Family finance
Teach high rollers (the kids) true value
In a society where the evolution of video I-Pods and Blackberries has become the norm, our nation's children are in a tough spot. They see their favorite sports and movie stars and even the kid next door with all the best toys, and naturally think the more toys, the better. The JumpStart Coalition projected that children ages 4-12 will spend $51.8 billion in 2006. Teenage Research Unlimited reports that teens ages 12-19 spent $159 billion in 2005, which is nearly twice as large as the estimated gross domestic product of Romania in 2005, according to the International Monetary Fund.
A 2003 survey commissioned by Northwestern Mutual found that 90% of young people learn everything they know about money at home. This is a scary thought considering a similar survey found that nearly half of parents did not feel they are good financial role models for their children.
As parents, it is our responsibility to encourage our children to improve their personal financial literacy and learn to make smart choices with money. Schools, increasingly relied upon to be the sole source of learning for our kids, have few programs that teach basic money management. This provides both a challenge and an opportunity. Together as a community, we must dedicate ourselves to educating our kids on the importance of using money wisely. Parents - if you have financial insecurities, talk with a friend who can help, or better yet, a financial professional.
National organizations like America Saves consist of nonprofit, corporate and government organizations around the country and even here in Orange County that offer valuable resources to us and our kids in providing the fundamentals of money management. The Internet also provides great tools for kids, parents and educators such as themint.org, a site designed to help kids learn the basics of using money wisely.
- By Paul Castillo; he is a financial representative with The Waltos Group of the Northwestern Mutual Financial Network (NMFN). NMFN is the marketing name for the sales and distribution arm of The Northwestern Mutual Life Insurance Company (NM), Milwaukee, Wis. Information in Orange County: 949.863.5800, or paul.castillo@nmfn.com
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