Children are not born with any particular knowledge or skills, therefore everything they need to know about how to survive in the real world they have to either learn at school or from you, their parents. Sadly, children don't learn vital financial les

The Family Bank

The Family Guide to Financially Successful ChildrenBy Sergio Dinaro

AuthorHouse

Copyright © 2012 Sergio Dinaro
All right reserved.
ISBN: 978-1-4772-2390-1

Contents

Our Bank Members Never Fail......................................................................ixSection I: Opening The Family Bank...............................................................1Chapter 1 The CEO and the Mentor (and the Parent): Understanding the Mindset.....................3Chapter 2 The CEO................................................................................6Chapter 3 The Mentor.............................................................................11Chapter 4 The Parent: Retaining your Identity....................................................22Chapter 5 Setting up The Family Bank.............................................................26Section II: Moving and Controlling Money.........................................................47Chapter 6 Savings Account........................................................................53Chapter 7 Checking Account.......................................................................59Chapter 8 Automatic Teller Machines (ATM)........................................................63Section III: Family Bank Employment..............................................................67Chapter 9 Searching for Employment...............................................................71Chapter 10 Building a Resume.....................................................................85Chapter 11 Preparing for the Interview...........................................................96Chapter 12 The Interview.........................................................................110Chapter 13 The Callback..........................................................................115Section IV: Professional Development.............................................................117Chapter 14 Rules of the Daily Grind..............................................................121Chapter 15 Vacation and Sick Time................................................................127Chapter 16 Write-ups.............................................................................131Chapter 17 Termination...........................................................................136Chapter 18 Bonuses and Raises....................................................................142Section IV: Paying Bills.........................................................................145Chapter 19 Lunch Money...........................................................................149Chapter 20 Rent..................................................................................151Section V: Managing Money........................................................................153Chapter 21 Credit and Your Credit Score..........................................................159Chapter 22 Interest..............................................................................173Chapter 23 Credit Cards..........................................................................178Chapter 24 Loans.................................................................................190Section VII: Entrepreneurship....................................................................199Chapter 25 Starting Up the Family Bank Small Business............................................203Chapter 26 Creating the Business Proposal........................................................206Chapter 27 Presenting the Business Proposal......................................................212Chapter 28 Running The Family Business...........................................................219Section VIII: Life Long Financial Success........................................................221

Chapter One

The CEO and the Mentor (and the Parent): Understanding the Mindset

Both the CEO and the Mentor are literal positions in The Family Bank. Everything you do teaches your kids lessons about life, but in this case you have actual roles in The Family Bank as a Mentor and a CEO, in order to teach your children specific lessons about money and about the financial world. Let's take a look.

Congratulations! You've just been promoted to Corporate Executive Officer (CEO) of the most important business organization in the world: The (insert your family name here) Family Bank! Unlike Wall Street, The Family Bank's worth is determined by the "values" gained by your children, as they are your primary investment. Thus, being the CEO is important, but your #1 priority is to be an individual Mentor to each of your children. No two bank customer's needs are the same, and neither are the needs of each of your children. Each of your bank's members will have his own individual strengths and weaknesses, talents and needs; therefore, your job is to identify these needs and be a Mentor to each of your kids. We'll discuss how to do this in a minute, but first a word about how to not lose your identity as a parent while playing the roles of Mentor and of CEO.

It's important to explain up front that you will play the role of both the CEO and the Mentor (and also the Parent), but never at the same time. The Parent is not a specific role in The Family Bank; you will just work the roles of CEO and Mentor around being your child's parent.

The CEO runs The Family Bank, but the Mentor teaches your children how the bank works, how the financial system works and all the intricacies of finance. The CEO does not teach your children lessons, just like the CEO of any corporation is not going to sit you down and teach you how to not lose your money to his company. So, you are never going to "mentor" your child as the CEO; however, keep in mind that you are still always her parent. As a parent you create rules for your children that apply and are enforced at all times. Incorporating your roles as the CEO or as the Mentor will never trump your role as a parent. In fact, they will compliment it. The roles of CEO and of the Mentor are creations that enhance your power and ability to teach lasting and important lessons.

As a parent you set rules for your children, such as, "No buying candy without parental permission first." So, when you and your daughter are at the grocery store and your daughter decides to test the boundaries of the Family Bank by purchasing candy with her Family Bank Account, without your permission, what can you do?

Real banks don't stop you from making bad financial decisions, so you won't stop your daughter from spending her money, either. You will allow her to buy the candy without complaint and give her a receipt for her purchase (as the CEO). After she has purchased the candy, you will immediately confiscate it, because it is contraband and you did not give her permission to buy it (as the Parent). You will then take quick notes in your day planner of the details of the transaction and your thoughts on the matter, so that you can discuss her financial decision making process with her at your next Weekly Meeting (as the Mentor), which we will discuss in Chapter 3.

Now, if you're anything like me, the idea of not regulating your child's purchases on the spot is probably giving you pause right about now. Fear not! Chapter 4 will discuss this apparent dilemma thoroughly, and fully explain the reasons behind allowing your child to make her own financial decisions and mistakes.

So you see, each role in The Family Bank is distinct and separate, but they all work together in harmony around you being her parent, to...