How to Manage Money kids managing money money

How to teach kids about money

I lately chatted with Art Rainer and we talked about how we will teach our youngsters about money.

It was an incredible conversation with some simple takeaways that I hope you take pleasure in!

You’ll be able to watch the video or learn the transcription under!

Bob Lotich: Hey everyone, I have Artwork Rainer right here at the moment and I’m really excited because he has written a very cool e-book referred to as The Money Challenge, which I picked up and I’ll inform you extra about that in a bit, but we’re going to speak about some money lessons that you have to be educating your kids. Art wrote a blog publish about this that I assumed was actually good so I assumed we might have a bit dialogue about it however we’ll get into that in just a second. However Artwork, thank you for taking some time to hang around at the moment, brother.

Art Rainer: Thanks so much for having me. I respect it.

Money is the results of work

Bob Lotich: Yeah, it’s my pleasure. And so Art wrote this guide, referred to as The Money Challenge and I actually like it because I don’t know for those who can tell, however it’s fairly brief. It’s not an actual massive ebook so you will get via it very easy and it’s actually sensible but in addition like numerous religious depth to it. Only a really good guide. So I undoubtedly advocate checking that out. And like I stated, we’re going to speak about money lessons you have to be educating your kids. And I’ve a five-year-old now and we’re just type of getting began on this. And I’ve an virtually two-year-old, we haven’t really touched on much yet together with her, but our five-year-old, we’ve been educating him some issues and anyway, I simply needed to speak slightly bit about a few of the stuff with you, Art. So, my first question right here or concept that you simply talked about on this weblog publish is that money is the results of work. And this can be a overseas idea to a lot of people nowadays. So inform me a bit of bit, elaborate on this somewhat bit for me.

Artwork Rainer: Properly, I’ve three kids of my very own. Ages eight, five and two so this one comes out of my own life experiences that money is the results of work because my two oldest boys seem, at occasions, to assume that money just grows on timber and that no matter they need they will get by just asking. And that it’s okay to waste food. It’s okay to break their toys, that there’s actually no consequences. That it’s just nota massive deal as a result of you’ll be able to all the time just get one thing else. Which you could all the time simply get one other toy, you’ll be able to all the time get extra food. And so it was birthed out of that concept. My wife and I are continuously telling our boys, hey, you recognize, we even have to work for food. You’ve got to work for this stuff, that they only don’t simply appear out of nowhere. And if that isn’t taught as a toddler grows, then they could assume that properly, you don’t really have to work very arduous to truly earn a dwelling, which could be detrimental, going into school with that specific mindset. It may end up in laziness and entitlement.

Bob Lotich: Yeah, I imply, like so much of our society, you’ll be able to inform, you possibly can see adults who by no means discovered those lessons as a child, and it’s like once you get into adulthood, I feel sooner or later it’s going to click on that you simply do have to truly do some work. But, I feel the purpose, the dependence on bank cards and the dependence on lots of this stuff that we’ve created as People to satisfy our every want and want every time we would like. Yeah, I simply assume these are actually good and essential classes that we ought to be educating our kids. So that’s undoubtedly one that we’ve began working with our son on and you already know, and simply making an attempt to start incenting him. And at this point, cause he’s solely 5, he doesn’t really perceive the concept of money. When it comes to the value that I put on it, he still sees it as a coin and as paper, you already know what I imply? However, we’ve finished one thing with a jar that he fills up with legos and then when he fills it up with legos, he will get to go get a toy. So that’s sort of his form of foreign money right now. And that’s labored rather well to simply start educating him this idea of, you understand, you do a chore, you possibly can put a Lego in the jar and then that’s going to get nearer to truly shopping for one thing. Are there any practical things along these strains that you simply guys have executed which were helpful?

Artwork Rainer: Nicely, talking about it on a reasonably regular basis is one, and figuring out those occasions when you possibly can’t speak about it has been necessary to us. As you’d in all probability anticipate, we don’t draw back from the money conversation in our home. It’s something that we speak about on a reasonably regular foundation. We do chores. We now have chores each weekend for our kids. And right now they’re making an attempt to save up for, I consider it’s some sort of Xbox that they need. And we don’t do a variety of video games in our house, but they actually need an Xbox. And so we stated, okay, nicely if you would like this, you then’re going to have to work for it. This isn’t going to just show up. In order that they have their aim, they understand how a lot money they will make every week. And so they’re working towards that finish. But yeah, for college kids particularly as they grow old and as they get into school, simply to perceive that in order to get money, it takes work. Like, it’s not about swiping a credit card, it’s not about logging into a video that promises to make you $1 million in a single day. That there’s actual work concerned. And so, to respect that idea.

