The Personal Finance Podcast - How to Teach Your Kids About Money (By Age!)

Episode Date: October 23, 2023

In this episode of the Personal Finance Podcast, we are going to talk about how to teach your kids about money by age. How Andrew Can Help You:  Join The Master Money Newsletter where you will become smarter with your money in 5 minutes or less per week Here! Learn to invest by joining  Index Fund Pro! This is Andrew’s course teaching you how to invest!  Watch The Master Money Youtube Channel!  Ask Andrew a question on Instagram or TikTok.  Learn how to get out of Debt by joining our Free Course  Leave Feedback or Episode Requests here.  Thanks to Our Amazing Sponsors for supporting The Personal Finance Podcast. Shopify: Shopify makes it so easy to sell. Sign up for a one-dollar-per-month trial period at  shopify.com/pfp Chime: Start your credit journey with Chime. Sign-up takes only two minutes and doesn’t affect your credit score. Get started at chime.com/ Listen to Planet Money wherever you get your podcasts. Policygenius: This is where I got my term life insurance. Policygenius is made so easy. To get your term policy go to policygenius.com and make sure your loved ones are safe.  Links Mentioned in This Episode:  Which is Better a 529 or Roth IRA for Your Kids? Money Q&A Connect With Andrew on Social Media:  Instagram  TikTok Twitter  Master Money Website  Master Money Youtube Channel   Free Guides:   The Stairway to Wealth: The Order of Operations for your Money  How to Negotiate Your Salary  The 75 Day Money Challenge  Get out Of Debt Fast  Take the Money Personality Quiz Learn more about your ad choices. Visit megaphone.fm/adchoices

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Find your advisor at IG Private Wealth.com. On this episode of the personal finance podcast, how to teach your kids about money by age. What's up, everybody, and welcome to the personal finance podcast. I'm your host, Andrew founder of MasterMoney.com. And today on the Personal Finance Podcast, we are going to be talking about how to teach your kids about money by age. If you guys have any questions, make sure you hit us up on Instagram, TikTok, Twitter, at MasterMoney Co.

and follow us on Spotify, Apple Podcasts, or whatever your favorite podcast player is. And if you want to help out the show, consider leaving us a five-star rating and review on Apple Podcasts, Spotify, or your favorite podcast player. Now, today, we are going to be diving into how to teach your kids about money by age. And so what we did is we set this up with various age ranges that we think are going to help you think through this process. So the first age range that we're going to be talking through is kids that are five and under. And this is where I personally have the most experience because I have two kids right now. One is age five and one is at age two. And this is where I'm going to show you how I'm teaching them about money very early on in their life.

And this is going to be very, very important for their financial upbringing is starting early. That may sound too early to some of you. And some people kind of push back with me on that. And I'm showing major progress with my kids alone on just teaching them small things about money. We'll talk about that. The second age range we're going to go through is age six through 11. And age six through 11, this is a very, very important time frame for you to teach your kids about money because they can understand a ton of different concepts.

So we're going to go through age six through 11. And then kids age 12 through 18, where we're going to be going through some more advanced stuff with kids age 12 and 18 and getting them ready to become financially responsible adults through that timeline. So really, really excited for this episode. and we are going to be diving into all of these topics. Now, you may be asking yourself, hey, why the heck would I even want to do this?

What is the case for teaching my kids about money? And number one is if you've never heard our series where we're talking about generational wealth, it is a two-part series. It is the longest solo episode I've ever done between the two parts. I think it's two hours long. And when we talk about that generational wealth series,

we are talking about handing down information to your children. This is the most powerful thing that you can do for your kids. some people don't even want to give their kids money. If that is you, the most powerful thing that you can do for your kids is hand them down knowledge. What is the saying? If you teach a man to fish, he will never go hungry. Well, the same thing is for your children. If you teach them how to manage their money, they will have such an advantage over everyone else,

especially when it comes to their financial skills. Just understanding the basics of personal finance is going to be a tremendous moneymaker for them. They will save hundreds of thousands, if not millions of money. dollars just by understanding these simple concepts. There are people who are in their 50s that still have no idea how some of these concepts work. So giving them that baseline is going to be really, really important. Now, studies have shown that kids actually have a ton of different financial mental models ingrained in their brain by age seven. So if we can get a head start on this and start teaching them some of this stuff and making sure we are molding them to become

financially responsible adults, they could be incredibly wealthy going forward. In addition, if you are going to hand them down money, this is going to make sure that that generational wealth is passed on from generation to generation. We'll talk about some families that have done this where they have preserved this wealth over time, but making sure that you teach them this means they're going to preserve your wealth that you built up, that you want to be handed down for generations. So this is another factor. They're not going to go through and blow all that money.

