College, the start of independence. Making more and more choices on their own. Mommy and Daddy aren’t looking over their shoulder anymore.
This is the time to witness everything you have taught your child and hope it all pays off. You have set a great foundation on money matters and now it is time to see them follow through on the suggestions/values/ideas you have given them.
By now your child probably has their own checking account, they have been earning money and may even have an idea of what they want to do for a career and what that job will give them in salary. If you as the parent are helping out with costs such as books or room & board, then from the beginning set out each persons responsibilities. For example, if you said you would pay for food then set a budget each month. Don’t allow your child to just spend whatever they want, they still need to follow some set boundaries especially if it isn’t their money.
In college, your child will be tempted to apply for credit cards if they haven’t already been approached to this. Educate you child before they leave on how a credit card works and how it effects their credit report. If possible allow your child with 1 credit card, they don’t need more then one.
One more point. Friends might ask to “borrow” money. Teach your child that other children may not understand the value of money like he or she does so use caution when someone asked to borrow money.
As always, you are still their “financial coach” during this stage. Encourage them to call home with any questions when it comes to their finances during school.
Save your coins, Susie Saver
P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com
Financial planning lessons are posted two times a month. Next lesson on, “Should you tell your Child how much you make?”.
Friday, July 16, 2010
Tuesday, July 6, 2010
Setting up Saving and Spending Accounts for Teens
Teenagers seem to have a good handle on how to spend, especially other people’s money. But it is our job to teach them to save and spend their “own” money. It’s time to introduce a savings account.
From birth until the end of elementary school a piggy bank is all your child needs to learn the concept of protecting the money they saved. Now they are in Jr. High, receiving a larger allowance and need a safer place to keep their cash, a savings account.
Take your child to the local bank and help them open up their savings account. Explain to them that this account replaces their piggy bank. They should keep a record of their deposits and withdrawals so they always know what their balance is. In addition, at the end of each month, they may even earn some interest on their deposits. Teach your child that this savings account is where they go to deposit their allowance or money from other resources. When they want to buy something they come to this savings account to make their withdrawals.
This is a very important step in introducing the banking system because soon enough they will transition to a checking account and need to know where that money is coming from when they write a check out.
Save your coins, Susie Saver
P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com
Financial planning lessons are posted two times a month. Next lesson on, “Going to College- What to share with them before they leave the nest”
From birth until the end of elementary school a piggy bank is all your child needs to learn the concept of protecting the money they saved. Now they are in Jr. High, receiving a larger allowance and need a safer place to keep their cash, a savings account.
Take your child to the local bank and help them open up their savings account. Explain to them that this account replaces their piggy bank. They should keep a record of their deposits and withdrawals so they always know what their balance is. In addition, at the end of each month, they may even earn some interest on their deposits. Teach your child that this savings account is where they go to deposit their allowance or money from other resources. When they want to buy something they come to this savings account to make their withdrawals.
This is a very important step in introducing the banking system because soon enough they will transition to a checking account and need to know where that money is coming from when they write a check out.
Save your coins, Susie Saver
P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com
Financial planning lessons are posted two times a month. Next lesson on, “Going to College- What to share with them before they leave the nest”
Tuesday, June 22, 2010
The Lemon-Aid Stand
How sticky summers call for a cool summer drink purchased from the local neighborhood..."Lemonade Stand." Will your child be an entrepreneur this summer and open up their very own store front?
This time, help them financially so they can see for themselves what they buy the lemonade for vs. how much their selling it to determine their profit. Start off with the "kitty." Give them a certain amount to start with, lets say $10.00. Go shopping with them to buy the lemonade and cups (you may even want to offer cookies for your customers). Have your child pay from the "kitty." Now, start selling the lemonade!
"Cool refreshing drinks for $1.00" (or whatever price you determine). At the end of the day have your child count the money in the "kitty" and see if they have more than they started with. In this example, it would be $10.00. It’s a sticky lesson learned.
Save your coins, Susie Saver
P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com
Financial planning lessons are posted two times a month. Next lesson on, "Setting up Savings and Spending Accounts for Teens"
This time, help them financially so they can see for themselves what they buy the lemonade for vs. how much their selling it to determine their profit. Start off with the "kitty." Give them a certain amount to start with, lets say $10.00. Go shopping with them to buy the lemonade and cups (you may even want to offer cookies for your customers). Have your child pay from the "kitty." Now, start selling the lemonade!
