Comments on: Review: The First National Bank of Dad http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/ Simple, applicable personal finance advice for the modern world Sat, 21 Nov 2009 19:22:21 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Amanda http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-723935 Amanda Fri, 10 Jul 2009 21:36:40 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-723935 To put the principles of Bank of Dad into practice, use the Chore Bank. It's an easy to use iPhone app that allows you to set up a virtual bank account for each of your kids. You can create a chore list too, so they can add money to their account by doing chores. You can handle deposits and withdrawals, and even set an interest rate. For more info check out: http://www.datajedi.com/choreBank/ To put the principles of Bank of Dad into practice, use the Chore Bank. It’s an easy to use iPhone app that allows you to set up a virtual bank account for each of your kids.

You can create a chore list too, so they can add money to their account by doing chores. You can handle deposits and withdrawals, and even set an interest rate. For more info check out:

http://www.datajedi.com/choreBank/

]]> By: Joyful Abode http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-355675 Joyful Abode Sat, 16 Aug 2008 18:18:23 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-355675 This sounds a little ridiculous to me... why go through all this trouble to create a fake bank at home when the real world is out there? I'm sorry if the low compounding frequency of interest in REAL savings accounts don't APPEAR to have much value to adults...but that's the thing. Kids aren't adults. When I was 8, I had my own savings account (at a real bank) and I would save my allowance and extra money from odd jobs and deposit it a few dollars at a time. I LOVED seeing my account balance go up (even just from the money I had saved myself, not interest). And when that 12 cents of interest showed up? That was just gravy! Having a real savings account helped me realize the value of saving, not just of getting "free money" through interest. And when I wanted to buy something important, I generally could because I had been saving. And that was just the coolest thing. :) This sounds a little ridiculous to me… why go through all this trouble to create a fake bank at home when the real world is out there?

I’m sorry if the low compounding frequency of interest in REAL savings accounts don’t APPEAR to have much value to adults…but that’s the thing. Kids aren’t adults.

When I was 8, I had my own savings account (at a real bank) and I would save my allowance and extra money from odd jobs and deposit it a few dollars at a time. I LOVED seeing my account balance go up (even just from the money I had saved myself, not interest). And when that 12 cents of interest showed up? That was just gravy!

Having a real savings account helped me realize the value of saving, not just of getting “free money” through interest. And when I wanted to buy something important, I generally could because I had been saving. And that was just the coolest thing. :)

]]> By: HebsFarm http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-80218 HebsFarm Mon, 01 Oct 2007 21:08:42 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-80218 My Dad did a unique thing with me - I've never met anyone else who conducted kid financing the way he did. I didn't get an allowance, but I was paid for farm work. I had to submit an itemized statement for completed chores in order to get paid. Instead of giving me money up front for school expenses, he would reimburse me for them, based on my periodic written expense reports. If I wanted an item I couldn't afford, I had to ask Dad for it. Sometimes he would spring for it, and sometimes not, but all this dialogue and negotation sure kept our relationship closer than him just handing me some cash and letting me head out to the mall. My Dad did a unique thing with me – I’ve never met anyone else who conducted kid financing the way he did. I didn’t get an allowance, but I was paid for farm work. I had to submit an itemized statement for completed chores in order to get paid. Instead of giving me money up front for school expenses, he would reimburse me for them, based on my periodic written expense reports. If I wanted an item I couldn’t afford, I had to ask Dad for it. Sometimes he would spring for it, and sometimes not, but all this dialogue and negotation sure kept our relationship closer than him just handing me some cash and letting me head out to the mall.

