ANN ARBOR, Mich. – Just 5 percent of Americans learn how to manage money before graduating from high school and 18-24 year-olds have become the fastest growing segment  filing for  bankruptcy. Americans, pulled into a recession tied to hopes a housing bubble would enable them to spend greater sums, continue racking up debt faster than savings.

Among parents with children ages 23-28, a recent 2010 Families & Money survey found 41 percent of parents still providing some level of financial support to their children with just 35 percent expecting their grown children to achieve financial independence by age 30. FamilyMint.com empowers kids to take charge of their own finances.

FamilyMint CEO Jeff Eusebio has five kids while his friend, co-founder and President Bob Masterson has nine (14 between them). They quickly saw the value of an online tool that helps kids take charge of their money, improving their behavior while empowering them to take responsibility for and manage their dollars wisely.

Within just a few months of launching FamilyMint.com, the site has picked up more than 3,500 registered users from 50 states.  The firm offers a free version geared towards the kids and managing their money and savings goals along with a premium version with more enhanced and automated features for $24.99 per year.

“We literally see a change in behavior in kids as focusing on setting and achieving goals becomes a natural part of their daily financial lives,’’ Masterson said. “Our kids can accumulate literally hundreds of dollars in their rooms and they always want things. FamilyMint teaches them how to save, budget and plan.  As soon as I heard the idea I thought ‘It’s a no brainer.’ Kids need this.’’

HomeSchool blogger Lori Lynn tried FamilyMint with her kids and wrote, “After years of me preaching, ‘Spend your money wisely.  Don’t buy that junk. Think about where you are spending your money!’ FamilyMint SHOWED the boys exactly all those things in the matter of a few weeks.”

Constantly wanting more than they or their parents can afford doesn’t make any one happy, Eusebio said but rather makes them feel out of control. A child who can use a simple online calculator to figure out precisely how much to save each week to buy a dream toy or gadget quickly takes charge of finances and realizes how simple it can be to achieve goals.

He recalls his 9-year-old asking him “What is interest’’ when he was setting up interest rates for his kids in the tool and being amazed at experiencing the teaching opportunities the tool provides.

A major U.S. bank earlier this year changed its policies regarding debit cards after thousands of young people nationwide used debit cards that racked up large delinquent fees for going pennies over their balances. FamilyMint combines modern technology with old-fashioned lessons like the importance of building a savings cushion and using virtual envelopes to help save money for bigger goals.

The site also offers:

• Parent interface. Creates a parent/banker interface allowing parents to be the banker to their children.
• Kids interfaces. Junior and advanced interfaces create an easy-to-use site they enjoy returning to regularly.
• Allowance automation. Sets up an automated allowance function to manage payments automatically. Parents and kids enjoy all of the benefits of giving allowance with none of the pain.
• Automated interest. Since parents act as their kids’ banker, they are free to set any interest rate they want in order to motivate their kids to save.
• Matching deposits. Helps provide incentives for kids to save more through matching deposits parents can set up.
• Transactions. Makes it simple for children and parents to see exactly where the money is going from and being spent on.
• Goals. Kids can set up as many goals as they choose with guidance on how to achieve them.
• Personalization. Personal photos can be uploaded for user profiles and goals.

For more on FamilyMint or to register, visit:   http://www.familymint.com/

For more on the founders, visit:   http://www.familymint.com/about-us

Follow us on Facebook: http://www.facebook.com/FamilyMint

For more on the 2010 Families and Money survey, visit:  http://www.schwabmoneywise.com/views/families-and-money/2010families-and-money.php

To read about Lori Lynn’s impressions of FamilyMint, visit:  http://homeschoolblogger.com/lorilynn/?p=772357

An allowance is a great means to teach children how to manage money, develop budgeting skills and encourage independence.  By giving an allowance and giving the child the responsibility to pay for the things they want and activities they like to do, it helps them see money is a limited resource and they must budget it wisely.

But an allowance should never be looked at as a salary or something a child is entitled to.  Being part of a family means pitching in around the house and doing ones part to help out and an allowance should not be tied to this.  Certain chores, though, can be assigned above and beyond their daily and weekly duties as a means for your child to  earn extra money.

How much should you give as an allowance?  As a general rule, allowance should be tied to what expenses you want your child to cover, leaving some room for savings and giving.  In our house, we  begin giving an allowance of 50 cents a week when a child turns six, as they are beginning to have a decent grasp of how money is used.  10 percent of their allowance goes towards charity, 30 percent towards college and 20 percent towards long term savings.  The rest is up to them.  They save for toys or games they want to buy, but if they want to get a treat of some kind, they are expected to pay for it themselves.  This gives them the opportunity to see the cause and effect of their spending decisions.

