The Money Blog: Adding Even More Sense for Your Cents!

Teaching Kids About Money? Think Clueless

Fri, 03 Sep 2010 16:47:14 GMT

And, no, I don't mean the Alicia Silverstone movie! There are some great resources when it comes to kids and money (beyond the money-and-kids.com site. One of my favorites is Janet Bodnar's columns which are published in Kiplinger's Personal Finance magazine as well as on their website. With 20 years' of writing about kids and money under her belt, she has a wonderful background in cutting to the chase. I'm betting having three grown kids helps, too. I ran across this article from late 2009 recently and thought it deserved to be highlighted here. The info is nearly timeless and a fitting way to frame teaching children about money - and teens too. Here are a few highlights.

Kids don't know how to earn money. They need help thinking of business ideas, marketing and pricing. Check out this guide on kid business ideas to help your child find one that works for them.
Kids don't know how to manage their money. Not spend it all - now? Why wait for something to go on sale?
Kids don't know how to save part of what they earn or get as gifts.
Kids don't know about credit and plastic. This is really more of a teen money management issue. The key is to teach teens about credit and credit cards before they get one and don't know what to do with it. The recent changes in the credit card laws certainly helps with this - but it may just delay the issue instead of fixing it. Only actual credit education can do that.

These really are just the highlights. Be sure to read the whole article for even more information including some great resource links. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Is It Time for Your Teen To Start Investing?

Thu, 02 Sep 2010 11:14:16 GMT

While many parents are worried about teaching their teens basic money management, there is also an interest in getting teens to understand investing and how it can benefit them over time. In that vein, Steve Rosen's recent article in the Kansas City Star highlighted an option for teens saving for retirement. After you stop laughing but before you stop reading, it's worth considering what the article has to say. The emphasis is on how older teens (and young twentysomethings) can use target-date mutual funds to put their savings for retirement (no laughing!) on autopilot at a very low cost. Target date funds that mature in 2055 can be a great option. It starts out being invested heavily in stocks migrating to less stocks over time. Think your teen is not at all interested in retirement? You are probably right. But, target investment funds hold all kinds of lessons that can be worth talking to your teen about. Here are some ideas.

Starting young allows the magic of compounding to work. It also allows early mistakes to be made up for.
Investment strategies need to change over time - no matter your age. It can be due to getting older or a change in your goals.
Fees matter. If you pay 1 every year out of your account, you have to make much more than than just get those fees back. The steeper the fee, the better the fund performance has to be to hold your investment even - let alone grow.
No investment fits everyone. That may mean that saving for retirement makes your teen yawn or just flat out fall asleep. It could mean that they are not ready to commit to any type of investment - a savings account at the local bank (or their own school bank) is just fine, thank you.

And don't forget the last important point: most kids and teens don't get it the first time around. Talking to them now about retirement and savings in general can go miles towards them making better decisions as they get older. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Does Your Child Have a Credit Report?

Wed, 01 Sep 2010 03:56:12 GMT

Twice within the last month, I've seen articles indicating that parents should monitor their kids' credit reports. To be fair, I've seen suggestions of this before but usually from a business trying to sell me a service. The value of these services ranked right up (or down) there with the value of Gerber life insurance. Not a good deal at all. But the articles I've seen recently, including this one at WalletPop, are more serious and not trying to sell anything. The issue is that fraudsters have found a new and creative way to commit identity theft. The targets: dead people and kids. Nice. This AP story provides the details but the general idea is that criminals are using computers to find dormant social security numbers - including those issued to kids who aren't yet using them - and then selling them to help people get credit and run up huge debts. It starts small as the person buying the social security number establishes a solid score - and then blows up. Parents can protect their kids by monitoring their credit scores the same way they monitor their own. (You ARE monitoring your credit, right?) Go to annualcreditreport.com, the only federally sponsored free annual credit report Web site, as a start. In addition, check out the tips in this recent article from the Chicago Tribune. I'm on my way to check my kids' scores now...what about you? Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Help for the Family Budget: Expenses You Don't Need

Tue, 31 Aug 2010 10:42:45 GMT

As you look at your family budget and personal budgeting categories, it pays to keep in mind expenses that you just don't need. You may have even heard of many of them before. That doesn't mean that everyone is doing a great job of avoiding them. This article from Kiplingers on these expenses is a nice reminder. Here are my top 5 favorites (out of their 10).

Overdraft fees. There are at least 2 ways to fix this. If you are not good at tracking your balance and tend to run it on the low side, then sign up for automatic transfers between a savings account and your checking account. They have to be at the same bank but it's usually free - and beats that $25 or so charge for an overdraft (or 3).
ATM fees. If you are going to be hitting the ATM frequently, how many ATMs a bank has that you can use free of charge should be one of the things you consider when you choose a bank. That doesn't mean that you have to go with a mega-bank. You can get the same ATM network options through smaller banks that are members of a larger network. Just be sure it matches where you will be when you need cash.
Coin counting machine fees. This is a great lesson for kids in (almost) hidden charges. Kids can usually spot these machines across the store and may even want to bring their piggy bank in to get dollars for their coins. But the cost can be high - like 10 high. Teaching kids about money can also mean teaching them how to hold on to it and this is an easy example of that.
Pet care. People love their pets. There are plenty of businesses starting and making great money because of it. Doggy day care, pooper scoopers...you name it. These services can charge quite a bit. Consider instead switching off duties with neighbors - or even giving the job to a kid that wants to make money.
Water. You are driving through McDonald's and want a water. You can get it in a cup for free or pay at least $1 to get the bottle. Lots of people opt for the bottle. And not just at the drive-thru. Plenty of people are opting to drink bottled water at home and paying the price. Just say no - and teach your kids to do the same.

These are also great tips to use when teaching your teens money skills. Being able to understand expenses and fees that they can experience in daily life is critical to their financial success. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Get Ready for The Money Messenger's Fall Chore and Allowance Issue

Mon, 30 Aug 2010 11:09:03 GMT

The next issue of The Money Messenger (the money-and-kids.com monthly newsletter) is all about fall chores and allowances. Here is a sneak peek at what you will get:

Feature article on Fall Chore Programs for Kids and Teens
Feature article on Allowance Updates for the New School Year
Answering a reader's question on keeping track (and staying on top) of chores for her 3 kids
Four great new resources for chores and allowances...including online chore tracking and a great book resources on allowances from a very trusted source in financial education
A preview of what's to come in October...aren't you curious?

If you aren't subscribing yet, what are you waiting for? Click on over here and get set up in an instant. Be sure to let your friends and other parents know too! Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

The Best Defense When It Comes to Smart Spending

Mon, 30 Aug 2010 04:01:13 GMT

Sometimes the best defense is a good offense. It's an old sports adage (not that I'm a huge sports fan), but it can also apply to money skills that you are teaching your kids. What does a good offense look like when it comes to money? First, it starts with a solid budget. You can use your family budget as a starting point or try starting one specific to your kids. This is especially a great thing to do if you are looking to teach your teen money management. A budget will help you get a handle on what comes in and what goes out - and where it goes. This WalletPop article does a great job of explaining this and also has some great tips on how to get started. Second, try to get the best prices on items you buy. That may mean clipping coupons and shopping sales. You might start buying items off of Craigslist or ebay. The thing to keep in mind that all the bargain shopping in the world won't help you if you don't start with a budget - that's why it's the first step. Third, keep learning about money. The more you know, the better you will be able to handle your money. This is especially true for kids and teens and why it is important for them to learn key money lessons while they have time to make mistakes at home. But learning isn't just for kids. There are plenty of adults who don't understand all the terms of their credit cards or their mortgages (yes, still even after the mess we've seen). If you and your kids can focus on these three main lessons, you will be miles ahead in money defense and offense - not to mention in your financial education and security. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Kids and Money: The Price Tag of Kids' Sports

Fri, 27 Aug 2010 10:42:41 GMT

I've already bought one new pair of soccer cleats and shin guards and am getting ready for Round 2. We'll likely need new basketball shoes, shorts and some sort of football equipment too. Did I forget the goalie gloves? I'm not sure I put enough in the kids' sports budgeting category this month for this! Does this sound familiar? You may have just gotten over the sticker shock of school supplies to run head first into the cost of sports. Some of your costs may be on the higher end like the parents whose kids got to the Little League World Series even though such expenses are not just isolated to baseball. Many parents pay to travel to gymnastic and wrestling meets, soccer tournaments and dance competitions. In those cases, your sports budget starts to include hotels, meals out and maybe even less income for missed work (unless you are using vacation time). It can be a definite hit on the family budget. Most parents I know say it's worth it. These are priceless experiences whether their kids turn into sports stars or not. Still, it makes sense to look at what you are trying to do as a family including volunteering as a family or having your kids trying their hand at earning money or just taking it easy for a change. Sure, many of those decisions aren't about the money. Just like many other decisions in life aren't, but it pays to keep it all in perspective...as you set off to find that perfect pair of cleats! Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Leaving a Summer Teen Job the Right Way

Thu, 26 Aug 2010 02:46:56 GMT

Whether your teen had a summer job or an internship, they need to leave that job on good terms. In many ways, this is using simple common sense. Still, for teens that haven't held a job in the past leaving a job may foreign territory. These tips from US News and World Report's Alison Green can be just what they need. Here is a quick summary to get your teen started.

