Robin Taub is a Chartered Professional Accountant by training, a professional speaker, and the author of The Wisest Investment: Teaching Your Kids to Be Responsible, Independent and Money-Smart for Life. On this episode of CFO at Home, Robin and Vince discuss challenges for parents in educating their kids about money, having age appropriate conversations with kids about money, the importance of being a good financial role model for your kids, and more.
Key Takeaways
- Challenges for parents when it comes to educating their children about money
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- Lack of Knowledge
- Lack of Time
- Lack of Opportunity - Finding teachable moments in a natural, organic way
- Feeling like you're not good with money
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- In order to be a good role model you have to gain control over your finances
- Having age appropriate conversations with your kids about family finances focused on the "5 Pillars of Money" (Earn, Save, Spend, Share, Invest) can be helpful in getting them to see beyond their own needs and wants. Concepts that are relatable and taking place in their world. Examples:
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- Pre-teens - Spending, managing an Allowance
- High Schoolers - First Car, College costs and how they relate to family finances
- Give kids the opportunity to make money mistakes when the stakes are low (education with "training wheels" or "bumpers")
- The introduction to earning their own money is pivotal in their financial education
- Teaching kids to balance spending and saving is a big challenge in part due to influences like Social Media that encourage consumption
- Our minds automatically make "upward social comparisons" (compare ourselves less favorably to those who have more), but resist doing the opposite, which makes it important for parents to model gratitude for their children
- Using your personal values to help guide financial decisions helps to internalize a valuable decision making process about money in your kids
- Focus on helping your kids develop good money habits while they are young. Much easier to develop good money habits early than to re-learn them later
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- Knowing your cash flow
- Living within your means
- Paying yourself first
- Having an emergency fund
- Having adequate insurance
- Knowing how to delay gratification
Resources
Ways to contact/follow:
Contact the Host - vince@thecfoathome.com
