The FamZoo Blog

Just learned about this site today: http://www.the...

2012-02-22T22:38:54.152-08:00

Just learned about this site today:
http://www.theoriginaltoothfairypoll.com/the-original-poll/
Looks like we our data was right on the money for 2010!

Not sure what the going rate is for a Silver tooth...

2012-02-17T18:40:14.824-08:00

Not sure what the going rate is for a Silver tooth - maybe that's what that $10 outlying data point was all about!

how much will tooth fairy give for a siver tooth

2012-02-17T17:12:38.583-08:00

how much will tooth fairy give for a siver tooth

Thanks for the post.. I download it.. from flickr ...

2012-02-16T23:45:51.917-08:00

Thanks for the post.. I download it.. from flickr set.

What thoughtful comments… It seems that I’ll have...

2012-02-08T10:15:05.610-08:00

What thoughtful comments… It seems that I’ll have to be a lifelong learner and follower of FamZoo to continue my fiscal education. Your posts indicate that no matter where we started in life, this economy has required most of us to continuously seek new methods to secure and sustain a stable financial future for ourselves and our families. Thank you for providing excellent examples to help others get started.

All, thank you for stopping by and leaving such te...

2012-02-08T09:41:11.384-08:00

All, thank you for stopping by and leaving such terrific comments on Katie's guest post.

@Peter: I agree, having a buddy/mentor to help with accountability and emotional support is really effective. Ideally for kids, a parent can fulfill that role early on. By offering parents simple tools like FamZoo, we're trying to lower the bar for doing so.

@Matt: love your "Christmas Club" story. It sounds like your parents were great mentors, and I agree that hands-on involvement is really key.

@Jared: I strongly agree that using auto transfers/deductions to automate "pay-yourself-first" before you ever get your hands on the funds is a fabulous technique. In fact, the automated Employee Stock Purchase Plan I had at Oracle way back in 1990 allowed me to finance much of FamZoo today (since I never touched much of it). This has allowed us the freedom to pursue our mission-driven business on our own terms. (Financial independence = freedom!) We try to teach kids that concept with the automated splitting of allowances into spending, saving, and giving. I also agree that Mint is a terrific tool. I use it with my oldest son now that he has real world bank accounts so I can continue to mentor him on personal finance basics as he works toward financial independence.

Thanks again for all your great comments.

Paying yourself first; a novel concept that seems ...

2012-02-08T08:44:42.404-08:00

Paying yourself first; a novel concept that seems easy in theory, but more difficult in practice. With the advent of faster, easier methods of financial management, "paying yourself first" can mean not seeing the money at all. ING Direct and many other financial institutions automatically transfer money from one account to another without it ever touching your hands. Think about it. It is much easier to "pay yourself" if you never have to actually go through the process. You resist temptation by not even acknowledging it.

Allowances aren't just for kids. Use online tools to budget your money (through your local bank or websites like Mint.com), see where your money is actually going ("wow, I pay $300 for gas each month!"), then create goals to either lower certain monthly payments ("I need to spend less on gas and tolls, cut down on eating out") and stick to a savings amount that goes directly into a high-yield savings account for a rainy day or a larger purchase down the road.

Understanding your finances, educating yourself and putting tangible products/services to monetary amounts all make financial stability a proactive exercise that will serve you best in the long run.

Great post, important discussion, and one that shows this author's writing ability and depth of knowledge in so many areas.

Paying yourself first is the best advice you can g...

2012-02-08T08:02:34.471-08:00

Paying yourself first is the best advice you can give to anyone as personal budgeting becomes a priority. In the world of behavioral finance, it's amazing the impact of knowing that you already have a few bucks in your pocket BEFORE you start writing out the bills.

As for what to do with your kids, I will never forget the earliest lessons in savings that my parents gave me. My brother and I both had to start a 'Christmas Club' with our local bank. Every Sunday, when my parents would 'do the money', they would call my brother and I into the kitchen, give us our allowance and then we would have to physically take $2 and put it into an envelope and seal it up for delivery to the bank. Then, in the winter, we'd receive a check for $100, ostensibly our 'reward' for being good savers. In real dollar terms, it didn't amount to much, but being actively involved in the saving and apportioning process of my "own" money early on in life certainly heightened my level of financial awareness as I went into adulthood. Don't be afraid to let your kids be involved with money. The dollar amounts needn't be large, but the principles and more importantly the responsibility are the lessons to be learned.

Any habit formed over a long period of time will b...

2012-02-08T07:36:28.205-08:00

Any habit formed over a long period of time will be difficult to break. Habits in the domain of personal finance are particularly unyielding due to the fact that there are so many opportunities for reinforcement in our daily lives (impulse buys, social pressure spending, etc.).

The concept mentioned here of an adult allowance seems to be a clever solution to the common problem of financial "tunnel vision" where people have difficulty making good spending decisions on-the-spot with regard to their larger financial goals and limits. Building a sustainable personal budget with a discrete partitioned allowance is a great way to bring wayward finances back on track.

With that said, I think the best advice here is actually asking a friend for help. Admitting weakness is never easy, but the benefit of getting advice from someone who lives the life of good personal finance and having the "accountability factor" to keep committed to a difficult change is of immeasurable value.

First rate comments. I'm ordering her book as ...

2012-02-08T07:24:24.117-08:00

First rate comments. I'm ordering her book as soon as I send this!

Thank you for the nice comments Marlaine! Those w...

2012-01-10T07:24:15.116-08:00

Thank you for the nice comments Marlaine!

Those who are interested in the broader topic of life skills education should check out Marlaine's site http://www.lifeskillsreportcard.com and join the ongoing discussion on the Parenting 2.0 LinkedIn group.

