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Birthday 'Buy Me'

As my daughter’s seventh birthday approached, I thought I’d get a head start on my shopping by asking her what she’d like. She quickly responded, “a CD player,” but she wasn’t done. She continued with a very lengthy list that included a VCR, television, telephone, at least 10 CDs, a few movies, and the latest Sega game. If I had given her everything on her list, I would have spent over $600.

Was it really just a few years ago that she would get excited every time I dressed her in the clothes she’d received as gifts from her Aunt Lesley? I thought I had a truly special child who could understand it was the person and not the present that mattered. I hadn’t noticed she’d changed and become so materialistic.

I’d ignored her comments as we wandered through stores. She’d see something she liked and would say, “I can get that for my birthday.” I’d laugh and remind her that the birthday in question was 11 months away. I forgot the comments, but she didn’t. As her birthday approached, she prepared for the haul of a lifetime.

For her, a year’s worth of put-off purchases were due — and she planned on collecting. As soon as I realized how large her list was, I made it clear she wouldn’t be receiving it all. My husband balked at her list because it didn’t even include toys — and she is, despite her 7-year-old protests, just a child.

Children or Consumers?
To retailers, she’s been a prime target for years, so I shouldn’t be surprised that the ads she sees are taking their toll. And it isn’t just my daughter who is being unduly influenced.

Studies have shown that children younger than 12 influence a third of the big-ticket items purchased by adults. That includes what vacation to take, which stereo to buy, and even what car to drive. So is it any wonder our children try so hard to influence us to make big birthday buys?

“It’s a simple equation,” says Elizabeth Pantley, mother of four and author of Perfect Parenting: The Dictionary of 1,000 Parenting Tips. “Take lots of exciting TV commercials and add a peek at a friend’s prized possessions. Multiply the result by attractive store displays. Sprinkle liberally with a child’s natural desires, and the result is `The Gimmes.’”

When Candace Priore’s son turned 11 last year, his birthday wish list included “a Nintendo 64, a stereo, a TV for his room and lots of other things,” recalls Priore. “He got the Nintendo and a couple of games from us, but that was it. He was OK with that because he knew he had no chance of getting a TV and DVD player for his room. He tried though,” she says.

Children will definitely try to get as much loot as they can on their special day, but it is up to the parents to set the limits.

“Our most important part of raising our children is not to make our children happy,” Pantley says. “It’s to make them into responsible adults. Part of that process is teaching them about life.”

Pantley suggests staying away from phrases such as, “We can’t afford that,” when telling a child he can’t have a certain gift. “The message is that if you could, you’d buy those $200 shoes,” Pantley says. The message should be that $200 shoes aren’t necessary when $30 shoes work just as well.

Preparing for Battle
Parents can prevent a bout of the “Birthday Buy Mes” by taking steps long before the birthday arrives. When your child indicates he wants something while shopping, pull out a notebook and mark it down on a “wish list”. Instead of telling your child she can’t have it, ask them about her preferences. Make it clear that you will use the wish list when you go birthday shopping, but that not all wishes will be fulfilled.

Children don’t always know what they want for their birthday, so Pantley suggests parents don’t ask. “Parents usually know what their kids want better than they do,” she says. “What do they spend their time with most now? What really sparks their attention?”

Hannah Hayes uses this method when shopping for her 6-year-old son’s birthday gift. “I usually have an idea of what he wants, and I suggest it,” Hayes says. “If he wants something badly, I’ll suggest he ask for it for his birthday. He gets to ask for one gift — we don’t do lists.”

Party Time Prevention
Even if a parent has managed to limit their own present purchase for the birthday gal, it can be a little harder to rein in generous grandparents and friends. One way to limit the loot is with the party planning. Start early by limiting the guest list.

“This year, we had 16 children and everything went fine, but I warned my son, from here on out we are limiting it to seven or eight,” Hayes says. “He’s had a tough time at school, and most of his friends are in another class, so I let the guest list get out of hand.”

