Money Conversations That Cross Cultural Lines

According to a survey conducted by the FDIC Black and Hispanic communities are not as financially savvy as other communities.  So why is that?  Have some cultures been provided early financial literacy education as well as opportunity?  As I teach workshops and seminars at many different schools and organizations I look at the faces of all my class participants.  I listen to their experiences around money.  What I have come to understand is all cultures learn from experience with regards to money.  Some people learn lessons from working their family businesses, some from international travels, some from church, some from sitting at the kitchen table with their parent balancing their checkbook or paying bills; and others learn hard lessons.  Hard lessons are money mistakes made initially then either are corrected or are developed into a bad habit.  For example the first time you got a bounced check fee from the bank it may have caused a domino effect.  The mistake was made and hopefully corrected, but my many years in the banking industry tells me that a significant amount of first time offenders traditionally become repeat offenders.  We all learn from experience regardless of our race, but because of race and culture we are exposed and experience many different things.  When you look at your circle of friends, church members, or coworkers try and understand their money experiences and if you can help take the opportunity to do so.  If you learn something take the opportunity to be open and listen. Mark your calendars for the CNN broadcast of "Almighty Debt, a Black in America Special."   Reported by Soledad O' Brien.  Thursday, October 21st at 9 p.m. est.  

"Payday"

What does payday mean your children?  Have you ever made a comment about only making a purchase on “Payday” or waiting to buy something on “Payday”.  If your children are hearing this they may be thinking only on “Payday” can I ask for something or can we afford something.  Last night I was speaking with my sister in law and my niece asked if she could have something on my sister in law’s “Payday”.  Now Sophia, my niece, has no idea when payday is or even how often it comes, but she now relies on “payday” to ask for things she normally wouldn’t ask for because of their expense or the idea that it’s too grand and she must wait until “payday” to get it.

Students today are clueless of the expenses that eat up “payday” when it comes around weekly, biweekly, bi monthly, or monthly.  Here are a few things to make the countdown to “Payday” easy for you and less interesting for your kids. 

1)      Show them what expenses are paid during the month and that your paycheck goes to fund those expenses.  Be open and don’t shelter your kids they are smarter than we think.  They don’t need to know what you make but be realistic in what you decide to share if the number are made up.  if the family has a spending plan make sure your kids get a spending plan too.  If you don’t have a spending plan or budget now’s the time. Visit the Smart Kidz Money Matters website at www.smartkidzmatter.com and get a copy of an excel budget worksheet.

2)      Your kids wouldn’t worry about “Payday” so much if they had a Financial Savings Goal. Have them make a list of the things they want and create a savings goal around it.  Visit the Smart Kidz Money Matters website at www.smartkidzmatter.com and get a copy of a Setting Financial Saving Goal Worksheet.