Say thank you for the opportunities that were given. Everyone likes to be acknowledged - yes, everyone, including the boss.
Get feedback on what could have been done better and what was done well. It's good information for future jobs and even for school.
Talk about future plans so people can keep you in mind for opportunities both at the place worked as well as other places. Plus, it can help when your teen needs recommendations or career advice.
Update (or start) a resume. Many teens don't have one yet, but after a first job or internship, teens can start building a solid resume for future employers. Updating it now when all they learned and did is still fresh in their minds is important.
Reflect on learnings from the job. This goes hand-in-hand with getting outside feedback. You can help your teen reflect by having them think about what they liked (work hours, air conditioning, their boss) and what they didn't (filing, the culture, being the new hire).
Stay in touch by sending a short e-mail or making a quick call every month or two. Having your teen keep their former co-workers updated and staying in touch can pay dividends down the road. It's an informal way of networking that will really set them apart from most other interns.

A big key in all of these tips is helping your teen understand that you just don't walk out the door on the last day never to look back. It's a lesson that will serve them throughout all their future jobs. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Talking Money with Kids and Teens

Wed, 25 Aug 2010 02:09:43 GMT

There are plenty of surveys being done on whether parents are talking to their kids about money including one by Schwab as well as one by American Express. This last one points out some key gaps in terms of how the conversation is going. Among other things, it shows that parents think they are having more talks than the teens remember having. While that is a pretty standard gap to occur in the teenage years - about any topic to be honest - it has consequences to everyone's financial future. Similarly, the majority of parents (80) and kids (70) think that a key way that kids learn how to manage money is to have a budget. But only 40 of them actually have a budget to work with. Hmmmm... That's where having a Money Night Talk scheduled can help. And, yes, it's exactly what it sounds like. It is a night where parents and teens sit down to talk about the money skills that are most important to them. The first National Money Night Talk is scheduled for September 16th, but you could have one when it works for you. There is no TV special, teleseminar or webcast to worry about. There are, however, some great resources to get your discussion started at moneynighttalk.com with tips for how to talk to middle school, high school and college-age kids in separate sections. Be sure to scroll down past the video clip to get the downloadable PDF or to see the tips on the screen. Fair warning - American Express is highly involved in this which is fine. I am a little bugged, though, at the ad placement on the front page which advertises credit cards for teens. The suggestion is that these are part of teen money management skill development - and maybe even part of your money night talk. There's enough good stuff here for me to get past that - and it might not bother you at all (just wanted to let you know what to expect). Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Family and Teen Budgeting: A New Way to Budget?

Tue, 24 Aug 2010 02:33:10 GMT

Does your family budget get updated as often as it should? If you are like most people, doing it or keeping personal budgeting categories up to date is one of the last things on the list. That's where a new approach from Julia Scott via WalletPop.com can come in handy. This 15-minute budget approach using a money pot is explained in this short video clip. What a I really like about this approach is that it separates your fixed expenses from ones that are going to vary each month. That provides a great basis for knowing which expenses you really can influence immediately and reduce as you are looking at your budget. Plus, it also gives you a quick glance at the fixed expenses that you could work to reduce over a longer term, such as refinancing your mortgage or trading out of an expensive car lease. This quick budgeting approach can also be a great way to get your teen to do their own budget as part of teaching them teen money management skills. It's not complicated and can be done so fast that even their eyes won't glaze over. There is definitely something to be said for any approach that can accomplish that! Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Teen Money Management Tools

Mon, 23 Aug 2010 00:33:33 GMT

Are you looking for a great resource for teen money management (besides money-and-kids.com of course)? Weeding through all the options can be time-consuming and frustrating. That's why I love it when I find resources that really deliver (and I'm pretty picky about what I'll spend money on). Im also pretty particular about who I recommend when it comes to teaching kids and teens about money. There are so many people selling so many products and services, its hard to weed out the good from the great. Patti Handy falls into the great category. She is the founder of Teens Cash Coach, and her passion is educating and empowering teens with money smarts so they wont struggle the way many adults are today. To that end, she has a number of great resources that are sure to help you as you work with your teen on money skills. Here are a few you might want to check out:

How to Ditch your Allowance and be Richer than your Parents is Pattis book is a must-read book for all teenagers and young adults ready to be empowered with the tools to make them money-smart, money-responsible, and money-independent.
The Prosperous Teen Home Study Course is a two volume DVD program that brings an amazing amount of money skills to you. With the ability to watch over and over, if needed, this invaluable information will teach your teens how to create financial independence and financial peace.
The National Association of Properous Teens membership gives you access to the amazing money lessons found in her popular DVD program, The Prosperous Teen. These lessons are delivered weekly, in a digital format, at a fraction of the cost of the DVD program. With the ability to watch over and over, if needed, this invaluable information will teach your teens how to create financial independence and financial peace. PDF downloads are also sent, so you may take notes and do the action items for added support. The course is 40 weeks, but allows you to cancel at anytime.

If you are struggling to figure out where to start with your teen's financial education - or if you need a new resource - Patti really has this stuff covered. She does such a thorough and quality job in all her products that you just can't go wrong checking them out. Of course, not every resource is right for everyone, but one of these options may be for you. (Please note that I am an affiliate of Patti's so I may receive compensation if you buy something from these referrals. However, I never recommend any product or service just to receive a commission. I highly believe in Patti's products or I wouldn't be passing them along to you.) Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Getting Kids to Save for Christmas

Fri, 20 Aug 2010 10:31:41 GMT

I'll admit it. I am struggling to save for Christmas buying in the middle of all the back-to-school expenses. In fact, I'm struggling to even think about winter holidays in the middle of a 90-degree day. It's coming, though...and as we all usually find ourselves saying "It will be here before you know it." What a lovely overused cliche. As we come upon the countdown of four months until Christmas, now can be a good time to look at your family budget and how much you are putting in your for holiday spending. Even if you don't have the $1,000 goal that this MoneyTalkNews article uses as its baseline, you and the kids can set some holiday savings goals and get started on them now. Many of the easiest ways to do this are to go back through your current spending categories and see what can be cut. This is a worthwhile exercise even if you did it at the beginning of the year. For example, you may have thought then that you couldn't live without your landline phone. Is that still the case? Have you really been going to the gym the way you promised yourself you would? Get the kids involved by asking them to come up with three things that could be cut down or eliminated. Challenge them to find stuff for a garage sale or to sell on EBay or Craigslist. Make it a contest to see who can come up with the best savings or earnings idea. And, don't forget to consider the Christmas savings clubs being offered by Sears and Toys R Us . Both offer matching incentives for saving (and then spending) with them - which are completely worth considering IF yo shop there. So...how much can YOU save? Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

How Kids Can Make Money on EBay

Thu, 19 Aug 2010 11:24:02 GMT

My kids want a computer. Given where they are in their education and some supplemental things we want to have them learn, this is becoming a necessity (I cringe as I write that). The kids don't really know that part, so they have come up with a plan to make their own money to buy the computer. Their grand plan? Sell a bunch of stuff on EBay and use that money. What they want to sell should net them a fair amount towards their goal. We are willing to match what they earn, and that total will buy a respectable computer. There are a couple of issues with their plan to be sure. The biggest one being that most of the stuff being sold is coming from one child, but that's a different post! This list from Raising CEO Kids on what you need to sell on EBay is a great starting point. The irony that you need a computer wasn't lost on me. With this list in hand, the kids have started going through things, researching prices on the web (using my computer) and getting ready to take the pics for the listings. We are still debating whether we should invest in some pricing guides for specific items that may have more value than what we know. These are collectible items - although not all of them have the same value. This is really the reverse of what we try to do in teaching kids about shopping, and it's been very interesting trying to teach them marketing skills. Have you or your kids sold items on EBay? What lessons did they learn in the process? Post your ideas and thoughts here. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Are You Teaching Your Kids Illegal Money Habits?

