Posts Tagged ‘Finance For Youth’

Hiatus

Posted: February 24, 2012 in Finance For Youth
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Sometimes stuff happens that is outside our control. One thing many people will do is to try to react quickly to “fix” the problem. Generally, doing that just makes the original stuff worse. Over the years, I’ve tried to teach young people and the people who love them to do the right thing.

Even when the right thing is to step back.

Knowing that this decision may cause some readers to stop following F4Y, but also knowing that the quality and integrity of my work is too important to play with, it brings be great sadness to say that Finance For Youth: The Blog is temporarily going on hiatus until some situations from my life outside of F4Y get settled.

It is my hope that I will be back soon, providing accurate financial information, funny pictures, and even songs. I thank you, the reader, for your loyalty thus far, and while I shouldn’t ask for it, I appreciate your patience and continued loyalty in the future.

 

William J. Stanton
Founder
Finance For Youth

 

A couple of days ago, a young student approached me and asked me for some career advice. The student wanted to understand a little more about what banking and finance is about, and how it measures up in terms of their “dream job“. I was very impressed with this young student, because unlike many of their peers, they were actually trying to look at their future and start planning. This student, to be fair, is part of an advanced group of students. They get tutoring as part of their regular school day, they have additional instruction in note-taking and other study skills, and they are in advanced Math and English classes. They have a leg up over many students already. This young person seemed to have a leg up on even this group.

There was another teacher in the room at the time, who had worked in a similar field in her younger years, and we both shared some of the upsides and downsides, many of the really funny incidents, and some of the sad, sobering, almost depressing parts of our former jobs. See, no job is truly perfect. There are some good parts and bad parts, and much of adult life is about learning to deal with the bad parts while preparing for, waiting for, and whenever possible working to create the good parts.

And while just that much would have been a good enough lesson, that isn’t the main point of this post.

If you have been doing your job as a parent or concerned party of a young person, there is likely to be a point where they will ask you about career advice themselves. How you respond, what you say and how you say it, and your timing are crucial.

Once a young person asks your advice about future careers, they are putting the trust of their future in your hands!

So how do you respond?

“Follow your bliss!”

Some parents think this is great advice. They want their children to be happy in whatever they do. I’m not going to say that this approach doesn’t have any merit because I know that all parents want their children to be happy. Hell! I’m not even a parent, and I want other people’s children to be happy in their career. Happy people generally don’t make as many mistakes, and tend to do their jobs much better overall than their less happy peers. If that’s all it takes to be able to go to Taco Bell and not get my order screwed up or just ugly, then follow that bliss.

But there is a slight downside. For many kids, their bliss is playing video games or taking obnoxious pictures of themselves for Facebook. True, with a little creativity and some luck, you can make a career out of either of those, but neither has that ring of career aspirations that would make a parent proud.


 

“Follow the family!”

Okay, if “the family” is really The Family, I’m staying out of this argument altogether! But assuming that we’re talking about parents like my mom, who truly believe that following in the family business or doing the same job as your parents is a good thing, there’s a lot to be said for this method too. There is nothing wrong with upholding the traditions of your family, taking advantage of the skills and training from what may be generations of people who have done a job with love and with pride. I kind of like to believe that I’m in my family’s business as a teacher because my grandfather was a teacher in his home country. I get that I’m probably stretching a bit, but it makes me feel good.

But what if, like me with my mom, the family business just isn’t a good fit? Even if I went into my mom’s business of nursing and caring for the sick, that isn’t me either. One of my brothers works construction. He has three daughters that all together probably don’t have the upper body strength required to do what he does, plus it isn’t a very feminine job, and his daughters are very feminine girls. Should they, and I, have taken a job that we don’t enjoy? Even if it means that we will suck at it and embarrass the very people we were trying to please by doing the job in the first place?

“What’s important to you?”

