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Teaching your kids and grandkids a better relationship with money Digital Bytes Recipe of the Month Kim's Reads
This Month
July Newsletter
Teaching your kids and grandkids a better relationship with money
Kids usually learn the basics in school, reading, writing and arithmetic. But the standard curriculum tends to avoid almost any instruction about money. If they do offer a class, it’s just an elective in high school, long after habits have been formed. We believe it’s important to start talking about finances early, when kids are young. You can help by sharing your own values and views on money. The idea is to create a culture that places a premium on saving instead of spending, whenever possible. While we can’t shelter our children, we can teach them. Which is what we tried to do with both of our sons as they were growing up. 1. Teaching delayed gratification. This is the hard part. Some of us are better at it than others, even as adults. Look at it in another way. For kids, anticipation can be half the fun. It’s the journey. Think about it when we see our kids awaiting the arrival of Santa, the excitement that comes with going to an amusement park, or on an upcoming family trip. If they want to buy a pricey item, help them save for it. You can lend support by setting up various methods for savings. We all remember the piggy bank. Money goes in, but never really
comes out. Instead, set up three jars. One for savings, one for giving, and one for spending. 2. Incorporate giving it away. We believe the giving jar is as important, if not more important, than the savings jar. At FSG we place a huge focus on giving more. This relates back to what we placed emphasis on as parents as well. Is there a local food bank or animal shelter your daughter or son can assist with donations to? A charity run or walk they can take part in with family or friends? Setting up opportunities to give back teaches life-long lessons. Learning to help those who are in need will create a stronger sense of selflessness that, if taught early on, will continue to grow throughout adulthood. 3. Kids need money. Theory without practice usually doesn’t work. Kids need a hands-on lesson. You can start with an allowance and pay kids for various chores. What about birthday gifts, Christmas gifts, etc.? Set goals with your children, but lean heavily toward that savings bucket. Annual gifts that can add up over the years. The idea is that hopefully your child would graduate high school with savings for the future, that they happened to earn themselves. Even if they might have not understood it at the time.
Besides having extra cash that they earned themselves, they’ll learn a strong sense of pride and responsibility in the work that they did. 6. Open a savings account. A saving account helps kids learn. A 5-year-old might not “need” a savings account, but adulthood isn’t that far away for a teen or pre-teen. As young adults they will have a checking account, debit card, and eventually a credit card. Baby steps in the right direction will ease the transition and help them learn the idea of a budget. As they grow older, discuss the benefits of investing with your kids. Outside of a college savings account, you may open an account in their name and teach them about investing. You could start it with seed money and have them contribute on a regular basis. More importantly, help them buy into a savings goal. That way, they can take ownership. If you’re unsure about how to start that process, which we know can be a little bit more complicated, that’s what we’re here for. 7. There’s an app for that. Today, there are mobile apps that can help kids. Bankaroo, iAllowance, and PiggyBot are just a few. Take a look online and see which one is best for your family.
4. Teach by example. Explain to your children the difference between “plastic money” and actual income. The bottom line being that just because you have the limit, doesn’t mean it’s your money to spend. If it hurts your chances of paying off your credit card balance each month, don’t buy it. A good principle to live by is to pay-off your credit cards each month, no exceptions. In addition, consider using lists when shopping. Your children will see that it helps avoid impulse buys. And, as kids grow older and the discussions are age appropriate, explain why you try to avoid impulse purchases. Use various examples from your life when you might have made the “wrong” financial decision. We’ve all had them. Teach your kids about the importance of money, savings and avoiding debt whenever possible. 5. Encourage summer and after-school jobs. Trading time for cash via a job helps kids learn the invaluable lesson of hard work. It also encourages saving and provides a chance for extra spending money. Cutting the grass, shoveling the snow, yard work, washing cars, babysitting, helping in the family business or household chores are all great options.
8. Guide them with goal setting. Are they trying to save for something? Help them come up with a plan and incentivize with matching funds. Companies do this with 401ks, why can’t parents? Discuss the importance of needs versus wants. A teenager may “need” a bicycle. But do they “need” one with all the bells and whistles? Or, are there reasonably priced bikes that won’t bust the savings account? Maybe consider a used bicycle 9. Money isn’t everything. Yes, it’s important. It gives us choices. But by itself, money can’t buy happiness. 10.Let them make mistakes. As with most things, it’s the only way they’ll learn. Give them room to make some of the wrong decisions, so that they know what not to do next time. Research shows that kids who have had practical experience with money, learned how to work hard, how to better manage money, and how to spend it wisely. Isn’t that the best outcome possible? . * *This material was prepared by Horsesmouth and revised by our firm
These days much of our personal information is stored on the world wide web. As a result, cyber security has become even more important. Our team wants to help support safe cyber security practices by sharing some simple data protection tips every month. July's TIp: As simple as it sounds, many of us forget to turn off our computers after we use them. However, leaving your computer on, and connected to the internet means you're vulnerable to cyber attacks. It also gives scammers a chance to access to install malware. So in short, power off=peace of mind.
Digital Bytes
Recipe of the Month
Instructions: In a salad bowl arrange the watermelon, tomatoes, cucumbers, olives and feta cheese Then make the basil vinaigrette. In a glass bowl or jar, whisk the olive oil, vinegar, lemon juice and honey. Add the basil and chives. Season with salt and pepper. Drizzle the vinaigrette over the salad, sprinkle with salt and pepper Enjoy! *Source: halfbakedharvest.com
Greek watermelon feta salad with basil vinaigrette The perfect summer bbq salad Ingredients: 4 cups cubed watermelon 2 cups cherry tomatoes, halved 2 persian cucumbers, diced 1 cup kalamata olives, pitted 8 ounces feta cheese, cubed 1/4 cup olive oil 3 tablespoons balsamic vinegar juice from 1 lemon 2 teaspoons of honey 1 cup of fresh basil, chopped 2 tablespoons of fresh chopped chives sea salt and black pepper
Kim's July Read
Marrow: A Love Story The story of two sisters uncovering the depth of their love through the life-and-death experience of a bone marrow transplant. Throughout her life, Elizabeth Lesser has sought understanding about what it means to be true to oneself and, at the same time, truly connected to the ones we love. But when her sister Maggie needs a bone marrow transplant to save her life, and Lesser learns that she is the perfect match, she faces a far more immediate and complex question about what it really means to love—honestly, generously, and authentically.