Wed, 18 Aug 2010 10:47:39 GMT

Geez...here you are trying to do your best to teach your kids about money and then you find out you could have some habits that are illegal. Think that sounds like someone else? That surely you don't have these bad habits? It's not as clear cut as it sounds as this article from Bankrate points out. Sure, some of these seem really obvious no-no's - like lying on a home loan application. But what about writing a check that you know will be covered by your overdraft protection? Or signing a check for someone else? Both of these are illegal not to mention just bad money habits. Most of what kids learn about how to handle money (or mismanage it as the case may be) comes from what they see their parents doing. So, while you are teaching your teen money management or opening that first savings account for your 8-year-old, be sure to keep these habits out of your lessons. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Comics, Cartoons and Teaching Kids About Money

Tue, 17 Aug 2010 11:13:36 GMT

It doesn't seem like that title makes any sense. How often do you hear about comics and financial education in one sentence? The Federal Reserve intends to change that. You can find 12 comics on a variety of money topics for kids at their site. You can order most of the comics (maximum of 35 copies) or view them online. The bulk order option is a great idea for schools and teachers while viewing online might work best for parents and families. (You will need Adobe Acrobat to read the files, but you can download it when you get ready to read the comics if you need to.) Here are just a few of the titles...

The Story of Money which explains the purposes of money in a modern economy as well as characteristics that items used as money have and the way the banking system creates money.
A Penny Saved which focuses on savings - why it's important and different types of savings instruments.
Great Minds Think...teaches the basic concepts of financial decision making in an informative, fun way including lessons on earning, spending, opportunity cost, budget basics and saving.

Finding new fun ways to teach kids about money can be challenging at times, but these comic books can really be a great find. They may not be the only resource you need but they will be a nice addition to your kids' financial library. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Garage Sale Tips: Pricing

Mon, 16 Aug 2010 15:05:56 GMT

When pricing items, think of how much YOU would pay for the item if you were to sell it. Don't have it be too much, but if its too low, you won't make

Financial Lessons for Kids

Mon, 16 Aug 2010 14:52:43 GMT

Sometimes it's hard enough to keep up with day-to-day parenting stuff. Then, you want to add other things to it - like teaching kids about money, and it can seem like there is just too much to get done. The key is to make teaching money skills part of what you are doing anyway. This may even be more effective because you are showing how things work in the real world of money - not just how it works in a Monopoly game. This post from Raising CEO Kids on financial lessons lists the top 10 ways to make financial lessons part of your parenting. You can check out the full list, but here are my top 5 favorites.

Compensate your kids for extra work or great efforts. This can be done outside of an allowance program or teen chore contract.
Don't pay them for stuff they should be doing as a member of the family. That means that not all items on a chore charts are tied to an allowance or payment.
Teachable moments are everywhere. From changing gas prices to back-to-school specials, you can use seemingly mundane things to raise their money awareness.
Along those same lines, taking kids to the grocery store can provide money lessons over and over again. Whether it's getting your younger kids to count money or having your teens work on their money management to design a menu and shop for it on a budget.
Teach them how to comparison shop. Whether you are on a regular kid shopping trip or teaching them about shopping online, knowing how to get the best deal is worth the investment.

Remember, you can take a look at the whole list here. What are your favorites? What are your biggest challenges in teaching kids about money? Let me know here, and I'll include YOUR question in a future blog post and newsletter article. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

It's National Garage Sale Day!

Fri, 13 Aug 2010 12:11:15 GMT

Ok, it's really not until tomorrow - but I figured at least one day's warning might be in order. National Garage Sale Day can be a perfect shopping option whether you are looking to participate as a seller or a shopper. This can be a great way to extend that family budget through extra cash or savings on some back to school stuff. If you are planning on having your own garage sale, you'll need to do some planning (even if it's the last minute kind!) to have a successful one.

Try one or more of these tips to put your best sale forward
Be sure to have highly visible signs placed in the right places to get customers on your doorstep (or in your garage)
Price your items to sell so you can not only generate cash but also clear out that stuff you've been anxious to get rid of

If you are a shopper, remember that garage sale prices are often only the beginning. This can be a great (and easy) way to practice those haggling skills you'll need when you are helping your teen shop for his first car. Check out these useful haggling phrases to get prepared. And, don't be too quick to pass over what may seem like a minor deal at best. Greg Estes bought a bike recently at a yard sale for a mere $5...and it turns out to have een built especially for Floyd Landis who won the Tour de France in 2007 (and then subsequently lost it). Garage sales are also a great way to teach kids about money that is different than the normal kid shopping experience. They can see first hand great merchandise for fractions of the original price - both for how they can get bargains and how they can make money with their own garage sale. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Are You Really Saving Money?

Thu, 12 Aug 2010 13:23:06 GMT

When it comes to saving money, most families have their favorite ways to save. It can be shopping at warehouse clubs (like Sam's Club or Costco)or using coupons. Maybe it's buying used clothes from a local resale shop or getting furniture off of Craigslist. A recent WalletPop article on what people do to save money was very interesting. To start off with, the title was "Stupid Things People Do to Save Money." That certainly got my attention. I expected to see a list of crazy things - like camping out all night before Black Friday. Nope. These are 9 things that I know happen all the time by well-meaning families everywhere. How do I know that? They are really common, and my family does several of them. Here are what I think are the top five most likely to affect you and your family budget.

Have a warehouse club membership
Using coupons
Buy one, get one (BOGO) offers
Taking advantage of "free shipping" offers (that usually require a minimum purchase)...hellooooo, Amazon - my personal shopping nemesis!
Buying throwaway items

In all of these cases, the argument is that you are more likely to spend more than you would have otherwise. I can definitely see it happening even if it's not quite as bad as the WalletPop author would make you think. What about you? Do you see yourself in these habits? Are you teaching your kids money habits that help them use these money savers to their advantage? Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Lemonade Stands vs. the Health Department

Wed, 11 Aug 2010 12:51:20 GMT

Have you heard the recent story of the Portland, Oregon Health Department shutting down kids' lemonade stands because they did't have a temporary restaurant license? As off the wall as it sounds, it is true. A temporary restaurant license costs $120 - an amount that easily wipes out the profits of most lemonade stands. The story does point out some interesting things to keep in mind for kids in business - whether running a lemonade stand or otherwise.

Know the local regulations. Whether it's a health department code or a local business license, most kids businesses are not necessarily exempt. They also may not be at much risk, but it can pay to know the rules.
Pick the right venue. Interestingly, the Last Thursday art fair seems like the perfect place to set up a lemonade stand. It has all the earmarks of a good lemonade stand location - except that made it more noticeable to the local officials. That can often be the case in business: visibility can draw customers as well as others who are not on your side.
Don't assume common sense will win. There's a fair amount of agreement that the health officials went too far (who have to stand their ground as well as back up their rules). I'm not sure that many parents would have worried about the license because the lemonade stand being run by kids is such a tradition. Everyone loves them, right? It would be crazy to shut down a cute little girl's lemonade stand...right?