Money is finite

Bob Lotich: Yeah. And on this weblog publish, the number two point you made was that money is finite. And this is another one, that man, I’ve seen some adults, I’m positive you’ve heard from some to who haven’t discovered this lesson but. Inform me your ideas on this.

Art Rainer: Properly, you have been in the banking business. I used to be truly within the banking business as nicely. So I’ve seen many adults that have not discovered this specific lesson that when the money runs out of your account, you don’t have any more. And it obviously leads to debt, to overdraft costs, all these dangerous things that come together with spending greater than you even have. Now in the event you assume that or in case you teach someone that money is finite, that it’s limited, the great factor about that’s that it forces them to create this thing, and it’s a nasty word, however we’ll speak about it. It’s referred to as a price range. It forces them to assume by way of how to manage their funds nicely. For kids which might be youngsters and school college students, simply the concept that, hey, you already know what? It’s not a vast useful resource, that there’s gonna come a time when you’ll run out of money. In case you make money, you’ll ultimately run out of it for those who don’t hold monitor of your spending.

Bob Lotich: I feel the most important factor for me with all this is the problem for us in the 21st century, I feel, in this regards to all this, is with credit cards. As a result of they’re tools which might be part of our society, whether or not we prefer it or not, it’s a device that is virtually used by everyone in America and lots of other first world nations. And it’s just a type of issues where, we will deny and battle towards this concept that money is finite for an extended, very long time if we play our bank card recreation properly, you already know what I mean? And I feel we’ve all seen individuals like that and I feel the worst factor is, you realize, school and perhaps within the 20s, like where you’ll be able to go an extended, very long time just getting the whole lot you need and shopping for the whole lot you possibly can think about and just maintain pushing it off further and additional down the line, kicking that may down the street further and additional. However sooner or later, it’s going to catch up. Like, you possibly can’t do this till you die. I imply, assuming you’ve gotten a full life, it’s going to catch up to you. So anyway, when it comes to educating our kids this, this has been one where I haven’t had an excellent nice opportunity to teach Alden about this but, however I’m working on it. He’s received a piggy bank and so we’re engaged on filling this piggy financial institution up and we’ll take a few of the money in his piggy bank and we’ll go to the shop and purchase a toy or something like that. And that is how I’m starting to teach them about money slightly bit but it is actually troublesome because when it comes to educating this to a five-year-old anyway as a result of he is aware of that I’m still going to whatever, purchase him a birthday present or buy him a Christmas present or something like that. And he hasn’t just made that separate connection but with all this. So how have you handled this together with your kids? Any concepts, strategies?

Art Rainer: By saying no. It sounds actually, really simple, however we’ll say and reap the benefits of the opportunity to say, no. And we don’t depart it simply hanging as a just “no”, you simply need to cope with it. But we explain and say, no, we will’t afford that proper now. It shouldn’t be a shameful thing if you say one thing like that. I know that always it looks like it’s a nasty factor to say. There’s shame hooked up to it that we will’t afford. No, that’s an amazing factor to say to your kid that hey, we will’t afford that proper now. BEcause it teaches them one thing, that there’s a cause behind the no, and there’s this concept that there’s going to be occasions when you’ll be able to afford things and once you can’t afford to purchase sure gadgets. And so we tried to reap the benefits of once we can say no, we do this as a chance.

Bob Lotich: Yeah. That’s really good. I really appreciated that so much because yeah, it is educating them the identical lesson. The same factor that we as adults need to know, that we’re out of money. You realize, it is a no, it simply comes from another person, it doesn’t come from our mother and father at this level. In order that’s good.

Debt is just not useful

Bob Lotich: All right. So type of leading into the subsequent one is that debt and this idea that isn’t one thing that’s useful as an entire. And that, especially the Bible, you realize, in our case, we both are believers, we both perceive that the Bible has some things to say about this. And so inform me a bit bit about how you’re handling debt together with your kids, type of speaking some stuff to them about it.

