Raising Money Smart Kids!

Chak Khan Foundation and Prosperity4Kids, Inc. Open the NASDAQ

The Chaka Khan Foundation, http://www.chakakhanfoundation.org  and Prosperity4Kids, http://www.Proserity4Kids.com  have teamed together to educate, inspire and empower children to achieve their full potential, no matter what their circumstances may be. They have created a program that will give children the foundations to succeed in life, which are Education, Financial Literacy, Nutrition, Mentorship and the Physiological support when needed. They believe giving kids all of these elements will help build their self-esteem, confidence, and belief they can achieve anything they put their minds to now and in the future.

 

When you give a child the foundations to create success you empower them to become all they can be. The Chaka Khan Foundation provides unique opportunities the children would not otherwise experience - CAA Talent Agency, Bear Sterns Day and the brand new tutoring twice a week by USC students to bring the children up to grade level proficiency. Prosperity4Kids provides the missing element of teaching kids how to manage their money by understanding the power of saving & investing, giving back to their communities and spending money wisely. Financial and Academic Education is the key to lifelong success, and coupled with professionals who will teach kids about nutrition, diet and overall personal health. 

Visit the www.ChakaKhanfoundation.org <http://www.chakakhanfoundation.org/>   

No More/Back-to-School Supply Lists

Because of the new laws in the Consumer Product Safety Improvement Act retailers are choosing not to offer Back to School List in their stores, for fear of being fined for suggesting items to children under 12 that contain certain amounts of lead, or phthalates. For 16 years I have used a list to buy my kids supplies, and when you don’t have a list, you tend to over spend. Back to school shopping is the second most expensive time of the year behind the holiday season; the average family spent $600 on back to school supplies in 08 totaling $54.1 billion on items for school, clothing and college. Walking into any store without a list is prime for over spending, to help we have created a typical printout for essential Back to school items you use in grades 1st-12th grade. Just click here 

Starting now will save time, money and the stress of over spending with Back to School ...Here’s how...

First, using the printable list take inventory of reusable supplies at home leftover from last year, pack them away, check these items off your list and keep this list with you in your purse. 

Second, all the stores run online weekly ads from Sunday to Sunday. Sign up for the email alerts and check what is available on your list before going to the stores. No need to go shopping if the stores don’t have what you need. Techbargains.com has coupons for the stores below and many others.

Staples – Has a sneak peak of the week ahead and special saving on back to school items, example: 1” Avery Eco-Recyclable binders for $1.98, Dollar Days and Teacher Appreciation day, where the teachers can come in and have free breakfast and receive a free gift. 

Office Depot – Offers Mobile Alerts where you receive offers sent to your cell phone, of what’s on sale right now, Example: Black Sharpie’s 12 packs for $5.99, split with 3 friends and each Sharpie is a steal. 5% back to schools program and a Star Teacher Program, with rewards.

Target – has school supplies out already and I picked up 24 packs of crayons for .24 cents, 4 college ruled multi pack of notebooks for $1.47 and college ruled paper for .57 cents. 

Thirdly, visit A2zdeals.com and down load coupons from your favorite department stores. Take inventory of your child’s clothing and only purchase what is needed to start school, no need to buy a wardrobe before school starts, styles change quickly and one or two outfits are plenty to start off with. The weather stays warm into October, making summer clothes last longer. Buy just the basics, my family loves the KB socks from Costco, can’t beat 9 colorful pairs for $9.99. Buy one bunch and your set for the start of school.

Starting early will save a substantial amount of money. Waiting till the last minute will cost you more money and time trying to find certain items in stock. Starting now will insure that every one in the family starts school with what they need, less stress and more money in the bank.

Help Your Teenager Get a Job

My daughter just turned 16, and the first thing she wants this summer is get a job! I didn’t have the heart to tell her according to the Bureau of Labor statistics, the teenage unemployment rate is 21.7 percent, up from last year's 15.8 percent -- the highest rate in nearly 20 years.

