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Youngsters Learn Financial Ropes By Taking A Club's Purse Strings

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The Tampa Tribune

Published: September 9, 2007

It's the money job. If you are thinking billionaire investors, bankers, hedge fund managers or oil barons, guess again.

Instead, picture the 15-year-old treasurer of the high school environmental club, the 13-year-old Girl Scout running the troop's camping fundraiser or the 19-year-old college sophomore overseeing his fraternity's $20,000 operating budget.

Young students learning the financial ropes at an early age - those are the types of money jobs I had in mind.

As millions of students of all ages return to classrooms, many will be joining school-related clubs, holding student council offices and vying for leadership positions.

This will come as no surprise, but my favorite position is the money manager's job, aka the treasurer. As a former youth club moneyman myself, I learned firsthand in high school how the job could be a terrific training ground for working with budgets, running fundraisers, setting prices, paying bills, developing communications skills and helping to run meetings.

While your son or daughter might steadfastly resist the urge to take on the money job, serving in that role can be good for just about anybody.

'I think the most important thing kids can learn at any age is responsibility, and learning fiscal responsibility is even better,' said Elisabeth Donati, the founder of the Money Camp, a youth program based in Santa Barbara, Calif.

If you have a budding student council treasurer, Scout troop fundraiser or sorority bookkeeper, here are some of the financial experiences that come with the job description.

Money in, money out. Job one: Pay attention to the numbers from the very beginning - from what is collected in dues, fundraising income and other money to what goes out to pay for parties, supplies and other items.

The goal is to make sure the club is making money or at least breaking even during your watch. The last thing you want is for the club to end up in a hole and wondering how it happened.

That means the financial ledger must be in shipshape condition every month until the books are handed over to someone else next year.

The art of the deal. Realize that being in charge of the finances means learning to evaluate alternatives, negotiating, striking compromises and making tough choices based on how much money the group has in the bank. Thick skin comes in handy.

Why? Because at some point, you may have to say 'no' to an idea because your club can't afford it, or because not enough people want it or are willing to support it.

Minding the store. Think of your club or organization as a small business with banking accounts, budgets and payment deadlines. It's all about the money. Whether you're working with a limited amount of money or tens of thousands of dollars, the treasurer will learn a thing or two about making bank deposits, paying bills, requiring receipts and collecting dues.

Fundraising. Here's the deal. Some clubs or extracurricular groups might operate on a very tight budget, and members may be required to raise money to cover 'extras,' such as trips or new uniforms.

The money manager, among other things, will need to lead in the group's decision-making about how to raise the money, what expenses will need to be covered and whether any special sales permits will be required.

Diplomacy. Finally, as the financial officer, there may be some touchy money moments. Among them may be dealing with students who are perpetually late in paying dues or being aware that some club members come from homes where money is tight.

Student leaders may realize the 'enormous variances in their peers' level of income,' said Maureen Dolan Rosen, a financial educator in Chapel Hill, N.C., and author of the Cash Management Connection. But those types of experiences can provide the most valuable training of all.

Columnist Steve Rosen can be reached at (816) 234-4879 or at The Kansas City Star, 1729 Grand Blvd., Kansas City MO 64108.

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