ANCHOR: WHAT YOU TEACH THEM ABOUT MONEY WHILE THEY’RE YOUNG CAN MAKE ALL THE DIFFERENCE. WGN FINANCIAL REPORTER ILYCE GLINK IS HERE WITH SOME TIPS ON RAISING A MONEY SAVVY KID.

ILYCE: AS IF RAISING FINE HUMAN BEINGS WEREN’T ENOUGH, ADD MONEY SMARTS TO THE LIST OF WHAT PARENTS HAVE TO TEACH THEIR CHILDREN. THE GOOD NEWS IS THAT KIDS LEARN BY WATCHING AND DOING, SO THE EXAMPLE YOU SET WILL PAVE THE WAY FOR THEIR FINANCIAL FUTURE. IN TONIGHT’S COVER STORY, HOW TO RAISE A MONEY SAVVY KID.


RON CORNIELS VACUUMING, CLEANING THE BATHROOM

RON CORNIELS WORKS HARD FOR HIS MONEY.

RON TELLS US HOW MUCH HE GET FOR EACH CHORE

TRACK: ADD THAT TO BIRTHDAY AND HOLIDAY CASH, AND HE’S ALREADY SAVED MORE THAN THE AVERAGE AMERICAN IS WORTH

RON CORNIELS: “I’VE GOT $10K IN A BANK ACCOUNT AND ANOTHER $100 IN THE HOUSE”

TRACK: RON’S MOM HAS BEEN THE DRIVING INFLUENCE BEHIND HER SON’S INTEREST IN SAVING MONEY.

KATHY CORNIELS: “MY RULE WAS SPEND HALF, SAVE HALF BECAUSE THE MONEY WAS BURNING A HOLE IN HIS POCKET AND THIS WAY HE HAD TO THINK ABOUT WHAT HE WAS GOING TO SPEND HIS HALF ON AND WE JUST DECIDED IT WAS A GOOD WAY TO TEACH HIM ABOUT SAVING.”

SUSAN BEACHAM HOUSEHOLD, JUICE TO GIRLS. GIRLS PUTTING GOLD IN PIG GUT.

SUSAN BEACHAM: “I’M AMAZED AT THE LEVEL OF SOPHISTICATION IN CHILDREN
BECAUSE THEY ARE ALWAYS WATCHING US.”

TRACK: WHAT ARE THEY LEARNING? IN THE BEACHAM HOUSEHOLD, THEY’RE LEARNING PIGGY BANKS ACTUALLY HAVE FOUR STOMACHS.

SAVE SPEND DONATE AND INVEST

TRACK: TO COMPOUND THEIR INTEREST, BEACHAM CREATED THE MONEY SAVVY PIG. A LEARNING TOOL THAT HELPS CHILDREN UNDERSTAND THERE’S MORE THEY CAN DO WITH MONEY THAN SPEND IT.

SUSAN BEACHAM: OUR CHILDREN GREW UP IN A TIME WHERE WE DIDN’T DISCUSS IT AND WE DIDN’T GET EDUCATION. THAT’S WHY DIALOGUE IS SO IMPORTANT. WE NEED TO TALK TO OUR KIDS ABOUT WHAT WE WANT THEM TO KNOW.

A MILLION BUCKS. YOUR KIDS HAVE THE POTENTIAL TO EARN THAT KIND OF MONEY IN THEIR LIFETIME AND YOU CAN HELP THEM LEARN HOW TO MANAGE IT. YOU CAN TAKE THEM TO THE BANK OR THE CHICAGO BOARD OF TRADE OR HERE AT THE FED RESERVE BANK OF CHICAGO, AMPLE OPPORTUNITIES ABOUND FOR THEM TO LEARN THE VALUE OF A DOLLAR

KIDS AT DOMINICKS

YOU CAN LEARN ABOUT MONEY EVERYWHERE — EVEN AT YOUR LOCAL SUPERMARKET.

