Salon Money | Get them while they're young

T A B L E__T A L K
Who pays for debt brought into a marriage? Discuss solutions to this sticky situation in the Business and Personal Finance area of Table Talk

R E C E N T L Y

Mad about Steve Madden
By Heather Chaplin
Wall Street loves this low-end shoemaker -- and so do fashion-conscious young women
(06/05/98)
Finding the g(ive) spot
By Kevin Kelleher
In the increasingly competitive quest for dollars, charity organizations are looking for ways to find that magic motivational appeal
(05/29/98)
The reluctant capitalist
By Heather Chaplin
Salon's Reluctant Capitalist looks at the knotty problem of what to do when you've won $195 million on the lottery
(05/22/98)
The reluctant capitalist
By Heather Chaplin
From red to green
(05/15/98)
Baby bulls
By Heather Chaplin
Young turks ride high on the booming stock market
(04/15/98)
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Browse the
Money archives

GET THEM WHILE THEY'RE YOUNG | PAGE 1, 2
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Pukelis' opinion is rooted in his childhood. As loving as his parents were, Pukelis says, he felt unprepared for handling his own finances once he left the nest. "My concern, almost paranoia, about money stems from my upbringing," he said. "Dad was always in control of the money and we always went to him and relied on him for almost everything, from a gumball to a college education. No effort was made to teach us about the value of money."
For girls, the situation is often worse. Diane Ealy and Kay Lesh, in finance workshops in Tucson, Ariz., found that women's financial inhibitions went back to their earliest years. Their mothers' absence from the realm of family finances -- coupled with hearing fairy tales like Cinderella -- sent a clear message to girls to take a passive and dependent stance toward money that haunts many in their adult lives.
These are especially common concerns among baby boomer parents. In a survey cited in "A Penny Saved," 91 percent of respondents said they want their children to understand more about finance; yet 77 percent said they didn't know how much their parents made growing up. The paradox is understandable: Boomers are the first generation to confront the transition from lifetime employment and guaranteed retirement income to the age of free-agent workers, mutual funds and private pension plans. As parents, they must prepare their children for this scary new world.

As parents are waking up to their role as monetary mentors, so is the business world. Merrill Lynch is reaching into children's financial lives through its Savelab Web site. Merrill also offers a $2,000 savings bond for the kids who write the best essay on why saving is important.
Stein Roe has set up a Young Investor's Fund to help children learn while they invest. Kennedy, Cabot & Co. postures itself as a child-friendly broker, executing trades of as little as one share. At the Young Americans Bank in Denver, the average depositor is 9 years old. The American Bankers Association Education Foundation has designated April 17 as National Teach Children to Save Day. Meanwhile, both Coca-Cola and Pepsi make piggy banks for children, in what cynics might regard as an exercise in early brand-building. Another piggy bank from Hammacher Schlemmer acts like an ATM machine. And there's a Christian ministry called Money Matters for Kids that tells parents how to educate their children about tithing.

And so on into the realm of overkill -- and the risk of failing to teach one of money's most important lessons, namely, what it can't do. "If you're going to teach your children about money, it's important to teach them about the limits of money," says Hardy, the Muhlenberg College professor. At best, money touches on some of the most important lessons a child learns -- handling responsibilities, giving to others, sharing and the ability to delay gratification that prefigures success in later life. But it can also teach precisely the wrong message.
"Children need to learn that chores are part of the family, not just a way to make money. Otherwise, they can be quite manipulative about money," Hardy says. Adds Godfrey, "If there are financial problems, we need to teach children -- so what? We're still a family."
SALON | June 12, 1998
Kevin Kelleher's last Money feature for Salon was on the new fund-raising techniques employed by charities.




T A B L E__T A L K Who pays for debt brought into a marriage? Discuss solutions to this sticky situation in the Business and Personal Finance area of Table Talk R E C E N T L Y Mad about Steve Madden By Heather Chaplin Wall Street loves this low-end shoemaker -- and so do fashion-conscious young women (06/05/98) Finding the g(ive) spot By Kevin Kelleher In the increasingly competitive quest for dollars, charity organizations are looking for ways to find that magic motivational appeal (05/29/98) The reluctant capitalist By Heather Chaplin Salon's Reluctant Capitalist looks at the knotty problem of what to do when you've won $195 million on the lottery (05/22/98) The reluctant capitalist By Heather Chaplin From red to green (05/15/98) Baby bulls By Heather Chaplin Young turks ride high on the booming stock market (04/15/98) - - - - - - - - - - - - - - - - Browse the Money archives		GET THEM WHILE THEY'RE YOUNG \| PAGE 1, 2 - - - - - - - - - - Pukelis' opinion is rooted in his childhood. As loving as his parents were, Pukelis says, he felt unprepared for handling his own finances once he left the nest. "My concern, almost paranoia, about money stems from my upbringing," he said. "Dad was always in control of the money and we always went to him and relied on him for almost everything, from a gumball to a college education. No effort was made to teach us about the value of money." For girls, the situation is often worse. Diane Ealy and Kay Lesh, in finance workshops in Tucson, Ariz., found that women's financial inhibitions went back to their earliest years. Their mothers' absence from the realm of family finances -- coupled with hearing fairy tales like Cinderella -- sent a clear message to girls to take a passive and dependent stance toward money that haunts many in their adult lives. These are especially common concerns among baby boomer parents. In a survey cited in "A Penny Saved," 91 percent of respondents said they want their children to understand more about finance; yet 77 percent said they didn't know how much their parents made growing up. The paradox is understandable: Boomers are the first generation to confront the transition from lifetime employment and guaranteed retirement income to the age of free-agent workers, mutual funds and private pension plans. As parents, they must prepare their children for this scary new world. As parents are waking up to their role as monetary mentors, so is the business world. Merrill Lynch is reaching into children's financial lives through its Savelab Web site. Merrill also offers a $2,000 savings bond for the kids who write the best essay on why saving is important. Stein Roe has set up a Young Investor's Fund to help children learn while they invest. Kennedy, Cabot & Co. postures itself as a child-friendly broker, executing trades of as little as one share. At the Young Americans Bank in Denver, the average depositor is 9 years old. The American Bankers Association Education Foundation has designated April 17 as National Teach Children to Save Day. Meanwhile, both Coca-Cola and Pepsi make piggy banks for children, in what cynics might regard as an exercise in early brand-building. Another piggy bank from Hammacher Schlemmer acts like an ATM machine. And there's a Christian ministry called Money Matters for Kids that tells parents how to educate their children about tithing. And so on into the realm of overkill -- and the risk of failing to teach one of money's most important lessons, namely, what it can't do. "If you're going to teach your children about money, it's important to teach them about the limits of money," says Hardy, the Muhlenberg College professor. At best, money touches on some of the most important lessons a child learns -- handling responsibilities, giving to others, sharing and the ability to delay gratification that prefigures success in later life. But it can also teach precisely the wrong message. "Children need to learn that chores are part of the family, not just a way to make money. Otherwise, they can be quite manipulative about money," Hardy says. Adds Godfrey, "If there are financial problems, we need to teach children -- so what? We're still a family." SALON \| June 12, 1998 Kevin Kelleher's last Money feature for Salon was on the new fund-raising techniques employed by charities.