Money Memories Part 1

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- Narrator: How can you say no to your kids while you're shopping without all the arguments?

(register beeping)

- Oh. No, we are not spending money on candy! 
- But Caroline-- 
- I'm not talking about Caroline. You took the candy bar. 
- Just let him have it! Let him have it this time. 
(register beeping)
 
- Look at that. How could it be so much? And where did that come from? 
- Narrator: So what's the answer? How can you get a handle on shopping, without so much drama and stress?

Kids want lots of things, some that require new spending, but many that don't.

- Matthew, did you brush your teeth yet? 
- No. 
- You know what I said. No games until you brush. 
- Okay. 
- Narrator: For kids, learning to wait is a habit that puts all their wants into proper perspective, whether it's doing homework before going out to play, helping with the dishes before watching TV, or waiting before you buy something for them. And for parents it's helpful to make a shopping list before you leave for the store. And then stick to it. A list helps you stay on track, and also helps you control your kid's sudden impulses. 
- We're low on milk and fruit. 
- Okay. 
- Caroline, what are you doing with the phone? 
- I'm just calling Michelle. 
- That can wait till we get back. Come on, Matthew, let's go. Ready?

- Can we get some ice cream? 
- Not today, Caroline, ice cream's not on the list.

- Maybe we can get it next time. 
- Narrator: Having a well thought out list can help both kids and parents budget effectively, and avoid those impulses to spend money carelessly.

 Money Memories Part 2

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- Narrator: How can you help your kids get into the habit of saving? 
- All right, time to make some banks. 
- Narrator: The fact is, it's never too early for them to learn this valuable habit. Helping younger kids make banks from common items can be a fun activity. And making more than one bank helps them learn a lot about planning. 
- Save, give and spend. Now see, you can put money in here that you want to spend pretty soon. But mom and I really want you to save up for bigger things. 
- Yeah, like the animal coloring book! 
- Yeah, right! Or maybe even some other things later on, too. 
- Narrator: No matter how little it may be, kids can practice saving with cash from birthdays, chores, even coins found lying around. 
- Look! I found a quarter! And a dime! 
- Can you tell me why we make this special bank for giving? 
- Because some little kids don't have money. And I could help make them not be so sad. 
- Yeah! 
- Narrator: Learning to feel good about being generous is a wonderful thing for kids. It can help them grow up to be responsible adults. And over time, young kids will be fascinated at how the money can accumulate in their very own banks. 
- I'm ready to go, dad. 
- All right, great. Let's go. 
- When you go out to do your own banking, take your kids along. They'll learn a lot, just by seeing what you do and all that happens at a bank or credit union. You may take it for granted. But remember, it's probably all new to them. 
- Hi, Kara, my name's Amy. 
- Hi. 
- It's nice to meet you today. 
- Narrator: And as your kids get a little older, why not let them open their own savings account? 
- Open a savings account. Do you have a deposit today for your account? 
- Yeah. 
- Narrator: Most financial institutions have special no-fee accounts that make it easy to get started with just a modest deposit. 
- Congratulations, Kara, for depositing money into your savings account today. As you can see from this receipt, you deposited $32.56. 
- Cool. 
- All right! 
- Narrator: When kids have a savings account, their money is out of sight, and often out of mind. So they're less likely to spend it impulsively, while planning for the future. Over time, as kids continue to use a savings account, they also get the extra boost of seeing how interest is added. 
- So you can enter the amount you put in the bank into this box here. 
- Narrator: There are several Web sites they can go to that compute compound interest for any amount, based on current interest rates over time. These days many, if not most adults live paycheck to paycheck. It's like walking on a high wire without a safety net. But you can help your kids avoid that peril when they grow up, by teaching them the savings habit! 
- Whatcha got there? 
- Savings. 
- Wow! 
- Whoa! 
- That's a lot!

 Money Memories Part 3 
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- Narrator: How do you teach your children that there's more to a purchase than just the initial cost? 
- Dad, you've got to admit, it's a good deal. 
- Well, it runs well. And it seems to check out on all the safety points. 
- So, can we sign the papers now? I've got the down payment. 
- Hang on a minute! That down payment is just the beginning, you know. You and I need to go over all the extras. But first, I promised Danika we'd swing by the Humane Society. 
- Extras? 
- Narrator: When a teen is about to get that first car, it's a really big deal. It's also financially complex. No wonder teens may not grasp all the details at first.

- Come on! 
(dogs barking)
 See? He likes me. Look how cute he is! 
- He really is. 
- I promise I'll feed him and brush him. 
- I know, I know. And we have to promise the folks here to take good care of him, too. But we need to talk about a few doggie extras first. 
- Extras? 
- Narrator: Kids need to learn about those extra costs. Taking time to think, rather than buying something on impulse, is a really important lesson.

