Kids And Money

I Discuss Youth Financial Literacy on "The Intentional Parent"

2011-11-11T06:33:00.001-08:00

Helping kids control money...not the other way around

2011-07-04T07:17:00.000-07:00

I ran into a friend of mine at the local flea market recently. She is trying to do the right thing. She is giving her two kids a weekly allowance. Check. She's not tying it to chore AND giving them the opportunity to make extra money on the side with "over and above" chores. Check. She's having them set goals using their share jars. Check. But she's giving her 7-year-old two dollars a week.

Pfffft! The air went out of the balloon.

Kids need to get enough money to allow an allowance to work effectively. Giving them a paltry amount is going to frustrate them as they try to achieve goals for anything substantial. A 7-year-old should be getting six or seven dollars a week and, if you've started setting goals earlier, he can be saving up for items that are in the $50 - $100 range. Doing this on a two dollar allowance will be incredibly frustrating for a 7-year-old. Remember, you're trying to empower them and make the understand that money is simply a tool. We want to help them develop "positive" feelings toward money and to understand that it's something that they can control...not the other way around.

I was happy to hear when she decided to alter her allowance amount. Her 7-year-old is now getting six bucks a week and is saving for big Harry Potter lego set.

Note - this family is doing fine financially. I understand that many of us are hurting and if you're circumstances are such that you must give a smaller allowance, that is perfectly fine and understandable. It's more important to do something than nothing. If necessary, find an opportunity to discuss the amount and why it might be lower than you want to provide.

Good luck and please, please send me your stories as you try and help your kids become comfortable with money.

Guest Post by Raine Parker

2011-02-22T22:56:00.000-08:00

Raine Parker approach me about doing a post on youth financial literacy. We agree a some things (setting goals, starting early and the importance of allowance) and disagree on others (chores vs. no chores). Have a look and please comment to let me know what you think. Enjoy!

5 Lessons Children Can Learn from Getting an Allowance

I'm a firm believer in giving a child an allowance even for children as young as four and five! Why? Because it teaches them the concrete value of money as well as effective money management techniques at an early age. Allowances also provide many opportunities for teaching children specific lessons about money. Here I will discuss five key lessons your children can learn from getting an allowance.

1.) "Money is something you work for."

I don't condone giving a child an allowance without giving them some sort of age-appropriate chores or responsibilities around the house. This way they learn that money doesn't just appear out of nowhere. Four- and five-year-olds can make their own beds, pick up their own toys, set and clear the table and even feed pets. With help, they can even do more "grown up" chores like sweeping, unloading the dishwasher or drying off dishes with a kitchen towel. You might even send them throughout the house to gather any trash and dirty dishes to bring to you. Older children can do more difficult chores, like taking out the trash or vacuuming. The key is that they associate doing these simple household chores with the money they receive at the end of the week. If your child doesn't want to do chores one week, make it clear to them that they will not receive an allowance that week. You'll really drive the point home when they beg for toys or treats at the store, and you tell them, "You haven't earned any money for that toy or treat this week."

2.) "You save money to get the things you want."

Speaking of saving for toys, giving a child an allowance is a perfect opportunity to teach young children about saving. You may even want to give them an incentive to save at first like matching dollar-for-dollar every little bit they save in a jar in your child's room. When your child points out a toy that he or she particularly wants, ask them how much they have in savings (when they're old enough to count). You don't have to make them pay for the whole thing at first, but at least encourage them to pay for half of the toy out of their own savings. As they get older, they can pay for certain toys in their entirety.

3.) "It's important to give money too."

Allowances are also a perfect opportunity to talk to your child about charitable giving. If you are a church-going family, train your child to give a little of his or her allowance to the offering plate and explain that the money helps the church pay its bills. You may even want to encourage your child to use the money to support a child in a third world country through a nonprofit organization such as World Vision or Compassion International. To make the giving lesson more concrete, you can take your child to your neighborhood food bank or other local nonprofit organization and explain how giving some of the money from their allowance helps people in need.