"Cool refreshing drinks for $1.00" (or whatever price you determine). At the end of the day have your child count the money in the "kitty" and see if they have more than they started with. In this example, it would be $10.00. It’s a sticky lesson learned.
Save your coins, Susie Saver
P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com
Financial planning lessons are posted two times a month. Next lesson on, "Setting up Savings and Spending Accounts for Teens"
Thursday, June 3, 2010
Saving for your Goal
We learned from my last blog how and when to give your child an allowance. Now we need to teach them to set that allowance aside to purchase the things they want. Below is a step by step guide, following the basic principles of financial planning that you can use with you child.
Step 1: Talk about what they want to purchase. Ask them why they want that particular item. Sometimes they cannot explain why and will decide not to spend their money on an item that is not so desirable. If they still want to pursue that item, then determine the cost.
Step 2: Gather data: What do they currently have saved and what do they still need? What resources are available for them to earn money vs. waiting for their allowance to come in.
Step 3: Analyze: Make a poster board and write in the weeks needed to accummulate enough allowance to purchase their goal. This will help your child literally see when they can buy their item. Let them know they have other resouces available from step 2 in order to earn money prior to waiting for their allowance to come in.
Step 4: Reccomendations: Determine from step 3 if your child will wait for their allowance to accumulate or do something else to earn the money needed for the purchase.
Step 5: Implement: Start saving or applying your other resource!
Step 6: Monitor: Track your progress each week. Write on your poster board what you made and how much allowance you recieved each week. Add up what your currently have to what you just recieved for the week and keep a running total. You’ll always know where you are in achieving your goal and what you still need to do or how long to wait until you will accomplish it.
Anyone can follow the 6 steps in financial planning, just adjust them to each person’s learning ability. Good luck and have fun with it!
Save your coins, Susie Saver
P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com
Financial planning lessons are posted two times a month. Next lesson on, “The Lemon-Aid Stand.”
Step 1: Talk about what they want to purchase. Ask them why they want that particular item. Sometimes they cannot explain why and will decide not to spend their money on an item that is not so desirable. If they still want to pursue that item, then determine the cost.
Step 2: Gather data: What do they currently have saved and what do they still need? What resources are available for them to earn money vs. waiting for their allowance to come in.
Step 3: Analyze: Make a poster board and write in the weeks needed to accummulate enough allowance to purchase their goal. This will help your child literally see when they can buy their item. Let them know they have other resouces available from step 2 in order to earn money prior to waiting for their allowance to come in.
Step 4: Reccomendations: Determine from step 3 if your child will wait for their allowance to accumulate or do something else to earn the money needed for the purchase.
Step 5: Implement: Start saving or applying your other resource!
Step 6: Monitor: Track your progress each week. Write on your poster board what you made and how much allowance you recieved each week. Add up what your currently have to what you just recieved for the week and keep a running total. You’ll always know where you are in achieving your goal and what you still need to do or how long to wait until you will accomplish it.
Anyone can follow the 6 steps in financial planning, just adjust them to each person’s learning ability. Good luck and have fun with it!
Save your coins, Susie Saver
P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com
Financial planning lessons are posted two times a month. Next lesson on, “The Lemon-Aid Stand.”
Thursday, May 13, 2010
Allowance: When and how Much
“Mommy, I want a Barbie Doll. Daddy, I want a new truck.” If you are hearing these statements then it is time for an allowance. This can start as early as 3 years of age. Once your child expresses interests in “wants” (not needs) then it is time.
Three years of age may sound early but it is best to start young when your child wants to listen and learn from you. It is to late, if you wait until they are teenagers because at this age they already have a good handle on the “spending” stage. Plus, what teenager wants to listen to Mommy and Daddy about money. It is best to catch them early and instill these lessons to them.
So we now know when to start (as early as 3) but how much do you give?
Rule of thumb has been $1 per week per the child's age. So, if your child is 3 years old, you will give them $3.00 at the end of the week. Remember in my past blogs, put this money in their piggy bank. They don’t need to understand the banking system yet. All they need to know is where to store it in a safe place until they want to spend it. Now when they are in junior-high then yes, start incorporating the banking system.
