Isn't That Rich Podcast

Just like we teach our little ones the importance of brushing their teeth, styling their hair, and lacing up their shoes, it’s equally vital to equip them with financial know-how—something they'll use every day, from managing expenses to planning budgets. Kids are like sponges, absorbing information as they grow, and the way we introduce financial concepts can profoundly shape their future financial habits. Lucky for us, it’s easier than it sounds. 

Educating through our daily habits 

Let’s start by thinking about how our finances play out in our daily, weekly, monthly, and annual routines. Every day, we head off to work, putting in those 40 hours a week to bring home the bacon (or avocado toast, if you prefer)—and it’s not just about the grind; it’s about why we do it. It’s about showing our little ones that our work translates into the cozy home, the fun adventures, and the shared moments that make up our lives together. 

And then there are those daily expenses—like grabbing lunch or dinner out. These are perfect opportunities to give our kids a glimpse into the world of payments and tipping. Whip out that receipt, walk them through how it all works, and maybe even let them decide on the tip (within reason, of course). 

Moving on to our weekly must-haves, things like gas and groceries—oh, the groceries, a weekly adventure in themselves! Here’s where we get to show our mini money managers the ropes. Compare two cans of soup with them, chat about why we’re picking one over the other (brand loyalty, anyone?), and maybe even throw in a lesson on how scoring deals with coupon apps can feel like winning the lottery. 

Now, lastly, let’s talk about those annual financial duties like everyone’s favorite, taxes. When Jill was young, her mom would gather tax documents every year. Jill didn’t fully grasp what they were for at the time, but she remembered the serious tone her mom took while organizing them. It wasn’t until she was older that Jill realized the significance of tax season. Now, as an adult, she understands the importance of budgeting for both monthly expenses—like rent, utilities, and groceries—and annual expenses—such as taxes and insurance premiums. These experiences have shaped her approach to money management, showing her that financial responsibility isn’t just about the day-to-day, but also about planning for the future. 

How you speak about money matters 

You’ve probably heard this a time or two ‘what you say matters’. We think this statement is especially true when it comes to saying anything about finances, good or bad. Like we said earlier, kids are like sponges and parrots, soaking up every word you say and most likely repeating and retaining it. Let’s break down some opportunities you have to speak positively about finances: 

1. Bring your kids into financial discussions you're comfortable having with them and that are light enough for them to comprehend. Maybe you want to save $100 a month for a family vacation. Talk to them about how you will make this come true by saying “Every Friday, when we get paid, we are going to automatically transfer $25 from our bank account to our vacation savings account.”. This example teaches tangibility, possibility, and the realities of how to make a goal come to life.  

2. Saving for a vacation is super fun and can get everyone excited, but what about something less fun, like debt? How can you possibly feel like speaking positively to your kids about debt, as it feels like another one of life's burdens? It is possible and not only is it possible, but it could really impact the way you and your kids understand and manage debt, and that, friend, is something seriously lacking in our world today. Talk about what debt is, how you are currently using it (good or bad like a mortgage vs. lingering student debt), the importance of paying something back on time, and your plan for getting out of it. 

3. Conversations are a two-way street and when it comes to talking about money, it’s nice to give your kids the reins on the conversation and let them talk openly about what money is and how they think they should use it. Allowing them to ask questions about finances, especially the ones that are about your family’s real financial situation (i.e., debt, vacation, medical bills, groceries) can help them blossom in their knowledge and comfortability around the topic of money. 

Involving kids in Large Financial Decisions 

We’ve talked about involving children in our daily, weekly, monthly, and annual decisions, but there is so much to be said about involving kids in those larger decisions like buying a new home, car, applying for the right credit card, or even moving to a new financial institution. You know the thought and time that goes behind decisions like these, and that right there is a perfect opportunity to teach your young ones (or teenagers) about the impact these decisions can have on one’s finances.  

Ashley remembers being in high school and having a debit card but never actually went to the bank to open the account it was attached to. She wishes she could have experienced going to the bank, hearing her account options, and learning how to use the account and the 'plastic card,' as she calls it, appropriately. This is a moment that could have been used to impact her financial knowledge. Now, you can learn from it and plan to take your kids along for the ride for financial decisions! 

Allowances are still a thing! 

Incorporating allowances into your child's routine isn't just about pocket money—it's a strategic move to instill lifelong financial habits. By giving children a fixed amount regularly, they begin to grasp the concept of budgeting, saving, and spending responsibly. 

Studies show that children who manage their own money through allowances develop a greater sense of financial responsibility. They learn the value of hard work, delayed gratification, and setting achievable goals—all essential skills for navigating the complexities of adulthood. 

By introducing allowances, we empower our young ones to make real-life financial decisions in a safe environment. They learn the art of decision-making, weighing choices between that new toy or saving for something bigger. 

Take your children to the bank 

We love to laugh at all of Ashley’s stories about not understanding the first thing about banking. Whether it’s her over drafting on her ‘plastic card’ at Subway when she was 16 or being intimidated by how to send a drive-thru tube, she’ll be the first to tell you exposure to a bank is one of the best things you can do to learn about finances. One thing we pride ourselves on at Farmers State Bank is our passion for financial literacy. It’s not just about the big stuff though like investing or borrowing money, it really is the small things like how to properly use your debit card, write a check, make a budget, or login to your online banking.   

Financial knowledge and health is possible 

In all these ways, we weave financial education into the fabric of our daily lives, ensuring that our children grow into savvy money-managers ready to tackle whatever financial challenges come their way. With a little guidance and a lot of everyday lessons, we set them on the path to financial empowerment and security. 

We’ve gone through many ways you can teach your kids about finances, but it doesn’t stop with the kids. Know that wherever you are on your own financial journey is important too. We weren't born knowing anything about money, it’s something that must be learned. So, in the same way that you want your kids to be financially savvy, you should strive to be that yourself, one lesson at a time. The better you become with your finances, the better your children will become too. Just by reading this blog you are probably more aware of how you’re using and speaking about your finances and that, dear friend, is something to pat yourself on the back for!