You see really wealthy kids who are never taught about money. They go through that money by the third generation. Usually by the third generation, that money is squandered and is close to 90% gone. So if you look at studies, it shows when you hand money down, a large percentage is gone by the second generation and almost all of it is always gone by the third generation. Financial education changes all of that. So that is what this is going to help do. So it's going to give you that responsibility.

It's going to help develop personal responsibility. It's going to also help them understand values and gratitude. So you're going to go through and understand financial concepts. We're going to talk about gratitude. We're even going to talk about giving in this episode. episode. It's going to help them reduce their financial stress throughout life. None of us want our kids to be stressed or have major anxiety. We want to reduce that financial stress. How do you do that by teaching them about money? It's also going to increase their self-esteem. If you understand money,

if you've ever gone through this process where maybe you started out and you had no idea how money works and now you're starting to invest your money. You're starting to put your money in the right places. All of a sudden, your self-esteem starts to spike. The same thing is going to go for your kids. There are so many different psychological things that this helps with. This is also going to help them develop goal setting skills. And goal setting skills are incredibly important when it comes to building wealth. It's going to help foster independence. Do you want your kids living in your basement until they're 35 years old? I don't think you do. Most people don't want that to happen. You want to foster independence. Maybe my wife wants my kids to stay with us for a long time.

But outside of that, most people want their kids to be independent. It also is going to help them with their math skills. If they're in school right now, this is going to improve their math skills because you're going to be doing some real world problems that you can help solve with those math skills. And in addition, it's going to prevent them from being impulsive. And what you don't want to do as an individual, as a human being in this world, is become impulsive because all that is happening right now is you are getting marketed to every single second of this day. People are on social media all the time. You are online all the time. And all that is happening when you're online is you are just constantly getting marketed to. And so what you want to make sure that you are doing is exercising

that muscle so you're not as impulsive. And so this is going to be something that's going to help them with that and fostering that as well. So there's a bunch of other reasons why you want to teach your kids about money, but those are some of the main ones. And we are going to be diving into it. So first, let's dive into kids five and under. All right. So first we are going to be talking about kids that are five and under. And when you look at kids that are five and under, some people may be saying it's way too early to teach them about money. I'm going to tell you from experience, it is absolutely never too early to start teaching them about money. And I'm going to give you a bunch of great examples here on how we can look at this. So number one is just identifying coins and bills.

So if they are five and under, just teaching them about the different coins and bills is going to be a really powerful thing because that is the baseline to teaching them all of these other lessons. They have to understand that money exists. This is what money looks like. And we spend it on certain thanks. So when it comes to coins and bills, I'm going to show you how to do this so you don't learn the hard way. I was showing my kids early on different coins and real coins are completely fine. And I was also showing them real dollar bills. And I stepped away for a second, turned around and I had a three-year-old who took a $100 bill and ripped it in half. So here's what I would advise you to do is you can go on Amazon and they have like prop money on Amazon. And what that is is like

fake money that they use for props. I have some in my studio here that we use for videos, things. like that. And this prop money is just like real money. You can get it for really cheap, five, ten bucks, and you can get all the different bills. That way they can hold this money, they can play with this money, they can look at this money, and start to identify this money. And you can use this to play different games with them, which I will kind of talk about here as we go through this process. So first of all, just identifying coins and bills is going to be the first thing that you can do. Number two is teaching them the concept of earning. So when you have really young kids. Maybe you're not giving them chores yet because you want them to kind of develop

that discipline of helping around the house, but you can teach them about the concept of earning money. And one way to do that is making sure that they understand that maybe there's some things outside of their comfort zone and your comfort zone that you can help them along with and show them, hey, you can earn some money by doing this. And maybe you're just using small coins, things like that. But you can do this with very simple chores that are outside of the normal chores that you want them to do. maybe you're going outside and once every other month, you're going outside and you're weeding your yard, for example. Well, if they pull X amount of weeds and put them into a bucket, you can give them a quarter, you can give them 50 cents or a dollar, whatever you want to do

