Training your kids to “feed the pig”: Teaching money saving skills from day one

Money. It may not be able to buy happiness, but it sure does make your world go ‘round. And it seems, more often than not, that no matter how much of it you bring home, there’s never quite enough.

That’s supposed to be one of the beauties of being a child. It’s a time when bills and other financial responsibilities are a distant thought, if even a thought at all. However, the truth is a little less idealistic, because let’s face it, kids become aware of money and what it can do at a very early age.

The other day, my preschooler saw someone on TV step out onto a balcony. “We need to buy one of those for our house,” she told me. And I realized, like so many parents, that I have a long, hard job ahead of teaching my kids to save and manage money. How to begin?

Well, I started by asking an expert in the money saving business. And I found the perfect financial-education whiz in Jill Castilla, Executive Vice President and Chief Credit Officer of Citizens Bank of Edmond. Here are some tips she gave me that can give any parent a head start on teaching their kids about money, spending, and saving for what they really want.

Money talks. No, I don’t mean you tell your kids to start bribing restaurant hostesses, etc. What I mean is that you need to have some talks about money. Castilla suggests you discuss your own spending habits with your children and explain why you did or didn’t purchase something. If your children are older, educate them about credit cards and how mistakes can have a long-term negative effect. Show them what credit reports look like and what they mean (these days, a credit score can impact everything from getting a job to even purchasing a cell phone). Use whatever personal experiences you can to bring the message home.

Discuss your own spending habits with your children and explain why you did or didn’t purchase something.

Sweeten the pot for your own children by matching the money they put into their savings account.

Open a bank account early (and maybe play a little 401(k) with them). Castilla encourages parents to open bank accounts for their children as soon as possible. That way, when kids receive birthday or other special occasion money, parents can discuss the benefits of putting the money in an account and saving for something bigger versus blowing the money on a toy that a child may not really want (an impulse buy—who does that?). Castilla sweetens the pot for her own children by matching the money they put into their savings account, a strategy that will have kids thinking about investments long before they land that first job!

Lead by example. And last but not least, Castilla emphasized the importance of teaching by example. Whether you’ve always practiced good money management or you need to turn over that proverbial new leaf, it’s never too late to watch your spending and start saving. Thinking through big purchases, resisting the urge to always buy on credit, and setting financial goals is as important for you as it is for your child, and you will establish a pattern of smart-money behavior that your children can model for years to come.

Setting financial goals is as important for you as it is for your child.

For more money education resources, check out the Parent Money Manual from the American Bankers Association or Feed the Pig.

Putting America to work? How 'bout them kids?

I remember my first job. Knowing that I'm female, you may be able to guess what it was. Ding, ding, ding! That' right. Babysitting. And I hated it. I was proficient enough to get called back frequently, but I often found reasons not to go, having decided that whatever I was saving for could not be worth several hours of toddler snot and baby poo.

Man, how my life has changed. :)

But anyway, my point is that kids are going to start thinking about ways to make money early on, especially when they see their friends with cool gadgets and whatnot. Next week, my blog post will cover how you can help your kids learn to save and manage money, but this week, I'm going to feature a few ways those youngsters can get more moola beyond the "Happy Birthday Princess" checks from grandma.

First off--the law. Quit your snoring and sit up. Here's what the federal government and the State of Oklahoma allow:

The Fair Labor Standards Act (FLSA) sets 14 as the minimum age for most non-agricultural work. However, at any age, youth may deliver newspapers; perform in radio, television, movie, or theatrical productions; work in businesses owned by their parents (except in mining, manufacturing or hazardous jobs); and perform babysitting or perform minor chores around a private home. Also, at any age, youth may be employed as homeworkers to gather evergreens and make evergreen wreaths.

Okay, so my little guys are probably not going to be making evergreen wreaths anytime soon (is that for real?), and I haven't had any television agents come calling (and Miley Cyrus really isn't making the case for my kids to have a future in entertainment), so let's talk about some of the top jobs your kids can do BEFORE they reach the magical age of fourteen.

