MONEY TIPS FROM THE FRONT
When parents have questions on child-rearing, they often turn to other parents for guidance. So to shed some light on the topic of money and kids, we recently polled parents on what worked and didn't work for them.
Our four-question survey, conducted via the Internet, yielded scores of fascinating responses, including a consensus that the smartest money goes to tuition, travel, and nonmaterial experiences. The dumbest? Fast food, hot fashions, and toys--especially video games.
Read on, and hear what else the voices of experience have to say.
Q: What is the smartest expenditure you have made on your children?
A: Amigos, a humanitarian exchange program, where they worked on rabies-vaccination programs in Honduras and Ecuador for a summer.
--Jon Beall, Austin, Tex.
A: Time. When we decided to start a family, we began to bank 100% of my wife's salary in order to learn to live on one income. Then, when we finally did have a baby, my wife retired from her teaching career to spend time with the children.
--Jonathan C. Kerr, Middletown, Ohio
A: Music lessons with a professional. Very expensive and very demanding. However, it has been a nurturing experience in which they have learned music along with discipline and responsibility.
--David A. Minster, Markham, Ontario
A: Two cats from a shelter.
--Barbara Heffner, Wellesley, Mass.
Q: What is the dumbest way you have spent money on your kids?
A: Separate college accounts under their individual names, which resulted in having to file extra IRS returns (mine is a big enough pain), while also limiting their potential access to financial aid.
--Robin Cole, Stanford, Calif.
A: It must be the money my ex-husband has spent on video games.
--Anne Smith, Freemont, Calif.
A: A Visa card to be used for ''emergencies'' only.
--Bob Self, Helena, Ala.
A: Money to enable kids to buy me gifts. Dumb!
--John Johnson, Thomasville, Ga.
Q: How are you teaching your children to handle money responsibly?
A: Our son already has heard many times that...humans are creatures of unlimited wants but limited resources, so we must make choices.
--Rebecca Baldwin, Issaquah, Wash.
A: They have developed their own small businesses while in school, have their own accounts, and use part of the money to purchase the things they require for their sports and travels.
--Francisco J. Guerra, Mexico City
A: When they want something out of the ordinary, we let them know in their terms how much it costs. My daughter wants to go on a houseboat vacation. We let her know it costs 200 Beanie Babies.
--Robin Vold, Lawrenceville, Ga.
Q: What ways are you saving for your children's college education?
A: We are making a double house payment monthly so our home will be paid off the same year our son heads to college. Then, we'll take out a new mortgage or refinance the home to pay for college.
--Nathan Berry, Oklahoma City, Okla.
A: Through a devoted and loyal relative.
--Sharyn Sullivan, Dickinson, Tex.
A: When each was born, I put $100 into an account. Each payday after that, I put something into that account. It was the first check I wrote. And whenever we received a windfall, we always put something in, usually 15% to 25%.
--Hal Kern, Montara, Calif.
EDITED BY AMY DUNKIN
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