Art Rainer: Yeah, so I can’t say that I’ve truly talked to my kids that a lot about debt. I’ve talked to various excessive schoolers, school college students, and young adults and past about debt. And the place I all the time level them is basically the place the Bible starts with money and that’s with generosity. So I point them to the priority that we’ve got as believers, in accordance to the Bible, with our money, is that we’re supposed to be generous with it. We’re supposed to give, it’s the very first thing that we do. And I say, that is finally God’s design on your money, it’s supposed to be used to advance his kingdom. Now you get to take pleasure in it, but you also are using it to advance his kingdom. And if that’s your priority, then things like debt can then turn into a hindrance to that priority, to dwelling out and to using your money for what God has designed you to do and with what your money was supposed to be for.

And so I level them to the last word why, why we did it. As a result of typically I feel we typically get the why fallacious. Like we frequently deal with being financially wholesome because the why: why we’d like to get out of debt, why we’d like to avoid it, why you want to save money for retirement, savings account, emergency funds. However when actually those are just means to a much larger finish. And that’s the place we will stay with our arms extensive open saying, God, no matter you need me to do with it, I can do with it whenever you want. Wherever you need me to go, I can go because we’ve been good stewards of those assets. And so I speak about debt as a hindrance to being able to reside out God’s design for money and for themselves as a result of we’re designed to be generous. We take pleasure in being generous. With school students, particularly, it’s explaining to them that the school debt that you simply’re taking over, those papers that you simply’re signing, that you simply won’t absolutely perceive what you’re signing, there are going to have vital ramifications down the street. I know it’s bizarre to assume about that, that signature on that paper, that money that you simply’re taking is going to forestall you from buying a house whenever you need to. It’s been recognized to delay marriages, been recognized to delay having youngsters. It’s going to be a mega situation in your life. So before you sign that paper, understand that you are taking over a burden. The Bible calls it a burden. And the Bible also says that although it’s a burden, you’re going to have to pay it again. So it’s not that you simply’re going to find a way to get out of it. It’s a burden that’s going to be on you till you to pay it off and it’s going to have vital ramifications on your life, it’s going to hinder your goals that you’ve right now.

Bob Lotich: I feel the factor for me once I was in school, I took on an honest amount of scholar loans. I feel I had in all probability $45,000 complete. And as a university scholar, I had no concept. I really feel like if you’re going into school, you’re simply considering, I’m going to get a superb job as soon as I get out and I’m going to pay issues off in a couple of years and it’s no massive deal and whatever.

Artwork Rainer: And most students assume the identical method. It’s not like they’re going in there considering “I just wanna take on a bunch of debt” That’s not what they are considering. They are unaware of the long-term ramifications for that signature and taking over that money.

Bob Lotich: I feel more now than you already know, if you and I have been going into school, the promise of getting a implausible job after getting your school degree. I imply, obviously, depending on what area of research you’re in, it’s just a very totally different factor. And I didn’t get an excellent job after school. I mean, I truly, was sort of stuck in a lifeless end job and was having a hard time getting out. I feel there’s just a lot of people discovering that very same factor and I might just hate to be anyone going to faculty, spending $100,000 on school proper now, simply considering they’re going to walk out, get an amazing job, and every part’s going to maintain itself, you realize, really shortly.

Art Rainer: Most of the time, it doesn’t simply maintain itself. I hope that everyone gets an ideal job out of school. I hope that happens for them. The truth is that the majority aren’t going to have that have. That’s not most people’s expertise. Even once we went to school, my first job out of school was not glamorous by any stretch of the imagination and did not pay a lot in any respect. Which was typical. That’s the standard route most people, most individuals take.

On the spot gratification leads to delayed monetary health

Bob Lotich: So next on the listing is this concept that prompt gratification leads to delayed financial well being. And little question we reside instantly gratification society. I feel everyone knows that. I keep in mind hearing Jeff Bezos speak about this and just about the important thing to their success has been “how do we give people exactly what they want, everything they can imagine, as fast as they possibly want it.” And he’s like, individuals are all the time going to need it quicker, quicker, and clearly that’s working as their enterprise mannequin. So anyway, tell me how this applies to educating our kids about money.

