Posts for March 2011
Encourage Entrepreneurism Early
FamilyMint makes it easy and fun for kids to set goals and save the money to achieve them. With the money from gifts, allowances, etc., kids have the necessary funds to practice financial planning and management. But earning money is vital to a sound financial future, so we need to help kids get in touch with their inner entrepreneur as early as possible.
Brainstorm “business” ideas with your kids; write it all down no matter how nutty or age inappropriate the ideas may be. Even though the list will eventually be whittled down to what is doable, it’s fun and gets them thinking creatively. Once you have settled on an idea, have a strategy session to build their business plan. Who are their customers? What costs are associated with the business? How much can they reasonably expect to charge? What can they do to set themselves apart from their competition? How will they get the word out? How much time can they devote to the business? If others are involved, how will profits be split up?
Be sure to point out the concept of continuous improvement; that successful businesses grow because they are always looking for ways to improve. And don’t forget to stress that for one reason or another, not all business ideas work out, but the key is to learn from experience, pull up your socks and keep following your dreams.
Some ideas for enterprising kids include:
- Selling toys that are no longer played with. My nephews do this on eBay, with parental supervision, and have become experts at it. If you or your kids aren’t up for that, an old fashioned yard sale is always a hit, and good quality toys are snapped up quickly.
- Car washing. For tween and early teens, this can be very profitable. Our son and some neighbor boys set up a car wash business and made hundreds of dollars. They did it at the neighbor’s house because it had more passing cars, bought car wash soap and hosed and buffed up a storm. They made posters touting their dedication – noting what they were saving for (which escapes me now) and that washes were free, but donations were gladly accepted. Only one person took the free wash!
- Lemonade stand. No getting around it; this is a tried and true old standby. But what might make it even better? Buy one, get one; choice of lemonade or iced tea – or an Arnie Palmer (half and half). Challenge your kids to break the mold!
- Babysitting for teens and older tweens and mother’s helper for younger kids.
For today’s kids the possibilities are endless. Just jump on the internet and search away. As long as it’s age appropriate and safe, earning money builds self-confidence and decision-making abilities, and moves kids along the path to adulthood. Share your kid job ideas with us!
Copyright Encourage Entrepreneurism Early © 2011. All rights reserved
Secrets of the Dollar Bill
By Bob Masterson
On the back of the O
ne Dollar bill, you will see two circles. Together, they comprise the Great Seal of the United States of America. The First Continental Congress requested that Benjamin Franklin and a group of men come up with a Seal. It took four years to accomplish this task and two years to get it approved.
Let’s start off with the circle encapsulating the pyramid. The Latin above the pyramid, ANNUIT COEPTIS, means ‘God has Favored our undertaking’, and the Latin below the 
pyramid, NOVUS ORDO SECLORUM, means ‘a new order has begun.’
Notice the face is lighted, and the western side is dark. Our Country was just beginning. Our Country had not begun to explore the west or decided what we could do for Western Civilization. The Pyramid is uncapped, again signifying that we were not even close to being finished. Inside the capstone you have the all-seeing eye, an ancient symbol for divinity.
The other circle contains an Eagle, our national bird. Above the Eagle you have thirteen stars, representing the thirteen original colonies. They say that the number 13 is an unlucky number. You will never see a room numbered 13, or any hotels or motels with a 13th floor. But think about these:
13 Original Signer
s of the Declaration Of Independence
13 Strips on our flag
13 Steps on the Pyramid
13 Letters in ‘Annuit Coeptis’
13 Letters in ‘E Pluribus Unum’
13 Stars above the Eagle
13 Bars on the Eagles shield
13 Leaves on the olive branch
13 Fruits on the branches
13 Arrows in the Eagles talons
The first dollar bill also referred to as note or legal tender was issued by the Federal Government in 1862. But that dollar didn’t have George Washington’s portrait on it. The first dollar had the Secretary of the Treasury Salmon P. Chase’s portrait. George was not put on the bill until seven years later in 1869.
Of all the notes printed by by the Bureau of Engraving and Printing, the $1 note makes up about 45% of currency production and has an average life of under 4 years compared to a $100 bill that can last over 8 years.
You can find many more interesting facts about money at the U.S. Department of the Treasury.
Thanks to Genisys Credit Union for providing us the information on the seals and the US Treasury for the remaining facts.