The way I approached my student was to ask what was important to them. What are they looking for in a career? We also talked about what skills they felt they might want to strengthen. As we talked, I was able to throw a few different ideas their way, and as what they said changed, I was able to change my suggestions to fit their evolving priorities. Keeping in mind that this student is very young, and their priorities will change several times between now and when they become an adult, it was more important to get them to think in terms of what they want out of a job than it was to try to stuff them in a hole that might become a bad fit later on.

Is there a downside to this? Sure, I guess that the student might have felt a little unfulfilled when they came to a trusted advisor with the hopes of getting a concrete suggestion. I guess that walking away from a conversation where you hope to get answers with nothing but more questions can be annoying. I’m okay with that because this student needs the opportunity to decide things about themselves before they are going to be ready to plop down for a career that might last them the rest of their lives.

I don’t know why, but as I was having my conversation with my student, I kept thinking that someday they’d be alright.  Of course, one of my favorite songs about someday is this one, and while it is a sad song, and possibly a little depressing, I’ve always enjoyed it and I hope you do too.  Enjoy!

 

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Let me start by apologizing for this being a longer post. I’ll try to keep it short, but I am covering like 30 years of history, so I beg a little grace from my awesome readers!

 

When I was young, from a very early age, I knew I wanted to be a teacher. I knew I was GOING TO BE A TEACHER. This might come as a bit of a surprise to many of the teachers when I was in school, but I knew that someday I would be among them as a peer, and not as a student. Because I liked to read, was good at writing, spelling, and grammar, I was sure I would be an English teacher. Like I said, my teachers didn’t have as much faith in my ability to become a teacher as I did, but more interestingly, my parents would frequently throw out alternatives to try and tempt me away from following my dreams. My dad was an X-ray technician who transitioned into being one of the very early MRI technicians when the technology was just becoming available. My mom would encourage me to follow in his footsteps, regardless of how loudly or excitedly I would protest that I wanted to forge my own path. I guess old habits are hard to break, because it was only in the last 4 or so years, when it was obvious that I was actually, no-kidding around, for reals, becoming a teacher, that she stopped with her brand of “encouragement”.

When I left high school, I was a little disillusioned about higher education or the prospect of being a teacher. I figured it would happen, but I was young and I wanted to take a little time to enjoy being outside of a classroom before I committed myself to being inside one again for the rest of my life. So I went into the exciting world of finance. I took a brief (15 or so year) sabbatical from my childhood dream, and I kind of dug it for a while, until I didn’t. Then I went back to school and was convinced that I was going to be a teacher again.

A strange thing happened during those 15 years. I got to enjoy other subjects. I was into economics of course, but tied in with that was government and history. I still say that each of those three have to be taught in tandem in order to be taught correctly. Currently our school system teaches one at a time, and almost in a vacuum, which has a chilling effect on the interest levels of students. But that’s another argument for another time. I decided that I didn’t really want to teach English after all. I decided that I was going to teach economics.

Over the past three years, I’ve had some very interesting teaching assignments. I’ve been able to teach incarcerated youth; I’ve taught in regular schools; I’ve even taught at some alternative schools that would break most peoples’ hearts (mine included). I’ve taught every subject, including subjects that I wasn’t able to pass when I was in school. I wound up avoiding those classes in favor of teaching subjects that I was good at.

Except one.

Never in my own academic career was I good certain subjects. I sucked at Woodshop, a fact that those who know me well understand. But worse than my ineptitude with carpentry was my absolute idiocy when it came to math. I could not do math. It was my worst subject ever. People used to ask me when I was in banking how I could do that job and still be bad at math. Luckily, there is this thing on top of most desks, called a computer, that does the math for me. Once, by pure luck, I was assigned to teach a math class at a school. Apparently, I did something right, because teachers at that school and others in the district have been passing my name around as a great math teacher because of the way I teach. It has gotten to the point where many people in the district think that I actually am a math teacher, and not a history, economics, government, or whatever teacher like my credential says. So I’ve made the decision to do what I need to do to actually become a math teacher.

