Ep 82: How to Talk with Your Kids about Money

The last three weeks have been kind of tumultuous in the Foreman household. And kind of like the last two years, we have had our lovely girls home with us. And although times have been up and down in the household with lots of iPad time, lots of TV time and lots of online learning, we thought it would be fun as an element of learning, for the girls to join us on an episode of The Thrive For[e]ward podcast. I have heard from clients and just individuals ask how to start a conversation with their kids about money. What are the things that are important? And so I gave the microphone over to my kids today to ask me questions about my job, questions about money, and questions about what does money means to them? And what should they be doing with their money when it comes to buying, spending, saving, giving, and investing? What do all those things mean to a seven and eight-year-old? So if you have children and or grandchildren that you're looking to expand this conversation with, today's episode is a great one to tune into.

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Securities offered through LPL Financial, a member of FINRA/SIPC. Advisory services offered through Advisors' Pride, a SEC registered investment advisor. LPL Financial, Advisors' Pride, Forethought Planning and the guests of Thrive For[e]ward podcast are separate and unaffiliated parties. Lisa Harris and Lisa Harris & Co are not affiliated with Forethought Planning, Advisor's Pride, or LPL Financial. The views expressed here are those of the participants, and not those of Forethought Planning, Advisor's Pride, or LPL financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. LPL Financial and Forethought Planning do not offer legal services.   

Transcript

0:00  
Hello friends and welcome to the Thrive Forward podcast. The last three weeks have been kind of tumultuous in the form and family household as many. And kind of like the last two years, we have had our lovely girls home with us. And although times have been up and down in the household with lots of iPad time, lots of TV time and lots of online learning, we thought it would be fun as an element of learning for the girls to join us on an episode of The Thrive Forward podcast. I have heard lots of times from clients and just individuals in general that I talk to, how do we talk to our kids about money? What are the things that are important? And so I gave the microphone over to my kids today to ask me questions about my job questions about money, questions about what does money mean to them? And what should they be doing with their money that they want to consider buying, spending, saving, giving, investing? What do all those things mean to a seven and eight year old. So if you have children and or grandchildren that you're looking to expand this conversation with them, today's episode is a great one to tune into. Now, let's dive in. Well, hello there friends, I have a special guest on today's episode of The Thrive Forward podcast. And if you're listening, and you're not watching on YouTube, well, my oldest daughter Juliana is joining us today. Do you want to say hi to everybody. So we are in week three of distance learning and I thought it would be a great opportunity for us to record an episode together, where she got to ask me questions about money. So the roles are going to be a little reverse today, she is going to ask me questions while I give you all some answers. And this might be a great opportunity for you to understand how to talk to your kids about money. So what's the first question you have for me today? Joe?

2:16  
How does money work?

2:18  
How does money work? Money can work in lots of different ways. What are a couple of different ways that we talk about how money works?

2:29  
And save, spend. Invest and get.

2:35  
Yeah, where do you learn that from?

2:37  
And sometimes, we give books away and I feel sometimes we the three

2:48  
before money bears for? Yeah, yeah. Mr. Mac? Yes. So money works in lots of different ways, right? So is something that we get for doing different things like mommy and daddy work, in adults have jobs. Now I had my first job when I was 13 years old. And I've never not had a job since I was 13 years old. So that's a long time of working. And when you work, you get paid for it. Sometimes Sometimes you have to work and you don't get paid for it. Right? Like sometimes you have to work and make your bed and put the dishes away and do chores. And Mommy doesn't pay you for that do I know, I don't believe in allowance for kids doing things that they should normally do every day in life. But you can get allowance for other things, right? So you get paid. And then where does that money go? For you, thank you. Yes, good job, you are listening to things I tell you. Okay, so yes, then it goes to your bank account. And then you can spend it, save it or invest it or give it to people, right? But you have to work to get it. And then you can spend it. And that would mean going to the store and buying things that you what need need. Want or wish you could have, right? And how do we determine whether we need want or wish something doesn't need

4:24  
a shelter for the food and water.