in order to kind of understand that concept of earning. Then, because they are earning money, maybe you teach them about a concept of saving a portion of money. Now, this is obviously very difficult if you're dealing with the two-year-old on saving money. They're going to want to either just hold it or play with it or do whatever else. But as they approach four years old, and five years old, they can understand this concept. And so saving money really is getting something like a piggy bank. And you can do a piggy bank or a clear jar, but you want to make sure that this is something where they can see the coins inside of that jar. You want it to be clear. That's one thing I learned early on. If they just have a piggy bank and they're sticking coins in there, they really have

no idea of this money building up. So I like to have some sort of clear jar and or a clear piggy bank. So we have these piggy banks for our kids that are in the shape of their initials, and they can just stick the coins in there. They love it because it is their initials, and they can have those coins, and they can look at those coins. We also have another piggy bank for my son, which my sister gave him, that actually goes on the wall. It has a flat surface that goes on the wall and a clear plastic thing in front,

and he can watch those coins build up, and it's also like a little art piece in his wall. So it's a very cool little thing that you can look at as well. I think she got that at pottery barring or somewhere else. So the concept of saving money, if they can watch that thing build up, up and they can watch that grow. And maybe you just match it when they put it in there and you can add some extra coins in there. So it looks like it's growing faster. This would be a great introduction

to the value of saving and the value of earning. And then spending wisely. So you can teach your kids about spending going maybe to the dollar store or going out and buying toys. And when they go use their money, you can say, hey, here's the difference between some of these costs. And sometimes they have to be closer to that four to five range to be able to understand this. But here's a difference of some of these costs. This one cost X amount of dollars. This one cost X amount of dollars. And you're teaching values and spending wisely. And then lastly, the joy of giving. So one thing that I love to talk about is giving. And I love to teach giving as early as you possibly can. And if your kids can kind of understand this concept, teaching them to give is going to be really, really powerful. So we go to

church every single week. And so when we go to church, one thing we talk about is how I give a portion of my income to the church that I go to. And so one thing that we can do is if you go to church or if you go somewhere where there's a cause that you believe in and you're volunteering at that cause, or if you go do something that you really, really think is powerful, bring your kids along and talk to them about this and talk to them how this is going to work because you can start to teach them how to understand giving. And I think it's a really, really important life lesson. And one thing you can do is called the toss a coin idea.

And so what you can do is you can pick out two different charities and explain in a simple way what these do. You can make special jars for these charities and say, hey, each time you make money, If you put a coin in this jar, this is going to go help these people or this is going to go help this cause. And you can have this set up in front of them so they can see this grow just the same way that the savings count grow. So some small, clear jar can be really small. It doesn't have to be anything crazy. You put coins in there and then you can match it or something along those lines where you give to that charity at the end of every year or every month. However, you want to teach that lesson.

So that is another way that you can do that is the coin game. So you can have two charities involved. you can put one coin in each one and look for that as well. And then one thing I want you to do, one thing that really has been helpful for me is starting to talk to your kids about everyday money supporting activities. Now, what I've noticed very early on, the more you talk to your kids about real life stuff and everyday stuff, even with my five-year-old now, we have normal conversations about specific things. I just kind of tell him what I'm doing. And if it's too advanced for him, it's going to go over his head. But if I'm doing this over and over and over again, it's going to develop the emotional side and the emotional intelligence to start to understand

what I'm talking about because the more I say it over and over and over again, it's going to start piecing together. And pairing that with the example of actually doing what you're doing is really, really important. So here's a great example of this. I took my son, my five-year-old, the other day to the grocery store, and we went through the grocery store and we started buying items, and I talked about the price of each item that we were picking up and why we were choosing one item over the other. Then, at the end of this, we went through the whole process at the grocery store. We paid for it. I showed him my card and how I paid for it. And then I handed him the receipt. And I said, I want you to look at this receipt. And I want you to go through the receipt. And look,

