112 | Jennie Boyer | Raising Money-Smart Kids In A Money-Dumb World

Show Summary:

Did you learn about money when you were a kid?  Do you remember what that looked like?  Do you feel as though you were financially literate when you started adulting? In episode 25, we spoke about our childhood money memories.  Today, with the help of our good friend Jenny Boyer, we are discussing how to raise money-savvy kids? Allowance, jobs, saving, giving, college, and more on Episode 112 of The Fat & Broke Podcast!

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Boyer Financial Plan:

Phase 1:  Age Kindergarten to 11 y.o.

Child responsibilities:

1. Allowance starts in Kindergarten and ends at 11th birthday.

1. $1 for every year old. Ex, $6/mo for a 6-year-old
2. Stops on their 11th birthday.

2. Learns about needs v. wants.

3. Child has the ultimate say for what they spend their money on.

4. Family Chores are expected.

Parent contribution:

1. Extra jobs paid for.

2.$200 for school clothes - they learn to budget, if they want more - they pay for it.

3.“Boyer Benefits Package” starts in Kindergarten:

1. 100% savings match
2. Pay a late fee of $1/week if we are late paying allowance - teaches them about late fees
3. 6 free Therapy Sessions to fix mistakes we make :)

Phase 2:  11 y.o.-15 y.o.

Child Responsibilities:

1. Everything from the previous phase.

2. Start working bigger jobs for money

1. For neighbors: walking dogs, mowing lawns, babysitting, etc.
2. Same for us.  If we are doing service either church or community, they babysit for free.  If we go out on a date we pay them.
3. Bigger Life Skills training happens here like grocery shopping.

3. They help pay for bigger things:

1.  50% of camps up to $200.
2. Broken/lost retainers, etc.

Parent Contributions:

1. Teach about Loans

1. Will give HIGH-interest loans (50-100% - make it painful)

2. Teach about Contracts (*Rachel/Emily loan shark story)

3. Help them find employment.  Teach them about being a good employee.

1. Pay for training
2. Talk to neighbors
3. Come up with jobs.*They are NOT allowed to whine if I am paying them.  

Phase 3:  16 y.o. - high school graduation

Child Responsibilities:

1. Everything from previous phases.

2. Pay for gas, oil changes in cars. (motivates them to get a job, and budget $, make/keep mechanic appointment).

3. Call insurance to see what will raise premiums - they pay the increase for a ticket or accident.

Parent Contributions:

1.$250 for school clothes

2. Pay for beat-up car 

1. Insurance
2. Maintenance (they must take it to our mechanic for oil changes.  He keeps an eye on the car for us.)

3. Pay for extracurricular fees/equipment.

4. 100% savings match ends when they graduate from High School.

5. *If we were good like Gary, we would teach about investing during these years…

Higher Education Years: (These sums don’t change if they get married.)

Year 1 child:  All clothing, extras, fun money, textbooks, college laptop, same car expenses, dorm decorations, etc.

Year 1 parent: All housing, Tuition. (We want them to get used to college and the social life the first year.)

Year 2 Child:  Everything from year 1 plus ⅓ of the expenses.

Year 2 Parent:  

1. We have 3 more years we have budgeted for. 

Thanks for listening!