00:59:50:00 slate 10 01:00:00:00 first vid 01:00:02:13 § § 01:00:06:13 01:00:18:21 >> Narrator: How can you say no 01:00:20:02 to your kids 01:00:21:10 while you're shopping 01:00:22:20 without all the arguments? 01:00:24:28 01:00:28:22 (register beeping) 01:00:30:25 01:00:33:07 >> Oh. No, we are not 01:00:34:10 spending money on candy! 01:00:35:19 >> But Caroline-- 01:00:36:18 >> I'm not talking about 01:00:37:17 Caroline. 01:00:38:14 You took the candy bar. 01:00:39:15 >> Just let him have it! 01:00:40:18 Let him have it this time. 01:00:42:04 (register beeping) 01:00:43:18 >> Look at that. 01:00:44:18 How could it be so much? 01:00:46:08 And where did that come from? 01:00:49:02 >> Narrator: So what's the 01:00:50:05 answer? 01:00:51:13 How can you get a handle 01:00:52:18 on shopping, without 01:00:53:23 so much drama and stress? 01:00:56:06 01:00:58:24 Kids want lots of things, 01:01:00:10 some that require new spending, 01:01:02:07 but many that don't. 01:01:04:05 01:01:07:05 >> Matthew, did you brush 01:01:08:08 your teeth yet? 01:01:09:14 >> No. 01:01:10:20 >> You know what I said. 01:01:11:22 No games until you brush. 01:01:12:29 >> Okay. 01:01:14:08 >> Narrator: For kids, 01:01:15:10 learning to wait is a habit 01:01:16:13 that puts all their wants 01:01:17:14 into proper perspective, 01:01:19:14 whether it's doing homework 01:01:20:23 before going out to play, 01:01:22:16 helping with the dishes 01:01:23:20 before watching TV, 01:01:25:07 or waiting before you 01:01:26:09 buy something for them. 01:01:28:13 And for parents it's helpful 01:01:29:19 to make a shopping list 01:01:30:28 before you leave for the store. 01:01:32:13 And then stick to it. 01:01:34:08 A list helps you stay on track, 01:01:35:29 and also helps you control 01:01:37:11 your kid's sudden impulses. 01:01:39:03 >> We're low on milk and fruit. 01:01:40:24 >> Okay. 01:01:42:19 >> Caroline, what are you doing 01:01:43:23 with the phone? 01:01:45:01 >> I'm just calling Michelle. 01:01:46:05 >> That can wait 01:01:47:07 till we get back. 01:01:48:14 Come on, Matthew, let's go. 01:01:49:19 Ready? 01:01:51:19 01:02:00:10 >> Can we get some ice cream? 01:02:02:02 >> Not today, Caroline, 01:02:03:10 ice cream's not on the list. 01:02:05:13 01:02:07:03 >> Maybe we can get it 01:02:08:06 next time. 01:02:09:16 >> Narrator: Having 01:02:10:19 a well thought out list 01:02:12:00 can help both kids and parents 01:02:13:04 budget effectively, 01:02:14:17 and avoid those impulses 01:02:15:24 to spend money carelessly. 01:02:18:09 01:02:19:09 01:02:38:12 slate10 01:02:48:12 01:02:50:27 § § 01:02:54:27 01:03:02:15 >> Narrator: How can you help 01:03:03:17 your kids get into the habit 01:03:04:17 of saving? 01:03:05:24 >> All right, time to make 01:03:06:24 some banks. 01:03:08:08 >> Narrator: The fact is, 01:03:09:11 it's never too early for them 01:03:10:10 to learn this valuable habit. 01:03:12:19 Helping younger kids make banks 01:03:14:02 from common items 01:03:15:04 can be a fun activity. 01:03:17:08 And making more than one bank 01:03:18:28 helps them learn 01:03:19:29 a lot about planning. 01:03:21:22 >> Save, give and spend. 01:03:23:26 Now see, you can put money 01:03:25:00 in here that you want 01:03:26:07 to spend pretty soon. 01:03:27:12 But mom and I really want you 01:03:28:29 to save up for bigger things. 01:03:30:24 >> Yeah, like the animal 01:03:32:00 coloring book! 01:03:33:09 >> Yeah, right! 01:03:34:16 Or maybe even some other things 01:03:35:27 later on, too. 01:03:37:27 >> Narrator: No matter how 01:03:38:26 little it may be, 01:03:39:27 kids can practice saving 01:03:41:05 with cash from birthdays, 01:03:42:16 chores, even coins 01:03:44:03 found lying around. 01:03:45:17 >> Look! 01:03:46:17 I found a quarter! 01:03:47:26 And a dime! 01:03:49:07 >> Can you tell me why we make 01:03:50:12 this special bank for giving? 01:03:52:13 >> Because some little kids 01:03:53:20 don't have money. 01:03:55:02 And I could help make them 01:03:56:19 not be so sad. 01:03:58:26 >> Yeah! 01:04:00:01 >> Narrator: Learning to feel 01:04:01:02 good about being generous 01:04:02:05 is a wonderful thing for kids. 01:04:03:19 It can help them grow up 01:04:04:24 to be responsible adults. 01:04:06:29 And over time, young kids 01:04:08:13 will be fascinated 01:04:09:26 at how the money can accumulate 01:04:11:17 in their very own banks. 