This story can be a great way to teach kids about how there are rules and regulations for nearly all businesses. It shouldn't be something that scares them or makes them shy away from doing it. Rather, it's an easy way to show how even kids making money can require some research and planning. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Kids Making Money Their Way

Tue, 10 Aug 2010 12:25:53 GMT

I find kid CEOs inspiring in so many ways. And, I really enjoy reading about what they have accomplished at their young ages. What are the things that really excite me about these kids? First, they generally have great ideas playing on common sense that they turn into unique business ventures. It can be easy to look at kid businesses and think "That's a simple idea - anyone can do that." Maybe. But did anyone else actually do it? Or did they put the same spin on it? There are millions made by adults who have had similar simple ideas. Second, these kid entrepreneurs took action. My kids have interesting ideas at least weekly - some of these ideas could even be business starters. Then the ideas go the way of the Silly Bandz, and it's off to the next great thing. Kid CEOs take action on their ideas instead of continuing to dream and create. Third, they learn as they go. Great ideas and action to back it up are awesome first steps. Listening to your customers, learning the business basics and correcting as you go are things every entrepreneur - heck, everyone in general - should do. Waiting for everything to be perfect may mean that you never get to step 2. Knowing that learning and correcting course goes along with it makes taking action a bit less overwhelming. For great inspiring stories, be sure to check out these CEO Kids profiles. Share the profiles with your kids and see what great ideas they can come up with (or get a head start here). Then be sure to keep them going on steps 2 and 3 by helping them draft a business plan. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

August's Teen Money Management Issue is Ready!

Mon, 09 Aug 2010 12:01:39 GMT

August's The Money Messenger (the money-and-kids.com monthly newsletter) is hot off the presses. It is all about teen money management and how that can tie into back-to-school spending. Here is a sneak peek at what you will get:

Feature article on Teen Money Management: The Back-to-School Budget Dance
Feature article on Financial Planning for Teenagers
Answering a reader's question on whether his 15-year-old son is ready for a back-to-school clothing allowance
Four great new resources for teen money management and back-to-school information...including where to get deals on school supplies, back-to-school computer reviews and a complete list of state sales tax holidays
A preview of what's to come in September...getting new schedules in place for allowances, chores and even the family budget that are easy on everyone

If you aren't subscribing yet, what are you waiting for? Click on over here and get set up in an instant. You'll get all the back issues at the same time...including this one on teen money management. Be sure to let your friends and other parents know too! Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Guerilla Marketing for Kids Making Money

Fri, 06 Aug 2010 11:04:22 GMT

If you said "guerilla marketing" to your kids, most of them would think it is about commercials with apes. Those might be pretty funny, but they wouldn't help your child make money. Guerrilla marketing on the other hand certainly can. What is guerilla marketing? Simply put, it's marketing that relies on creativity, time and energy more than it relies on money. This Wikipedia entry goes into much more detail but that's the general idea. By being creative and potentially catching customers off-guard, your business or product gets more notice than it might otherwise. But how does this apply to kids making money? Can you use guerrilla marketing for that lemonade stand? The best answers I've seen to these questions were handled nicely by Steven Rosen of the Kansas City Star. His recent column on guerilla marketing for kids offers 6 suggestions on how guerilla marketing might work for any kids or teens looking to make money. These will work whether it is a fading summertime business or one that they will continue into the fall. Best of all, thinking of new advertising or marketing ideas can be fun. My favorite 2 that Mr. Rosen suggests are: using the words "free" or "guaranteed" and food is good. Why at they my favorites? Because they are easy for any kid to understand. The other ones are good - and in fact, may even up business more. But some of them may not work for every business or all ages. These two will. Even if you 12-year-old has a dog walking business, she can cover these two by offering a free walk after 10 regular-priced walks are purchased and offering free dog biscuits to new customers. Even if your kids don't currently have a business, talking to them about unique advertising ideas can be a great conversation. It can help them see how some advertising really makes them want to buy while others doesn't. It might even make them think about a business they would want to have in the future. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Teaching Kids the Value of Money

Thu, 05 Aug 2010 12:08:31 GMT

Teaching kids about money can be challenging at times. Whether you are trying to teach a young child how to count money or get some teen money management skills before they go off to college, there is one frustration that can come up again and again. Teaching them the actual value of money. No, I don't mean how much is a dollar actually worth or will it buy that candy bar. I mean the part of the education where they understand that money can be used to build things in their lives (like a good education or even a house in the future) and provide some security for their futures. This includes the parts about delaying gratification and planning for the future. Lessons which not even all adults have mastered. The best shot we parents have at making progress on any of this is to make sure we are doing what we can to get that money education started - no matter what the age. Things like:

Starting (or restarting or revising) an allowance program.
Revisiting that chore list or teen chore contract and making sure everyone is following through (parents, kids and teens alike)
Explaining buying decisions in the grocery store, discount retailer or department store. Keep in mind, too, that sometimes it is the decision not to buy that can have as much impact on young minds.
Living within your means and your family budget. It may go without saying, but here it is anyway: Your actions will speak louder than words. What you do day in and day out will teach them volumes.

What ideas do you have for teaching your kids the value of money? Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

A Twist on Charity Lemonade Stands

Wed, 04 Aug 2010 14:29:49 GMT

Kids have been selling lemonade from lemonade stands for generations. If you live on a primary street in a subdivision (as my daughter's friend does), your kids can make some real money. That money can be used for a variety of things, of course, including donating it to charity. The most well-known of these options is the one started by Alex Scott: Alex's Lemonade Stand which has raised more than $12 million through lemonade stands alone (the foundation has received additional donations of another $18 million for a total of $30 million). Other kids have their own ideas about lemonade stand fundraising and how they can use lemonade to make a difference. Eight-year-old Abby Enck is just one of those kids. This recent story talks about how Abby is using lemonade to raise money to buy crayons for the local children's hospital her brother often visits to treat his cerebral palsy. Her idea has a unique twist to it, though. Instead of just selling lemonade, Abby decided to sell lemonade kits. She turned the adults helping her into a lemonade kit sales for - and was able to buy nearly 900 boxes of crayons, heading for 1,000. The hospital and kids are grateful and excited about the new supplies. It's even more meaningful to everyone involved because it was all Abby's idea. She wanted to help and figured out how to do it even though she is only 8. What have your kids been inspired to do for others? Will telling them Abby's story help them think of new ideas? For even more inspiration, check out these stories. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Sales Tax Holidays and Money Education

Tue, 03 Aug 2010 14:18:36 GMT

In our area, the state sales tax holiday shopping can be almost as crazy as the Christmas shopping that happens after Thanksgiving. Seriously. Just like that frenzied shopping experience, I wonder if the savings are really worth it. I do know that it can be a great way to teach kids about money. Sales tax is one of those things than not make sense to kids. They don't understand why if the candy bar costs $0.99 their $1 bill isn't enough. Or why their $25 gift card will not have $5 left on it after they buy the $19.99 Spy Gear (can you tell this happened recently?). A sales tax holiday can be the perfect time to talk about this. Many stores don't stop their sales tax calculations; they just issue a discount for the taxes as they would if it were any other sale. That means that you can look at your receipt with your kids to see the impact of the holiday. Sure, this isn't much different than when you use the receipt to try to explain sales tax at other times. Still, seeing that you didn't have to pay the tax this time might be just the trigger they need to understand. Plus, don't forget to include your teen's money management plan in this as well. If you are venturing into letting them have more responsibility for their back-to-school budget, explaining or reminding them of the sales tax holiday can make their money for certain personal budgeting categories go a little farther. Want even more info on teens and back-to-school budgeting? Be sure to sign up for The Money Messenger (the money-and-kids.com monthly newsletter). If you are already a subscriber, be sure to let your friends and other parents know too! Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Get Ready for The Money Messenger's Teen Money Management Issue

Mon, 02 Aug 2010 10:41:58 GMT

The next issue of The Money Messenger (the money-and-kids.com monthly newsletter) is going to be focused on teen money management and how that can tie into back-to-school spending. Here is a sneak peek at what you will get:

Feature article on Teen Money Management: The Back-to-School Budget Dance
Feature article on Financial Planning for Teenagers
Answering a reader's question on whether his 15-year-old son is ready for a back-to-school clothing allowance
Four great new resources for teen money management and back-to-school information...including where to get deals on school supplies, back-to-school computer reviews and a complete list of state sales tax holidays
A preview of what's to come in September...getting new schedules in place for allowances, chores and even the family budget that are easy on everyone

How Kids Can Make Money:
Car Wash

Mon, 02 Aug 2010 03:41:12 GMT

Kids can advertise their services to their neighbors to begin building up their customers. They will have to make sure their prices are lower than average

Teen (and Kid!) Entrepreneur Resources

Fri, 30 Jul 2010 11:45:02 GMT

Young entrepreneurs - whether running their own lemonade stand to having a summer teen business - can use extra help and resources. That's where this great list from Raising CEO Kids comes in really handy. Check out these highlights...

