#041 What advice do you have for parents trying to raise their kids to have financial freedom?
That’s the question Eric asked some of our guests from past episodes of Raising Financial Freedom. In this episode, you’ll hear their top tips and pieces of advice for parents on teaching their kids about finances, financial literacy, and life in general.
Our guests offer a lot of wisdom on raising kids to be financially independent… but almost every one of them emphasizes the importance of communication in teaching kids about financial literacy, nurturing their independence in decision-making, and making it fun to learn about money.
Listen in to learn the best ways to bring financial freedom and literacy into your home and how to start doing so today.
If you enjoyed this podcast or think a loved one would benefit from it, we invite you to SHARE it with a friend & RATE/REVIEW it on iTunes, Apple Podcasts, or wherever you’re tuning in from!
THANK YOU for a fantastic 1 YEAR of Raising Financial Freedom! Stay tuned for more episodes coming your way!
Episode Timeline: What You’ll Learn & Questions Answered
00:00 – Intro: How do you raise financial freedom in kids?
02:02 – Sabrina Constantine: Teaching kids about finances, giving your kids a voice in decision-making, and reducing fear around money.
05:00 – Chelsea Robberson: Normalizing conversations about money, follow your kids’ interests, and having resources available for your kids to explore and learn on their own.
10:21 – Jacqueline Collins Prester: Talking to your children about finances at a young age and building a number sense through games and activities.
13:36 – Nick Loper: Being the CEO of your own home, tracking your profitability and net worth, and always running “tests” to see if things are working.
17:57 – Tod Christensen: Being open with your kids when they ask questions about money, expressing financial priorities instead of denying their wants, and playing financial games with your children. Bonus: Asking your kids their thoughts on the commercials that come on the TV.
18:15 – Thank you for an amazing YEAR of Raising Financial Freedom! & How to help us keep growing
Listen to the episodes mentioned & Learn more about our guests:
- Sabrina MJ Constantin -Episode 003-https://www.buzzsprout.com/1288991/6231079
- Chelsea Robberson -Episode 005- https://www.buzzsprout.com/1288991/6320194
- Jacqueline Collins -Episode 017- https://www.buzzsprout.com/1288991/7667245
- Nick Loper - Episode 018 -https://www.buzzsprout.com/1288991/7798882
- Todd Christensen -Episode 025 - https://www.buzzsprout.com/1288991/8353347
[00:00:00] Eric: We are back. So welcome back. I know this is the holiday weekend and everyone is out and about visiting family and friends, because this is the time of eating, drinking, and getting reacquainted with old family members, which you haven't seen in a long time. So on that note, I wanted to revisit an ax, a couple of past guests that we had.
[00:00:24] What are the three jewels of advice you can give to parents when trying to raise financial freedom? Hopefully the advice they give can help you with your kids and trying to teach them financial literacy or in life general. Because some of the advice that was given is not necessarily have to do anything with money, but there was definitely some gems.
[00:00:45] So let's get right into it. I know everyone had a full weekend, a full relaxing weekend and just want to get right into the show. So let's get this started in,
[00:00:56] Host daughter: come on, dad,
[00:00:57] playing around and play the
[00:01:06] Introducer: Have you ever wondered why some people seem to have it all financially do well off parents simply hand their children money or is there more to this welfare? Welcome to raising financial freedom. The park. We are here to talk about everything you never knew to teach your children when it comes to starting their financial future, the principles behind wealth and methods that are out there to teach your child about personal financial freedom.
[00:01:29] There was no real trick to earning other than money. We are here to discuss, teach and grow with you. Raising financial freedom, the podcast with your host and concern pair. Eric yard. Let us get right into today's show.
[00:01:50] Eric: my very first guest was episode three with Sabrina Constantine. I will always remember Sabrina because of course he was my first guest and she's coming out of [00:02:00] Australia and it just showed me that this problem is a problem that is just basically all over the world. So here she is given her three jewels of advice on raising financial.
[00:02:12] Sabrina MJ Constantin: Children learn by example. So, so we should be setting those good examples. So, um, I'll say. And that means, including them in some bills, pain is one of them that some, one of the things that I do with my girls, um, like I said, it'd be, I think one of the things I do with my girls is my oldest. She puts some money towards her own phone and gets to see with what the bills are like what's happening.
