Financial Legos

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Quote

"The person who doesn't know where his next dollar is coming from usually doesn't know where his last dollar went." -- Unknown

Financial Legos

A few weeks ago I posted a tweet asking people to comment on what they believe is the best method to teach kids personal finance. It was seen by over 88k thousand eyeballs and resulted in 250 replies (yes I read them all).

With these answers, you’ll be able to help 10-year-olds scout out their mortgage rate, hit that 800 credit score, and have their backdoor Roth IRA ready to roll.

I’m kidding, we aren’t that serious around here.

While I don’t have kids yet (wipes sweat), it’s still interesting to see how people have chosen to educate the next generation on the basics of finance.

Below we are going to cover the five best answers, and a few…uh…not so great ones.

Let’s get into it 👇️ 

Gamification

For whatever reason I missed the Monopoly train growing up. In the comments, it was brought up multiple different times as a great way to introduce kids to the world of finance.

It’s also fair to relate these answers to all those who suggested using a “gamified” approach. Making finance fun lets kids stay interested, just make sure to keep the focus on the game and not the yield on cost for each of those Monopoly apartments.

Mini Rewards

This one could be used in a number of different ways, with varying amounts, expanded timelines, etc. Especially if your kids do weekly chores or earn an allowance, rewarding them for saving a portion helps to flex the “delayed gratification” muscle.

To The Wolves

This one might be too harsh on the surface, but by the end of the tweet, it sounds like William’s kids are already picking up on the importance of saving.

More importantly, this puts an emphasis on working. The part about only earning money for chores that are not part of the regular chore list is an interesting touch.

Tiny Business

Arguably one of the better ones on here but I am biased. Your boy was a mowing legend growing up. Starting any tiny business will allow kids to learn a number of “mini-lessons” as ResilientREI mentioned below.

The Learning Loan

Some might sniff and think that giving a kid money doesn’t help the long-term habit of saving or investing. Though for those who are finding it hard to get their kid to start because money is tight or they don’t understand it, providing a small amount to jump-start their career could prove worth it.

This money would allow them to try different strategies, and make mistakes that don’t scare them away from investing.

Look In A Mirror

Arguably the most important on this list.

Uh..Other Answers

If all else fails, there is still one last way to save your finances.