TRACK: TOO MUCH KNOWLEDGE CAN OVERLOAD YOUR KIDS. THEY’RE NOT PINT-SIZED ALAN GREENSPANS. INSTEAD, GIVE THEM ENOUGH INFORMATION TO LEARN HOW TO MAKE SMART CHOICES WHEN IT COMES TO THE CASH THEY CONTROL.

IF THEY WANTED TO CONTROL BIRTHDAY MONEY AS PART OF THEIR EXPENSES, YOU MAY FIND THAT THE CHILD WHO DESPERATELY HAD TO HAVE A $50 BIRTHDAY PRESENT FOR A BEST FRIEND IS NOW SHOPPING THE GROCERY AISLE FOR DOLLAR GIFTS.

TRACK: BETTER TO LEARN THAT LESSON NOW, THAN AFTER THEY’VE CHARGED THEIR CREDIT CARDS TO THE MAX IN COLLEGE. BUT THERE’S NO ONE RIGHT WAY TO TEACH YOUR KIDS ABOUT MONEY. TALK TO 100 PEOPLE AND YOU’LL GET 100 DIFFERENT IDEAS.

BEA HYDE: WE GAVE THEM WHAT WE COULD AFFORD. THEY WERE SATISFIED.

MARK FISHER: “IF SOMETHING COSTS TOO MUCH, WE’LL ASK DO YOU REALLY NEED THAT? MAYBE THERE’S AN ALTERNATIVE THAT’S A LITTLE MORE REALISTIC.

ELIZABETH STEVENSON: “MY MOTHER WAS TELLING ME WHEN SHE WAS GIVING ME MY ALLOWANCE THAT SHE WANTED ME TO BUY MY OWN DEODARANT, MY OWN SCHOOL SUPPLIES, MY OWN EVERYTHING. SO WHEN I GOT OLDER, I BASICALLY KNEW EVERYTHING.

CYNTHIA CHASE: “THERE NEEDS TO BE GUIDELINES AND A LIMIT OF WHAT THEY CAN HAVE. BECAUSE THINGS COST AND YOU CAN GO CRAZY AS A PARENT.”

TRACK: NOT TO MENTION THE PRESSURE OF CHECKING OUT WITHOUT HALF THE CANDY AISLE ENDING UP IN YOUR CART, OR THE PRESSURE OF GIVING YOUR KIDS EVERYTHING THEY WANT — WHEN THEY WANT IT.

KATHY CORNIELS: “UNLESS YOU INVOLVE YOUR CHILD AND LET THEM DO IT AND LET THEM MAKE MISTAKES, THEN THEY’RE NOT REALLY GOING TO LEARN BECAUSE YOU’RE DOING IT FOR THEM.”

RON CORNIELS: “WORKING FOR THE MONEY AND SAVING THE MONEY ARE BOTH TEACHING ME GOOD LESSONS. I’VE NOTICED THE KIDS AROUND THE BLOCK THAT JUST GO AND SPEND THEIR MONEY DON’T END UP WITH THAT MUCH NICE STUFF. LITTLE STUFF, MAYBE CANDY, CARD BOOKS, AND THEN IT’S GONE REALLY QUICKLY. (BUTT TO) “I’M LOOKING FOR A LOT BETTER QUALITY THAN QUANTITY.”

TRACK: AS A PARENT, YOU JUST HAVE TO KEEP YOUR EYES ON THE FINISH LINE.

KATHY CORNIELS: “I JUST HOPE BY THE TIME HE’S 18 OR 19, HERE’S NOT LIVING AT HOME, HE’S FINANCIALLY AND THAT HE CAN MANAGE HIS OWN FINANCES.

TAG: IT’S NEVER TOO LATE TO TEACH YOUR CHILDREN ABOUT BEING MONEY SAVVY, AND THERE ARE A LOAD OF GREAT WEBSITES OUT THERE THAT PROVIDE EXCELLENT FREE INFORMATION. CHECK OUT

October 19, 2002