August 2, 2004
Detroit Free Press

When teaching your child about money, start early.

Although 75 percent of teenagers think learning about money will help them succeed, they have significant gaps in their knowledge of money basics, reports Leflein Associates, a consumer research group. Of the 1,000 teenagers surveyed, 22 percent didn't know that a loan is paid back with interest. One in three thinks he or she can retire on only monthly payments from Social Security, and one in four believes financial aid will cover all their college expenses.

To teach a youngster, you need to know how he or she thinks about money, writes Adriane G. Berg in "The Totally Awesome Money Book for Kids" (Newmarket Press, $12.95). Berg's son and coauthor, Arthur Berg Bochner, started learning and writing about money when he was 11.

Berg recommends including your child in financial discussions, about your own family and money in general. Kids like money and can pick up most money concepts quickly. Kids have a different sense of time when it comes to money. They live in the present. So, instead of talking about long-term savings goals, start with short-term ones for the things they want.

Choose your terms carefully. Berg says kids think of wealth as coming from love, not net worth. They see "wealthy" people as those who are happy, with loving families, not necessarily mansions or fancy cars.

If you'd like professional help in teaching your child about money, look for local finance or business camps for kids. The Money Camp, at www.themoneycamp.com, offers programs for kids and for adults at several locations nationwide. For an Internet-based camp, visit www

.teachingkidsbusiness.com. Sessions are based on the book "Kids' Guide to Business" (TeachingKidsBusiness.com, $17.95).

IDENTITY THEFT

Block your credit report
Little by little, a weapon against identity theft is gaining currency. It's called the security freeze, and it lets individuals block access to their credit reports until they personally unlock the files by contacting the credit bureaus.

The process is a bit of a hassle, and the credit-reporting industry says it complicates things unnecessarily. But it appears to be one of the few ways to virtually guarantee that a fraudster cannot open an account in your name.

The freeze became an option in California and Texas last year, and Louisiana and Vermont will allow it beginning next July. The Texas and Vermont laws apply only to people who already have been victimized by identity theft.

Only 2,000 Californians and 150 Texans have taken advantage of the freeze, according to Experian Inc., one of the three major credit bureaus.

But identity theft watchdogs say usage is low simply because the credit bureaus don't publicize the option. Congress resisted calls for a freeze rule during debate over a major credit law last year.

"It's the best protection we have," said Linda Foley, executive director of the Identity Theft Resource Center in San Diego.

While the freeze might be an extreme step, its backers say it is necessary because the existing system is broken.

The Internet and consumer databases have made it easier than ever to find someone else's social security number and apply for accounts in that name. Meanwhile, obtaining credit is a breeze, as 0-percent financing offers crowd mailboxes and stores make no-money-down come-ons.

People who suspect trouble can place fraud alerts on their credit reports. But identity theft watchdogs say the alerts are often ignored by creditors who are willing, say, to gamble that the potential plasma television purchaser in front of them is legitimate, and write off any losses that might occur.

The time or money required to freeze and unfreeze credit reports might dissuade people from doing it unless they've been stung by ID theft.

Mortgage Rates News, Mortgage News, Financial News