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Introducing the “Teach My Teen About Money” Podcast

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The Teach My Teen About Money Podcast

This has been a long time in the works–but I have a podcast!

It’s called “Teach My Teen About Money” and it features interview with “money nerds” sharing their stories and their advice with my teenage son Joseph … and me!

The background of this podcast project is moderately interesting. During the completely remote 2020 FinCon, I said in several of the Zoom group meetings that my son was learning a lot of his personal finance information on TikTok.

One person responded “Brad Klontz is killing it on TikTok!” which is true, but I digress, so let me digress a little more. I admire all the work that Dr. Klontz has done. I’ve read his books and I think that his “money scripts” construct is one of the best ways to approach money mindset.

So back to FinCon 2020. I said — more than once — “I need a podcast called “Teach My Teen About Money.” And so many people in the FinCon community said, “Go for it!” I am really grateful for that support and encouragement, one of the best things about FinCon.

Joseph is now a college freshman studying finance and accounting, and he is still interested in money. So we did some interviews and had a great time. I especially enjoyed the process of “talent stacking” when it comes to podcasts–learning how to record, edit, upload, and more. I wish I had done it long ago, and I have a lot more ideas about fun podcast projects.

So, it took a little longer than expected, but here it is. Let me know what you think about it. Episodes “drop” (as the cool podcasters like to say) on Tuesdays.

And Dr. Klontz, we’d love to interview you, too!

Here is the trailer:

Teach Your Children Well (about Money)

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How do you teach your kids about money?

Your job as a parent is not to raise a good kid, but to raise a great adult.

–common saying

“Begin with the End in Mind” is the second habit in Steven Covey’s well-known Seven Habits of Highly Effective People. Covey turned the personal-development construct into a profitable business, with book series, Franklin planners, and speaking. (Concept: Michael Hyatt is this generation’s Steven Covey?)

“Begin with the end in mind” suggests people consider what they want the outcome or result of their life/year/day. Then, people can reverse-engineer it with activities and habits that will likely result in those outcomes.

From the Franklin-Covey website:

“Begin with the End in Mind means to begin each day, task, or project with a clear vision of your desired direction and destination, and then continue by flexing your proactive muscles to make things happen.” 

In the kids version of the book, titled The Seven Habits of Happy Kids “begin with the end in mind” is titled “have a plan.”

 Planning for what you want lets you do more of what makes you happy and fulfilled. Not planning has life “happening” to you.

This particular “habit” makes tremendous sense to me, as I am a “planner.” But even without this tendency, being able to plan—can offer more security, flexibility, and success when it comes to goals.

“Begin with the end in mind” is best practice for parents.

This week’s challenge is to help the young people in your life about money–or at least begin/continue the conversation.

This “teaching” challenge is part of April’s Future theme for obvious reasons. The future belongs to young people, as they will most likely live in the future longer than we will.

With the Covid-19 crisis ongoing, and shelter-in-place going on in most states, there is all the more reason to take some of the time we are all together as families to even have some conversations about money.

If you do not have kids, consider instead completing one of the prior weekly challenges instead. Or, share some of this information with a friend.

What are some good ways to teach money concepts to a young person? A few thoughts:

*it’s a conversation, not a one-time “talk.”

There’s an old joke about nervously having “The Talk” about birds & bees with your kids, as if it is just a one-time transfer of information and then never needed again.

But as we all know, if you want a young person to grow up with a healthy approach to sexuality, there’s not just one “Talk.” You need to have an open and ongoing conversation, and be willing to listen as well as provide information. You also need to steer kids away from the vast amount of harmful information out there on the birds & bees, from things their fellow kids say, to bad actors

It’s the same with money.

You can’t just have a one-time lecture on how to open a checking account, and call it good. If you want kids to have a healthy approach to financial issues, you will need to have an ongoing conversation.

Even if you did consider one “talk” as enough, your kids will learn lot both from the culture at large. They will also learn from how you appear to handle money, as more is “caught” than “taught.”

Part of your “money conversation” with kids will involve helping them choose good sources of information, and how to discern good from bad. And you can be one of those good sources, even if you’ve made money mistakes. (We all have, and it actually helps your kids learn from your mistakes.)

By the way, this also goes for adults & money. You should be continually learning and growing when it comes to money.

Ongoing, “just-in-time” learning is best.

People learn best when they need the information, or “just in time.” But it’s tricky with teenagers or young people. Some basic personal finance information is good to have, but most teens are not in need of all the money skills just yet.