01:04:13:25 >> I'm ready to go, dad. 01:04:15:11 >> All right, great. 01:04:17:01 Let's go. 01:04:18:05 >> When you go out 01:04:19:04 to do your own banking, 01:04:20:04 take your kids along. 01:04:21:19 They'll learn a lot, 01:04:23:10 just by seeing what you do 01:04:24:29 and all that happens at a bank 01:04:26:14 or credit union. 01:04:28:17 You may take it for granted. 01:04:30:03 But remember, 01:04:31:07 it's probably all new to them. 01:04:33:11 >> Hi, Kara, my name's Amy. 01:04:34:19 >> Hi. 01:04:35:20 >> It's nice to meet you today. 01:04:36:27 >> Narrator: And as your kids 01:04:38:01 get a little older, 01:04:39:04 why not let them open their own 01:04:40:10 savings account? 01:04:41:22 >> Open a savings account. 01:04:43:03 Do you have a deposit today 01:04:44:07 for your account? 01:04:45:13 >> Yeah. 01:04:46:14 >> Narrator: Most financial 01:04:47:12 institutions have special 01:04:48:16 no-fee accounts 01:04:49:14 that make it easy to get started 01:04:50:23 with just a modest deposit. 01:04:52:27 >> Congratulations, Kara, 01:04:54:08 for depositing money 01:04:55:10 into your savings account today. 01:04:56:20 As you can see from this 01:04:57:21 receipt, you deposited $32.56. 01:05:00:22 >> Cool. 01:05:02:09 >> All right! 01:05:03:27 >> Narrator: When kids 01:05:05:01 have a savings account, 01:05:06:04 their money is out of sight, 01:05:07:11 and often out of mind. 01:05:09:08 So they're less likely 01:05:10:08 to spend it impulsively, 01:05:11:22 while planning for the future. 01:05:14:00 Over time, as kids continue 01:05:15:28 to use a savings account, 01:05:17:28 they also get the extra boost 01:05:19:22 of seeing how interest is added. 01:05:22:00 >> So you can enter the amount 01:05:23:04 you put in the bank 01:05:24:09 into this box here. 01:05:25:17 >> Narrator: There are several 01:05:26:18 Web sites they can go to 01:05:27:22 that compute compound interest 01:05:29:06 for any amount, 01:05:30:25 based on current interest rates 01:05:32:02 over time. 01:05:35:18 These days many, if not 01:05:37:00 most adults live paycheck 01:05:38:10 to paycheck. 01:05:40:19 It's like walking on a high wire 01:05:41:29 without a safety net. 01:05:44:24 But you can help your kids 01:05:46:00 avoid that peril when they 01:05:47:04 grow up, by teaching them 01:05:48:08 the savings habit! 01:05:49:23 >> Whatcha got there? 01:05:50:24 >> Savings. 01:05:51:25 >> Wow! 01:05:52:22 >> Whoa! 01:05:53:27 >> That's a lot! 01:05:55:27 01:05:56:27 01:06:09:13 slate 10 01:06:19:13 01:06:21:25 § § 01:06:25:25 01:06:34:29 >> Narrator: How do you 01:06:36:03 teach your children 01:06:37:07 that there's more to a purchase 01:06:38:21 than just the initial cost? 01:06:40:00 >> Dad, you've got to admit, 01:06:41:04 it's a good deal. 01:06:42:25 >> Well, it runs well. 01:06:44:03 And it seems to check out 01:06:45:05 on all the safety points. 01:06:46:09 >> So, can we sign 01:06:47:07 the papers now? 01:06:48:13 I've got the down payment. 01:06:49:26 >> Hang on a minute! 01:06:51:02 That down payment is just 01:06:52:03 the beginning, you know. 01:06:53:10 You and I need to go over 01:06:54:13 all the extras. 01:06:55:17 But first, I promised Danika 01:06:56:16 we'd swing by 01:06:57:20 the Humane Society. 01:06:58:25 >> Extras? 01:07:00:25 >> Narrator: When a teen 01:07:01:25 is about to get that first car, 01:07:03:01 it's a really big deal. 01:07:04:07 It's also financially complex. 01:07:06:15 No wonder teens may not grasp 01:07:07:20 all the details at first. 01:07:10:23 01:07:13:25 >> Come on! 01:07:15:27 (dogs barking) 01:07:19:15 See? He likes me. 01:07:21:10 Look how cute he is! 01:07:22:20 >> He really is. 01:07:23:18 >> I promise I'll feed him 01:07:24:20 and brush him. 01:07:25:27 >> I know, I know. 01:07:27:13 And we have to promise 01:07:28:16 the folks here 01:07:29:16 to take good care of him, too. 01:07:30:25 But we need to talk about 01:07:31:26 a few doggie extras first. 01:07:34:09 >> Extras? 01:07:35:21 >> Narrator: Kids need to learn 01:07:36:24 about those extra costs. 01:07:37:29 Taking time to think, 01:07:39:10 rather than buying something 01:07:40:13 on impulse, 01:07:41:15 is a really important lesson. 01:07:44:06 01:07:47:10 >> So, what have you found out? 01:07:49:08 >> Well, it looks like 01:07:50:11 I'd have to pay the bank 01:07:51:11 about $80 a month on this loan. 01:07:53:00 I can handle that easily 01:07:53:29 with my job. 01:07:54:29 >> $80 a month? 