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.

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...

Dawson Springs Mule, Draft Horse Days Come to a Wrap

DAWSON SPRINGS, Ky. (4/26/15) — The city of Dawson Springs hosted the annual Mule and Draft Horse Day Saturday, April… Read More

DCHS Student Council Hosts May Day 5K

DAVIESS COUNTY, Ky. (4/26/15) — The Daviess County High School Student Council is sponsoring its sixth annual May Day… Read More
1 DOW 18,080.14
0.00 (0.00%)    
2 S&P 2,117.69
0.00 (0.00%)    
3 NASDAQ 5,092.08
0.00 (0.00%)    

Most Read This Week

April 23, 2015 7696

Man Charged with Sodomy, Incest/Victim under 12

by SurfKY News
April 20, 2015 4973

Nortonville Woman Charged with Meth Possession at…

by Madisonville Police Department
April 24, 2015 4292

UPDATE: Police Can't Substantiate Injured Man…

by Doreen Dennis, SurfKY News
April 22, 2015 4034

Crime Stoppers Fugitive of the Week – April 22,…

by Hopkinsville – Christian County Crime Stoppers
April 22, 2015 3953

Madisonville Man Accused of Domestic Violence/Rape

by SurfKY News

Most Read This Month

April 17, 2015 12576

An Open Letter from an Addict

by Olivia Kirks
April 02, 2015 8871

UPDATE: Madisonville Man Injured in Head-on…

by Doreen Dennis, SurfKY News

Stories Trending Now

April 26, 2015 909

New Drug Helps Farmer with Parkinson's Return to…

by Laura Dawahare
April 26, 2015 521

White Plains Civil War Festival Provides Learning…

by Tammy Holloway, SurfKY News
April 26, 2015 485

College of Education Alum's Studies, Experience…

by Amanda Nelson
April 26, 2015 455

Legislator's Log - Week of April 26, 2015

by Brent Yonts
April 26, 2015 444

Dave Says - April 26, 2015

by Dave Ramsey
April 26, 2015 423

Mother's Day Buffet Planned at State Parks May 10

by Gil Lawson
April 26, 2015 416

Outdoor Truths - April 26, 2015

by Gary Miller
April 26, 2015 391

Spring Lawn, Garden Fair Participants Learn from…

by Tammy Holloway, SurfKY News
April 26, 2015 333

Mustangs lose to Ohio County via shutout

by Steve LeMaster
April 26, 2015 285

Dawson Springs Mule, Draft Horse Days Come to a…

by Amber Averitt, SurfKY News