Six tips for educating your kids about personal finance from the Founder & Chief Dad of FamZoo.com. Teach your kids good money management habits with our virtual family bank.

1. 6 Tips for Raising
Cash Savvy Kids
Bill Dwight
Founder & Chief Dad
FamZoo.com
APRIL 28, 2010
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2. 6 5 reasons why I care about kids
OK, the spotted
dachshund
doesn’t count!
Will they be ready for the real world?
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3. What does “cash savvy” mean?
To be wise with your money.
The Rewards:
• Independence
• Balance
• Peace of Mind
It’s not about being “rich”.
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4. My top 6 cash savvy tips
1. Practice, practice, practice!
Practice
2. Have a system
3. Do the math
4. Create balance
5. Insist on accountability
6. Promote passions
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5. 1
Seen this look before? PRACTICE
I THOUGHT I
When I was TOLD YOU
your age, I… TO…
Brain not processing Blah, blah,
blah…
Eyeballs rolling
Kids learn by doing, not lecture.
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6. 1
Let your kids practice… PRACTICE
• Spending their own money
• Making a budget
• Saving for a “want”
• Paying off a loan
• Running a “business”
• Investing for the future
• Giving to others
…and let them fail too.
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7. How would you feel about an employer 2
SYSTEM
who “forgot” your paycheck?
Or a banker who “lost” your money?
My parents
keep forgetting
my allowance.
So lame…
Not mine. They
have a system!
Kids don’t like unreliable behavior either!
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8. 2
Set up a system to model the SYSTEM
importance of being…
• Consistent
• Efficient
• Organized
• Transparent
Read “The First National Bank of Dad” by David Owen
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9. Do you make decisions based on 3
MATH
facts or emotions?
Be calm and do the math.
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10. 3
Teach your kids the simple math MATH
behind…
• budgets
• compound interest
• loans
• credit cards
• business models
Don’t forget to look at the whole equation!
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11. Do you feel pulled in multiple 4
BALANCE
directions?
LIFE WORK
Balance is a skill that requires practice.
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12. 4
Help your kids find their balance BALANCE
• Needs / Wants
• Now / Later
• Me / Family / Community / Environment
The earlier, the better (but it’s never too late!)
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13. Are you shielding your kids from 5
ACCOUNTABILITY
life’s bumps and bruises?
The real world can be very unforgiving.
Bailouts aren’t always available.
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14. 5
Hold your kids accountable for their ACCOUNTABILITY
inevitable transgressions…
• overage charges
• chore lapses
• fines & tickets
• (nontrivial) mistakes
Texting overage charges
Broken cell phone Speeding Ticket
But cut them some slack too… they’re kids!
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15. 6
Have you found your passions? PASSION
KIDS
SOFTWARE
MENTORS
Bring your passion to your work.
Bring your work to your passion.
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16. Help your kids find, develop and apply 6
PASSION
their passions
It’s not about your passions, it’s about theirs.
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17. THANK YOU FOR LISTENING!
• Want to reach me?
info@famzoo.com
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www.famzoo.com
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