One of the most important tasks of parenting is to teach your child how to handle money well. (Because the Lord knows that the school doesn’t do that). Unfortunately, the stigma of talking about money, a bad political view on finances and capitalism, or simply ignorance, leads to many false teachings and bad habits regarding the management of individual finances.
With wrong attitudes and bad habits, people become too cavs with cash. Status symbol, fast woman, slow blow on horse.
But it’s not my child. Introducing “father’s bank” – Practice teaching your children personal funds, savings and investments. After an influx of generous gifts to children from family and friends for various milestones (we get right in those appreciation notes), I realized that children need boots for ground lessons on the virtues and the thoughtful pitfalls of personal finances, savings, spending, and debt.
Something big is covered. 529Ssavings accounts, their rooms, boards, groceries – and they will learn that too. I would like to spend $20 on a Barbie doll target right after opening the Hallmark card that it has in it.
It’s easy to get started. I deposit my money in my dad’s bank and make a small profit. It accumulates that savings and investment in muscles.
As they grow, we add new wrinkles. Overdraft fees, loans, certificates of deposits (CDS). Anything to avoid the Klarna genocide and make sure to pay later lenders.
The mechanic is simple enough. The time spent in the old-fashioned bankers has expanded.
Deposit rate
I will provide the kids with interest rates, make money with me and save it for rainy days. Every day, I ask if they want to keep some and I give them their interest to the balance.
Loan rate
I also want to give them a little extra cash. And here’s where the fun begins. If they have a loan, I will recoup a higher interest rate plus a little allowance.
Other ideas –
The key to success –
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Be tactile – I drop those interesting coins into their jars like a Reno slot machine paying for a jackpot
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Be consistent – it takes time for them to pick up lessons and value
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Instantly – Children don’t learn when they’re late
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Be sure to be solid – f*ck you: pay me.
Final Thoughts
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Do I benefit from my children? – yes.
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Do you enjoy handing over the 12 dollars you earned after cleaning your room, then quickly regaining your $3 and paying for that American girl doll loan? – Yes.
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Does it cause tantrums and tantrums for the first time you have zero balance or bankrupt? – Probably yes.
But will they start thinking about money more seriously, wisely, and in a more sophisticated way… I hope so.
Poetry
I was told I need to start a section of footnotes as I need to start referring to movies and GIFs.
Are you interested in joining the Trader Papa Podcast in 2025? Shoot the email! I want you to sit for discussion
thought? question? comment?
Reach out! Maybe I’ll post the full topic or as a Q&A
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