Hayes says she felt the number of presents her son received was absurd — and overindulgent.
“Don’t have a party every cotton-picking year,” suggests Valerie Botbyl, mother of a teenage son. “Party for the big ones. Not having a party every year also helps them not expect a boatload of presents. I’ve been to too many parties with hoards of screaming little kids, only to leave the birthday mom in tatters and no one to help her clean up.”

You may even want to have your child choose a present or a party rather than giving both. “In our family, the birthday party is the present they get from Mom and Dad,” Pantley says. “Let them know how much you’re spending to help them understand the value of each part and each piece. Explain the pizza costs $30, which is three months of their allowance.”

Focus on Family and Friends
When it comes time for the party, whether it is a blowout affair or a small family gathering, help your child cope with the excitement by discussing the meaning of the day.

Hannah Hayes starts talking to her son long before the party starts. She explains birthdays are a time of celebrating a life and not about presents. It’s a concept she knows her son will learn over time, and not in ne day.

“I always suggest parents talk to their child before the party begins,” Pantley says. “Rehearse how a child should respond after a gift is opened.” She recommends covering all the bases, such as rehearsing reactions when your child doesn’t like a gift, or already has it.

For the party, don’t make presents the main attraction. Instead, focus the celebration on the people and the joy of being together. Put the focus elsewhere by creating a special ritual, such as marking the child’s annual growth or making a special meal.

“Find different ways to lavish attention on the child without it always being centered on the presents,” Pantley suggests. When it comes time to open the gifts, sit down next to your child. That way you can help encourage them to make appropriate comments.

“I think it’s a learning experience,” Hayes says. “Kids naturally love presents and the attention, and they learn to expect it and they get worked up about it. Parents need to make a conscious effort to put things into perspective, and it sure isn’t easy.”

Persistence does pay off, Hayes says. Last year her son demanded presents from everyone he met. This year, she describes his behavior as gracious and generous. “He didn’t cry when other kids opened his presents and played with them — like I did when I was 6,” Hayes said. “And he was very happy with everything and thanked us over and over again for a wonderful birthday, so maybe he’s hearing something.”

Thankful Teachings
The teaching doesn’t stop once the party is over. The often-overlooked thank-you notes should be a big part of your child’s post-party plans.

“Soon after your child receives a gift, sit down with her and help her compose and write a thank-you note,” Pantley suggests. “Create a new family rule: You may only play with a gift after the thank-you note has been written. This will get the job done quicker than anything else.” Pantley says it’s important to teach your children to write thank-you notes whenever a gift has been received.

Encouraging your children to donate a few under-used toys to needy children in order to free up storage space for the new items can also help your child recognize not everyone gets what they want just by asking.

Here’s hoping this year, we all manage to avoid the “Birthday Buy Me” battle, and enjoy the best part: celebrating another year in the race to adulthood. Not to mention the ice cream and cake.

Spending Smarts

Every teenager in the free world seems to think when it comes to spending, they have the deepest pockets in the world – their parents pockets!

With parents footing the bill, a teen’s list of needs can grow to astounding proportions. When the same list has to come out of the teen’s own finances, it can dwindle down quickly. Teenager Michael Stahl, dad Scott Lorenz and financial expert Janet Bodnar have teamed up to help give you the best advice when it comes to developing your teenager’s spending smarts.

“If you’re spending your parents money, I think you don’t realize the value of a dollar, but if it’s your money it makes you think a little bit more,” says 17-year-old Michael Stahl.

Take an active role

Whether you realize it or not, you have already taught your teenager lessons about money, spending, budgeting and saving. Through your buying behavior, savings and investment plans — or lack of them, you are sending a message to your teen.

Help your message on finances be a positive one, by taking an active role in teaching your teen the importance of developing smart spending habits. Even if you have bad credit and your savings account balance is zero, you can still teach your child the right way to handle money and control spending.

By openly discussing your poor habits and explaining what problems you have had as a result of them, you can help your teen learn by your example.

