What You Can Learn by Teaching Your Kids About Finances
April 19th, 2012 - Category: Financial Literacy, Uncategorized
Research shows that most Americans have poor financial literacy and fail to plan ahead for major life events such as retirement and paying for children’s education. Parents who are actively teaching their children about finances and money management are bound to learn a few lessons themselves—and maybe practice what they preach more religiously.
“To teach is to learn twice,” wrote French essayist Joseph Joubert, and that sentiment rings true for parents teaching financial literacy to their kids, says Stephen Rhodes, CFP, managing principal of Strategic Partners Wealth Management in Creve Coeur, Mo. “When you are responsible for teaching your kids about money, it forces you to understand the material in a different way,” Rhodes says. “The myriad of questions you will get from your kids requires you to spend time thinking about the topics, and in turn, helps you to gain a level of understanding not possible otherwise. I have found that not knowing the answers has been the best thing for me long-term, as it causes me to conduct my own research. The lessons I have personally learned seem to stick longer than those I heard about secondhand.”
For instance, by making a conscious effort to teach your children about wise money management, you will learn:
- 1. Being consistent. “When you begin to teach your kids about money, there is a built in accountability,” Rhodes says. “For example, if you provide your kids with piggy banks and communicate that you will provide them with an allowance so that they can learn the importance of giving, saving and spending, the pressure is on you as a parent to make good on your promise. Should you get busy and forget, your kids will promptly remind you about your commitment. The built-in accountability that comes with teaching your kids about money teaches you to be consistent, and once you’re consistent, there is not a money topic that you can’t master.”
- 2. Developing new habits. Working with children to help them develop financial skills can also help give you the self-control to develop new financial habits of your own. Just as your exercise habits and eating habits determine your body weight and physical health, your financial habits will determine your financial health. “If we were to teach and show our children how to save, not only would they save, probably for a lifetime, but so would we,” says Neil Palache, a certified Women’s Money Coach and founder and CEO of the Wealth Creator Company for Women, Inc., in Westlake Village, Calif.
For instance, with their own children, Palache and his wife have established what they call “the Money Inn,” a place where every member of the family drops coins each day. “The kids each have several full piggy banks that they have taken upon themselves to fill,” Palache says. “And as a result, my wife and I have become better savers too.”
- 3. Setting an example. Many of today’s parents have learned to rely on credit cards and other debt instruments. “If we want something, we buy it,” Palache says. “However, we also often struggle because our kids are constantly asking us for things — toys, candy, movies. Very few people have unlimited resources, especially given the current economic climate.” Beyond talking to your kids about why they cannot have something they are asking for, the best way to teach them is to apply that same restraint to your own spending.
“Are you saying no to eating out with the kids and then doing exactly that during the coming weekend?” Palache says. “Maybe there’s a lesson to be learned. Eat out less. Eat home more. Your kids will appreciate it and so will you.”
MyJobChart.com Welcomes Heifer International as Premier Charity
April 19th, 2012 - Category: Teaching Kids to Give
The almost 140,000 young users of the online chore chart, MyJobChart.com, will now have a chance to help by donating livestock to families all over the globe.
My Job Chart announced this week that Heifer International has been added as one of its premier charities, all part of the unique My Job Chart approach, that provides children the opportunity to “save,” “spend” or “share” the points they earn from doing their chores.
An astounding 10 Million chores have been completed by kids using the My Job Chart system over the last 2 years.
“When I first created the online chore chart, I did so to encourage my own six children to stay on task and to complete their chores,” says Gregg Murset, founder of MyJobChart.com. “More than that, though, I wanted to teach them how money works and help them see the rewards that come from saving and the joy that can come from giving to others.”
Murset says Heifer International perfectly fits with what MyJobChart is accomplishing.
Heifer International is a global nonprofit humanitarian assistance organization working to help end hunger and poverty and at the same time protect the environment and care for the Earth. Heifer provides living gifts of area-appropriate livestock and training in environmentally sound agricultural practices to families in need to help lift themselves out of poverty to become self-reliant.
