Business

<< Previous   of   Next >>   ADVERTISEMENT   Related Stories • See Dick. See Father raid Dick's piggy bank. 11/29/08   CONTACT THE HERALD Mike Benbow, Business Editor benbow@heraldnet.com   Published: Saturday, November 29, 2008 Defining money crunch for kids Parents should keep financial talks at children's level and let them help in saving. By Carla Hinton The Oklahoman Children and teens undoubtedly have noticed recent headlines concerning Wall Street woes and the mortgage crisis. What should their parents tell them about the nation's current economic troubles? Should they go into detail about financial pressures hitting close to home -- their own household? Greg Womack of Womack Investment Advisors of Edmond, Okla., recently offered parents some helpful suggestions: Question: Have you noticed or heard about people who are discussing the nation's financial troubles or their own financial challenges with their children and teens? Answer: Yes. Whether it is purchasing fuel for vehicles, or watching their 401(k) and brokerage account statements go down in value, the whole family has been tuning in on the financial news. People who never watched CNBC are listening like never before. Children can't help but overhear what is going on. My 13-year-old daughter had a discussion in her social studies class about the economy and what happened during the Great Depression. Question: What are some mistakes that parents should avoid when discussing such issues with their children? Answer: Don't get too complicated. Keep it simple and on their level. Be careful and don't create too much fear and stress in their lives; reassure them that tough economic times happen, and we will make it out of this OK. Talk about adjustments your family can make to watch spending and how to better prepare for the future. It's a good time to talk about greed and the eventual effects it can have on people and our economy. Question: What is the best way to explain issues such as a financial crisis, whether it hits home or simply on a national level? Answer: Watch the national and local news with your children. Talk to them in general terms about your finances. Reassure them, but also let them know they can help when it comes to finding value. Let them help look for "sales" or clip coupons on things you need. With the stock market being down, show them how they can start investing in a mutual fund or a college fund. Now may be a great time to start investing. Look up brand-name companies and their current stock prices compared to where they were last year. Get them interested on how they can make money by investing in times like these. READER COMMENTS Be the first to comment. You must be a registered user and verify your e-mail address to post comments to blogs or articles on HeraldNet. To register, click here. To read other terms and conditions, click here. Log out

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