]]> By: Mrs. Micah http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-79625 Mrs. Micah Sat, 29 Sep 2007 23:49:24 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-79625 Thanks for the review. I've wondered how I'll teach my children a lot of things, I'll definitely look into this before teaching them (the hypothetical ones) about money. :-) Thanks for the review. I’ve wondered how I’ll teach my children a lot of things, I’ll definitely look into this before teaching them (the hypothetical ones) about money. :-)

]]> By: daydreamr http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-79498 daydreamr Sat, 29 Sep 2007 16:53:53 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-79498 This is a great concept, except for the fact that it reinforces immediate gratification. It's OK to have a play bank in early years but I think kids need to learn the concepts of the real world as early as possible. In the real world, a simple savings account may only yield 38 cents a month or whatever. I started saving from an early age and the statements would come in every month and my mom would show it too me and be very positive about the few cents interest it acrued. But she would also point out the fact that the interest was adding up each month. Don't get me wrong. It's a great idea. I just think it's better to teach them about the realistic side or else they will remember the early years of the bank of dad and it won't be so fun. Especially where kids don't have the concept of how much is really a lot. I think allowence is good. Instead of buying thing for the kids all the time, they can earn their money to buy what they want. That really taught me to manage what I have. I think the point is, how ever you go about doing it, it's better to teach kids about money. I know so many other people my age who don't have a clue. Some of their parents don't have a clue either. It's gotta be a lot trickyer in the days of hyperconsumerism anyway. You also have to teach kids that having an iPod doesn't make them a better person, wearing what ever brands that are 'cool' doesnt make them cool, etc. This is a great concept, except for the fact that it reinforces immediate gratification. It’s OK to have a play bank in early years but I think kids need to learn the concepts of the real world as early as possible. In the real world, a simple savings account may only yield 38 cents a month or whatever. I started saving from an early age and the statements would come in every month and my mom would show it too me and be very positive about the few cents interest it acrued. But she would also point out the fact that the interest was adding up each month. Don’t get me wrong. It’s a great idea. I just think it’s better to teach them about the realistic side or else they will remember the early years of the bank of dad and it won’t be so fun. Especially where kids don’t have the concept of how much is really a lot. I think allowence is good. Instead of buying thing for the kids all the time, they can earn their money to buy what they want. That really taught me to manage what I have. I think the point is, how ever you go about doing it, it’s better to teach kids about money. I know so many other people my age who don’t have a clue. Some of their parents don’t have a clue either. It’s gotta be a lot trickyer in the days of hyperconsumerism anyway. You also have to teach kids that having an iPod doesn’t make them a better person, wearing what ever brands that are ‘cool’ doesnt make them cool, etc.

]]> By: Margaret http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-79318 Margaret Sat, 29 Sep 2007 03:32:46 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-79318 Re: how to talk to other people's kids about money. Just a thought off the top of my head -- instead of asking kids "do you have a girl/boyfriend" (which MANY people ask kids and I think it is a terribly intrusive question), simply ask them if they have started investing yet, or have they started a savings account yet, or something to show that you are interested and approachable on the topic. Or do some of that -- if I had started saving when I was your age, I would have ... or If I hadn't gotten into debt when I was in university, I would have ... Then, when they are a little older (late teens, early twenties), they might really like to hear some financial wisdom from you. Re: how to talk to other people’s kids about money.

Just a thought off the top of my head — instead of asking kids “do you have a girl/boyfriend” (which MANY people ask kids and I think it is a terribly intrusive question), simply ask them if they have started investing yet, or have they started a savings account yet, or something to show that you are interested and approachable on the topic. Or do some of that — if I had started saving when I was your age, I would have … or If I hadn’t gotten into debt when I was in university, I would have … Then, when they are a little older (late teens, early twenties), they might really like to hear some financial wisdom from you.

]]> By: Jason Dean http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-79297 Jason Dean Sat, 29 Sep 2007 02:17:55 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-79297 Wow! I had a lot of those same ideas myself, and my wife and I were planning on implementing them with our daughter (she's 13 months right now). I'm definitely going to buy this book, and when I do, I'll be sure to click your affiliate link. Thanks! Wow! I had a lot of those same ideas myself, and my wife and I were planning on implementing them with our daughter (she’s 13 months right now). I’m definitely going to buy this book, and when I do, I’ll be sure to click your affiliate link. Thanks!

