“WalletPop's best books on personal finance for your kids - Walletpop.com” plus 1 more

WalletPop's best books on personal finance for your kids - Walletpop.com

Posted: 02 Nov 2010 03:26 PM PDT

Parenting doesn't stop at potty training and teaching the kids how to tie their shoes. As your kids grow up, what is the best way to teach them about personal finance?

At least 15 states require public high schools to offer personal finance courses, but that still leaves plenty of places for lessons on money management to fall through the cracks.

Watching mom and dad pay the bills or balance a checkbook might click for some kids, but even in elementary school students can learn how to handle money through a parent's favorite way to teach: reading with their child. Either way, personal finance lessons are too often left to someone else to figure out.

"I think schools are counting on the families to do that job and the families are counting on the schools to do that job, and it just doesn't get done," said John Daugherty, a CPA in Texas who helped start a sort of children's book club on personal finance in Texas schools.

Figuring that elementary school children are "just on the cusp" to figure out money matters, as Daugherty put it, the Texas Society of CPAs started a financial literacy program in 2008. CPAs are available to read to students in the classroom, and they provide a recommended reading list for preschoolers through 12-year-olds, along with other materials.

It's never too early to start, as Seira Wilson, an editor at Amazon.com books, told WalletPop in an e-mail: "When young children start engaging in imaginary shopping or putting coins in a piggy bank, it's a great opportunity to start talking about money. Currency identification and basic concepts of earning and spending (and the fact that money doesn't grow on trees!) are good starting points for younger children, and for older children, teaching the longer-term benefits of saving, planning, and interest can guide them toward smart financial decision making. Regardless of the age, a key is selecting books that will capture a child's interest and invite further discussion."

There are only so many Arthur books a parent can read on how the aardvark earns an allowance and saves money, before they lose their mind and can quote D.W.'s lines by heart. Here are some good other alternatives that WalletPop found:

Junior's Adventures
It's a six-book boxed set for $40 from personal finance guru Dave Ramsey. Recommended for ages 3-10. I've been reading these to my daughter, who is in first grade, for about a week and she's enjoyed them so much that she has drawn a crayon picture of the main character. That's high praise from a 6-year-old.

Other than a few too many grammatical errors, the books follow a boy named Junior as he learns how to work, save, spend and give. My daughter's favorite is where junior learns to save his allowance for a long-term goal, such as a car or college -- a goal I keep trying to teach her with her weekly allowance and gift money from grandparents.

The Sisters 8
In this series for young readers age 6-10, octuplets must learn to run their own household when their parents disappear. In book 1 "Annie's Adventures," there's a lot on paying bills and writing checks. In book 4 "Jackie's Jokes," the plot revolves around needing to pay income taxes. The softcover books are $4.50.

One Hen: How One Small Loan Made a Big Difference
This picture book by Katie Smith Milway is for grades 2-4, and was recommended to WalletPop by Jeanette Larson, a librarian who teaches children's literature. The book is $12.89 at Amazon.

Bunny Money
If your children are familiar with Max and Ruby, they'll want this picture book, by Rosemary Wells. $6.99 on Amazon. Larson also recommends this book, which includes some "bunny money" for kids to spend. The book is for kids in preschool through second grade. In the book, in-charge Ruby and intrepid Max search for a birthday gift for Grandma and learn that we can't always afford the things we want to buy, and money spent in one place can't be spent somewhere else.

This book was also recommended by Amazon's Wilson. "Children at this age are already learning about choices, so it's a natural progression to look at making choices with money," she wrote in an e-mail to WalletPop.

The Money Tree
This book by Dave Hunt, aimed at children up to age 10, examines a topic about which I've always personally wondered: What if everyone had so much money, nobody had to actually work? Recommended by personal finance writer and accountant Angie Mohr, the book talks about a boy inventor who invents a money tree and then starts selling them in his town. People plant their own and eventually, everyone has unlimited amounts of money and buy up all of the things there are to buy. No one makes new things because they already have all the money they need. Soon, there is no food and everyone realizes you can't eat money. A great lesson on basic economics and the value of a buck. It was last published in 1989, but can be found used online for less than $7.