How to calculate the required minimum distributions on an IRA for a retired person, is not going to be interesting to any teen right now. They may need the information when they are retired, but it’s not useful at 17 or 19.

At the same time, a teenager is often in a unique position to save for the far future—being that retired person some day! 

So, for instance, a Roth IRA is an excellent way for a teenager to set aside some of their early earnings. This is especially good when they do not owe much (if any) taxes, and allow that money to grow tax-free forever. 

But what if a teen does not understand the concept of compound interest (or– in the case of index funds or other investing– compound returns)? She might be resistant to putting aside some of her hard-earned babysitting money into a Roth versus other types of spending.

Here are some ideas of some basics of money that someone at a young age. This is not exhaustive, but a good start:

Money with (Little) Kids

Compound Interest versus Compound Returns:

  • the “magic” of compound interest, and the difference between compound interest and compound returns (also “magic,” but with different principles). The SEC Compound Interest Calculator is my favorite for ease of use, and the Nerd Wallet one shows how much the earnings make up the total after a long period of time.

Taxes and Tax Planning:

  • a basic understanding of taxes & how to plan for them. This is actually a great source: the IRS “Understanding Taxes” Student site. I found this to be old-school looking,–as if 1998 wanted its website back. But it is actually quite informative, useful, and easy to use. Worth poking around, especially the tax simulations, based on different types of taxpayers.

Credit Cards — pros & cons:

  • My three-part series on credit cards is a decent start, and woven throughout are links to various other sources.
  1. Your Teen’s First Credit Card
  2. Paying Off Credit Card Debt: Getting Your Act Together
  3. Credit Card Rewards: A Beginner’s Guide

Money Mindset: (aka behavioral finance)

How people think about money is a big component of how people end up handling money. This is a huge topic! It’s one I am super interested in, and hope to write much more about. Some articles/videos to spark discussion. I don’t agree with everything written/talked about here, but the discussion is what makes it helpful!

When I titled this “Teach Your Children Well” the Crosby, Stills, & Nash song was going through my head. Here are two of the videos I found of some nice versions of it. Enjoy!

Teach Your Children Well (Crosby, Stills, & Nash)

Teach Your Children Well (Kathy Mattea & Suzy Boggus

THIS POST MAY CONTAIN AFFILIATE LINKS. PLEASE SEE MY DISCLOSURE FOR MORE INFO.

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    You Need a Money Health Day

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    Your Challenge: Plan a “Money Health Day”

    Most people have heard the expression “taking a mental health day.” — a planned (or sometimes unplanned) day off from work to renew and refresh.

    Many moons ago, when I was first in the work force, a “mental health day” was considered kind of “under the radar” or not particularly professional. But times have definitely changed, and mental health days are considered needed, and actually a great use of time off.

    Even without entire “days” off, practicing good self-care, such as eating right, exercising, and managing stress (my favorite way is stress baking, not kidding!), is sensible and vital, even for those not able to take time “off” of work or school.

    This week’s challenge is the financial equivalent of a mental health day:

    Take a money health day

    It goes without saying that for those who have lost their jobs, a money health day will not be looking exactly like a typical one. Here are some tips and ideas to get you started if you have lost your job.

    As I did last week, I am “borrowing” this idea. I’ve heard the hosts of the Motley Fool “Answers” podcast discuss a “financial health day.” (and they recently did another episode on the topic, coincidentally).

    For those still working or doing online school, an entire day devoted just to financial tasks may seem impossible right now.

    But just as you can set aside time for self-care activities during this time, setting aside time for these money tasks will be time well spent.

    Even if you cannot devote an entire day to tackling money to-dos, plan ahead for a half-day, or even an hour.

    Now, this entire year of The Clarity Project— is a yearlong list of ideas of things to add to a money health day. But this week, the challenge is to actually schedule, or set aside the time—a day or a portion of a day (even an hour!) that you plan to devote to financial tasks.

    What should you do on a money health day?

    Good question. And just like how personal finance is more “personal” than “finance,” the elements of a money health day will be specific to you and your family.

    Regardless of your specific goals, plan to include three types of activities:

    Three types of tasks to consider during your money health day:

    One: Education

    Two: Understanding

    Three: Action

    Here are few tasks in each type to give you ideas of how to plan out your day:

    One: Educate Yourself

    This includes learning about general money topics, especially related to tasks you hope to complete. You could complete much of this ahead of your actual designated day or hour. It could work especially well to have both spouses listen to/read the same sources, to foster discussion.

    What are the ways to learn easily about money?