01:07:56:12 Wait a second, how long 01:07:57:20 will this loan last? 01:07:59:15 >> Uh, 96 months. 01:08:01:09 >> 96 months? 01:08:02:21 That sounds to me 01:08:03:23 like eight years! 01:08:05:00 Do you think that old car 01:08:05:29 will last that long? 01:08:07:07 >> I'm not sure. 01:08:09:01 >> Me, neither. 01:08:10:12 Better plan on making a larger 01:08:11:17 monthly payment, so you 01:08:12:18 don't pay so much interest. 01:08:14:04 And also, you pay the loan off 01:08:15:08 much faster. 01:08:16:18 Then, take a look 01:08:17:18 at all the other extras. 01:08:19:11 >> Narrator: Cars are notorious 01:08:20:13 for their hidden costs. 01:08:21:22 Some are predictable. 01:08:23:12 Others, like repairs, are not. 01:08:25:24 But pets can be 01:08:26:25 equally surprising to someone 01:08:27:26 who hasn't had one before. 01:08:29:18 >> See, this is a pet cost 01:08:31:01 calculator. 01:08:32:12 Here you put in the fee 01:08:33:23 that the shelter charges, $145. 01:08:36:06 Mom and I 01:08:37:10 will help you with that. 01:08:38:18 And dog food. 01:08:40:00 But look here, there's more. 01:08:42:05 >> Food dish? 01:08:43:11 >> Sales tax? 01:08:44:16 >> Collar? 01:08:45:15 >> Registration fees? 01:08:46:22 >> Leash? 01:08:47:24 >> Oil changes? 01:08:48:27 >> Training? 01:08:50:03 >> Insurance?! 01:08:51:11 >> Pooper scooper?! 01:08:52:22 >> Gasoline every week?! 01:08:55:00 >> Christopher, we'll try 01:08:56:05 to get you in on our car 01:08:57:10 insurance, as long as 01:08:58:19 you keep your grades up, 01:08:59:19 so the rates won't be so high. 01:09:01:04 But there are lots of other 01:09:02:04 extras for cars. 01:09:03:19 And for dogs. 01:09:04:21 So you both need to wait 01:09:06:01 and save until you have enough 01:09:07:05 to help pay for all the costs. 01:09:09:04 >> Narrator: Learning to 01:09:10:07 calculate the total cost 01:09:11:07 of ownership helps kids prepare 01:09:12:25 for the bigger expenditures 01:09:14:10 they'll face as adults, 01:09:15:19 like renting an apartment 01:09:16:20 or buying a house. 01:09:18:24 01:09:19:24 01:09:34:20 slate 10 01:09:44:20 01:09:47:05 § § 01:09:51:05 01:09:58:25 >> Do you feel like every time 01:10:00:05 you turn around, your kids 01:10:01:15 are asking you for money? 01:10:03:00 (car horn honks) 01:10:05:07 >> Mom, they're here. 01:10:06:17 I need the $5! 01:10:08:01 >> It's on the table 01:10:09:01 by the door. 01:10:10:04 Have fun skating. 01:10:11:29 Be careful! 01:10:14:22 01:10:18:22 >> It's only $3.95. 01:10:20:03 Please? 01:10:21:25 >> Okay, okay. 01:10:24:05 01:10:26:08 >> I need $10, remember? 01:10:28:18 >> No, I do not remember. 01:10:32:06 >> Narrator: There are other 01:10:33:19 ways to deal with situations 01:10:35:08 like these that can help 01:10:36:15 both you and your kids, 01:10:38:06 ways that can avoid 01:10:39:14 a lot of the pestering. 01:10:41:04 01:10:43:14 Actually giving kids their own 01:10:44:26 money to spend is one way 01:10:46:15 to help them understand 01:10:47:17 what things cost, 01:10:48:25 and lets them practice 01:10:50:00 making decisions about how 01:10:51:07 to spend their money. 01:10:53:01 >> Here's the deal. 01:10:54:17 From now on, I'll be giving you 01:10:56:00 $20 every month. 01:10:57:05 And you get to decide 01:10:58:05 how to spend it. 01:10:59:12 >> Every month? 01:11:00:17 Cool! 01:11:02:00 >> Now, instead of asking me 01:11:03:03 for money every time you want 01:11:04:08 something, you'll be the one 01:11:05:17 to decide if you can afford it. 01:11:07:02 Can you handle that? 01:11:08:13 >> Yes! Totally! 01:11:10:04 >> Okay, here you go. 01:11:11:08 >> Narrator: With this plan, 01:11:12:09 you still pay for all 01:11:13:10 your child's essential needs: 01:11:14:19 housing, meals, clothing, 01:11:16:23 and sometimes even treats. 01:11:18:25 But you don't have to say 01:11:19:27 yes or no to every sudden whim. 01:11:22:15 >> This is what we call 01:11:23:11 budgeting. 01:11:24:13 >> Duh! 01:11:25:17 I have heard of budgeting, mom! 01:11:26:23 >> Well this is how 01:11:27:27 it's gonna work in this house. 01:11:28:25 First, make a list of everything 01:11:30:12 you might want to do 01:11:31:14 or get this month. 01:11:33:03 >> Hmm, movie... 