]]> By: natasha http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-79251 natasha Fri, 28 Sep 2007 23:04:40 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-79251 !wanda: Interestingly enough, there have been studies done (I'm citing studies that Freakonomics used) that show that the mere presence of books in a home increases the literacy rate of the kids inhabiting the home. It is not important that the kids are read to or that the parents read, but the availability of books in a home increase the likelihood that the people in the house not only can read, but enjoy reading. My parents read to me quite a bit until I started reading on my own, and, like both parents, I am now a voracious reader. To this day, I still find houses with no books present (or ones where the books are obviously only decorative) to be a bit visually disconcerting. !wanda: Interestingly enough, there have been studies done (I’m citing studies that Freakonomics used) that show that the mere presence of books in a home increases the literacy rate of the kids inhabiting the home. It is not important that the kids are read to or that the parents read, but the availability of books in a home increase the likelihood that the people in the house not only can read, but enjoy reading.

My parents read to me quite a bit until I started reading on my own, and, like both parents, I am now a voracious reader. To this day, I still find houses with no books present (or ones where the books are obviously only decorative) to be a bit visually disconcerting.

]]> By: plonkee http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-79210 plonkee Fri, 28 Sep 2007 20:55:53 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-79210 As an adult, I love the idea, but as a kid - over my dead body would I have let my dad have hands on my money. As an adult, I love the idea, but as a kid – over my dead body would I have let my dad have hands on my money.

]]> By: mapgirl http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-79177 mapgirl Fri, 28 Sep 2007 19:43:37 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-79177 Hi Trent, You are going to laugh. But I totally agree on point #8. I love to read. I was at Best Buy today with my co-workers looking at games and the Wii. I marveled at the fact that my favorite hobby is reading and as much as I was tempted to buy a Wii (for a TV I don't even own yet), I returned to the fact that my favorite hobby only takes some electricity to power the light I read by at night. Reading is awesome! Hi Trent,

You are going to laugh. But I totally agree on point #8. I love to read. I was at Best Buy today with my co-workers looking at games and the Wii. I marveled at the fact that my favorite hobby is reading and as much as I was tempted to buy a Wii (for a TV I don’t even own yet), I returned to the fact that my favorite hobby only takes some electricity to power the light I read by at night.

Reading is awesome!

]]> By: !wanda http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-79143 !wanda Fri, 28 Sep 2007 18:22:54 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-79143 I don't know about the hullabaloo around "reading to kids." Although both my parents are prolific readers and were more than happy to give me books to read on my own, they didn't read books to me. They don't even know when I learned to read, but it was around 3 or 4, and by 5 or 6 I was reading books with words my mother couldn't pronounce. Being the type of parent who would read to one's kids is probably more important than the actual act of reading to one's kids. I don’t know about the hullabaloo around “reading to kids.” Although both my parents are prolific readers and were more than happy to give me books to read on my own, they didn’t read books to me. They don’t even know when I learned to read, but it was around 3 or 4, and by 5 or 6 I was reading books with words my mother couldn’t pronounce. Being the type of parent who would read to one’s kids is probably more important than the actual act of reading to one’s kids.

]]> By: Samantha http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-79137 Samantha Fri, 28 Sep 2007 18:00:13 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-79137 Anna, LOL My son just turned 8 and for about a year now says he will move out when he gets upset. It's not a teenager thing at all. For my opionin on the neices/nephews idea: It would be very hard to not step on any toes. You can't really tell them what to do with their money. Maybe at gift times, instead of giving them cash or toys, you could start a savings account for them and give them the deposit slips with their cards. Each year you could show them the total and how it increases. Anna, LOL My son just turned 8 and for about a year now says he will move out when he gets upset. It’s not a teenager thing at all.

For my opionin on the neices/nephews idea: It would be very hard to not step on any toes. You can’t really tell them what to do with their money. Maybe at gift times, instead of giving them cash or toys, you could start a savings account for them and give them the deposit slips with their cards. Each year you could show them the total and how it increases.

]]> By: Trent http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-79135 Trent Fri, 28 Sep 2007 17:57:59 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-79135 Anna: I agree. The interest rate should be nice and high at first until they get the concept, then lowered over time and eventually moved to a real bank. Anna: I agree. The interest rate should be nice and high at first until they get the concept, then lowered over time and eventually moved to a real bank.

