Teaching Your Kids Finance

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DIY Money | Personal Finance, Budgeting, Debt, Savings, Investing 15 min 2 speakers 3 chapters transcribed 2 months ago
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How do we introduce the episode and why is teaching kids about money important?

Allie (Allie Howard) 0:02
Hey, this is Allie, and thanks for listening to the show. Give us a five-star review where you listen and share this episode with someone who might need to hear it. Now, enjoy the show.
Logan 0:13
Welcome back to another episode of DIY Money.
Allie (Allie Howard) 0:16
DIY Money.
Logan 0:17
I am hype about this question, Allie. I am hype.
Allie (Allie Howard) 0:20
We just had an in-studio discussion.
Logan 0:22
We had an in-studio question.
Allie (Allie Howard) 0:23
And Logan said, oh my gosh.
Logan 0:25
I'm excited.
Allie (Allie Howard) 0:26
And then just hit record. This is great. And like floated back to his chair.
Logan 0:28
Well, speaking of which, we're going to go right to our question because it's an amazing question. You don't want to talk? I don't want to talk to you, Allie. We've already talked about your swimming pool in your backyard. We've already talked about Banjo's party. We've covered all the basics.
Allie (Allie Howard) 0:39
As far as they know, that was two days ago. Oh.
Logan 0:41
I will say, no, I do want to talk about something. I'm sorry.
Allie (Allie Howard) 0:44
Nevermind. I don't want to talk. Let's go.
Logan 0:46
We just, I just, for those people that are out there that are trying to pay off debt that are like, I know I just got serious real quick, but I want to talk about this because my wife and I just had the chance this last week. We've been saving significantly and we just paid off another tranche of debt.
Allie (Allie Howard) 1:02
Let's go.
Logan 1:03
And it is the best feeling.
Allie (Allie Howard) 1:06
Did you celebrate?
Logan 1:07
We did celebrate. I just cooked a good meal at home, but it was just so nice. It's a very sweet moment to do it and high five and be like, yes, we did it. We paid something off. It's wonderful. I just want to encourage people out there that if you're doing that and you're trying diligently to pay off debt and it's a slog and it's taking time and it feels like, why are we doing all this budgeting and why are we tracking all our expenses all the time? It's so painful. Like you are going to get through it. You're going to do, you're going to get through it and it's going to be feeling so much better on the other end of it. So I just want to encourage people out there. I feel so encouraged.
Allie (Allie Howard) 1:43
There you go.
Logan 1:43
Hard pivot back.

What personal money wins do the hosts share to model financial behavior for kids?

Allie (Allie Howard) 1:44
Consider yourselves encouraged.
Logan 1:45
That's right. Cause we have a great question today. Let's take a pause for our sponsors. Check us out at diymoney.org. If you want to sign up for the DIY Daily newsletter that comes out, it talks about the markets, what's going on in the world. It's a great way to just catch up on today's action and what's happening in the stock market. I think Quint does a great job of explaining it on an easy to understand level. Also, send us those questions, podcast at diymoney.org. That's podcast at diymoney.org. If we use your question on the show, you'll get a $25 Amazon gift card. Let's get to our question today. Lynn.
Lynn (caller) 2:22
Hi, DIY Money. A couple questions for you. My husband and I would like to start teaching our young kids who are three and five about investing in the value and purpose of money. It's important for us to instill this knowledge beginning at a young age for them. And we recently bought stock as a gift for our oldest so he could begin learning about what it means to own stock. So my questions are, how do we expand on this from just owning stock to having them learn more about it throughout the years? What are some fundamental things we can do now to teach them about investing? And then lastly, are there any books you recommend about teaching children financial literacy?
Unknown 3:01
Oh, boy. Logan is going to love this one.
Logan 3:04
Oh, I love this question.
Allie (Allie Howard) 3:04
I don't want to steal your thunder. You go first.
Logan 3:06
No, no, no. You've been, like, jumping up and down. No, I'm going to save it because then I can fill in all the gaps. You go ahead. I love this question. Oh, you think there's going to be gaps? Well, hey. I don't know.
Allie (Allie Howard) 3:14
No, this is amazing. I don't have any... Maybe, Logan, maybe you do. I don't have any book recommendations in this regard. I do not have children of my own, so... I have not had a lot of experience teaching kids directly. The closest I have is my niece. And I would encourage you, you're already doing this, but for any listener out there, it really is kind of a start young and build up. So when I think about a three-year-old and a five-year-old, what I'm thinking about is how do I make this practical for them?

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