“Look on it as an opportunity,” suggests Janet Bodnar. “It teaches your kids a valuable lesson.” Bodnar is the author of the syndicated column, Dr. Tightwad, and mother to three teenagers.

Teach them the alternative to spending – earning interest and dividends!

How do you discourage your teen from spending $80 on a new pair of jeans or $120 on shoes? Stahl believes teens need to learn the earning potential of money. He began investing money when he was in the fourth grade when he received $100 as a gift.

“I decided to invest in Atari,” said Stahl. He bought 100 shares at a $1 each. Within three months, his investment was worth $500. He sold his 100 shares for a $400 profit.

“That kind of got me hooked,” he said. To help teenagers learn the value of investing rather than spending, Stahl wrote the book, “Early to Rise: A Young Person’s Guide to Investing…and Financial Decisions that Can Shape Your Life.”

“Show what the money they earn can do for them,” suggests Stahl. “What that $80 can really become. No one can beat a teenager when it comes to the miracle of compounding interest.”

While many parents want to limit or restrict a teen’s spending, Stahl emphasizes teens need to be teens too.

“Save as much as you can, but you still have to be a kid and go out and have a good time,” says Stahl. “You can’t save it all. You have to have a good time.”

If your teen has a part-time job, Bodnar suggest you and your teen decide what percentage be put in savings before the first paycheck ever arrives.

When deciding how much money to save, consider your teen’s weekly expenses. You want to leave your teen enough to cover their weekly expenses. Anything above the normal requirements should be placed into some sort of savings.

“You don’t want them to be totally awash in cash,” said Bodnar.

Enlist the aid of the Internet!

One of the best ways to tame a teen’s spending spree is by encouraging them to put their computer skills to work searching the Internet for the best value for their spending dollar.

“I am no expert, just a parent,” said Scott Lorenz of Michigan, “but one thing I have been doing lately is encouraging my teens to research their purchases.

“We did this with sneakers a few months ago,” said Lorenz. “My son wanted Nike and I showed him an ad for New Balance. He was hooked on the Nike brand name for no other reason than he heard about it, his friends wore them, etc.

Lorenz encouraged his son, 13, to research alternatives and encouraged him to do comparison shopping on the Internet.

“My son also wants to purchase an MP3 device and is ready to spend $200,” said Lorenz. “Again, I am trying to teach him to slow down, do the research on the Internet and make an intelligent decision.

“My son found out he could get nearly the same MP3 for only $50 if he spent this amount for e-music from this particular Web site. He was pretty surprised and I was a little smug,” Lorenz said. “It showed him that there are other deals out there and the payoff comes with research.”

That’s Life
In her book, Kiplinger’s Dollars & Sense for Kids, Bodnar suggests one way to teach teens money is a limited resource is by doing some role-playing. Assume the teenager is living on her own and has to pay normal expenses. Have them suggest a monthly income they feel would be enough to live on comfortably.

Discuss how much rent, car payments, insurance, groceries and utilities cost each month. As you subtract out the various items from the monthly income, it gives the teen a clearer picture of how much money if available for spending.

“They really don’t have a grasp of the real world,” Bodnar said. “ I think, ‘That’s Life’ is a good game to play with your kids.”

You can use play money to illustrate this, or you can use yourself and your family as a real world example. Next time you cash your paycheck, get the full amount in cash.
Sit down with your teen and talk about the difference between gross and net income. Discuss what bills have to be paid. As you mention a bill, take it away from the pile of money.

“Just start peeling,” Bodnar said. “It doesn’t have to be complicated. You just need to keep things simple.”

SIDEBAR:

High tech alternatives to teach your teen Spending Smarts

By Linda Sherwood

A new Discover card commercial shows a parent handing their child a credit card to use “for emergencies only.” The next 30 seconds show the teen defining “emergency” in a number of unique ways including buying pizza, a new wardrobe and items for his friends. The commercial ends with the father holding a credit card statement looking like he is going to kill his child.

