Passing the piggy-bank stage

Money camp teaches youngsters

It's never too early to learn about finances, says Katherine C. Harris, owner of Turning Point Financial Services in Raleigh.

For the past two years, Harris has run several one-week money camps for youngsters 10 and older. The program uses group activities, role playing and games to make campers more financially savvy. Kids are taught how to calculate interest, invest assets, manage risks and spend less than they make.

"I learned about credit cards and that if you don't have the right amount of money in the bank for a check, it will bounce," said Kennia Brumby, 12, of Durham, who attended the money camp last month. She also learned that "If you save, you will have money to use if something goes wrong, like a hurricane."

Harris takes the campers on field trips to places such as Costco and the Coastal Federal Credit Union. Harris said she chose Coastal because it offers children a competitive certificate of deposit and savings program.

"Most kids complain that when they put money in the bank, they lose it because the bank charges monthly fees," Harris said. She encourages parents to check with local financial institutions to find programs that offer children free savings accounts with low minimum deposits.

Harris said the program also explains to campers that the cost to raise a child to age 17 is now about $249,000. That includes clothes, day care, transportation and school activity supplies. She suggests parents make sure their children know how much things costs.

Here are her other tips for parents:

* Create a way for children to earn an allowance. Even if they don't make great decisions with their money at first, it's a learning opportunity.

* Share your financial situation with them.

* Share your financial mistakes. Make them aware of what could happen if they don't budget and manage money well.

* Read and learn about how to invest and manage finances and teach your children to do the same.