The rich are richer than us

Here are the first two steps:

-- Cash is the core. Let your children get used to cash before handing them plastic, Bodnar recommends. “Kids need to feel the pain and learn this discipline before they move on to more sophisticated payment systems,” she adds.

--Debit with a purpose. For older teens and college graduates, Bodnar suggests using a debt card to manage money. She says this step “adds more discipline.”

-- Mint Life (mint.com) is taking a look at a basic investing topic every week this month. This week, Mint.com contributor Cyrus Sanati explains equities – a simple, yet often misunderstood investing tool.

So, what does equity mean?

“The word equity basically denotes some sort of ownership in an asset. You have equity in your home, car, Beanie Baby collection, etc.,” Sanati writes. “Your equity is the difference between the market value of the item minus whatever debt you owe on it. It isn’t always a positive number. For example, a lot of Americans owe the bank more money for their home than what they could get if they sold it today. That means they have ‘negative equity’ in their homes.”

And so, what are equities?

Sanati writes: “When people talk about ‘equities’ they are usually referring to stocks issued by companies. So if you buy stock in Apple, you actually own a piece of the Silicon Valley dynamo.”

If you’re confused about these terms or have tried to explain them to others and weren’t sure you had it right, Sanati’s piece is a good basic explanation.

Spend Well, Live Rich

Many PBS-affiliated stations are still airing my pledge special, “Spend Well, Live Rich.” Here’s a link for a video preview.

Even if you missed the program, you should order it and support your local PBS station.

Upcoming Events

On Saturday, April 21, at 11 a.m., I’ll be speaking at Columbus Metropolitan Library in Columbus, Ohio. The library is sponsoring “Money Smarts for You: A Day of Free Financial Help.” The address is 96 S. Grant Ave., Columbus, Ohio 43215. There will be free parking and child care for children 3 to 9 years old. To learn more, call 614-645-2275, or click this link.

Tia Lewis contributed to this report.

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