How can we raise money smart kids?
John Lanza is on a mission to help families raise money-smart, money-empowered kids. He has written The Art Of Allowance to better help parents do that. John is also the creator and Chief Mammal of The Money Mammals, an award-winning DVD and youth savings account program.
John knew early on that he wanted his kids to be money smart. He noticed how both he and his wife viewed and used money in very different ways. They came from similar frugal backgrounds, yet one was a saver and one a spender. John wanted his kids to become empowered when it came to money. That’s why he developed these money smart tools. Yes, the same tools he uses within his own family.
What does it mean to be money smart?
Being money smart means that you are not just smart about spending. It is the idea that you are making money choices anytime you receive money.
It is understanding and using money as a tool.
John introduces key money concepts that we can use to help our kids:
1. Saving For Goals
Goals are powerful lessons for our child. Goals should be SMART: Specific, Measurable, Achievable, Relevant and Time-based. John talks about ways we can incentivize our kids to save.
2. Distinguishing between needs and wants
Satisfaction from something you buy can be fleeting. The sooner kids realize this, the better. We talked about why a waiting period before they buy can help this process.
3. Making Smart Money Choices
Being smart about your spending. This means think when you buy. Always pay yourself first. Save, Spend and share- charitable giving helps well-being. John also talks about the “why” behind using clear jars instead of the old “piggy bank”.
But what about the famous (or infamous) methods many still use today to teach about money?
Allowance vs Chores
John goes in to depth on the topic of allowance and chores. He is very clear in explaining why they should be separate. They teach very different lessons.
He then took the time to explain how we can create an effective allowance program with our kids.
I found so much value from this episode. I also found value from his book, The Art of Allowance~ A short, practical guide to raising money-smart, money-empowered kids. What I enjoyed about this episode is the open dialogue he creates around the topic of money. And I know that is one of his key messages. For parents to have open, empowering, positive conversations about money with their kids. I also like that he says it is not a one size fits all. For success, follow exactly what I say. No, he says that we must be mindful of the differences in our kids. There will be mistakes. But that is okay. What needs to always be there is communication. It’s a team game.
I’d love to hear your thoughts.
We will have an upcoming Q&A with John. What questions do you have for him? You can send them to me via email robyn@imhomeschooling.com or you can msg me via @honeyimhomeschoolingthekids
Resources mentioned in the podcast
The First National Bank of Dad
How to Turn $100 into $1,000,000: Earn! Save! Invest!
The Breakthrough Allowance Download
If you would like to listen to another dad that has created financial literacy with his own family check out my interview with Jim Sheils.
