 percent." In short, we need a country-wide change in attitude towards saving money. We must teach kids the basics of financial literacy as early as possible, just as we do with teaching them their ABCs, personal hygiene and eating right (though I suppose we still need work on the latter of these). I believe that this may take a generation to do - though hopefully sooner - and that we need to start now.
"Changes in employment and public policy have only recently put substantial financial responsibility on the shoulders of individuals, a condition for which they have not been adequately prepared. Financial literacy is as much a societal concern as it is an issue for individuals..." The NASBE narturally argues that the state boards of education need to be involved directly in K-12 financial literacy. I do agree that classes in personal finance are arguably as important - if not not more important - than those in the three R's and I'm glad financial literacy requirements are in place in some states. I believe, however, that it's of paramount importance that parents take significant responsibility in the process as they will set the stage with their own behaviors as to how children will view and use money. I created a DVD, "The Money Mammals: Saving Money Is Fun," to help parents start this dialogue. If you are interested in finding out more, click on the link to the right.
Most importantly, youth financial literacy makes a difference. The NASBE report notes that "the evidence shows that youth financial education can make a difference. Individuals graduating from high schools in states the mandate personal finance education courses have higher savings rates and net worth as a percentage of earnings than those who graduate from schools in states without such a mandate. "
So before you decide to wait to talk to your kids about money, be sure to ask yourself, "Who will own YOUR children?"
John
"In 2005, the average personal savings rate for the year dipped into negative territory [where it's remained] ...in the United States for the first time since the Great Depression as consumers relied on credit and/or tapped into personal savings and other assets to allow them to spend more than they took in. As a comparison, savings rates for countries in Western Europe hover around 14 percent." In short, we need a country-wide change in attitude towards saving money. We must teach kids the basics of financial literacy as early as possible, just as we do with teaching them their ABCs, personal hygiene and eating right (though I suppose we still need work on the latter of these). I believe that this may take a generation to do - though hopefully sooner - and that we need to start now.
"Changes in employment and public policy have only recently put substantial financial responsibility on the shoulders of individuals, a condition for which they have not been adequately prepared. Financial literacy is as much a societal concern as it is an issue for individuals..." The NASBE narturally argues that the state boards of education need to be involved directly in K-12 financial literacy. I do agree that classes in personal finance are arguably as important - if not not more important - than those in the three R's and I'm glad financial literacy requirements are in place in some states. I believe, however, that it's of paramount importance that parents take significant responsibility in the process as they will set the stage with their own behaviors as to how children will view and use money. I created a DVD, "The Money Mammals: Saving Money Is Fun," to help parents start this dialogue. If you are interested in finding out more, click on the link to the right.
Most importantly, youth financial literacy makes a difference. The NASBE report notes that "the evidence shows that youth financial education can make a difference. Individuals graduating from high schools in states the mandate personal finance education courses have higher savings rates and net worth as a percentage of earnings than those who graduate from schools in states without such a mandate. "
So before you decide to wait to talk to your kids about money, be sure to ask yourself, "Who will own YOUR children?"
John
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