dave says2 300KENTUCKY (3/2/14) – This week Dave discusses check cashing for the unbanked and letting kids make money mistakes.

Dear Dave,

I know you hate payday loan companies. Do you feel the same way about check-cashing companies?

Brian

Dear Brian,

Check-cashing companies are not a good deal, but they’re nowhere near as bad as payday lenders. All check-cashing businesses do is charge a fee to cash a check.

Honestly, it’s kind of silly to me that places like this can make money when all you have to do is walk into a bank and open an account. But there’s a  percentage of our population that people in financial circles call “unbanked.” This means they avoid banks for whatever reason, but in the process they leave themselves susceptible to bad deals like this.

So I don’t feel the same way about check-cashing companies as I do about payday lenders. It’s still not a financially smart move to pay a storefront operation a fee just to cash a check, but these businesses aren’t nearly as abusive as payday lenders.

—Dave


Dear Dave,

My 6-year old son has saved up $400. He said he wants to buy a motorcycle with it someday, but he recently changed his mind and wants to buy a computer tablet. Is it okay for him to change his mind like this, and how should I handle things?

Christina

Dear Christina,

I’m not really concerned whether it’s a motorcycle or a tablet, especially if he’s saved his own money. I think the big thing we’re looking for in all this is a teachable moment.

Certainly regret is a concern, especially with a kid so young. But the reality is that neither the decision nor the possible regret afterward will ruin his life. If you talk to him and try to advise him beforehand, and he gets upset later because he feels like he made the wrong choice, it gives you the opportunity to step in and gently say, “I’m sorry you think you made a bad choice, but that’s why I wanted you to really think about it first. You had a chance to listen to mom’s wisdom and didn’t. I’m sorry you feel sad now, but I want you to remember it and learn something from this bad decision.” It’s a process of controlled pain and natural consequences.

One of my daughters did something similar years ago when we went to an amusement park. All the kids had a set amount of money for the day, and we warned them not to spend it too soon. She turned around and blew all her money on carnival games, then she spent the rest of the day whining while her brother and sister rode the rides and had lots of fun. We didn’t give her any more money, but a controlled amount of pain taught her some valuable lessons that day. She learned to listen to her mom and dad, she learned that carnival games are a rip-off, and she learned to control herself a little bit and think things through.

Allowing kids the emotional dignity of making some decisions for themselves is vitally important. You just have to make sure this liberty is supervised and comes with parental warnings and protections. Just because they saved the money doesn’t mean they can do whatever they want. It still has to be used in a way that you, as a parent, are comfortable with and deem appropriate.

There will be some natural tension in the process, but it’s a great way to teach kids about money, decision making, maturity and life choices!

—Dave

*Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: "Financial Peace", "More Than Enough", "The Total Money Makeover and EntreLeadership". His newest book, written with his daughter Rachel Cruze, is titled "Smart Money Smart Kids". It will be released April 22nd. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.

Disclaimer: The content supplied by columnists and letters to the Editor on this site does not in any way, shape or form, implied or otherwise, necessarily express or suggest endorsement or support of any of such content, statement, or opinions therein. SurfKY News does not necessarily adhere to or endorse content provided by outside non-staff sources.

e-max.it: your social media marketing partner

LIKE SurfKY on Facebook - Click here to LIKE us now.

© Copyright 2015 SurfKY News Group, Inc. All rights reserved. This material may not be published, broadcast, or rewritten without permission. SurfKY News encourages you to share this story on social media.

In Other News...

Entrances, Parking Restricted at HCHS through Summer Months

HENDERSON, Ky. (6/1/15) — Beginning June 5, 2015, all Zion Road entrances to Henderson County High School will be… Read More

Henderson County Traffic Advisory

HENDERSON, Ky. (6/1/15) — The Kentucky Transportation Cabinet plans to close a section of Kentucky 416 in Henderson… Read More
1 DOW 18,040.37
+29.69 (0.16%)    
2 S&P 2,111.73
+4.34 (0.21%)    
3 NASDAQ 5,082.93
+12.90 (0.25%)    

Most Read This Week

May 27, 2015 7348

VIDEO: Sparks Fly Over Hanson Rezoning Issue

by Tammy Holloway, SurfKY News
May 30, 2015 6667

Study of Virus Attack on Cancer Sees Success

by Julie Heflin
May 28, 2015 6450

Four Charged with Burglary for Entering Elderly…

by SurfKY News
May 27, 2015 4197

Midnight Ride on Rabbit Ridge Ends in Jail

by SurfKY News
May 26, 2015 4005

Mandarin House Gearing Up to Open Soon

by Gary Gates, SurfKY News

Most Read This Month

May 15, 2015 11265

New Madisonville Business In Full Operation Soon

by Tammy Holloway, SurfKY News
May 23, 2015 9049

Missing 5-Year-Old Boy Found

by Doreen Dennis, SurfKY News

Stories Trending Now

May 31, 2015 1324

Hot Button Item Draws Hanson Crowd to Zoning,…

by Tammy Holloway, SurfKY News
May 30, 2015 1234

Rods for Relay Raises Funds for ACS Relay for Life

by Tammy Holloway, SurfKY News
May 31, 2015 1188

YMCA Summer Food Service Program

by Kelly Forbes
May 31, 2015 1038

Hopkins District Court Fines Handed Down

by SurfKY News
May 31, 2015 975

Survivors, Caregivers, Supporters Gather for…

by Tammy Holloway, SurfKY News
June 01, 2015 943

Authorities Discover Meth Lab While Assisting…

by SurfKY News
June 01, 2015 774

Madisonville Police Arrest Reports Released -…

by SurfKY News
May 31, 2015 733

Hopkins County Traffic Advisory

by Keith Todd
May 30, 2015 713

Whitfield Announces Congressional Art Contest…

by Ed Whitfield
May 31, 2015 643

LG&E and KU Unveil New Outage Texting Option…

by LG&E and KU News