Art Rainer: Properly, I can return to the illustration of my kids, saving for the Xbox. Mockingly, my kids want the first era Xbox. I don’t know why they need that one, but that’s what they’re going for. So yeah, it’s cheaper, which is great. However educating them that it takes time to save up, to earn something. That word earn, that there has to be skin within the recreation, that there’s time between want and achievement.

I can’t say that every time that we’ve executed this, that they’ve adopted by way of and that they have attained their aim. I had a reading plan for my oldest son. I stated, when you learn so many books, when you do this, then I will take you to a university soccer recreation. But you might have to do this stuff first. So he started out robust doing it, but ultimately, he stopped doing it. So then, in fact, he didn’t end up going to the game, which was a pure consequence for not following by way of. And so it’s just finding those objectives that they at the very least initially want and providing them a path to attaining that specific aim. And in ensuring you comply with via with it as a father or mother. Encouraging them in that path and then in fact if they actually get there, just remember to make good in your phrase. However find those methods to help them work arduous in the direction of one thing that they finally want.

Bob Lotich: Yeah, I mean I feel everyone knows this, however a part of this equation too is that we reside it out ourselves, you realize, because they’re watching they usually’re paying lots closer consideration then at the least I had any concept. Like issues they could get, they’re already choosing up on. It’s like they know what’s happening and Linda and I look for alternatives to just sort of allow them to in. We don’t allow them to in on all of the dirty particulars of our funds. But anytime we get a chance to say, hey, we are saving up for this and we’re ready for this and we’re not going to purchase this until we’ve got saved up this a lot money or no matter it is, simply to present them that we’re doing this too. And that that is part of being an adult. That is a part of, you already know, handling money the best method.

Art Rainer: I can’t understate the significance of simply talking about money basically together with your kids. And as you stated, and with every thing that’s happening in your life. We speak about our giving. We give online so our kids aren’t in a position to see us give in the plastic buckets that you simply put money in at church. So we make it possible for we’re intentional about talking about it, that we give to our local church first. We give to another nonprofits that we’re passionate about. So yeah, it’s only a regular conversation for our household.

God is the provider of the whole lot

Bob Lotich: That’s good. All proper. This can be a level I would like to speak about it somewhat bit more. Just the concept God is the owner and provider of every thing. And that is undoubtedly one that a lot of people don’t understand. A whole lot of adults don’t perceive this. And I feel in the event you perceive this idea from a young age, I feel just saying there’s so much energy in it. So I’d love to hear your thoughts on this as properly.

Artwork Rainer: First, simply watch out with telling your kids that God is the proprietor of the whole lot as a result of it could actually come again and hang-out you. I can’t inform you what number of occasions I’ve stated, hey, no, that’s dad’s telephone, don’t contact it. Then they’ll say “no, dad, it isn’t your telephone, it’s God’s telephone! Because we’ve reiterated that every thing’s Gods after which he owns it. He owns it all. And so our kids latched on to that they usually’ll come back and say, no, no, no, you’ll be able to’t claim it’s yours. Yes, you’re right, it’s from God however simply give me my telephone!

It’s superb that we serve a God that, the parable of the skills is the right example of this, once you see the master handing over skills, money, to these servants. And, in the event you discover in the parable, those skills, it never switches possession. It by no means says the servant’s skills. It all the time says the master’s skills. Even when it’s in their palms, it’s nonetheless the grasp’s skills. In fact, when he returns, they hand again what is rightfully his.

One of many items I feel that we frequently miss with that story is that it actually truly supplies, it demonstrates the why for our money. God provides us these assets and what does he rejoice? When the master returned, he celebrates people who have primarily expanded his kingdom together with his assets. So that master had larger earnings or owned extra when he returned than when he had left. And that’s what was celebrated. And so it simply underscores the significance that God provides us these assets to take pleasure in. 1 Timothy 6:17-19, He completely provides us every thing in order that we will take pleasure in it, but in addition so that we will advance His kingdom and that’s finally what He’s going to sort of have fun. And so it’s all His, and we now have an unimaginable honor to have the ability to take it and use it to influence our group, impression our metropolis and influence the world for His sake.