these are all the different things that we bought on this receipt. But there's also two other things that are on that receipt that you really want to understand. A, it shows the total of all the items that we bought on the receipt. But B, there's another item on there. It's called tax. And I started to explain taxes to him in sales tax. And I said, hey, if you have, if you have, you, had a hundred different pennies in my local area, our sales tax is 7%. So I said, if you don't have 100 different pennies and you had sales tax on here, every hundred pennies that you spend, you also have to give seven pennies to the government so they can do different things with it. Maybe they want to build roads, or maybe they want to build a school that you go to or they want

to do all these different things. And you start to explain how this is starting to work. And if you do this over and over and over again, he got it the first time. And so if you start to talk about money over and over and over again, all of a sudden these concepts become easy to understand because you're talking about it all the time. Also, another fun party trick that I like to do is, is I taught him what an asset is and a liability is. Basically, he's just kind of memorizing the definition. But now that he's actually memorized the definition, we've gone through different assets and liabilities. And the easiest way to do this is with real estate. So we'll talk through real estate and say, hey, if you buy this house, you can actually rent it out and help other people who need to live in this house. And you can

make money while doing so. So you're helping other people and you're making money while you're doing so. And so you can talk about assets in that way and you can talk about liabilities. And you can say, hey, if you buy a car, over time, things start to break inside the car. You've seen us go to the mechanic before. He's come with me to get an oil change. And I said all this stuff kind of costs money. And it goes down in value over time as it gets older and older and older. These are just little simple concepts. They're going to help them understand assets versus liabilities. So these are some cool things that you can do with really young kids. And I promise you, you think they're not going to understand this. They absolutely will if you make this a conversation piece over and over and over again.

I promise you they will. So this is something where I love doing this. Now, another fun game. This is one of my favorite things that I have done. I don't know where I just came up with this one day and just started doing it with my son. And I have seen his skills grow incredibly by doing so. Is you can play the sales game. And you can do this with the next group, the six through 11 as well. And you can do all these with the next group. If you haven't started yet, you can definitely do so but with this the sales game what we do is we go through his toys and figure out a way for him to sell different items within those toys to me so basically what i'm doing is i'm developing sales skills very early because sales is one of those powerful skills that you can have but in addition i'm also

working on bartering skills so let me give you an example of this because it's much easier to understand if i give you an example so i have two sons both of them are really into like monster trucks and cars, things like that. And they have all these tracks that they keep those monster trucks and cars on. And so one day, we pulled out one of the tracks and we called the track his car dealership. And in his car dealership, he has to bring me different cars and try to sell me these cars. And so what I taught him to do was tell me about the features of each of these cars. What kind of tires does this car have? Why is this color better than this color? And he's going through and selling me on each of these features. And if he does a good enough job, I take that fake prop

money that I was just talking about at the top of the show, and I will buy the car from him, but we negotiate on the price back and forth. And early on when we were doing this, he would take whatever price I offered him, and he would take that price immediately and take that money. He would not negotiate or he would not say anything back. So what we started to do is teach him, hey, you can actually get more money out of someone if you start to ask for a different price. And you guys have to meet in the middle and come to an agreement. But if you start doing that, then you'll be able to make more money. And so we started to go through this process. And now he starts to get in negotiations with me, and he is now a hard barterer at five years old,

where we have just used this game for a bunch of different things. In addition, you can do this with, if you have a bunch of farm animals, for example, or if you have, it doesn't matter what toys you have, you can figure out ways to play little games like this. Another thing that they do is they have like a play set, which is like an outdoor kitchen set that they have, and they make food, things like that. And so they started a restaurant, and we figured out ways for them to price out each of the restaurant items and sell them to us.

So this is the selling game. I love this game for young kids and for kids that are older too because this helps them develop those skills. We're not only just teaching them about money, we're teaching them about life skills that are going to help them in the future. So this is a game that we started to play and we do this all the time now. And they absolutely love playing that game. So that is another great one for kids that are five and below and or you can use this at

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saving, one for spending, and one for giving. And if you have all three of those clear jars, then what you can do is every time they make money, they can put some into saving, some into spending, so they can spend money on themselves. They absolutely need to be a part of this. And someone, giving. And when you have those three jars set up, this is something where they'll really visually be able to see every dollar I make if I allocate it in these areas. Some cool things can truly, truly happen. And a lot of times this can also motivate kids to want to do more chores or do some extra work so they can earn more money. So it's a cool way to see it visually is with the three jars. Another way is something that we have learned about along the way called pizza budgeting.

