Financial Legos

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

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 👇

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.

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.

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.

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.

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.

Arguably the most important on this list.

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

Your kid tortures you with cartoon jingles, you torture them with financial podcasts. Simple trade-off.

One could debate for hours the details of teaching kids about finance. Different methods, what age to start, who is responsible, etc.

What we can all agree on is that at some point it is important to teach the up-and-coming how to handle their dollars (in a fun way).

Hopefully, there was an idea or two to take away from this piece. Or maybe you thought each of these answers was terrible. Send me a reply on what has worked best from your experience.

Let’s make these kids rich. ~ Cade

Cade's Finds

How Taxes Work (Wine Edition) - Have you ever seen wine used to explain our tax system? Wait no longer, here is a cool tweet that uses wine glasses to explain the progressive tax system.

Financial Advisors React - Short video of the Money Guy Podcast reacting to Caleb Hammer roasting people’s finances. If you think you are bad with money, this will probably make you feel better about yourself.

Ultimate dad tweet right here.

Nothing in this email is intended to serve as financial advice. Do your own research. Thanks for reading, if you have any questions, comments, suggestions, etc. about the email don’t hesitate to send me a reply!