Another way of looking at giving an allowance is determining what your child’s financial responsibilities are. For example, if they have to buy their own movie tickets and allowed one movie per week then you need to budget that into their allowance. Then, if your child spends all their money mid week they know that they don’t have enough left over and can’t go to the movies. This is a great lesson on opportunity cost: buying one thing over the other.
One mistake I want to point out is linking allowance to chores. Many child development experts say you shouldn’t do this. Doing household chores is just helping out, contributing to the family. An allowance is not an award system. It could be as “bonus” money if they go above and beyond the call of duty. However, an allowance is a way to start teaching your child that they have so much to spend on “wants” and to help them budget those decisions. Because in life you don’t get everything you “want” you need to pick and choose!
Save your coins, Susie Saver
P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com
Financial planning lessons are posted two times a month. Next lesson on, “Saving for your Goal”
Three years of age may sound early but it is best to start young when your child wants to listen and learn from you. It is to late, if you wait until they are teenagers because at this age they already have a good handle on the “spending” stage. Plus, what teenager wants to listen to Mommy and Daddy about money. It is best to catch them early and instill these lessons to them.
So we now know when to start (as early as 3) but how much do you give?
Rule of thumb has been $1 per week per the child's age. So, if your child is 3 years old, you will give them $3.00 at the end of the week. Remember in my past blogs, put this money in their piggy bank. They don’t need to understand the banking system yet. All they need to know is where to store it in a safe place until they want to spend it. Now when they are in junior-high then yes, start incorporating the banking system.
Another way of looking at giving an allowance is determining what your child’s financial responsibilities are. For example, if they have to buy their own movie tickets and allowed one movie per week then you need to budget that into their allowance. Then, if your child spends all their money mid week they know that they don’t have enough left over and can’t go to the movies. This is a great lesson on opportunity cost: buying one thing over the other.
One mistake I want to point out is linking allowance to chores. Many child development experts say you shouldn’t do this. Doing household chores is just helping out, contributing to the family. An allowance is not an award system. It could be as “bonus” money if they go above and beyond the call of duty. However, an allowance is a way to start teaching your child that they have so much to spend on “wants” and to help them budget those decisions. Because in life you don’t get everything you “want” you need to pick and choose!
Save your coins, Susie Saver
P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com
Financial planning lessons are posted two times a month. Next lesson on, “Saving for your Goal”
Wednesday, April 28, 2010
Todays Electronic Banking systems...do Kids understand it?
A child overhears his parents say they don’t have money to purchase something and that child chimes in and says, “You do have money, just use that plastic thing in Mommy’s purse.” As this is a cute story it is so real to so many people. Usually, over 70% of people use credit cards to pay for goods these days!
As your child gets older they start to “get it” but young children don’t know were money comes from and were it goes because they don’t “see” it being exchanged anymore! So how do you fix this. Start showing your statements to your children. Show the bank statement were money is deposited, show the credit card statement were all the “stuff” is being purchased and then show the bank statement again showing you paying for all the stuff you just bought / charged.
Make sure you are incorporating some math skills: Money deposited is a positive number and money paying the credit card is a negitive number. The answer to the math question should be a positive number, if not then you don’t have money to buy it! It’s as easy as that.
Save your coins, Susie Saver
P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com
Financial planning lessons are posted two times a month. Next lesson on, “Allowance: When and how Much”
As your child gets older they start to “get it” but young children don’t know were money comes from and were it goes because they don’t “see” it being exchanged anymore! So how do you fix this. Start showing your statements to your children. Show the bank statement were money is deposited, show the credit card statement were all the “stuff” is being purchased and then show the bank statement again showing you paying for all the stuff you just bought / charged.
Make sure you are incorporating some math skills: Money deposited is a positive number and money paying the credit card is a negitive number. The answer to the math question should be a positive number, if not then you don’t have money to buy it! It’s as easy as that.
Save your coins, Susie Saver
P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com
Financial planning lessons are posted two times a month. Next lesson on, “Allowance: When and how Much”
Wednesday, April 14, 2010
What Age should you start Teaching your Kids to be savvy about Money and how to do it!