]]> By: Anna http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-79130 Anna Fri, 28 Sep 2007 17:52:55 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-79130 I'm also very interested in knowing if there are techniques for teaching other people's children these types of things without stepping on toes. I have neices and nephews that I'd like to teach this stuff to as well. @Geekman: This method seems to be aimed at elementary aged children, so I'm thinking that the older the child, the lower the interest rate would be. Once they get to puberty and hate their "evil" parents, they should be done with what the Bank of Dad can teach them, and their money should be in a real bank. I don't have kids, so it's possible that I'm completely wrong, but those are my thoughts. I’m also very interested in knowing if there are techniques for teaching other people’s children these types of things without stepping on toes. I have neices and nephews that I’d like to teach this stuff to as well.

@Geekman: This method seems to be aimed at elementary aged children, so I’m thinking that the older the child, the lower the interest rate would be. Once they get to puberty and hate their “evil” parents, they should be done with what the Bank of Dad can teach them, and their money should be in a real bank. I don’t have kids, so it’s possible that I’m completely wrong, but those are my thoughts.

]]> By: GeekMan http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-79119 GeekMan Fri, 28 Sep 2007 17:23:45 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-79119 It's a very interesting topic and, now that I'm a new papa, one I'm very interested in following up on. However, one issue nags at me about the whole concept and that is; what happens if your child is smart enough to save at the Bank of Dad until the interest offered each month equals their actual allowance? Taking the $20 a month and 5% interest a month as an example, it would only take 20 months, and that's not counting birthday and holiday money. I willing to bet that the average child would catch on pretty quick to this kind of "free" money. Oh, and just thinking on it now, what happens if you need to punish the child? How can you ground them or whatever if they can demand that the "bank" hand over all their money "right now" so they can move out because they hate you and you can't control them? ;-) It’s a very interesting topic and, now that I’m a new papa, one I’m very interested in following up on. However, one issue nags at me about the whole concept and that is; what happens if your child is smart enough to save at the Bank of Dad until the interest offered each month equals their actual allowance? Taking the $20 a month and 5% interest a month as an example, it would only take 20 months, and that’s not counting birthday and holiday money. I willing to bet that the average child would catch on pretty quick to this kind of “free” money.

Oh, and just thinking on it now, what happens if you need to punish the child? How can you ground them or whatever if they can demand that the “bank” hand over all their money “right now” so they can move out because they hate you and you can’t control them?

;-)

]]> By: Susy http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-79114 Susy Fri, 28 Sep 2007 17:09:36 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-79114 I would like to find something sometime on how to teach other children about money. We have nieces & nephews we'd like to teach about finances because their parents are terrible with managing money. On the other hand we don't want to step on any toes. I would like to find something sometime on how to teach other children about money. We have nieces & nephews we’d like to teach about finances because their parents are terrible with managing money. On the other hand we don’t want to step on any toes.

]]> By: Kate http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-79111 Kate Fri, 28 Sep 2007 16:57:10 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-79111 Trent, It would be interesting to hear your thoughts on the very different approach to teaching children about money that Amy Dacyczyn enumerates in the Tightwad Gazette. I don't have kids, but if I did, I think I'd fall much closer to Dacyczyn's camp than the one described in this article. Think you might discuss this sometime? Trent,

It would be interesting to hear your thoughts on the very different approach to teaching children about money that Amy Dacyczyn enumerates in the Tightwad Gazette. I don’t have kids, but if I did, I think I’d fall much closer to Dacyczyn’s camp than the one described in this article. Think you might discuss this sometime?

]]> By: Debt Free Revolution http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/comment-page-1/#comment-79098 Debt Free Revolution Fri, 28 Sep 2007 16:13:08 +0000 http://www.thesimpledollar.com/2007/09/28/review-the-first-national-bank-of-dad/#comment-79098 Does it have a chapter on "catch-up" parents?? I have a 13yo son and this whole "bank of dad (mom)" concept is intriguing as I try to teach my son the value of money! Does it have a chapter on “catch-up” parents?? I have a 13yo son and this whole “bank of dad (mom)” concept is intriguing as I try to teach my son the value of money!

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