Mind Your Own Business provides links to resources from the Small Business Administration and Junior Achievement. It's a great place for objective advice on getting started in your own business.
Young Entrepreneur is for the teen taking their interest in building their own business to the next level. It includes videos, forums and and Ask the Expert section.
Blogtrepreneur is just for kids and teens wanting to focus on blogging as their business. Think you can't make a business of blogging? Check out Kid Critic and 13-year-old Lane Sutton who is behind it. I've seen him on national TV - and he's certainly not letting his age stop him. Or if fashion is the thing, Tavi Gevinson is an inspiration.

There are 22 more great sites listed here to get your young entrepreneur's juices flowing. Not sure if your kid or teen is entrepreneur material? Have them take this quiz to find out. You can take it, too, to see if how they see themselves is the same as how you see them. Differences can make for great discussion - and even some preliminary teen business planning. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Realistic Financial Planning for Teenagers

Thu, 29 Jul 2010 13:58:46 GMT

If you have a teen, you know that they're not exactly the most frugal creatures on the planet. For some, this is just part of their money personality. For others, it could be that they haven't had to manage their money through a teen allowance. Add to that the peer pressure that can exist to have the best, latest and greatest stuff and the challenges with teaching teen money management. If you are getting started on a helping your teen with financial planning and teen money management, here are a couple of key areas to think about. You don't have to do them all at once. Consider teaching one new area each week or each month depending on your teen's money skills.

Saving and Investing. Why put this one first? It really is a skill that will pay dividends (no pun intended) into the future. It also applies to so many different financial areas. It will help them to build up an emergency fund. It can provide a way to buy big ticket items without having to go into debt. It also gives them money to invest, but get started on that savings habit first.
Managing Their Own Discretionary Spending. Once your teen has put some money into savings, the next order of business is to have them be responsible for some of their own expenses. Start with discretionary spending for wants like going to the movies, buying their own downloads,and paying for new gadgets. Then you can move into clothes. You may have read other advice suggesting that necessities should really be the first thing that teens learn to manage. The potential issue with that is that is hard to make mistakes and recover from them in this area. It is much less risky to make mistakes with discretionary spending. After they get the spending basics down here, they can start managing bigger and more important expenses.
Being Responsible for Necessities. After that, it's a matter of moving into more and more categories and even into their necessities. Of course, this can depend on how much money they earn or have to manage. If your teen is older and has a teen job, then they may be able to handle more responsibility. If they are younger, then what they can manage will be less. For example, some teens can manage their entire clothing budget (and cover all the needed clothes) as well as car insurance and gas money.

A realistic financial plan for a teenager contains all of these elements. This will give them some freedom with their money while also providing structure. Plus, it will build the framework for responsible money management as an adult. Let me know your thoughts here on how your are handling teen money management lessons. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Pay What You Want Cafe

Tue, 27 Jul 2010 16:49:50 GMT

Panera Bread is embarking on a new experiment with this Panera Cares Cafes. In this unique twist, customers "take what you need, leave your fair share." Customers who can't pay are asked to donate their time. It's an interesting combination of a standard restaurant and giving back. There are no rules and no one is forced into anything. It is all on the honor system, with the idea being that those who can will pay enough to make up for those who can't. Having just launched this first cafe in a suburb of St. Louis, it's not clear how successful it has been or even will be. The company isn't commenting on whether the store is making money (as a non-profit since it's under a different umbrella than the other stores) or not. Ideally, two more stores will launch in the next 6 months. As with most new things - especially when it comes to community service and charity giving - there are opinions on both sides. But what I really wonder is whether adults and kids looks at this differently. There are plenty of teens who are social entrepreneurs - making a profit AND making a difference at the same time. There are also lots of kids who are volunteers with their own personal missions that weren't worried about whether others thought it would work. What do you think? And what about your kids? Do you each have different ideas about whether this cafe idea will work? Are people more likely to visit this store - either to take advantage of not having to pay or to chip in more - than other restaurants? It can make for a great family money discussion. For other views, check out the USA Today article or the Huffington Post entry. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Money Habits of the Ultra Rich

Mon, 26 Jul 2010 06:35:53 GMT

I admit it - I love to read stories about how affluent households spend their money. It's not in that voyueristic, People magazine kind of way. Rather, I'm looking for tips on what we could be doing better. Sure, some of these folks inherited their fortunes and how they manage their family budget (if they have one) isn't helpful to the rest of us. But there are exceptions, and this recent Forbes article on the top 10 consumer trends of the ultra-wealthy shows that. Here are five of my favorite findings from the survey they reference.

The wealthy are spending less and shopping smarter. No matter what your price point, looking for quality and getting a good price on it is the right way to go.
Family is important. Family dinners have been making a comeback and plenty of research has shown that this can be one of the most important ways parents can connect with their kids - on all subjects.
They are better communicators. 64 of the survey respondents said they talk to their kids and spouses about money. It could be that the money talk blocks I talked about a couple of days ago in this blog ("How Much Do You Make?"> aren't as common in these households. Or maybe it's the result of those family dinners!
Cutting costs is stylish now. The conspicuous consumption lifestyle of several years ago has faded, and people are more proud of how they can spend less. That applies to all of us, I think, when we look at our personal budgeting categories and what can be cut out or lessened.
More shopping online. This trend applies to lots of people - it's just easier to comparison shop online. Not to mention that it can be easier to find a good deal from a retailer that has loads of inventory without having to keep a retail store running. Even kids can get into online shopping as part of their money education.

Do any of these ring a bell with you? Maybe all of them? Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Top 5 Mistakes Parents Make with Teens and Money

Fri, 23 Jul 2010 06:54:24 GMT

Patti Handy is one of my favorite resources when it comes to teens and money (so much so that I am one of her affiliates). Her latest series of blog posts has been around the mistakes that parents make with teens and money. She - as usual - has done a great job of bringing it all into focus. You can get the full story from Patti at her blog here, but here are her main points.

We're not talking! At least about money. This is very similar to the blog post I had a couple of days ago on why we don't talk about money. Whether you are starting with kids or teens, communication is key.
Stop being an ATM. If you have been giving your teen an allowance (with no advances), you can be ahead of the game. If not, it's time to change your game.
Not holding kids accountable. It can be hard - darn hard - to watch your kids make mistakes whether you are talking about money or not. But, it is part of the learning process for both of you.
Feeling guilty. Part of the parental right of passage is being instilled with a firm sense of guilt even before you get out of the hospital with your bundle of joy. That can lead directly into being an ATM or not holding your kids accountable...and entitlement. Don't let your guilt and issues create new ones for your kids.
Not getting educated ourselves. The less we know about a subject, the less likely we are to teach others. That goes for our kids and money, too. Not knowing is not the problem. Not being willing to learn and then to pass it along to our teens is. Not only does everyone benefit from the new knowledge, it is good for kids and teens to see their parents learn new things (and to see that they don't know everything all of the time).

This isn't the only valuable information Patti has. You can check out her products here - I highly recommend them for anyone who needs help being their own teen's cash coach. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Budgeting for Teen Expenses

Thu, 22 Jul 2010 06:52:02 GMT

If you have a teen, you already know that they can put a strain on the family budget. The increased expenses range from more food to new clothes for their quickly-growing bodies to sports uniforms. It's a whole new world also for expensive travel opportunities (whether through school or programs like People to People) and the latest technology gadgets. It can be frustrating and confusing on how to handle all of these budget demands - especially when they don't seem to be letting up anytime soon. Here are 4 tips from USA Today on budgeting for teen expenses.

