167 - Make Your Kids Money Smart with John Lanza

On this episode, I chat with John Lanza. John is a well-known expert on youth financial literacy, and the co-founder of Money Mammals, a company on a mission to help parents raise money-smart kids. He is also the author of The Art of Allowance, a book that teaches parents how to set their kids up for financial success at an early age. John has spent over a decade talking to parent groups and credit unions about the importance of raising money-smart kids. He teaches the value of starting money-smart conversations early to empower youth and families to be wise about their finances. In this conversation, John shares the dos and don'ts behind an allowance that works and sticks. He talks about the biggest mistakes parents make when they teach their kids about money and the best age to start teaching your kids financial literacy that will last them the rest of their lives. We discuss his techniques to help children distinguish between needs and wants to help raise non-spoiled financially autonomous children. John gives great advice to parents with teens who compare themselves with peers, to better understand the value of larger purchases. If you have kids in your life you'd like to start teaching the art and science of money, you'll wish to listen in. John’s Three Jar Method When it comes to starting your children’s financial journey, John has a three jar method as a starter financial framework:  The Save jar - teaching children to pay themselves first   The Share jar - to understand charitable giving The Spend Smart Jar - giving children spending power to buy small items   John’s Three Fundamental Principals All parent's frameworks are not exact, but there are three core principals that should be a part of every plan: Distinguishing between needs and wants  Setting and saving for goals  Being intentional about choices and making money-smart decisions Using the S.M.A.R.T Goals Method  When teaching children about the value of purchases, using this acronym can help children understand how to set a goal for saving and successfully reach it while getting a feel for planning to reach their goal. Specific - setting a specific goal to reach Measurable - being able to measure progress to reach the goal Attainable - understanding what’s attainable Relevant - Is the purchase relative to their wants or needs Time-based - understanding the time it takes to reach the goal   For show notes and more info visit: http://wealthywellthy.life/167