Family Finance Lessons from the President
Most people will probably remember President Barack Obama's first 100 days for his efforts to solve a slew of problems, including the financial crisis and wars in Iraq and Afghanistan. But I think he, along with his wife Michelle Obama, should also get some credit for being great role models regarding family finances and values.
The President and First Lady have spoken openly to the public about their family life and I like what I see. What I find particularly interesting is the First Family's disclosures about their values regarding money. My takeaway is that they're refreshingly "old school" and don't believe in spoiling their daughters. According to People Magazine, they don't even give Malia and Sasha birthday presents since they receive so many from friends. They also make the girls do chores around the house. Perhaps now more parents will follow their lead and ask their children to make their beds and clear the dishes from the dinner table.
How else might the Obamas influence parents in America?
Making College Savings a Priority
I'm a big proponent of setting money aside for your kids' future education expenses. After all, no one knows what will happen to the private college loan industry. So I was happy to see earlier this month that the Obamas had heavily invested in their daughters' 529 college savings accounts. They took advantage of a law that allows parents to make five years of contributions at once without getting hit with the gift tax.
Most of us, of course, don't have that kind of cash to set aside for education at any one time. But even saving a little bit each month can add up and really help later on.
Setting an Allowance
I won't call it generous, but the Obamas do give their daughters a weekly allowance of $1 for doing chores around the house. I think having a little pocket money is good for kids and helps them appreciate the value of a dollar. It also provides parents an easy entry point for a conversation about the importance of saving.
My friend Birgit said news stories about Malia's and Sasha's allowances reminded her of money lessons her mother taught her. Her mom showed her how to budget and save by signing Birgit up for the "squirrel club" at their local savings bank. Now the Obamas have inspired her to start teaching her little three-year-old about saving too.
Asking Mom to Move In
When the Obamas moved to Washington, so did Michelle's mom, Marian Robinson. Not only does grandma living in the White House help the family save money on child care, but it also fosters a strong relationship between grandmother and grandchildren, something that's priceless.
My friend Nancy said watching the First Lady's mother move in and play such an active caregiver role resonated with her since her own grandmother lived with her while she was growing up. Now that Nancy has two kids of her own, her mom, who lives nearby, helps out with child care and cooking, and supplies plenty of useful advice and fun for the little ones. Hiring a caregiver to take her place would not only be a huge expense, but also a large emotional loss.
Have the Obamas inspired you to change your parenting style or the way you manage your family finances? I would love to hear your views.
Barack Obama image by AlexJohnson, CC 2.0