## August 2017 Interest Report (and Total Savings at the Bank of Mom)

For over a year, I have been paying J interest at the Bank of Mom.

He started with \$45.00 and earned \$1.35 the first month. (I pay 3% monthly.)

This month, he’s up to \$231.99 and earned \$6.76 in interest.

I print and email him a copy of the statement each month. (He has his own email address and when I send the statement, I add other notes and tips. Hopefully he will read these someday and remember what we talked about.)

Here’s his statement for this month:

## How Much Does Your Vacation Really Cost?

Back in March, we went on a road trip and J calculated how much we spent. I thought it was great for him to be able to see exactly how much a vacation really costs.

So when we went to Virginia Beach a few weeks ago, I wanted to have him calculate the cost again, with a few tweaks.

During the trip, we collected all receipts in a folder. We didn’t attempt to do any worksheets or calculating while we were away! A few days after we got home, we sat down and filled out our new and improved trip log (once all of the EZ Pass transactions posted).

This time, we divided all of our receipts into categories. We ended up with seven groups: gas, tolls, groceries, eating out/snacks, household items and lodging.

He labeled each green box with the category. Then he used a running total approach with the register. This involves:

## The Great Allowance Debate

Allowances. To give or not to give. It’s a hot topic.

To put it simply, I think there are three main camps:

• Don’t give it at all. I already feed, clothe and shelter you.
• Give it unconditionally. Here is some money and it is yours.
• Give it conditionally, based on desired actions. Here is money for completing X chores, getting Y grades, etc.

## My Kid Is Not Motivated By Money

At the end of every school year, the teacher sends home a few summer learning packets. There is normally a packet for math and one for reading/language skills.

You’ve probably heard the statistics on summer learning loss — that kids lose at least one month of learning over the summer. I’m in favor of the idea of these packets, but in practice they’ve never worked for us.

We just don’t get around to it. Summer is busy and fun, we’re outdoors trying to soak up every last bit of warm weather and daylight that we can. We’re doing all of the things that we don’t get to do the rest of the year — swim, camp, picnic and hit the local amusement parks.

So this summer, I had a brilliant idea (or so I thought). I had the solution that would motivate J to want to do those worksheets.

If you’ve been around awhile, you know that my focus on National Bank of Mom is 1) teaching my son kick-ass money management skills and 2) fostering good communication between us.

I teach him how to balance his savings, spending and giving accounts, how to plan for a large purchase and how to save at least 10% of his income.

The more I thought about it, though, the more I realized that talk will only get me so far.

If I want to instill these skills in my son, I have to make sure I’m walking the talk. I have to look at my own actions and behavior and ask myself, “Is what I’m doing contradicting what I’m saying?”

Ralph Waldo Emerson said:

“What you do speaks so loud that I cannot hear what you say.”

That couldn’t be more true. So much of what we learn is unspoken. We pick things up from our friends, family and society around us — what’s “normal” and expected. How life works.

To that end, ask yourself the following questions and examine your behavior: