The Accidental Savings Plan

I have accidentally discovered a brand new way to get my 12 year old to save his money. Pay him in BIG bills! Sounds crazy but it has worked. He has a $50 bill that he refuses to part with. It all started with a visit to his grandparent’s house.

from Flickr.com

One of the highlights of summer time for my kids is getting to spend time with their grandparents. They play Scrabble, build marvelous things with my Dad and generally get wonderfully spoiled for a week. In the midst of all the fun, my parents have discovered that my kids will also do plenty of summer chores for them. Things that my parents can’t (or don’t) want to do, such as detailing cars, washing windows and painting benches have become specialties for my kids! Grandparents tend to pay pretty darn well too.

This past summer, my 12 year old accomplished several of the big tasks for my parents. They paid him $50 and gave him a brand new, crisp $50 bill. He still has it and is determined to keep it for a very long time. There have been two instances where he has thought about buying a toy or game but has opted to save his money because he does not want to part his cash!

The desire to hang on to that $50 bill has caused him to analyze and critique his spending habits.  He really thinks about whether an item is "worth it or not".  

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Toys Sales and the Recession

By Photos8.org

Recession.  Foreclosure.  Bankrupty.  Debt.  The past few years have been full of stories about the harsh realities of the economy.  I read post after post each week from folks who are budgeting everyday to reduce their debt and improve their economic status.  Imagine my surprise last week when I ran across an article by Jason at Frugal Dad.com in which he shares statistics about the toy industry in the United States.  It seems that the toy sales in the US have risen during the recession.

Take a look at this graphic image below that Jason put together.  Some of the stats are amazing.  The most intriguing to me are:

• Less than 4% of the world's children live in the United States but we buy more than 40% of the toys.
• The amount of money spent per child on toys in the United States is $280 per year.
• Toy sales have increased by 2% during the recession while the amount spent in supermarkets has decreased by .5%.

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Book Review: Clark Smart Parents, Clark Smart Kids

Clark Howard is a nationally recognized radio-show host and bestselling book author.  He is generally regarded as a money-saving expert and his motto is “Save More, Spend Less and Avoid Getting Ripped Off.”  Clark is also a father of three and combined his money savvy skills with his parenting experience to create Clark Smart Parents, Clark Smart Kids.  This book was originally published in 2005 but his advice and thoughts are timeless for any parent who is concerned with teaching their child money management skills.

The opening sentence conveys the theme of the book.  “Teaching young children about money produces a trifecta of benefits:  it helps them in school, it helps them with values, and it helps you save money.”

Clark Smart Parents, Clark Smart Kids is divided into sections by age:  kids, teens, adult children and your parents.  There is also a section with worksheets, activities and resources.  For the purposes of this blog, I am only going to share with you the highlights of the kids and teens sections.

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Pam's Picks: Financial Literacy Lessons from Parents, Kids and Baseball Players

Each week, I spend a lot of time reading new articles and blogs about kids, teens, money and financial literacy.  I'll even pop over to YouTube and see what's going on over there. In "Pam's Picks", I will share some great articles and videos with you.


"Kids Learn a Giant Baseball Financial Lesson" by Stephanie Lee from the San Francisco Chronicle
My  kids are huge baseball fans so when I saw an article about baseball and financial literacy, it definitely caught my attention. Visa, along with some help from the San Francisco Giants, recently hosted a money management workshop on the baseball field before a major league game.  Current and former Giants players "pitched financial questions" to the kids and for every correct answer, the kids got to advance a base.  What a marvelous way to make financial literacy fun and informative.  Kudos to the Visa Corporation and the San Francisco Giants!  Read the article...


Loan and Learn by Brian Page, guest blogger on www.americasaves.org
Brian Page, an awarding winning financial literacy teacher and creator of the Awesome Island Game, shares his thoughts on teaching loans and debts to his own son.  This is a perfect example of making financial literacy topics relevant and age appropriate.  Read the article...

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"Don't Buy Stuff" from SNL

Let's kick off the week with a laugh!  Here is a classic funny money moment from Saturday Night Live.  And...wrapped up in the humor are several great money lessons.



Video clip from www.hulu.com

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Getting Teens to Determine their Net Worth

As our kids have gotten older and are well into their teens, we have noticed that their money management needs have grown and changed also.  They are earning larger amounts of money, saving for larger goals and juggling cash, credit with us and multiple gift cards.  Throw in the occasional check from Grandma and the chances of items getting lost, forgotten or spent on impulse grow tremendously.  Our teens have moved beyond the piggy bank or simple allowance systems.  However, they aren’t ready for credit cards or online banking.

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How to Get Teens to Save Money

Real Items Teens are Saving For

Many teens that are using MoneyTrail are saving for specific items or goals.   Getting teens to save money can sometimes be a challenge.  However, it is a skill that can be learned with patience and practice. 

Four Key Points to Get Teens to Save:

1. Help them set a specific goal.  Whether it is a short term savings goal (cell phone, iPod) or a long term savings goal (car, college), having a specific goal will keep the teen focused and can reduce impulse purchases.
2.  Help them figure out how to achieve the goal.  Talk to your teen about how he is going to get the money.  Is he saving allowance for a long time or is he going to get a job?  What kind of job?
3. Give them an organized system for keeping track of their progress.  Details, ideas and amounts can be easily forgotten or pushed aside after time goes by.  MoneyTrail provides this organized, consistent system for teens and parents.  Customized accounts can help your teen meet his savings goal.

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