Financial Literacy Month: Book Review 2

I stopped by the library over lunch and checked out a few more investment books. Reading over my last post, I decided to dig through the stacks and find a good book on money management for kids, just to have something to report back on the ol’ blog. I pulled three books off the shelf that seemed promising (i.e. – they had nice covers and/or titles). I thought the law of averages would deliver two so-so books and one gem. I was horribly disappointed. I’ll start with the “best,” and work my way back.

Kids and Money by Jayne Pearl was…okay. I thought, given the audience and the subject matter, it should have been both a lighter and more enjoyable read. I don’t think children’s finances needs to be addressed over 254 pages with smallish font and lots of graphs. I also thought Pearl felt a little too strongly about money and its relative worth. The person who read the book before me (let’s call them Pat) apparently felt the same, only more so. They left this sticky note:

I don’t know what “B” is on Pat’s list, but I suspect it didn’t bode well for Pearl. I think that Pearl’s children probably chew their tongues as a nervous habit. I think that Pat’s children probably tried pot at age twelve. I think we should aim for something a little more balanced.

Each chapter ends with a summary list that is in itself boring and often intimidatingly long. Pearl’s not one for brevity. Anyway, here’s the layout of the book:

- Making the Most of Allowance, Gifts, and Work
- Saving and Investing for Tots to Teens
- Teaching Accountability for Cash and Credit
- Guiding Little Big Spenders
- Getting Your Child To and Through College
- Helping Your Child To Nab the Right First Job
- Answering Sensitive, Nosy, Touchy Questions

Read Pearl’s book to find a few good ideas, but DO NOT implement all these tips on your poor kis. I suspect Pearl has done exactly that, and I’m going to end with this:

You gotta’ let ‘em go, Pearl. Just let go…

Teen Guide to Personal Financial Managementby Bijlefeld and Zoumbaris is not by any means for teens. It starts with stories of suicide by kids who got themselves in over their financial head, ala Louis Gasnier’s scare movies of the 50’s and 60's, and then progresses to an academic text that truly might drive a kid to consider jumping off a cliff. It tries to sell itself as a text for teens, but this was obviously written for teachers who are going to then go and teach topics of teen financial literacy. Boring boring boring.

My personal favorite, and one which everyone near and far should avoid, was TeenVe$tor: The Practical Investment Guide for Teens and their Parentsby Walker and Modu. "TeenVe$tor" is, in case you wanted to steal it, a trademarked name.

This feels like a get-rich-quick guide for teens, purporting to teach them how to make money in the stock market. The first chapters seem to ignore general money management advice. Do Walker and Modu give any warnings to young investors or parents? Of course! They tell the story of 15-year-old Jonathan Lebed, who made $800,000 in a “pump-and-dump” scheme during the early 90’s.

“The case received considerable press and underscores the need for parents to supervise their TeenVe$tor’s investment activities.”

This is a mixed message at best. Skimming the rest made me feel that the info was for a much more advanced audience, and emphasized making big money. I didn't give it much time. Here’s what I speculate was the general outline of TeenVe$tor:

- Stealing Enough $ To Invest in the Market!!
- Making it Big in The Stock Market!!!
- Your First Three-Martini Homeroom!!!
- How to Hide Your Earnings From Dad and the IRS!
- When Is It Right To Start A Hundred-Dollar-A-Day Coke Habit?!!
- How To Con Your Cellmate To Get The Bottom Bunk!

I’m a little miffed that I struck out three times. I had no intentions of doing more research on this, but now I feel honor bound to get a decent book for kids. I’ll report back tomorrow.