“As users of My Job Chart decide to ‘share’ and designate the points they earn to go to Heifer International or another charity, these young people begin to feel that their work truly does matter. More than just pleasing their parents, they learn they have abilities and opportunities that can make a difference on a much grander scale,” says Murset.
While young users are drawn to the free online chore chart for its ease of use and the high-tech feel they love, parents are pleased with the less-obvious benefits of My Job Chart. My Job Chart “gets kids and parents talking, it changes the entire conversation when it comes to work and money,” Murset says.
Bottom line, Murset says, “It’s free, and it works! MyJobChart.com is just a fun, easy way to instill work ethic and build character over time. Now, with the opportunity to contribute to Heifer, users can feel the satisfaction that comes with helping to lift others out of poverty and become self-reliant .”
Beginning Habits of Money Management
April 11th, 2012 - Category: Budgeting, Money
Remember when we suggested that your kids (and you) keep track of every cent spent for 30 days? How is that going for your family? Hopefully, it’s starting to become a habit – one that will continue beyond the initial 30 days. It’s important to have a clear picture of your spending habits as they really are and not as you may think they are. Remember, this is not a time to make judgments on how your kids (or you) handle money – this is simply to track spending habits, not change them; at least, not yet. Record-keeping helps take the mystery out of our spending habits, as well as eliminate excuses. Just don’t use it as a time for lectures to kids or self-depreciation. This record will later become a useful tool. As we learn better, we can do better.
There are several ways to go about this type of record-keeping. Get a receipt for every transaction; even a stick of gum or a soda and keep it in an envelope or certain part of your wallet. If no receipt is available – write it down and keep the note with your receipts. Each night, gather your receipts and log your transactions into a spreadsheet or Qicken® or a small notebook; whatever works for you. Small purchases are the easiest to be overlooked so pay special attention to them. You may prefer to carry a tiny notebook to record your expenses in. Find a method that you can keep up and help your children do the same and then stick with it.
Keeping track of your money is just as important as saving your money. Now is the time for a little OCD to kick in. Every time any of you get money (paychecks, odd jobs, the kids’ MyJobChart chores, even a dime picked up off the ground), LOG IT IN. Do the same thing every time money is spent; every cent that enters or leaves your life … write it down. Be sure to remember the three-legged stool of financial literacy (“saving, sharing and spending”) we have discussed in previous blogs and enter the amounts saved or shared. Record EVERYTHING.
As you and your kids do this, you will feel a sense of power. You will start being in charge of your money instead of the other way around. And if you are one of the lucky ones who has mastered these skills already – more power to you – but for those who still feel at the mercy of their money, or lack of it, it’s time to show the money who is the boss. Children who learn money management skills before they leave their home for college and employment as adults will find great joy, peace and success in their lives. And speaking of college – next week, we’ll delve into saving for college – a huge aspect of financial literacy. Talk to you then.
April is National Financial Literacy Month!
April 4th, 2012 - Category: Financial Literacy, Money
April is also known as a time of fresh starts and renewals which makes it a perfect time to start teaching our kids about financial literacy, if we haven’t been doing so already.
It might be surprising how easily young children can grasp the principle of “financial literacy” when presented to them through stories and videos. Help them recognize the choices characters in TV shows or books make when it comes to managing their money. For example, when a character makes a purchase, discuss if it was a “need” or a “want” and if it was “planned spending” or “unplanned spending.” If a character spends his or her money on something unimportant and then miss out on something they really wanted, talk to your child about it.
In this digital age there are so many resources readily available to us, such as My Job Chart, that it’s relatively easy to put together some little age-appropriate “lessons” that might appeal to your child. Here’s a link to a cute PDF file for a story that can be printed off and colored about a squirrel that saves nuts in preparation for the winter. It is found at the FUNancial Literacy website.
