Weekly Family Finance Picks (#14)

We’re constantly scouring the Internet looking for articles related to family finances and teaching kids good personal finance habits. You can visit the FamZoo delicious page to see our ever growing list of family finance bookmarks. Each week, we pick our favorite articles from the previous 7 days and post them here.

The picks for this week are:

Sweep Long Term Savings

Where a Bank Watcher Banks
by Jennifer Saranow Schultz
on The New York Times Bucks Blog

Lately, I’ve been looking around for the most convenient way to periodically take my kid’s virtual long term savings account balances in FamZoo and roll them over to real world savings accounts. Jennifer’s article might just point to the solution I’ve been looking for: Orange Savings Accounts at ING Direct. The particular points of interest for me are: opening an account looks really easy, you can create any number of "sub-accounts" under a single login, no fees, no minimums, and attractive interest rates (relatively speaking).

I did some additional searching around and found these two nice articles on fivecentnickel.com that explain using the ING Direct "sub-accounts" as a place to sweep your kid’s long term savings virtual balances:

I’m going to give this a try in the next couple of weeks, and I’ll let you know how it goes.

10 Traits of Debt-Free People (of Modest Means)
by Len Penzo
guest posting on MSN Smart Spending Blog

Len’s article lists the key traits that separate the "financially free" from the "financially inept". OK, as an engineer, I’ll admit that I was naturally drawn to the first trait: being detail oriented. My own nerdy biases aside, I still think it’s an excellent list.

Where do you stand on these traits? Are you modeling these traits to your kids? Do you discuss them explicitly? Good food for thought.

Six Ways to Teach Your Children About Money
by Laura F. Dogu
on Forbes Personal Finance Blog

Laura is a top contributor over at the Bogleheads forum: an online community dedicated to “the civil discussion of investing, personal finance, and consumer issues.” She shares her six favorite suggestions for teaching kids critical financial skills — including taking “taxes” out of your kid’s allowances.

We haven’t imposed allowance taxes in our family to date, but it sounds like a reasonable idea as long as you take the tax money and spend it on something enjoyed by the whole family as described in last week’s DadCents video post.

How many of Laura’s suggestions have you implemented with your kids?

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