If you've never heard about pizza budgeting, you teach your kid about budgeting while eating pizza. So it's a win-win for both of you. But this is exactly how it works. So you say that a pizza represents your entire income. So you're looking at a pizza and that represents your entire income. And each slice of pizza relates to a different expense that needs to be paid. So say, for example, you show them that you have to pay for water and the electricity on. So you take one slice and show this is part of our income that we have to spend on these types of things. But we have to budget out for this and make sure we have enough money for this. Then you take another slice and say, hey, this is the slice that we use for giving money.

We give money away based on this slice. And you take another slice to say, hey, this is the amount of money that we used to pay for our house. And maybe it's two slices, not just one. And then you do another one for your car. And you do another one for whatever else you have within your budget or whatever else is going to make most sense to your kids.

And so that's a cool way to visually show your kids the different ways that you can allocate money and allocate a budget. And you can say, hey, some people learn how to make more money and they'll have two pizzas to budget instead of just one. And there's really cool things that you can do with that. But it's a great visual way to show your kids how to budget. So I think it's very, very powerful to use either one of those methods or both so they can learn how to budget over that time frame. The next one is the value of money. So this is where price comparison really needs to come into play is you can

show them price comparisons through different items. So you can do this with toys, for example, say, hey, this specific toy costs $20 and this specific toy costs $5. You can get four of these toys for the same price as one of these toys and just kind of show them the differential between pricing. And this is why I like taking my son to the grocery store because we talk about prices and how much this stuff costs. And he can see, hey, the same exact loaf of bread that's generic is going to cost half the amount of the name brand loaf of bread. And they're the exact same thing. So you can kind of show things like that that are really, really helpful for them to see the value of money. Also, setting financial goals. So the way that you set financial goals is one way is you can do

the clear jar budget example where you have those three different clear jars and you show them percentages or goals. So say for example, you want to set up X amount percent for giving. So say maybe it's 10% of your income comes in and you want to put that towards giving. Well, you can put a little 10% on there and show them, hey, every dollar you make, you take 10 cents or you take a dime and you put it inside of that clear jar. Same thing goes for saving and the same thing goes for spending. So when it comes to saving and spending, you may be saying, well, what percentage should I let them save and what percentage should I let them spend. Same thing that we say here. Say, for example, they make a dollar. At least 20% of their income should go towards that. I really like for them to go to like towards 50% because

if they get in the habit of saving 50% of their income, they're only going to work like 15 years by the time they hit the corporate world when you look at the math. So if they get into that happen, that's going to be really, really powerful. So really, if you can start at 50% and they'll do it, I would definitely consider starting at that 50% range. Another cool thing is because they're setting these financial goals, you can also start a 401k match program. And I originally heard this from, I think Dave Ramsey talked about this, where he called it like the 401 dad or something like that. And he did this with his kids where his kids would make a certain amount of money. And if they put X amount into their investment account, which we'll talk about investing in a second,

if they put X amount into their investment account, he would match it. So if they put $100 in their investing account, he would match it every single time. This was exercising that muscle to get that employer match, that 100% free money. This is one of the first things we tell you to do here is to make sure you get that employer match or that 401k match. And so if they see that you will match that, then that is another powerful lesson for them to understand that piece. Also, understanding tradeoffs. So understanding that you cannot have everything in this world, but you can have the things that you truly want and understand that you need to save up for specific things. And there's a tradeoff for everything that you purchase. If you purchase five, $5 toys, you can't get that one big $20 toy

that we just talked about. So there's a lot of different things that we can talk through there, but understanding those tradeoffs are going to be really, really important. Now, also in this age range, six to 11, you can start to introduce them to banking. So maybe you guys go together and you show them a bank and you show them how banks work. But in addition, what you can do is when you introduce banking to them, maybe you guys go in there and you open up a savings account for them. So you start to save money in those jars, for example, and then you take that money from the jars and you go take it to the bank every single month or every other month or every quarter and you go deposit that money and they understand how banks work and they can see how banks work.

So giving that introduction to banking is really, really cool. And you can also start showing them investment accounts if you open an investment account for them before them. If you want to know how to open an investment account for them, we'll link up that episode in the show notes where we talk about the exact steps I take to help my kids get to $7 million by the time they turned age 65. And so that's a really, really cool episode if you haven't heard that one. This is also definitely when you want to introduce chore money. Now, some people do not want to give their kids chore money, but the reason why I am going to do so, I'll state the case for you, is that I don't want them just working for money.