Talk to your children about what kinds of things they might need to save for. Many young people contribute to their college fund and it’s never too early to start. Or maybe they want a guitar or drum set or rollerblades – encourage them to earn at least part of the money themselves. Planning ahead pays great dividends. Warren Buffet said, “Someone is sitting in the shade today because someone planted a tree long ago.”
For older kids, give them a certain amount of earmarked money to be in charge of, other than the money they earn at myjobchart.com. Look for opportunities where they can handle a certain amount of money – or have them research the cost of an upcoming family vacation and try to find the best deals. Give them the grocery list and food money for a week and let them try their hand at it. You can be creative in any number of ways that work for your family to give your children real-life experience in handling money. Teens will also find quite a few FaceBook pages on “Financial Literacy” if they do a search for it. “Liking” those pages will put good ideas in front of them often on their newsfeed.
Let your older kids save for summer camp or scout camp. Find ways to help your children learn to handle money wisely while they are still at home, under your watchful eye. Smaller errors made today and learned from can prevent larger financial mishaps when they reach adulthood.
It’s tax season. While you may prefer your children not to know the exact amount of your family’s income, let your children know the percentage that goes to taxes. Talk about what kinds of things are funded with our tax dollars. As you talk about the need to contribute to society in this fashion (no doubt there could be plenty of opportunity to explore the wasteful use of money as well), but you can also discuss the need and joy of contributing to the family. Let the kids help save for something everyone in the family is looking forward.
The nice thing about having a “National Financial Literacy Month” is that it gives us a chance to stop and reflect on things and to think about where we are at financially and where we want to be as well as reminding us to involve our children in thinking and learning about financial literacy. Encourage them to track every single penny they spend. Are you keeping a 30-day record as we suggested in our last post? It can be very revealing and it will help you set up budget areas when make out your spending plan.
Oh, and have a Happy Financial Literacy month!!
Eye-opening 30 Day Experiment on Budgeting
March 27th, 2012 - Category: Budgeting, Financial Literacy
In the last post, we talked about parents needing to be good examples for their kids when it comes to money management. Businesses and corporations track very single penny earned and are aware of how each dollar is spent. While basically all adults have “an idea” of how much they are spending on things, not everyone keeps careful records. Many simply employ the “fly by the seat of your pants” type of money “management.” When a paycheck is earned, they pay the most pressing bills, buy some groceries, get some gas in the car and then try to hang on until next payday. If you don’t fit into this category – good for you – but if you do, don’t despair. Money management is a learned skill.
A new month is fast approaching. As an eye-opening experiment, write down how much you think you are spending in typical categories such as rent/mortgage, utilities, food, gas, clothing, entertainment, school expenses, charitable giving, medical/dental expenses, savings accounts, gift-giving, debt repayments, insurance, etc. Then keep track of every single penny that you spend for the 30 days in April (or any 30 day period); even a pack of gum purchased needs to be recorded. You need to be able to analyze your current spending habits in order to plan ahead and create a workable budget.
Have your kids do the same thing – they can keep track of every penny they spend for 30 days, including items “earned & purchased” via the MyJobChart.com chore chart and its Amazon store. Be sure that you and your kids also have a page to track where the money is coming from. Write down your monthly salary and/or if you are a commission-earner, keep track of all commissions earned. If you have any other source of income, write it down. The kids can record whatever they earn from doing their chores on My Job Chart and any other source of income they may have; babysitting, part-time jobs, etc. if they are old enough.
Keeping careful track of your expenses will help you recognize your needs when you set up your budget after this 30 day experiment. You may realize you are spending money in areas you did not list when you tried to project what you are currently spending your money on. You will need this information in order to determine what is working and what isn’t.
During this 30 day period of record keeping, pay attention to advertising, marketing and consumerism. You might want to make a note about why you purchased some things and be honest if something was simply an impulse purchase. Mindless spending is as detrimental to your financial well-being as mindless eating is to your physical health. Only awareness can bring about change and improvement.