As our children get older,  their responsibility towards money and associated allowance grows along with the expenses for which they are responsible.  For example, extra curricular activities such as Boyscout dues, camping trips and movies are the responsibility of our three older boys.  They enjoy the responsibility of managing their own money and make adjustments to their finances as priorities or unexpected events happen just as we adults do.

In the end, allowance and the responsibility that goes with it is a means of preparing your child for adulthood.

By Mike Morland

According to the National Consumers League, 70-80% of teens will have some type of job during their high school years.  Of those, 50% will work more than 15 hours a week during the school year.  After months of saving, many teens anticipate spending part of their summer traveling with friends.  However, it’s important for teens to plan trips as wisely as they save for them. Whether it’s an overnight camping trip or a week on a coastal beach, smart planning is equally important to financial success.

1.     Travel When Others Don’t. Many teens like the idea of a weekend flight, but according to Rick Seaney of the travel website FareCompare.com, one of the best day to fly is Wednesday. If your teen can avoid traveling on a Sunday, it could save them some major cash. Sunday fliers are often hit with a “peak air traveling surcharge,” which can be up to an additional $30 each way.

2.    Split the Cost. If your teen is planning on staying in a hotel, encourage them to room with friends.  According to a recent Travelocity.com search of the popular Myrtle Beach destination, many hotels can accommodate from one to four occupants without major price fluctuations. If your teen doesn’t mind bunking up, it could save them several hundred dollars.

3.    Take the Bus. If you’re concerned about your teen driving long hours, you’re in luck. One of the newest and best kept traveling secrets is the MegaBus. Since 2006, MegaBus has offered lost cost travel with free Wi-Fi to all its passengers.  According to megabus.com, a ticket from Ann Arbor to Chicago is $15 one way or $30 round trip.

4.    Second Choice isn’t Second Rate. If there’s a place your teen would love to visit, but it’s just too expensive, try a nearby alternative that’s less expensive (because it’s not a tourist trap). Some of the best vacation destinations are the ones less traveled. Advise your teen to use the internet as a tool and do some homework with them on alternative destinations. Plus, any word of mouth recommendations from a reliable source could save you some money over a travel agent.

5.    Set a Budget. As a parent who’s traveled before, express the importance to your teen about setting a budget and sticking closely to it. Help them manage several expense categories including things such as supplies, food, accommodations and even souvenirs. Helping your teen set up an itinerary of what they are doing on what days can help budget planning go more smoothly.

Helping your teen plan their trip can be a challenge. However, with a little advice and guidance now, you are preparing them for a lifetime of smart financial traveling.

By Mike Morland

Teaching a child the importance of giving back to those less fortunate may be one of the most valuable lessons they can learn.

Any parent can attest to their child going through the “mine” stage. It’s human nature from its earliest stages to want comfort and security in their possessions and surroundings. However, as a parent, it’s important to teach your child the significance of giving back.

It’s not always easy to explain to a child how “need” and “want” are two very difference necessities to life. Even though your child may beg and plead that they need that new toy, it’s important they know that even though they want it, they don’t really need it. One of the best ways to encourage giving behavior is by putting it into perspective.

Perhaps your child wants a new, expensive toy. Explain to them that as much as they want the toy, there are children in the world that can’t afford any toys. Offering to buy them a different (and less expensive toy) shows them the importance of not being selfish. Also, propose to your child that together you can buy an inexpensive toy with the difference and donate it to someone less fortune.

This lesson curves selfish behavior into a selfless act. By including your child in the decision to take less in order to give more, it allows them to understand more clearly why they don’t need everything they want.

As your child grows older, lessons such as these can be a springboard into smart financial decisions. Donating old toys, clothing and other household items show the value of items to different people. By teaching your child to be efficient with their belongings, they may be more inspired to make the most of the money they have.

There are many ways a child can get involved and give back as they grow older. Organizations such as the National Humane Society, and Habitat for Humanity to name a couple offer opportunities for your child to get involved, give back and put the world into a better perspective.

Giving back teaches your child the skills of being able to do more with less.  This lesson will roll over into many aspects of their lives, including a true understanding of financial needs and wants.  The better they understand this difference, the more likely they will make smart financial decisions as they get older.

By Annette Kingsbury

My dad has a cute little saying he uses to explain his philosophy of saving money: Pay yourself first.

