William Penn Life, 2001 (36. évfolyam, 1-12. szám)
2001-05-01 / 5. szám
10 BASIC "TIPS ^ your wds good money Things you need »- -—un,ess you 7. sp *- -8et ,nto 8 Show kids how creon. , O *» ta* «ou«.or yo^^^and not don't go over your allotted amount. • They should also be flexing their math skills at the register by telling you information such as how much change to expect, how much you have saved, and how much to tip. • Reward their efforts. If they have been diligent with their money, slip them a bonus in their weekly allowance, or give their savings a little boost by adding some interest based on how much they have saved, or match their donation to a charitable organization of their choice. Periodic rewards (once every few weeks or months) can really be inspiring. AGES 10-13 • Further increase the number of items for which your kids are responsible from their weekly allowance. You'll want to start including school lunch and some clothing purchases. • Start playing the stock market game with them. Give them an imaginary amount of money to invest in the stock market. Let them pick stocks and track their progress. Show them how to read the stock tables in the newspaper or get quotes on the Internet. Don't forget to account for commissions. For more information on the stock market game, check out Money Mentors web site made for kids at muw.KidsKash.net and their kids' e-newsletter called "KidsKash." • Put them in charge of the family entertainment budget or the budget for the annual family vacation. Let them handle the accounting and remind them that they can't go over the budgeted amount for the month or trip. If they want to do a special activity or see a special show, they'll need to plan for it by cutting back on other entertainment expenses. • It is time to consider a money Money Links For more information about raising your kids to have good money management skills, log onto the Money Mentors web site at: O www.moneymentors.com making project for your youngster. For advice on how to get started, check out Money Mentor's jobs/business page. AGES 14-18 • Your role has really changed from "boss" to "advisor." Keep this in mind when you are dealing with your child's finances. • Help your teen get an after school job or start and run a small business. • As your child moves through her teens, she should be more and more responsible for her own expenses. By the time she is a senior in high school, she should be primarily responsible for her own clothes, entertainment, after school activities and school lunches. If this sounds a little scary, remember that she will be on her own soon enough. She might as well learn how to do it under your supervision and while the stakes are not as high. • If you haven't already done so, go over exactly how credit works. Your child will soon be inundated with credit card offers. It is never too soon to warn them of that danger. • By the time your child is ready for college, she should be able to balance a checkbook, pay bills in a timely manner, prepare and follow her own budget, plan for large but unusual expenses, like tuition and books, save an adequate amount of money to have an emergency cushion and find the best deals on a variety of purchases. • Make clear guidelines regarding the car. Who is going to pay for the insurance, gas and upkeep? Will your child be receiving a car for her 16th birthday or should she plan to contribute all or part of the cost? If you are not crazy about the idea of your 16 year old driving, maybe you can strike a deal where you will pay her whatever you will save in increased insurance premiums if she agrees to put off getting her driver's license. You'll both save quite a bundle. No matter what you decide to do, you should discuss these issues long before her sweet 16. • Review the status of your child's college account with your child. She should be contributing to it with the money from her long term savings. Have her help you track the investments within the account. By the time she leaves for school, she should be managing the whole account, with just a little bit of help from you, of course, [jjjj] Wiliam Fenn Lile, May 2001 5