The commercial is funny until it happens to you and your child.

In an effort to teach teens about financing, some parents have turned to high tech alternatives including credit cards, debit cards and checking accounts. Does a teen need a credit card or a checking account? Does it help them learn about money?

“I don’t think kids that age have any business spending on credit,” said Janet Bodnar, senior editor of Kiplinger’s Personal Finance Magazine and author of Kiplinger’s Dollars & Sense for Kids.

“While there’s something to be said for real-world experiences – and lots to be said for teaching teens about credit – there’s no need to turn teenagers into debtors-in-training,” says Bodnar in her book. “Far better to make them pay as they go, with cash that they earn or receive in a fixed amount as an allowance. If they learn to manage money while they’re at home, they’ll be less likely to go crazy with credit when they’re off at college.”

Bodnar does recommend opening a checking account for your teen. A checking account can help a teen learn to become a good cash manager, Bodnar says. It can help them see what they are spending.

If you’d rather not open an actual checking account, you can still teach your kids the basics of checking with a program like ParentBanc. Available in retail stores or by calling 1-800-471-3000, ParentBanc kits include a checkbook, register and deposit slips. Additional checks can be ordered personalized in the child’s name.

There are other high tech options available on the Internet.

HEYnetwork.com, www.HEYnetwork.com, offers Kids-ecommerce to help children and teens learn about money management. Parents can create and approve spending through a Family Electronic Wallet system. Parents can set up an account for their teens and limit what the money in the account can be spent on.

Another option is the PocketCard, www.pocketcard.com, a supervised VISA card that offers real-time funding, spending and reporting for families. PocketCard can provide teens with early training in credit cards. Parents can find out what and where teens are spending on a daily basis rather than waiting for the monthly bill when it may be too late.

The PocketCard system allows parents to add money to the card instantly via the Internet or a touchtone phone. Parents can monitor where the money is spent by logging onto the PocketCard Web site, through daily e-mail updates or by monthly statements. Teens can make purchases online or offline anywhere VISA is accepted.

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Mom Loves ME More

Every Mom gets THE question at some point. No, not the sex question. I’m talking about “Who do you love more? Me or my sister?” The standard answer, of course, is “I don’t have a favorite. I love you both the same.”

The answer may be the standard, but it isn’t a good answer. Loving your children exactly the same way and the same amount is impossible. It can’t be done and it shouldn’t be done.

Children, even when they are twins and have lived every day in the same house doing the same things and exposed to the same stimulants, are different. One loves jelly and the other loves peanut butter. The important thing to remember is each child is an individual despite temptations to lump them all together. In terms of the parent’s time and energy, it would be so much easier to take three girls to one ballet class instead of one to karate, one to cheerleading and the other to ballet. Easier yes, but at least one of the girls would rather be somewhere else doing something else.

Foster Individuality

As the mother of three girls, my children are often referred to as “the girls.” It wasn’t too much of a problem until my youngest child was born. He’s over a year old and my children, all four of them, are still called “the girls” by some family members. Fortunately my son is still too young to be offended and I am working hard to change it to at least “the kids.”

Referring to your children by their names rather than a group designation can be an important step in helping them foster a sense of self and individuality. Be sure to talk to teachers who have taught older siblings. Make it clear to the teacher to refrain from comparing the siblings.

“Each of my four boys have different interests,” says Carrie Smith. “One is very artistic and creative, so we’re always buying new markers and pencils for him. At least two of the others are more athletic, and they play the sports. My creative one is offered the opportunity to play, and he says he will at first, but then he backs out. That’s OK. When and if he feels comfortable, he’ll play.”

The Question

The teen years are a time of extreme self-doubt and low self-esteem. These feelings can cause a teen or pre-teen to question a parent’s loyalty and love. “This has come up often,” Debbie Joubert said, “especially with the older children.” Joubert has three children ages 10, 8 and 3.