[00:02:41] So that's at least that's. For the next few years, she's 16 and also, you know, not being scared. One of the things is don't you be not to be scared of talking about money in front of the kids. I find that, I mean, it's not a taboo. It's something that your kids need to learn. So being honest with the kids, you know, not to [00:03:00] hide anything from them, like when you, when someone can't afford something, let those kids know, um, have a talk to them.
[00:03:06] You'll be amazed as to, as to how they will react and their understanding and their competence. You know how things are and giving, giving them a voice. I find that when I give my children a voice in the decision making, they feel, they feel proud. They're proud of that, that they they're given that chance to do so.
[00:03:24] So discussing things with them rather than treating them like, you know, they're just members without just, yeah. Give them. And you're in the decision-making, it's, it's very important for them. Cause it consider dynamics. It can see how things are going. We tend to also do a round table sometimes, um, that we discuss things.
[00:03:42] So we'll go sit down and have a chat and go into that
[00:03:46] Eric: round table.
[00:03:47] Chelsea Robberson: It does actually, we have watched a few segments,
[00:03:50] Sabrina MJ Constantin: but to be honest with you, it does work. And it works on all aspects, not just the, you know, the money and the financial side of [00:04:00] things. We, when we disagree on things, we'll sit down and we'll discuss things.
[00:04:04] It's taken us a lot, sort of, of a long time to get to that point, especially with the kids, right. It's all trial and error to see what works for you sort of thing.
[00:04:16] Eric: Once again, that was a Brina from of very first interview back in November of last year. So it's November of this year now, and that officially makes it a year since we've been podcast.
[00:04:29] I didn't want to make too much of it. Cause we plan to be given you this content for years to come, but yet it's been a year, so we'll take a round of applause for
[00:04:38] Introducer: that.
[00:04:44] Eric: okay. That's it. Our guests from episode number five, Chelsea Robeson was definitely a good guest that we had, and she definitely had her own take on what she felt about raising children financially [00:05:00] free, where you start and how can you improve on that?
[00:05:05] Introducer: One
[00:05:05] Chelsea Robberson: is make it a part of your regular money. It already a part in our day, every day, you know, whether we like it or not.
[00:05:13] So don't make it this miserable thing. Just make it a part of homes. And if they ask questions about money, talk about money, I think that's what it is. And that's what I see have the most impact on my girls is just having the conversation and regular conversation with them. If fearful about money, I want to talk with them about it.
[00:05:31] Or if they're concerned me won't have enough money. Right. I want to talk with them about it instead of just saying everything's signed and worry about, and I don't know all of these Archangel live. Right. But I want them to understand it. And that's, I think they'll cover with it that they can have a healthy.
[00:05:47] Okay. I think another, another one would be following their interests in English. It comes to finances or need, if it seems silly, right? My, my daughter's love wrote loss. [00:06:00] And in roadblocks you have, I guess, robust and you can send them on things inside of the stores or whatever, things like that. I think you can buy ones with actual money, or you can have some, as I've made that, I guess.
[00:06:13] Not actual actually. And so they're really interested in that. So we use that as an opportunity for conversation and, you know, because they are, they're so interested in robots, so they may not really be interested in real money at the time. And so we use that as an opportunity for conversation. So again, I think it goes back to using their interests as an opportunity for conversation and not, not, not writing it off because it's just the concept overall.
[00:06:43] Yeah, the real money concepts. And I think the third one would be having resources available for them to explore and learn on their own. Um, and that can look like major things like for my daughter with a debit card. I mean, I manage it, but she has, she [00:07:00] can, if she wants, go onto Amazon, my computer. Yeah.
[00:07:04] We're $5. She got a microphone for her, right. It means that she gets to kind of explore what that feels like. What's that looks like. So she had that resource of shine and then she also has, you know, we have some books on money and so their kids books, and she likes to go in those in sport and read them.
[00:07:21] And so I think having resources for them to research and explore on our own so that they can have some ownership of it is also a really helpful.
[00:07:33] Eric: Sorry. She has a YouTube channel.
[00:07:36] Introducer: Oh yes.
[00:07:36] Chelsea Robberson: She has a YouTube channel. She does. She, um, she doesn't use like her face or her name. Those are her rules. So she has to have an alias and they can't be at her face, but, um, you know, she loves to watch people's YouTube channel and then figure out different things that she can try.
[00:07:55] Yeah, she's obsessed with the metrics.
[00:08:07] Introducer: Yeah.
