Friday, October 21, 2011

Electronic Banking for Kids Versus Your Neighborhood Bank


We are firmly planted in the digital age and there is no going back.  So, do you only teach kids about online banking and skip your local bank experience?  No—do both.

Start your 5-year-old out with a trip to your local bank to open up a savings account.  Explain that the bank keeps your money safe and uses it to lend (rent) money to other people to, for instance, buy homes.  They pay you a little money, called interest, because they are using your money.  You can get your money when you want it, but you want them to save that money and not use it until they are much older for something big like college or a house.  After they grasp the regular monthly visit to deposit money, you can show them how online banking works.

Will your 5-year-old understand the concept of long-term savings?  Absolutely, positively not!  Do the adults in American even understand the concept of long-term savings? Absolutely, positively not! Wouldn’t it be a great concept to teach our next generation who is inheriting our personal and governmental economic messes from us?

Tuesday, October 18, 2011

Bobby Henline - An Inspirational Hero!

I was just down in Orlando working with the Entrepreneurship Bootcamp for Veterans with Disabilities (EBV) with Wounded Warriors to help them redesign their lives to become entrepreneurs.  I met Bobby Henline, one of our amazing heroes, who served our country.  As Bobby said, he learned that “3” is his lucky number because during his 4th tour to Iraq, his Humvee was blown up.  Bobby is a true hero in every way.  Through comedy and inspirational speaking, he helps other wounded vets and children regain their confidence after traumatic situations.  He’s turned his injuries into inspiration!




I encourage you to visit his website and learn more: http://bobbyhenline.com/.

Wednesday, October 12, 2011

How to Teach Your Kids About a Budget


Hopefully your kids are doing chores and earning money.  A budget does not have to be an instrument of torture.  It should be a habit.  The goal is to visually show your kids how a budget works.

Get 4 clear plastic jars or pouches.  Label them and divide the child’s money into: Charity Jar- 10%, Quick Cash- 30% (instant gratification), Medium-Term Savings- 30% (larger items to save for), and Long-Term Savings- 30% (college or a car).  Let your older kids research charities to whom they want to donate.  Steer the younger ones into a direction—maybe they want to give to sick children, for instance.  Quick cash is immediate gratification.  They worked hard so they get to spend some money, guilt-free.  You set the rules.  If it’s no candy, for example, those are the rules.  Let the kids learn from their choices.  Medium-term savings teach the rewards of pushing off instant gratification to save for something larger.  You can match dollar-for-dollar if the purchase is large.  Long-term savings is just that: college, a car, or other big purchases.  This is the money that is just saved and not touched.  Repeat: not touched.

Friday, October 7, 2011

The Allowance Debate

Should you or should you not have kids do chores to earn their money, or, should you just give them their money?

I’ll make it easy.  If you want to support the entitlement program of, “I’m on this Earth therefore I’m entitled to be supported”, then just dole out the dough.  But if you want kids to understand that the only way to get money is to earn it, then tie money to work.

There are two types of chores in a household: Citizen-of-the-World chores which you do for no pay, because we all share a planet.  And Work-for-Pay chores, where kids learn the life skills to make a home run—and they earn money.  For more tips and tools go to www.childrensfinancialnetwork.com/.  Let me know your thoughts.