    • podcasts (here, here and here are three episodes to spark discussion.
    • online articles.

    A key note: there is not ONE be-all and end-all source of money information—it is actually helpful to sample a wide variety of sources.

    Two: Understand Your Situation

    • Check your credit score (this is often offered by credit card companies—log in and see).
    • Compile a list of who you owe, how much, and at what interest rate (credit cards, auto loans, student loans).
    • Create a list or spreadsheet of all bills (utilities, credit cards), dates due, and typical amount.
    • Check your mortgage rate and how much is owed on your house, and the estimated value of your account. Check Zillow.com for a reliable estimate.
    • Make a (physical) list of everywhere you have money. Put each into one of three categories: general checking & savings; long-term savings accounts (money funds); and retirement accounts.
    • Check your bank statements, credit card statements, and make a list of any recurring subscriptions out (monthly “boxes,” newspapers, magazines, streaming services, etc.).

    Three: Take Action

    This is the most important step. As I write in my weekly e-mails to subscribers (subscribe below), you can take some kind of action, however small, to make progress.

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      Based on what you learned in the previous two steps, you should be able to easily complete or at least get started, on some of these tasks. A few ideas:

      • create an account at Social Security to learn about your earnings, and protect your Social Security account. Do this for every member of your family who has a Social Security number.
      • create an “important” file, binder, or other list, both on your computer and physical, that lists logins, accounts, etc. This is a true gift to have!
      • check the security of your passwords/logins to all financial accounts, and change them if you have not done so recently (and make them all different).
      • if you have not yet done your taxes, consider filing them. The CARES Act extends the tax filing deadline to July 15, but there is no reason to wait if you have time to complete this.
      • have a discussion about potentially cutting some of the recurring spending charges. Do you need all of the subscriptions/streaming services?
      • check your employer retirement savings account. If your employer offers it, are you getting the entire match offered? Increase to at least as much as that, and maybe one more percentage.
      • consider refinancing your mortgage, since interest rates are very low now.
      • look into refinancing your student loans (but if you have federal student loans, do not take action until September, as payments–and interest–are frozen until then.) Read this for more details.
      • check your insurance coverage on cars, house, and anything else, and consider making changes or even changing companies to save money, improve coverage, or both.
      • if you do not have a dedicated place, such as a fire-safe box, safety deposit box, or other secure location, for important documents (passports, birth certificates, your “important” file/binder, and other key items), obtain one, and collect things into one place.
      • check your will and see if it needs to be updated, or explore completing one if you do not have one.
      • Set some money goals for the next year:
      • for example: increase my emergency fund savings to $5,000
      • for example: pay off an extra $1,000 on student loans in 2020

      actions to do with/for kids still living at home

      • open a 529 plan for your kids.
      • teach your kids how to do online banking
      • if your child has income, help them open a Roth IRA (usually) to set aside money to grown tax-free for retirement.

      There are countless other tasks you could add to each project type, but this list get you started.

      A few final notes:

      Keep track of what you did accomplish—a “ta-da” list of all the things you did do can be very motivating. And that list can be helpful when you plan your next money health day.

      Make your money health day a cheerful time. Yes, really! Even for people who are not obsessed with personal finance.

      Try to have a treat when you are finished with your money health say—eat a nice meal (perhaps ordered from a local restaurant during this at-home time); watch an entertaining movie, and just relax and celebrate all that you accomplished.

      Have you planned a money health day? What would be on your list to accomplish?

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        The 5W1H of Checking Your Retirement Savings

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        This post is part of the 2020 The Clarity Project, a yearlong series of challenges to get organized and simplified with money. Read about the project at this introductory post here.


        This Week’s SAVE Challenge: Check your retirement savings and your contribution rate. Bonus: increase your contribution by one percent (or more!). Here are the 5W1H (the 5 Ws and the 1 H) to explain about retirement savings, for people of any age.

        WHY should you check your retirement savings?

        We all know we should do things that are good for our future selves.

        Future you will thank you for doing the right things when you are younger: eating right, exercising, focusing on healthy relationships, developing good work habits. For many of those areas, you have to do or make decisions every day to practice those good habits.

        Future you will also thank you—most definitely—for having set aside money so that when you are older, you have options and freedom.

        The great thing about saving early and automating the process is that you do not have to focus on it every day, or use willpower to force yourself to save. Once you set it up, the savings will automatically happen, and the money will make more money for you (thanks to the magic of compound interest).

        Checking your retirement savings accounts this week is a great way to see where you stand right now, and how much you are currently contributing to your retirement savings, and bump that number up if you can.

