By Alec Lindenauer, Chief Allowance Officer
I’ve been teaching people about money to some degree since 2005. Since then, I’ve helped guide plenty of people, and each time is unique and fulfilling because I genuinely feel it’s my responsibility to share what I know with people who need help.
Unfortunately, in all that time, I have yet to meet the person who feels they were taught finance in school in a way that made them feel prepared for adult life. Not one.
And we’re talking since 2005 here.
That’s why I often reiterate that we parents can’t rely on schools. We caretakers must take on the burden of teaching personal finance ourselves. Before starting Cents of Responsibility, I was just shouting this into the wind. At least now, I have an outlet and mechanism for change.
So what’s stopping parents? Why aren’t they teaching their kids more about finance?
Time and time again, I see the same top three reasons firsthand:
- Parents think they don’t know enough about finance.
- Money lessons aren’t consistent.
- Parents simply haven’t started teaching their kids.
Let’s take these one at a time, and I want to tell you what we are specifically doing about each at COR.
1. Perceived Lack of Financial Knowledge
Notice I shoved the word perceived in there. Why? Because almost every parent has the financial knowledge they need to be the point-person in their kid’s journey towards financial literacy. Many just think they don’t.
I’m not teaching my kid to be a hedge fund manager. Or a titan of industry. I’m just providing a platform so they can practice mindful spending, saving, investing and donating. That’s it. I just need a way for them to practice.
Rare is the parent who can’t lend some wisdom into these categories. OK, investing … I get it. That can be intimidating for a lot of parents. But here’s the rub …
First, you can always skip that part. I don’t recommend it, but you can. Second, it doesn’t take much to learn investing on a fifth grade level. Here’s a secret: Most investors probably operate on that level.
There are a TON of resources to get you over this hump. Yes, COR has a bunch, and there are others out there. Our flagship course is specifically designed with step-by-step video instructions for parents of elementary-aged kids. Specifically, that’s one thing we’re doing to help parents along the path.
But some people learn better by reading. GREAT! There are a ton of books out there. Buy one made for teens and skim it.
The bottom line is: I can assure you … you are the best person to teach your kid.
2. Lack of Consistency
This is where schools crash and burn. They teach one class in 10th grade and expect kids to grow into money savvy adults. Are you kidding me?
One parent just told me her 12-year-old didn't know how many cents a nickel was worth. How’s that for inconsistent teaching?
So we know we can’t rely on the consistency of school. What about at home?
Sadly, many parents report starting an allowance routine and then not keeping it up. It’s not because of a lack of results. It’s simply because of today’s world of over-scheduling and busy lives.
Frankly, that happened to me. I started out strong each week, and then life got in the way. After many missed weeks, we switched to monthly. As a family, we turned the first Sunday of every month into Money Sunday. It finally stuck, and we haven’t looked back.
So here’s what we’re doing to help parents be more consistent:
We’ve branded the first Sunday of every month as Community COR Day. That’s the day our Cents of Responsibility parent community can rally around as their own personal allowance day.
Yes, it’s COR Day because those are our initials, but really because that allowance ritual is the core of a solid money teaching strategy. It’s the foundation upon which everything else is built.
So keep an eye out for our countdowns to Community COR Day. We want the day to be meaningful, and for those reminders to help with your planning … all in an effort to help with consistency.
3. Not Starting
There’s the old adage, “Half the battle is showing up.” So true.
How are you supposed to teach your kids about money if you don’t start?
Unfortunately, many parents know they want to do it, but they don’t get around to it. Again, most often it’s because of reason #1 above.
Not starting is the absolute biggest hurdle I’ve seen time and time again. Like the fantastic Nike slogan says: JUST DO IT.
So what are we doing at COR to help parents start?
Some parents are all in on our starter course. But, hey, we get that might not be for everyone right off the bat. Some parents need a kick in the pants. A challenge.
So here it is: Starting now, I’m challenging you.
Specifically, I challenge you to start allowance with your child on the first Sunday of this coming month. That’s right … I challenge you to join us this coming Community COR Day, and then send us a picture on Facebook or Instagram. Hell, you can even just email it to us at [emailprotected].
And if that challenge isn’t enough, we’ve built a 5-Day Allowance Challenge to get you going. All you have to do is sign up and sit back. Every morning, you’ll get an email with a link to a video assigning you a specific task. Each day then builds upon the next, so you’ll be ready for Sunday.
Are you in?
If you want to teach cents-ibly, I hope you are.
Just Do It,
Alec
