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Cash Class
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Ellen Mulholland
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Last Updated on June, 16 2008 at 03:47 PM
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Linda, an Oakland parent, recalls a recent evening when her daughter, a fifth grader, dressed up for a father-daughter dinner. She lent her
daughter an elegant evening purse, and anticipated seeing her all
dressed up. Before entering the dining room, her daughter tossed her
the small purse, which appeared to be bulging with goodies. Linda (who
did not want her last name used) opened it to see what her daughter had
crammed inside -- and made an unexpected discovery. Wads of bills
totalling nearly $80 - filled every crevice of the bag. After the initial
shock, Linda realized that her daughter probably thought that an
evening out meant one had to carry plenty of cash.
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Linda, an Oakland parent, recalls a recent evening when her daughter, a 5th grader, dressed up for a father-daughter dinner. She lent her daughter an elegant evening purse, and anticipated seeing her all dressed up. Before entering the dining room, her daughter tossed her the small purse, which appeared to be bulging with goodies. Linda (who did not want her last name used) opened it to see what her daughter had crammed inside -- and made an unexpected discovery. Wads of bills totalling nearly $80 - filled every crevice of the bag. After the initial shock, Linda realized that her daughter probably thought that an evening out meant one had to carry plenty of cash.
Now, Linda's worried that her daughter believes money magically appears from the walls of a bank.
It is parents like Linda --- and there are many such parents -- that Saundra Anderson, a mom, mortgage broker and certified coach who organizes money camps called “Camp Millionaire” for kids in Oakland and throughout the East Bay, caters to. “When we were kids, our parents didn’t talk about money,” says Anderson. “Adults today probably learned a lot as kids by watching.”
What many kids see today includes parents handing over credit cards to merchants; and when they query their parents about the family budget, many adults simply avoid the conversation. Face it, talking money with our kids brings up our own worries, fears of solvency, and guilt about how we spend (and save) that money.
This Nashville-native and self-proclaimed army brat grew up amidst the era of the Tuskegee Airmen. She describes her family as "typical middle class" and believes she’s one of those adults who learned about money by watching her parents. Her dad was the breadwinner who golfed on Saturdays; her mom spent money on frilly things, but organized the family for church every Sunday. Each year, they took family vacations. Anderson received a public school education that her Jamaican mom infused with music lessons and ballet. This is what she wants today for her child: a cultural map filled with traditions and life lessons -- lessons handed down a little more easily, perhaps.
As an adult, Anderson moved to California where she completed a B.A. in Home Economics and Marketing from San Jose State. She intended to enter the field of fashion designing and even owned her own jewelry business at one point. (She serves on the MOCHA board.) Eventually, she fell into banking and worked for Charles Schwab.
Today, raising her son, Anderson constantly explores money issues with him. It’s that first one that throws parents into a frantic debate: When should I start my child on an allowance? Or, should I even give my child an allowance? “It’s not too early to give allowance,” says Anderson, who frequently references information she’s read in Money magazine and Kiplinger’s. Some say an allowance should be tied to chores. Others say chores are a family responsibility, a contribution to the household.
Anderson offers this: “Allowance is about teaching you how to manage money.” Her experience with her son Andre suggests the strategy works. After reading an article in Kiplinger’s that suggested parents start an allowance with their kids at 5 and offer anywhere from 50 cents to $5 per year of age (depending on the family’s lifestyle) she decided to get started. So, at 5-years-old, Anderson began paying Andre a small allowance. She was tired of hearing the “Mommy will buy that for me” whine while standing in checkout lines. One day, after his first week of allowance, the two stood at a Walmart checkout, and Andre asked his mom to buy him a 99-cent toy car. “I said, ‘No, but you have allowance now, so you can buy it’," she recalls. "And he thought about it and said, ‘Hmm, maybe I won’t’. It was a big aha moment for both of us,” she recalls.
That year, she continued simply giving Andre a weekly allowance. The following year she created a spreadsheet and showed him how to track his saving and spending. At age 7, she opened a savings account for him. Then, implementing her own financial savvy, Anderson showed Andre how to divide up his money: roughly 32% goes into his savings for long-term needs; another 32% falls under a “financial freedom” account that would allow for short-term bigger budget items; another 32% is simply “play” money; and the remaining 4% to 5% goes towards Andre’s choice of charity. She does allow Andre, now 10, to earn extra money by doing special tasks at home.
Anderson uses these same hands-on practical strategies to teach kids ages 11-19 how to manage their money. She first helps them understand their attitudes and beliefs around money and takes them through exercises that show first-hand what their parents go through to plan and manage household budgets.
At the end of the week-long camp, students write a “commitment to self" statement that helps them focus on what they learned and what they want to change. Although many participants come from middle class and upper-middle class families, Anderson does offer discounts to families that are not well off. Since Creative Wealth International, the umbrella organization that oversees Anderson’s “Camp Millionaire,” is a non-profit, Anderson 's tuition stays relatively low.
She believes it's not just the kids but even the parents that benefit from the classes. She recalls one high-earning dad with two teenage girls in the camp. The girls had learned about the stuff they waste their money on, which Anderson calls “piddlycrap” – iPods, candy, novelty items and trinkets that only hold emotional value. One daughter had decided she wasn’t going to ask her dad for anymore “piddlycrap”. She even began asking him more about his job and what he did. At the end of the class, the dad excitedly approached Anderson saying, “My girls have never cared about my living. Now they do.”
If you are curious about how to help raise financially responsible kids, Anderson suggests you read any kind of financial magazine. Today, nearly every issue features articles on parents, kids and money. Talk to your bank or credit union about opening a free savings account for your child. Talk to your kids about money – why you are willing to pay $40 for a tank of gas, but not $100 for those cool new shoes.
To register for a camp, call Saundra at 510-813-2749 or email her at saundra.anderson@utms.com. Visit the website at www.creativewealthintl.org
TEEN INTENSIVE
Location: Holy Names University, Heafey Hall
3500 Mountain Boulevard, Oakland CA 94619
Dates: Wednesday, July 16 and Thursday, July 17
Hours: 9:00 am -- 4:30 pm
Ages: High School Juniors and Seniors ONLY
Fee: $165.00 (includes lunch and playbook)
CAMP MILLIONAIRE
Location: Holy Names University, California Room
3500 Mountain Boulevard, Oakland CA 94619
Dates: Monday, July 28 - Friday, August 1
Hours: 9:00 am - 3:30pm
Ages: 11-14
Fee: $295.00 (includes lunch and playbook) |
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RECOMMEND
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OAKLAND
OAKKIDS
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