It’s his simple explanation of how he and my mom, despite raising six kids, managed to save enough money to see themselves comfortably through 20 years of retirement (and counting). “Pay yourself first,” means that money goes into savings for the future first, before it goes into Mom’s or Dad’s (or the kids’) pockets.

Like many of his generation, my dad entered World War II as soon as he was old enough, then returned home after the war to get a job, start a family, and go to college on the GI bill. As soon he was eligible to get into his employer’s investment plan via payroll deduction, he did so.

“Mother and I talked about it once, and we never talked about it again,” he said. “I considered it an emergency fund.”

The fund was occasionally dipped into for major emergencies. But by and large it sat there and grew. Over the years Dad diversified his investments, but rarely took risks.

This philosophy has served him exceedingly well. Though he never could have imagined his employer, General Motors, going bankrupt, he saved enough in other solid investments to stay on an even financial keel.

As the oldest of those six children, I can tell you that it wasn’t always easy. We didn’t take vacations, but there was always food on the table. Though I didn’t know about Dad’s plan as a child, I grew up with an abiding sense of the value of hard work.

Today’s parents can set the same example for their kids, who are bombarded with all sorts of expensive, “must have” electronic gadgets du jour.  No matter how your child earns money, teach her how to save it, if only as a stepping-stone to bigger and better down the road.

How to start a nest egg? Simply start.

By Rebekah Johnson

Everyone remembers their first car.  Loving the freedom of the open road, getting your driver’s license, feeling in control, being behind the wheel by yourself for the first time.  It’s an exciting feeling for the teen in your life, but how much should you spend on a car for your inexperienced driver?  Here are some reasons to think twice before going out and buying your 16-year-old a new car:

1.  New cars depreciate quickly.  Buying a used car could be a better option.  According to Dave Ramsey, most vehicles lose about 60% of their value in the first four years.  Buying a used car is easier on your budget and will help save for more important things (i.e. college) for the future.

2.  Teach responsibility and work ethic by having the teen pay for the car, the insurance, or the gas.  Or a combination of all three.  When your teen has personally invested in their own vehicle, they will be more likely to take better care of it.  This also teaches teens about the importance of budgeting for high-ticket items like an automobile.

3.  Teens are at a much higher rate for car crashes.  In 2008, about 3,500 teens in the United States aged 15–19 were killed and more than 350,000 were treated in emergency departments for injuries suffered in motor-vehicle crashes.  Young people ages 15-24 represent only 14% of the U.S. population, but they account for 30% ($19 billion) of the total costs of motor vehicle injuries among males and 28% ($7 billion) of the total costs of motor vehicle injuries among females (Centers for Disease Control and Prevention).  Even minor accidents can cause insurance rates to skyrocket, so make sure your teen practices safe driving.

Whichever car you purchase, make sure it’s a safe one.  A properly inspected used car can still be very safe, just make sure that the airbags and seatbelts still work.  Have a used car inspected by a reputable dealer or mechanic to make sure it is in proper working order.

Once you’ve found “the” car, look for discounts on car insurance and teach your teen ways to save fuel costs.  And above all, remind your teens to keep their eyes on the road and safe travels!

By Michael Grosvenor

“When it comes to teaching kids about money, the sooner the better” says CNN Money. Early understanding of earning and managing money lays down such an important foundation for your child’s future. The more your child understands money the more conservative with it they will be. The concept is that the more they understand the value of the money they earn and the financial responsibilities that come with life, the more they will carefully pay attention to where the money is going.

A good way to teach your children good spending habits is by involving them in yours.  Whenever I have a big dollar purchase coming up, I research.  Much time is spent comparing features, quality, and of course, prices.  Include your kids in this process on some of your purchases. Show them why you choose this over that, how to compare prices and stick to a budget.

An allowance is another great teaching tool, according to the CNN article. This money can show the impact of the choices they make. “Make it clear to your children what kinds of expenditures the money is for, and that they are expected to save some of it.” Don’t forget to give them some freedom to make their own choices. This will help them learn from poor decisions as well as the value and reward of the good choices they make.

Teaching your child financial responsibility at a young age is not about taking away their childhood, but preparing their mindset for adulthood at a time where kids are most receptive to learning. You will be amazed at the impact this has on the rest of their lives!

Link to: http://money.cnn.com/magazines/moneymag/money101/lesson12/

By Rebekah Johnson

Now, more than ever, there is an incredible amount of pressure on young people to graduate from college.  Employers are demanding an educated workforce that is willing to compete globally.  To give students the best advantage, we want them to attend college – but in a tough economy, one or more parents may have lost a job or taken a severe pay cut.

