October 29:

"Make a list of responsibilities that you could delegate and the people you could delegate to or train in these areas. Determine what is needed to start the  process of delegation or training."—Stephen R. Covey, The 7 Habits of Highly Effective People, page 182

October 29:

Does it feel like you never have enough time? Like money, our time is limited. You can budget your time the same way you budget your money. First you need set up a time log to determine where you spend your time. The best way to log how you use your time is with your FranklinCovey planning system. Identify patterns throughout the week and analyze your time honestly. If social networking is burning too much time, commit to cut back. You can overcome your worst time wasters with an honest analysis of your time and a fresh look at how FranklinCovey products can help.

By Jean Chatzky

It’s no surprise that this year’s holiday shopping season is coming sooner, rather than later.  Retailers have started prepping for big promotions and sales, and I’ve already gotten at least a dozen emails about the season’s hottest toys and video games.  Chances are, your kids are at least mentally getting their wish lists together, and those new items won’t be left off.

But as you head to the stores this year, you might notice that old standbys like Monopoly and Barbie have been updated as well.  Monopoly now comes with a debit card instead of all those little bills, eliminating fights over who gets to be the banker, and Barbie has her own credit card in an electronic purse.  Naturally, there’s no limit.

There’s even a Hello Kitty debit card aimed at high schoolers – a smart marketing move when you consider that that age group has a purchasing power of about $200 billion a year. 

But are these new versions of your kids’ favorite toys going to hurt your chances of teaching them to be financially savvy?  They can, but only if you make Barbie – not yourself – the role model. 

• Show them the money. 

Part of the problem with this generation of kids is that they’re being raised in an era when money is largely invisible.  When I was younger, my parents took their paychecks to the bank.  They withdrew cash from a teller, and paid bills from the kitchen table. 

Today, paychecks are direct deposited, cash comes from a machine, we make purchases with plastic and pay our bills online. “Money has turned into this abstract concept.  Kids don’t go to banks, so there’s a sense that money just appears,” says Gail Duner, who founded LearningCents, a company that helps families teach their children money values, with Caryn Boxer.  Don’t get me wrong, I’m a huge advocate of paying your bills online.  But next time you go to the ATM with your child in tow, give a little lesson about how the money got into the machine in the first place. 

And hang on to that older version of Monopoly. Counting out that colored cash lets them experience both math and the feeling you get in the pit of your stomach when the big bills are gone and you’re left with $5s and $10s. 

• Give an allowance – the right way. 

Kids need to learn that money is limited, meaning they have to choose what they buy wisely.  If you give them an allowance, then continue to foot the bill for everything they want, you’re missing your chance to teach this lesson. Instead, decide what things they’re going to be responsible for buying. 

Younger kids can buy their own candy; older ones can take care of their lunches, movie tickets, and clothing.  Give them enough to cover some of these, but not so much that they can buy, buy, buy without thinking twice.  And don’t forget to encourage saving and giving in addition to spending, says Boxer.  “We hear so many nice stories about the lessons children learn by giving and making their own philanthropic choices.”

• Don’t bail them out. 

If they blow their allowance at the start of the week and you cover them for the rest, you can bet the process is going to repeat.  Stick to your guns and they’ll learn to budget, a skill they’ll really need as an adult.  But there will be times when they want to buy something that allowance just won’t cover.

“I would always give kids an opportunity to earn additional money around the house if they feel like they want to buy something and need more money,” says Janet Bodnar, author of Raising Money Smart Kids. In middle and high school, you might also encourage baby-sitting or a part time job.  Research has shown that kids can work about 15 hours a week without hurting their grades in school.

• Arm them with age-appropriate tools. 

Start with a piggy bank when they’re very young, says Bodnar, and then transition to a savings account by taking them to the bank and explaining its purpose.  In high school, a checking account linked to a debit card comes in, and with it a conversation about the fact that the only money they can pull out with their plastic is money they put in. Show them how to keep a checkbook register on paper or online.

In college, I’m a believer in credit cards. Why? Because when you graduate, you need to have a credit history in order to rent an apartment, buy a car, and sometimes even get a job.  The best way to do that is to have a credit card that you use and then pay in full and on time. Teach them to use the credit card like a debit card, only spending what they can pay back at the end of each month.  

• Be weary of stored value cards. 

These work like a debit card in that you deposit their allowance, then they can use it for purchases.  Many, like the aforementioned Hello Kitty card from MasterCard, are marketed to kids as a “cool” thing to have.  They can also be a good tool, as long as you as the parent use it properly – which means adding value on a set schedule, and not caving when they exhaust it early. 

But to some kids, plastic is “magic” money, and they’ll spend more than they would if they were dealing with cash (let’s face it, many adults suffer from this delusion, too).  If you get the sense that your child is overspending, it might be time to switch strategies. 

Finally, watch the fees, which can be pretty hefty on some of these cards that charge you for activation, ATM withdrawals, monthly maintenance, balance inquiries and inactivity. 

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October 27:

"All members of a family or professional group must be included in the creation of a mission statement. Without involvement, there is no commitment. The whole is greater than the sum of its parts."—Stephen R. Covey, The 7 Habits of Highly Effective People, page 143