“Working to help parents raise money-smart kids.”
Hello, friends!
Do I have a Valentine’s treat today! ❤️
I interview my wife and Money Mammals co-creator, Eileen Lanza, on The Art of Allowance Podcast. 👏
I’ve been meaning to have Eileen join me for a conversation for awhile. And releasing a milestone episode (The big 5-0!) on Valentine’s Day with the wife…priceless. 💳
— 1 —
My Money Mammals Valentine: Simply put, The Money Mammals wouldn’t exist without my partner in life and creation, Eileen. I often refer to her as The Money Mammals O.G.
While my path to money smarts has been rough ride, replete with mistakes from which I learned hard lessons, her journey is like that of a money-empowered Jedi. ⚔️
Listen in to see what I mean, as Eileen answers these vexing questions:
- Did you come out of the womb money-smart?
- Who was your biggest money influence?
- What books do you recommend for parents?
- What was our biggest mistake in raising our kids? (Gulp! 😳)
— 2 —
Open a Savings Account: In a recent Art of Allowance Academy class, a parent asked, “Do you keep the Save jar money at home or in the bank?” 🤔
The answer is yes and yes. I love the Save jar because it comes into play immediately. Case in point: During your first trip to the store after you’ve started your allowance, your little money maven wants something for which he or she doesn’t have the funds. Time to set a S.M.A.R.T. goal!
Opening a first savings account also feels like an early rite of passage. And a great place to start is your local credit union, which might be a Money Mammals partner. Speaking of our terrific partners, F&A Federal Credit Union even offers a special 6% rate for the first $1000 deposited. Jackpot! 🤑
I also suggest using an incentive, such as matching some amount of the money your children save. Though some parents will match dollar for dollar, any incentive is a good idea. For instance, I pay my kids 3% interest (Compounded monthly!) based on a concept I learned from previous podcast guest David Owen.
— 3 —
Quick Answers to Common Questions: In an effort to keep the money-smart conversations flowing, here’s a lightning round featuring some quick answers to a few more questions from previous Art of Allowance Academy courses.
That’s right…even more ideas to share and save this week. A Valentine’s Day bonus! 🙌
- “How do I calculate an allowance?” We started out our five-year-old with five bucks — $1 went into the Save jar, $1 was allocated to the Share jar and $3 was deposited in the Spend Smart jar. I explore the reasoning in this short essay.
- “Are there resources for divorced parents?” Though I can’t personally vouch for it, 2houses is an app that is supposed to help divorced households cope, and it includes a financial component.
- “And what if the allowance clothes are not ok, lol? But it’s ‘their’ money?” Love this question! Remember, family rules generally supersede allowance control. We want to grant our children autonomy, but, as I told this parent, I wouldn’t let a seven-year-old use his money to rent Friday the 13th on Vudu. 😉
Well, that’s a wrap. Thanks for reading, and, as always, 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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