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MONEY-SMART KIDS
Becoming a Money-Smart Parent
by Janet Bodnar

I'll bet there are lots of parents who would like to teach their kids how to manage money, but are embarrassed because they're not very good at managing money themselves. What if the kids ask questions we don't know how to answer? Do you have any words of advice for those of us who are financially challenged?

For starters, relax. Most of the questions your kids ask about money aren't going to be complicated. They won't ask you to explain how the Federal Reserve system works, nor will they request a complete accounting of your family's finances.

In fact, the subjects that come up most frequently with children involve everyday events: comparing prices at a store, asking for something they see on TV, negotiating an allowance, opening a savings account at a bank. All of these are topics you should be able to handle (especially if you read this column regularly).

But let's suppose your kids do put you on the spot. Maybe you feel sheepish about encouraging them to save money because you don't have a regular savings program. Or maybe you don't feel confident talking about investing in the stock market because you don't do it yourself. And how can you warn them about the pitfalls of credit when you're charged to the max on all of your cards?

Instead of ducking those issues, face up to them. Use your kids' questions as an opportunity to get your own financial house in order.

If you join your employer's 401(k) or other retirement plan, you can honestly answer yes when your kids ask if you save money. Learning about the stock market will help you invest your retirement money wisely, and you can pass along that wisdom to your kids. If your credit-card bills are out of control, see a credit counselor, if necessary, and come up with a plan for paying them off.

And thank your kids for helping you become a money-smart parent.

How to get babysitting jobs

I babysit to earn money, and I'd like to give some ideas to the 12-year-old girl who wanted to babysit but couldn't find people who would hire her. Preschools and day-care centers are good places to look for clients. I also went door-to-door in my neighborhood to get jobs, and that worked well.

Thanks for the ideas. It's always nice to hear a success story.