Episode description
We all want our kids to be smart about money decisions, right, but how do we do this? Making decisions around money is much more than learning how to spend, but how do we teach our children in ways that they will understand, before they make those disastrous money mistakes? It’s a a topic that many parents have questions about and today’s show is full of answers and smart money advice for parents.
John Lanza is Chief Mammal of The Money Mammals and the author of The Art of Allowance, three children’s picture books, and the creator of an award-winning DVD, The Money Mammals. He’s the father of two daughters and a youth financial literacy expert and he’s here to help us learn the basics of raising financially empowered kids.
What you’ll learn from the episode:
- How John was influenced by his wife to become a Money Mammal, because they wanted their kids to be money smart
- Applying the concept of “emergent financial literacy” to spending, sharing, and saving
- The basic allowance rule: $1 per week, per year of age (Kids must have money to practice with!)
- Finding the balance between advising kids on purchases and giving them autonomy
- The BIG question: Should allowance be tied to chores? (Find out why John says NO!)
- The key in teaching kids about money is what lesson you want to teach them
- The concept of “breakthrough allowance,” when your child is older and becomes responsible for certain financial expenses
- The goal for kids is money empowerment, where kids control their money and money doesn’t control them!
- How to know WHEN to teach WHAT in progression
- Saving goals should be specific, measurable, attainable, relevant, and time-based
- How to teach awareness of investing and saving for college
- How to make adjustments to NOT pass on our money ignorance and money difficulties to our kids
- How a family of significant means can guard against raising spoiled kids
- How to teach visualization for kids to reach their financial goals
- The key to it all: Have an open dialogue with kids about money
Resources:
www.theartofallowance.com--Find out how to win one of three signed copies of John’s book!
The Opposite of Spoiled by Ron Lieber
Hendershott Wealth Management, LLC and Love, your Money do not make specific investment recommendations on Love, your Money or in any public media. Any specific mentions of funds or investments are strictly for illustrative purposes only and should not be taken as investment advice or acted upon by individual investors. The opinions expressed in this episode are those of Hilary Hendershott, CFP®, MBA.