Money Habits Parents Can Help Their Young Child Build with Sam X Renick, Author of Sammy Rabbit
In this financial idea-packed episode, Sam X Renick shares many of the ways he recommends parents approach financial education with their children, starting as early as 3 years old. Whether you’re living what you preach or not, he says, never let advertisers be the principal financial teachers of your children.
- By the age of 3-5 years, children are already asking money-related questions, so it’s time to start talking to them about finances.
- Parents too often underestimate their young child’s ability to grasp financial concepts.
- Don’t force children to articulate complex financial ideas
- If parents don’t teach their children what they think is most important about money, outside forces such as advertisers will.
- Start with the habit of helping children to save. Besides its personal finance aspects, a habit of savings teaches delayed gratification, discipline, and goal setting.
- By 10 years of age, lessons about choice-making and even the risk and reward concept of investing might be appropriate.
- Even parents struggling with their own financial behavior are not hypocrites when they try to teach financial principles to their children.
- Habit formation is central to Sammy Rabbit’s messaging.
- Recommendation to put 50% of income increases toward investing to accelerate financial freedom.