- So, what have you found out? 
- Well, it looks like I'd have to pay the bank about $80 a month on this loan. I can handle that easily with my job. 
- $80 a month? Wait a second, how long will this loan last? 
- Uh, 96 months. 
- 96 months? That sounds to me like eight years! Do you think that old car will last that long? 
- I'm not sure. 
- Me, neither. Better plan on making a larger monthly payment, so you don't pay so much interest. And also, you pay the loan off much faster. Then, take a look at all the other extras. 
- Narrator: Cars are notorious for their hidden costs. Some are predictable. Others, like repairs, are not. But pets can be equally surprising to someone who hasn't had one before. 
- See, this is a pet cost calculator. Here you put in the fee that the shelter charges, $145. Mom and I will help you with that. And dog food. But look here, there's more. 
- Food dish? 
- Sales tax? 
- Collar? 
- Registration fees? 
- Leash? 
- Oil changes? 
- Training? 
- Insurance?! 
- Pooper scooper?! 
- Gasoline every week?! 
- Christopher, we'll try to get you in on our car insurance, as long as you keep your grades up, so the rates won't be so high. But there are lots of other extras for cars. And for dogs. So you both need to wait and save until you have enough to help pay for all the costs. 
- Narrator: Learning to calculate the total cost of ownership helps kids prepare for the bigger expenditures they'll face as adults, like renting an apartment or buying a house.

 Money Memories Part 4

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- Do you feel like every time you turn around, your kids are asking you for money? 
(car horn honks)
 
- Mom, they're here. I need the $5! 
- It's on the table by the door. Have fun skating. Be careful!

- It's only $3.95. Please? 
- Okay, okay.

- I need $10, remember? 
- No, I do not remember. 
- Narrator: There are other ways to deal with situations like these that can help both you and your kids, ways that can avoid a lot of the pestering.

Actually giving kids their own money to spend is one way to help them understand what things cost, and lets them practice making decisions about how to spend their money. 
- Here's the deal. From now on, I'll be giving you $20 every month. And you get to decide how to spend it. 
- Every month? Cool! 
- Now, instead of asking me for money every time you want something, you'll be the one to decide if you can afford it. Can you handle that? 
- Yes! Totally! 
- Okay, here you go. 
- Narrator: With this plan, you still pay for all your child's essential needs: housing, meals, clothing, and sometimes even treats. But you don't have to say yes or no to every sudden whim. 
- This is what we call budgeting. 
- Duh! I have heard of budgeting, mom! 
- Well this is how it's gonna work in this house. First, make a list of everything you might want to do or get this month. 
- Hmm, movie... 
- Narrator: When you give your kids control over money, they will get hands-on experience budgeting and making decisions about how to use it responsibly. 
- Or that bracelet. 
- Last week, you were begging for music. Don't you want that on your list? 
- Oh, yeah. 
- Now put down how much each of those will cost. Then you can start to figure out which you really want, and which you probably can't afford.

- So many cool ideas we could do. 
(car horn honks)
 
- Oh, I have to go. Bye! See you after the game. 
- Okay, have fun!

- Narrator: And what happens if their first attempts at budgeting aren't entirely successful? 
- Can I please have some money to go to a movie with Nyika and Aidan? 
- You know, that's supposed to come out of your budget. How are you doing this month? 
- I guess I'm kind of out. 
- Wow, that's gotta hurt. 
- Can't I just have the money this time? Please? 
- You know that's not the deal. The deal was you get $20 a month and manage your own budget. I think next week is when you'll get your next $20. 
- But Nyika and Aidan! 
- I know it's tough. But that's what you agreed to. You know, it's your job to manage that budget. Maybe this time you could think about having your girlfriends over for a movie. 
- Narrator: Sooner or later, everyone makes mistakes managing their money, but preferably not big mistakes.

Letting your kids learn from their mistakes early in life, before they're out on their own, will go a long way to help them make the right choices and be financially responsible, and avoid those big mistakes.

 Money Memories Part 5

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- Narrator: How do you teach your kids to sort through the claims that advertisers make? 
- The basket is still ten feet high. The free throw line is still 15 feet away. 
- Hey, those are the ones Matt has! 
- Narrator: For kids, some products can have near magical powers. 
- But now I'm faster. 
- Matt's got those? 
(mutes TV)
 