Judith Turner, the mother of six children says, “I think I can truthfully say I don’t have a favorite child. I love them all, of course. On the other hand, I do relate better to some of my children than others. You could say we have more similar personality traits and interests. And yes, there is one child who is more like me than the others so I feel that I understand him more.”

A Good Answer

The doctrine of “eachmost” should be your guide to handling this situation, according to Dr. Carol Maxym, author of Teens in Turmoil. She started putting the doctrine to work shortly after her second daughter was born when her oldest daughter overheard her calling the new baby, “My Dearest.”

Immediately, Maxym was challenged. How can the new baby be her dearest? Maxym explained each of her daughters were dearest.

“I love each of you most. Grammatically, it doesn’t work, but as a parent it makes sense,” said Maxym. She suggests parents work to help their children develop a deep sense of being an unique self in context of all of the other unique selfs marching around the world.

Avoid Comparisons

“Kids are very good in suckering parents into the comparative, but we don’t have to go there,” said Maxym.

Margie Senechal of Washington, works hard to avoid comparing her two daughters, ages 13 and 10. She recalls her oldest daughter tried to get out of doing dishes by asking why her younger sibling didn’t have to do them. Rather than comparing them, Senechal pointed out the relevant facts.

“Well, when she was doing dishes, she asked, ‘Why doesn’t Jordan have to do chores?’” Senechal recalls. Rather than going on the defensive, Senechal stuck to the facts. She ended her oldest daughter’s challenge with the following simple exchange:

“How old are you?”
“Twelve.”
“And how old were you when you started doing dishes?”
“Twelve.”
“And how old is your sister?”
“Nine.”

“End of discussion,” Senechal said. “She realized it wasn’t because I was playing favorites, but because she was older. We’ve let her know, while she has more responsibilities, she also has more privledges.”

Meri Wallace, author of Birth Order Blues and a child and family therapist for 18 years, agrees Senechal’s approach was appropriate.

“You don’t always have to be even handed,” Wallace says. “It’s important you explain this is happening because of this.

“Talking to a child is really, really important,” Wallace said. “It makes them feel like a valued individual. There isn’t a child that doesn’t need it.”

It’s a bird, it’s a plane, it’s Super Sibling!

There are circumstances that cause families to focus consistently on one child more than the others. A star athlete, gifted student or a handicapped child can change the dynamics in a family and make it even harder for parents to recognize the other siblings achievements.

“My biggest struggle is that my oldest child is handicapped, so it is easier to see that she needs PT, swimming, special gym class, etc.,” Turner said. “The next oldest child is extraordinarily gifted, and sometimes the temptation is to think that he can cope just fine instead of recognizing that he has special needs for stimulation as well.”

How does Turner recognize the needs of each of her six children? “I try to spend time alone with each child. We take turns who gets to go along on errands, and who gets to pick things we eat, or books at reading time,” Turner says.

Lili Le Clerc, a mother of five children ages 10 months to 11 years, recently took a parenting course. “I think the best thing I took away from that course was simple — don’t treat your children equally, treat them uniquely.”

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Junior's Savings Can Limit Financial Aid

Your baby boy has grown taller than you, and is now busy researching colleges and majors. You smile at him sweetly before heading for the bank to check up on his college savings account. Once there, your smile disappears as you look at the balance: $127.36. That can’t be!

You can clearly remember depositing $100 on his fifth birthday… and then there was the check from Aunt Glennis. Where did it go? How are you going to pay for college?

Hopes vs. Reality

Every parent hopes and plans to set aside money for her child’s college tuition, but it doesn’t always happen: Life gets in the way. The car breaks down, or something else interferes, and you find yourself with an empty savings account and a looming college bill.

The good news is the missing college savings account may be one of the best things for your college-bound teen. If your family qualifies for financial aid, then a savings account in your child’s name can actually hinder, rather than help, your quest for financial aid.

“First, parents need to get an accurate idea on their chances for qualifying for aid,” says Kalman Chany. Kalman has helped parents finance college tuition for over 15 years through his company, Campus Consultants and his book, “Paying for College Without Going Broke,” which is in its eighth edition.

