Subscribe
Share
Share
Embed
Bradford Financial Center, a national wealth management company, delivers a financial advisor's simple approach to making small changes that can result in big results for your financial future. From budgeting, tax planning, and saving for retirement to college planning, smarter insurance solutions, and building wealth, the practical advice is easy to apply for investors at any level.
All episodes include a "Five in Five" segment where we break down quick-hit financial trends for their listeners.
0:00:02.2 Automated Voice: Welcome to Your Wealth Journey podcast powered by Bradford Financial Center, where we'll always share how small changes equal big results because your wealth journey is our focus.
0:00:12.6 Shallon Weis: Welcome back to Your Wealth Journey Podcast produced by Bradford Financial Center. I'm Shallon Weiss, a financial advisor for Bradford with offices in Clarion and Garner, Iowa. And we're proud to serve the heart of America and share insights that help you chart your own wealth journey.
0:00:27.8 Jim Tausz: And I'm Jim Tausz, President of the Bradford with over 50 years of financial planning experience. So, glad that you're with us today because we know you could have been somewhere else.
0:00:38.9 Shallon Weis: Today we're diving into a topic that's close to a lot of parents hearts: How to Talk to Your Kids About Money. It can feel intimidating at first, but teaching kids financial skills early sets them up for success later in life.
0:00:51.7 Jim Tausz: Absolutely, Shallon. It's never too early to start through the approach that does and should change as kids grow. We'll talk about the strategies for the different age groups, ways to make money lessons practical and very engaging, and as always, stay tuned till the end where we'll wrap up with our five on five segment again, where we spotlight the top five resources to help educate kids on money.
0:01:22.8 Shallon Weis: Jim, why do you think talking about money is such an important conversation for families?
0:01:27.7 Jim Tausz: Well, Shallon, I always say that kids learn more from what they see and experience than what they were told by far. If we shield them from money conversations, they may develop habits based on guesswork or actually peer influence. Teaching kids financial responsibility, even in the small ways, helps them understand the value of earning, saving, and making good choices.
0:01:53.6 Shallon Weis: Right. And the earlier we start, the more naturally these lessons become part of their routine. Even young children can grasp basic concepts like saving for something they want, sharing or making choices between wants and needs. Now think about it. When a 5-year-old gets a birthday card with a few dollars tucked inside, that's an opportunity. Do they spend it all on candy right away or do they set some aside for the toy that they've been eyeing? That simple choice is their first budgeting exercise. And I agree, Jim, that kids also learn a lot by watching. If you model saving a little each time you get paid or talk out loud about how comparing prices at the grocery store, you're showing them how money decisions happen in everyday life. And when you frame it as a part of normal family conversation, not a lecture, kids start to see money less as a mystery and more as a tool that they can learn to manage.
0:02:43.5 Jim Tausz: Well, it might be very helpful to our listeners out there, Shallon if we break down the tools and the strategy by age. For the youngest kids, think preschool to early elementary, you want to focus on the tangible lessons that are out there. Let me give you an example. A lot of parents love the three jar system: One for spending, one for saving, and one for giving. By the way, I'm always available for a gift. If you can even get kids involved in decorating mason jars with stickers or maybe perhaps paint so that they feel the ownership on those jars. Another fun one is actually setting up a pretend store at home with play money and price tags. Kids shop for toys and snacks and it starts to click that money is exchanged for the goods that they're looking at. Money feels like playtime to them. That's the kind of spirit you want to have. And then there are those everyday lessons out there. Giving your child a couple of dollars at the grocery store and letting them pick out their own fruit or their own snack teaches decision making and budgeting in real life. The goal is that the early elementary stage is about experiences. If you want to plant those first seeds of saving, spending, and giving in ways that feel exciting and hands on, this is the that you get started so you can go through that process.
0:04:15.7 Shallon Weis: Exactly. And I kind of wish I had made the same time for these creative ideas when I was raising our sons. I think at that age, it's about making money feel concrete. Kids can see it, touch it, and relate it to something that they want. And when you combine it with games or chores that equal small pay for young children, it starts to make learning fun without being too overwhelming.
0:04:37.3 Jim Tausz: Yes. And it's the next age level that really gets a little bit tricky out there, especially in the day and age where we have the instant gratification situation going on day and night. The available thanks to technology. You have to have someone besides the parents to blame, and technology is definitely a big one. So, as we move into our upper elementary and middle school age with our own kids and grandkids, we realize that they can handle more abstract concepts because they're a little bit older. They can understand many more things than they used to be able to. This is where you want to start to talk to them about budgeting out there for vacation money or bigger purchases that are made for our family. It was actually instilling the idea that money isn't unlimited. Give them the opportunities to make small decisions and see the consequences of those small decisions, and eventually those decisions will grow over time.