[00:08:08] Chelsea Robberson: I love it. I mean, if she comes to me and says, I want to try this and I, my response is, you know, how are we going to make sure it's safe? What are your next slides? And, you know, how are you going to maintain it?
[00:08:20] And so she can come up with the craziest ideas, but as long as she can support it, then, you know, no one's going to get hurt. Then I'm usually in support of it. So she's done some pretty interesting things and some of them last and some of them don't, but.
[00:08:37] Eric: So she understands that YouTube can also be another source of income.
[00:08:42] Chelsea Robberson: Yeah. Well, we talk about all those pieces because that's a whole different topic, but just briefly, we, um, I technology isn't going anywhere and it's a tool, social media and all those types of things. And while there's a lot, Danger. If you will, inside of them, they're not going [00:09:00] anywhere. They're a part of our case life.
[00:09:01] So instead of just healing them from all of it and saying, this is bad as that as that, I want her to be able to save money, to be able to kind of explore it and understand it and be introduced to it. So it's not just this big, scary thing that one day at 16, they get a phone and then suddenly they've asked us.
[00:09:22] How to manage and fills me information. I just, I wrote a article the other day for friends and, um, I was reading this book, um, called the organized mind and it was saying me intake, something like 170 plus. Newspapers day to filter that and our kids do right. So why wouldn't we allow them the opportunity to try and understand it and filter it.
[00:09:49] That's a different topic, but that's what kind of led to the,
[00:09:57] Eric: so as you can see, communication is a common [00:10:00] thread here and is very big when teaching your child financial literacy, you have to talk to them and you have to include. Our next guest is from episode 17, Jacqueline Collins. Prestor C is a teacher in Massachusetts who is teaching financial literacy on a daily basis.
[00:10:18] So getting her advice was definitely a blessing. And here she is.
[00:10:27] Jacqueline Collins Prester: The first one would be to talk to your kids at an early age about money, make sure that you are giving them everything you can about all different types of money scenarios. They're paying attention, whether you know it or not. And I will give you a funny little story about my son. Um, he pays attention to everything regardless of.
[00:10:51] I think, I mean, talking to him or he's, I'm talking to someone else one day I was emptying the dishwasher and all of a sudden he turned to [00:11:00] me and he looked and he said, mama, how am I going to pay for college? And I said, well, bud, you know, you still have eight years. You're only 10. This was last year. And.
[00:11:11] I said you're only 10. You still have eight years to go before you start college. He goes, no, I am 10 years old. I am going next year. And I say, you know, you don't start college when you're 11, you, you know, you still have some time and we're working with. Things and their scholarships and grants and whatnot.
[00:11:29] And he goes, no, mama. There are plenty of 11 year old kids in college. And I I'm looking at him thinking, I don't know where he's going with this. I said, well, you know, name one. And he just put his hands on his hips and he goes, Sheldon Cooper. Sheldon Cooper. And the big bang theory was in college when he was 11 years old.
[00:11:49] And so that is his frame of reference is that, you know, he was going to start college this year and he was worried about how he was going to pay for it because he hears me talking about the importance [00:12:00] of saving for the future and being financially literate. So, um, he's been paying attention. You know, I'm teaching remotely or I'm
[00:12:11] Chelsea Robberson: planning lessons.
[00:12:12] Jacqueline Collins Prester: So talk to your students at a young age because they really do pay attention. So the second one I would say is to build a number sense. When you talk about money, it's so abstract for students. Especially the younger students. And when you really want to start building, um, understanding about money at a young age, uh, they say that students can understand financial concepts, very limited, but starting around age three.
[00:12:40] And if you can build number sense with students at a young age, they will understand money even easier. At that young age. So building number sense with them is really important with my own child. I played a lot of games with him, with dice and with cards. So comparing [00:13:00] numbers to each other was really good.
[00:13:01] Um, anything you can do with, with your own child to. Build that number sense at a younger age, it kind of segues really well into money. So coins, dice, and cards I think are really good things to do with your, with your children at a young age, to, to help them understand dollars. It's just an easy way to, to equate those numbers to each other.
[00:13:24] Eric: Our next guest is a popular podcast host from the side hustle show, Nick Loper. And it was a pleasure having him on episode 18. So check them out on that episode, but he had a very unique view when we asked him that same question, check it out.
[00:13:43] Nick Loper: And number one, I think is to think like a CEO and be the CEO of your own house.