April happens to be “National Financial Literacy” month so it is a perfect time to work on our own finances and to teach our children the skills they will need throughout their lives.
Financially Smart Kids are Happy Kids ~ My Job Chart Kids are Happy Kids
March 15th, 2012 - Category: Money
Everyone wants their kids to be happy. If you asked a dozen people, especially children, to define happiness you would most likely get a dozen different answers. If you look up happiness in the dictionary, the word contentment comes up the most and if you check contentment, you get “a feeling of satisfaction.” Let’s go one more … look up satisfaction and you get “the fulfillment of one’s wishes, expectations or needs.”
If you are content and satisfied with your life, you are bound to be happy. Few things cause more discontent than money woes. Even very young children can be taught the value of working for something and appreciate the happiness it brings. MyJobChart.com can help you teach your kids the value of work and its rewards the very first time you use it. As your kids establish patterns of completing their jobs (chores) and earning whatever reward you set up as their parent, they begin to experience a feeling of satisfaction. They learn to work for what they want. Other tools on My Job Chart help them learn how to handle the money they earn, helping them to be happy kids.
The lessons children learn today about handling their finances will carry over into adulthood. A 2010 iVillage survey of online U.S. moms indicates that more than half of moms (61%) are the primary money managers for their households. 41% revealed they wish they were more informed about being financially responsible. This is information they would like to pass on to their children. Many moms turn to the Internet these days and 37% of those interviewed wished for more access to online articles and discussion forums with trusted financial experts.
[iVillage, iVillage and PASS from American Express(SM) Partner to Launch The Talk to Mobilize Moms to Talk to Teens About Money, September 15, 2010, http://about.americanexpress.com/news/pr/2010/thetalk.aspx]
Can we count on the schools to prepare our young people to handle their finances? A 2010 Visa survey shows that 93% of Americans believe all high school students should be required to take a class in financial education. Yet, just a handful of states have adopted varying degrees of financial literacy curricula. At the time of the survey only four states required high school students to take a semester-long course in personal finance.
[Visa, Back to School Survey Shows Americans Want Personal Finance Taught in the Classroom, July 20, 2010, http://www.practicalmoneyskills.com/about/press/releases_2010/0720.php]
In light of this information, it really falls on the parents to teach their children financial literacy, even if they have to do some study on their own first. In these challenging economic times, it behooves all of us to learn good money management skills so we can handle our finances better and share those skills with our children. Well known financial adviser, Suze Orman, says on her Money Matters column for Yahoo Finance that “The single most important step in raising a money-wise child is simply for parents to be money-wise adults themselves. And that’s where so many well-intentioned moms and dads seriously drop the ball.”
Let’s spend some time tightening up our own financial skills so we are better able to prepare our kids to handle their money. Albert Schweitzer said, “There are only three ways to teach a child. The first is by example, the second is by example, the third is by example.” Only if we are using good money management skills can we show our kids how to do the same.
Could Using My Job Chart Improve Your Child’s Financial Literacy?
February 29th, 2012 - Category: Financial Literacy
We all want our kids to grow up and be able to make wise financial decisions. But research indicates that most young people leave home with very little practical knowledge and experience in this area. A 2010 Financial Literacy Survey of adults, conducted on behalf of the National Foundation for Credit Counseling, Inc., revealed that 34%, or nearly 77 million people, gave themselves a grade of C, D or even F in their financial literacy skills.
[National Financial Literacy Survey Reveals Silver Lining, April 13, 2010, http://www.nfcc.org/newsroom/newsreleases/files10/FLS_ReleaseFINAL2.pdf]
When kids actually earn their own spending money they are generally more careful about how it is used. However, if mom and dad always dole out funds for a child’s various activities, wants and desires, the child rarely pays attention to how it is spent. Luckily, My Job Chart provides practical experience in money management while children are still living at home where they can experience the results of their financial choices, good or bad, in a safe environment.
