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The Bank of Mum and Dad
By Dayana Yochim
The Money Fool
September 22, 2004
America has exported a few key assets to the U.K., such as Elvis and
The Motley Fool. Unfortunately, our friends on the other side of the pond
have also taken to a few of our less-attractive cultural phenomena:
reality TV, for one.
This month the BBC will debut a series ripped from the pages of our own
TV Guide. It's got all the key elements: real-life family conflict,
lovers' quarrels, tight living quarters, and, of course, money. What makes
this show a distinctly British production are the accents (which help
class-up the whole concept) and the name: The Bank of Mum and Dad.
Imitation (or improvement, some might say) is the sincerest form of
flattery. (Which came first? The Ramones or the Sex Pistols?) The English
don't need The Donald or Mark Cuban to put their contestants through
the paces for easy cash. No, they've got a much more compelling setup:
Dawn and Richard.
These soon-to-be-wed "kidults" have a penchant for cars, clothes, and a
cigarette habit that eclipses their monthly grocery budget. (It seems
that credit card debt is another Americanism that has caught on
overseas.)
Drs. Laura and Phil can't hold a candle to the drill sergeants assigned
to whip the couple's finances into shape. That task falls on Jackie and
Steve (here comes the clincher)... Dawn's mum and dad. They cut up the
couple's credit cards and move into their flat for a week to give them
a stern talking-to about fiscal responsibility. The series will follow
an additional eight "twirtysomethings" and their parents on their
journey toward financial independence.
The show represents a worrisome trend gripping England. The average
Briton owes £1,140 ($2,044) to their credit card company, with one-third
of 16- to 24-year-olds packing plastic.
Amateurs. The average American household owes nearly $8,000 to credit
card lenders, according to Cardweb.com, and about 80% of teens in the
18-20 age range have credit cards.
There are a few things parents can do to put their kids on the straight
and narrow moneywise while they're still living under your roof:
Expose your little lovelies to the realities of family finances -- show
them what it costs to put a roof over their heads and junk food in
their packed lunches.
Regale your teen with stories about your biggest money blunders and how
you recovered -- or are still paying the price. I guarantee you'll get
your kid's attention.
Some parents have their kids sit with them when they pay bills. Others
have their child do the paperwork as one of their chores. How you dole
out the information depends on your comfort level and your kid's
maturity.
Take a cue from your 401(k), and offer to match (30 cents, 50 cents, a
dollar) every dollar your children save. Let them save for a short-term
treat, but offer to match even more money if they invest their money
for the long term. Heck, turn it into a competition between your kids.
They're always bickering anyway.
If your kid is, as the Brits say, a "kidult" still mooching off of Mum
and Dad, print out this letter and leave it on the fridge. Speak to
them in their language.
Who needs a camera crew and TV audience for uncomfortable
confrontations when you've got kids and parents and money lessons to be taught and
learned?
Second
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