4:27  
Okay, so then like necessities that we need for life. And sometimes we talk about that differently as we grow up because there are different needs that we have as we get older. How about something that you wish that you could have What's something you wish you could have with your money? Well, we've talked about this before, instead of getting gifts for holidays, you prefer to what?

4:53  
go on trips to different places.

4:56  
So you'd like to be able to see the world and travel the world right now. Something that you could do with your money like I would

5:02  
shoot for a trip, another trip tours.

5:07  
This child is very simple when it comes to traveling the world, she hasn't been very well, she just wants to go to Wisconsin Dells to see your great grandma. So not a big ask, I guess I should probably get out of planning that trip. So money works in lots of different ways, then how to saving and investing work? Do you remember that? So saving our money means we're kind of setting it aside for something that we might need in the near future, right? So something that we can quickly access if we needed it, like if we, if something broke at our house, and you needed to pay for it, or something that you want to buy yourself in a short period of time. Whereas if we invest, it's something for the long term. So like when you're old, like mom? No, I'm kidding. It could also be that you're investing so that you could help pay for college. if you so choose to go to college? No, that's the heater that's going on honey. Okay, and then giving your money, right. Giving your money means what? What do we do when we give our money?

6:22  
You can sometimes give us it too.

6:25  
Yeah. That needed? Yeah. Or you can buy things that you can then give to other people too, right? So what's another question that you have? For me?

6:37  
What is the difference between what is the difference between a credit card in a gift card and a

6:42  
gift card, right? So there's gift cards, debit cards, or check cards and credit cards. Credit cards are kind of like make believe money. Whereas gift cards are money that you've actually taken to, let's say, your favorite store target. And you walk up to the cashier and you give them how much money $20 You give them $20. And then they put that $20 On a gift card for you. And then you maybe give it to your sister or your mom or your dad or I keep for myself or for yourself. But you could also just keep your $20 for yourself. Whereas a credit card means that you take that card and you swipe it and whatever you spend, you have to pay later. So it's like they give you the money to use for a period of time. And then you have to pay it back. So it's not actually that you have to have that money. Some people use a credit card, and it's money that they don't necessarily have. And then if you don't pay for it, the company charges you extra money. That's called interest. And it's a lot of money. So then whatever $20 that you decided to spend, if you don't pay that it can turn into you having to pay $30 for something you only got for $20. Does that sound responsible? Yes. And no. Does that sound responsible to pay $30 for something that only cost you $20? How about a cheque card? You didn't ask that question, but a cheque card works like it comes directly out of your bank account. So you swipe it and you have to have that money there. If you don't have the money there, then the bank will charge you a fee or it will get rejected. I'm glad this is an interesting topic for you. Are you yawning because you're tired? Yes. Is it because you've been watching too much TV with your sister? No. Okay. Do you have another question? You want to ask me? Yeah, do you talk about money in school?

8:55  
We did this one thing our money, which it's where so we we had the sheet and it was it would call up like a couple different people to do cuz it was like a sheet full of like, questions and stuff. And then like, it was put into like, a like act machine basically. And it was about taxes, sales.

9:30  
Sales taxes, right? What are sales taxes Giuliana,

9:34  
it's where I'm on the package. It it's not the price tag, the number that it says when you go to the checkout. It's a little bit more money than it says on a price tag. Because it sales tax for the community so we can have good roads and good so we can have like parks and good roads and stuff.