Budget, budget, budget. This one almost goes without saying. But you may already be budgeting (whether using online budget tools or not), but just seem stuck now. Consider rebalancing your personal budgeting categories to allow for more miscellaneous items or other ways to allow for more flexibility in the spending. Having a more fluid budget can help you absorb the shocks of teen expenses.
Teach them about money. The more kids know, the more they can either help make decisions or pitch in. Or both. Having an appreciation for money does make a difference and can even make the demands on the budget fewer.
Give them an allowance. Then stick to what they are supposed to use that for without bailing them out while still helping them figure out how to use their money wisely.
Manage expectations. Tell your teens what you can and can't cover or are willing to pay for. Having ongoing conversations with them about money can head off sudden requests, disappointments and disagreements about who pays for what (or what doesn't get done).

None of these are guaranteed to work magic, of course. Still, having a plan and starting to use some of these tips now can help you and your teen get on the same page. Are you a parent to a teen? What tips and tricks do you have for dealing with the added expenses that seem to crop up nearly every day? Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

How Much Money Do You Make?

Wed, 21 Jul 2010 16:00:44 GMT

I cringe when my kids ask this question. It's right up there with the birds and the bees talks that are happening with my tween daughter, although I must admit those can be even less difficult thanks to help from introductory school sessions. Why is it so hard to talk about money - even for those of us who are really interested and dedicated to teaching children about money? Reason #1: Talking about money in a number of situations - work, family, social - is still taboo. You are discouraged (if not forbidden) to talk about your salary with your co-workers. You don't ask your neighbors how much they make - and can really only guess how much they spend. The Thanksgiving table talk is not generally about the details of the family budget or what your kids know about shopping. Reason #2: It can be hard to know where to draw the line on what you tell your kids and when. Here's where all those conversations about where babies come from can be useful. Think about what you would tell your 5 year old if they asked this question. Would you tell them all the biological details or just give them the factual information that suits their level of understanding now? Probably the second. Money works the same way. The challenge is then knowing when it's time to move from the counting money stage to allowance basics to teen money management. Reason #3: You don't always have a good role model. Most of us didn't grow up talking about money (hence the taboo nature of it now). Plus, the schools aren't really helping parents out with this subject the way they are apt to with other areas (whether we like it or not). That leaves you pretty much on your own to figure it out. Balancing teaching your kids facts with having them talk about your family finances on the playground can be a little challenging. Have you run into any of these challenges? How are you dealing with them? Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Teen Expense Sticker Shock

Tue, 20 Jul 2010 17:23:37 GMT

If you have a teen in the house, you may be finding your family budget is under more strain that it used to be. It isn't just that you've suddenly lost control. It's often that the financial demands of what it can take to raise a teen are more unpredictable than when the kids were younger. Sure, there are the standard expected expenses including the need for more clothing as they grow quickly (and the desire for more name-brand threads), more food for them and their friends, more expensive school field trips and uniforms for school sports or activities. Added to that can be desires bordering on needs for computers, prom dresses and tuxes, and music lessons. Balancing all of these expenses can be a big challenge for a family. What personal budgeting category do some of these things fit into? Should all teen expenses be covered by the household budget or are some of them paid for out of their teen allowance? How many other household expenses can be cut to fund that once-in-a-lifetime chance to travel to Paris for an art field trip? All of those are money questions, but some of the questions aren't even about the money. They need to be about balancing what teens are involved in. How much is too much? How many activities, trips and lessons are enriching and how many are being afraid to miss out on something? It can be a very hard line to draw - for parents and their teens. The opportunities are greater than ever before, and some of them are truly unique experiences that may not come around again. One key to being able to balance all of this is to get the kids involved with money from an early age. Having them understand the basics of money can help them not make unreasonable requests later. They are more likely to understand that the money in the budget is finite. Then, when it comes to teen money management they are more aware of what a "need" and a "want" are and how that all plays into the family finances. That makes parents' jobs a heck of lot easier when it comes to deciding what gets bought and what doesn't. Are you parenting a teen? What sticker shock moments have you had...and how have you dealt with them? Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Online Budgeting Gets Better

Mon, 19 Jul 2010 06:25:23 GMT

One of the most popular online budgeting tools is Mint.com. Beyond the fact that it is free, there are a couple of other important features to keep in mind - one of which is new. The new feature is one that helps you figure out where all the little money leaks in your family budget might be happening. Even great budgets and planners can wonder about that extra $50 or $100 that can pop up from time to time. Here's how it looks: .

You can see how it works here. Just enter how many times per month you have a coffee out, grab a snack from the vending machine or have lunch out and see how it adds up. The other (not new) feature that is really important for financial information is security. While it's not easy to see, not all online tools are created equal. This is an area where Mint.com really shines. From the 128-bit SSL encryption to the read-only view that Mint.com has of your financial information, their security is on par with many banks. This is much better than the method that other sites may use (which can be as simple as counting on hackers not guessing your password). Even if you choose to use another online tool, these security measures are a good standard to which financial tools should adhere. How does yours stack up? Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Sleeping with Sharks

Sun, 18 Jul 2010 06:21:23 GMT

As part of our extended family vacation, we are trying to take advantage of as many unique opportunities as possible while balancing our time and family budget. Some options may only cost gas - like the many hikes we have taken. Others may cost a bit of money but still end up being less than a fancy dinner for four. One event that we are taking advantage of involves an overnight stay for the kids at a local aquarium. It's "Shark Month," and the kids get the chance to Sleep with the Sharks. And, man, are they excited! This isn't the only overnight option like this, though. Many zoos, other aquariums, amusement parks and museums have summer or ongoing programs for kids and families. Here are three that are not your average venues...

Operation Secret Spy is an overnight program for top-secret KidSpy training. It's only being offered one more time this year on November 20th and 21st by the International Spy Museum for kids ages 9 to 13. If you are going to be in D.C., it could be worth checking out. Heck, I wanna go!
The Wisconsin Maritime Museum offers family overnights where you can spend the night aboard the USS Cobia, which is anchored beside the museum in the Manitowoc River. The night includes various games, a guided tour of the sub and the museum.
Explora in New Mexico is "part science center, part childrens museum, part free-choice school, part grandmas attic, part grandpas garage, part laboratory, part neighborhood full of interesting people, and part of many peoples lives." They offer a number of programs for their sleepovers which run on Friday and Saturday nights from September through May.

Plus, don't forget to check out your local zoo, aquarium and amusement park. More and more programs are popping up as families look for new things to do - and stay closer to home. Get some other ideas on great family sleepovers here. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Free Summer Activities for Kids

Sat, 17 Jul 2010 14:51:22 GMT

Whether you are a parent running out of ideas as the summer wears on or trying to come up with new babysitting ideas, F.R.E.E. are always good initials to start with. Borrowing ideas from popular TV shows can be a great way to keep the kids entertained while going light on your wallet and keeping the family budget on track. The latest idea is to turn to Minute to Win It games as covered in this recent WalletPop article. The show, airing on Sunday nights, is really clean family fun requiring contestants to perform simple tasks in under one minute. The harder the task, the greater the jackpot gets. The YouTube uploads prove the popularity. Check out...

Chocolate Unicorn attempts where the goal is to stack 7 chocolate snack cakes on your forehead
Shoe Fly Shoe where you try to land a shoe on top of a desk or table using only one foot
The Nutstacker where you try to stack nuts on top of each other after sliding them off a chopstick
Face the Cookie where you move a cookie from your forehead to your mouth

And those are just the beginning. There are more, way more, that you can find in this free, 98-page guide available on the show's website. Look in the upper right hand box for the "Free! Summer Activity" icon with the caption "Play at Home" - click on it and you will be prompted to download the zip file which includes the pdf guide. Even if you don't want to download the full guide, you can browse the games and get instructions for your favorites here. Play on! Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Saving for College Using Scholarships

Fri, 16 Jul 2010 15:46:21 GMT

Usually when you think about saving for college, scholarships aren't in the mix. Partly, this may be because you don't want to count on such assistance as a planning tool. It may also be that you don't know how many options there are. Here are some of the best ones - and some of the oddest ones, too. No matter which category these fall into, scholarships are worth searching for (although probably not paying someone else to do the legwork) and then applying for all that are suitable. Check these out to get started.

