Author Topic: Money Smart Daughers (Re: MSN Money Article)  (Read 2188 times)

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mjmac

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Money Smart Daughers (Re: MSN Money Article)
« on: July 12, 2012, 09:51:16 AM »
Thought i would forward along a great article a friend sent me. (Re: Money Smart Daughters)
http://money.msn.com/business-news/article.aspx?feed=OBR&Date=20120710&ID=15314128&industry=IND_BANKING&isub=

I'm curious what you guys think about the last part of that article --> Rethink the Birthday and the Party.  While I'm all for teaching kids to save...but really?!  (I get the fact that they are probably referring to the HUGE birthday parties....so probably more of a 'renting out the local jump house for 30 kids..versus having kids over for cake and ice cream)

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Re: Money Smart Daughers (Re: MSN Money Article)
« Reply #1 on: July 12, 2012, 10:15:49 AM »
Hi Mark,

Thanks for sharing.  A very useful article not only limited to daughters obviously.  I thought this idea was a bit rough though.

What to do for the birthday girl who asks for makeup, the latest boots or a spa party?

Ignore her.


Ouch?

mjmac

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Re: Money Smart Daughers (Re: MSN Money Article)
« Reply #2 on: July 12, 2012, 10:26:01 AM »
@itsallbs - i hear ya, i thought the same thing.  It borderlines valuing the $$ over the whole experience of being a kid.  There ARE limits on what i will give my kids financially...but to instill into a small one the process of always balancing 'money in the bank' over 'living life'...just hard to swallow.

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Re: Money Smart Daughers (Re: MSN Money Article)
« Reply #3 on: July 12, 2012, 10:59:55 AM »
I don't know where these girls and boys live (sounds like Beverly Hills) but where we live, there are no "spa parties".  LOL  I teach my kids to save, but they save until they want something.  We don't buy our kids everything.  We teach them that if they want something then they need to work to earn the money to get it. 


We do buy them gifts that they want for their birthdays, but when it's not their birthday they need to buy it on their own.  Of course I tell them that's it's great if they save their money because they will need it and more of it when they get older.  LOL

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Offline Quagmire

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Re: Money Smart Daughers (Re: MSN Money Article)
« Reply #4 on: July 12, 2012, 02:43:07 PM »
I've been off the boards for a while-very busy at home.  But I sit here today unable to do much because of the weather and I logged back on here.  I miss it.

I waited too long to start to try and understand money-at least from the economic and investing aspect.  But I'm trying to catch up. Reading the article you posted led me to go hunt in my history for an article I read a few days ago.  Here it is: http://www.fool.co.uk/10steps/step9.aspx

I follow a lot of the stories from the Motley Fool, not just on their website (actually, almost never directly from their website), but I am constantly reading articles from their official twitter feeds as well as those of some of their analysts.  It's really good info.  I'm trying to make smart decisions for my kids so that they have some decent savings when they leave the nest to go out on their own.

I initially had regular bank savings accounts for both of the kids, but after some of the reading I've done, I decided to get them investing.  Most investment banks will let you open a "custodial" account for your kids with a small balance.  I did this for my son, and moved all his money there (all the $ he gets from birthday cards and stuff).  He didn't have a lot, so I was only able to get him a few shares.  The above article mentions an index fund-which I might do in the future for him.  But for now, I've got him a few shares of Waste Management.  I figure it's a nice safe company, and it yields roughly 4% dividend, which is far more than the <1% he was getting at the bank savings account.  Of course, the value of the shares is down a few points since i bought them, so---meh.

But one of the other things in the article that you posted made me realize something: the disparity between my son's gifts and my daughter's.  I don't keep tabs of who sends what and how much, and I've always kept their money in their own accounts-never my own.  But my daughter hasn't received the same amount of money in gifts as my son-even accounting for the difference in age.  How should I handle this?  Should I match what my son receives on his birthdays, keeping them equal?  I don't want to perpetuate society's view that women are somehow worth less than men, just as I don't ever want anyone to tell my daughter she "can't do" something simply because of her gender.  I don't think it's intentional malice on the part of relatives that send gift cards for my kids, as I don't think they keep track of what they send (I know I don't), but I worry about what she'll think if she gets to 18 years old and only has a small fraction of what he's been able to save.

mjmac

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Re: Money Smart Daughers (Re: MSN Money Article)
« Reply #5 on: July 12, 2012, 09:46:22 PM »
@Quagmire - thanks for your reply on two notes.  First, I really liked the link from Motley...put's the whole concept of 'time' in perspective and why starting early is a must.  Secondly...your point about what differences in $$ your kids have received.  I asked my wife...i said, "Hypothetically, have you noticed if Nathan (our first born) and Emma (our second) have had similar balances in their respective savings accounts?"  While we didn't think much of it...the realization was that the only money we've put in to date was their birthday and baptism....he's in the plus by a reasonable amount more. Soooo...i think it's fair to say that either A.) We've met a whole lot more people in a matter of 19 months or B.) People have given significantly less to our daughter....which is ok too (could be circumstances that drove that)..but i'm with you...thinking we may balance out all kiddos accounts (not penny-to-penny)..but enough to make sure that any one child is not significantly ahead.  (I think another thing to consider is that if you balance them out now (early age)..could it have just been your son being the 1st born and excitement generated a bit more generosity. (Maybe leveling now won't require leveling later?)

What are your thoughts on having a savings account for your kids versus putting that money into a 529 account?  (My gut says...it's truly not MY money to take any risk with...even if very conservative...so i'm more inclined to just leave it in a standard savings account)

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Re: Money Smart Daughers (Re: MSN Money Article)
« Reply #6 on: July 13, 2012, 10:57:40 PM »
That could very well be with regards to my son being the first.  He was the first grandkid for my parents.  The fifth for my wife's.

I think I am going to do that in the future.  On birthdays and whatnot, I will match each kid's gifts in the other's account.

I feel you on the risk with investing.  And like I said, I am down a few points currently in my son's few shares.  BUT, with most banks (even online) paying so little in savings account interest rates, I also think about the effect of inflation eroding the value of their money.  So, with some dividend stocks paying 4+%, (and having that reinvested for compounding), I figured a safe conservative company was one of the best ways to go.

I do think that after I finally finish paying off my student loans late this year/early next year I will do like that article says, and throw $25/mo in an account for each of them.  Then once or twice a year I'll throw it in an index fund or something.

As for your original article, I haven't had to deal with that much yet (the boy is only 3), but I have struggled with that in my head too.  I don't want my kids to grow up being materialistic pricks who have to have huge parties for every birthday or anything.  I want them to be grounded.  But at the same time, I was somewhat of an outcast when I was in elementary and middle school (not so much for HS), and I DON'T want my kids to have the same childhood I did if they'd get ridiculed for not having parties and stuff.  Not sure how I'm gonna handle that in a few years.

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