So chore money is going to come outside of their normal chores. And what's going to happen is I want them to understand how to manage their money. So they need to have money management skills. And there's no way for them to have those money management skills unless they actually have money. So earning that money is skill one, then managing that money is skill two and saving that money is skill three and four. So they need to understand how to do those things. And there's no way they can do that if you don't give them any money whatsoever. They don't have money. So they need to understand

how to do that. That is why I'm going to allocate chores. You can do whatever you want. If you don't want to give them chore money, there's other ways to teach them about money. No issues there. I'm just giving an example of why I'm doing that. And this will allow you to introduce that saving and giving and all those different skills with that chore money. Now, allowing them to make decisions is going to be really, really important on this. Because when you get to the point where you're trying to get them to save X percentage or you want to save X amount of dollars. One big thing you want to do is you want to give them that incentive that maybe you'll match it. But if they make the decision not to do so, what's going to happen is you see this very early on. I remember this when I was a kid and I remember

this with my sisters as well, is that we learned really, really quickly that if you don't save your money and you spend it all, you have no money left over for anything that you actually want. And if you're buying a bunch of little dumb things when our mom used to take us at dollar store and you take your money out and if you buy a bunch of dumb things, then you have no money left over for some of the cool stuff. So there's just things like that that you've got to allow them to make some of those decisions and make some of those mistakes and go through that. You can also do something like if your child has siblings, you can start a sibling rivalry game. So this is a cool one that I remember we used to do when we were little. We would have savings goals. And when we'd have these savings goals,

whoever saves the most money, maybe mom or dad decides to match that amount. So they get double that amount or they get a percentage more based on how much they save every single month. So that is another cool way to kind of get an additional match for saving. And they build that. that exercise that muscle to save more money because they get more money and you can call this interest. So it's just a learning process for interest. So maybe you give a percentage of interest from their savings account also. So say, for example, you can do a 10% interest rate. And if they save $10 a month and you give them an extra dollar for saving that money in that savings jar. And then bartering practice. So obviously carrying over those games that we were talking about,

bartering and learning how to sell things, that is one that you definitely want to practice with them. And this is a great way to have additional challenges, but teach them life skills. that they're going to use forever. And that is one really, really valuable skill that they definitely need to have. So these are some of the things that you can do from age six to age 11. Now let's jump into the preteens and the teenagers, 12 through 18.

All right, so kids age 12 through 18, they're going to understand pretty much all the concepts that you teach them here. So this is going to be really, really powerful for you to teach them how to kind of do some of this stuff. Number one is advanced budgeting. So teach them how to actually create detailed budgets or just create percentages so that they can actually budget and allocate dollars correctly,

including income from part-time jobs and expenses like entertainment and clothing. So these are major, major things that a lot of kids who are teenagers care about is entertainment, clothing, cell phones, those types of things. So you got to make sure that they are allocating and budgeting some of this money. So you can create many spreadsheets with them, and that is a huge skill for them to learn is how to actually use spreadsheets. But creating these spreadsheets is going to help them actually understand how to budget, allocate their money.

They don't have to be budgeting exactly, but there's some cool things. that you can do. Now, the Rockefeller family, if you've ever heard of them, they're one of the wealthiest families to actually preserve their wealth. And one thing they did is even early on, John D. Rockefeller used to have his kids and give them allowance. And he used to have this kids actually report back on where they spent their money and how much they saved. And he would actually make them give him a detailed budget. If they did not give him that detailed budget, he would not pay them their allowance the next week. They'd still have to do the work, but he would not pay them in their allowance. So they were incentivized to budget. This is some tool that I am going to be

and you can probably use as well. But the Rockefellers have been known to actually be the family who has preserved their wealth the longest. So that is a really, really cool tip and tool. And one big thing that they all keep passing down from generation to generation. Now we also want to be talking about investing basics. And you can do this from 6 to 11 too. I think it's really important to do this from 6 to 11 is talking about investing basics. Because when they are in that 6 to 11 range, you can talk about companies that they know like and love. If they love to go see Disney movies, you can say, hey, we're going to buy some Disney shares here. And so when we start investing, we're going to be buying these Disney shares. And then once you get those basics in from age six to