The Zela Wela Kids Build a Bank
This book by Nancy Phillips, also recommended by Mohr, is for children up to age 8 on how to save money and divide it among spending, savings, giving and investing. The $16 book is the first of a series and starts with a piggy bank that kids can make themselves at home.

Federal Reserve comics
You might not think of the Federal Reserve as a place to go for comics, but the federal agency offers free comic books to teach kids, and adults, about money. They look like they should be ordered by a teacher, since up to 34 copies of a book are available to order online. I ordered a copy of "The Story of Foreign Trade and Exchange," although I avoided the anticipation of waiting for the mailman and read a few pages online with a PDF reader. As Naked Retirement author Robert Laura pointed out, they may not be Mad Magazine or a superhero comic, but they're a fun resource for kids and parents. And best of all, they're free.

Alexander, Who Used to Be Rich Last Sunday
This $7 book by Judith Viorst was recommended by Paul Aherns, who runs a literacy education company. It's a great starting point for a discussion about money and tells how a boy gets $1 from his grandparents and thinks he's rich, until he starts spending it on gum and other things a boy loves, like renting a snake.

Joe the Monkey Saves for a Goal
This picture book is another great book about how to save money for a goal, even if it is a short-term goal such as a toy. The book helps distinguish between needs and wants, and making choices.

A Dollar for Penny
A lemonade stand brings in nickels, dimes, even quarters, and they start to add up for young Penny in this $4 book for beginning readers recommended by Wilson, a book editor at Amazon. A Dollar for Penny uses rhyming text and bright illustrations to teach children various denominations and simple money math. An added bonus is that Penny's money is coming from her lemonade stand, which is a good jumping off point to discuss receiving an allowance for chores or other ways of earning money.

Growing Money
Also recommended by Wilson, this $9 book is for grades 4-8. It teaches kids about balancing an account, reading the financial page of a newspaper, and various forms of interest and investments, using accessible language and examples. Sample forms help kids practice recording deposits and withdrawals and learning more complex concepts like risk tolerance. Parents can build on this by taking time to read the financial pages with their child and inviting them to participate in balancing the family checkbook.

A Kid's Guide to Giving
Written by a young adult, this $10 book for grades 7 and up that Wilson recommends demonstrates charitable giving. Kids learn how various charitable organizations function financially, as well as advice for deciding whether to give money, goods, or time. Best of all, this guide highlights the joys of giving and the difference even small amounts can make.

The Millionaire Kids Club
This series of $13 books by WalletPop writer Lynnette Khalfani-Cox teaches kids about the choices they have with money, and how they can do much more with it than spend it.

Not Your Parents' Money Book
Another book by a WalletPop writer -- Jean Chatzky -- is for grade 5 and up. The book is $9.35 at Amazon and is for middle school students and even older teens. It's a good introduction to the world of money for teens about to get a job.

Finance Whiz Kids
Although not yet published, author Darrah Brustein, 27, told WalletPop in a phone interview that she expects to have the series of six storybooks self published and available for sale in January. Meant for second-through fourth-graders, the books use woodland creatures to tell stories about the value of money.

As a child, Brustein was given a plan for her allowance by her parents. She had to save half of it, and if she saved more, it was matched by her parents as a way of teaching her how compound interest works. She also learned about stocks and mutual funds at home, picking funds that the family would buy and track together. She didn't read about personal finance as a child, she learned it first-hand.

"As a kid, I don't remember reading any books about money," she said.

Brustein admits that not every child is so lucky to learn money management skills at home, and says her books are targeted to parents "savvy enough to realize that this is something that will change their child's life."

That's more than enough to ask from a book. Now go out and buy some before Santa Claus gets all of them.

