San Diego, CA.  “Mom, dad, can I have ten dollars for a movie Friday night?, asks a son or daughter. “What happened to your allowance?” The parents reply, adding, “We just gave it to you on Monday!”

“ If this sounds all too familiar in your family, a new software called “Family Bank” will help both parents and youngsters learn how to keep track of all those allowance dollars by establishing a virtual bank on your home computer,” said Paul Richard, a registered financial consultant (RFC) and executive director of the nonprofit Institute of Consumer Financial Education (ICFE), a San Diego based nonprofit group helping people improve their spending habits, increase their savings and use credit more wisely.

Family Bank, a software developed by Atlanta based ParentWare, was specifically designed for children to learn how to keep track of their allowances, spending and savings with the click of a mouse. Its features help young people develop good spending skills while they're still at home. It can also help make savings habitual, and teach children to avoid debt. Family Bank software is an easy-to use tool to help parents better prepare their children to responsibly deal with their allowances and other earned income.

The program establishes a ‘virtual bank’ on the family's home computer. Family Bank is designed to be used by children ages 6 through 16 and is considered very user friendly. Parents can establish an allowance account for each child. The account specifies the weekly allowance amount that includes a chart of expense and income categories, the percentage of the allowance (deposits) to place in savings, and interest rates for savings. Allowance deposits are made to a child's account automatically each week.

Children use their account to write checks to their parents. Every deposit or withdrawal is recorded in a register, and pie charts are created to graphically show each child's spending patterns. Older children may write just one check a week, for *Cash*, but the program will not deposit any additional funds into the account until the child enters the details of how the cash was actually spent.

The interactive software features financial literacy activities that show young users how to write a check, make a deposit, and balance a checkbook. A chore list is also included to link the idea of money to work. Parents kick start the program by depositing their child's weekly allowance into a new account. Parents may also set up non-interest earning reserve accounts so the youngsters may save money for charitable donations, holiday gift purchases or others special purposes.

Family Bank includes a set of rules that, when agreed to by parent and child, and just as importantly, adhered to by the parent . . . will help children develop the habit of sound financial management. Family Bank is a system that, once in place, stays in place. It guides parents and children and when it's time for a change . . . it prompts the users.. Family Bank is unique for many reasons:

1. Family Bank is simple to use (a bright six year old can use it).

2. It's never too late to start (16 year olds don't find it 'juvenile' because there are no dancing bears, it's a real application program)

3. Family Bank's objectives are important, and if the rules are followed, will be achieved.

4. Family Bank encourages positive parent/child interaction about money. Instead of the computer in it's typical role of isolator, it actually requires that the parent and child sit in front of the machine at the same time and talk with one another.

5. Family Bank combines cognitive ("this loan will cost you 12%") and experiential ("gee, if I wasn't paying 2.50 a week for that loan, I'd have enough money to . . .") learning.

6. Family Bank requires almost no time actually at the computer in order to achieve objectives.

7. It sets in place a process that could (should) last throughout the child's adolescence

8. It alleviates family stress by removing points of conflict and encouraging positive communication.

“Family Bank” runs on any Windows platform, the cost is $34.95 and is available through the ICFE’s Web site at www.icfe.info. Click on the Family Bank icon.

Family Bank software specifications and features:

Platform: Windows 95, 98,2000, ME, XP, and NT compatible
Creates as many accounts as users need or desire.
Each account uses a personalized chart of accounts, color scheme, and assigned Wisdom Files (thought for the day) Creates custom Wisdom Files using favorite quotes and digital pictures Children can create Wisdom Files without risk of damaging or deleting existing Wisdom files or photos Access to web based financial learning from within the application. Web access for children is 'link-safe' Each Family Bank account includes:

1. checking

2. savings

3. reserves

4. loan application and repayment.

Each account records transactions into it's own register and displays it's own charts.

For more information on children and money, Family Bank, plus some fun financial education books and videos, please send $1 and a self-addressed, double stamped envelope to:
ICFE Resource Center
PO Box 34070
San Diego, CA 92163