For the past two weeks, Cora and I talked about what we learned about TV commercials and corporate advertising budgets. We also shared what we learned about overwhelming product endorsements, especially ones that convince us we need to buy NOW. Within the next two articles we'll share what we learned about our personal budgets and supply you with a few remedies for those summertime kids-are-out-of-school-and-we-have-a-hole-in-the-pocket budget busters. These tips help you keep your cool as the summer heats up, and they also help to instill a sense of responsibility in your kids.

First, these tips will engage your children's time (and your time, as well), but each project costs very little and the results help with the overall big picture. Each tip works for newborns up, but a few are great to save for when your children are old enough to appreciate the project. After each tip below, Cora and I establish a reason behind each recommendation:

TIP #1: Open a separate bank account for each of your children. If your bank refuses to allow your children to open an account, they may allow you to open an account on behalf of your child. If none of your local banks cooperates with you on with this project, try an online bank. Just go to a search engine and type "children bank accounts" and surf through the choices. Make sure these accounts are compound interest accounts, and prepare to deposit anywhere from $25 to $500 into each account, dependent upon the bank's policies.
REASON: Every child loves to watch money "grow," especially if it's their money. Kids (including many teens) don't care about your money, because it often seems endless. Your money is meaningless to them, but their money becomes a treasure when it's suddenly deposited into an account. Most children become very protective about this cash. Make a deal with them (if you need to): if they leave the money in the account over the summer, you'll give them a few dollars to spend each week on frivolities. This way, they'll learn exactly how compound interest works. If you don't know how this type of bank account works, read The Four Finger Theory.

TIP #2: If you open bank accounts for your children, they may need a social security card. Just cruise to Social Security Online and view the categories under Social Security Numbers and Cards for Children. You'll find that your child will need an SS# and card if they need to receive benefits, also, so a newborn is not too young for this project. You can apply online, but the best way to deal with this is to plan a trip to your local SS office so you don't need to entrust documents to snail mail.
REASON: Do you remember the first time you received your social security card? Maybe not, but I can't forget my first card. My father gave us cards when we were children (the folks held them for safekeeping), and my brothers and I felt very grown-up. If you hand your children responsibility, they'll usually take that task to heart - at least for a day or two.

TIP #3: A passport, by far, is the best tool for identification these days. For information about this document, go to the U.S. Department of State Passport Services and Information, or head to your local Post Office and ask them their procedure. Each P.O. has their little quirks about this process, and the parents must have valid ID's, so if you don't have a passport, now's the time to apply for one for yourself. New legislation requires both parents' or legal guardians' consent for applications for minors under age 14 - so you need to talk this project over with your spouse or ex-spouse. If your child is too young to sign, parents may sign for the child's first passport.
REASON: If your child travels between single-parent homes, the passport is a lifesaver. If your child heads out to college, the passport is a necessity. A passport is better than a driver's license or school ID for identification purposes in many instances. Additionally, your child may feel a sense of "worldliness" with this document. They may suddenly ask for globes or atlases and beg to watch the Discovery Channel. Wow. Direct them, also, to BUYandHOLD's Fortune 500 Companies by State. Who knows? They may want to spend their next vacation on an investment research trip?

TIP: After you accomplish the tasks above, keep the results - the bank information, the SS card, and the passport - in a safe place away from small hands. While a safety deposit box at the bank is very safe, it isn't always convenient. Take the kids on a shopping trip to buy a small fireproof safe for your home and bolt that thing to the floor. Of course, you may have another, better, solution, and I say, "Go for it."
REASON: First, to replace any of the above is a pain. Plus, children need to understand the importance of these papers. If you are a single parent and you send your child on a plane to another parent, work with your ex-spouse and ask them to retrieve the passport, etc. as soon as your child arrives. You can explain the importance of these documents; however, your child will probably explain for you, especially if they're proud of their "grown up" items.

Now that we have the essential projects out of the way, next week we'll focus on goals. No, not basketball or hockey goals, but one- to five-year goals. I wanted to warn you about this, because many adults don't have goals, because we're often too busy with the day-to-day mundane realities. If you expect your children to have goals, I want to give you a heads up that they will ask you about yours. You can thank me later?

Until Next Week,
Linda Goin