Who's the Best Person to Teach Your Child About Money?
By Alec Lindenauer, Chief Allowance Officer
I am not the best person to teach your child about money.
Teaching personal finance is serious business for me. I’ve been a financial advisor since 2005, and earned my CERTIFIED FINANCIAL PLANNER™ designation in 2008. It’s also personal, since my wife and I are raising two daughters who are well on their way to becoming financially literate, money savvy adults.
But I’m still not the best person to teach your child about money.
Who is?
How about your kid's school teacher?
Much has been made over the last few months regarding a number of state legislatures making financial literacy classes mandatory for high school graduation. Finally, after years of little action, as I type this at the end of Summer 2022, just over half of states require a personal finance course.
I love that progress is being made here. Truly ... it’s great.
Granted, if I were giving a grade like one of those high school teachers, I’d give our government a D-. They’re avoiding the F only because I can see improvement and a bit of effort. But hey, at least there is improvement.
But, even if you’re lucky enough to live in a state requiring a personal finance and/or an economics class, a school teacher is also not the best person to teach your child about money.
You know who is? The answer may shock you. Here’s a hint. It’s the same person who taught your child how to walk and talk.
That’s right.
It’s you.
You’re the single best person to teach your child about money.
You might think I’m nuts because you feel like you don’t know much about finance. Maybe you don’t know the difference between a stock and a bond. Or, maybe you’re an expert, but you feel like you just can’t distill what you know into something a 7-year-old would understand.
You’re wrong. I promise. Here’s why…
You’re the best person to teach your kid about money because you don’t need to be an expert. And, you don’t need to be a great teacher. All you need to do is to help your kid practice using money so they can get better at being mindful about spending, saving, investing and donating.
That’s it. OK, so maybe you need a tiny bit of help, but that’s okay! If you have a strategy, and the desire to be consistent, you’re all set. Here’s an example of what I mean…
Not too long ago, I was sneaker shopping with my daughter. She wanted sneakers that were $30 more than what I was willing to pay. I told her if she wanted the extra fancy pair of sneakers, she’d have to use her own money. She debated for a while, and finally decided to go for it. I helped her along, pointing out things she’d have to give up if she made the purchase. But, in the end, she made the decision independently. 
That might not sound like much, but it was a learning moment. She practiced the art of budgeting. It’s a skill I wish more of my clients had, but here she was… practicing it at 14. She was learning, yet again, the idea that money is not an unlimited resource. It’s something that warrants mindful decision making, and not something that should so easily pass through our fingers.
We have little moments like this all the time. That’s what makes me the absolute best teacher for her. For her. And for her sister… not for your child.
I’m the best teacher for my child, and you’re the best teacher for your child.
Those little moments over time are the key to raising a money savvy child. If you provide the right practice environment, your child will blossom like crazy.
Your kid’s teacher can’t compete with that, because they aren’t at the shoe store with you. They aren’t there when your child to uses their real money. You are.
If you provide a mindful allowance routine, allow your child to have ownership over their money, and then help them practice, you’re going to be amazed. I promise.
The two keys to raising a money savvy child are strategy and consistency. We can provide that strategy for you. We’re all over that, so don’t let that part scare you. I's pretty easy once you get started. It just takes commitment.
The same goes for consistency … you just need to commit. I’m happy to help you there too. Join us for Community COR Day. It’s the first Sunday of every month. Make that your allowance day.
If you’re having trouble keeping a weekly allowance day, as did I, switch to monthly! It’s the consistency you’re after… not the idea of doing it every seven days.
I’m here to help you, and I’m not going anywhere.
I am not the best person to teach your kid. You are, and I’m going to do my darndest to help you be amazing at it.
Teach cents-ibly,
Alec
