Why I Don’t Teach My Kids Finance
How do we prepare our kids for wise wealth management in just the few hours between the time they come home from school and when they close their eyes at bedtime? According to my research (conducted at home), requiring their attention while pummeling them with information does not create a positive association with money management during the week or on weekends. Many finance concepts, while possible to be adapted to an elementary grade level, generally lack daily practical application resulting in reduced retention. What kids do need on a daily basis is to feel from us that they are great, that they are capable, not deficient, not simply in need of endless learning.
When it comes to money matters, I discovered that many of the principles are also present in other aspects of life. Relationships, food, energy, time, and money are all resources. How we manage our resources shapes who we are and what we accomplish. When it comes to budgeting, saving, earning, creating passive income, and charity, we can free ourselves from the pressure of becoming money experts and instead discover how to teach money concepts obliquely through everyday life skills training. Imagine kids receiving secret foundational money lessons while we verbally address nutrition, dreams, friends, and taking care of their belongings.
Look at time management lessons in action. Like every parent, I found myself repeating things like “where is your water jug?” or “did you brush your teeth?”, so I created a morning checklist for getting out the door on school mornings. I then implemented a bell system (alarms on my phone and a portable Bluetooth speaker) to help my young ones learn the feeling of passing time. The bells along the way each had a different tone, allowing them to gauge their pace. I remind them that we must run our day or our day will run us. They know how it feels to be pressured by the clock versus being in control of their time with room to spare for relaxing before school. The point I emphasize is “intentionality,” because if we can manage our time, we can manage our money. We can run our money, or our bills can run us.
Kids connect when you meet them in the world they live in. It was a bit inaccurate to say I don’t teach my kids finance, because, well…I do teach money skills…through nutrition, getting ready for school, a tidy room, sharing with others, nurturing friendships, helping around the house, and even getting the mail. Everyday moments. Those are the conversations that come naturally to us as busy parents and are timely and relevant for our vivaciously active kids. Yes, drop terminology here and there to expose them to words like “savings” and “investment,” but keep your eyes out for opportunities to teach the principles behind resource management. Next time your kid asks to buy something, instead of shutting them down with a “where’s your money” or the want-vs-need conversation, tell them to come back at ___ time, then take a moment to assess what conversation could be created. For everyone working to raise savvy kids, give yourself the grace to not be a finance guru. Yes, keep growing in your financial acumen, but you have so much already in your arsenal to guide your child in the principles behind money, so now flex it in everyday moments, remembering that it is not about the terminology (yet); it’s about instilling a mindset and making them aware of the tools available to them. Guide them in the principles of intentionally using resources, creating vision and goals, sticking to a plan, and knowing when to pivot from expectations. The real social injustice that exists is not the money itself, but the awareness of what can be done with it.
I’d love to hear about the opportunities you’ve used and how your child responded. Send me a DM or leave a comment on my social media so others can gain inspiration from you.
Check out the children's storybook where I share some insights into how our family practices life skills and lays a foundation for financial literacy: themonsterjob.com
The Monster Job by Faith Teope, Illustrated by Peili Huang
themonsterjob.com or faithteope.com/shop
For bulk orders please contact: Brown Books Publishing Group | 972.381.0009 thomas.reale@brownbooks.com
