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!
Boyer Financial Plan:
Phase 1: Age Kindergarten to 11 y.o.
1. Allowance starts in Kindergarten and ends at 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.
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:
Phase 2: 11 y.o.-15 y.o.
1. Everything from the previous phase.
2. Start working bigger jobs for money
3. They help pay for bigger things:
1. Teach about Loans
2. Teach about Contracts (*Rachel/Emily loan shark story)
3. Help them find employment. Teach them about being a good employee.
Phase 3: 16 y.o. - high school graduation
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.
1.$250 for school clothes
2. Pay for beat-up car
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:
Thanks for listening!
Jennie was raised by well meaning parents who taught her no financial, parenting, or relational skills. It has become a passion of hers to teach her five kids (and any other kid/parent who will listen) life skills so they don’t have to struggle the same way she did. She and her husband Marcus have raised some pretty incredible and independent kiddos so far… (If she does say so herself.)