I told my story because I hear from people every day who tell me that they are in situations that they never thought they would be in. They had a view of what their lives would be like when they grew up that wound up not matching reality.

I also see people with their noses stuck in books written by some very intelligent financial advice sales people. They make all their decisions based on what they believe this writer or that TV personality would suggest. They do all this to the exclusion of everything else that is going on in their lives. For some, it works as they hoped. For others, like those who try fad diets, fad financial advice is a round trip proposition. You get yourself into the position you planned on getting yourself into, only to relax back into your old habits. This leads to you getting into a deeper hole than the one you started in.

The answer is to be open to different paths while still keeping your eye on your overarching goal.

Is your goal to be able to send your kids to a college you couldn’t afford for yourself?

How about to be able to retire and live out your remaining years in a bungalow in Disney World?

Maybe your goal is as simple as being able to pay off your credit card and possibly taking your kids to Disneyland during spring break. It is important to have a plan, but when something comes around that messes with that plan, you have to be able to reevaluate your plan from the new point of reference instead of the original, where you started.

Whatever your goal is, life will sometimes get in your way.  Sometimes your own decisions will get in your way, and sometimes the decisions of others will be responsible.  Whether or not you make your goals depends in large part on how you react, on what decisions you make, and on your own ability to assess and deal with changes as they come up.

Whenever I think of my life, and all the twists and turns it has taken over the years, I think of a river.  Whenever I think of a river, I think of this song.  Because the original is somewhat sad and this is a weekend, I’ve also included a more up-beat version that always makes me laugh.  Enjoy!

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“I don’t get it. I should have gotten the promotion. I’m better than he is.”

“She never notices all I do for the company, she sucks as a boss!”

“It’s not like it was my fault! WTF was she doing checking up on me?”

“He got me written up for being late a bunch of times.”

I used to hear stuff like this all the time when I was in banking and dealing with so-called “adults“. To be honest, it was mostly the younger adults, but not always. Now that I’m out of the business of dealing with adults, I hear a lot of complaints from kids that sound eerily familiar and worry me about the future.

“She got me in trouble for dress code violation!”

“I got yelled at because I had my phone out during a test. I was just checking the time!”

“He gave me Friday Detention because I didn’t turn in my homework on Tuesday.”

“Stupid Principal, called my parents because I didn’t go to school yesterday, now I’m in trouble at home too.”

What are all these people really saying? Really, they are expressing their own disappointment in their jobs or in their performance at school. The adults know, however deep-down, that their setbacks are not the fault of the other person. They know that their own behavior led to the situations about which they are reacting. It just feels better to bitch about who wronged you were. They know that there are probably reasons why one person will get a promotion over another. Sometimes these decisions are unfair, but most of the time they are justified. They know that bosses have a lot on their plates, and sometimes don’t have the ability to see everything they should. They know that part of their bosses’ responsibilities might be to make sure that they are doing the job they are paid to do. They know that they are held accountable to be at work on time every time.

My kids at school are at a precipice. I want to believe that they also know that they can’t blame Teacher X or Principal Y for their own misfortune. I want to believe that they really understand that they chose to violate the dress code. I want to believe that they know that they can’t pull out their cells during a test without opening themselves up to the possibility of being accused of cheating. I hope they understand that there are consequences for actions, and in the case of not doing homework, for inaction. I want to believe that they understand that cutting class is a big deal, and parents get a little pissed about these kinds of things.

But should I?

It wasn’t until fairly recently that I put it together in my head that the parents of the kids that complain about the world being against them are the same people who are complaining about how the world is against them! This is a learned behavior.

So how do we fight back?

