Tools to Make Financial Health Easy for Teenagers & Kids
THE BIG THING I WANT YOU TO KNOW:
Leaving the finance conversations for the “grown-ups” isn’t serving our kids or preparing them for lifetime financial success. We must include our kids when we’re talking about all things money — or better yet, there are great ways to start letting your teen manage their own bank account or debit card.
listen, my kids Don’T Look Like the products of a financial planner… I’m learning too.
My sons are 15, 13 and my daughter is 4 years old. Even though I’ve been living my best #DadLife for 15 years, I DO NOT have it figured out when it come to raising my kids and I fear am I failing them because I’m not providing all the valuable financial knowledge that I know they will need in just a couple of years.
I am lucky enough to have built such lasting relationships with many of my clients that I now meet with their children. How cool is that?!
I meet these young adults often fresh out of college, and I’m blown away that they have their heads in the game, they’re saving away money, they’re building emergency funds and getting after it. #Hustling #ParentingWins
…but sadly that’s the exception. And by and large, not true of my kids future as it stands today or most of the young adults I meet with… It’s far more often young adults I meet with don’t understand the basic principles of savings, budgets, earnings and living under your means.
Many young adults I meet with don’t know what rent could cost them.
PARENTS! I’ve spent some time researching good options to help prepare our kids for financial health because I don’t want my kids to fall into that same category of financial illiteracy that becomes reality with the first breathes of independence.
Because it takes a village, I’m sharing the best tools I’ve found that teach our kids about money.
We’re not doing our kids any favors by protecting them from the world of personal finance.
where’s the chapter in the book of parenting on teaching financial literacy?
I’ve done some honest to goodness reflection on how I become a better parent and how to train my kids to have a healthy relationship with money. And maybe I’m like you and we’re starting from scratch because our parents didn’t bestow any pearls of financial wisdom. Yup, it was all trial and error over here.
Why is this important to me and should be to you?
Well… I fell flat (BROKE) on my face the moment I left the house…
During my first few weeks at college, I fell victim to credit card debt. I was dazzled by the shiny plastic from the credit card companies that approved me on the spot for lines of credit. Thankfully, there are now laws that prevent credit card companies from posting up on college campuses and peddling their wares to financially illiterate 18-year-olds, but back in the day, it was a free for all.
Once I climbed out of the financial hole I created for myself, I vowed to never return to the depths of debt again. Having been there, it’s the last thing I want for my children.
Your child’s relationship with personal finance should be ESTABLISHED as early as possible. If you choose to work with us, or any other planner for that matter, please bring your kids into that conversation.
Here’s what I found worked for my family: shout out to capital one (100% not sponsored)
You could say that I have a storied relationship with big banks, but I’ve routinely been impressed with Capital One. The bank has a great app, solid customer service and financial products that meet pressing needs. [And just to be clear, this is not sponsored and I’m not being compensated to sing Capital One’s praises.] I’m simply a happy customer and concerned dad who found awesome financial tools to teach his kids the importance of financial literacy. Here’s what I’ve got and maybe it could be a good fit for your family… or a kid you know and want to help avoid painful money lessons:
We wanted our teenagers to have bank accounts
Capital One has an online bank account specially designed for 13 to 17 years olds with NO FEES and NO OVERDRAFTS ALLOWED!
In the past, my kids have had checking accounts with a big bank that will remain nameless. Due to red tape and ease of access, my wife and I made the decision to shutter the accounts. Capital One’s teen account solves every pain point I experienced with the old account.
we wanted our near-entering college teen to establish credit
Once approved with the CapitalOne Mastercard, you put down money as a (refundable) deposit and based on your income (income here is clutch) you’ll receive a line of credit. After you make five on-time payments, your credit limit will begin to inch up. Unlike the majority of credit cards that get mistaken for free money, there is actual money (your money!) on the line with this one.
We will (eventually) want our college student who (hopefully) has already established credit and a favorable credit score (talking 630+) to get rewards and grow their wealth.
The Capital One Journey Student Credit Card allows your kid to receive cash back and have a $0 annual fee.
The goal of my parenting is that when my kids leave the house and set forth, they are able to take care of themselves.
Call me crazy!
Listen to the show next week to be sure I follow up with what I’m finding to be some good solutions both now and in the future for our family, but I plan to move forward with Capital One this week to begin to train our boys about their finances in a safe and healthy way.
help your kids build THEIR future with a “financial learner’s permits”
My oldest son recently got his learner’s permit and parents whose kids are also behind the wheel would agree that it’s an interesting time.
If you ask my son, he’ll communicate that his frustrations stem from the boundaries his mom and I impose on him, and he'll likely say that we’re trying to make his life more challenging. So. Much. Angst. But we explain that the boundaries are to set him up for independence. Part of our master plan is to slowly become more flexible with the boundaries as college approaches with the hope that by then he’ll have the wherewithal to know when it’s time for bed, time to study (ahem!) and ways to responsibly spend his money.
That’s pretty much our philosophy at Dynamic Money! And what we’re going to implement in our home.
If you feel at times more like the child than the parent when it comes to financial literacy — that’s okay. THERE’S NO JUDGEMENT HERE. No matter where you are in life, we’ll kick things off with a free conversation for you, your children, or even your grandchildren. We’ll be a little hands on at first to help you, but once we see that you’re crushing it and on your way to your financial goals, we’ll loosen the reins. We can’t wait to set you and your entire family up for financial freedom.
BONUS: I also COMPLETELY love NerdWallet as a repository of great reviews for credit cards and insurance products. NerdWallet is a great resource for SO MANY things regarding your and other family member’s best financial decisions for credit cards, banking, investing, and pretty much all things money.
Imparting a healthy relationship with your kids about effective spending, budgeting and building credit will serve them for life. make a plan to begin training them up.
How are you teaching your children about money?