Daughter Knows Best

“Your child is not too young to learn wealth building habits.”

“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 when my 13-year-old 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 for which I have paid full price.

Ms. Olivia, on the other hand, is into the “casual luxury” clothing. On a recent trip to New York with other teenagers from her dance studio, 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 said, “I know you are not buying this child any clothes up in here.” While other mothers were frowning as they pulled out their credit cards, I had a smile on my face because Olivia and I walked out without spending a dime.

It’s not enough to tell your children what they should do; it’s better to show them. Olivia works for her money and the agreement we have is the money she earns can be spent on anything she desires—within reason—provided she tithe and save or invest half of it.

After one particular payday, she insisted on making the decision on her own on where to invest her money. After conducting most of her research at www.sharebuilder.com, she decided to invest in Abercrombie and Fitch and Aeropostale stock. They just happen to be two of her favorite retail outlets. And, it just happens to be an industry (clothes) where teens—or their parents—spend a lot of money. Now that’s what I call daughter knows best! Here are a few ideas you can use to steer your child toward a bright financial future. Learn More about Deborah Owens: Read her bio For wealthy lifestyle tips, view a sample chapter of Deborah Owens’ book, Confident Investing at www.deborahowens.com

Wealth Building 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. As the money begins to accumulate, they will see the results of self-control and not giving in to immediate gratification.

Wealth Building Teen Tip #2

Encourage and help them find a talent or an enterprise that will create an income stream for them. My son, Brandon was a soccer referee at 11 years old. He opened a mutual fund where half of his earnings were invested. Now, as a college student, he earns money through life-guarding and pool operations and he was able to access some of his funds for his college expenses.

Wealth Building Teen Tip #3

Give the gift that keeps on giving—stock. At birthdays and holidays, a share of stock in the company that makes your child’s favorite video game or athletic shoe plants an interest in wealth building. Encourage family and friends to gift shares of stock or write checks to a mutual fund in your child’s name, then watch the wealth building seed 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 and don’t be surprised if you learn a few things as you encourage your children to be good stewards of their resources.

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