Warn them about money safety
We work hard to build our financial futures, yet it is easier than you think for all of that to be thrown into disarray in today’s digital world. Building good habits that protect your identity and net worth should start at a young age. This lesson will explain the best way to teach your child how to do that.
1) READ THE CHAPTER
For information and a deeper dive into having money talks with your kids. Read the chapter with relevant financial literature to give you a sufficient foundation on the topic. Order your copy of the book below.
2) LISTEN TO THE PODCAST
Listen to this lesson’s episode where I’ll walk you through the questions to ask your kids during the conversation as well as the likely responses you’ll hear from them.
3) SEND THE TIKTOK
Send this video to your child, so you can set the stage for the topic you’ll be discussing, in a language they understand.
4) HAVE THE MONEY CONVERSATION
Using your printed one-page conversation guide and enjoy the dialogue with your family to get them financially launched. Now’s the time to discuss and start the conversation.
Additional Lesson Resources
- “I Will Teach You to Be Rich” by Ramit Sethi
isn’t aimed at teens. It’s written as a complete money guide for young adults seeking to build wealth without pinching pennies. However, many reviewers say Sethi’s advice is just as useful for older teens starting or preparing for college.
In 13 chapters, Sethi provides a complete road map to financial independence. Topics include:
– Paying off student loans
– Using credit cards responsibly
– Building savings with high-interest bank accounts
– Automating finances and lazy investing
– Covering big expenses like a car, first home, or wedding
– Negotiating for a raise at work
– Always getting the most for your money
Sethi’s writing style can seem a little harsh at times. He spends a lot of time attacking people who complain rather than taking financial responsibility. But behind the criticisms are simple, actionable steps for money management that anyone can use.
- “I Want More Pizza” by Steve Burkholder
As a teenager, Steve Burkholder saved up $5,000 for college…and lost it through unwise investment. Years later, he wrote “I want more pizza” to help other teens avoid similar mistakes. Burkholder’s style is clear and entertaining. He uses relatable examples and anecdotes and never talks down to his young readers. This comprehensive financial literacy book is ideal for high school students. However, it’s appropriate for teens as young as 13. The book is organized into four “slices” covering different aspects of money management:
1) “You” covers your relationship with money, including behavior, priorities, and goals
2) “Saving” explains how to track expenses and save for goals like a car or college tuition
3) “Growing Your Savings” covers compound interest and investment
4) “Debt” explains all forms of debt, including credit cards and student loans
- “Why Didn’t They Teach Me This in School?” by Cary Siegel
Another teen-friendly, big-picture guide to managing your money is Cary Siegel’s “Why Didn’t They Teach Me This in School?” Aimed at slightly older teens than “I Want More Pizza,” this bestseller makes an appropriate gift for both high school and college graduates. This book covers the whole gamut of personal finance. Siegel organizes it into eight broad “lessons, each covering several specific, bite-sized “principles” of financial health. Topics include:
1) Setting realistic financial goals
2) Making and following a budget
3) Getting the best value when you shop
4) Getting (or staying) out of debt
5) Recognizing good investments
6) Renting versus buying a home.
Together, these lessons add up to a crash course in making sound financial decisions. Teens can read the book straight through or skip straight to a specific lesson, as they choose.
- “Rich Dad, Poor Dad for Teens” by Robert Kiyosaki
Robert Kiyosaki is a controversial figure. Some critics think his bestseller, “Rich Dad, Poor Dad,” puts too much emphasis on real estate investing and too little value on education. He had a corporate bankruptcy in 2012. And he took a lot of heat in 2020 over a purportedly racist tweet. Nonetheless, the book remains hugely popular for its perspective on the mentality of wealth. His “Rich Dad, Poor Dad for Teens” offers the same insight for a younger set. It focuses on the money habits of the rich and teaches how to make money work for you, rather than vice versa. The book covers principles key to financial success, like goal setting, entrepreneurship, and finding your own path to wealth. It includes sidebars and quizzes to help young readers make sure they’re grasping the material.
- “Broke Millennial” by Erin Lowry
By now, the millennial generation has left its teen years behind. Yet the advice in Erin Lowry’s “Broke Millennial” continues to have relevance for the high school and college students of Generation Z. Lowry offers a comprehensive, entertaining, step-by-step guide to money management for young adults who want to stop — or never start — living paycheck to paycheck. Besides the basics of budgeting and credit cards, it covers topics relevant to young adults, such as: 1) Splitting the bill with a group of friends 2) Managing student loans 3) Discussing money with a partner. Lowry’s style is casual, cheeky, and youthful. Her use of funny anecdotes and humorous hashtags (such as #GYFLT for “get your financial life together”) will resonate with Gen-Z readers. And her advice can help them avoid starting adulthood broke like her generation.
- “How to Turn $100 into $1,000,000” by James McKenna
Many of these money books aren’t ideal for tweens. Either their writing style or their material isn’t appropriate for pre-high-school kids. If you’re looking for a complete personal finance book suitable for ages 10 to 14, look no further than “How to Turn $100 into $1,000,000.” James McKenna is one of the people behind BizKid$, a show and educational website for young entrepreneurs. In this humorous and practical guide, he teaches kids how to do three basic things with their money: 1) Make it: Get a first job or start a business 2) Save it: Learn why saving matters and how to do it 3) Grow it: Put the power of compound interest to work. Illustrated by Jeannine Glista, the book is packed with tables, graphics, and worksheets. It can help your tween with any financial goal from buying a bike to starting a small business.
- Broke: ESPN 30 for 30
- Lesson Plan to go with “Broke”
Financial Literature (FinLit)
- Money Masters Class (Questions to ask your kids) https://moneymasterkids.org/wp-content/uploads/2019/10/Great-Questions-to-Ask-1.pdf
Why The Lottery is So Seductive
Is It BAD to Play the Lottery? (Next Gen Personal Finance)
Problem Gambling Is on the Rise Among Young Men (WSJ)
IDENTITY THEFT: How to Protect Yourself and Your Loved Ones (Sound Credit Union) Starts at 4:19 into webinar.