According to the “2009 Young Adults & Money Survey” sponsored by Charles Schwab, many in this age group admit they don’t feel adequately prepared to make good financial choices when it comes to using debt wisely (28%), saving for the future (40%) or investing their money (43%). This is a statistic that needs to change and, we, as parents, can be the change agents in our children’s lives that will prepare them to succeed in handling their finances.
Now is the time to teach them to plan ahead for a future purchase; to earn the money and save up until they have enough to buy it. While they are young they can learn how to handle their finances, how to earn, save, spend and share.
According to a survey by PASS from American Express, teens say that talking with their parents about money is not easy, as nearly half of teens (49%) reveal that having to ask their parents for money is a “hassle.” The 2010 survey also suggests that teens and young adults primarily receive money through allowances, gifts, or unscheduled jobs such as chores around the house. Over half of parents (55%) give their teens an allowance. Parents give teens an average of $66 per month, including funds for a regular allowance, clothing or food, extra spending money, and/or payment for jobs around the house.
[PASS from Charles Schwab American Express, Many Parents Say Discussing Allowance with Teens is as Stressful as Negotiating Purchase of a Car, August 16, 2010, http://about.americanexpress.com/news/pr/2010/dat.aspx]
A survey done by in 2010 about “Families & Money” suggests that the road to financial independence for today’s youth stretches out farther than ever before. It reveals that 41% of the so-called “sandwich generation” parents continuing to provide at least some financial support to their young adult children. Ouch!
We need to raise up a generation of financially literate adults who can make wise money decisions. We need young people who can plan ahead, create and follow a budget and not be a burden on their families or the government. Our kids need to know what a blessing it is to be able to live within their means and plan for their future.
No worries, though. You’re at the right place because using My Job Chart can help in all of these areas. Watch for more on financial literacy and how you can help prepare your child to handle their own finances after they leave home in future posts. We hope you are able to discuss some of these things in an age-appropriate manner with your kids as they enjoy doing their chores and reaping the rewards while tracking their success online with My Job Chart .
My Job Chart offering Free Online Chore Chart with Bonus
February 21st, 2012 - Category: Charts
“MyJobChart.com, an online chore chart was designed to teach young people the concept of responsibility, work ethic and the value of money by giving them a way to earn points for completing their chores and extra jobs.
The free site has always offered a way for young users to ‘spend’ their points on rewards they want, ‘share’ what they earn with a chosen charity, or to ‘save’ for the future.”
My Job Chart - $20.00 Bonus for each kid that signs up!
Kids are able to experience the tremendous rewards of earning money for themselves and then of accumulating that money and saving for the future. As they do this they will get a $20 bonus into each child’s account just for signing up.
My Job Chart is easy of use and the high-tech approach have made MyJobChart.com a hit with more than 130,000 kids in just over a year since its inception.
Jennifer Cross, of Fort Worth, Texas, says she was hooked on the free My Job Chart site from the start. Using it with her three children, she has been pleased with the site’s educational aspect.
I’m a high school teacher and a lot of kids have everything done for them. Parents are not taking the opportunity to teach their kids about work and responsibility,” she said.
She says her children have responded well to the intrinsic rewards and immediate feedback the site offers. She especially enjoys watching them learn to “save” and now that she has ING Direct savings accounts for all of her kids it’s easier than ever to accomplish that.
“Now they like to work and they come to me asking what other chores they can do,” Cross said.
How MyJobChart.com Works! from Gregg Murset on Vimeo.
Organization Saves Time
February 3rd, 2012 - Category: Organization
If you’ve ever wasted time looking for something that you knew you had but could not find anywhere, you’ll most likely agree with the motto: “Organization saves time.”
Do your kids run all over the house in the morning trying to leave for school but can’t find the report they need to turn in?
Have you ever been cooking dinner only to realize you are missing a key ingredient?
