Teaching Kids Financial Responsibility and Mindset Development

Parents should model financial behaviors to teach children the value of money and hard work.

### Teaching Kids Financial Responsibility: Balancing Wealth Awareness and Work Ethic
* 💰 A question from a viewer highlights the challenge of **explaining financial status to children** while encouraging them **not to feel entitled**.
* 👶 The speaker shares their approach of reassuring their children that it's **okay not to know** the family's financial situation, while also acknowledging wealth when appropriate.
* 👩 ‍🏫 Emphasizing the importance of teaching children about **saving, spending, and giving**, the speaker advocates for **instilling financial principles early on**.
* 💼 Encouraging children to work in high school, even in fast food, helps them understand the **value of earned income** and the **importance of hard work**.
* 🌱 By modeling positive financial behaviors, parents can teach their kids that **experiences are a result of specific saving decisions** rather than mere wealth.
* 🚫 The speaker warns against creating a **sense of entitlement** and suggests introducing a **healthy sense of scarcity** to help children appreciate value.
* 🚗 They recount a personal experience of having their child **contribute to the cost of a car**, contrasting this with peers who receive new cars **without effort**.
* 🌍 Ultimately, the goal is to **foster independence and a strong work ethic** in children, ensuring their best days are not solely tied to their upbringing but **extend into their future**.

[Music] all right, up next, we've got a question from Mama didn't raise no Fu. She says, I have a question I haven't seen on the show before. If you have reached the boiling point or the bowling point, how do you explain to your kids we're doing okay and not to worry, but also don't let it get to your heads? Oh, this is where does it. I had two thoughts. I was like, just keep telling your kids it's okay if your kids don't know you have money. I think that's okay. But then there's the so that's one side of it. I do that with my youngest. I'm just like, you know, she's like, Dad, someday when we're rich, can we do this? I'm like, Yeah, maybe. Maybe someday we can do that. You know, so maybe it's wrong that I'm playing this game with her. But then there's the Shaq way where you basically just straight up, and it's probably for Shaq.

It's hard for him to hide what he has. I mean, when you got all the Papa John franchises and everything else he's rolling with, hard. You just remind your children that yes, you are rich, but the kids, you're not rich. And that's something just to take into account. And that's why, guys, from the beginning, I've told you Bo does a great job with the, what is it, the save, spend, gift for the younger. Go ahead and get those categories into your young children's mindsets. But then I'm one that I love your children working while getting a job at some point in high school. I even like fast food or food service because it lets you get direct access to the crazy public. As soon as they start working in any type of job that's considered earned income, start doing matching funds to, and you can open a custodial Roth IRA or something like, but go ahead and start priming the pump of good behaviors and

disciplined behaviors and also the value of hard work because if you can catch that fire young and they see it and they can kind of feel it and actually then catch traction with it. Your life is going to be a lot easier and it's also very fulfilling um as you get to to to to experience the fruit of a child that actually you realize is a good hard worker and good with their money. I mean I'm I'm I'm feeling that right now with my daughter who's a junior in college but she is good with money and it feels it it's kind of it warms my heart to know that. Yeah it's really interesting the question says how do you explain to your kids we're doing okay and not to worry. I one I don't know that you have to explain to your kids that you're at the boiling point. I think once you reach critical mass I don't know that's something you have to like tell your kids or walk them through but what I've tried to model is it's really easy I've

got little kids. It's really easy to just say, Oh, that's too much money, that's too expensive, that's whatever. But I do agree at some point, as your kids age and as your kids mature, they're going to probably recognize, Oh, okay, things look different. And so, what I try to do is I try to always point it back to the behaviors. Hey girls, the reason, you know, the reason we're able to go on this vacation, the reason we're able to have this experience or do this thing is 'cause, you know, Mommy and Daddy make really specific decisions about how we save. And we've been saving for this, and we've been putting so, it's less tied to like the outcome, oh, the success or the wealth or the money or whatever, and much more tied to we can do this because of the behavior, of the behavior. If you can begin to drill that into your kids, it'll be less about the destination and more about the journey to get there. 'Cause that's what I want them to walk away with is what your daughter now has. She

behaves a certain way because that behavior was modeled for her, not just 'cause she was told, Hey, everything's okay, we've got money, we'll be fine. If you can begin to instill that in them, and that just becomes naturally part of it, Hey, we can do this, because I think it creates a very different mindset in your children and not an entitled mindset. Now, one of the things you have to combat is when things are perhaps a little bit easier, a little bit smoother, there's more money laying around. I do think you have to be intentional with, I don't want to say creating scarcity, that's the wrong word, but put scarcity in their life. Okay, maybe it's, I'm all about some scarcity in some rich kids' life. They don't need to get it all while they're young, agreed? But I would say it's really easy to say, Oh, we can afford it. It's a much harder thing as a parent to say, Oh, no, no, we can't afford it, we're choosing.

not to because, and I think when you can begin to introduce that in and help them understand the value of money and the value of decisions that you're making. I think it just changes the whole dynamic, and that's something that we're having, especially in the community in which we live, having to work through with our kids, even present day. I mean, I'll say it because I know it seems like nobody listens to me, but I did it with my child, is that I gave her one of those character-building cars, you know, 12. She paid for half of it. And that's, I think, that is a good thing, whereas it seems like all my neighbors were giving our kids brand new cars right out of the gate. I mean, I think that's wild. I mean, I think that that's, if you start, you what you don't want, if you are living in abundance and you're a financial mutant, you do not want your kids' best days to be while they lived under your household. I mean, think about

that I mean. I want you to internalize that. I want you to give your children a great life, but build them the mindset, build them the life, so that when they get to go buy that first car, they know how it feels to buy that first new car. And there's nothing wrong with traveling well and doing those types of things. I think that's okay to invest in the memories, but do not make your child's best days the days that they were K through 12 in your household. I think that that is something that you ought to bear the responsibility and the weight of, so that you can actually create kids that are going to live on their own and be independent and be good working humans after they get outside of your household. Love it.

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The Money Guy Show

It's okay for kids not to know about the family's financial situation.

The speaker uses a playful approach with their youngest child, while also acknowledging the challenge of hiding wealth.

Teaching children about saving, spending, and giving, along with encouraging them to work and earn income, can help instill good financial habits.

Teaching Kids the Value of Hard Work and Money Management

Modeling disciplined behaviors and hard work for children can lead to a fulfilling and easier life.

It's important to focus on teaching kids the value of specific decisions and behaviors related to saving and money management, rather than just the outcome.

By emphasizing the journey and the behaviors that lead to success, parents can instill valuable life lessons in their children.

Instilling a Healthy Money Mindset in Children

Modeling behavior is key to instilling a healthy money mindset in children, rather than just reassuring them with words.

Introducing a sense of scarcity and making intentional choices about spending can help children understand the value of money.

Providing them with opportunities to contribute financially, such as paying for half of a car, can also promote a strong work ethic and responsibility.

Parents should focus on instilling a strong mindset in their children, preparing them for independence and responsibility.

Investing in experiences and memories is important, but parents should avoid making their children's best days solely during their K-12 years at home.

The goal is to raise self-sufficient and responsible individuals who can thrive outside of the household.