Teaching money lessons from an early age
July 25, 2013 (WPVI) -- We're seeing a growing role reversal these days. Instead of adult children taking care of their parents, in more and more cases, it's the other way around.
But one local family that says that trend is simply not an option.
You may know Wynnewood native Aaron Krause as the maker of the Scrub Daddy. He credits the way his parents raised him for his entrepreneurial spirit and success.
"I thought that it was much more important to give my kids the opportunity to earn what they wanted," said Aaron's father, Bob Krause.
The younger Krause had to earn money to pay for things starting when he was 10!
"You know, washing a car could get you $10, $15. Making your bed is only worth a dollar," said Aaron.
After college, he wanted to run a car washing business.
"And my dad was like, 'You're not running it here for free, you know. There are expenses.' I had to pay rent to rent my parents' garage to run a car washing business," he said.
When Krause needed cash, his parents had their son sign promissory notes and charged interest!
"That's actually how I got on my feet," said Krause. "I started a car washing business and from there all of my businesses have grown."
Financial advisor Stan Molotsky says these money lessons are proving to be very important.
"It's the sign of the times. Things are so different," he said.
The latest study shows half of Americans 55 and older expect to help family members financially. 70 percent think they'll need to help their adult children.
26 percent of working parents providing financial support to adult children have, in some cases, not only delayed retirement but taken out debt to do so!
"You have to have boundaries," said Molotsky. "You have to have rules and certain commitments to do certain things."
Molotsky advises you set firm deadlines. And no verbal promises.
"In writing is a great idea," he said, "and that's probably an absolute necessity."
And as the Krause story proves, how you raise your kids really counts.
Molotsky says children who worked when they were young are less likely to lean on their parents for support as adults.
Meantime, Krause says his parents also set good examples by working hard themselves.
"Throughout all my years of business, I continually call my parents not just for advice but to thank them for giving me this foundation and work ethic," he said.
Krause is raising his 7-year-old twins the same way his parents raised him.
And I wonder what your experience has been. I hope you'll share it on my Facebook page.
lifestyle, consumer news, nydia han
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