0:05:38.7 Shallon Weis: As our sons were moving into their teen years, my husband and I felt like it was time for them to step it up. At this point, our boys were earning their own money through part time jobs and that opened the door to bigger lessons. This is the age to set up a real checking or savings account so they can see deposits and withdrawals in action. You can also start showing them how to budget for gas, outings with friends, or saving toward bigger goals like college, maybe their first car or earbuds. Honestly, adulting is just around the corner for them. So, it's also the perfect time to introduce those building blocks of adulthood. And this is where even the parents have to up their game and have conversations about things like compound interest, and how money can grow over time or the smart responsible use of credit cards. Even if they're not ready for one yet, walking them through how credit works and how it can either help or hurt them, it sets them up for success.
0:06:32.0 Jim Tausz: Well, some parents out there even introduce investing at this point, but in reality and actually simple ways instead of complicated ones. Because you got to remember how old this child is that we're talking about. That could be shown them how the small investment in a mutual fund or even perhaps a stock in a company that they recognize like, Walt Disney or Nike can grow over the years. I believe teens are capable of actually grasping these concepts sooner than a lot of people think. And earlier that they do understand them, the more natural long term savings and financial responsibility will feel. Speaking of parents, by the way, Shallon, we don't forget about modeling behavior either. At this age, parents should allow their kids to see how they budget, save, and make financial decisions in the family. Conversations like this are important, but the example that you set is even more powerful.
0:07:35.9 Shallon Weis: It can also help to tie lessons to real life goals. I've had friends who let the kids at all ages, have a hand in planning the family summer vacation. Have them use technology to check prices of admission to events that you plan to attend, rental cars, hotel stays. And the better they understand the cost of these things, the more they might even appreciate the investment that families make to have the special time together. And they can even save up for a special part of the vacation. I think when you show kids how you budget and save to reach goals, the lesson is invaluable for them. I especially love that if allowance is something families do, that they teach their kids to split it between spending, saving, and giving.
0:08:25.6 Jim Tausz: Definitely, Shallon. I'm a big fan, actually, of when the chores can be turned into actual learning experience. If a child earns money for mowing the lawn, or perhaps babysitting a younger sibling, you can guide them in deciding how much to save versus how much to spend. It teaches both responsibility, decision making, and all the ramifications of getting some financial planning figures together for your situation specifically.
0:08:57.5 Shallon Weis: Bottom line, don't underestimate conversation. Simple questions like if you had $10, how would you spend it? It can spark critical thinking and dialogue about values and priorities.
0:09:12.3 Automated Voice: In our last five minutes, we'll bring listeners a roundup of five smart ideas they can apply to their own wealth journeys. So, let's get started with this episode's five and five.
0:09:24.4 Shallon Weis: All right. It's time for our five and five where we highlight five quick, actionable tools or resources to help parents educate kids about money.
0:09:33.0 Jim Tausz: And of course I get number one because that's about all I'm good enough for. Probably you get the other four. Huh, Shallon?
0:09:40.9 Shallon Weis: Probably.
0:09:41.4 Jim Tausz: Probably. I knew you were going to say that. Anyway, for younger learners, I really like the idea of setting up a little store at home, for example. And the little kids can set up a basket or a shelf with small items on it, maybe stickers, snacks and little toys with price tags on them, perhaps. Even they learn that coins or small amounts of money doing little tasks, kids start to understand the trade offs of what's going on. If they spend all their coins in one treat today, they're not going to have enough for a bigger item tomorrow. And if you're trying to teach them coin recognition, there are lots of great games out there. For example, Money Bingo combines the coin recognition with the fun game rather than using just game prices and pieces. Excuse me. And maybe the person who gets bingo at the end gets to keep their coins and that makes it very rewarding as they can count their winnings in the process. Not that we want to encourage gambling here, but you're a parent and we leave it to you to decide.
0:10:52.1 Shallon Weis: Yeah. That's funny. I'd say number two is looking into allowance apps or kid-friendly banking accounts. By the time they're in upper elementary or middle school, kids are ready for something a little more advanced. We found there are apps like Greenlight, GoHenry, and BusyKid that let kids track their money, digitally, set savings goals, and even get a prepaid debit card with parental oversight. So, many local banks and credit unions also offer youth checking or savings accounts. And what's great about these tools is they mirror what adults do, but in a safe, guided way. They also introduce kids to digital money management, which is how they'll likely interact with money as adults.
