European Stars and Stripes (Newspaper) - March 7, 1992, Darmstadt, Hesse                                Basic Motley management lessons for ads Rod Young a Dulaj j the Power of compounding there a nothing wrong with an allowance kids Benefit when shown How to manage their Money a a Small amounts May a of up Bank hut those faster when invested. If a child simply sets aside $10 per month  at age 6 and never invests the Money he or she wifi have saved $1,440 by age 18, at 6.5 percent interest a compounded monthly that same Chrid can accumulate $2,173 the interest would be equal to More than six years Worth of the regular monthly it investment. Here san example of How quickly that child s Small monthly investment can grow a by age 10 by age 14 of source la times Washington Post news service Sas Susan Harris by Michael Hernan the Allentown morning Call Marc Eisenson does t believe in hand outs for kids. Sure he gave his three children a weekly allowance but like Many parents he was never quite sure whether he was cultivating a Wall Street wizard or a free spending monster with a taste for pizza and movies. What Eisenson quickly Learned a and what Money management experts advocate a is that there is nothing wrong with allowances As Long As they re accompanied by a few financial lessons. Eisenson publisher of the banker s secret bulletin an Elizaville n, personal finance newsletter said the lessons can be difficult to imprint on a Young mind because Many children a even teen agers a have Little or no understanding of what Money is Worth. Quot children believe that any Money they get is destined to be spent As fast As humanly possible and they Don t have to look any farther than their parents to get that idea Quot Eisenson said. Eisenson suggests teaching children about the value of the Money by demonstrating what they can get for the Money they earn by making them Quot part of the family a financial  he gives this example pay your child for completing chores or tasks. Then occasionally let the child plan the family dinner with the Money earned. Quot your son or daughter might find out that a meal of big macs is going to Cost four Days of raking the leaves Quot Eisenson said. Quot they la have a very Good. Understanding of the value of Money in terms of the Effort expended to get  some experts say allowances should be Given in denominations that encourage savings. Instead of giving children a $5 Bill give them five $1 Bills so they can sock away a Buck or two and still have some Money to spend. The National credit Union youth program a Madison  educational organization sponsored by a National credit Union organization publishes a Booklet that includes a list of suggested guidelines for allowances. A give an allowance to children from elementary school through High school and encourage them to make decisions on How to spend Money. Children like to feel Independent about choosing How and when to use their own Money. A Don t tie allowances to behaviour. The Money should be an Opportunity to learn financial lessons not a method of rewarding or punishing. A set a specific Day to give the allowance and stick to it. Giving interest free advances does not encourage Good Money management skills. A discuss ground rules for How allowances can be spent. Decide whether to require that kids save a portion of their weekly take or whether they can spend the Money on such things As entertainment. One Way to help children develop Good Money management habits is to set up three Banks labelled Quot spend Quot Quot save a and Quot share Quot the Quot spend Quot Bank allows children to make their own spending decisions while Quot save Quot shows How quickly savings can build and grow the Quot share Quot portion is designed to encourage gift giving and or charitable donations some financial experts suggest that parents add some Quot interest Quot to any allowance Money the child sets aside for savings. Don t add to allowances if children overspend. Making them work with limited funds teaches them the value of Money and smart management. Adjust the allowance periodically but Only after discussing needs for increases with the  action line commissary explains conservation efforts it a 1 recently received a pamphlet from the . Military Community Augsburg Usma entitled recycling information. One of the issues it discusses is How to reduce the amount of trash by purchasing products with unnecessary wrappings. Why then does t the commissary sell milk in the gallon Container versus the gallon Cartons it carries now and soda in the two liter Container versus the 6-pack can configuration it Sells ? Scott m. Hathaway Augsburg Germany Charles a. Wlker director defence commissary Agency european Region replies your concern about recycling is one that is important to Many of our customers As Well As our employees. Over the years customers have requested that we sell milk in gallon containers mostly for reasons of a convenience. Unfortunately european milk suppliers equipment is not set up to package milk in gallon containers and to have them do so would entail a Large expenditure on the part of the . Government. In today s economic climate it does t seem to be a prudent step. The commissary procures All its sodas through cafes under an agreement that permits commissaries to sell them. We understand that it is difficult to transport the 2-liter Container since the plastic bottles Are prone to breakage in shipment. There is a question whether Selling milk and sodas in plastic containers would really contribute to recycling. Plastic is not easily recycled while Alumina ii recycling is common. Many military communities in Europe provide containers for recycling of aluminium cans As do most cities and towns in Germany. The commissary Agency actively contributes to conservation efforts by recycling cardboard pallets and fat and Bones. We also encourage customers to bring their own containers for bagging of groceries and wherever possible we install and upgrade refrigeration equipment and electrical systems with ones that reduce Energy consumption and Are less harmful to the environment. We also Stock paper products made from recycled paper and several phosphate free laundry soaps. We Hope that this information has clarified this Issue for you. Rest assured that we Wilt continue to seek out ways of preserving our  write us readers action line is the readers Quot court of last resort striving to answer some of the questions about life overseas in a military environment or questions about policies and guidelines when other avenues for answers Are not readily available. If you have a question and Don t know where to turn for the answer write to readers action line co the stars and stripes unit 29480, apr a 09211. All letters must be signed and preference will be Given to those seeking information of general interest to our Page 16 a the stars and stripes saturday March 7, 1992