She loves to earn money and has been working odd jobs since she was 12. Now wants a real job, as she states, 'to meet new people and experience what it’s like.' So I sat with her, and we went over several ways she can set herself apart from the rest of the applicants vying for the same position.

First, I was extremely honest and explained that the job market will be tough, but not impossible, and she will have to show the employer beyond a reasonable doubt that she is right for the job. I asked her simple questions like, "Why should they hire you?" and "What do you offer that others don’t?" We talked a lot about defining her strong points. If your child can answer these questions positively and confidently, then they will have a greater chance of landing the job. Explain to your child they must create value for the employer -- they must be an asset and not a liability.

Many employers' biggest complaint with young workers today is their lack of work ethic. It is important that we explain to our children that slacking off while on the job will get them fired. 

Next I asked, “What are you good at, what do you enjoy and where do you see yourself working?” My daughter is health conscious and explained to me that fast food probably would not be her favorite environment, but gyms and healthy restaurants would. It’s important that we help our children look for a job in an environment they enjoy.

I also asked her what she sees herself doing in the future. She loves being healthy and is interested in sports nutrition, sports medicine, and psychology, which open a different area of internship positions. These can give her insight to the job or profession she might want to pursue.

Encourage your children to look in an area that is interesting and something they enjoy. Their first job can be a stepping-stone into their future career. Testing out what you think you might want to do can save your kids many years of wasted time. My daughter thought she wanted to be a soccer trainer, a coach or a director of a club, but after two years of training youth soccer when she was 13-15 year old, she realized it was not for her. There is nothing better than on the job training in an environment you might be interested in, and it can open doors down the road.

Children do not have to decide what they want to do just yet, but doing what you love and earning an income is a wonderful way to start. 

Disney Teaches Kids About Money!

The Epcot theme park in Orlando Florida opened up an exhibit with interactive games aimed at teaching kids ages 8-13 basic lessons in money! Saving, investing, goals and inflation. If you cant make it to Florida they have an online game you can play. Piggy Bank Adventure  It takes place in a small town called fiscalville... It's great, I love anything that teaches kids about money! The project was sponsored by T. Rowe Price and has been in the works since 2006. I must say the time could not be better ;)

To read full article

Interactive Website that Teaches Kids About Money

I just reviewed ING DIRECT’s new kids' website called Planet Orange. It is awesome -- and every kid and parent should check it out. I signed up and went through it as a kid would, and as you probably know, I am still a kid at heart. I also have the attention span of a nat! So if something can keep my attention, then it has a great chance at keeping a kid's attention.

The site is fun, educational, and has the right amount of play and learning mixed together. The kids can design their outfits, skin and hair color and pick out really cool accessories. There's a twist of course, because the outfits aren’t free, and they have to be purchased with Obux (Planet Orange's currency). Kids learn how to budget and are rewarded for finishing certain tasks and lessons.

You go on a mission through the concepts of earning, investing, saving and spending wisely. None of the lessons are too long or wordy. The characters, props, and towns are fun, colorful and engaging. At the end of each adventure there is a fun and quick quiz to review -- the repetition is great for reinforcing the concepts.

You can also purchase games with the Obux you earn. My son came home while I was playing “The Great Orange Escape,” and his first response was, “Wow mom, let me show you how it’s done.” He must have played it for 10 minutes straight, which is amazing considering he has my attention span.

I rate this website a 10: it gives the kids the most important lessons in money, without too much wording, reading or work.

This website is designed for 1st through 6th graders, that range is the most important time to teach kids about money. Don’t get me wrong -- it's never too late to teach anyone, including adults, about money. I didn’t even realize I had a problem until my late 30s. The sooner you create good habits, the fewer bad habits you will have to break later in life.

Kindergarten through 6th grade is all about creating foundations for kids, as they learn the three Rs, build character and create their life long habits. This age group has the most amount of parent participation in school, kids usually have one teacher for the day, and if kids start at this age learning how to save and invest their money their financial futures will be set. Imagine where you would be right now if you became educated in money and started saving and investing at a young age?