Copyright Secrets of the Dollar Bill © 2011. All rights reserved
A Budget is a Budget – Except When It’s a Spending Plan
By Jayne Berkaw
According to www.word-origins.com/, a “budget” was originally an Old French bouge, or leather bag. “The word’s financial connotations arose in the 18th century; the original notion being that the government minister concerned with treasury affairs opened his budget, or wallet, to reveal what fiscal measures he had in mind.” Today, depending upon which site you refer to; it’s simply a financial plan, a plan of allotment, an itemized estimate, etc.
One of our earlier blog responders suggested that “budget” has negative connotations these days, so he prefers “spending plan.” He suggests that this indicates that the planner is in control of his or her own financial destiny. I agree that “budget” drops with a thud into the pits of many of our stomachs, so I’m adopting his view. Down with budgeting; up with spending plans!
No matter what you call it, though, your kids need to know how to do it. Start by giving them everyday examples of what a dollar (or two or ten) can buy. Using different amounts, explain how many or few items like candy bars, pencils, books, movie rentals, etc., can be purchased with various (small) amounts of money. Increase the amounts and sizes of your examples over time. Once is not enough on this lesson. Do it a lot, maybe making it into a guessing game to keep it fun and interesting.
Then help them come up with their own spending plan – a written account of their “income” (allowance, gifts to them, earnings…) and their “expenses” (donations, gifts for others, long-term savings for larger ticket items, and short-term savings for weekend or after-school fun…). FamilyMint is an amazing resource for teaching kids financial planning and goal setting in the interactive, online world that they will operate throughout their lifetimes.
We help our college-going son with this process each year as he figures out what he’ll need for apartment rental, food, books, clothes, fun…and savings. As he’s gotten older, more complex topics such as handling credit and debit cards, car payments and other debt issues have been added, along with where the money will come from to cover all of these expenses.
No matter how old you are, no matter how much money you have, a spending plan is your way of assuming control of your life. Do it for yourself and, more importantly, teach it to your children.
Copyright A Budget is a Budget – Except When It’s a Spending Plan © 2011. All rights reserved
A Scary Thought – And How I Fixed It
By Jeff Eusebio
The biggest money lesson I am passing along to my kids is how I act on a daily basis.
This thought used to strike a bit of te
rror in me, especially when I saw how some of my kids’ money habits were turning out. They were watching and listening and forming their own habits unconsciously by what they were seeing me do every day. If I would impulsively purchase something because a deal was “too amazing to pass up” (and I love a good deal!), I would start to see that infectious and impulsive behavior come out in some of them. They look where I look, they act how I act, they save how I save, and they buy how I buy.
Some recent reader comments we’ve received have been along the lines of “my kids are too young to learn about money management… they really don’t have an interest yet… maybe when they are older”. The reality is it’s hardest to start when they are older. Wait until they are teens and most of their money habits will already be formed. It’s possible to change these habits of course, but it requires an even higher level of discipline, consistency, and planning on behalf of the parent or teacher. If they are old enough to count, they are old enough to start learning the basics.
FamilyMint helped me as a parent to be that good example for my kids. The FamilyMint app became a third party resource that helped me teach my kids the basics by forming new daily habits. With goal setting being front and center, my kids were quickly creating new goals and saving for them rather than asking me if they could have it “now”. It was instantly able to help them save along the way using the Matching feature to match deposits “dollar for dollar”, $.50 on the dollar, or any variation I’d like. The whining about “I want this, and I need that” also stopped right away once I redirected them to start setting and working toward their own goals.
Setting and working to achieve financial goals also inherently teaches the concepts of delayed gratification, prioritization, and self-confidence once the goals are reached. Make this the natural way that your kids manage their money and goals on a daily basis and so much will take care of itself.
Another amazing thing happened; the more I focused on forming these good behaviors and habits in my kids, the more I started to take them on as my own habits and behaviors. There are so many easy lessons that can be taught when kids are just old enough to count — and both kids and parents will benefit.
The good news is those scary habits that I mentioned earlier are almost gone now from my kids. Part of it is changing how they think about their own money by the habitual processes built into FamilyMint, but a good dose of it was me picking up these habits myself and making them my own.
Copyright A Scary Thought – And How I Fixed It © 2011. All rights reserved