Podcast: Teaching Your Kids About Personal Finance

Do you have a not-so-rosy financial history and are worried that youâ€™re going to pass on your bad money habits to your kids? My guest today says you neednâ€™t worry. With a bit of thought and some self-education, you can clean up your own money problems while simultaneously teaching your children how to avoid the same mistakes youâ€™ve made. Her name is Beth Kobliner. Sheâ€™s the author of one my favorite personal finance books, Get a Financial Life, and in her latest book, Make Your Kid a Money Genius (Even If You’re Not), she shares research-backed advice on how to teach your kids the principles of sound personal finance.

Beth shares the research on the age at which most kids develop the money habits theyâ€™ll have for the rest of their life (itâ€™s surprisingly young) and provides some basic guidelines on what you should and should not talk about with your children when it comes to money. We then dig into specific tactics on teaching your kids — whether theyâ€™re in preschool or college — about saving, work, insurance, and debt.

Even if you donâ€™t have kids, youâ€™re going to find some useful reminders in this podcast about getting your financial life in order. For those of you thinking about getting married soon, Beth shares some fascinating research on how the amount you spend on the engagement ring and wedding ceremony correlates with marital success and happiness. It will definitely provide some conversation fodder to discuss with your significant other.

Show Highlights

How is it possible to make your kid a money genius even if you aren’t?
Why you need to set aside your financial baggage
The age at which kids start understanding financial concepts
Why it’s so important to teach even very young kids about money
Getting over the awkwardness of money talks with kids
Are there any topics to avoid when talking about money?
Why you shouldn’t lie to kids about money – “I don’t have any money to buy you that toy”
Should you give your kids an allowance?
Why you shouldn’t tie allowance to chores
When to introduce banking and savings accounts to your kids
Some guidelines for teenagers and jobs
Talking to your kids about debt, insurance, investing, etc.
Wedding stuff – how to much spend on a ring, the wedding, etc.
What are some small changes adults can make in their financial life that will provide the most benefit

Resources/People/Articles Mentioned in Podcast

Make your kid a money genius book cover by Beth Bobliner.

Beth is my all-time favorite personal finance writer. She does a masterful job distilling complex and often boring topics into easy-to-understand and engaging prose. I highly recommend picking a copy of Get a Financial Life, and if you have kids, Make Your Kid a Money Genius is a great companion piece.