It starts with me: If you are a parent, or like me, a teacher, or any other kind of role model, you need to let it start with you. We all have bad days at work, bad months even. We need to be honest with ourselves to recognize that sometimes stuff just happens. Sometimes we contribute to the problem by our reactions, and sometimes we create the problems. We need to act and react in a proper way so that those watching us with little eyes can learn the correct way to handle adversity.

Take control early: All of the above statements share one thing. They are all statements of reaction. Too often, we get busy, or bogged down in day-to-day details to think about proactively attacking situation. If my boss isn’t prone to notice the contributions I make to the company, maybe I should take some time to point out, in a respectful way, how valuable I am to the company before I get frustrated.

Be your best you: I get that it can become tough and monotonous to come in to work every day and give your absolute best. That’s what vacations are for. That’s what time off (weekends or just time between shifts) is for. I’m sorry, and I know full well how hard it is for me as well, but you have to be the best you possible whenever you go to work. Not just because your boss will like it, not because it is your job to do your best, but because doing so can motivate others around you to up their game as well.

These are just three of hundreds of things that you can do to deal with many of the setbacks that seem to creep up when least expected and least wanted. I’m sure there are more ideas, and I look forward to hearing what your ideas might be.

Of course we don’t just try to shift blame when it comes to work. Dylan wrote this song, but I firmly believe Mr. Cash did it best.  Enjoy!

 


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I was talking with a co-worker the other day about teaching kids about money. She mentioned that she had problems getting her child to save money. In her experience, getting her child to save worked only when she and her child would fight. Her child wouldn’t save on its own, money given was almost instantly money spent, and her child had even lied to her about how much money her child would earn or be given. She was frustrated that she, a teacher, wasn’t able to teach her children the importance of smart money management. So she threw the question at me:
 

How do I make my kids save money?
 

Before we get to the answer, let’s look at what we are dealing with. First, let me say that I’m not talking about EVERY person in EVERY situation, but many people in this particular situation. If this isn’t you, congratulations! You are ahead of many of your friends. If this is you, don’t feel too bad about it, most of your friends who deny that this is them are lying to themselves anyway.

Any parent will tell you that you can’t make your child do anything. They’ll tell you stories going back in their children’s history about toilet training (or housebreaking, as I like to think of it- not a breeder), or getting their children to eat the right foods, or even about sleep patterns. These parents, after fighting for almost half a decade just to get their children to the point where they can function at school, often give up trying to teach about money and hope their children will pick up money skills somewhere else.

Then we send our children off to school where many teachers do their absolute best to get their charges to learn the absolute basics needed to move on to the next level. This is where I currently come into the picture. Let me give you a little picture of what kids are dealing with today.

Kids are given a worksheet for “Cornell Notes” that is pre-printed with much of the information they need to know already filled in.
The rest of the notes are displayed on an overhead projector with the teacher telling kids “Write down where your notes say subtopic that calls for random bullet point>.”

In English and History classes, kids are no longer required to READ FROM THE BOOK!! That was so big it deserved two exclamation points. When many parents were in school, you had to read from the book. Now, textbook publishers include .mp3 files or cd’s with all the reading so a teacher can just play the file and the kids just sit and read.

In many districts and schools, teachers are required to teach a specified list of topics by the state, leaving little to no room for financial topics.
Many teachers would love to teach many different topics. For several reasons, whether it’s about money, time, experience of the teacher in different skill-sets, or whatever else, we too often run out of time with your children before we run out of mandated education topics.

At the end of the 12 years of mandated education, we are lucky if we did our job and created an adult that is ready to function in society at large, hold down a job, and maybe even move on to higher education (if we’re lucky)!
 

Still not hearing solutions, Stanton!

This is where it gets a little more difficult. The key to making financial education for kids easy is catching them when they are young. My friend had a kid that was a little older, so she has to come up with other solutions. Here are a few. Some are going to be more difficult than others, and some are going to seem too far outside of your parenting philosophy. Hey! I’ve never claimed to have the only answers. If you have something that works better, or even something different that also works, feel free to chime-in in the comments.