Times have changed, and in the last year they have changed drastically throughout the world. So we have to become proactive in teaching one of the most important life lessons of all: money. Breaking the cycle of financially illiteracy, starting with our kids, will be the best defense we have in protecting our own financial futures and our children’s as well.

Interview with Bob McCormick KNX 1070 Money 101

Through the month of April Kijiji.com & Prosperity4Kids, teamed up to spread the word about kids and money, we ended up doing interviews from L.A. to Chicago and everywhere in between. Listen to our latest interview on Kids and Money with Bob McCormick from KNX 1070 Money 101.

Download KNX Radio - Lori Mackey - Smart Spending 5-1.4.09

Download KNX Radio - Lori Mackey - Money Lessons 5.5.09

Kijiji is a free local family-friendly classified site that has just about everything, but personals! Kijiji found that the average household has over $600.00 of unused items. Now is a great time for some spring cleaning and teaching your kids how to earn some extra income! Help your kids identify items around the house and then take digital pictures of each item and upload them to the site. This is a perfect way for kids to see that there are other ways of earning money. If these items do not sell then you can donate them to a local shelter or charity.

Visit www.Kijiji.com and find a local site near you.

The Smarter Way to Pay an Allowance, When, Why? & How Much!

Allowance is one of the best tools for teaching your child the value of money. It can create good habits, break bad habits and change behavior. Don’t think of allowance as “Paying Your Kids” -- think of allowance as a tool for teaching financial literacy and an introduction to the wonderful world of money.

Children can start earning an allowance as soon as they know money gets them what they want. This depends on the personality of your child -- if at age 2 he wants anything and everything in sight, then it's time for some money lessons. If your child has little or no interest in wanting everything they see, then they are not quite ready for the fundamentals of allowance.

The amount you pay a child depends on the family income, not age or ranking. Think back to all of the things you bought your child in the last month that was not a necessity. Add up things like candy, videos, toys, CDs, trinkets and other extras. This will be the amount you should allow your child to earn throughout the month. It won't cost you any more money and may even save you some money in the long run.

Next, sit with your child and explain that they are going to start earning an allowance for certain chores, and from now on they are going to use their own earned income to buy the items that you used to buy for them. 

Allow your kids to earn money for anything that they are not doing right now! If your child is not making their bed, brushing their teeth, or cleaning their room, start with that. Experts say it takes 21 days to create a habit. Once your child gets in the habit of doing those chores automatically, you can stop paying for the previous chores and move on to other things like cleaning the bathroom, laundry, etc.

The next time you are going out into the market place, remind your child to bring their money. Now they will purchase the items you used to buy for them. You will probably find that your child will make better choices with their money versus your money and will probably think twice before letting go of their cash. If they find something they want, encourage them to do some research to find the best price. I always have my children visit Kijiji.com, which is a free, family-friendly, classified website. Your child will start to see that sites like these are full of items they might want, but they will also see this as another way to earn money by selling items that they have no use for anymore.

You can help your child understand that there are several ways to earn money besides allowance and open their eyes to the wonderful world of money. To receive our free guide on The Smarter Way to Pay an Allowance visit Prosperity4Kids.com.

Take it to the Piggy Bank

Jane Skinner from Fox News interviewed me today to talk about how smart kids really are with money! to see video click the link

