The First National Bank of Dad: The Best Way to Teach Kids About Money

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Simon & Schuster, Jan 14, 2003 - Family & Relationships - 208 pages
10 Reviews
Most parents do more harm than good when they try to teach their children about money. They make saving seem like a punishment, and force their children to view reckless spending as their only rational choice. To most kids, a savings account is just a black hole that swallows birthday checks.
David Owen, a New Yorker staff writer and the father of two children, has devised a revolutionary new way to teach kids about money. In The First National Bank of Dad, he explains how he helped his own son and daughter become eager savers and rational spenders. He started by setting up a bank of his own at home and offering his young children an attractively high rate of return on any amount they chose to save. "If you hang on to some of your wealth instead of spending it immediately," he told them, "in a little while, you'll be able to double or even triple your allowance." A few years later, he started his own stock market and money-market fund for them.
Most children already have a pretty good idea of how money works, Owen believes; that's why they are seldom interested in punitive savings schemes mandated by their parents. The first step in making children financially responsible, he writes, is to take advantage of human nature rather than ignoring it or futilely trying to change it.
"My children are often quite irresponsible with my money, and why shouldn't they be?" he writes. "But they are extremely careful with their own." The First National Bank of Dad also explains how to give children real experience with all kinds of investments, how to foster their charitable instincts, how to make them more helpful around the house, how to set their allowances, and how to help them acquire a sense of value that goes far beyond money. He also describes at length what he feels is the best investment any parent can make for a child -- an idea that will surprise most readers.

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Review: The First National Bank of Dad: The Best Way to Teach Kids About Money

User Review  - Matt Grommes - Goodreads

Very easy to follow, common sense advice. If it was written today it probably could have been done in 3 blog posts but we got it from the library and read it through in a couple of days. We've just ... Read full review

Review: The First National Bank of Dad: The Best Way to Teach Kids About Money

User Review  - Bre - Goodreads

I liked a lot of the principles he espouses (allowing children to choose, make mistakes, etc). I know that I won't implement his system exactly because my family is not his family but it is an excellent framework to build one's own financial literacy program for small humans. Read full review

Contents

An Introduction i
1
The First National Bank of Dad
17
Responsibility and Control
41
Copyright

6 other sections not shown

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About the author (2003)

David Owen plays in a weekly foursome, takes mulligans off the first tee, practices intermittently at best, wore a copper wristband because Steve Ballesteros said so, and struggles for consistency even though his swing is consistent -- just mediocre. He is a staff writer for The New Yorker, a contributing editor to Golf Digest, and a frequent contributor to The Atlantic Monthly. His other books include The First National Bank of Dad, The Chosen One, The Making of the Masters, and My Usual Game. He lives in Washington, Connecticut.

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