Don’t give them a choice!  Remember that you are the parent, and should be able to set the rules for how money is handled in your house. If teaching your children to save for long-term goals is important to you, then your children are going to save for the long-term, because they won’t know that there is another option. If tithing is important, then your child will tithe because that is all they will know. If they start fighting you, trying to avoid your priorities, or making your life difficult, take whatever money they might have and put it in a savings account for when they are mature enough to follow the rules.

Start as early as possible!  The earlier you start your children down the path of learning financial responsibility, the harder it will be to break the habits you instill in them.

Reinforcement, reinforcement, reinforcement!  Both positive and negative reinforcement has their places here. Let’s say you do the three piggy-bank thing that is the current flavor of the month when it comes to teaching young people about money. When your child puts money in each bank accordingly, without being prompted, make a big deal out of it! Tell them how proud you are that they are becoming more mature and responsible. Kids have a need to please adults. On the flip side, when they do something inappropriate with their money, there has to be a consequence. If your child raids their “bicycle” savings account to buy a Selena Gomez poster, you need to temporarily take away their ability to access that money and maybe even the poster until they have replaced the money.

Communicate openly and honestly!  Talk with your children about the importance of learning to manage their finances. Make sure you keep the conversation at a level that their individual development can handle, but make sure you communicate. Be honest with them about difficulties you might have had or setbacks you might have had in the past and your desire to make sure they don’t repeat your mistakes. Also communicate the feelings you have had when you have experienced success with money issues. Finally, talk to your children about the way they might meet financial challenges, and work your way through the hypothetical. You want to make your children comfortable about talking with you about financial issues so they will still feel comfortable when they are older and might need your advice.

Feed their curiosity, even if it isn’t as deep as you want it to be!  Expose your children to as many possible views on money management as you feel comfortable exposing them to. Find blogs like this one, or others that you might read, and read them with your children. Make it a thing. For example, I post on Fridays. I do this so people have a whole weekend to peruse my posts and not interfere with their weekday schedule. Maybe you and your children can read and discuss my latest post on Saturday, over breakfast. You spend some great quality time with your kid, they get to learn something, and you both have something in common to discuss. Warning! Sometimes the language here gets a little saucy. I try to keep it PG-13, but every once in a while it gets worse. I try to let you know when that is going to happen ahead of time, sometimes what I consider PG-13 and what you might consider could be different.

While we’re at it, find a book by someone who can teach your kids about finance and have a “book club” within your family.  Find times to read and discuss the book.  If I might make a suggestion as to which book…,

  

Whatever you do, don’t give in to the frustration that comes with trying to teach some kids anything!  I get it.  It’s frustrating, but once they get it, everything is magical!  Teach them well (sounds like an intro to a song!)  Enjoy!

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A lot of stuff going on in the news lately. Some of it has been baked into the pie for years. For example, BofA, not a favorite of mine for several reasons, has decided to add a $5.00 monthly fee for checking accounts with debit card usage. I talked about the probability of this happening almost three years ago to the date, HERE. In a nutshell, Walmart and other large companies were being charged $.44 for the ability to accept card-based payment. This ability benefitted them greatly, but they didn’t like the fee that they had to pay the banks for these benefits. They lobbied a liberal Congress and appealed to the growing hatred of all things banking to make this fee go away. Elizabeth Warren, Senate candidate and populist firebrand also believed that these fees were wrong, and targeted them in her Consumer “Protection” …thing that has less to do with protection of consumers and more to do with screwing business. But this post isn’t about that—totally.