01:11:35:11 >> Narrator: When you give your 01:11:36:14 kids control over money, they 01:11:37:24 will get hands-on experience 01:11:39:21 budgeting and making decisions 01:11:41:11 about how to use it responsibly. 01:11:43:17 >> Or that bracelet. 01:11:45:17 >> Last week, 01:11:46:15 you were begging for music. 01:11:47:23 Don't you want that 01:11:48:23 on your list? 01:11:49:27 >> Oh, yeah. 01:11:51:01 >> Now put down how much 01:11:52:01 each of those will cost. 01:11:53:08 Then you can start to figure out 01:11:54:20 which you really want, and 01:11:55:29 which you probably can't afford. 01:11:58:15 01:12:00:09 >> So many cool ideas 01:12:01:12 we could do. 01:12:02:21 (car horn honks) 01:12:04:03 >> Oh, I have to go. 01:12:10:11 Bye! 01:12:11:23 See you after the game. 01:12:13:05 >> Okay, have fun! 01:12:15:20 01:12:18:18 >> Narrator: And what happens 01:12:19:18 if their first attempts 01:12:20:14 at budgeting aren't entirely 01:12:21:18 successful? 01:12:23:11 >> Can I please have some money 01:12:24:14 to go to a movie with Nyika 01:12:25:16 and Aidan? 01:12:26:25 >> You know, that's supposed 01:12:27:27 to come out of your budget. 01:12:28:25 How are you doing this month? 01:12:31:11 >> I guess I'm kind of out. 01:12:33:28 >> Wow, that's gotta hurt. 01:12:35:21 >> Can't I just have the money 01:12:36:26 this time? 01:12:37:29 Please? 01:12:39:04 >> You know that's not the deal. 01:12:40:17 The deal was you get $20 a month 01:12:42:26 and manage your own budget. 01:12:44:13 I think next week is when 01:12:45:23 you'll get your next $20. 01:12:47:13 >> But Nyika and Aidan! 01:12:48:18 >> I know it's tough. 01:12:50:01 But that's what you agreed to. 01:12:51:27 You know, it's your job 01:12:53:12 to manage that budget. 01:12:55:12 Maybe this time you could think 01:12:56:19 about having your girlfriends 01:12:57:25 over for a movie. 01:12:59:10 >> Narrator: Sooner or later, 01:13:00:13 everyone makes mistakes 01:13:01:16 managing their money, 01:13:02:29 but preferably not big mistakes. 01:13:05:12 01:13:07:29 Letting your kids learn from 01:13:09:05 their mistakes early in life, 01:13:10:17 before they're out on their own, 01:13:12:05 will go a long way to help them 01:13:13:14 make the right choices 01:13:14:29 and be financially responsible, 01:13:17:12 and avoid those big mistakes. 01:13:19:23 01:13:20:23 01:13:35:05 slate 10 01:13:45:05 01:13:47:16 § § 01:13:51:16 01:14:01:00 >> Narrator: How do you teach 01:14:02:02 your kids to sort through the 01:14:03:09 claims that advertisers make? 01:14:05:05 >> The basket 01:14:06:16 is still ten feet high. 01:14:08:21 The free throw line 01:14:09:23 is still 15 feet away. 01:14:11:00 >> Hey, those are the ones 01:14:11:29 Matt has! 01:14:13:06 >> Narrator: For kids, 01:14:14:08 some products can have 01:14:15:13 near magical powers. 01:14:17:02 >> But now I'm faster. 01:14:18:21 >> Matt's got those? 01:14:20:15 (mutes TV) 01:14:21:19 >> Hey, the sound! 01:14:22:22 >> Just a minute. 01:14:23:22 So, do you think those shoes 01:14:25:03 make you faster? 01:14:26:19 Did they make Matt faster? 01:14:28:01 >> I don't know. 01:14:29:02 Maybe? 01:14:30:05 >> You know, just because 01:14:31:20 it says so in a commercial, 01:14:32:22 doesn't mean that it's true. 01:14:33:29 § § 01:14:35:09 >> Hi, my name is... 01:14:37:19 >> Narrator: Catchy slogans, 01:14:39:09 famous people, special effects 01:14:41:15 and animation 01:14:42:26 add excitement to TV ads, 01:14:44:23 and a magnetism 01:14:46:00 that may have nothing to do 01:14:47:04 with the product's value. 01:14:48:19 § § 01:14:49:20 >> Wha--? Sorry, Coke. 01:14:52:05 § § 01:14:54:28 >> Narrator: You can help your 01:14:56:01 kids understand how this works. 01:14:57:27 >> Okay, so what do you think 01:14:58:29 about this one? 01:15:00:05 >> It's kinda cool. 01:15:01:14 >> And what do 01:15:02:15 they want us to buy? 01:15:04:23 >> I don't know. 01:15:07:06 Oh! There's water bottles! 01:15:09:15 >> So if I drink that brand, 01:15:10:23 I can do those tricks? 01:15:12:29 >> Mom! 01:15:14:19 >> Narrator: Like adults, 01:15:15:24 kids take for granted all sorts 01:15:17:03 of fantastic situations 01:15:18:17 seen in commercials. 01:15:20:24 But though incredible, 01:15:21:29 this advertising magic 01:15:23:05 can create strong connections 01:15:24:16 to brand name products. 01:15:26:21 § § 01:15:28:21 If you help them 01:15:29:27 critically analyze commercials, 01:15:31:19 kids can become smarter 01:15:32:29 about craving certain products. 