4.) "You can save money toward a big goal."

Let's say your child wants something a little pricier, like a certain Wii or PlayStation game. You can talk to them about saving their allowance toward this big purchase. You can print out a picture of the game on your printer and tape it on the wall above their savings jar so they can keep their goal in mind. This will encourage them to save little by little until they can afford their big-ticket item.

5.) "Money is something to be grateful for."

When it's the day your child gets his or her allowance, teach him or her to ask politely for their allowance and to say thank you once they've received it. Explain to them that not all children receive allowances and that it's something that mommy and daddy have to work hard for. Encourage them not to brag about their allowances at school and to share their allowance when necessary by buying little things like snacks at a convenience store for a friend.

In conclusion, children can learn many valuable lessons by receiving an allowance. These are only a few examples. What lesson has your child learned in the past few months?

By-line:

This guest post is contributed by Raine Parker, who writes on the topics of online accounting degree. She welcomes your comments at her email Id: raine.parker6@gmail.com.

Build Good Habits Early - Why to start now!

2010-11-18T15:39:00.000-08:00

It's gratifying that more of my friends are asking me about starting their kids on an allowance program at the ages of five or six. I think those are great ages to start (even four for younger siblings as they like to mimic the older ones). More and more of them are getting the message that building good habits early will help them avoid having to break bad habits later.

I thought it prudent to share some of the ideas I've been sharing with my friends. Here are five really practical reasons for parents to start teaching kids about money that I've learned from personal experience as a parent:

1. A Strong Foundation - Building good habits early (which includes making some minor mistakes along the way) will help you avoid having to break bad habits later (or REALLY big mistakes).

2. Have Mall Fun - A good allowance program will make trips to the store or mall so much easier. When your kids ask you for something, you can tell them to save for it. You might get a few tantrums when you first start doing this, but if you stick to your guns your kids will get it.

3. Goals are Good - Setting goals is essential to teaching kids about money (that's how they deal with #2) and is an incredibly valuable life skill for them to learn. Set goals together. Note to self - follow your own advice more often on this one.

4. Confident Kids - Money is subject to so many taboos, not the least of which is discussing the stuff within the family. Set an allowance, give them cash to handle and discuss making choices, needs and wants and other essential money concepts. It will help make them more confident consumers when the subject is brought out into the open.

5. Visible Dough - So much of the transactions that kids witness involve invisible money. Make sure there is a physical component (cold, hard cash) to your allowance so that kids can count, transact and get confident with real money. Sure, money is already largely virtual and is only trending more in the total virtual direction, but young kids have tremendous difficulty with abstraction. Handling actual money is essential to early money learning.

I hope these tips help you. Let me know if they do or if you have anything else to add.

First Video Podcast - Saving for a Goal!

2010-07-26T13:02:00.000-07:00

Around the World

2010-04-20T06:14:00.000-07:00

I recently had lunch with a friend just before she was about to take off on an around-the-world journey. I was envious. We had talked previously about goals, something she knew I believed was important. But, more importantly, goals were something her Dad believed in. She put it simply, "It may seem cheezy, but this 'goal' thing works." I found it interesting that she had to include the "cheezy" disclaimer to me, a reader and listener of those same books, as if to say, "you know, I'm not some crazy, self-helf zealot."

That encounter made me realize two things:

First, having goals and putting them out there for the world to hear (I'm thinking of Gary Vaynerchuk's claim that he WILL buy the NY Jets) is a something that I believe can work for anyone and that more of us should embrace (I'm telling myself to be more vocal as I write). None of us should ever feel they need to defend our desires to strive for difficult goals with a line like, "I know it sounds cheezy, but..."

Second, we parents need to model goal-setting for our kids to really make it stick. This is important because modeling is how kids learn. They "do what we do, not what we say" (unless of course we do what we say). As I've noted in this blog many times, goal-setting for kids is a path to learning to save.

So put your goals out there for all to see. Have your kids to the same.

