raising financially fit kids

P E R S O N A L F I N A N C I A L M A N A G E M E N T P R O G R A M

Raising Financially Fit Kids


R A I S I N G F I N A N C I A L L Y F I T K I D S 2

If I had my child to raise all over again,If I had my child to raise all over again,I'd build self-esteem first, and the house later.I'd build self-esteem first, and the house later.I'd finger-paint more, and point the finger less.I'd finger-paint more, and point the finger less.I would do less correcting and more connecting.I would do less correcting and more connecting.I'd take my eyes off my watch, and watch with my I'd take my eyes off my watch, and watch with my eyes.eyes.I'd take more hikes and fly more kites.I'd take more hikes and fly more kites.I'd stop playing serious, and seriously play.I'd stop playing serious, and seriously play.I would run through more fields and gaze at more I would run through more fields and gaze at more stars.stars.I'd do more hugging and less tugging.I'd do more hugging and less tugging.

– – Diane Loomans, from "If I Had My Child To Raise Over Diane Loomans, from "If I Had My Child To Raise Over Again"Again"


IntroductionIntroduction

•How do kids learn about money?•Four Steps to Financially Fit Kids

– Explore Your Values and Habits– Develop Effective Communication Skills– Focus on the Basics

•Allowances•Saving and Spending•Basic Budgeting

– Create a Love of Life-long Learning

•How do kids learn about money?•Four Steps to Financially Fit Kids

– Explore Your Values and Habits– Develop Effective Communication Skills– Focus on the Basics

•Allowances•Saving and Spending•Basic Budgeting

– Create a Love of Life-long Learning


Our Money, Ourselves: Take A Hard Look At How You Handle Your Money

Our Money, Ourselves: Take A Hard Look At How You Handle Your Money

No matter how calmly you try to referee, parenting will eventually produce bizarre behavior, and I'm not talking about the kids.

– Bill Cosby

No matter how calmly you try to referee, parenting will eventually produce bizarre behavior, and I'm not talking about the kids.

– Bill Cosby


What is your relationship with money?


•What money “messages” do you send to your children?

•What have you done right with your money?

•What do you wish you had done differently?

•What money “messages” do you send to your children?

•What have you done right with your money?

•What do you wish you had done differently?




•What money mistakes have you made?

•How can the answers help envision a financially healthy child?

•What is the grade on your “Fiscal Fitness” Report card?

•What money mistakes have you made?

•How can the answers help envision a financially healthy child?

•What is the grade on your “Fiscal Fitness” Report card?


Let’s Talk: Develop Effective Communication Skills

Let’s Talk: Develop Effective Communication SkillsThat money talks, I’ll not denyI heard it once … it said, “Goodbye!”That money talks, I’ll not denyI heard it once … it said, “Goodbye!”


How We Talk to Each OtherHow We Talk to Each Other

•Find a neutral time

•Give a little to get a little

•Know where you stand

•Bring in a third party

•Find a neutral time

•Give a little to get a little

•Know where you stand

•Bring in a third party


How We Talk to KidsHow We Talk to Kids

•Approach discussions with a positive attitude

•Set a tone of confidence/openness

•Lighten the mood

•Have an equal exchange – no lectures!

•Ask questions/listen to answers

•Approach discussions with a positive attitude

•Set a tone of confidence/openness

•Lighten the mood

•Have an equal exchange – no lectures!

•Ask questions/listen to answers


How We Talk to KidsHow We Talk to Kids

•Don't talk down to your child

•Don't bring up old financial disagreements

•Make sure your kids know they can always turn to you for financial advice/information

•Learn to say, “It’s not in our budget.”

•Don't talk down to your child

•Don't bring up old financial disagreements

•Make sure your kids know they can always turn to you for financial advice/information

•Learn to say, “It’s not in our budget.”


•It is okay to say “No”.

•Healthy guilt helps your child develop a conscience

•We can all use a lesson in the difference between needs and wants

•Insist on a “no-nag zone”, especially when you must shop with children

•It is okay to say “No”.

•Healthy guilt helps your child develop a conscience

•We can all use a lesson in the difference between needs and wants

•Insist on a “no-nag zone”, especially when you must shop with children

How Kids Talk to UsHow Kids Talk to Us


How Kids Talk to KidsHow Kids Talk to Kids

•Help them cope with financial peer pressure– Listen without judgment

– Share your own story

– Don’t back down from your values

– Encourage kids to hang out with "the right crowd"

– Praise them for doing the right thing

•Help them cope with financial peer pressure– Listen without judgment

– Share your own story

– Don’t back down from your values

– Encourage kids to hang out with "the right crowd"

– Praise them for doing the right thing


How Advertising Talks to All of UsHow Advertising Talks to All of Us

• Magazines aimed at children

• Promotional toys tie in to cartoons, TV shows and movies or promote brand consciousness and loyalty

• Cartoon and toy characters are used on all kinds of products

• Databases of children

• Advertising in schools - Channel One

• Magazines aimed at children

• Promotional toys tie in to cartoons, TV shows and movies or promote brand consciousness and loyalty

• Cartoon and toy characters are used on all kinds of products

• Databases of children

• Advertising in schools - Channel One

• Promotional licensing of products aimed at kids

• Logos

• Children's radio networks

• Children's toys carrying product placements (Barbie™ dolls with Coca Cola™ accessories).