The Coca-Cola Scholars program accepts applications from August 1st - October 31st. Fifty National Scholars get $20,000 while another 200 Regional Scholars receive $10,000.
This list of weird scholarships from WalletPop includes...
- $500 Duck brand duct tape scholarship for making prom outfits from - what else? - duct tape.
- SAMMY scholarships for student athletes from America's Milk Processors.
- Make It With Wool and earn $1,000 to $2,000 from the American Sheep Industry Association.
- Tall Clubs International just wants you to be, well, tall. Females over 5'10" and men over 6'2" are eligible for $1,000 scholarships.

There are plenty of other scholarships out there as well. As the fall semester gets ready to gear up, now is the time for teens to be looking for these opportunities. Many, like the Coca-Cola scholarship, have deadlines early in the year. Others are offered on a first-come basis. Either way, it can literally pay to do your scholarship homework early. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Engaging Kids in Volunteer Work

Thu, 15 Jul 2010 06:52:47 GMT

Crystal C. Yan has some great ideas on how to engage your kids in summer activities with a purpose. That is the whole idea behind her blog post focused on this very topic. By way of background, you can check out her bio here which details her work to start an internship program for high school and college students, expanding volunteer programs and sitting on a board that oversees over 6,000 student leaders. She also focuses her blog posts on topics that are meaningful to kids and parents alike. The post I noted above has these very types of ideas, including...

Making use of creative talents and cultural heritage.
Have them meet with other youth volunteers to compare notes, get inspired about other projects and even take on new ones.
Get them to make movies on stuff that matters. Every kid wants to post something on YouTube - why not make it something that has an impact?
Teach kids money management and make a game of it. Hmmmm...seems like I've heard that somewhere before? But where? Here maybe?
Send them to camp. Older kids and teens can be great role models and even learn something from younger kids in the process.

When it comes volunteering and social change, this college freshman has plenty to say - and stuff that's worth listening to. This can be a great opportunity to share a great role model with your teens - whether you follow her together or on your own. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Got Too Many Gift Cards?

Wed, 14 Jul 2010 06:44:55 GMT

Gift cards have become more and more popular. My kids love to get them, and they have no problem using them. That's not true for everyone, though. Gift card resale sites aim to help these cardholders out by letting them sell their unwanted gift cards to the site which, in turn, will sell the cards to consumers who do want them. You won't be selling your gift card for its face value - and the more obscure the store, the less you are likely to get. That doesn't make them bad deals, but there are some other key things you need to know before you make a trade.

The key players are Cardpool, Plastic Jungle and Gift Card Rescue. The first two only accept cards with a $25 value or greater. GiftCardRescue has a $15 minimum.
The cards that you can sell closest to their face value are the ones that are good on almost anything at larger chains. That includes Wal-Mart and Target which are pay around 90 of their face value. Krispy Kreme, on the other hand, was only paying at 75 on Plastic Jungle recently.
The sites make their money by then reselling those cards for more than they paid for them. For example, that Krispy Kreme card that you sold at 75 was resold for a discount of only 15 (or at 85 of its value). That 10 point difference is their profit.
The new gift card rules that go into effect in August can complicate things. Be sure you know how these rules could impact you and any gift cards you have or are considering purchasing - whether you use these resell sites or not.

You can get even more details in this Associated Press article on resell sites if you want to figure out the best way to use them - either for buying or selling. Have you had any experience with these sites? Did they work for you? Tell me about it here. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Teaching Kids About Money and The Marketing Machine

Tue, 13 Jul 2010 06:18:23 GMT

My kids LOVE Phineas and Ferb. Not sure who that is? It's one of the latest cartoons showing on the Disney Channel. I've got to say it is one of the more original ones I've seen - I really enjoy their creativity and good-naturedness (even in the face of their teen sister). That's not the point of this post, though. The real point is that these guys are outshining SpongeBob Squarepants in popularity. The marketing powers that be haven't failed to notice, and the machine is cranking up to take advantage of this trend. Here's just a quick view of the items listed in a recent WalletPop article on this dynamic duo.

Branded products such as boxer shorts and skateboards hitting giant retailers including Target, Wal-Mart, and Kohl's.
They get their own macaroni and cheese version in 2011. Just in case you need another reason to more mac and cheese.
They are going to be in their own Disney Channel movie. Could it be another High School Musical?
Celebrities are lining up to be guest voices on the show. Sure, this may not make too much of an impression on the kids - but it can keep the parents entertained. And then the kids can watch longer...

There is nothing wrong with marketing. That's the way businesses help consumer know about their products and sell more of those products to make money. The key is making sure that part of teaching kids about money - especially when teaching them about shopping - is that they understand how marketing can work to make them want certain things. (If you have a tween, be sure to check out Admongo.gov for great interactive lessons in advertising.) Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Summer Teen Jobs and Understanding that Paycheck

Mon, 12 Jul 2010 07:03:07 GMT

A recent CNNMoney article on teaching teens about their paychecks brought up some great reminders on key things that your teens need to know AFTER they land that summer job. The tips in the article are all things that money-and-kids.com has as part of teen money management. Here's a refresher on these just in time to help your teen come through the summer with more money skills than when they started.

Teach them about taxes. It can be a shock to some teens to get that first paycheck and see that their take-home pay is not equal to the hours they worked multiplied by their hourly rate.
Introduce or support their teen banking habits - focusing on saving at least some portion of their check. Whether this is for school clothes or a longer term goal, getting into this habit now is critical to their future financial success. Still need to open an account? Check out this article on finding the right bank account.
Let them make their own mistakes. As hard as it can be, this is very similar to not giving them an advance when they mismanage their teen allowance.

Earning money through their first job is more than just a way to learn about working for someone else. It is also a great opportunity for teens to learn even more money skills as they progress to adulthood. Take advantage of your teen's summer job to help them learn even more. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Family Budget Tips: 5 Things to Never Buy Used

Sat, 10 Jul 2010 06:43:58 GMT

Yesterday, we talked about what never to buy new...but are there things that you should never buy used? Of course! Many of these things have safety issues (or potential ones) and are directly related to kids. As many of us parents know, it seems like there is a recall of kids' products nearly every week. From cribs to Shrek glasses at McDonald's, it is hard to keep up. Even though you are trying to keep your family budget and some specific personal budgeting categories in check, there are just things that you really need to buy new. You can find the whole list of 20 things from U.S. News and World Report here, but here are the top 5 things that make a difference for families with kids.

Cribs and kids furniture. This comes down to safety and all those recalls. It is highly unlikely that you can keep up with the recalls and why take the chance?
Car seats. Same safety reason - and even Goodwill and other charities don't accept these for this very reason.
Laptops. These things become obsolete so quickly - and have a pretty big chance of having issues even if you buy them new. You can find great deals on new and refurbed computers at places like Dell Outlet - plus you get the ability to make them fix it under the warranty.
Digital and video cameras. When you remember to take your camera to the school play or playoff soccer game, you want it to work and take good pictures. Investing in a new one will capture memories you can't recreate. Do your research and you can get a solid performer without breaking the bank - and knowing that it will work.
Shoes. Ok, there is a little gross factor here, but it can be darn tempting to buy used kids' shoes. Depending on your kids' feet and what the shoes are for (one-time wearing to a wedding?), this can be OK. But for adults and other shoes that get more wear, worn shoes can have no support and already be "set" in the former owner's foot shape. It's not worth foot and back aches that can result (or even injuries if we're talking sports shoes).

Those are my top five. What are yours? What has been the worst experience you've had buying used? If you missed what you should never buy new, check out yesterday's post! Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Family Budget Tips: 5 Things to Never Buy New

Fri, 09 Jul 2010 07:13:11 GMT

Never buy new? That sounds crazy, doesn't it? Yeah, it does, but there are plenty of things that you can buy used. I will say that this can be like buying generic, though. There may just be some things that you don't want to buy used. That could be a car or clothes for your kids. Even so, just like with buying generic items at the grocery store, there are likely things that you will want to buy used. The impact to your family budget and some specific personal budgeting categories - whether it be clothing, entertainment or furniture. You can find the whole list of 21 things from U.S. News and World Report here, but here are the top 5 things that can make the biggest change when you have kids in the budget.