See where that takes you.

Around the world, maybe?

Take Advantage of Opportunities to Teach Your Kids about Money

2010-03-31T06:31:00.000-07:00

One of the biggest benefits of beginning money talk with your kids when they are young is that there seem to be endless teaching opportunities or "teaching moments" afforded to us by them. Kids love to ask questions and providing them answers to such things as...

"Why can't we go out to dinner again tonight?" (discuss the family budget or the cost of doing so)
"I really want that American Girl doll. Can you buy it for me?" (talk setting goals and saving)
"Why do I have to put money in my Share jar?" (it's time donate those dollars - make it tangible for them)

...will help them feel more comfortable with money and money choices. Money is a tool with which kids should be comfortable. Talking to them about it will keep it from becoming a "taboo topic."

By not talking to your kids about money, you'll miss the chance to engage with them in these ultra-important teaching moments. It will increase the chance that money will move into the realm of "taboo topic" and that can lead to misunderstandings and, worse, financial illiteracy when they get older. Talking to them about money doesn't guarantee money smarts, but not doing so carries tremendous risk.

Are you worried they might not understand? You'd be amazed what they can understand at a young age. Check this out:

Choose to Save

Thrive by Five

-John

Guest Post - Kerrie Davis of Rogue FCU on financial literacy and families

2010-02-19T11:25:00.000-08:00

I am very excited to post our first guest blogger, Kerrie Davis, the Community and Education Outreach Coordinator at Rogue Federal Credit Union. Kerrie is an incredibly talented woman with whom I have worked to develop The Money Mammals Saving Money Is Fun Kids Club. Kerrie has been involved in youth financial literacy for kids of all ages (as well as adults) and she brings a unique perspective to the importance of involving families in the process.

So, here's Kerrie...

Many people don’t equate sharing as a money management concept. However, it is an essential part of money management. In order to share you need to save or give of your time. In light of today’s economic fallout, I can not agree more that we need to teach our youngest kids the concepts of money management. There is a direct connection between those that are financially savvy and their awareness of basic financial concepts. Granted, this economy has thrown many people off track and in many cases certain financial institutions added to the financial burden that they are experiencing. There are so many factors that have created the perfect storm for so many folks. Between the sub-prime loans, cheap and easy credit, the rise and subsequent fall of home values, the declining economy, increased unemployment and questionable lending practices affected many families who were not prepared for what lay ahead. However, I recently received an email from a young adult that has a college degree, his dream job and is trying to save his home in the foreclosure nightmare. He stated that “he did not know that an interest only loan was the worst method to pay his mortgage.” We have gaping holes in our financial knowledge that has had a direct affect on the financial success of individuals especially in this economy.

Kerrie presents @ Building Hope foreclosure seminar

For the past year, we have been helping our middle class and upper middle class families with their financial struggles. Lack of savings combined with the loss of jobs and industry declines have affected the majority of families living in the counties we serve. Many of them looked at their homes as a source of borrowing. I often ask myself if the majority of folks had been taught financial concepts from the time they were 2 or 3 years old would we have as many families in trouble as we do in our nation. Recently a father said to me that his 16 year old did have the competence to understand how to handle money! If we start at the high school level we are too late. They have already formed habits and they have been watching their parents and relatives struggle with their own money issues. How different would it be if everyone at age two were taught the very basic of sound money management concepts? They would grow up to understand needs vs. wants, how to set goals, saving, sharing with others and how to be a smart consumer. Kids need to learn about saving for goals, giving back to others and using common sense in their spending decisions. I think we would have fewer families losing their homes, using all of their savings and retirement money to “stay afloat” and more prepared for rough times that they are experiencing today. The affect on our families, our communities and our nation would be much brighter and we would have a more stable financial future. My question is how long is it going to take for us to understand that financial literacy is a life skill as important as looking both ways before we cross the street?

-Kerrie

Visualize - What Superbowl MVP Drew Brees can teach us about goals

2010-02-08T09:22:00.000-08:00

Everyone now knows Drew Brees.