0:11:31.4 Jim Tausz: Well, we're definitely going to be doing everything digital out there for sure. There's no doubt about that. But number three, let's not leave out the educational games either. We all know that the classics like Monopoly, the Game of Life, they teach strategy, decision making and consequences of financial choices. And that right there is a wonderful way to learn. But there are also modern twists to it. Online games like Financial Football from Visa or perhaps the app that stimulates the running of a Lemonade stand or a business, are designed to teach kids about risk, reward, in reality, engaging in a very good way, ways that they can understand. Even the simple games like having kids plan or pretend to shop and to take a trip shopping is going to set budgets and they're going to teach many, many lessons from that budget about buying.
0:12:31.7 Shallon Weis: Great ideas, Jim. So, number four, books about money. For little ones, there are picture books like Bunny Money by Mary Wells or A Chair for My Mother by Vera Williams, that gently introduce saving and goals. For older kids and teens, there are great reads like, How to Turn $100 into $1 Million or The Teen Investor, even graphic novels like InvestiGators: Off the Hook, it can weave in themes of problem solving with money. So, the beauty of books is they start conversations. You should read them together and then ask what would you have done? Or why did you think that character made that choice? It turns story time into a teachable moment.
0:13:09.3 Jim Tausz: Plus you incorporated reading, which is exciting. Number five, our final idea, family planning sessions. For teens especially, this is where the rubber meets the road. Let them plan, for example, the grocery budget for a week or perhaps compare the cost of the different vacation options that you have out there to go visit there, here and everywhere for certain amounts of time. Even small decisions like deciding whether to eat out or to cook at home can be part of that particular conversation. Schwab Moneywise, teen workshops are actually great for teens that are from ages 13 to 18 and cover budgeting and money management in a session-based format. Or perhaps mymoney.gov has smart youth resources in it. Even the FDIC has, believe it or not, a free curriculum with real life experiences for preschool through 12th grade. We know that teens out there love being trusted with responsibility, and when you bring them into the real family finances, remember what I'm saying, the real family finances. You're not only teaching money skills, you're building that confidence that goes with it. They start to see that money isn't just numbers on a page, it's actually decisions that are behind life and the life that you're going to be living.
0:14:42.0 Shallon Weis: And that's the power of these five resources, right, Jim? They're not lectures, they're experiences. From jars and apps to games, books, and family budgeting, you're meeting kids where they are at developmentally and making money lessons a natural part of daily life.
0:14:56.6 Jim Tausz: Talking about money with your kids don't really have to be complicated or even stressful like many people think. You start small, you're consistent. Use the tools that you have to use that helps teach and then match their age and understanding and bring them together, and you are going to hit a basis loader home run when it comes to financial planning.
0:15:21.9 Shallon Weis: The goal is to raise kids who are confident and capable in handling money and who understand the value of saving, giving, and making thoughtful choices. So, if you're looking for the links to any of the resources that we've talked about today, please view this episode's description where we'll have them listed. And share this podcast with anyone who's at any stage of parenting. It takes a village to raise smart money-wise kids.
0:15:44.5 Jim Tausz: If you want to learn more or perhaps need figuring out strategies for your family and you need a little help, reach out to us at the Bradford Financial Center. We're here to help and we're here to help you win.
0:15:57.7 Shallon Weis: Thanks for joining us on Your Wealth Journey podcast. Keep the conversation going at home and we'll see you next time.
0:16:05.1 Jim Tausz: Until then, take care and enjoy your journey.
0:16:11.2 Automated Voice: Thank you for tuning in to Your Wealth Journey podcast, powered by Bradford Financial Center. Be sure to tune in to our next episode where we'll continue to explore the smart financial strategies you need to know. Securities are offered through United Planners Financial Services, member FINRA, member SIPC. Advisory services are offered through Bradford Financial Center, a registered investment advisor. Insurance services are offered through Bradford Insurance. Tax and accounting services are offered through Bradford Tax and Accounting Network. Bradford Financial Center, Bradford Insurance, and Bradford Tax and Accounting Network are not affiliated with United Planners. Neither Bradford Financial Center nor United Planners provide tax or legal advice. This podcast is for general information and educational purposes only, and is not intended to be specific advice for any individual. Consult your financial professional regarding your personal situation. All investing involves risk and there's no guarantee that any strategy will be successful.