to 11, now we're going to be talking about the investing basics from all the way across the board. So the index funds, for example. You know I love index funds more than anything. We have a course called Index Fund Pro, which has all these basics in it, by the way. But Index Fund Pro actually will teach you, you know, what a stock is, what a bond is, all the way through all that stuff. But you want to teach them those basics. You want to teach them what a stock is. You want to teach them what a bond is. You want to teach them what index funds are and why it is really, really powerful. to have index funds. All of these different things are going to be really, really important for you to understand. So we actually even have listeners who are teachers who listen to this podcast and they actually

will take Index Fund Pro and show it to their kids and they will take their kids through some of these investing basics. We have a number of different teachers who do that. I absolutely love that you do that. So if you're a teacher, reach out to me and we'll work out something where you can be able to do that so your kids actually understand investing if that's something that you're interested in. So that's another big one is the investing basics learning how to do that. and debt. So teaching them about credit, teaching them about debt, how debt can absolutely destroy your wealth, but how debt can also be good if you're investing that into rental properties, things like that, teaching them about credit how that works and how it can ruin your life if you get into

credit card debt. So making sure they understand both of those concepts and teaching them how to build credit. So you can start building their credit very early on, depending on what credit card company that you have. But if you've never heard of this, what you can do is you can add your child as an authorized user onto your credit card. And once you do that, they will start to build credit and build up a credit history. Now, you have to be responsible with credit cards to do this. If you are not responsible with credit cards, do not even consider this because you will ruin your child's credit. But what you need to do is you can add them on your existing card as an authorized user. They'll send you a card in the mail. You can just cut it up. You don't even have to give it to them.

And then just make sure you pay off that card in full every single month. And they will start to build credit. And they will have an excellent credit score by the time they're age 18, 19, 20 somewhere in that range. So that's another cool thing that you can do is show them how credit works and help them build credit, especially once they get to age 12, 13, 14, 15, you can really start to ramp this stuff up. And then encourage financial responsibility, teach them about that money management, timely bill payments, tell them why you pay the bills. Talk about money more. Talk about this real stuff. Say, hey, my electric bill came in, my lawn care bill came in, my bill to my Netflix subscription came in. Teach them about all these different bills and how you have to

pay this money towards all of these bills. And then career paths, start talking about career paths early on when they are young. Because what I notice is when kids start to think about some of these career paths when they're young and you talk about the salaries and you talk about why you'd want to maybe take that career path instead of getting a student loan for a low paying career path. This is going to be really, really helpful for them going forward, learning how to actually understand this stuff. And then the last cool thing to talk about is taxes.

And taxes are something where you can start to teach them about different tax situations and tax loopholes. but in addition how you have to pay taxes, and that is one of your biggest expenses and some cool things to get around this stuff. So these are just some of the topics that are great to teach your kids about money. If you guys like this episode,

if you guys like how we have all these different things to talk about and teach your kids about money, let me know, because we can create more content surrounding this stuff. And I think this is a really, really cool way for you to be able to kind of teach your kids about money. You can give money to your future generations. They'll actually be able to preserve that wealth.

And the more parents that do this, the more powerful it can be because the schools are not teaching your kids about money. Even if they make mandatory personal finance concepts, it's going to be nothing compared to all this stuff we just talked about. It is up to you to help teach them about their money because nobody taught us. And so it is going to be really, really powerful for you to be able to do that. Listen, I hope you guys enjoyed this episode. And if you got value of this episode, share it with a family member or a friend. Share it with another parent or someone who may become a parent at some point in time and see if they can get value out of this episode as well because I really

want to spread this message that we need to pass down this knowledge from generation to generation. If you got value out of this episode, consider leaving that five-star rating and review on your favorite podcast player. You cannot thank you guys enough for listening to this podcast and investing in yourself because that's exactly what you're doing when you listen to this podcast is investing in yourself. Thank you guys again for listening. We will see you on the next episode. Rosen lasagna, medium power, 15 minutes. Sounds like Ojo time. Let's play. Feel the Fun with Play-O-Joe, the online casino with all the latest slot and live casino games. What you win is yours to keep with no wagering requirements, instant payouts, and no minimum withdraws.

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