Bob Lotich: I feel I just really feel like on a sensible degree, the earlier you’ll be able to grasp that, the better. My spouse was raised in the church and I wasn’t. So she from a younger age gave 10% of her revenue to her church and just all the time did that. So it was by no means a challenge. It was by no means even a step of faith typically for her to give 10% as a result of it was just all the time what she had achieved. And me, however, like going from giving zero of my money, regularly to this idea of 10% was like, that’s big. That’s lots of money. You realize what I mean? I’m by no means stuck on the 10% because again, it’s all God’s money. However I do assume that the purpose is that if we’re giving persistently, from a young age, I really feel like it is a entire lot simpler to transition to adulthood and it’s less of an abrupt type of a factor that we’d like to undergo.

Artwork Rainer: It’s. However you’ve also hit on the caution there. I feel we should always completely teach generosity with our kids, and that it’s the precedence for our finances. On the similar time, we as adults have to be careful that it simply turns into this recurring factor that we do this we don’t even assume about because that’s not what the Bible teaches both. The Bible teaches sacrificial giving. And sometimes I hear individuals say, I’ve tithed all my life. And I do know they really haven’t been, I understand what they’re saying, however typically it’s a simple box checked, that they’ve finished their good deed by giving 10%. And that’s not what the Bible commands us to do at all. That is supposed to be an act of sacrifice. It’s type of uncomfortable to say that however we see that throughout scripture. So we have now to be careful and have to verify our personal hearts and the place we’re with our generosity and whether or not this is only a box checked. Or is it a sacrifice that we’re deliberately making.

So teach kids to be generous, to hold their money loosely, palms vast open, ready to give each time God prompts. On the similar time, even we as adults, we don’t want to get into the sample of simply checking packing containers as a result of that’s not what God needs both.

Bob Lotich: Yeah, absolutely. And I really feel like, as we keep obedient to him. Yeah. I imply, cause this 10% factor is fascinating since you are proper. I run into so many individuals who that is simply the place they’ve rested their laurels. I feel like that’s a mark submit along the journey of giving where, if we’re simply really following him and in search of after him and obeying what he’s telling us to do, I have a hunch that the majority of us are going to be giving beyond that time and he’s going to stretch us and simply proceed to stretch us. And that’s what he’s finished in our lives. And I simply see that pattern time and again.

Artwork Rainer: And once we take a look at the examples that God provides us, people who he points out for us as illustrations on how to give. I feel that the widow’s mite or the widow’s present, there was a room full of individuals dumping giant amounts of money into the temple treasury. Nevertheless it was the widow who gave two cash that you simply pointed out and stated, no, she gave greater than anybody else. And why did he point out her is as a result of the Bible says that she gave all that she had. In God’s financial system, amount sacrificed all the time supersedes amount given. And so it’s about the sacrifice, not essentially the field that’s checked. Plus the whole tithing thing, I understand the place it comes from. However once you take a look at the Previous Testomony and you look to the Israelites and how much they actually gave, it may possibly vary all the best way up to 33% in any given yr because there have been a number of occasions a day that they might give. And so it’s not about the 10%. Actually, it’s typically far more than that. God is in search of the sacrifice and we’re really saying it’s all yours anyway. And you may take no matter you want.

Bob Lotich: That’s good brother. All proper. Yeah, let’s sort of wrap this thing up. So you’re engaged on a kids guide?

Artwork Rainer: Yeah, absolutely. I’m not working on them. They may hit July 15th. It’s a utterly totally different sort of writing. It’s plenty of enjoyable. In reality, I had my, my eight-year-old learn every of the books and the primary guide, I let him read every chapter and after the first chapter he stated truly Dad, this is boring. So I utterly scrapped it and made positive that it was a enjoyable read. They’re learning about Biblical monetary rules however in a really entertaining means. It’s referred to as The Secret Slide Money Club and there are three books that may hit in July.

Bob Lotich: Cool. All right, so individuals can go to and as we get closer to that date, in all probability preorder there or one thing like that?

Artwork Rainer: Absolutely. Yeah. They’re truly already out there for pre-order on Amazon or or in order that they’re ready for preorder now.

Bob Lotich: Superior. Great. All right, properly go test it out and that’s all for immediately. I respect you taking the time, Artwork. Thanks, brother.

Art Rainer: Hey, thank you for having me. It’s plenty of fun.