[00:13:50] Yeah. What I mean by that is, you know, you're going to be responsible for your personal profitability. Here's an example, right? So let's say the family makes [00:14:00] 50 grand a year and they spend. 49,000 that, you know, they're not going to get ahead. There's no margin in their lives, right. So you have to mind both the expense side and the, and the income side there, but guarding that personal profitability and like being aware of it, tracking it, I think is huge.
[00:14:19] Number two. So that's kind of like, Monthly snapshot type of thing. And you could do this on an annual basis, but just, you know, trying to keep track of expenses over the course of a whole year. It's a little bit more, a little bit more difficult, but like you have an honest look at the expenses, see where you're at, uh, in, in terms of profitability and for the sake of reference, I want to say something like 5% is the national average savings rate that went up by the way, during COVID, which was kind of surprising, but it's like, well, Buy plane tickets.
[00:14:48] We're not going out to eat. You know, there's a lot of stuff we're not spending money on. Um, but historically for the last several years, national average 5% savings rate. If you make a hundred grand as a family, you have $5,000 left over. I would [00:15:00] challenge you to try and do better than that. The more profitable you can be.
[00:15:05] Just financial breathing room you have in your days, it's a less stressful existence. Uh, the second thing to track here is net worth. So if the monthly personal profitability metric is kind of like that, a snapshot in time, the net worth is. You know, long that's like keeping score on a, on a longer-term scale.
[00:15:26] And the goal of the game in the net worth arena is to accumulate 25, 30 times annual expenses. And then you're, and then you're free like financial freedom in terms of, you know, the fire movement and all that jazz. And then there's, you can short cut that. You know, by building business assets and real estate assets and stuff like that.
[00:15:45] So those would be number one and two. The third Juul is just this call to always be testing, you know, testing in business, testing in life. Just, um, I, I read somewhere some. That at any given time, Amazon is running a [00:16:00] thousand different tests on their websites from, you know, the position of a button to the color of a link to, you know, how this information is displayed on a page.
[00:16:10] And that's how they become the best. Even though, you know, it's, he's stacking up these incremental gains. And I think you can apply the same mentality, maybe not to the extreme that Amazon does in your own life. What would happen if I got up at five? What would happen if I wrote 500 words a day, what happens if I committed to making a YouTube video every day, what would happen if I went and put flyers around the neighborhood, advertising my service, like just trying to test out these different things and see if that moves the needle for you.
[00:16:40] Those would be three, three Jew, hopefully jewels, maybe three of the ones of call, uh, to, uh, to go about their path to financial
[00:16:49] Eric: freedom. Thank you, Nick. Those were some strong jewels of advice there. Our last guest who contributed to this episode is Todd Christensen from [00:17:00] episode 25. He is from money fit.org, and he gave some good wholesome advice on how to raise financial freedom.
[00:17:10] Let's hear what he's got to say.
[00:17:13] Todd Christensen: All right. Stay open, be open with your kids. When they ask about money too, when they ask you. Can I have this candy? Can you buy this for me? Instead of saying we don't have money for that instead say that's not a priority for us right now. And then three do play financial games with them.
[00:17:34] There are games out there and kids love learning by games. So play games with them and be open and ready to ask questions. And I'll give you last. My bonus and quick answer is when you are sitting, watching TV with your, uh, with your kids and a commercial comes on, just turn it off. What do you think they're trying to say by this commercial, do you think they're trying to say where we will be happier if we drink that drink or if we eat [00:18:00] that food or if we wear those clothes, help them learn to differentiate between truth and advertising
[00:18:07] Eric: food for thought food, for thought like that.
[00:18:12] So now it has been a year. And that was just a small portion of guests that have been on the show. We would like to thank all the guests that have contributed to all the great content that we've been able to publish on this show. And once again, we will dislike our fans, our followers, our listeners, to.
[00:18:32] Share with other people, tell people about the show through the social and email and leave a review wherever you can on any podcast player or apple or Castbox whatever, but mainly sharing and letting other parents know about their show really helps us to grow. And we've experienced growth through this whole year, which we've been pumping.
[00:19:00] Introducer: We really hope you enjoy this episode of financial freedom. The podcast stay connected with us directly through raising financial freedom.com. You can also join the discussion on social media, which you can also find links on our website. If you would like to speak with us, please send us an email to firstname.lastname@example.org.
[00:19:20] And as always thank you for pushing your mindset towards a better reality. This concludes the most thought provoking portion of your day. Don't forget to please like, and subscribe to stay fully up to date until next time. Be kind to yourself and each other. .