        WHO should have retirement savings?

        Nearly everyone is eligible to put money into some kind of retirement savings, usually (but no always) if you have income. 

        If you’re older, you should definitely have–and be checking–your retirement savings regularly.

        But if you’re young—and I mean as young as a teenager with an after-school job young—you still should have retirement savings.

        Even if you don’t have income (in certain circumstances), you can still contribute to your retirement savings.

        For instance, if you’re a stay at home mom (or dad), the income of the spouse who works outside the home can be used to save for the stay-at-home parent.

        WHAT are some types of retirement savings?

        There are many, many different ways for someone to save for retirement. I won’t cover all the ways, but I can share the main ones, some ideas, and offer some resources for further reading.

        Employer-sponsored plans

        If you have a W-2 job, meaning you work for someone else or a business, school, or non-profit, or the government, you likely have a 401(k), 403(b), or other savings or opportunities.

        Taking advantage of this is a no-brainer, especially if the employer offers a match. That means if you put in $100 in your 401(k) or other account, your employer will “match” that amount up to a certain percentage of your income. This is a guaranteed 100 percent return on your money. Set aside money for retirement here first.

        Self-employed plans

        If you are self-employed, there are a lot of different options.

        If you are young and your income is not too high, you should strongly consider a Roth IRA. I have encouraged all my kids open Roth IRAs, as it allows them to put aside money now, when they owe little to no taxes, and the money will grow tax-free forever.

        With the power of compound interest, you can easily save for the far-away future in a way that will benefit you much more than the amount you are saving right now.

        For further reading: Nerd Wallet has a great guide to saving for retirement. Here is the section on different types of accounts.

        WHEN should you check (or start) your retirement savings?

        This week, take a few minutes to log into your retirement account at your employer. If you do not know how or do not have the login, find out how to do so this week. Then, keep your login handy (and secure!). A bonus here would be setting up two-factor authentication or similar security for the account(s).

        As you will hear from me a lot this year, it is never too early (or late!) to start saving.

        This goes double for retirement savings, and triple for the retirement savings vehicle of a Roth IRA.

        WHERE should you have your retirement savings?

        If your employer offers a 401(k) or similar account, much of your retirement savings will “live” there. But many people will benefit from a separate account for retirement. This can be helpful for such things as Roth IRAs or prior employer “rollovers.”

        If you do not yet have any retirement savings accounts, this mission may take longer than the five minutes. But it is 100 percent worthwhile. Start with your employer and see if you can be part of this benefit.

        Some people may have one without knowing it, since many employers have adopted an “opt-out” model for retirement accounts. That means that employees are automatically enrolled in the company 401(k) and some percentage diverted there (along with a match, if offered). This is an improvement from the prior “opt-in” model, in which employees have to actively sign up to participate.

        If you are self-employed, or if your employer doesn’t offer retirement savings, explore opening up your own IRA (ideally a Roth IRA!!!) at a low-cost online brokerage. It’s easier than you think.

        I have accounts (of varying sorts at three of the major low-cost brokerages: Vanguard, Schwab, and Fidelity. I find them all pretty easy to navigate and work with for questions or rollovers (for example, from previous employers).

        If you are opening a Roth IRA for a minor child, the process is a little more complicated. That’s because the account will have to be under your brokerage account. I will explain more about how to do that later in the year.

        HOW should you keep track of your retirement savings?

        I wrote about tracking your net worth here. As I talk about, using a free online software like Personal Capital can be worthwhile.

        You can also put together a simple spreadsheet. I talk about that in my net worth post here, but to briefly recap:

        Your net worth calculator should have two sections: assets & liabilities. Your net worth equals assets minus liabilities.

        Assets include anything of value that you would like to include:

        *retirement accounts

        *value of house or car(s)

        *any other savings accounts

        Liabilities include any debts you owe:

        *mortgages or car payments

        *student loans

        *personal loans

        *credit card debt or other debt

        Now subtract your liabilities from your assets, and the result is your net worth.

        It might be negative–this can definitely be the case for young people who have student loan debt. Don’t worry! Just seeing that number change from less negative to positive over time will be a great motivator.

        Tracking your retirement savings is a great way to get and keep motivated about your long-term financial goals. It can even inspire you to start saving more intentionally for short-term goals. We’ll dive into short-term goals & savings next week. Stay tuned!

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          THIS POST MAY CONTAIN AFFILIATE LINKS. PLEASE SEE MY DISCLOSURE FOR MORE INFO.