Moms Can Be Money Mentors
Recently I had the good fortune to get to speak with Jennifer Sahady, a money expert, and TEDx speaker, specializing in financial wellness and financial empowerment and someone who emits warmth and passion about helping people feel more comfortable with the topic of money. One of the goals of our Moms as Mentors Make It Count! program is to help lay the foundation for familial conversations about money. We asked Jennifer our biggest questions related to how moms and other caregivers can be “money mentors” for their girls.
At what age should you start talking to your kids about money?
”Now is always the best time! Did you know children start learning money lessons from you as early as 4 years old? It is incredible what these little sponges absorb and how quickly. This is a great opportunity to review what you do and say when it comes to money and actively choose what you want your child or children to learn.”
How do you teach them about saving and spending?
”There are two main ways to teach children about saving and spending; one is carefully thought out lessons and the other is your statements and actions which they will follow. For lessons, you can actively involve children in decision making and prioritization by asking them to pick which snack they want with two equally priced snacks or what toys they want with toys of different values - for example showing them one more expensive toy or device versus five less expensive options that add up to the same cost. In action, you can share your decision making process out loud 'I have $100, but I don't want to spend it all in case I'm forgetting something, so I'll only spend $50.’”
What should I do if I'm uncomfortable talking about money in general? And if so, how can I talk to my kids about it?
”If you are uncomfortable talking about money, congratulations you are normal! Recognizing your comfort levels and working on that first, will help your children too. Start with yourself. Ask yourself some probing questions and see if you can grow in this area. Why do you feel uncomfortable talking about money? What can help you remove that stigma? What are the downsides to talking about money? What am I missing out on, by not talking about money?”
What is the most important topic(s) to cover with my kids?
“This may surprise you, but in a rich area of essential topics like credit, compounding, and prioritization, to me, the most important topic is that money is just money. It is essential but it isn't everything. If we can help uncouple money with love, success, power, and accomplishment we can give the next generation an incredible gift.”
What are your thoughts about giving your children allowance?
”Ah, the allowance question! To each their own. I grew up without an allowance, but with an opportunity to earn money and I liked that system. My parents helped me see a connection between what I wanted and how to get it. It was empowering and it immediately immersed me in managing my own money at a very young age.“
What's the one thing you wish your parent(s) had taught you about money when you were younger?
”This is a tricky one. All parents want better for their children than they had themselves and yet parents cannot teach what they do not know. My parents were experts in earning and making the most of each dollar. Those lessons have served me well. Later I learned about investments, investment accounts, taxes and tax minimization strategies and that would have been incredible to learn in my teens. That's why teens and young adults are one of my favorite groups to work with.”
What do our kids need to know today about money that we didn't need to worry about when we were growing up?
”The world today is far more complex and accessible, which is amazing and terrifying. Teens can buy stocks and cryptocurrencies. They have the technology to follow the markets 24/7 and be influenced by people from anywhere in the world. What hasn't changed is that they value the approval and advice of their peers more than other sources. That is why speaking with them as early as possible, especially in those early years when they listen sometimes, is essential. Build healthy, critically thinking children to prepare them for this modern world. “
Should I be teaching my kids about investing?
“YES! Your children will learn about investing. If you actively teach them, you have the opportunity to frame the information and deliver it in an unbiased way. If you don't feel comfortable teaching them, you can partner with other parents and create your own money class with the help of a money educator.”
What resources exist to help me become more comfortable talking about money?
”There are lots of books out there, I will soon have one too! Invest some of your time in reading and set aside some time to make a plan on how to introduce these important concepts to your child or children. You may be pleasantly surprised that you learn something too!”
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Jennifer Sahady is a money expert, and TEDx speaker, specializing in financial wellness and financial empowerment. Jennifer has 17 years of experience in finance and education. In that time, she has helped more than 10,000 individuals across the country. She is known for being a friendly face in finance and for getting things done while having fun. Today, Jennifer delivers keynotes, group presentations, workshops and consulting to businesses, schools, professional organizations and individuals across the world in-person and virtually.
Connect with Jennifer at https://www.linkedin.com/in/jennifer-sahady/
Learn more about Jennifer at www.jennifersahady.com
See Jennifer’s 2020 TEDx Talk on Money in Relationships at https://youtu.be/CGttIHnfBbE