“Working to help parents raise money-smart kids.”
Hello, friends!
I’m writing to you from Las Vegas, where my younger daughter is competing in The Player’s Showcase, an annual tournament that gives college soccer coaches a chance to discover new talent. 🤞🏻
During the event we’re staying on the famed Las Vegas Strip. As you might imagine, Vegas’ in-your-face celebration of consumer culture doesn’t exactly jive with my passion to help parents like you raise money-smart kids. Casinos preach the opposite of what you’ll find in this newsletter.
So this week I’m dealing my own cards: three graphics in line with what I can’t help but think about while in this lion’s den of conspicuous consumption. I’m imagining myself passing out these pieces to young gamblers with the hope of giving them pause before they bet against their future selves. A man can dream, can’t he?
Incidentally, the cards below are part of our Adolescent$ program for tweens and teens. It in turn is part of The Art of Allowance Project partnerships we forge with credit unions nationwide, like Louisiana Federal Credit Union. You and your kids can sign up at your local credit union. And if they’re not a partner, then ask them why. 😉
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Live Beneath Your Means: This key component of the money-smart equation has been on my mind recently. I even wrote about it in my essay “You Don’t Need a Budget,” in which I posed the following question: If you live beneath your means and pay yourself first, then do you really need a budget? 🤔
This advice seems obvious until you realize how few of us actually abide by it. The earlier and more often we can encourage our children to live beneath their means (and model the same behavior ourselves), the better off I think we’ll all be.
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Choice Control: You probably know by now that making smart money choices is one of three core financial abilities that I believe kids can and should learn about from a young age. I highlight all three of these money-smart skills in my book, The Art of Allowance. Spoiler alert! The other two are setting and saving for goals and distinguishing between needs and wants.
Whether or not we realize it, we’re always making money choices. The essence of making smart money choices is to be more intentional with, or rather, more mindful of, the decisions we’re making. Money mindfulness, therefore, proves a straighter path to money empowerment. Because we’re not hard-wired to think long-term, mindful choice making empowers us to treat our future selves a little better. 🎁
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Opportunity Cost: When we gamble, we’re definitely doing a disservice to our future selves. Going bust at the blackjack table stings momentarily. But it’s the opportunity cost of that money which holds prolonged consequences.
Because money is a limited resource, there is, of course, an opportunity cost to any use of it. However, gambling losses are particularly painful because there’s nothing to show for what we just handed over to the casino. 💸
For some, there is an entertainment value. Friends might hit the casino floor with a set amount of cash and an intention to stay for a few hours. Assuming the amounts in play don’t affect their abilities to live beneath their means or to pay themselves first, then there’s no harm in this approach.
Still, it’s worth reflecting on this choice and considering whether we’ve really thought through the opportunity costs involved.
It’s also worth talking to our children so they can weigh these decisions (and make good ones) if they undertake a pilgrimage here with their friends some day. 🎰
As always, enjoy the journey!
John, Chief Mammal
P.S. Please consult with a financial or investment professional before engaging in any decisions that might affect your own financial well-being.
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