But he's not alone. Our college freshman, whom I'll call Kevin, made some pretty good money this summer and he does watch his bank account. We said, "hey, contribute some of your cash into your mutual fund."
"Sure," he said. However, he was stopping at Jamba Juice for a $4.00 Peach/Mango money-draining drink about three or four times a week.
And, it's so easy to find a Starbucks and toss away $3.50 to $4.00 for a caffeine-calorie-laden-double-mocha-frappa-tasty-whipped cream-toss-away-your-loose-dollars-in-your-wallet-and-quarters-in-the-tip-jar!
A week before college started at Azusa Pacific University I told him to automatically debit his checking account so $25 a month can go into the mutual fund we started for him.
Silence.
I caught him at another moment and said, "hey, all we need is a voided check from your banking account."
He asked, "how do I void a check?" I explained how easy it was.
"Okay," he said and then went on his way.
We helped him move into the dorm and I brought it up one more time . . . but I could see he wasn't going to respond. He was tense over getting his classes selected and he had to make a decision about other activities and programs on campus. So I dropped the subject and decided to keep it dropped until the right time.
My wife did mention it last Sunday when he was home and he seemed open to the idea. And he also seemed open to meeting with our financial advisor.
I felt relieved.
But I knew enough not to press him or else I would irritate, then alienate, him.
I also reminded myself that I started saving and investing about a year after graduating from college.
But we also provided him with a good foundation when he was younger.
We taught him and the other kids about credit card interest and compounding interest.
He's observed how much money my wife has saved each month by using grocery coupons and shopping during peak sales . . . and coming home with really nice outfits.
He's seen how we have spent money for fun with the family even though we've been careful to not go into debt we can't control. So we haven't been frugal freaks! We've lived a balanced life-style, in my opinion.
I figure he can still learn by our example. But I know enough as a parent to let him learn from real-life situations, too.
Here are my thoughts on helping your kids learn about money. And please let me know if you've got ideas that have worked. I'll post it here and link to your blog or web site.
#1 Introduce your kids to www.Investopedia.com
There are great tutorials for investing for all stages of life.
#2 Teach your kids about credit card interest and the dangers of running balances year in and year out. Even if you're debt, let them know what your plan is on getting out of debt. Make it a family project.
#3 Choose a favorite charity to donate money as a family. Set up a jar or have some other collection box. It can teach your kids how money can be used for good.
#4 Show your kids the power of compound interest. There are plenty of calculators available on the internet to show them if they start with $100 or $1,000 how much their money will accumulate over a period of 5, 10, 15 years or more.
#5 Make sure you're setting an example. Let them know if you need to be more frugal - or less frugal for some people. Set aside an envelope or other jar to save up for costly items like sporting events.
If you're interested in adoption issues, by the way, read this article I wrote on being an adoptive family.
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