01:15:35:15 For example, how believable 01:15:36:22 is the action? 01:15:38:20 What kind of music is used, 01:15:40:18 and what would it be like 01:15:41:25 if you turned it off? 01:15:43:12 Do celebrities use the product? 01:15:44:29 And does that really matter? 01:15:46:26 Will this product make you 01:15:48:06 more popular or happier? 01:15:50:26 Do you really 01:15:52:01 even need this product? 01:15:53:27 § § 01:15:54:23 >> It's on me 01:15:55:28 to be faster than the game. 01:15:57:10 >> Tell me something, Alec. 01:15:58:25 No, seriously, are there any 01:16:00:26 really cool kids in your class? 01:16:02:12 >> Well, yeah, like Matt. 01:16:03:29 >> And some who aren't so cool, 01:16:05:01 right? 01:16:06:02 >> Uh-huh. 01:16:07:05 >> So if an uncool kids 01:16:08:12 put on those shoes, 01:16:09:20 would he all of a sudden 01:16:10:25 be really, really cool? 01:16:12:11 >> No way. 01:16:13:24 >> Narrator: By pointing out 01:16:14:24 some of these 01:16:15:25 advertising tricks, 01:16:16:29 parents can help kids realize 01:16:18:01 that they are being sold. 01:16:20:00 And once they better understand 01:16:21:10 what's happening in commercials, 01:16:23:11 kids have the capacity 01:16:24:19 to become smarter consumers, 01:16:26:06 who can save money, 01:16:27:25 both for you and themselves. 01:16:30:17 01:16:31:17 01:16:47:16 slate 10 01:16:57:16 01:17:00:02 § § 01:17:04:02 01:17:14:09 >> Narrator: Where do your kids 01:17:15:10 learn their money habits? 01:17:16:25 Even if you never say anything 01:17:18:00 to them about money, 01:17:19:09 kids are keen observers 01:17:20:26 and will likely learn behaviors 01:17:22:10 based on what they see you do. 01:17:25:17 Do you buy things, perhaps 01:17:27:00 with credit cards, for which 01:17:28:05 you really don't have the money? 01:17:32:14 Do you keep track 01:17:33:17 of what you spend? 01:17:36:04 01:17:40:08 >> Hey bro, guess what? 01:17:41:19 We're all set for the 01:17:42:21 Super Bowl, big time. 01:17:44:09 I just got a 50-inch plasma! 01:17:46:00 (laughs) 01:17:47:14 They almost couldn't get it 01:17:48:17 in the apartment door! 01:17:49:28 (laughs) 01:17:51:11 They've got this deal now 01:17:52:10 where they don't charge you 01:17:53:08 for 90 days. 01:17:54:20 Now we can put the old 01:17:55:23 32-incher in Caroline's room. 01:17:59:10 >> Caroline, I need you 01:18:00:11 to run down to the gas station 01:18:01:16 for some bread. 01:18:02:14 >> Uh, do I have to? 01:18:03:23 >> Yeah, we forgot to get it 01:18:04:20 at the store. 01:18:05:25 Use your money. 01:18:06:25 I'll pay you back later. 01:18:08:09 >> But you still owe me $5 01:18:09:17 from last week. 01:18:10:24 Remember, you told me to save 01:18:12:02 my birthday money from Grandpa. 01:18:14:00 >> I know, I know. 01:18:15:02 I said I'll pay you back later. 01:18:16:15 Now go. 01:18:18:15 >> Gotta go. 01:18:20:01 >> Narrator: Kids will easily 01:18:21:04 fall into bad money habits 01:18:22:13 if that's what they see at home. 01:18:26:15 (referee whistle blows) 01:18:28:26 (video rewind sound effect) 01:18:33:02 But they'll learn good 01:18:34:13 money habits if you 01:18:35:18 demonstrate them yourselves, 01:18:37:00 and if you show them specific 01:18:38:15 ways to get the best deals 01:18:39:29 with the money you have, 01:18:41:06 and the money they have. 01:18:43:13 >> Even though there's a coupon, 01:18:44:27 we don't need shampoo this time. 01:18:47:06 But we do need bread 01:18:48:08 for lunches. 01:18:51:28 >> Here we go. 01:18:53:19 >> Beautiful. 01:18:55:00 >> Narrator: If your kids 01:18:56:07 see you comparing prices 01:18:57:13 and looking for the best deals, 01:18:58:27 then they are much more likely 01:19:00:18 to do that themselves. 01:19:04:19 >> Caroline, can you tell 01:19:05:25 which is a better deal? 01:19:07:16 Look at this second line 01:19:08:25 below the full price. 01:19:10:20 >> Well, this one's 01:19:11:22 25.4 cents per ounce. 01:19:14:19 And this one's 20.1 cents. 01:19:17:01 >> But they're the same brand, 01:19:18:01 right? 01:19:19:07 >> Yeah, but this box is bigger. 01:19:20:20 >> If it's something we use a 01:19:21:22 lot of, it can actually be 01:19:23:17 cheaper to get more at one time. 01:19:26:14 Throw it in the cart. 01:19:29:05 01:19:35:05 >> Narrator: Being a good 01:19:36:08 role model can save you money 01:19:37:15 right now. 01:19:39:09 But for your kids, 01:19:40:19 it can translate into a lifetime 01:19:42:05 of smart money habits. 