“Working to help parents raise money-smart kids.”
Hello, friends!
Since it’s Money-Smart Monday, here are three more ideas for you to share and save.
Let’s get right to it … I’m excited to tell you about my newest podcast conversation. These chats often feel like breaths of fresh air — they are invigorating and often open my eyes to new perspectives.
My latest discussion with Kennedy Reynolds is no exception.
— 1 —
Automate! Kennedy is the Chief Content & Education Officer at Acorns, a saving and investing app. We cover a fair amount of ground during our conversation.
In her business role, Kennedy teaches parents like us the importance of automating our saving and starting this practice from a young age.
Getting money out of our hands so it can work for us is a good idea. The sooner our kids learn the “pay yourself first” approach, the easier it will be for them to live beneath their means, one of the six essential concepts we can teach them as they move from toddler to teen.
— 2 —
We Easily Forget: Kennedy also talks about educating at the moment of decision making. Whether we label certain conversations with our children “serendipitous opportunities,” as I did in “The Good Kind of Marketing” section of this essay, or consider them the more common “teachable moments,” preparing ourselves to have discussions when our kids’ ears are most attuned to us makes sense — when choices involve their own money.
For instance, since our 16-year-old recently did a bit of freelance work to make some extra money, my wife and I “nudged” her to move 10% of those earnings into her digital Save jar. Knowledge drops off quickly, and it’s more likely to stick when it has immediate relevance.
As we age, we often lament our failing memories, wishing we had the steel-trap photographic abilities reserved for a lucky few. Forgetting, though, is simply a sign that we’re human, as the Ebbinghaus Forgetting Curve shows us.
I use an Anki system to help me remember concepts I want to recall easily, like our human biases. It’s a way of subverting the forgetting curve. As parents, we can be our children’s Anki system, helping them remember important concepts by providing reminders at key moments of decision making.
— 3 —
Let’s Get Digital! (Sing it to this tune, and then try getting THAT out of your head. 😜) Kennedy and I also discuss the hybrid digital/physical allowance system she uses with her young kids. Listen in to the podcast at 20:26 for all the details.
I talk about a different approach, using an all-cash allowance from a young age, in my book, in many essays and in numerous podcast conversations.
However, I appreciate Kennedy’s hybrid perspective because it underscores the reason I started the podcast — to have discussions with money experts and parents (and sometimes both!) to provide a range of valid ideas from which you can fashion your own system.
We’re all on different journeys, and I hope these resources help make your family’s experience even more enriching.
Thanks for reading.
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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