Teaching Children Money & Finance
This article was first published on www.askmissheard.com
“You know the term, ‘woke?’ Yes, that is exactly what it means to be money smart. It means that we are giving our children a solid foundation about the knowledge of money.” This was just one of many explanations Rashaun made relatable to us on last week’s conversation.
Rashaun Harris, Financial Coach, Marketing Guru, mother of soon to be two, and bonus mom to one visited, Ask Miss Heard’s weekly LIVE show and dropped mega gems on the topic, “Teaching Our Children Money & Finance.”
Smiling from ear to ear she enlightened us on how she grew into an expert about money for herself. “When I was young, I thought that my family was rich. I mean we did everything. We always shopped and we always went on vacation. But when I went to school, I was attracted to my friends’ parents – their lifestyles. So I asked, ‘What does your dad do?’ The answer was always, ‘they owned this business and that business.’ I decided then, that I wanted to study business and do the same.”
Rashaun studied Marketing graduating Cum Laude from Southeastern Louisiana University in Hammond, LA. Upon graduation she went on to work for two Fortune 500 companies in their marketing and sales departments running circles around corporate America.
But with feelings that corporate America was only the floor for her, she bet on herself and her abilities when she took on the challenge of owning and operating her own division of a financial service business. She then licensed herself in investments, annuities, and life insurance. Rashaun’s business grew over six figures in revenue within two years. Through developing strong relationships and a grassroots social media approach she is now an expert in all things money.
Rashaun went on to explain that we don’t realize how our behavior and how we speak about money transfers directly to our children. “If you are in a tight situation with your funds, don’t complain about it out loud. Children begin to have negative attitudes and take on the mindset of deficit and not abundance.”
When asked about how to get started she gave us the magic word “allowance.”
“Before we begin to give allowance, it is important that this habit become one that is consistent. Allowance rates can match the child’s age so this should increase every year. Also, allowance should not be taken away as a penalty or punishment. If the child makes a bad grade in school, do not take away their allowance. This can create negative thoughts around money and how money works in real life.”
The conversation continued with suggestions for teaching kids money through technology, how to practice shopping with your children, and introducing entrepreneurship. Rashaun also gave these tips for what we should be doing at different age levels.
- Ages 3 to 5: Explain what money is. Use cash around preschoolers when you go to the store because plastic is too abstract. Let them collect coins in a clear container so that they may see their money grow. Show them that five pennies equal a nickel.
- Ages 6-10: Start with a weekly allowance at age six! Take your child shopping with you to give them hands-on experience making need versus want decisions.By age nine, children can grasp the basics of budgeting. Open a savings account for them at your bank if you haven’t already.
- Ages 11-14: During middle school children are presented with peer pressure from friends and advertisements. It is important to hammer the idea of saving to pay yourself first and smart shopping of needs versus wants. This is also a good time to introduce them to the stock market and compound interest.
- Age 15-18: At this time you are thinking about college and the possibility of your child moving away from home. You are practicing those foundational skills. If your child has a part time job discuss tax related issues. Also, encourage them to set aside money for college expenses. Reinforce the negative power of compound interest on credit card purchases!
Our talk with Rashaun Harris was nothing short of informative. If you would like more information (she has all these gems in a PDF booklet), or want her to teach you more about money she can be reached at [email protected] or her Instagram @_aboutherbusiness_.