Aaron Crowe is a freelance journalist in the San Francisco Bay Area.

This entry passed through the Full-Text RSS service — if this is your content and you're reading it on someone else's site, please read our FAQ page at fivefilters.org/content-only/faq.php
Five Filters featured article: Beyond Hiroshima - The Non-Reporting of Falluja's Cancer Catastrophe.

Personal Finance: Legal trusts provide for pets after owner dies - Sacramento Bee

Posted: 30 Oct 2010 11:58 PM PDT

Buzz and Hilda love to ramble around their Elk Grove home, taking naps or chasing after their chew toys by day, curling up in the family room recliner at night.

Nancy King, their devoted owner, doesn't want that routine to change much once she's gone. So King, a librarian for the California Energy Commission, set up a pet trust, which spells out exactly how and where her dachshund duo will be cared for, if they outlive her.

King, 67, wanted to ensure that her pets have "as little disruption as possible" once she can no longer care for them.

With an estimated 71.4 million U.S. households home to at least one bird, fish, reptile, cat, dog or bunny, pets are definitely our beloved companions in life. But what happens to them after we're gone?

Some wind up in animal shelters, some are put to sleep. Others are farmed out to willing family or friends.

But to ensure there's no uncertainty, it appears more Americans are specifying exactly what happens to Fido and Fluffy when they're gone. That arrangement can be as casual as a friendly agreement with a grown child, a sibling or friend, or as concrete as a legally drafted trust.

"It's definitely a trend and it's caught on because people understandably value their animals and want to make sure their pets are looked after," said Mary Randolph, publisher of Berkeley-based Nolo publishing and author of "Every Dog's Legal Guide: A Must-Have Book for Your Owner."

In California, pet trusts – which are part of estate planning documents and typically drafted by an attorney – were made legally enforceable by legislation signed by Gov. Arnold Schwarzenegger in 2008.

Some 43 states and the District of Columbia now have statutory pet trust laws on their books, according to attorney Dan Meeks, who runs a Florida website, www.pettrustlawblog.com.

He said there's been increased interest in pet trusts over the last couple of years, partly due to several "outlandish" pet-care cases, such as the $12 million trust fund left by real estate mogul Leona Helmsley to care for her Maltese poodle (later reduced to $2 million in court). Or Florida heiress Gail Posner, who died in March, leaving her $8.3 million Miami mansion and more than $3 million for the care of Conchita, her pampered Chihuahua, and two other dogs.

In Elk Grove, librarian King doesn't have anything quite so posh in mind for her beloved pooches. At her death, Buzz, a 15-year-old "senior citizen" and Hilda, an 8-year-old "doxie-wawa" (a dachshund-Chihuahua mix), will be adopted by a volunteer chosen by the Sacramento Society for the Prevention of Cruelty to Animals (SPCA). Her pet trust specifies organic food and regular teeth cleaning every eight weeks for both dogs. King, who is setting aside about $150 a month to cover the dogs' food and vet bills, also gave the SPCA her recipe for home-cooked organic pet food.

How to prepare for your pets' lives after you're gone? Here are some choices:

The easy route

The simplest and least costly way is an informal arrangement, asking a trusted friend, neighbor or family member to assume care of your pet should something happen to you.

"Make sure the person is willing and able to take your animal, both financially and (life) circumstances," said Nolo's Randolph.

And since the average dog or cat costs an estimated $1,000 a year in food and vet bills, it's a good idea to provide some financial help, ideally in either a will or a trust. (For more of Randolph's tips, look under "Pet Law" at nolo.com.)

For those who don't have a specific person in mind as their pet caretaker, many animal shelters and organizations like SPCA have "guardian care" programs.

"Some people simply ask that we find a good, permanent adoptive home for their animal after they're gone," said Steve Potter, development director for the Sacramento SPCA. "Some are more specific, like Fluffy doesn't go to a home with children or to a home with other pets."