The BofA thing is enough to piss people off all by itself. Maybe enough for some youthful ne’er-do-well to say, “Screw this, I’m gonna make my voice heard and attack the people responsible!” I might be with you on that. I might take a trip with you to Illinois to pound on the office door of Mr. Durbin. I would easily back your play to go to your local Senator and give them a piece of your mind. Hell, I might go to Harvard or wherever Mz. Warren is housing her Senatorial bid from. Any and all of these would be wise choices, as would (obviously) protesting against Walmart, 7-11, and BofA. But you know where it doesn’t make sense to protest? Wall St. Any of the other number of places holding “Occupy _____” protests (every time I see the word “occupy”, I always think of a port-a-potty or other public restroom, but that’s beside the point). The young people are definitely hitting a target, but the target they are hitting isn’t the one that caused the damage.

This is a large-scale version of hitting the wrong target, but people do it in their everyday lives as well. It’s the fat guy who decides to cut out eating green food. Easy target, nobody likes green food, but it won’t help him (as a side note, I eat a decent salad every weekday, and twice on Tuesdays). It’s the young person with the femur sticking through their nose getting pissed off that there aren’t enough good jobs for young people. These are all funny enough, but sometimes it isn’t funny or even that out of the ordinary.

I know people who do the “extreme couponing” thing, and they save money on items they will either genuinely use or are planning on donating for a good cause. I got no problem with them, as long as I’m not sitting behind them in line at the grocery store. If you are doing something healthy and beneficial for you and your family, bless you for it. But some people go overboard. On the show, “Extreme Couponing” there are people who really have a sickness. Many of the people on this show will talk about how they are doing it for financial reasons. Many will talk about past events where they were deep in debt or facing foreclosure or bankruptcy. They found that they were able to significantly reduce their grocery bills. Their stories are no different than many others who aren’t on TV. So what do these people do next? Of course, they join collectives, buy tons of newspapers for the circular inserts, some even resort to dumpster diving or worse, outright theft. They are able to get a lot of groceries for a little money, but at what cost? How much time is spent saving cents instead of making sense?

Whenever you face a problem where you need to find a target to hit, look critically at it.

1. Will hitting this target solve a problem, or will it make me feel better about myself? Both are valid goals. Sometimes we need to take the “W” because we haven’t had one in a while. You need to be honest with yourself if this is the case. Eventually, if you keep aiming for the wrong targets, regardless of whether or not you hit them, your problems start becoming bigger than they were.

2. Is the target that I need to hit within reach? Sometimes problems are too big and too far away to deal with directly. Sometimes, you have to attack them in a progression from other directions.

3. Am I even able to see the target I need to hit? We all do it. Nobody is an expert on all things. We see a problem and we attack it like we are supposed to, but what if we can’t even see a problem? Every once in a while, you need to step back and decide if you are missing a problem that you shouldn’t. Maybe this means having a deep conversation with a loved one. Maybe it means going into a temporary isolation from people who tell you how great you are all the time. I mean, really! If you were as awesome as everybody says you are, you wouldn’t need to read F4Y! And you DO need to read F4Y.

4. Why am I aiming for THIS target now? Again, we all do it. We know something is wrong, but we don’t want to deal with that PARTICULAR issue right now. So we find something else that IS a problem that needs to be dealt with. Take caution here, because eventually you will run out of other problems to target.

Sometimes just hitting any target takes a lot of talent and skill.  When you hit those targets, you deserve for someone to tell you, “Nice shot, man”.  I prefer to hear it from Filter.  Enjoy!

 

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In every parent‘s life there comes a time when they need to sit their child down and have a serious talk about life. Some parents make a big deal and production about it, buying visual aids and showing their kids the tools that they use. Other parents pretend that this isn’t happening, or at least that it isn’t happening yet, all the time realizing that they are risking their children having to learn the facts from people who don’t have their best interests in mind, or even worse, from the streets.

Of course the above holds true for many sensitive and difficult subjects, but only one can truly rise to the level of being called “THE TALK”. We’re talking about finances here.