“If you have any hope of financial aid, never put money in the child’s name,” said Chany.

Did you catch that “if”? Like most things, it’s hard to give an answer that will fit every financial situation. If your family does not qualify for financial aid, then putting money in a savings account for your child could be a wise move for income tax purposes. The key is figuring out first if you could qualify for financial aid.

The Plan

Chany recommends parents develop a very focused game plan. When should you develop the plan? The earlier you start, the more you can do to help cut your family’s college costs.

“It’s not too early to start focusing on the financial aid process, the need-based process, when your child is in ninth or tenth grade.” If your child is already a junior or senior, it’s not too late. Applying for financial aid is an annual process; you can still effect changes to your financial situation that can decrease your family’s costs for next year.

Financial aid is dispensed on a needs-based system, which is why Junior’s college savings account may not be a great idea after all. If Junior has a savings account, 25 percent of it would be earmarked as part of your family’s share. The same amount of money in a parent’s savings account only has to contribute five percent to college costs.

What does that mean? If the money is in Junior’s name, you will qualify for less financial aid because your need will be determined to be less. For example, a $20,000 savings account in the parents’ name is expected to contribute five percent or $1,000 to college costs. The same amount of savings in Junior’s name is expected to contribute 25 percent or $5,000 to college costs.

By having a savings account in Junior’s name, in this example, the family would qualify for $4,000 less in financial aid than if the same amount had remained in the parents’ name.

“Learn all you can about the process,” says Kate Kelly, a mom and author. “This is a case where knowledge is money.” In her book, “The Complete Idiot’s Guide to Parenting a Teenager,” Kelly reminds parents there is hope when it comes to financing their child’s college costs. “It can be worked out,” she says.

“Financial aid is based on the college cost and your ability to pay —almost everyone should apply,” says Kelly.

The Process

In order to qualify for financial aid, students will need to fill out forms including the Free Application for Federal Student Aid (FAFSA), state forms and college-required forms. The forms determine how much money a family can afford to help pay for the student’s college education. From the information provided, the family is given an Expected Family Contribution (EFC).

Four factors are used to determine the EFC including the parents’ income, the parents’ assets, the student’s income and the student’s assets. The resulting EFC is how much money the family can finance to pay for college. Yes, you read that right. It said, “finance.” The EFC takes into account the amount of money the family can pay directly, as well as what loans they can take in order to pay for the college costs for that year.

“Parents need to be assertive and do more than just fill out the forms,” said Chany. “You’re not going to find this ‘little thing’ in 30 seconds that is going to make college affordable.” The reality is that it may be a series of small changes, such as your choice of lender that will reduce the overall financial obligation.

One last tip for parents? Don’t rely on just the college to help you find ways to reduce your EFC.
“The college isn’t going to show me how not to pay them,” said Chany. “They are always going to put the financial interest of the institution ahead of yours.”

This article was first published on Moms Online in February 2000 by Oxygen Media, LLC, http://www.oxygen.com

Relevant Links

Campus Consultants — Kalman Chany’s Web site. Campus Consultants is a New York City-based firm that guides parents and students through the financial aid process.

http://www.campusconsultants.com

FinAid – The Smart Student’s Guide to Financial Aid http://www.finaid.org An award winning site that provides a comprehensive guide that is free to all users to locate information on how to finance college education

FastWeb – Offers a search engine for scholarships, information on admissions financial aid, money management, career planning, jobs and life after college. Also free tools such as calendars, e-mail and cost calculators. http://www.fastweb.com

Embark.com — Formerly CollegeEdge, it offers an interactive guide that connects people to their ideal opportunities so they can achieve their educational and career goals. It offers services to students, universities and guidance counselors. http://www.embark.com

California Student Aid Commission – A comprehensive site for students in California, with good general information for students elsewhere. http://www.csac.ca.gov/sfaprogs.html

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