- Hey, the sound! 
- Just a minute. So, do you think those shoes make you faster? Did they make Matt faster? 
- I don't know. Maybe? 
- You know, just because it says so in a commercial, doesn't mean that it's true. 
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- Hi, my name is... 
- Narrator: Catchy slogans, famous people, special effects and animation add excitement to TV ads, and a magnetism that may have nothing to do with the product's value. 
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- Wha--? Sorry, Coke. 
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- Narrator: You can help your kids understand how this works. 
- Okay, so what do you think about this one? 
- It's kinda cool. 
- And what do they want us to buy? 
- I don't know. Oh! There's water bottles! 
- So if I drink that brand, I can do those tricks? 
- Mom! 
- Narrator: Like adults, kids take for granted all sorts of fantastic situations seen in commercials. But though incredible, this advertising magic can create strong connections to brand name products. 
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 If you help them critically analyze commercials, kids can become smarter about craving certain products. For example, how believable is the action? What kind of music is used, and what would it be like if you turned it off? Do celebrities use the product? And does that really matter? Will this product make you more popular or happier? Do you really even need this product? 
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- It's on me to be faster than the game. 
- Tell me something, Alec. No, seriously, are there any really cool kids in your class? 
- Well, yeah, like Matt. 
- And some who aren't so cool, right? 
- Uh-huh. 
- So if an uncool kids put on those shoes, would he all of a sudden be really, really cool? 
- No way. 
- Narrator: By pointing out some of these advertising tricks, parents can help kids realize that they are being sold. And once they better understand what's happening in commercials, kids have the capacity to become smarter consumers, who can save money, both for you and themselves.

 Money Memories Part6

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- Narrator: Where do your kids learn their money habits? Even if you never say anything to them about money, kids are keen observers and will likely learn behaviors based on what they see you do. Do you buy things, perhaps with credit cards, for which you really don't have the money? Do you keep track of what you spend?

- Hey bro, guess what? We're all set for the Super Bowl, big time. I just got a 50-inch plasma! 
(laughs)
 They almost couldn't get it in the apartment door! 
(laughs)
 They've got this deal now where they don't charge you for 90 days. Now we can put the old 32-incher in Caroline's room. 
- Caroline, I need you to run down to the gas station for some bread. 
- Uh, do I have to? 
- Yeah, we forgot to get it at the store. Use your money. I'll pay you back later. 
- But you still owe me $5 from last week. Remember, you told me to save my birthday money from Grandpa. 
- I know, I know. I said I'll pay you back later. Now go. 
- Gotta go. 
- Narrator: Kids will easily fall into bad money habits if that's what they see at home. 
(referee whistle blows)
 
(video rewind sound effect)
 But they'll learn good money habits if you demonstrate them yourselves, and if you show them specific ways to get the best deals with the money you have, and the money they have. 
- Even though there's a coupon, we don't need shampoo this time. But we do need bread for lunches. 
- Here we go. 
- Beautiful. 
- Narrator: If your kids see you comparing prices and looking for the best deals, then they are much more likely to do that themselves. 
- Caroline, can you tell which is a better deal? Look at this second line below the full price. 
- Well, this one's 25.4 cents per ounce. And this one's 20.1 cents. 
- But they're the same brand, right? 
- Yeah, but this box is bigger. 
- If it's something we use a lot of, it can actually be cheaper to get more at one time. Throw it in the cart.

- Narrator: Being a good role model can save you money right now. But for your kids, it can translate into a lifetime of smart money habits.

 Money Memories Part 6

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- Narrator: Does the idea of your teenager having a checking account or debit card make you nervous? 
- See, if I had a card like that, I wouldn't have to bug you for cash all the time, or get it out of my savings account. 
- Know what? You're right. You're not a kid anymore. 
- Narrator: When kids are young, using cash is the most direct way to understand money. If they receive a dollar, it's right there, ready to save or spend. And if they spend that dollar, they immediately know it's gone. But as kids get older, and need to manage larger sums of money, using cash all the time isn't so practical. 
- So if you had one of these, how would it take the place of your cash? Does money just magically get loaded into it? 
- I do have a job, remember? And I do get paychecks! 
- Paychecks?! Hmm, now you're talking my language! Hey, Mr. Moneybags, why don't you carry that bag for your mother? 
- Maybe we should see if the bank will let you open your own checking account, you know, in addition to your savings account. But first, I think you should help us out with ours. 
- Narrator: Even though most people are writing fewer paper checks these days, a checking account is still the foundation of nearly everyone's finances. Whether they end up using checks or debit cards, teens need to learn how to manage these accounts. 
- Here's where dad and I write the check number, the date we wrote it, and who we wrote it to. And what goes over there? 
- The amount you paid, right? 
- Right, and when should you do all of that? 
- Right away? 
- You got it. 
- Narrator: By carefully explaining the basic mechanics of a checking account, parents can help prepare their kids to be successful money managers, and avoid getting caught with insufficient funds or costly fees. 
- And here's something else to do right away. At the store, mom didn't pay with a check. She used a debit card, and then they gave her a receipt. What do you think is the first rule of debit card receipts? 
- I don't know. 
- Rule number one: Save the receipt. And what might be the second rule? 
- Uh, write it down? 
- Bingo! The only difference between this and a check is that there's no check number. All the other entries are the same. And the money still comes right out of the checking account, even faster. 
- Narrator: Today, many banks will open checking accounts for teens ages 13 to 17 with a parent's signature. They often accept direct deposit of the teen's paychecks, instantly providing a secure place for their funds, and a safe way for them to pay for some things with their own checks. Plus, these special accounts offer parental controls and will alert you if there's ever a problem. 
- This is your US Bank ATM check card. You can use it to make purchases anywhere Visa's accepted, and also make withdrawals at an ATM. Well congratulations, and thanks for coming in. 
- Narrator: When teens get their own checking accounts, the object is not to make spending easier. It's to help them learn the important skills of money management, while still living at home, and while you can still guide them and help them avoid problems. 
- So what just happened? 
- I got $20. 
- Yeah, that's what happened here. But what just happened over at the bank? 
- Twenty dollars got taken out of my checking account. 
- And now what are you going to do? 
- Save the receipt and write it down. 
- Bingo! I think we've got a winner! Hey, how about buying us a cup of coffee with some of that? 
- It's for my bus fare, remember? 
- Only kidding. Hey, let's go shoot some hoops.

