The First National Bank of Dad

The First National Bank of Dad

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Most parents do more harm than good when they try to teach their children about money. They make saving seem like a punishment, and force their children to view reckless spending as their only rational choice. To most kids, a savings account is just a black hole that swallows birthday checks. David Owen, a New Yorker staff writer and the father of two children, has devised a revolutionary new way to teach kids about money. In The First National Bank of Dad, he explains how he helped his own son and daughter become eager savers and rational spenders. He started by setting up a bank of his own at home and offering his young children an attractively high rate of return on any amount they chose to save. qIf you hang on to some of your wealth instead of spending it immediately, q he told them, qin a little while, you'll be able to double or even triple your allowance.q A few years later, he started his own stock market and money-market fund for them. Most children already have a pretty good idea of how money works, Owen believes; that's why they are seldom interested in punitive savings schemes mandated by their parents. The first step in making children financially responsible, he writes, is to take advantage of human nature rather than ignoring it or futilely trying to change it. qMy children are often quite irresponsible with my money, and why shouldn't they be?q he writes. qBut they are extremely careful with their own.q The First National Bank of Dad also explains how to give children real experience with all kinds of investments, how to foster their charitable instincts, how to make them more helpful around the house, how to set their allowances, and how to help them acquire a sense of value that goes far beyond money. He also describes at length what he feels is the best investment any parent can make for a child -- an idea that will surprise most readers.In order to stay in business, a store has to be able to sell stuff for more money than it pays for the stuff in the first place. ... if they themselves have ever been in the position of buying and selling Pokemon cards, Beanie Babies, comic books, video games, or anything else. You ... Well (you can explain to your kids) just think of how much money the owners of a toy store have to spend just to stay in business.

Title:The First National Bank of Dad
Author:David Owen
Publisher:Simon and Schuster - 2007-04-24


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