Being inches shorter than your average Joe NFL QB, performing for a once moribund franchise, and playing for a city that was almost completely destroyed, Brees is now on top of the world. And he used one tremendous tool to overcome all of those shortcomings to take himself and his team to the top - visualization. I read and listened to numerous interviews leading up to the Superbowl and I was struck by how many times he attributed New Orleans Saints' success to visualization.

While I've talked a lot about goals in this blog, I haven't really talked about or really focused on the need to "visualize" those goals. We are going to focus on this with our girls and their goals. Kids are incredibly good with imagination so I think this will be easy for them - likely easier than for we adults.

Here's an easy way to get started. If you haven't done so already, create a Save jar, find an achievable goal (start with something that will take 3-4 weeks if you're just starting and a bit longer if it's your kids' second or third goal), paste a picture of that goal that they want on the Save jar and then encourage them to visualize having that goal as much as possible. If you haven't started an allowance program, I highly recommend the book, Allowance Magic, which is available in our store.

Visualization is a tool they'll take with them forever. If Brees in any indication, visualization can help you achieve pretty much anything you or your kids can dream up. Good luck.

-John

Share Jar - Your Kids Can Help Haiti

2010-01-26T08:51:00.000-08:00

If you've been following this blog and my advice about having three jars for your kids - Share, Save and Spend Smart - you're likely to have a kid with a sizable amount in his or her Share jar. If your kids have some money saved up and you haven't done so already, the awful events and desperate need in Haiti present you with a teaching moment that will help them make a difference. Have your kids donate the money they've accumulated in those Share jars to Haiti relief. I read today that relief is starting to fade, so now is a great time to help.

The girls and their jars

Most schools are discussing what happened to the tiny island nation and have collection buckets so it's likely very simple for kids to just bring in their money to donate. We even told our girls that we'd match their donations (and include a little more) with our own donation to the Red Cross.

Helping Haiti

Relief dollars for Haiti from a 4-year-old

-John

PS My wife gets the credit not only for coming up with the idea, but also getting it done AND taking pictures.

Back to American Girl

2010-01-14T06:23:00.000-08:00

In keeping with my belief that the point of an allowance is to allow kids to make mistakes and learn from them, I said yes to my daughter's request to save for an American Girl doll. She's set her goal and pasted the exact doll she wants on her Save jar. Big bonus - she immediately shifted all of her money from the Spend Smart jar into Save, once again proving that an "owned" goal is just as powerful for 6-year-olds as they are for grown adults.

My hope in this experiment is that she'll earn at least a trickle of appreciation for how expensive the dolls are when she is finally able to purchase one in about two-and-a-half months. It will be interesting. I'll keep you posted.

-John

My American Girl

2009-12-21T09:00:00.000-08:00

"Can we just stop in the American Girl Doll Store?" These are ten words that really, truly scare me.

Now, before you get all "what do you have against dolls?" on me, let me explain. Although I can appreciate the theory behind American Girl (learn about history) and the strength of the brand - the colors, the numerous dolls, the consistency (the hair salon? the cafe?), American Girl dolls are first and foremost about one thing - consumption. And those prices? Your entry level fee (doll and costume) is about $100 (the "starter kits" hit you with two bills, including tax). These aren't dolls - they are status symbols.

My question is, "what type of status are you trying to show?" That said, I think it's important in the process of teaching kids about money to let them spend the money they've earned via their allowance in their Spend Smart jar with a reasonable amount of autonomy. So I answered yes when my daughter asked me to go in. For those who know me at all, that was a big step. Also, she had brought only six bucks with her, so I knew there was no real chance that we'd purchase anything at an AG store.