Earlier, at the beginning of summer, we discussed some choices about how to handle the idea of allowances for kids. You can read about them HERE, HERE, or even HERE. Some parents thought that this was the end of the story, and not something way closer to the beginning. The truth is, your kids are going to need to learn how best to handle serious issues like the smart use of credit, planning for the future, making and sticking to budgets, and even how to deal with life when your plans blow up on you. This is when it can get a little messy for parents and their children alike. Hopefully I can give you a few tips to make this less difficult on everyone.

You really can be too young: Many of the bloggers out there and some of the “gurus” will tell you that your kids are never too young to learn about these issues. Well, that’s not exactly true. I’m all for teaching kids about money issues in ways that are age and developmentally appropriate. I could try to talk to my 6-year-old nephew about the finer points of an interest-only mortgage, but I’m sure he’s more interested in seeing what his nostrils look like when you shine a flashlight through them (That may not be strictly true, but I always get a kick from the flashlight thing). You should stick to basics that you can deliver in small enough chunks that they can understand, but with just enough detail that you don’t lose them. If you just can’t help yourself and you absolutely need to talk about topics that are probably over their head, the best way is by teasing the more advanced topics in the course of the more basic (and appropriate) lessons.

A little mystery is better than total disclosure: Remember the first time you heard, saw, heard about, learned, or discovered that your parents had sex (that is if your parents have had sex, unlike my parents, who never have and never will, thankyouverymuch)? Yeah, you don’t want to put your kids through that when it comes to money issues. Some parents might struggle to keep their finances healthy. Having kids, in and of itself, is an expensive proposition, but by no means the only reason parents might not want to divulge too much. Maybe they made some bad choices, maybe life got a little hairy, but the kidlets don’t need all the details. If you want to purge your soul, see your clergy, a psychologist, a bartender, or whoever, but don’t burden your kids with too much detail into your own finances.

Try to let your kids guide the direction of the conversation: Just like the other “talk”, one area where parents frequently screw up is by misunderstanding the questions that their children may have. A kid might ask where babies come from, and a parent will start the conversation with, “Well, sometimes Daddies make special drinks for Mommies that help Mommies get sleepy…,” when all the kid wants to hear is “from the hospital”. No kid wants to hear the first story. No adult wants to hear that (with the exception of some members of the local police, but that is another story altogether.) Kids have an amazing ability to communicate to adults what they are ready to grasp. Sadly, adults generally suck at interpreting what the kids are saying. My best advice here is to ask a lot of questions about what kids are curious about or need help understanding. Give them a broad, basic answer, followed by some more questioning to see if that helps to answer their questions, and then a more detailed response. Lather, rinse, repeat as necessary.

Showing is better than telling: Kids get lectured at enough at school. I personally make sure of that. They learn very early on how to tune out when they feel another lecture coming on. Try to avoid adding to the lectures they will have to sit through by developing activities that will help them see what happens. There are games on the internet that can be used in a pinch, but these are generic, and might not be the best fit for your child. Of course, this will mean that you have to be engaged with your child, but most parents who are planning on teaching them about personal finance are probably already pretty well engaged already.

And finally,

Be prepared: Before you get to the point where you need to have “the talk”, be prepared with the accurate information and some ideas about how you would answer questions. This means you might need to invest a little time and a little money on reading materials. You’re reading Finance For Youth: The Blog
already, so that is a good start! Another place where you will get good information that is definitely not over someone’s head is by reading my book, Finance For Youth: The Book, available through www.finance4youth.com. Am I saying that my stuff is the only stuff you should read? Absolutely! However, I know that would be incredibly unlikely, so I suggest that you supplement F4Y products with products from your second favorite personal finance person.

Having “the talk” is going to be strange. There is no way around it, but it doesn’t have to be so uncomfortable that you postpone it until it is too late. Remember, postponing leads to your kids needing your money long after they should be on the way to creating their own lives, and nobody wants that.  Also remember that if you get stuck having to give the talk, and it gets awkward, you can always just tell your spouse that your kid ate the pie!

 

 

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