Pet trusts

If you want more assurance and supervision over Fluffy's long-term care, consider a pet trust, which names a trustee to ensure your wishes are carried out.

Sacramento estate planning attorney Mark Drobny has done more than 100 pet trusts of all kinds for clients over the years, including:

The Wilton couple with no kids and seven mules, whose trust names a caretaker to live on their ranch for the mules' natural lives, which can be 40 years or more. Or the reptile lover, who arrived for an attorney visit with a snake draped around her neck and two more in a carrying case. (Her pet trust places a caretaker in her home until the reptiles' demise; the remaining estate will be donated toward an SPCA adoption center for turtles, iguanas and other reptiles.)

A pet trust can cost from $750 to $2,500, depending on whether it's part of a new living trust or added to an existing estate plan.

Other options

More elaborate choices are available. The TLC for Pets Program at the University of California, Davis, School of Veterinary Medicine, for instance, allows dog and cat owners to provide for their pet's lifetime care, including an adoptive home and veterinary care, including surgeries.

That TLC is not cheap. For dogs, the tax-deductible UCD gift is $50,000; for cats, it's $30,000. There's also a $1,500 enrollment fee that covers an initial in-home visit to meet the pet, assess its health and home environment. (The program, launched in 2006, originally included horses, but equines were dropped due to cost issues.)

Celeste Borelli, TLC coordinator, said the price sounds steep but noted that surgical bills and cancer treatments can be costly for aging pets. At the end of the pet's life, any unused funds remain in the TLC program, part of UCD's Center for Companion Animal Health.

Borelli said 12 families with 28 animals are currently enrolled.

Regardless of what route you take, having a pet-care plan eliminates any lingering worries about what will happen once you're gone.

"After I signed the paperwork, I just had so much peace of mind, knowing my guys will be well cared for," said Elk Grove's King, while her short-legged companions jostled for room on her lap. Or as she joked, "If Leona Helmsley could do it, why not me, too?"

Call The Bee's Claudia Buck, (916) 321-1968

What You Should Know About Comments on Sacbee.com

Sacbee.com is happy to provide a forum for reader interaction, discussion, feedback and reaction to our stories. However, we reserve the right to delete inappropriate comments or ban users who can't play nice. (See our full terms of service here.)

Here are some rules of the road:

• Keep your comments civil. Don't insult one another or the subjects of our articles. If you think a comment violates our guidelines click the "report abuse" button to notify the moderators. Responding to the comment will only encourage bad behavior.

• Don't use profanities, vulgarities or hate speech. This is a general interest news site. Sometimes, there are children present. Don't say anything in a way you wouldn't want your own child to hear.

• Do not attack other users; focus your comments on issues, not individuals.

• Stay on topic. Only post comments relevant to the article at hand. If you want to discuss an issue with a specific user, click on his profile name and send him a direct message.

• Do not copy and paste outside material into the comment box.

• Don't repeat the same comment over and over. We heard you the first time.

• Do not use the commenting system for advertising. That's spam and it isn't allowed.

• Don't use all capital letters. That's akin to yelling and not appreciated by the audience.

You should also know that The Sacramento Bee does not screen comments before they are posted. You are more likely to see inappropriate comments before our staff does, so we ask that you click the "report abuse" button to submit those comments for moderator review. You also may notify us via email at feedback@sacbee.com. Note the headline on which the comment is made and tell us the profile name of the user who made the comment. Remember, comment moderation is subjective. You may find some material objectionable that we won't and vice versa.

If you submit a comment, the user name of your account will appear along with it. Users cannot remove their own comments once they have submitted them, but you may ask our staff to retract one of your comments by sending an email to feedback@sacbee.com. Again, make sure you note the headline on which the comment is made and tell us your profile name.

If you choose to use our "reply to comment" feature, you should note that the length of the quoted comment will count against the size limits for your comment.

Personal Finance

Tuesday, November 9, 2010