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Ask Neale!

As a subscriber, you have the opportunity to have your questions answered by Neale Godfrey, financial expert for over 30 years and New York Times #1 Best-Selling Author of 26 books and curricula.

Questions and excerpts of answers will be made publicly available, but if you desire point-by-point instructions on how to raise financially responsible children, please go to our Subscribe page.

Stock-Trading Teen

Question: My teen got some shares of stock for his Bar Mitzvah and now he has become interested in buying additional stocks for himself with his savings. Should I let him?

Answer: Good for him. Yes, with your help. Let him do the research on companies that he is familiar with…

New Bike

Question: My daughter is saving for a new bike. It costs $250 and she has been great at saving, but it’s going to take her a long time to save for this. What should I do?

Answer: You can match dollar for dollar with your child. I call this the 401(K) matching plan…

Service Contracts: Deal or Steal?

Question: My son saved his money to buy an iPod. When it came time to pay, the salesperson strongly suggested a service contract. My son didn’t have enough money saved to buy the contract so I did. Are service contracts a good deal? Did I do the right thing?

Answer: Most consumer columnists feel service contracts are a waste of money unless you plan to use a product heavily. It’s often said that service contracts cost over the life span of the item are four to seven times as high as repair costs predicted by industry-wide standards…

My House, My Rules

Question: I give my daughter an allowance of $12 a week, but she has to complete her list of assigned chores before she gets it. Lately she has been complaining that her friend doesn’t have to do chores, her mom just gives her money when she asks for it. What should I say to her?

Answer: Say, “My house and my rules.” It sounds harsh, but it isn’t, it’s real life. You set the rules for your home.

Too Much Charity?

Question: My youngest kid is very sensitive. He gets very effected when he hears news of hurricane damage or a local tragedy, and wants to give all of the money he earns to charity. I love that he feels that way, but should I let him.

Answer: It sounds like you have a very special child. I think it’s wonderful that he want to help others. Actually the best thing is to encourage him to give 10% to charity…