01:19:44:23 01:19:45:23 01:19:59:09 slate 10 01:20:09:09 01:20:11:21 § § 01:20:15:21 01:20:27:15 >> Narrator: Does the idea 01:20:28:21 of your teenager having 01:20:29:24 a checking account or debit card 01:20:31:07 make you nervous? 01:20:32:21 >> See, if I had a card 01:20:33:27 like that, I wouldn't have to 01:20:34:28 bug you for cash all the time, 01:20:36:09 or get it out of my savings 01:20:37:11 account. 01:20:38:08 >> Know what? 01:20:39:03 You're right. 01:20:39:29 You're not a kid anymore. 01:20:42:17 >> Narrator: When kids are 01:20:43:18 young, using cash is the most 01:20:45:01 direct way to understand money. 01:20:47:17 If they receive a dollar, 01:20:48:26 it's right there, 01:20:49:29 ready to save or spend. 01:20:52:09 And if they spend that dollar, 01:20:53:22 they immediately know it's gone. 01:20:57:04 But as kids get older, and need 01:20:58:17 to manage larger sums of money, 01:21:00:26 using cash all the time 01:21:01:29 isn't so practical. 01:21:03:20 >> So if you had one of these, 01:21:04:23 how would it take the place 01:21:05:24 of your cash? 01:21:06:24 Does money just magically 01:21:08:06 get loaded into it? 01:21:09:24 >> I do have a job, remember? 01:21:11:21 And I do get paychecks! 01:21:13:01 >> Paychecks?! 01:21:14:08 Hmm, now you're talking 01:21:15:08 my language! 01:21:16:14 Hey, Mr. Moneybags, 01:21:17:24 why don't you carry that bag 01:21:18:25 for your mother? 01:21:21:20 >> Maybe we should see 01:21:23:00 if the bank will let you 01:21:24:04 open your own checking account, 01:21:25:11 you know, in addition 01:21:26:11 to your savings account. 01:21:28:05 But first, I think you should 01:21:29:08 help us out with ours. 01:21:30:26 >> Narrator: Even though most 01:21:31:29 people are writing fewer 01:21:33:02 paper checks these days, 01:21:34:12 a checking account 01:21:35:17 is still the foundation 01:21:36:21 of nearly everyone's finances. 01:21:39:03 Whether they end up using checks 01:21:40:06 or debit cards, 01:21:41:14 teens need to learn how 01:21:42:20 to manage these accounts. 01:21:44:07 >> Here's where dad and I 01:21:45:24 write the check number, 01:21:47:07 the date we wrote it, 01:21:48:12 and who we wrote it to. 01:21:49:26 And what goes over there? 01:21:51:13 >> The amount you paid, right? 01:21:53:15 >> Right, and when 01:21:54:17 should you do all of that? 01:21:56:09 >> Right away? 01:21:57:14 >> You got it. 01:21:58:19 >> Narrator: By carefully 01:21:59:24 explaining the basic mechanics 01:22:00:28 of a checking account, parents 01:22:02:12 can help prepare their kids 01:22:03:18 to be successful money managers, 01:22:05:12 and avoid getting caught 01:22:06:19 with insufficient funds 01:22:07:23 or costly fees. 01:22:10:01 >> And here's something else 01:22:11:05 to do right away. 01:22:12:13 At the store, 01:22:13:15 mom didn't pay with a check. 01:22:14:18 She used a debit card, and 01:22:15:21 then they gave her a receipt. 01:22:17:09 What do you think is the first 01:22:18:13 rule of debit card receipts? 01:22:20:09 >> I don't know. 01:22:21:14 >> Rule number one: 01:22:22:21 Save the receipt. 01:22:24:16 And what might be 01:22:25:20 the second rule? 01:22:27:05 >> Uh, write it down? 01:22:28:20 >> Bingo! 01:22:29:22 The only difference 01:22:30:24 between this and a check 01:22:31:26 is that there's no check number. 01:22:33:02 All the other entries 01:22:34:07 are the same. 01:22:35:06 And the money still comes right 01:22:36:10 out of the checking account, 01:22:37:21 even faster. 01:22:40:18 >> Narrator: Today, many banks 01:22:41:23 will open checking accounts 01:22:42:25 for teens ages 13 to 17 01:22:44:20 with a parent's signature. 01:22:46:28 They often accept direct deposit 01:22:48:09 of the teen's paychecks, 01:22:50:02 instantly providing 01:22:51:11 a secure place for their funds, 01:22:52:29 and a safe way for them 01:22:54:06 to pay for some things 01:22:55:07 with their own checks. 01:22:56:26 Plus, these special accounts 01:22:58:08 offer parental controls 01:22:59:25 and will alert you 01:23:01:03 if there's ever a problem. 