• Give-away programs include promotional merchandise aimed at children (McDonald's™ "Happy Meals").

• Promotional licensing of products aimed at kids

• Logos

• Children's radio networks

• Children's toys carrying product placements (Barbie™ dolls with Coca Cola™ accessories).

• Give-away programs include promotional merchandise aimed at children (McDonald's™ "Happy Meals").


Fight the Influence of Advertising


•Start young•Explain how advertising works•Point out “tricks of the trade”•Explain how marketers target young

people•De-construct food advertising•Discuss the value of money•Talk about being a wise consumer

•Start young•Explain how advertising works•Point out “tricks of the trade”•Explain how marketers target young

people•De-construct food advertising•Discuss the value of money•Talk about being a wise consumer




•Challenge definition of “cool”

•Watch non-commercial TV

•Explain effects of mass consumerism on the planet/society

•Encourage non-commercial values

•Put shopping into perspective

•Promote positive advertising examples

•Challenge definition of “cool”

•Watch non-commercial TV

•Explain effects of mass consumerism on the planet/society

•Encourage non-commercial values

•Put shopping into perspective

•Promote positive advertising examples


Growing the Financially Fit Child

Growing the Financially Fit ChildIf you want children to keep their feet on the ground, put some responsibility on their shoulders.

– Abigail Van Buren

If you want children to keep their feet on the ground, put some responsibility on their shoulders.

– Abigail Van Buren


AllowancesAllowances

•To give or not to give

•How much? How soon? For what?

– Give at a specific time

– Make sure they save some

– Increase amount as child gets older

– Clothing allowances help children learn to manage larger amounts of money

– Negotiating raises teaches a valuable money management lesson

•To give or not to give

•How much? How soon? For what?

– Give at a specific time

– Make sure they save some

– Increase amount as child gets older

– Clothing allowances help children learn to manage larger amounts of money

– Negotiating raises teaches a valuable money management lesson


Saving/Spending/SharingSaving/Spending/Sharing

•There are multiple uses for money.

•10% to Savings

•10% to Sharing

•80% to Spending

•Give Allowances in denominations that can be distributed between these categories

•There are multiple uses for money.

•10% to Savings

•10% to Sharing

•80% to Spending

•Give Allowances in denominations that can be distributed between these categories


Kid’s BudgetingKid’s Budgeting

Rule #1: For all ages -Keep it Simple!

Concepts for Parents of Toddlers and PreSchoolers

Rule #1: For all ages -Keep it Simple!

Concepts for Parents of Toddlers and PreSchoolers



•Grades K – 2– Saving/Spending/Sharing

– Chart Savings

– Plan Spending

•Grades K – 2– Saving/Spending/Sharing

– Chart Savings

– Plan Spending



•Grades 3 – 6– Checking and savings accounts

– Matching grants

– Shopping and gift giving

•Grades 3 – 6– Checking and savings accounts

– Matching grants

– Shopping and gift giving


Teaching TeensTeaching Teens

•Younger Teens– Budgeting and financial goals

– Checking and savings accounts

– Taxes - Someone has to pay the garbage man

– Odd jobs - Extra money for goals

– Financial peer pressure can be costly

– Use the Internet wisely

•Younger Teens– Budgeting and financial goals

– Checking and savings accounts

– Taxes - Someone has to pay the garbage man

– Odd jobs - Extra money for goals

– Financial peer pressure can be costly

– Use the Internet wisely


Teaching TeensTeaching Teens

•Older Teens

– Prepare them for the world!

– Budget with short/long-term financial goals

– Savings and checking accounts

– Familiar with standard costs-of-living

– IRA, if employed

– Teach how compound interest and time works

– How to shop around for loans and credit

– How to use an ATM/ debit/check cards

•Older Teens

– Prepare them for the world!

– Budget with short/long-term financial goals

– Savings and checking accounts

– Familiar with standard costs-of-living

– IRA, if employed

– Teach how compound interest and time works

– How to shop around for loans and credit

– How to use an ATM/ debit/check cards


Too often we give children answers to remember rather than problems to solve.

– Roger Lewin

Too often we give children answers to remember rather than problems to solve.

– Roger Lewin

Foster a Life-long Loveof Learning


Resources for Raising Financially Fit KidsResources for Raising Financially Fit Kids

•Your CFS (Command Financial Specialist)

•Fleet and Family Support Center

•Your Bank or Credit Union

•The Internet


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raising financially fit kids

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