#10: Cassidy, Cash and More
In this latest episode of our "How to Teach Your Kids About Money" podcast, hosts Alec and Julie talk about the evolution of Julie's teenage daughter from a spender to a savvy budgeter. Cassidy loves expensive clothes and accessories, but through consistent practice with money and monthly allowance days, she's learned the value of money and budgeting. She even makes money by selling clothes or doing extra work around the house!
They also discuss the value of cash, and how to teach kids about always having some on hand. Alec and Julie also discuss how cash can make money transactions more tangible and concrete for kids, rather than them always using electronic payments. Some parents might be new to the idea that debit cards and other forms of e-payment should be eased in slowly after their children have had lots of practice with cash.
Some key takeaways:
* Julie has seen their teenage Cassidy become more disciplined about her spending habits, which has led to less conflict.
* Although Cassidy likes to buy expensive, trendy clothes, she now understands the value of a dollar in terms of how many hours she needs to work to earn the money she'd like to supplement her allowance with.
* Cassidy no longer spends her money regularly at Starbucks, now that it's coming out of her own pocket.
* Both Julie and Alec are excited to see their children become more interested in investments and donations, and they feel that their children are becoming more money savvy as a result.
* Their kids' interest in investments has led to interesting conversations about sustainability credits and carbon emissions between them and their friends.
* It's also sparking conversations around money between the parents and their kids, which Julie didn't experience growing up. Money was a taboo topic for kids in her family.
* For Julie, this whole experience feels like a mix of parenting and money education, since she is learning along with her kids.
* Paying with cash or credit cards creates an opportunity for parents to have a conversation about money with their kids.
* Conversations about the cost of meals and restaurants can help teach children about the value of money, as in the case of Alec using Apple Pay at a pizza place recently.
* People tend to overspend on takeout because they do not think about the cost. The actual transaction of money creates more awareness of the spend.
* Having cash is still important, as some places may only accept cash.
* Cash is an incredible tool to use with kids because it’s tangible and concrete.
* It is important to teach kids the value of coins, since they can add up!
* The transition to using a debit card should be gradual, with parents still doling out cash during allowance and adding a debit card to the process.
* Teaching kids about budgeting and saving can be done by setting goals, creating a budget, and through the monthly allowance day practice (a.k.a. COR Day).
* Alec and Julie are watching their children become more money savvy in real time, and they're excited to see where this will lead.
With patience and consistent practice, our kids can become financially responsible adults. Remember, you really are the best person to teach your kids about money!
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In this episode:
- Alec Lindenauer, COR's Chief Allowance Officer and Financial Advisor
- Julie Frans, COR's Chief Community Officer
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Want more resources to teach your child about money? Check ‘em out here:
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💰How To Teach Your Kids About Money Podcast:
https://www.centsofresponsibility.com/podcast?utm_source=podcast&utm_medium=organic&utm_campaign=ep10
💰Cents of Responsibility Blog:
https://www.centsofresponsibility.com/blog?utm_source=podcast&utm_medium=organic&utm_campaign=ep10
💰Cents of Responsibility YouTube Channel:
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