Books. Do your kids want the latest book from Rick Riordan (Percy Jackson fame plus 2 new series)? Have you been eyeing the latest John Grisham or have a teen tied to Stephanie Meyer? You'd be surprised how quickly used versions of these show up on Amazon.com - for a mere fraction of the cover price.
Video games. These can break you - or bust your kids' allowance. Whether you to to Amazon, eBay or even a nearby GameStop you can find latest versions within a couple months of release. Plus, you can also sell ones at these same places once your kids are done with them.
Games and toys. This is in the same vein as the video games - kids outgrow or become bored with toys quickly. Whether you find them at a garage sale, Craigslist or from friends and family, used toys can be a great bargain...just wash them first.
Musical instruments. Who hasn't had their budding musician come home after joining the band or orchestra at school with a flyer full of new instruments? As much as you want to support them, be sure your child is committed to this before shelling out hundreds of dollars for a new instrument. (Remember how quickly they get bored with fun stuff like video games and toys...)
Cars. You knew this was coming. Whether it's a family car or one for your teen driver who needs to get to a summer job or support their own teen business, cars are one of the most expensive and fastest depreciating items ever. Sure, you need one that's safe and meets your needs - but you can save big bucks on the car and on the taxes and insurance that comes with it.

Those are my top five. What are yours? What has been the best savings you've had on buying stuff used? Interested in knowing what you should never buy used? Come back tomorrow for that list! Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Finding Ways to Afford Your Family Vacation

Thu, 08 Jul 2010 08:09:22 GMT

If you haven't taken your summer vacation yet, you may still be wondering how you are going to afford it. At the least, you are trying to figure out ways to keep those vacation costs manageable. You know you're going to have costs you didn't plan for - so finding as many deals as you can will help your total vacation budget stay on track. How can you find the best prices without making vacation planning a full-time job? This Financially Fit article on 10 ways to afford your vacation has some excellent suggestions. I've captured a few of them below, plus added in my own thoughts as we are over one month into our summer adventure away from our home base.

Research as much as you can. Whether you are looking into airfares on kayak.com or an all-trip aggregator like Expedia, it pays to start looking in advance so you can get a sense for what to expect - and to watch price trends.
Narrow down your location choice. You can start your research with lots of ideas, but you need to narrow your options to really be able to track the deals. Anything more than three is my tipping point; yours maybe different.
Check for hidden fees. Guaranteed that there will be some on some part of your vacation costs that will fall into this category. These can wreck your budget because they are not always small. Whether it is baggage fees on the airlines, taxes and fees on car rentals or a hotel surcharge, be sure the quotes you get include all the costs.
Consider waiting to rent a car. I know, I know. There are big advantages to booking your car in advance and not being stuck at the mercy of the rental counter in the airport. But, depending on how long then switching to a local long-term car rental worked best for us. We figured out what kind of car we needed (including a surf board rack) in that first week as we settled into a routine. Plus, we got a better deal negotiating locally.
Avoid getting hungry. First, be prepared not to be able to get food when you are flying. Whether it's due to short layovers or closed restaurants, being hungry makes everyone cranky at the least. Two words: pack snacks. The airline "meals" (when offered) are generally overpriced and not filling. At a minimum of $6 per person, you can drop $24 on cheese, crackers and Oreos. Screaming kids and annoyed adults will make that seem like a bargain. The same is true for car travel and roadside restaurants. Even in our local trips, we pack snacks and often lunch. We generally like it better plus it's easier on the wallet.

There are probably lots more tips that you are using. Be sure to share them here! Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Are Piggy Banks Outdated?

Wed, 07 Jul 2010 05:39:54 GMT

That's the question being asked in this recent article on piggy banks and today's generation. It's easy to see in this electronic age why that may be a relevant question. How many times have you scrambled to find coins for paying an allowance or as a reward for a job well done? Plus, does a piggy bank really work for teaching children about money once they get a little older? Those are the same questions the founders of Three Jars started asking - especially after the economy turned in 2008. Their answer was to develop money management software for kids. Here's how it works (from the site):

It is almost like an online bank for kids ages 6 to 13, but they are NOT a bank. Parents pay kids in IOUs (which do represent real money).
You set up an account for your kids and decide how much allowance along with how much should be saved, spent and shared.
Over time, your kids send you requests to use their IOUs - which you can approve or deny. Kids can also earn money by doing projects around the house which are also tracked in Three Jars.
There is a $30 per year family membership fee (unlimited number of kids per family) which keeps the site profitable and free of advertising. There is also a free 15-day trial if you want to give it a spin.

That's a fairly high level view of it, but you get the idea. The "three jars" are SAVE, SPEND and SHARE. Your kids get their version of online banking plus have some control over their money that a piggy bank can't always give them. There is something to be said for cold, hard cash though. As many of us have witnessed or experienced, electronic transactions and credit cards make money seem less, well, real. That may not be something we want our kids to experience at a young age. It seems that Three Jars will work best when combined with offline lessons in having a savings account, teaching them simple ways to save and general allowance basics. What do you think? Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Internships in the...Fall?

Tue, 06 Jul 2010 16:49:22 GMT

This WalletPop article on fall internships brought up some very interesting points. It was a good reminder that finding summer teen jobs can be one of the most competitive teen job searches. But fall can be an entirely different story. Why? Simply put, teens go back to school. Although the WalletPop article focuses on college kids, the same things hold true for teens who are still in high school. Many kids have too many obligations, including coursework, sports and other activities (not to mention teen chores), to be able to handle a job as well. That can leave businesses with some holes to fill once the school year starts. Teens can take advantage of the exit of other summer teen workers and get their foot in the door during the fall semester or term. Businesses may expect their sales traffic or other needs to decline but that doesn't mean they don't need some part-time help. Being prepared to sell themselves as the perfect fit for fall and winter needs can help teens solid a job that fits their money goals as well as what the business needs. To do that teens should focus on landing the job by presenting themselves professionally, recognizing the need for workers as the summer interns leave and helping the business see the advantage of hiring someone now for fall and winter vacations (plus any other seasonal needs). The key advantage is having the time to train someone in the fall who will then know how things work and be ready to go when the need hits. That saves the business headaches of having to find someone in a pinch when the business demands are too great or customers are complaining. Plus, most fall and winter teen jobs can have more flexible or fewer hours due to the lower business need. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.

Free Checking No More?

Mon, 05 Jul 2010 07:30:16 GMT

Earlier this year, big banks won lots of kudos and praise for getting rid of overdraft fees that were being levied on debit cards (see the Bank of America announcement here for a refresher). Now, though, they may be getting ready to undo lots of that goodwill. This Wall Street Journal article on checking account fees highlights why the end may be in sight for the free checking that most of us have come to count on. In the end, banks are in business to make money. Their ability to do that has been impacted by new regulation, and they need to replace that income. Banks have two main ways to raise money that involves the majority of their customers: raise interest rates on loans and charge fees on accounts (overdrafts and service charges being the most common). They control expenses by paying less on deposits and offering fewer free services. That's where the end of free checking comes into play. Charging for this service both reduces expenses and increases revenue. A double win for the bank. Not so much for most customers who are trying to balance the family budget and manage all their personal budgeting categories. There are all kinds of options being considered, but any scenario will end up costing consumers one way or another. For example, you may need to move more of your accounts to one bank to forgo checking fees - only to find out that your credit card rates are higher. Plus, you now have fewer choices on getting the best rate by being able to choose. To keep that option, you may have to pay fees on your checking. For what it's worth, you may already be doing this a bit by agreeing to have direct deposit or use your debit card 5 times each month. Geoff Williams' post on many current banking programs outlines this nicely. Still, even some of these current programs may change - especially if the Bank of America experiment works. Other banks can follow their lead to increase revenue and be part of the market - without worrying as much about loosing customers. The best approach for you? Keep an eye on your bank and read those notices you get. Then you can decide whether to shop around after the dust starts to settle. Want to get these updates delivered directly to you? Subscribe to the money-and-kids.com blog RSS feed here.