Babysitting and mother's helper. This is probably going to be your child's--especially a girl's (sorry, it is what it is; at the present time, girls still do more babysitting)--best opportunity to make decent money per hour. However, a few things to mention. First of all, he/she needs to set a rate to avoid being taken advantage of by stingy parents (by the way, it is downright despicable to underpay your babysitter, so don't do it!). Also, check into baby certification courses. Oklahoma does not have a minimum age for babysitting, but you know your child and what he/she can handle. If your child is watching your younger kids or someone else's kids, and they are under fourteen, make sure someone close by is available to help them and that they are aware of what to do in an emergency. And starting out as a mother's helper is a great way to get experience for babysitting. (See more babysitting info on an earlier blog post.)

Landscaping etc. Weeding is an excellent source of income for any youngster (and bonus points for getting a hyperactive kid to spend that energy on something useful!). Raking leaves and other groundskeeping activities are good jobs as well. As for anything involving machinery, do your research as to what is legal and go with a "better safe than sorry" approach. I do not want to see a nine-year-old with a chain saw in my neighbor's yard. Just sayin.'

Cleaning. I'm not talking about your twelve-year-old going to people's homes alone and doing a floor-to-ceiling housekeeping. But if an elderly person or overwhelmed mom (or you!) needs a little extra help with household chores, this is an opportunity for your child to not only make money, but to take care of a home--something both girls and boys need to know before heading off into the world.

Neighborhood watch. Hah! You frowned when you read that, didn't you? I don't mean the real neighborhood watch. Instead, I'm referring to opportunities to help neighbors who are out of town feed the cats, clean the litterbox, tame the plants, collect mail, etc. And this is a great way to build strong relationships between your neighbors and kids.

Finally, what this all comes down to is making a parental decision about your children's level of responsibility and maturity. If they will be performing a job outside your home for a neighbor, let them practice it at home. Keep tabs on payment and job satisfaction (both for your kid and the employer), and not only will your child build up that bank account, but they will learn skills early on that will help them be the kind of people (and workers!) you want them to be.

Calling Mary Poppins – Three necessities for finding your next babysitter

Your best friend calls and says it’s time for a girls' night. Your husband has chanced upon not-to-be-missed Thunder playoff tickets. Your mom/dad/aunt/uncle/grandparent needs you to hang out at the hospital while they undergo a procedure. Your kid has just spilled milk on the floor for the FOURTH time today, and you are one crushed animal cracker away from cracked.

It’s time for a babysitter.

Unlike Mary Poppins, who will float down to your door with an umbrella, smile, and a bag full of junk for your next garage sale, most babysitters—the good ones—are hard to come by, with parents guarding their sitter’s contact info better than their own social security numbers.

But you don’t have to rely on word of mouth or your teenage neighbor with pink hair to get you some peace and quiet. You just need a little help. So here are three checkpoints for ensuring your sitter is more Mary, not Scary, Poppins.

1. A clear background check. You can find sitters who have already had background checks on services such as caregiver.com and sittercity.com. In addition, the Edmond branch of College Nannies and Tutors contracts with a nationally certified criminal screening company that runs courthouse records checks on all of their applicants. Better safe than sorry, although they do have some crazy fun nanny cams these days.
 

2. Training. The second item on the list is concerned with how a sitter handles emergencies. Ask your sitter if he or she has received any babysitting, CPR, or first aid courses. If not, and you really like the sitter, let them know that the American Red Cross provides babysitting education online, and that CPR and first aid courses are offered at most hospitals. Then make it a condition for employment, especially if you’re looking for a long-term candidate.

3. Personality. Finally, a babysitter should love what they do, and they should enjoy playing with your kids, whatever age that is. Texting, surfing the web, and talking on the phone aren’t acceptable behavior, and you’ll be able to tell, by talking to your kiddos (if they're old enough), whether the sitter was interactive and fun. Of course, this usually takes a trial run, but don’t be afraid to lay down ground rules. Remember, teenagers need money. If you pay a fair price (and you’ll have to ask around for the going rate), most sitters will try to meet your expectations.

And when you do finally find the right fit, there’s nothing better than the feeling of hitting babysitter gold. Then it’s just a matter of keeping them on speed-dial and not giving their names to competitors—ahem—I mean, other parents.