Standing Ovation Bill and Daniel! Every single so...

2012-01-10T04:48:44.824-08:00

Standing Ovation Bill and Daniel! Every single societal ill has roots in an inferior educational process. This article speaks brilliantly to the topic of transitioning from passive to proactive education in the area of finance. Popular though the saying "Children learn what they live" is, as teens and adults we can continue learning and not remain forever children.

As Daniel demonstrates, parents need not be limited by their parents' knowing. Teaching children that Life Skills education is a life long process - and we too are learning and improving daily - is the best role model we can provide future generations. Thank you both and especially you Bill for giving Life Skills Educators everywhere a priceless tool in FamZoo.

I like your approach - and I love the name of your...

2011-12-07T23:07:55.003-08:00

I like your approach - and I love the name of your blog. Your last post back in 2009 indicates your son was sporting "two slightly every so slightly wiggly lower front teeth." Sounds like he has long since traded those for collectible coins!

We gave our son the choice between money he can sp...

2011-12-07T07:09:58.449-08:00

We gave our son the choice between money he can spend and something that's a momento of the event, and he's gone with the moment every time. We have a lot of old coins, so the value of what the tooth fairy leaves him is probably higher than face value, but it's always been an old coin in the value range of 25 cents to a dollar. Our only gaffe was the walking liberty dollar that turns out to be a little more valuable than we thought.

Scott, I agree. When charitable activities ad hoc...

2011-11-29T12:36:59.760-08:00

Scott,

I agree. When charitable activities ad hoc, they fall off the plate easily. Turning the activity into a tradition tied to a recurring holiday or regular event is a great way to make it habitual and more "automatic". Thank you for stopping by.

Bill

P.S. I love the mission of your blog at http://daddydaughterdate.wordpress.com/

Bill, Thanks so much for linking this on LinkedIn...

2011-11-29T11:22:56.875-08:00

Bill,

Thanks so much for linking this on LinkedIn. I really wish I had known about it earlier as it seems like doing these things become an afterthought unless we're intentional about them. Next year, this one is going to be intentional for my family. Again, thanks!

Scott

Awesome Keyuri - love the Kiva concept and mission...

2011-11-28T18:22:07.356-08:00

Awesome Keyuri - love the Kiva concept and mission. -Bill

I just love traditions like yours. This is the &q...

2011-11-28T17:57:12.858-08:00

I just love traditions like yours. This is the "stuff" that goes on for generations and has a wide trickle down effect.

Our family has created a similar tradition by giving small business loans to entrepreneurs through kiva.org. It's fun for kids to choose the person / business they wish to support.

Rodney, I really appreciate your nice compliments ...

2011-11-17T22:55:12.638-08:00

Rodney, I really appreciate your nice compliments on Sophie and for your supportive comments about the FamZoo mission. I completely agree that starting early seems to have a really positive impact in forming solid life skills.

She's a breath of fresh air, Bill. I love the...

2011-11-17T10:44:38.632-08:00

She's a breath of fresh air, Bill. I love the song, love her voice, and love her artistry on the guitar. Not to mention the theme. I think there are SO MANY families who will benefit from your product. In the competitive world we live in, kids need all the edge we can give them. Learning how to manage one's own personal finances is a skill that I suspect 80% of us don't master during our lifetimes. Learning to do so at an early age is a priceless (pun intended!) gift, and a HUGE edge in life, if there ever was one.

But besides all that, just as a parent in general, succeeding in saving, budgeting, and meeting small goals one step at a time, is an extremely powerful way to give our little people self-confidence while actually learning such a powerful skill. I can't say enough how excited I am about the potential impact on children who are involved with your project from an early age. Its WAY bigger than just the IMPORTANCE of the skill itself.I feel privileged to be associated with such a positive influence.

Yeah, pretty ridiculous on the surface, but someti...

2011-11-11T06:33:41.105-08:00

Yeah, pretty ridiculous on the surface, but sometimes the outlying numbers - like $10 - have a reasonable explanation when we drill deeper into the "Memo" field - like "the painful extraction of multiple molars" or some such. Thanks for leaving your thoughts. I like your frugal tooth fairy price range.

Good gracious! $10...there is absolutely no way! M...

2011-11-11T00:33:08.730-08:00

Good gracious! $10...there is absolutely no way! My daughter makes approximately $10-$12 per week on allowance at 10 years old, there is no way we'd drop $10 for a tooth. We have done either $0.10 - $0.50. Absolutely ridiculous expecting a child to make 10 bucks, when many people don't even make $10/hour in wages. We are teaching our kids to work hard for what they get and not take money for granted or as an expectation. No handouts! Maybe that makes my husband and I cheap but we have to be responsible with our money too.

Thanks for the comment Jenny. If my math is correc...

2011-11-08T21:09:20.162-08:00

Thanks for the comment Jenny. If my math is correct, at least you're still sneaking in under the average for now ;-)

We give $.25 for each year they are when they lose...

2011-11-08T15:41:33.304-08:00

We give $.25 for each year they are when they lose the tooth. We obviously didn't think this through as my daughter is now 9 and lost her 2nd tooth this month. Fortunately we are into the molars but we still need to cap the amount.

Gina, thank you for the very nice compliment. I ju...

2011-11-07T23:29:23.618-08:00

Gina, thank you for the very nice compliment. I just took a tour around your blog and it looks like a great resource for parents looking for smart ways to teach their kids good money habits.

I enjoyed the tooth fairy post - so glad that you didn't leave an iPad! :-)
http://ginasmom.com/2011/10/25/the-tooth-fairy-and-the-ipad/