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The First National Bank of Dad: A Foolproof Method for Teaching Your Kids the Value of Money Paperback – April 24, 2007
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From Publishers Weekly
Copyright 2002 Reed Business Information, Inc. --This text refers to an out of print or unavailable edition of this title.
"Saving money . . . should be the child's choice. For an idea that might get your kids to a nest egg voluntarily, take a look at David Owen's book The First National Bank of Dad." -- Jane Bryant Quin, Newsweek
"When your children grow up, few things will affect their lives as much as the presence or absence of money. Unfortunately, most teachers and parents devote little systematic attention to teaching them how to live their economic lives. Start with this enjoyable book for some excellent suggestions." -- Pittsburgh Post-Gazette
"This is a terrific little book that could completely change the way many parents think about children and money." -- Publishers Weekly
Top Customer Reviews
Also, the simple language used to describe stocks and bonds could be very useful for young, inquiring minds. Almost surprisingly at the end he segues into the benefits of reading aloud for impressionable minds, and again makes good solid sense. In sum a great book for parents to own and read and even for grandparents to buy for them.
The first half of this book was great and talked about the author's experience teaching his kids and how he was able to motivate them to save because they wanted to (not because he thought it was the "right thing to do"). He also talks about giving them a safe environment where they can have good and bad experiences with money while they are young and the consequences are still limited. I like his philosophy and his explanations. The first half did a great job offering a new perspective on teaching kids.
The second half was simply too basic for what I wanted. Very basic explanations on "what is a stock" and "what is a mutual fund". This would be helpful if you didn't know anything about these and had to explain it to kids but the explanations were extremely basic.
I couldn't put the book down during the first half but then I couldn't stay awake during the second half.
What the author did was create savings accounts for his children that conformed to their perceptions of time. Instead of offering 2-3% a year in interest, he offered 5% PER MONTH interest. This made saving more attractive and taught spending restraint. Additionally, the author and his wife gradually gave more and more financial responsibility to their children as they grew older. One example stands out: While on vacation, the author watched another child beg and plead and throw a fit until his father agreed to buy a $5 tomahawk at a souvenir shop -- the cheap tomahawk was broken before the pair even made it to their car. The author's child, by contrast, since he was spending his own money, and since he had an incentive to save rather than consume, bought a $0.30 item (after negotiating with the shopkeeper). People, including children, make much wiser decisions when they're spending their OWN money.
Additionally, the author talks about how he established a virtual stock exchange (using real money) when his children were interested in stocks.Read more ›
* Kids will make good (financial) decisions with the proper incentives.
* Kids need the ability to make mistakes which means you have to let them buy whatever they want (within the house rules), even if it seems like a waste of money.
* Giving them control improves your parent/child relationship.
* Parents shouldn't use money to control their kids. It's bad for everyone.
I've been doing this for a few months now and it has produced great results. My kids are entirely responsible for the money they spend and it's that ownership produces thoughtful spending generally. Sure, I have to bite my tongue at the dollar store sometimes, but when the toy breaks, it's their decision, and they learn. My kids are 6 and 8 and they already understand the concept of compound interest.
[...] to the rescue:
When my daughter got old enough to actually start a virtual bank for her allowance, I was dreading setting up a spreadsheet and conscientiously keeping up with deposits, withdrawals and interest. Luckily I discovered First Kid Bank ([...]) which is a virtual online allowance bank and does everything needed to follow David's approach. You can set up multiple accounts (Allowance, Savings, Charity, etc.), pay interest on a daily, weekly or monthly basis (with different rates for each account) and even cap the interest paid. You can transfer money between account and do most other transactions you'd expect. And it even has a nice mobile interface so that you can easily withdraw money using your smart phone. And it's free (at least for now)!
Most Recent Customer Reviews
I was told about this book over 10 years ago in its original printing and have been doing it with my children since that time. Read morePublished 9 months ago by RS
Lots of good suggestions that can be easily adapted to your situation.Published 13 months ago by CGunther
David Owen has a great summary of his book on EconTalk. http://www.econtalk.org/archives/2012/05/owen_on_parenti.html
The ideas he presents are novel and powerful. Read more
David Owen does a good job keeping his material fun and playful while talking about what could be a very dry subject. Read morePublished on June 10, 2014 by Adrian Harris Crowne
The first few chapters were helpful in setting up my bank of mom. I would have liked more direction on how to set up Excel or another program to do the interest calculations. Read morePublished on February 2, 2014 by Tall Mom
Practical, quick read for parents. We started implementing the Bank of Dad idea immediately and our kids ages 6 and 9 are so excited to save money and earn interest. Read morePublished on January 8, 2014 by Lynette Larkins
I am always skeptical about parenting advice, yet I keep reading it. Owen breaks down a plan to teach fiscal responsibility in a simple way peppered with humor and illustrative... Read morePublished on December 29, 2013 by J. Hinkle
My son is now 12 years old. I bought this book about 5 years ago to help my son learn the value of money. Read morePublished on August 9, 2013 by KRS