I quietly walked around with her as she pointed out various interesting features on the dolls (she of course knew many of the names). It's a testament to their marketing machine that even someone as jaded as I am gets drawn in by the brand (that just screams to be parodied in Warholesque style for it's impressive sameness). Finally, Quinn asked me the price of the Chrissa doll (which she calls, "Little Eileen," as it bears a striking resemblance to my wife). As objectively as I could, I told her that the Chrissa (who apparently took home 2009 AG "Girl of the Year" honors) was priced at a cool $95. I explained that it would take her about four months to save for the doll, and that was accounting for the fact that she had already saved over forty bucks in her Save jar. She stared at the doll.

This wasn't our first conversation about AG dolls and I have consistently tried to steer her toward other, less expensive dolls. See, I'm not anti-doll! I think dolls are a natural part of a girl's development, just like Han Solo in Bespin outfit was for me (I kid, I kid). I mention that this wasn't our first conversation because, without prodding from me, she looked up and asked to leave. I imagine this won't put an end to her AG fascination (the fact that so many of her friends have them is a big driver), but it's part of the process. I'll keep you apprised.

-John

A $10 Gift Card? A Coupon Teaching Moment

2009-11-15T08:45:00.000-08:00

"Dad, look, here's a $10 gift card to Toys R Us. Can we go?"

"Well, honey, that's not really a $10 coupon. It's $10 off if we spend $75. We would have to spend $75 in order to save $10."

"Ok. Let's go."

The world of children is often described as very black and white (I want this and if I don't get it, I am going to die), but it's the nuances of gray that most often challenge us as parents. Some coupons are good, some coupons are not so good - white and a slightly grayish-black. Our neighbor gave our 6-year-old a coupon organizer filled with various coupons that would seem to both of them to be a very noble gift.

I will say this - it led to a teaching moment. We were able to explain to our daughter that a coupon for something you intended to buy or something you actually needed is an excellent way to save money. Because she now somewhat grasps the basic idea of marketing and advertising - to get people to spend money - we explained to her that the coupon she thought was a gift card, "$10 off if you spend $75 at Toys R Us," was really just an invitation to spend $65 or more dollars. Granted, money spent at Toys R Us would likely yield something she wanted, but we were able to turn the conversation back to her Save jar. Because she's currently saving for a $79 item (one of those folding chair/bed combos), and she was aware of how much time that was taking her, we were able to explain the purpose of that coupon a little easier.

Teaching moments are terrific and the more context you can provide for your child, the more relatable to her experiences, the more valuable it will be. This lesson certainly doesn't mean she wouldn't love to go on a $65 shopping spree at Toys R Us (she would...heck, I would), but it does help her to understand the concept that the money spigot must be turned off regularly in order for it to provide money when it's turned on.

Oh, and we're going to go use a 40% coupon at Aaron Brothers to get some canvases we planned on buying for an art project this afternoon. Teaching moments rule.

Just Add Kids

2009-11-11T05:33:00.000-08:00

We are really fortunate. Our Money Mammals teaching guide, for kids 1-2, just won the Oregon State Desjardins award for leadership in youth financial literacy, courtesy of Rogue Federal Credit Union and Kerrie Davis. Thanks, Kerrie! I also happened to be using the teaching guide this week in my daughter's K-2 class at Larchmont Charter Schools here in Los Angeles, California. The guide provided a nice framework for a "Share" (charitable giving) lesson tied to the school's Thanksgiving food (and money) drive. I brought in some jars and the kids decorated them with fun Share labels and Goal labels for the amount they planned to save over the two weeks until the Thanksgiving drive ended. I enhanced the lesson with video from my show.

The kids really enjoyed setting the goals and I just know that they will do an incredible job bringing in food and money for the needy. The take-home lesson for me was that, once again, you just need a good framework and just add kids. The kids are ready to learn about many aspects of financial literacy at a young age (five and six in this case) and they make any lesson so much more than you could have imagined prior to going into the classroom.

Share YOUR Insights with Marketplace Money

2009-10-12T15:59:00.000-07:00

The good folks at American Public Media's Marketplace Money are planning a show focused on kids and money and they want to know how you teach your kids about money. You can check out the questions here, http://bit.ly/1mCR7H. Fill out the questionnaire and share your insights on kids and money.

Stunning Stats & the Solution!

2009-10-06T06:25:00.000-07:00

Here are some stunning stats to think about regarding financial literacy:

-62% expect of college graduates will have a student loan debt averaging $27,236 (Student Monitor)

-Only 11% of workers under 35 years of age indicate they are participating in their company's 401(k). (American Institute of Certified Public Accountants)

-40% will never gain a net worth in excess of $10,000 (American Dream Education Campaign)

-In most cases, economics and personal financial literacy programs are elective classes so “only 12% of Americans graduate from high school having learned anything about money at all.” (FoxNews.com)

-Less than one-quarter of students and only 20% of parents say students are very well prepared to deal with the financial challenges that await them after graduation. (KeyBank)

We spend so much time trying to fix bad habits in teens, young adults and adults. It's not working! When are we going to realize that the lion's share of our focus must be on the children. We must be good habits in our young children.

Still don't believe me? Please read this.

-John

6 Great Youth Financial Literacy Links

2009-08-13T08:27:00.000-07:00

These are some of the top resources that I've found that can help you teach your kids about the value of money:

Allowance Magic - Short, simple authoritative allowance system. Full disclosure - We sell this book on our site, www.themoneymammals.com.

Thrive By Five - What can kids learn about money BEFORE they enter kindergarten? A lot!

Early Childhood Financial Literacy - Great study about the importance of teaching kids and building good money habits young.

Frugal Dad - This Dad is on a mission. Join him.

First National Bank of Dad - I LOVED David Owen's book. His wit and wisdom can help you teach your kids about money. Incredibly well written.

The Money Mammals (www.themoneymammals.com) - Full disclosure - I created this DVD. Like Frugal Dad, I'm on a mission to teach kids about the value of money and I believe it's important to make the process fun. Our DVD is a family affair - my wife and I came up with the concept to teach our kids about the value of money, I wrote the script and my brother wrote the songs. Your kids or grandkids will love the DVD and they'll learn something in the process. If they don't, holler at me (john@themoneymammals.com) and we'll give your money back.

Let me know what you think and post YOUR favorite resources.

Don't Forget the Family

2009-07-08T06:44:00.000-07:00

Times may be tough, but whatever you do, please don't lose your focus on the family. I know I posted on this recently, but it bears repeating because I've seen and talked to so many families under stress trying to shield their kids from the burdens they are facing. This is EXACTLY the time to enlist your family in the effort to help work things out. Your kids are going to "feel" any stress that you may be feeling, whether you talk to them directly or not. So talk to them, reassure them, let them know that you are working hard to make sure that everything is going to work out, no matter how bad things may seem.

Make them a part of the process, "we need to conserve, kids, so please don't run the faucet when you're brushing your teeth, pour only enough milk into your cereal bowl and please only flush once." They will want to help. Let them.

-John

Share - Charitable Giving For Kids

2009-06-03T10:28:00.000-07:00

The least utilized used bank in my daughter's Share / Save / Spend Smart bank set is that pesky Share (charitable giving) one. I say pesky because we need to provide here more guidance. We require that she put $1 of her $4 allowance dollars (she's 6) in Share and she did give to a Leukemia society last year, but I think it's time to bring the goal-setting ideas we use for the Save bank (which have worked) to the Share bank as well. I thought this article on eHow was very helpful in giving us a framework to create a better Share program.

-John

Twitter Updates

2009-05-22T06:07:00.000-07:00

Don't forget to check out the interesting information and articles I'm tweeting about on the sidebar to the right.

My Twitter Account

Financial Distress? Focus on Family

2009-04-22T06:51:00.000-07:00

"I don't want my kids to be stressed about our financial situation. They're too young." One mom said this to me at a recent event and because it has become such a common refrain, I felt that I needed to highlight a post I made about Sue Schellenbarger's WSJ article last September. It's even more relevant today. Many families are in serious financial distress and a common reaction to this is to shield the kids. This is virtually impossible to do. Your kids are going to feel your stress and if you don't explain to them what's going on, they'll make their own leaps.

