FINANCES AND KIDS

Well its back-to-school time and the I wants and the, but Mom, I neeeedddd, and, I have to have xxxxx……are being heard throughout all of our homes.

As parents we all want our children to be liked, to be accepted and to do well in school.   But as the times are difficult we have to educate the kids on what we can afford and incorporate their ideas and strengths which can be a lesson in finances without them even knowing.

Luckily, most of our children are required to wear uniforms, which save us all a bundle!  So, we can splurge on backpacks and shoes.  If your child wants that special backpack, that only costs $$$$!!!! invite him or her to do some internet searching for the lowest price on that particular backpack…give them an incentive, the more you save me, the more I give you.  For example,   those really cool NIKE sneakers are at Sports Authority for $129, if your child puts his internet skills to work he may find them at $99 with no tax, and free shipping, offer him half of the difference, you both win!   You might even want to offer a percentage of the savings, that’ll get ‘em thinking!  

There are so many options available to us and with the internet at our fingertips we can teach while educating at the same time.   I am sure if one of mine wants some sort of electronic device, she will be able to quote the price, the store and the distance.    So use modern technology to your advantage and shop at your favorite stores, no interest for a certain timeframe and look for the store policies, some major stores will match any advertised price – simply print out the ad and have it ready when you are ready to buy, and they will match it. 

Some parents give weekly allowances and the kids are then set free to make their own choices, I don’t know about you, but in my home that could be dangerous.  But, congratulations to you if your kids are at that point in their life and use their senses. 

According to recent surveys, today’s high school seniors still lack basic money management skills.  CUNA Mutual offers age appropriate ideas for educating your children in finances.  No matter how old your children are now it’s essential to help them learn how to manage money wisely. Here are a few suggestions based on your child’s age starting as early as 5 years old:

Ages 5 to 10

• Begin giving your children a weekly allowance. 
• Let your children save for and buy something they really want. Savings habits are only reinforced with rewards, so saving must be tied to spending. Establish the difference between wants and needs - do they WANT it or do they NEED it?
• Provide opportunities to earn extra money by doing additional household jobs. 

Ages 11 to 14

• Include children on shopping trips to help teach them what things cost and smart-shopping techniques.  Let them help compare product qualities, prices, return policies, and warranties.
• Encourage odd jobs such as baby-sitting, yard work, or pet care. And encourage children to use their own money to buy beyond-the-basics clothing and accessories.

Ages 15 to 18

• Begin to discuss saving plans for upcoming goals, such as college and cars.
• Consider giving teens a seasonal clothing allowance, beyond their regular allowance.  After setting guidelines and limits let them make their own choices.
• Consider helping financially responsible teens get their own share draft/checking account. Tropical FCU offers the MyKindOf Checking account with a debit card specifically for teens and students!

Well my friends, you have your work cut out for you, happy shopping!

^Kat