Valerie wanted to chat about kids, money and the effects today's economy is and will have on the average family. As you may know, I haven't been blessed with children myself, but do have a financial book out for parents on how to educate their kids on money matters (I guess you have time to write these types of books when you don't have little ones of your own). My passion in getting the information out is thus; with Canadians facing 1.1 trillion dollars in household debt (according to Credit Canada), and discussing money the new taboo, and the fact that most parents don't have a solid grip on money matters, I felt someone needed to come out with a age-by-age guidebook on educating parents on matters of finance that they could then disseminate to their children at their own individual pace.
As that book as been out for a year now (The Prosperity Factor for Kids), I've had lots of feedback from readers and others. Often, I hear from a frustrated parent or media interviewer, wondering why this information is not taught in schools.
Here are my thoughts on the matter:
1. Most teachers are not well versed on finance and it's not part of the curriculum. How can we possibly expect an overtaxed system to add yet another complex element?
2. Do you remember when you were a teenager? How important was it that you balance your chequebook when you didn't even have one yet?
3. Lastly, I would love to see some basic money management taught in schools, however, it's still essential that the lessons, tangible, intangible, observed and otherwise, come from the parents. I think we can parallel the notion of teaching kids about healthy eating in school only to come home to a parent that's serving burgers and deep-fried food for dinner. The learning’s must be reinforced and/or originated from the home. So what to do in this tough economy? I think adversity can equal opportunity and that the downturn and tightening is an eye-opener and bridge to an open, honest conversation within the family unit.
Try these simple steps:
- Determine a monthly family money meeting. Be open and honest with your children about what's happening globally and how mom and dad's job or salary might be squeezed. Ask for them to join in when deciding what expenses can be cut or suspended until the economy picks back up. Meet monthly to discuss feelings, financial definitions that all of you can "google" and define together.
- Ask for your family's creative income producing ideas. Perhaps you could organize a swap meet at your child's school where video games, electronics and more can be dug up out of the toy chest and swapped for other kids treasures. Or, explore a flea market at your child's school where they sell their talents and wares to other students and parents (i.e. artwork, services such as setting up neighbours DVD players, computers or even teaching a mini course to senior centers on computers). Teaching your child that there's always and opportunity to profit in any economy can be a valuable lesson to follow them into adulthood.
- Lastly, if you don't already pay your child an allowance, consider doing so but only for tasks above and beyond what you would already expect them to participate in within the household. By giving them some autonomy for making their own purchases, they may actually surprise you by being more frugal when it's "their" money they're spending as opposed to mom and dads.
For ideas on setting a solid foundation for your teen's on the topic of credit and credit cards, see a current Canadian Family article detailing some of my tips for a mock credit system http://www.canadianliving.com/family/parenting/how_to_teach_your_kids_about_money.php
My interview with Valerie will air on CTV Edmonton sometime in February. Check my website (http://www.kelleykeehn.com/ under the "events and appearances" tab) for the actual date to be announced shortly.
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