10:01  
Yeah, in for the businesses they have to pay sales taxes to, because they're a part of the community. And people drive there. And so it's their responsibility to help pay for some of that stuff too. Right. All right, you don't have any other questions for me. I'm gonna get the other kid here. All right, thank you goodbye. We are going to take a brief pause in my conversation with Giuliana. After we're done, we're going to bring it back with my youngest daughter. Money is a complex topic for kids to understand, but also for adults to understand too. Sometimes the complexities of responsibilities, life transitions, and the emotional money stories that each one of us has, brings a lot of different dynamics to us. And if you're sitting back listening to this and saying, oh, man, I wish that I knew these things when I was seven and eight years old. It's not too late for you to start friend. And we would love to have you as a part of our community at forethought planning. It is your turn to take control over your finances and start to Thrive Forward will simply go to forethought. planning.com backslash wealth assessment today. And let's begin that journey. All right now on to some more fun content with my happy go lucky seven year old Miss Savannah. All right, now we have our second guest of today's podcast, Savannah foreman, who is going to ask me some questions about my job. What's your first question that you had? What is your favorite part of your job? Oh, my favorite part of my job. My favorite part of my job is helping people I get to help people through lots of different things that happen in their lives. And they tell me a lot of things about what's going on in their lives and how they need my help when it comes to seeing if they can do the things that they want to do, like go on trips, or send their kids to college, or retire or travelled the world or buy a new house or change their house. All different kinds of fun things. I also deal with stuff that's hard, though. And I although I don't love that part of my job, I feel very special that I get to help those people. What did you want to ask? What's that? Do you have another question that you want to ask?

12:34  
What do you wait? What do you do when you

12:41  
when I'm working? So her question was What do I do when I'm working? Every day looks a little bit different. Some days I'm recording episodes of the podcast. Some days I am coaching my team members on how to be a new brand new financial planners. Most days I am helping clients with their financial planning do not financial planning is. So it's kind of like, you know, like the game of Monopoly. Where people get money and they spend money. Right? Are the game of life where you get money and you spend money. I help people decide when it's okay to spend their money, what they should spend their money on how they can make their money, maybe make more money for them. I help them in case something were to happen to them, how they can take care of their family, if something were to happen to them like they were to get hurt. Or unfortunately if they weren't here anymore. So I get to help people with lots of different things. And some days I do that at home while you and your sister are here. And some days I do it at the office because I have lots of flexibility. Right? What do you like about my job? You don't know. Do you like coming to Mommy's office? What do you like about going to my office to see? Yeah, you get to see my team. You really like them? They're pretty cool people huh? That's the other part that I like about my job is I have the best team ever. What other questions do you have for me? What do you what is something I asked her sister this What's something that you would really like to do with your money? What do you want to buy? Or do

14:40  
I need a break?

14:43  
I don't need any more blankets. You silly go sir. This kid has like 12 Blankets everybody. And she sleeps with them every night. But I like blank used to. That's the one thing if you could do anything I thought we talked about wanting to go to a trampoline park? That's my second. Okay. Trampoline Park. What are the four things you can do with your money?

15:12  
Keep spend, give. Invest.

15:17  
Yeah, that's right. Good job. What do we save our money for?

15:25  
You spend it

15:26  
later. Yeah. So we save our money to do big things that we want to do later. That we maybe can't do right now. And we have to save a little bit at a time to get Yeah. What other questions? Do you have anything else?

15:40  
What do you do when you're not working?

15:44  
What do I do when I'm not working? Well, he owes you the coolest job in the world. Are you? I do we like to do arts and crafts. We do be IDs. What else do we do this morning? We work out. We work out. I like to journal I like to color. I love being outside and playing with you. I like to travel. I really like helping other people. So sometimes we go volunteer, right? What else do I do when I'm not working? I watched you in gymnastics and your sister and basketball and even hockey. We cheer daddy on when he plays boomba I have a really good dancer and I love to dance a lot and embarrass you. That's what I do outside of work. But semana doesn't want me to do that. They can't see your headshake Cuddy, you have to say No, Mom. Don't do that. All right. Any other questions that you have for me? No. All right, well, good track kid. Thanks so much. views expressed here are those of the participants and not those of forethought planning, advisors, guide or LPL. Financial all investing involves risk including loss of principal no strategy assures success or protects against loss securities are offered through LPL Financial and member of FINRA and SIPC advisory services offered through advisors pride and SEC registered investment advisor at LPL Financial Advisors pride forethought planning and the guests of the Thrive Forward podcast are separate and unaffiliated parties

Transcribed by https://otter.ai