These types of scenarios can occur in any household but when they happen again and again, it may be time to re-evaluate your situation and try a new plan. Sounds like it’s time to get more O-R-G-A-N-I-Z-E-D!!
Routine is the mother of organization and what better way to instill these habits in our children than for them to have regularly assigned chores for which they must be accountable? The ease and beauty of our “My Job Chart” online chores chart teaches our kids to establish valuable life-long habits that will lead to a satisfying and organized life. It can be customized to fit the needs of your child and your family.
You can turn ANYTHING that needs to be done with any regularity into a “chore” so that My Job Chart becomes the means to creating routines that will benefit our children. We get the most interesting emails from our users. In fact, one mom in California wanted to help her daughter establish the habit of drinking more water so she added it to her chore chart. Here’s what she wrote:
Hi – I just wanted to say thank you THANK YOU for this awesome
service; it has revolutionized chores and daily tasks in our house.
I love anything I can do online, and this was a HUGE improvement
over me scribbling tasks and points and tic marks on a piece of paper.
I hope this service remains free! My 8 year old loves it. I even added
“drink water” to her morning and evening chores, as I was bugging her
constantly to drink more water but she wasn’t doing it.
THANK YOU!!!!
Steph in California
Now, adding drinking water to your child’s schedule might be something you haven’t thought of, but hey, it seems to be working for this family, why not yours? What does your child need help with as far as creating habits and routines that will lead to their being more organized and more successful? Maybe it’s all their personal care; brushing teeth, washing their hair, etc. or perhaps it’s having a checklist of all the things they need to take with them to school each day and getting points for reviewing the list to be sure they are prepared for the day. You can add their music practice schedule to their “chores.” Whatever it is, you can make it part of their personalized online chore chart and help them become more self-reliant as they log on, do their chores, check them off and earn their rewards; not the least of which will be having more time in their lives for the things that are important to them because the things that are required of them will have become second nature. As you may have heard before, “organization saves time.”
The 3–Legged Stool of Financial Literacy
January 28th, 2012 - Category: Financial Literacy
If you have been involved with My Job Chart for a while, then you have come to appreciate our three main areas of focus: “saving, sharing and spending.” I call it a 3-legged stool.
Just for a moment, try to picture a 3-legged stool in your mind. It generally has a flat round surface from which extend three legs, all the same length and all the same distance apart from each other. When properly built, a 3-legged stool works very well. It is stable, handy and dependable.
However, if one of the legs is missing or even broken, the stool is no longer able to support the weight of someone using it to sit on. The integrity and usefulness of the stool is compromised. It’s interesting to note that the stability of the stool is also diminished if the lengths of the legs vary. Depending on how uneven they are, the stool may cease to be functional even though all three legs exist. The same is true in helping our kids learn about money and chores. It is not only important to teach our kids how to earn points (which can be redeemed for money, privileges, time with a parent, etc.) but it is equally important that we teach them how to handle what they have earned in terms of balanced and reasonable use of “saving, sharing and spending.”
The 3 legs supporting the stool of financial literacy are also “saving, sharing and spending.” These three “S” words are the Super Heroes of prosperity. When they are all in place and balanced, the stool is stable and functional. They are the pillars needed for a child to understand and experience financial literacy first hand.
Now, imagine a properly balanced 3-legged stool that has 3 support pieces of equal size placed in between the legs of the stool. Adding these 3 supports ensures long and successful use of the stool. I’d like to suggest that the supports consist of parents, training and experience, the very results of utilizing the 3-legged stool of financial literacy.
If parents are able to teach their kids about the proper use of money, focusing on “saving, sharing and spending,” and then allow them to experience the positive results of their efforts first-hand, the parent and child will have built a stool of financial literacy that will serve each of them well all of the days of their lives.
You will find many of the tools needed to teach these things to your children as you participate in our free, user-friendly, online chore chart and reward system at My Job Chart. Join the thousands of other parent who are teaching and motivating their kids to Save, Share and Spend responsibly.