01:23:02:27 >> This is your US Bank 01:23:04:04 ATM check card. 01:23:05:29 You can use it to make purchases 01:23:07:11 anywhere Visa's accepted, 01:23:09:04 and also make withdrawals 01:23:10:17 at an ATM. 01:23:12:05 Well congratulations, 01:23:13:10 and thanks for coming in. 01:23:15:03 >> Narrator: When teens 01:23:16:08 get their own checking accounts, 01:23:17:20 the object is not 01:23:18:25 to make spending easier. 01:23:20:05 It's to help them learn 01:23:21:03 the important skills 01:23:22:06 of money management, 01:23:23:14 while still living at home, and 01:23:25:01 while you can still guide them 01:23:26:14 and help them avoid problems. 01:23:29:01 >> So what just happened? 01:23:30:07 >> I got $20. 01:23:31:17 >> Yeah, that's what happened 01:23:32:17 here. 01:23:33:14 But what just happened 01:23:34:13 over at the bank? 01:23:35:17 >> Twenty dollars got taken 01:23:36:19 out of my checking account. 01:23:37:19 >> And now what are you 01:23:38:19 going to do? 01:23:39:19 >> Save the receipt 01:23:40:21 and write it down. 01:23:41:26 >> Bingo! 01:23:42:24 I think we've got a winner! 01:23:44:02 Hey, how about buying us 01:23:45:02 a cup of coffee 01:23:46:05 with some of that? 01:23:47:09 >> It's for my bus fare, 01:23:48:08 remember? 01:23:49:10 >> Only kidding. 01:23:50:17 Hey, let's go shoot some hoops. 01:23:52:19 01:23:53:19 01:24:12:23 slate 10 01:24:22:23 01:24:25:05 § § 01:24:29:05 01:24:37:14 >> Narrator: Is it wise for 01:24:38:17 a teen to have a credit card? 01:24:40:08 You may think it's pretty risky, 01:24:41:26 even if he or she 01:24:43:00 already has a debit card 01:24:44:12 and has used it responsibly. 01:24:46:15 Of course, debit cards only work 01:24:47:26 if there's money in the bank. 01:24:50:08 Credit cards, on the other hand, 01:24:51:23 offer the temptation 01:24:52:24 of buy now, pay later. 01:24:54:21 They even work 01:24:55:23 with no money in the bank, 01:24:57:01 because the money is advanced 01:24:58:03 as a loan. 01:24:59:21 But if that part about pay later 01:25:01:04 doesn't happen on time, 01:25:02:21 credit cards 01:25:03:23 can plunge both teens 01:25:04:25 and adults into serious debt. 01:25:07:21 So what's the answer? 01:25:11:01 About a third of all 01:25:12:02 high school students 01:25:13:03 use credit cards, 01:25:14:08 and those under the age of 18 01:25:15:11 can get one if a parent 01:25:16:15 or guardian co-signs 01:25:17:29 on the account. 01:25:19:08 Once they turn 18, they can 01:25:20:20 sign up all on their own. 01:25:22:19 That's when those tempting 01:25:23:20 credit card offers 01:25:24:20 start coming in. 01:25:26:06 Before then, some parents 01:25:27:10 help their teens under 18 01:25:28:17 ease into the world 01:25:29:22 of credit cards 01:25:31:00 by co-signing for an account. 01:25:32:16 There are two practical reasons 01:25:33:18 for this. 01:25:34:23 Reason number one: 01:25:36:07 Parents can help teach their 01:25:37:16 kids how to use credit cards 01:25:39:02 wisely, before they go off 01:25:40:13 on their own or off to college. 01:25:43:08 But parents should stress 01:25:45:01 that navigating the potential 01:25:46:16 risks of credit cards 01:25:47:22 can be like walking through 01:25:48:27 a minefield. 01:25:50:15 Considering the late fees, 01:25:51:29 high interest rates 01:25:53:04 and other lurking dangers, 01:25:54:20 one false step, 01:25:56:00 and teens may see their finances 01:25:57:16 go up in smoke. 01:25:59:21 It's critical they understand 01:26:01:06 that credit cards are not a form 01:26:02:10 of supplemental income! 01:26:04:18 Reason number two: 01:26:06:06 Once teens have used 01:26:07:13 a credit card wisely, 01:26:08:21 and have consistently 01:26:09:27 paid it off on time, 01:26:11:13 they'll start building 01:26:12:17 a good credit rating. 01:26:14:04 That will help them get loans 01:26:15:11 in the future for education, 01:26:17:00 automobiles and even a home. 01:26:19:20 Spending on credit can be 01:26:20:27 a powerful financial tool 01:26:22:11 for teens and adults, 01:26:23:26 as long as that pay later part 01:26:25:10 is never ignored. 01:26:27:03 The trick is to realize 01:26:28:05 that every credit card purchase 01:26:29:12 is actually a loan 01:26:30:20 that has to be paid off, 01:26:31:29 with real money. 01:26:33:29 01:26:34:29 01:26:48:16 slate 10 01:26:58:16 01:27:01:00 § § 01:27:05:00 01:27:13:02 >> Narrator: What do 01:27:14:03 parent-teacher meetings 01:27:15:14 have to do 01:27:16:16 with financial success? 