Your Kids Can Learn Money Earlier Than You Think
If you've ever wondered whether your child is old enough to start learning about money, the short answer is probably yes. Russell Rivera shares the simple, low-pressure ways families can start those conversations early, using real situations like grocery shopping and saving for a toy.
Topics Discussed:
Parents wait too long to start
Let everyday moments do the teaching
Give kids money and let them make mistakes
Help kids save toward something they want
Transcript:
Hey everybody. I'm Russell Rivera, Founder and President of Voice Wealth Management and welcome back to Sidewalk Talk.
One of the questions I get from clients more than anyone else is, when should I start teaching my kids about money? My answer is always the same. You can start younger than you think. Here's what I see happen. Parents wait. They think the kids are too young to understand or they're not sure how to bring it up without making it weird. And then one day their teenager has a debit card and no idea how to use it properly. When standing in front of a preschool location here in Manhattan, and so it made me think about what happened when my son was four. We were going through the kindergarten process and someone asked if the curriculum would help their child get into Harvard. Trust me, I went to Harvard. That's not how any of this works. But I understood the impulse. We all want to set our kids up for success. The problem is we focus on the big stuff and skip the basics.
In terms of teaching your kids about personal finance, you don't need a lesson plan. Start with what's in front of you. At the grocery store, talk about why you're choosing one thing over another. That's budgeting. Give them a few dollars to their own, let them decide how to spend it. When they blow it all on something they regret, that's the lesson. You didn't have to say a word. If they want something bigger, help them save toward it. A toy, a game, clothing, whatever it is. Let them feel what it's like to wait for something and then earn it. That's a wonderful feeling and it's also learning how to spend, save and budget. Those three things are the whole foundation and kids can learn them as soon as they can count.
Once again, I'm Russell Rivera. You don't have to turn dinner into a finance lecture. Just let your kids in on the small decisions. That's where it starts. If you want to talk about building a financial plan that includes your whole family, visit us at www.voicewealth.com. Thanks and we'll see you next time.
Russell D. Rivera, CFA, CFP®, is the Founder and President of Voice Wealth Management, an independent financial services firm serving professionals, entrepreneurs, and families in New York City and beyond. Focusing on helping clients make informed decisions about saving, investing, and financial planning, Russell is committed to providing a customized approach that reflects each client’s unique priorities and experiences.
