Talk Money with Kids Early On to Properly Prepare Them for the Future

by: Certified Financial Planner Julie Murphy Casserly

“Money doesn’t grow on trees.” This saying may seem obvious, although today’s youth seem to think the opposite. Who can blame them though – unlike the baby boomers the new generation of youth have grown up in a time of economic prosperity and are used to being coddled by their parents. In 2011 alone, over 85 percent of college graduates will be moving back home (Huffington Post).


Recently, the recent economic situation has shown us that anything can happen at any given moment and we (and our children) need to be prepared. Though it may not be possible to teach a pre-schooler the complexities behind 401Ks and credit cards, it is possible to start teaching children the importance of money at an early age. Chicago Healers Practitioner Julie Murphy Casserly (CLU, ChFC, CFP) stresses the importance of instilling good money habits in children as early as possible and offers easy conversation topics to address the issue at every age.

· Pre-School

Yes, money patterns begin to formulate during the pre-school years. You can start talking to your child about money when they are 2 or 3 by explaining that everything costs money – from the food they eat, the clothes they wear, to the house they live in. These talks need to go beyond the necessities too. Explain that new toys, accessories or video games are things your family can live without. Introduce new toys to them a few at a time, rather than showering them with an over-abundance of playthings. This will help them get used to the fact that they don’t need a heap of toys to be happy.

· School-Aged

By the time your child is 6 or 7 years old you can start teaching them about prioritizing their money. For example, when you are at the toy store, instead of letting them pick anything off the shelf, try giving your child five dollars and letting them choose something that fits within this price tag. For parents who buy their children anything and everything, the child will expect this treatment later on in life, giving them a sense of entitlement. Ask yourself, is this the reality I want for my child 15 years from now?

This is also the point in time to show your child that money is the result of hard work. Work out a plan with a family friend or neighbor where your child will do housework or yard work for $5-$10 cash. Then give them the power to choose how they want to spend or save their hard-earned money.

· High School

At this time, it is critical to create a financial collaboration with your son or daughter. Encourage them to get a part-time job to help pay for their car insurance, their gas or portions of the monthly car payment. Children should be held accountable for sharing some of these costs with their parents. Once they get that paycheck, establish guidelines on how it should be dispersed — 1/3 goes towards that car payment, 1/3 goes towards their future college fund and 1/3 can be spent on whatever they choose.

During this age, it’s also important to highlight the importance of living a quality of life, rather than the quality of things that you own. Help your children understand that material things like a brand new car when they turn 16, are often a source of immediate happiness, but sooner or later, this happiness fades and they will be left searching for deeper self-fulfillment.

· College

Your child is an adult now. Have an adult conversation with them about their finances and make sure they understand how credit works. Tell them about your experiences with credit card use – the good, bad and the ugly. Once kids are on their own, temptations will always arise and children in this age bracket will more than likely consider opening a credit card to fund some of these temptations. Explain how credit cards can bring a false sense of financial reality. They make us less conscious of where our money is flowing and how much we are spending. Talk about how the constant struggle to earn cash to pay off debt can take a physical and emotional toll.
 
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Seven Days of Spring Cleaning and Organizing

by Audrey Cupo, Professional Organizer

After a long, cold winter, we finally get to look forward to Spring. This is the time of year for new beginnings: fresh flowers, green grass, the sounds of birds singing. Ahh!

This is a great time to prepare your home for the new season. I suggest that starting today and for the next seven days, making a plan to do a Spring organizing and/or Spring cleaning project each day. Here's a sample agenda to follow:

DAY 1 ~ Begin outside clean up, including getting rid of any leftover winter brush, snipping dead branches from plants to get them ready for the warmer weather ahead and sweeping the walkway and driveway.

DAY 2 ~ Put away any winter clothing for the season that is still in your closets, and bring out your spring and summer wardrobes. Iron anything that requires it.

DAY 3 ~ Begin sorting through the outdoor toys (including sports equipment, skate boards, bicycle, etc.) from last year and determine what your children have outgrown and will no longer be using. Then, create a list of a few items to supplement to provide them with items that are more age appropriate for this year.

DAY 4 ~ Clean areas in your house that get neglected most of the year, such as the tops of your high cabinets, under the fridge and the bookcase shelves (empty, dust, and return all books again).

DAY 5 ~ Begin to plan your family’s summer vacation. By reviewing your budget and discussing ideas with the family, you will be able to formulate a vacation plan so you will be ready when the end of summer comes around. (It arrives before you know it!)

DAY 6 ~ Empty the fridge and freezer and clean them out before returning your perishables back inside. If you have a spare in your garage or elsewhere, don’t forget to clean it out also.

DAY 7 ~ Make arrangements for your summer help, including the lawn mowing service, grass, tree and plant service. Check the outdoor furniture that was left out over the winter to see if it needs any repair (mine is made of wrought iron and might need to be repainted). It’s also a good time of year to make an appointment to have the car detailed.

By the end of these 7 days, I guarantee you will feel great knowing a lot was completed you can now enjoy the Spring!

About Audrey Cupo:

Audrey Cupo is a full-time Professional Organizer and sole proprietor of A BETTER SPACE based in Bucks County, PA. She specializes in residential organizing and focuses her business on helping busy moms and women entrepreneurs get organized with her in-home services and her U Can Do It product line. To sign up for her free monthly newsletter "Organizing News You Can Use" or get a free "Room-By-Room Organizing Checklist", go to http://www.4abetterspace.com/.