However, despite the down economy, there are several ways parents and teens can work together to save for college without taking out a second mortgage or losing the house.

1.  Consider community college.  First, if you have a brand new high school graduate, look for local community colleges in your area.  Many community colleges offer courses in a number of disciplines for any major.  This will help the undecided students find their niche, and help those degree-driven students achieve their two years of their bachelor’s degree at nearly a third of the cost.

2.  Apply for scholarships.  Search online, inquire at work, and at your local school.  Fastweb.com is a great site to search for scholarships that your teen may be eligible for.  Many employers have scholarships for their employees’ children or dependents, and most high schools offer scholarships for their graduates.  In addition, most colleges offer scholarships for prospective students based on academic record, involvement in sports, leadership, or other skills.  Even by earning several small scholarships, students can combine them to pay for a majority of their tuition, if not all of it.

3.  Fill out the FAFSA form (www.fafsa.gov).  Completing the form online is the only way to see if your student could be eligible for government financial aid or work study.  It’s a lengthy form, but completely worth the effort for subsidized government loans, grants from the government, or assistance from the academic institution.  Without filling out this information, it is extremely difficult to get the financial help that could help your student go to college.

4.  Get a part-time job.  Sometimes “working your way through college” just works.  By getting a part-time or work study job during college, your student will earn cash to pay bills but also teach time management skills.  Working his way through college will help your student value and appreciate their own investment in their education and future.

The college process is a long one and requires commitment and hard work from both parents and teens.  Easing the financial burden on both parties will make the college years easier and much less stressful.

By Annette Kingsbury

Everyone wants to be “green” these days, but there’s a common perception that environmentally friendly is expensive. It doesn’t have to be that way.

“I have always been frugal and it pairs well with being environmentally conscious,” says my friend Heather.  She’s not just blowing smoke; a stay-at-home mom, she’s recently been searching for work after her husband lost his job. But she won’t give up her environmental bona fides.

“There are certain things I won’t compromise, like quality food,” she says. She’s cooking and baking more now from scratch and skipping unnecessary purchases. “Instead of gym membership this summer, we have county and state park passes and this will be a year for the beaches.  We also plan some bike path adventures and regular attendance to the free park concerts,” she says.

So far, so good. But there’s much more a family can do to be frugal and green, especially when shopping for routine needs. Simplemom.net, a Web site whose goal is to make everyday life less expensive, suggests turning away from single use, disposable products.  Things like paper plates and all the cleaning products so heavily advertised now, such as sheets used for dusting, scrubbing and mopping.

Disposable may be convenient, but it’s not cheap, and it’s certainly not green.  When contemplating packaging, don’t settle for recyclable.  Ask yourself:  Was this made from recycled materials?  Do I really need it? What would Grandma use?

Eating local is another way to be green, according to simple-green-frugal.blogspot.com.  Not only is your food more nutritious because it’s picked at the right time, it also hasn’t been trucked hundreds of miles, using up gas and emitting greenhouse gases.  Local farmers markets are a great way to open up your menu to whatever is in season and try something new.  If you don’t know where your nearest farmers market is, check out localharvest.org.  Then sit back and enjoy truly ripe fruits and vegetables at very competitive prices.

By Michael Grosvenor

It feels great when your kids earn their first paychecks in their coveted summer jobs.  Their first instinct might be to rush out and spend away. But what happens when school starts?  The money is long gone.  The best way to make that money last through the year is to set up a budget.  It’s an easy math problem you can teach your kids to solve.

If they work a job for 3 months and make $1,000 per month, they’ll earn a grand total of $3,000.  To make the $3,000 last all year, simply divide this amount by 12 (the number of months in the year) and that leaves $250 to spend per month.

The most important lesson this teaches is how to live within their means. Teaching this early can avoid many problems down the road. It can be easy for young adults to get into credit card trouble with the “I’ll pay for it later” concept.  If they fail to budget their money, they might spend too freely up front and not have it later to cover their expenses.

In the above example, they know that they have a limit of $250 a month to spend. If there is something else they want and don’t have the money, they will need to wait and save up until they are prepared to pay for it.  If it means missing that Huey Lewis concert this month (don’t laugh, ‘cause I’m going) then that’s a lesson learned in refraining from spending money they don’t have.

How young were you when you started to budget your money? Share your story in our “leave a response” section.