[...]... 1 DOLLARS & SENSE FOR KIDS a say, “Okay, and go ahead and use our mower and gas.” b hire a neighbor’s kid to do your lawn c tell her to forget it because mowing your lawn is her job d say, “Use our mower and pay for the gas you use We’ll pay you half of what you charge neighbors.” $50 for your son’s sneakers Now he wants a pair of $200 inflatable high-tops You: 4 You usually pay a chip in the $50, and. .. child would get and what their financial responsibilities would be We had already decided 9 DOLLARS & SENSE FOR KIDS the kids were due for a raise But how big? As a starting point, we used average allowances as reported by the Nickelodeon/Yankelovich Youth Monitor survey At the time, the average for 14- and 15year-olds was roughly $9 per week, and we thought that made DEAR DR TIGHTWAD sense for John But... before purchasing expensive gifts for the kids 12 Your daughter receives a $20 birthday check in the mail from her grandparents You: a let her spend it as she wants—it’s a gift b deposit the check in the bank for your daughter c tell your daughter to save $5 and let her spend the rest d call Grandma and tell her $20 doesn’t buy much nowadays 3 DOLLARS & SENSE FOR KIDS 13 You bought your 16-year-old... athletes in general are paid more than teachers But they had a glimmer of understanding about why that is: “Entertainment,” said Andrea ON JOBS ON RELATIVES When the kids want something that 23 DOLLARS & SENSE FOR KIDS they can’t afford and their parents won’t spring for, they have no qualms about appealing to other family members Grandparents are considered a particularly soft touch “I’m into really baggy... hardly bought myself anything I’d rather spend on her,” one parent told Forbes magazine in an article titled “Babies As Dolls,” about the booming market for infant clothing and equipment Said another parent, “My kids have tons of stuff, but if they want something I just don’t know how 15 DOLLARS & SENSE FOR KIDS to say no.” And these kids are barely old enough to ask a question Imagine the scene when they... papers and collect fees d warn him that he’s likely to lose his job and income, and then allow him to do so 10 You’re standing in a toy store and your son is insisting that he needs a $60 video game You: a fork over the cash to avoid a scene b fork over the cash but tell him next time he’ll have to pay part of the bill c don’t fork over the cash, and otherwise proceed as in step b d proceed as in c, and. .. Enjoy your time together, and bon appetit down a list of expenses appropriate for kids their age: for example, movie tickets (and popcorn), rounds of miniature golf, after-school snacks, and extra caps and goggles during the swim season (they belong to a swim team) The older two would have to buy birthday gifts for their friends, as well as tickets to school football games and dances If they ran short... some measurable results I’ve asked the kids to give me a little notice before they write a check so I can have cash on hand, and I try to keep small bills—ones, fives and tens—in my wallet As for my own faulty memory—I still forget to credit the kids allowance on the first of the month They tease me, but my memory lapses aren’t as big a bone of contention because the kids usually don’t run out of money... example, by turning everyday 13 DOLLARS & SENSE FOR KIDS encounters with cash machines into mini lessons on money management You’ll also find guidance on how to help your kids cope with the economy at large by holding down a job or starting a business of their own You’ll hear from the people who study kids and money, as well as the real experts out there in the trenches—parents and kids themselves You’ll get... (they spend plenty) And for the record, I am not a tightwad Chapter One The Perils of Being Dr Tightwad 7 DOLLARS & SENSE FOR KIDS Actually, I tell people, all the advice I give has been used successfully by some parent—though not necessarily by me Writing about children and money has made me more conscious of the subject, but, like any family, we’ve had our successes and failures For example, once when . need to know about money and how to tell them Kids Sense Dollars & for Dollars & Sense for Kids Dollars & Sense for Kids What they need to know about money and how to tell them JANET. money and how to tell them/Janet Bodnar p. cm. Includes index. ISBN 0-93872-1-67-4 (paperback) 1. Children Finance, Personal. 2. Saving and investment. I. Title. II. Title: Dollars and sense for kids. HG179.B5669. Personal Finance Magazine x DOLLARS & SENSE FOR KIDS arm up your parental reflexes with these 20 kids -and- money situa- tions—common experiences, at least in principle, for most parents. Once you’ve