Five years old? Ten? Twenty? Maybe even at birth? Some parents are saying they are still learning themselves and that is ok, we all heard the saying…it’s never to late to start saving. But how early can you start teaching your kids and have them actually comprehend it?
The answer…as early as three years old. Now at three your child won’t know how to add coins up to equal a dollar but they do understand what “money” is. They see you handling money (or a form of money) at the grocery store to “spend” and hopefully sees you go to a bank (or some form of a financial institution) to “save” money such as the money they receive as gifts for their birthday. So the relationship with money has already started at an early age…don’t think it hasn’t. A great way to start engaging your kids and help them become money savvy is to incorporate money decisions with them.
For a three year old you can start “bartering” with them. For example, if they want a new toy suggest they need to give you two old toys to “buy” the new toy. By doing this it helps them understand they need to give up something of value to receive value.
For children in junior high you can now start to teach them to “manage” money. When they get birthday money or start receiving an allowance have them open an account where can they “deposit” those funds. When they want to buy something they are now old enough to calculate and see if they have enough. You can show them how to withdrawal the dollar amount needed to purchase what they want. At this stage your child should understand the importance of saving, either for short or long term goals. Make sure you are helping them manage their money and “plan” accordingly so they can accomplish their short and long term goals. (More on this coming out on the June 1st lesson.)
High-school, time of high fashion (if not already in junior high) and college cost around the corner. They now can legally work and start saving (and spending) a lot more. Hopefully in junior high the “manage” stage has settled in nicely as the foundation for what's to come in the high-school years. Determine with your child the things that they are responsible for and what you are willing to pay for early on such as gas for the car, insurance for the car, high-school dances, dates, and college expenses to name a few. Whatever you decide make sure you stay consistent! These are the last four years you have to make an impact on your child’s finances before they leave for college or move out of the house. By setting these boundaries your child will know how much money they need to set aside and save in order to buy the things they want well in advance of them happening. For example, if you told your child you will only pay for half their car insurance then they know what the bill is and when it is due and how much they need to have in the bank to cover the cost. Sit down with them and continue to help “manage” their account as their income and outcomes (deposits and expenses) become greater.
During high-school start talking about college and what each persons financial expectations are. Research colleges together and work as a team to come up with a plan as how this expense will be paid. College is becoming more and more expensive and kids are taking on a lot of debt once they graduate. Educate your child about this, talk about it, help “manage” these accounts and come up with a solution. (More on lessons to teach a high-school graduate in the July 15th lesson.)
To sum it up, to help your child become financially savvy start early and include them in family decisions (appropriate to their age) to teach real world money examples.
Save your coins, Susie Saver
P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com
Financial planning lessons are posted two times a month. Next lesson on, “Todays Electronic Banking systems…do Kids understand it?”
The answer…as early as three years old. Now at three your child won’t know how to add coins up to equal a dollar but they do understand what “money” is. They see you handling money (or a form of money) at the grocery store to “spend” and hopefully sees you go to a bank (or some form of a financial institution) to “save” money such as the money they receive as gifts for their birthday. So the relationship with money has already started at an early age…don’t think it hasn’t. A great way to start engaging your kids and help them become money savvy is to incorporate money decisions with them.
For a three year old you can start “bartering” with them. For example, if they want a new toy suggest they need to give you two old toys to “buy” the new toy. By doing this it helps them understand they need to give up something of value to receive value.
For children in junior high you can now start to teach them to “manage” money. When they get birthday money or start receiving an allowance have them open an account where can they “deposit” those funds. When they want to buy something they are now old enough to calculate and see if they have enough. You can show them how to withdrawal the dollar amount needed to purchase what they want. At this stage your child should understand the importance of saving, either for short or long term goals. Make sure you are helping them manage their money and “plan” accordingly so they can accomplish their short and long term goals. (More on this coming out on the June 1st lesson.)
