By Deborah Owens,
“Mother, I don’t want to shop there because that’s where they send the clothes nobody wanted.”
“Well hush my mouth,” is what I thought several years ago when my teenaged daughter, Olivia, refused to accompany me to my favorite discount store. You see, I come from the school of looking good for less. It pains me when I see something on sale that I have paid full price for.
Ms. Olivia, on the other hand, was into “casual luxury” clothing. Several years ago we took a trip to New York with a bunch of other teenagers from her dance studio. And, all the parents were railroaded into visiting this brand new store with six floors of ripped jeans and faded see-through t-shirts. My husband, Terry, picked up a t-shirt, which had letters hanging by threads, and couldn’t believe the price tag – one hundred and fifty smackeroos. The expression on his face was, “I know you are not buying this child any clothes up in here.”
I did not begrudge Olivia’s taste in clothing, but we had reached a compromise. The money she earned could be spent on anything she desired — within reason, provided that she tithed and half of it was saved or invested. Instead of buying the clothes, I suggested that she do a little research on the company and invest in a few shares instead. She had fifty dollars in her purse and didn’t spend a dime of it in that store. Isn’t that funny? While other mothers were frowning as they pulled out their credit cards, I had a smile on my face.
It’s not enough for you to tell children what they should do; it’s better to show them how.
After conducting research on the Internet, Olivia decided to set up a monthly investment plan with half of her money in Abercrombie and Fitch and the other in Aeropostale stock. They just happened to be two of her favorite retail outlets at the time. Most of her research was conducted at www.sharebuilder.com and I simply had to open a custodial account and set up a withdrawal from her bank account. Here it is several years later and she is graduating from college. Those monthly investments are now worth several hundred dollars.
Here are a few ideas that you can use to help your child on the path to a bright financial future.
Wealthy Teen Tip #1
Establish the habit of savings. Whether you give children an allowance or they receive money on their birthday or at holidays, insist they save a portion of what they are given. As the money begins to accumulate, they will see the results of self-control and not giving in to immediate gratification.
Wealthy Teen Tip #2
Encourage and help them find a talent or an enterprise that will create an income stream all their own. My son Brandon was a soccer referee at 11 years old and earned cash during the summer while he was in college being a life-guard and pool manager. Half of his earnings were invested in a mutual fund and he accessed some of those funds for his college expenses.
Wealthy Teen Tip #3
Facilitate an interest in wealth building by encouraging family and friends to gift shares of stock or write checks to a mutual fund in your child’s name. At birthdays and holidays, give the gift that keeps on giving – a share of stock in the company that makes their favorite video game or athletic shoe. Plant the wealth building seed early and watch it bear fruit.
Children listen to what we say and then watch what we do. Help them achieve their financial dreams by setting a good example. On the flipside, if Olivia had invested in one of my favorite stores T.J. Maxx (TJX), her investment would be worth a few thousand dollars. I tried to tell her that mother really does know best. Smile. The fact is that I wouldn’t be surprised if you don’t learn a few things too as you encourage your child to be a good steward of their finances. Warren Buffett’s father taught him taught him how to invest and you can teach your children too!
Deborah Owens is the Wealth Coach. She is the author of three books; most recently critically acclaimed, A Purse of Your Own: An Easy Guide to Financial Security, published by Simon and Schuster. Owens is a 20-year financial services industry veteran and former vice president with Fidelity Investments. Ms. Owens is a media personality who has been a contributor to CNN, ABC News Now, Shape, Essence Magazine, Ebony, Black Enterprise and is host of Wealthy Radio, which airs on WEAA an NPR affiliate in Baltimore, MD. Visit her website at https://deborahowens.com for more wealth building tips and tools.
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