 Money Memories Part 7

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- Narrator: Is it wise for a teen to have a credit card? You may think it's pretty risky, even if he or she already has a debit card and has used it responsibly. Of course, debit cards only work if there's money in the bank. Credit cards, on the other hand, offer the temptation of buy now, pay later. They even work with no money in the bank, because the money is advanced as a loan. But if that part about pay later doesn't happen on time, credit cards can plunge both teens and adults into serious debt. So what's the answer? About a third of all high school students use credit cards, and those under the age of 18 can get one if a parent or guardian co-signs on the account. Once they turn 18, they can sign up all on their own. That's when those tempting credit card offers start coming in. Before then, some parents help their teens under 18 ease into the world of credit cards by co-signing for an account. There are two practical reasons for this. Reason number one: Parents can help teach their kids how to use credit cards wisely, before they go off on their own or off to college. But parents should stress that navigating the potential risks of credit cards can be like walking through a minefield. Considering the late fees, high interest rates and other lurking dangers, one false step, and teens may see their finances go up in smoke. It's critical they understand that credit cards are not a form of supplemental income! Reason number two: Once teens have used a credit card wisely, and have consistently paid it off on time, they'll start building a good credit rating. That will help them get loans in the future for education, automobiles and even a home. Spending on credit can be a powerful financial tool for teens and adults, as long as that pay later part is never ignored. The trick is to realize that every credit card purchase is actually a loan that has to be paid off, with real money.

 Money Memories Part 8

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- Narrator: What do parent-teacher meetings have to do with financial success? First of all, consider how big a role education plays in just getting a job. A high school graduate is almost twice as likely to have a job as a person who never graduated from high school. And then, a college graduate is almost twice as likely to have a job as someone with a high school diploma. So every extra year of education means you have a much better chance of being employed. And what about income? Well, the average high school graduate makes almost 40% more than a dropout. For example, if a dropout made around $20,000 a year, by comparison, a high school graduate would earn at least $7,000 more. And similarly, a college grad would earn over $17,000 more than that high school graduate, for a total of nearly $45,000. For every year a child continues to stay in school, his or her earning power goes up around 15%. With education, the numbers keep rising and rising. Research shows that when parents are involved in their children's education, the kids do better in school. Parents can help them towards greater achievement in three ways: Help their kids with homework; Always talk with them about school; Help them manage their time. Parents who stay informed have higher-achieving children. 
- If we believe that education is important, as I do, we have to model that for our children, and convey the message in every way we can, both by doing, and talking, and being involved. 
- It's the school's job to work with parents, so don't hesitate to visit your child's school or talk to the teachers, in person or by phone. Dropping out of school is a process that begins early on. So, if your child seems to be struggling in any grade, it's time to meet with teachers and the school counselor to talk about ways to help your child get back on track. Many schools provide alternative programs that can help prepare students for the kind of employment and income they deserve as adults. 
- Not every student learns in the same way. So, sometimes we have to generate or create alternative programs to meet their learning needs, their specific learning needs of students who might not fit into that traditional setting. 
- My daughter just started at Shabazz last quarter, after having a very difficult experience at a large school, which was pretty anxiety provoking and not comfortable for her. So for her, she comes home every day saying she loves school. 
- So that students can become re-engaged in the learning process, and get a new opportunity to be successful. 
- He likes to talk, and he loves ideas. And there's 15 other kids in the room, and he's had to really learn to interact with other students. And the teachers here have been so good with helping him learn how to do that. And that's been a great thing that's happened here as well. 
- Narrator: Whether it's at an alternative school, or through parents' involvement to keep their kids advancing at any school, every extra year of education results in better job possibilities and greater income potential for those kids.