Talk to your kids about difficulties you might be having and assure them that you are working to make things alright. Enlist them to help - they typically want to be involved. Give them simple things to do (e.g. don't run the water while brushing teeth, turn lights off when you leave a room). Use Ms. Schellenbarger's article as a guide for your conversations and, if you still don't believe that involving your kids is important, look at they study she cites about the importance of focusing on the family in times of distress. Your problems are your family's problems. Face them together as a family.

Allowance for Obama Kids

2009-04-11T10:47:00.001-07:00

Janet Bodnar of Kiplinger is right on the money when it comes to the Obama kids, Sasha and Malia, and how their parents handle their allowance. Janet points out that the paltry $1 allowance they each get is likely counterproductive. There is virtually no way that 10-year-old Sasha is going to learn about money management by receiving $1/week. Think about it. If she saved for one year - an eternity for someone that age - she'd have $52. What could she buy for $52? A pair of sneakers? Maybe. A videogame? Again, maybe. Very little that would likely convince her that the time was worthwhile.

I hope that Janet's article makes its way to the president's desk. I won't hold my breath waiting for that to happen, but I will suggest that it's very important for us as parents to have an allowance system that is not tied to chores and allows kids to save an amount of money that would have a stronger psychological impact on them.

For example, imagine if Sasha were to receive $10/week and her parents incentivized or required her to give some portion to charity (say $1 or 10% per week), save some portion (minimum 10%) and then allocate the rest as she saw fit (with guidance and requirements that she would have to pay for some amount of her own clothes and/or friends' gifts). Then, at the end of the year, she could give $50 or more to her chosen charity (think of the potential impact on other kids) and save $200 or more for a goal she set with the assistance of her mom & dad. How about a custom bed for the new dog? What an opportunity for the Obamas. I know they're busy, but I hope they listen to Janet.

-John

Money Mammals in Wall Street Journal!

2009-03-22T11:30:00.000-07:00

My DVD, "The Money Mammals: Saving Money Is Fun," appeared in the Personal Journal section of The Wall Street Journal on Thursday. Click here to check out the piece on "Toys to Teach Saving Savvy."

Willa Plank writes about the DVD, "Teaching simple concepts such as money transactions, saving allowance money, and sharing in the form of gifts through catchy songs and funny dialogue, it isn't hard to see why our 5-year-old tester enjoyed it." The article reviews other financial literacy products for kids, including The Money Savvy Pig, The Millionaire Kid$ Club books and Big Pay Day.

It's great news for all of us involved in getting the word out that it's imperative to teach kids about money as early as possible.

-John

The Thrift Shift?

2009-03-15T17:27:00.000-07:00

I heard a very interesting story this Thursday on NPR's Morning Edition. Linda Wertheimer chatted with the Wall Street Journal's David Wessell about the recent rebound in the savings rate from near zero to 5%.

Click here for a link to audio and print

Click here for NPR's Savings Rate Tracker

I'm hopeful but skeptical that America's relatively sudden interest in saving will keep but I'm mostly curious to know what you think. Once conditions improve economically, do you think Americans will go back to their spendthrift ways or do you think that the current crisis has or will radically alter American consumption and that we're entering an "Age of Frugality"? In short, are we seeing a "Thrift Shift?" Please comment.

-John

President's Council Report

2009-02-13T06:18:00.000-08:00

"While there are many causes to the economic problems facing this country, it is undeniable that lack of financial literacy is a contributing factor."

-Charles Schwab, Chairman of the President's Advisory Council on Financial Literacy

You can click here to read the 2008 report.

Keep in mind that although I have highlighted this very important government foray into improving financial literacy in America, I still firmly believe that parents are at the heart of the solution. Although we should all appreciate the effort being put forth to improve youth financial literacy on the national and state levels in our schools, children will ultimately learn their most important lessons from parents who model behaviors, good and bad, for their children.

-John