15 - Guest Expert: J.J. Wenrich, Teaching Your Kids About Financial Literacy

Cast:
Dr. Tara Egan, host and child & adolescent therapist
Anna, teen cohost
J.J. Wenrich, guest speaker, wealth manager & author of "Teaching Kids to Buy Stocks"

Today's episode strives to support parents as they guide their kids toward making responsible financial decisions. According to J.J. Wenrich, father of three and wealth manager, parents should start educating their kids "as soon as they're old enough to stop putting coins in their mouths."

"this is what money is"
"this is how you control your own behavior so you're not always out of money"
"personal finance and understanding household spending habits"
"we use money to trade for things we want, like Legos or groceries"

Parents can start by making their kids more aware of how much things cost, such as when they go to the store and look at coveted items. And as kids are visiting stores and various businesses, parents can be talking about basic principles of supply and demand, markups, sourcing items, etc. Kids who have been raised in home where parents own their own business sometimes have a different perspective, given what they've been exposed to.

J.J. Wenrich discusses allowance that's distributed only after it's earned, being permitted to make decisions with their money (even if it results in them making mistakes). He shares a "challenge" that he once gave his children---if they could save $500, he would match it, allowing them to invest that extra money in stocks.

He encourages parents to get their child a debit card at an early age, so they can experience that feeling of running out of money. This is a precursor for later credit card use. Many kids can't handle the lure of easy credit, and can really dig themselves into a financial hole. It's important to know your kids--their ability to delay gratification, peer influence, etc.

Topics to introduce to your kids: compound interest, debt, competitive pricing, being a mindful consumer, spending vs saving, making decisions about investment ideas, etc.

We spoke briefly about the need for women to value themselves and demand pay that reflects their skill and training, which is traditionally difficult for women to do (Anna negotiated higher pay after being asked to work on the podcast on a Sunday night). J.J. encourages parents to connect with a financial advisor if they're not sure how to teach their kids about investing.

Lastly, both J.J. and Tara urge parents to be mindful about how they communicate about finances as it can cause considerable stress in kids.

Buy J.J. Wenrich's book from Amazon RIGHT HERE.
Visit J.J. Wenrich's website RIGHT HERE.
To learn more about Dr. Tara Egan and her services, please visit www.drtaraegan.com
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This podcast episode was edited by Laura Bauder, from PodcastHERs.