It’s very common that a child’s experience with money is the equivalent of winning tickets at an arcade; it’s a prized possession to spend immediately. On this episode, we discuss how kids can learn to be responsible money handlers at an early age by ultimately putting them in charge of their finances. Today’s guest Bill Dwight is the founder and CEO of FamZoo, an app that functions as a “virtual family bank”. The idea is to help parents and children understand the value of good money habits. The app provides an account login and prepaid card option so children are able to see what transactions have taken place and the funds they have available. Though parents have banking control of the account, children do benefit by tracking their expenses.
FamZoo is the start that a child needs to learn basic financial principles. Having the “money talk” early will help that child retain the important facts of money including spending, saving, and investing. The use of a system or tool that monitors their own money will surely get children excited enough to always want to succeed in superb money managing skills. Thus, building confidence in their ability to determine necessities from trivial items is important. Money decisions will get more complex as kids trail into college and then adulthood, but as long as they have a proper foundation of financial literacy, they will be able to navigate through the big stuff.
“Giving your child(ren) the responsibility of taking ownership of money is powerful for their decision-making skills.”
Today’s Love and Money idea:
What are the top 3 takeaways:
- Having an open conversation about money with your kids allows them to have an awareness on the subject and get comfortable with the process of managing their own finances.
- Using terms like “budgeting” offers a perspective that kids can understand about living within constraints and strategizing how to divide their funds into categories.
- If there is a space designated for financial transparency, kids will eventually be comfortable enough to talk about what they’re spending money on, and then down the line having that same comfort with their partner/spouse.
Paying for college keeps some parents up at night. In this weeks 5-Minute Activation, I get creative with how to pay for college. I give you three ways to pay for college beyond 529 plans and student loans. I also tell you a little about my personal journey of navigating paying for college. My parents made too much money for me to get grants but not enough money to save for my entire college tuition while sending me through private school. So my mom and I found a way.
FamilyFinanceFavs – Hundreds of quick tips to help parents give kids the financial education they’ll need to thrive in the real world.
Next Episode Preview:
The person with the most power in a relationship is the person with the most problems, that’s something I have said since I was a teenager. I noticed early in life that the “wounded one,” got the most attention. In honor of Mental Health Awareness month in our next episode we talk about the effects mental illness can have on a relationship. Whether it’s one of the partners or one of the children, the whole family is affected. Psychotherapist Suzanne Maiden, talks with me about what she has experienced over the last 20 plus years working with a variety of mental illnesses.
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