01:27:18:03 First of all, consider 01:27:19:09 how big a role education plays 01:27:20:25 in just getting a job. 01:27:22:26 A high school graduate is almost 01:27:24:08 twice as likely to have a job 01:27:25:27 as a person who never graduated 01:27:27:13 from high school. 01:27:29:17 And then, a college graduate 01:27:31:15 is almost twice as likely 01:27:32:27 to have a job as someone 01:27:34:03 with a high school diploma. 01:27:35:20 So every extra year of education 01:27:37:16 means you have a much better 01:27:38:21 chance of being employed. 01:27:41:02 And what about income? 01:27:43:12 Well, the average high school 01:27:44:23 graduate makes almost 40% more 01:27:46:22 than a dropout. 01:27:48:07 For example, if a dropout 01:27:49:27 made around $20,000 a year, 01:27:52:05 by comparison, a high school 01:27:53:29 graduate would earn 01:27:55:07 at least $7,000 more. 01:27:57:17 And similarly, a college grad 01:27:59:18 would earn over $17,000 more 01:28:02:01 than that high school graduate, 01:28:03:21 for a total of nearly $45,000. 01:28:06:21 For every year a child 01:28:07:25 continues to stay in school, 01:28:09:18 his or her earning power goes up 01:28:11:05 around 15%. 01:28:13:05 With education, the numbers 01:28:14:15 keep rising and rising. 01:28:17:00 Research shows 01:28:18:19 that when parents are involved 01:28:19:29 in their children's education, 01:28:21:18 the kids do better in school. 01:28:23:18 Parents can help them 01:28:24:22 towards greater achievement 01:28:26:01 in three ways: 01:28:27:22 Help their kids with homework; 01:28:29:11 Always talk with them 01:28:30:14 about school; 01:28:31:26 Help them manage their time. 01:28:34:15 Parents who stay informed 01:28:35:26 have higher-achieving children. 01:28:38:14 >> If we believe that education 01:28:39:26 is important, as I do, we have 01:28:41:06 to model that for our children, 01:28:43:11 and convey the message in every 01:28:45:01 way we can, both by doing, and 01:28:47:09 talking, and being involved. 01:28:50:02 >> It's the school's job 01:28:51:04 to work with parents, 01:28:52:14 so don't hesitate 01:28:53:12 to visit your child's school 01:28:54:26 or talk to the teachers, 01:28:56:07 in person or by phone. 01:28:58:16 Dropping out of school is 01:29:00:02 a process that begins early on. 01:29:02:11 So, if your child seems 01:29:03:15 to be struggling in any grade, 01:29:05:07 it's time to meet with teachers 01:29:06:14 and the school counselor 01:29:07:19 to talk about ways to help 01:29:08:23 your child get back on track. 01:29:10:28 Many schools provide alternative 01:29:12:17 programs that can help prepare 01:29:14:10 students for the kind of 01:29:15:25 employment and income 01:29:17:08 they deserve as adults. 01:29:19:10 >> Not every student 01:29:20:10 learns in the same way. 01:29:21:26 So, sometimes we have to 01:29:23:13 generate or create alternative 01:29:25:01 programs to meet their learning 01:29:26:18 needs, their specific learning 01:29:28:24 needs of students who might not 01:29:31:06 fit into that traditional 01:29:32:16 setting. 01:29:33:21 >> My daughter just started 01:29:34:23 at Shabazz last quarter, 01:29:36:09 after having a very difficult 01:29:37:27 experience at a large school, 01:29:39:14 which was pretty anxiety 01:29:40:25 provoking and not comfortable 01:29:42:28 for her. 01:29:44:07 So for her, she comes home every 01:29:45:18 day saying she loves school. 01:29:47:21 >> So that students can become 01:29:49:05 re-engaged in the learning 01:29:50:10 process, and get a new 01:29:51:11 opportunity to be successful. 01:29:53:20 >> He likes to talk, 01:29:54:24 and he loves ideas. 01:29:55:26 And there's 15 other kids 01:29:57:18 in the room, and he's had to 01:29:59:12 really learn to interact 01:30:01:18 with other students. 01:30:03:09 And the teachers here have been 01:30:05:01 so good with helping him 01:30:06:21 learn how to do that. 01:30:08:11 And that's been a great thing 01:30:09:21 that's happened here as well. 01:30:11:13 >> Narrator: Whether 01:30:12:15 it's at an alternative school, 01:30:14:06 or through parents' involvement 01:30:15:16 to keep their kids advancing 01:30:16:18 at any school, 01:30:17:29 every extra year of education 01:30:19:18 results in better 01:30:20:19 job possibilities 01:30:21:27 and greater income potential 01:30:23:07 for those kids. 01:30:25:07 01:30:26:07 01:30:27:07