Greetings!
Earlier this week, 9 News asked me to give viewers advice on how to raise money-smart kids. If you didn't catch the interview, here are a few of the highlights from our conversation. First, no matter how old they are, your kids will come to you for advice. Second, nothing you can tell them is too basic. Third, a little information goes a long way.
The 3 big goals are to teach your kids to:
1. Save for your future
2. Spend what you need
3. Give to someone or something you're passionate about
A few ideas for ways to teach them these values:
Give them an allowance.
- Set reasonable timeframes. If they have to wait more than a week to be paid it might as well be an eternity.
- How much? This is up to mom/dad. Maybe your age in dollars per week; maybe ½ the age per week. Especially for little ones, the amount is almost irrelevant if they learn a little work ethic.
- Tie allowance to chores.
Create a Savings Account
- Let them watch it grow, even slowly.
- Having money on the bank allows them to save toward a goal and dream about possibilities.
Invest in the Stock Market
- Does not need to be real money. "Play money" can also teach kids.
- Let them choose stocks they know, "Disney", "Hersheys" etc.
- Follow stock performance on a web site like Yahoo Finance or Google Finance or, as many kids today are doing, the stockmarketgame.com.
Encourage Teens to Get a Job
- It builds self-esteem and respect for money, others and themselves.
Credit Cards
- If you give your child a credit card, be ready to take it back!
- They will spend a lot easier than they will save.
- High school, college, it doesn't matter - they need to earn it to respect it.
Model the Way with Your Good Behavior
- Pick your words carefully - "We're broke!" or "We're rich!" is sometimes taken literally by kids, so choose your language wisely.
- Save your money.
- Create a financial statement and walk them through it.
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| Weekly Economic Update | |
FACEBOOK DEBUT DIVERTS ATTENTION FROM EUROPE Facebook's IPO set a new record for a stock debut Friday - volume surpassed 578 million shares. The gain was small: shares closed at $38.23 at the end of regular trading, up 0.61% from the initial $38 offering price. Meanwhile, the S&P 500 ended the trading week below 1,300, a casualty of renewed pessimism over the future of the euro and debt burdens in Spain and Greece. Greece dissolved its parliament Friday and set new elections for June, increasing global fears that it will exit the euro. Moody's issued downgrades for 16 Spanish banks on Thursday, and one of them was Banco Santander - the biggest bank in the Eurozone. (1,2)
CPI IS FLAT FOR APRIL
According to the Commerce Department, April brought no change in the Consumer Price Index and only a 0.1% advance in retail sales. Annualized consumer inflation was at 2.3% last month, the lowest in 14 months. Core CPI was up 0.2% in April. (3)
CONFERENCE BOARD LEI DECLINES
The private research group's monthly index of leading economic indicators retreated 0.1% for April after a 0.3% March gain. On the upside, the index has risen 1.8% in the past six months compared to 0.1% in the six months prior. (4)
HOUSING STARTS RISE 2.6% IN APRIL Homebuilders broke ground on 717,000 homes in April. Single-family construction starts were up 2.3% from March levels. (5)
HEADWINDS SWEEP THROUGH WALL STREET
Facebook frenzy notwithstanding, the market had it rough last week. The major index performance during May 14-18: S&P 500, -4.30% to 1,295.22; DJIA, -3.52% to 12,369.38; NASDAQ, -5.28% to 2,778.79. The end-of-day yield on the 10-year Treasury was 1.69% last Thursday, near the all-time intraday low of 1.67%.(1,6,7)
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| Market Summary |
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% Change |
Y-T-D |
1Yr Chg |
5-Year Avg | |
DJIA |
+1.24 |
-1.52 |
-1.75 | |
NASDAQ |
+6.67 |
-1.29 |
+1.72 | |
S&P 500 |
+2.99 |
-3.39 |
-2.99 |
(Source: msn.money.com, bigcharts.com, treasury.gov, treasurydirect.gov - 5/18/12). Past performance is no guarantee of future results. Indices are unmanaged, and investors cannot invest in them directly. |
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Create a beautiful week!
Karl Frank, MBA, MSF
Certified Financial Planner (R)
A & I Financial Services LLC
303.690.5070
Citations:
1 - www.cnbc.com/id/47474749 [5/18/12]
2 - money.msn.com/market-news/post.aspx?post=15dbd105-1ce5-4661-bb8d-c81baa7700e5 [5/18/12]
3 - online.wsj.com/article/SB100014240527023041
92704577405853805485804.html [5/15/12]
4 - articles.marketwatch.com/2012-05-17/economy/31737721_1_consumer-goods-and-materials-economic-indicators-negative-contributions [5/18/12]
5 - thehill.com/blogs/on-the-money/1091-housing/227711-builders-start-construction-on-more-homes-in-april [5/16/12]
6 - www.cnbc.com/id/47480281 [5/18/12
Securities offered through Geneos Wealth Management, Inc., member FINRA/SIPC. Investment advisory services offered through A & I Financial Services LLC, registered investment advisor. |
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| Words for Thought |
"Pleasure in the job puts perfection in the work."
Aristotle |
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Riddle of the Week
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You need to park a car for the weekend. You find a parking space marked "2-Hour Parking M-F, 8am-6pm" with no other restrictions. You call the city and find that overnight parking is allowed on this block. So, what is the maximum amount of time you can leave your car in this space without getting a ticket?
Last week's riddle:
We know that a seahorse isn't a horse, and we know that a silverfish isn't a fish. For that matter, a snakehead isn't a snake - but what is it?
Last week's answer:
A predatory fish found in both Asia and Africa. |
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Karl Frank was interviewed by 9News on March 28th, 2012 regarding "3 Things You Should Do if You Win the Mega Millions Lottery". | |
Click Here to View Video
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Karl Frank In Investment Advisor Magazine |
 | | Investment Advisor - November 2011 |
Investment Advisor Magazine's November 2011 edition features Karl Frank. In the article "Never Satisfied," John Sullivan writes: Passion born of tragedy drives Karl Frank to do all he can to help business owners ensure a legacy for loved ones and heirs. Industrial age publisher and philanthropist Frederick Bonfils said there is no hope for the satisfied man. If that's the case, Karl Frank is full of hope.
"I'm never satisfied," Frank says matter-of-factly when asked about his advisory firm
.....Read More. |
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