Lori Mackey with Jane Skinner - Kids & Money

Kids savvy about money, Northwestern Mutual survey finds
By Megan Hupp
 
Posted: Apr. 15, 2009
 
Parents looking for the recession's silver lining, take heart. Your kids are savvier about money than you are, according to a Northwestern Mutual Foundation poll released Wednesday. 
The foundation, the charitable arm of Northwestern Mutual Life Insurance Co., surveyed 1,600 kids and adults via TheMint.org, a financial literacy Web site, between Jan. 8 and April 4. The survey found that respondents 17 and younger are more likely to save their money than adults 30 years and older. Young people are also less likely to charge credit cards with purchases they can't afford.
When asked, "If you spotted a great item at the mall that you couldn't afford right now, what would you do?" 57% of respondents 17 and younger said they would "put money aside each month until I have the full amount to buy it."
Only 6% said they would charge the item to a credit card. 
Asked the same question, 42% of respondents ages 30 to 45 and 41% of respondents ages 46 to 59 said they would save for the item. Of the 30-to-45 group, 14% said they would purchase the item with a credit card while 10% of the older group said the same.
The poll is part of a series of surveys on kids and money management. When asked how it feels to borrow money or charge a credit card, 14% of kids said they feel extremely nervous about debt. Only 6% of respondents over 30 felt the same. 
The data confirms historical evidence from the Great Depression and World War II that hard times breed more careful consumers. 
"Kids today could become the most money-smart generation since the 1940s," said Meridee Maynard, financial literacy expert and senior vice president for Northwestern Mutual, in a statement.
During the 1940s, the personal savings rate was around 25% in the United States. But between 2005 and 2008, the rate was about 1% - and in some quarters dropped into negative numbers, meaning Americans spent more than they saved. By January of this year, the savings rate had risen to 5%.
Mark Schug, professor emeritus at the University of Wisconsin-Milwaukee, said the savings rate isn't a foolproof measure of what's in Americans' savings accounts. But kids, he said, do mimic the saving and spending habits of their parents.
"When they see their parents act in a more frugal way, that's influential," said Schug, who is also the former director for UWM's Center for Economic Education.
Adult problems like job loss or salary freezes affect the entire household, Schug said, and children are often acutely aware of their parents' financial situations. Parents should talk frankly to their kids about spending, investing, saving and charitable giving. 
Historically, kids learned such lessons in school. In today's economy, parents should expect a push to bring back financial education, he said.

"Parents can talk to their school about a place in math or social studies curriculum where lessons on basic economics and personal finance could be included," Schug said.

Lori Mackey with Jane Skinner - Kids & Money

What am I Saving For?

What am I Saving For? Kids ask this question a lot…

Why do I have to save?

If I save I have less… so on and so on…

Then, I say...

Actually when you save you have more!

What?

Yep… when you save your money, 1st, you have more money; 2nd that money will make more money and eventually over time you will have a massive bank account!

How…

 We call it the 10/10/10/70 rule…

You don’t have to save everything just a little bit out of every dollar!

Look at it this way, you have a dollar and you go to the store and you spend the dollar, now you are left with nothing except the item you bought, you have spent 100% of what you have, you have empty pockets! 

But if you took 10 cents and saved it, took 10 cents and saved it for investing, saved 10 cents for giving, you now have 70 cents you can spend.

So you go to the store you spend all of the 70 cents, its ok! Because you still have the 20 cents that you saved at home!

Now that money will earn money if you save and invest it, in the right place!

So you have 20 cents… it is sitting in the bank and it earns an interest rate of 10% by the end of the month your money has earned another .02 cents and you did absolutely nothing to earn that money… and now you have .22 cents in the bank!

Lets add some zeros to that and see what happens! 

$20.00 earns $2.00

$200.00 earns $20.00

$2000.00 earns $200.00

You see the more money you save and invest the more money you earn!

Saving money is the easiest way of earning money with out having to work for it!

Your money can earn money 24 hours a day 7 days a week!

So the moral is … Don’t think of Saving Money as Having Less… Think of Saving Money as Having More!

Check out our new activity Sheet for Kids 

What Does Saving Money Really Mean? Download Activity Sheet

Money Mama has a New Price!

We are excited to announce that we have found a new vendor for the Money Mama Piggy Banks and we could not wait to pass the saving on to you! We are able to reduce the price for these hand made little piggies from $29.95 down to $24.95 and the Children’s book will be reduced from $19.95 to $15.95. Which will bring the cost for the two together down to $40.00 when bought together, Yahhhhhhh!

Rather than wait for the new banks and books we are discounting our inventory to reflect the new prices starting today! We are extremely excited and know that this has always been an obstacle for our customers!

With the state of the economy and our financial banking institutions failing, I can say the most important education we can give or children is a financial education, and I thank you for joining the fight against financial illiteracy and changing our next generations idea, habit and attitudes around money!

Visit Prosperity4Kids Today and set your kids on the Road to Wealth!