“Working to help parents raise money-smart kids.”
Hello, friends!
Let’s get right to it: My appearance on the Money Tale$ podcast dropped last week. Hosts Cammie Doder and Sandi Bragar are working diligently to help move money conversations from taboo to typical.
Sound familiar? 😉
FWIW, I think this interview is one of my best. So I hope you listen to our 30-minute chat during your run, commute or “I-need-a-break-from-my-kids-this-summer” time.
And conveniently, this week’s “3 Ideas to Share & Save” further explores several of our discussion topics.
— 1 —
Origin Stories: Ever wonder why my wife and I wanted to raise money-smart kids? And how did I create The Money Mammals to help us do this?
It might not surprise you that having kids was a catalyst. But did you know that shows like Life with Louie, the animated movie The Adventures of Tom Thumb and Thumbelina and the pilot of The Proud Family were steps along my journey? And what about an expensive watch?
Listen in right at the beginning of the Money Tale$ episode, and you’ll discover how these elements led to my creating Joe the Monkey and helping kids across the country learn to “Share and Save and Spend Smart Too!”
Joe’s superpower is his ability to sing truthfully about money. And honestly, I still love the songs my brother Mark wrote (arranged by my friend and colleague, Randall Crissman). So on this World Listening Day, I challenge you to play “The Red Straw Hat” song and not have it stuck in your head for the rest of the day. 😂
Psst: During my Money Tale$ appearance, I talk about programming games on a particular type of personal computer. The first reader to email me the name of that machine will win a signed copy of my book, The Art of Allowance!
— 2 —
Opportunity Lost: “Opportunity cost” is a well-known concept in economics. Simply put, doing one thing often comes at the cost of another. For example, an opportunity cost of buying a new phone is that you can’t invest the money spent.
So “opportunity cost” can mean “opportunity lost.” I’ve elaborated on this subject in past newsletters: here and here. And I even discussed the opportunity cost of college with Troutwood’s Gene Natali. 👇
As for Money Tale$, Cammie, who has two young kids, was looking forward to our conversation. In fact, she jokingly noted that both her five-year-old and seven-year-old currently choose to spend their money on candy, toys and books (in that order). How can she go about teaching them to be mindful of such purchases?
While listening to the episode, it dawned on me that I should have mentioned another opportunity cost: deciding not to start a program. Because if you forgo using an allowance to teach your kids about money smarts, then you miss a chance to begin a lifelong conversation. The opportunity cost is that your family won’t create its own meaningful Money Tale$.
— 3 —
Making Modeling Visible: During our podcast discussion, Sandi made an astute observation about modeling. (Modeling, as you may recall, is one of the three engines of financial literacy. The other two are direct instruction and personal experience.) Namely, we want to be mindful to model financial behaviors, typically in line with our values, that we’d like to instill in our kids.
Sandi went on to note that modeling often lacks context, and I agree. Learning to make money-smart choices is a key money-smart skill, yet the decisions we make are often invisible to our kids. 🙈
Sometimes we need to sprinkle in a little more intention. For example, when we purchase a car for five figures, our kids don’t see us choosing not to get the sport package or not to spend another five figures to get the model that’s double the price. We should try our best to give voice to these invisible choices so our kids don’t miss learning opportunities.
Thankfully, we can continue to improve our own behaviors (and model those same actions) along the money-smart journey. I’ve discovered that doing so can be kind of fun. For instance, I frequently use the “Waiting Period” tactic I wrote about in The Art of Allowance.
Of course, we should go easy on ourselves if we make our own money mistakes or forget to give voice to an invisible choice from time to time.
We’re all in this for the long haul, so let’s remember to 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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