“Working to help parents raise money-smart kids.”
Hello, friends!
I mentioned last week that I’d spoken with The Smart Money Mama, Chelsea Brennan, on the podcast recently. I have good news! My full conversation with Chelsea dropped this morning.
There is so much good content to chew on that I’ve dedicated this week’s “3 Ideas to Share & Save” to our conversation. Enjoy!
— 1 —
Never let ’em see you’re not saving: Chelsea has a unique way of dealing with the lull in allowance interest that often follows our kids’ completing a SMART savings goal. (If you are curious to hear more about this topic, I discussed transitioning from goal to goal with Kelly Mindell in a previous episode [28:54].)
Chelsea requires her boys, 7 and 4, to always be saving for a goal in their Save and Share jars (which, as you’ll see below, aren’t actually physical jars). As soon as they’ve saved for a goal, they celebrate the achievement (another good idea) and then work together to figure out what’s next for the jar in question.
I like this approach because it will give her kids more time and valuable experience learning how goal setting can work for them. Chelsea noted that, at this age in particular, “money in the bank isn’t the goal,” and I wholeheartedly agree. The goal, the WHY of allowance, is to help our kids learn to manage money. Throughout this process, they’ll learn the three core money-smart skills: distinguishing between needs and wants, setting and saving for goals, and making smart money choices.
In the spirit of The Art of Allowance, this is yet another good idea I’ve uncovered through our conversation. It’s up to you whether you think it’s a sensible approach to take with your kids. Let me know how it goes if you do!
— 2 —
Early To Digital: Chelsea’s boys already have debit cards! She decided to use the platform Greenlight, but there are various options, including Current and FamZoo, that represent the same idea. You can also ask your credit union or bank if they have a combo debit card + app solution that would work best for your family.
Chelsea decided to go digital early because she puts a premium on consistency. Automating an allowance via an app certainly ensures that. Plus, our kids’ money lives will almost certainly be lived digitally. Getting them started early in the digital realm makes some sense.
Again, this is a personal choice. While going digital is almost inevitable when our kids become teens or even tweens, there’s certainly a solid argument for starting with cash. I think it’s helpful for kids to see physical money exchanged just to understand how transactions work. Also, at allowance time, having physical jars helps emphasize the importance of being conscious about our money choices and where our dollars go – Share, Save or Spend Smart. Research has also shown that money adds friction. It’s more painful for us to part with, and we tend to spend less when interacting with cash.
Going digital early is another tool you can add to your Art of Allowance toolkit. If you want to know all the Art of Allowance fundamentals, you can grab a copy of my book, now available on Amazon.
— 3 —
Do snow leopards have pockets?: I’ll leave you with a funny story from our conversation. Chelsea wanted to encourage her kids to use their Share jar money and her son decided that he wanted to help protect endangered Snow Leopards through the World Wildlife Foundation. Chelsea and her husband also made sure to match his donation, a very savvy money-smart move that helped him achieve his goal sooner.
But after she helped him complete the donation, her son had a concerned look in his eyes and asked, “What if the snow leopards lose their money?” Chelsea asked him what he meant, and he continued, “Snow leopards don’t have any pockets.” Chelsea was able to hold her laughter and explain that the snow leopards weren’t actually receiving the money.
If you liked this story, I think you’ll like our full conversation.
Chelsea’s story reminded me of something my daughter said when she was very young. After we did a little spring cleaning, we donated a few old toys to charity.
A few days later, she looked at me with a straight face and said, “I want to play with Charity!”
I asked her why.
She continued, “Because Charity has all my toys.” 😂
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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