April Is Financial Literacy Awareness Month

In recognition of this, I have included a video explaining the financial planning process and what that may mean for you, as well as information on teaching your child about money. I hope you find each of these helpful.


Teaching Your Child About Money

Ask a five-year old where money comes from, and the answer you'll probably get is "From a machine!" Children don't always understand where money really comes from, but they realize at a young age that they can use it to buy the things they want. The simple lessons you teach today will give your child a solid foundation for making a lifetime of financial decisions.

Lesson 1: Learning to handle an allowance

An allowance is often a child's first brush with financial independence and allows your child to begin saving and budgeting for the things he or she wants.

You decide if and how much to giFinancial Literacyve your child based on your values and family budget, but a rule of thumb used by many parents is to give a child 50 cents or 1 dollar for every year of age. To come up with the right amount, you might also want to consider what your child will need to pay for out of his or her allowance, and how much of it will go into savings.

Some parents ask their child to earn an allowance by doing chores, while others give their child an allowance with no strings attached. If you're not sure which approach is better, then, pay your child a small allowance. You can then give him or her the chance to earn extra money by doing chores that fall outside of his or her normal household responsibilities.

If you decide to give your child an allowance, here are some things to keep in mind:

Set some parameters. Sit down and talk to your child about the types of purchases you expect him or her to make, and how much of the allowance should go towards savings.

Stick to a regular schedule. Give your child the same amount of money on the same day each week.

Consider giving an allowance "raise" to reward your child for handling his or her allowance well.

Lesson 2: Opening a bank account

Taking your child to your local bank or credit union to open an account (or opening an account online) is a simple way to introduce the concept of saving money.

Many banks and credit unions have programs that provide activities and incentives designed to help children learn financial basics. Here are some other ways you can help your child develop good savings habits:

Help your child understand how interest compounds by showing him or her how much "free money" has been earned on deposits.

Offer to match whatever your child saves towards a long-term goal.

Let your child take a few dollars out of the account occasionally. Young children who see money going into the account but never coming out may quickly lose interest in saving.

Lesson 3: Setting and saving for financial goals

When your child gets money from relatives, you will want him or her to save it for college, but he or she would rather spend it now. Let's face it: children don't always see the value of putting money away for the future. So how can you get your child excited about setting and saving for financial goals? Here are a few ideas:

Let your child set his or her own goals (within reason). This will give your child some incentive to save.

Encourage your child to divide his or her money up. For instance, your child might want to save some of it towards a long-term goal, share some of it with a charity, and spend some of it right away.

Write down each goal, and the amount that must be saved each day, week, or month to reach it. This will help your child learn the difference between short-term and long-term goals.

Tape a picture of an item your child wants to a goal chart, bank, or jar. This helps a young child make the connection between setting a goal and saving for it.

Finally, don't expect a young child to set long-term goals. Young children may lose interest in goals that take longer than a week or two to reach. And if your child fails to reach a goal, chalk it up to experience. Over time, your child will learn to become a more disciplined saver.

 Lesson 4: Becoming a smart consumer

Commercials. Peer pressure. The mall. Children are constantly tempted to spend money but aren't born with the ability to spend it wisely. Your child needs guidance from you to make good buying decisions. Here are a few things you can do to help your child become a smart consumer:

Set aside one day a month to take your child shopping. This will encourage your child to save up for something he or she really wants rather than buying something on impulse.

Just say no. You can teach your child to think carefully about purchases by explaining that you will not buy him or her something every time you go shopping. Instead, suggest that your child try items out in the store, then put them on a birthday or holiday wish list.

Show your child how to compare items based on price and quality. For instance, when you go grocery shopping, teach him or her to find the prices on the items or on the shelves, and explain why you're choosing to buy one brand rather than another.

Let your child make mistakes. If the toy your child insists on buying breaks, or turns out to be less fun than it looked on the commercials, eventually your child will learn to make good choices even when you're not there to give advice.

 Current Economic Conditions

Economic OutlookiIn the first quarter of this year, the weather played the lead role in the economic picture for the U.S. Bad weather was rough on retail sales, consumer spending and restrained economic growth. It was nasty for the majority of the country, and everyone I've talked with is DONE with winter!

Ironically, various geopolitical events, Russia's aggression toward Ukraine and hostilities between North and South Korea, to name a couple, have had limited if any impact on global stock markets. Also, in the past week, the new Federal Reserve Chairwoman, Janet Yellen, made it clear that she and other members of the Federal Reserve are keenly aware that the U.S. economy, as it relates to the job market and economic growth, is not back to normal. As such, she reassured Wall Street that the Fed does not plan to raise interest rates until the U.S. economic picture is on more solid footing. Basically she does not want to spook the markets. Also, it appears that any negative geopolitical news seems to be nullified by the Fed's comments that low interest rates will be around for the time being. 

Annual (ADV) Disclosure Offer

As a registered investment adviser, we are required to annually furnish you with updated information about our firm, which we detail in our firm’s Form ADV Part 2 Brochure disclosure document.  

Since the filing of the firm’s last annual update Brochure, Integrity Investment Advisors, LLC has changed it legal name to Integrity Advisory, LLC (IAG). Although we changed our firm name, our address, contact information, regulatory information and other information remain the same. In addition, IAG has developed and begun using model portfolios for managing certain types of accounts. To reflect this change in our practice, we have updated our description of our advisory services, our description of our investment strategy, and our description of our review process in the Brochure. No other material changes were made. 

If you would like a complete copy of our current 2014 Brochure, you may contact me by email or phone, and I will be happy to send you a complete copy free of charge. You may also obtain a copy of the form and other information about our firm from the SEC’s Investment Adviser Public Disclosure (IAPD) system at www.adviserinfo.sec.gov

IRA and Roth IRA Contribution Deadlines

For those who wish to make 2013 regular or Roth IRA contributions, the deadline is April 15th.  The deadline for SEP-IRA contributions is April 15th or the extended due date of the tax return. If you have any questions regarding this, please contact us or your tax professional well in advance of the before mentioned deadlines.


"Associate yourself with men of good quality if you esteem your own reputation for 'tis better to be alone than in bad company."

                   George Washington

"Have a purpose in life, and having it, throw into your work such strength of mind and muscle as God has given you."

                   Thomas Carlyle


Tony Moeller, CPA

The information listed in this commentary is a compilation of various publicly available sources and is for informational purposes only. It is not a recommendation or solicitation of any particular investment or strategy. A risk of loss is involved with investments in the stock and bond markets.

If you enjoy the commentary and believe others may benefit or find it of interest, please feel free to forward it on. Also, interested individuals can contact us, and we will be happy to add them to our mailing list.


Sign up to receive our Commentary

First Name:
Last Name:
Security Code:
Back to top