High-school, time of high fashion (if not already in junior high) and college cost around the corner. They now can legally work and start saving (and spending) a lot more. Hopefully in junior high the “manage” stage has settled in nicely as the foundation for what's to come in the high-school years. Determine with your child the things that they are responsible for and what you are willing to pay for early on such as gas for the car, insurance for the car, high-school dances, dates, and college expenses to name a few. Whatever you decide make sure you stay consistent! These are the last four years you have to make an impact on your child’s finances before they leave for college or move out of the house. By setting these boundaries your child will know how much money they need to set aside and save in order to buy the things they want well in advance of them happening. For example, if you told your child you will only pay for half their car insurance then they know what the bill is and when it is due and how much they need to have in the bank to cover the cost. Sit down with them and continue to help “manage” their account as their income and outcomes (deposits and expenses) become greater.
During high-school start talking about college and what each persons financial expectations are. Research colleges together and work as a team to come up with a plan as how this expense will be paid. College is becoming more and more expensive and kids are taking on a lot of debt once they graduate. Educate your child about this, talk about it, help “manage” these accounts and come up with a solution. (More on lessons to teach a high-school graduate in the July 15th lesson.)
To sum it up, to help your child become financially savvy start early and include them in family decisions (appropriate to their age) to teach real world money examples.
Save your coins, Susie Saver
P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com
Financial planning lessons are posted two times a month. Next lesson on, “Todays Electronic Banking systems…do Kids understand it?”
Monday, April 5, 2010
Easter candy Now or Later
Spring is here! The warm weather, hearing the birds sing and seeing my buds starting to pop out of the ground. It also means the Easter Bunny is coming, bringing lots of candy to all the boys and girls, filling up their Easter baskets.
You may be thinking why does the Easter Bunny have anything to do with teaching children about financial planning. Well looking at your child’s behavior during this time can tell you a lot. Such as, is your child a quick spender or future based thinker? Does he or she eat their Easter candy real fast or save it for later? Now, looking at how your child eats their candy isn’t going to answer all your financial planning question, it just helps prove a point. If you watch them and they set some candy aside this shows good behavior and that they are planning for the future. This opens up a great conversation to have on “planning”.
I saw my nephew over the weekend put some of his candy in a bag to take home from his second cousins house. Or he may of just been stealing the other kids candy and hiding it in this bag. Since he is my nephew, let’s say he was saving. Now, take this moment and ask them why they aren’t eating all the candy right now. See what they say and talk to them that saving their candy is similar to savings money so you can spend it later (just like eating the candy later). If you spend all your money now then you won’t have any later.
For those children who just dove right into their Easter baskets. Well, dive right in with them and enjoy the “living in the now”! Then explain the consequences when it is all gone. This is another great way to teach the lesson. But remember to tell the kids, wouldn’t you like some candy later if you had it available? My own two year old daughter was in this group. She ate all the candy she can set her eyes on….I got a lot to teach her.
Save your coins, Susie Saver
P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com
Financial planning lessons are posted two times a month. Next lesson on, “What age should you start teaching your kids to be savvy about money and how to do it”.
You may be thinking why does the Easter Bunny have anything to do with teaching children about financial planning. Well looking at your child’s behavior during this time can tell you a lot. Such as, is your child a quick spender or future based thinker? Does he or she eat their Easter candy real fast or save it for later? Now, looking at how your child eats their candy isn’t going to answer all your financial planning question, it just helps prove a point. If you watch them and they set some candy aside this shows good behavior and that they are planning for the future. This opens up a great conversation to have on “planning”.
I saw my nephew over the weekend put some of his candy in a bag to take home from his second cousins house. Or he may of just been stealing the other kids candy and hiding it in this bag. Since he is my nephew, let’s say he was saving. Now, take this moment and ask them why they aren’t eating all the candy right now. See what they say and talk to them that saving their candy is similar to savings money so you can spend it later (just like eating the candy later). If you spend all your money now then you won’t have any later.
For those children who just dove right into their Easter baskets. Well, dive right in with them and enjoy the “living in the now”! Then explain the consequences when it is all gone. This is another great way to teach the lesson. But remember to tell the kids, wouldn’t you like some candy later if you had it available? My own two year old daughter was in this group. She ate all the candy she can set her eyes on….I got a lot to teach her.
Save your coins, Susie Saver
P.S. Email Susie and tell her what you want to learn about at: susan@susiesaverbooks.com
Financial planning lessons are posted two times a month. Next lesson on, “What age should you start teaching your kids to be savvy about money and how to do it”.
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