5 Money Lessons For Your Kids
I late chatted alongside Art Rainer together with nosotros talked close how nosotros lavatory instruct our children nearly money.
It was a groovy conversation alongside some elementary takeaways that I hope yous relish!
You tin scout the video or read the transcription below!
Bob Lotich: Hey everybody, I hold got Art Rainer hither today together with I’m really excited because he has written a really cool mass called The Money Challenge, which I picked up together with I’ll tell yous to a greater extent than almost that inward a scrap, but nosotros’re going to utter virtually some money lessons that you lot should be teaching your kids. Art wrote a blog post goodness-nigh this that I thought was really practiced thus I thought we could receive got a piddling give-as well as-remove nigh it but we’ll acquire into that in but a s. But Art, give thanks you for taking some 4th dimension to hang out today, blood brother.
Art Rainer: Thanks hence much for having me. I appreciate it.
Money is the final result of slice of piece of work
Bob Lotich: Yeah, it’s my pleasance. And so Art wrote this book, called The Money Challenge as well as I really similar it because I don’t know if yous give the axe tell, but it’s pretty curt. It’s non a existent large book thus you lot tin give the axe acquire through it really similar shooting fish inwards a barrel too it’s really practical but also like a lot of spiritual depth to it. Just a really skillful volume. So I definitely recommend checking that out. And similar I said, nosotros’re going to verbalise almost money lessons you lot should live teaching your kids. And I have a 5-year-onetime at i time together with we’re but kind of getting started on this. And I have got an almost 2-yr-onetime, we haven’t really touched on much yet with her, but our 5-yr-onetime, we’ve been teaching him some things as good as anyway, I exactly wanted to mouth a piffling fleck most some of the materials alongside you lot, Art. So, my kickoff enquiry hither or idea that you lot mentioned inward this blog post service is that money is the final resultant of slice of work. And this is a unusual concept to a lot of people these days. So tell me a piddling chip, elaborate on this a picayune flake for me.
Art Rainer: Well, I receive iii kids of my ain. Ages eight, 5 as well as ii thence this i comes out of my have life experiences that money is the resultant of work because my ii oldest boys seem, at times, to think that money only grows on trees too that whatever they wishing they dismiss get past times times precisely yell for. And that it’s okay to waste product thing nutrient. It’s okay to respite their toys, that inwards that location’s really no consequences. That it’s but nota big deal because you tin send away e'er simply get something else. That yous tin e'er only get some other toy, you tin send away always acquire more than than nutrient. And hence it was birthed out of that persuasion. My married adult adult female as good as I are constantly telling our boys, hi, y'all know, we really have to slice of piece of work for food. You take hold to slice of work for these things, that they simply don’t simply appear out of nowhere. And if that is not taught as a tike grows, as well as then they may assume that well, yous don’t really agree to piece of work very hard to really earn a living, which give the axe live detrimental, going into college alongside that special mindset. It tin can resultant inwards laziness as good as entitlement.
Bob Lotich: Yeah, I hateful, similar thus much of our social club, yous tin tell, you tin dismiss reckon adults who never learned those lessons every scrap a kid, too it’s similar i time yous get into adulthood, I think at some point it’s going to click that you lot do concord to really do some piece of work. But, I think the dot, the dependence on credit cards together with the dependence on a lot of these things that we’ve created as Americans to satisfy our every demand inwards add-on to want whenever nosotros want. Yeah, I but think these are really skillful together with of import lessons that we should be teaching our kids. So that’s definitely ane that we’ve started working amongst our boy on together with you know, in add-on to but trying to start incenting him. And at this dot, elbow grease he’s lone 5, he doesn’t really understand the concept of money. In terms of the value that I put on it, he nevertheless sees it every fleck a money too as newspaper, you know what I think? But, nosotros’ve done something amongst a jar that he fills upwardly alongside legos together with as well as so when he fills it upward with legos, he gets to locomote acquire a toy. So that’s sort of his shape of currency right similar a shot. And that’s worked really good to but start teaching him this persuasion of, yous know, you do a chore, yous tin set a Lego inwards the offend too together with so that’s going to acquire closer to really buying something. Are at that location whatever practical things along those lines that you guys hold done that withdraw agree been helpful?
Art Rainer: Well, talking close it on a pretty regular footing is i, together with identifying those times when you lot tin sack’t speak most it has been important to us. As you lot would inwards all likelihood await, nosotros don’t shy away from the money conversation inward our household. It’s something that we pecker almost on a pretty regular ground. We do chores. We receive got chores every weekend for our kids. And correct straightaway they’re trying to salve upwardly for, I believe it’s some type of Xbox that they want. And we don’t do a lot of video games inward our theater, but they really want an Xbox. And thence nosotros said, okay, goodness if you wishing this, then yous’re going to have got to piece of work for it. This is non going to simply demonstrate upwards. So they receive their finish, they know how much money they tin give notice create each calendar week. And hence they are working toward that terminate. But yeah, for students specially as they acquire older as well as every chip they acquire into college, just to sympathise that inwards tell to acquire money, it takes slice of piece of work. Like, it’s non some swiping a credit carte, it’s non nigh logging into a video that promises to brand you lot $1 one G M overnight. That inwards that location’s real slice of work involved. And thus, to abide past times that concept.
Money is finite
Bob Lotich: Yeah. And inwards this weblog send service, the seat out 2 signal you lot made was that money is finite. And this is another 1, that man, I’ve seen some adults, I’m for sure you’ve heard from some to who have non learned this lesson yet. Tell me your thoughts on this.
Art Rainer: Well, you lot were inwards the banking manufacture. I was really inwards the banking industry every bit sound. So I’ve seen many adults that select concord non learned this exceptional lesson that ane time the money runs out of your invoice, you lot don’t hold got whatever to a greater extent than. And it patently leads to debt, to overdraft charges, all these bad things that come upwardly upward along with spending to a greater extent than y'all really have got. Now if you assume that or if you teach somebody that money is finite, that it’s limited, the skilful matter nearly that is that it forces them to create this matter, as good as it’s a bad tidings, but we’ll verbalize nigh it. It’s called a budget. It forces them to think through how to attention their finances good. For kids that are teenagers as well as college students, exactly the concept that, howdy, yous know what? It’s non an unlimited resources, that at that spot’s gonna come a time when yous will run out of money. If you produce money, you lot testament eventually run out of it if you don’t maintain rails of your spending.
Bob Lotich: I think the biggest thing for me with all this is the challenge for us in the 21st century, I think, in this regards to all this, is amongst credit cards. Because they are tools that are a role of our guild, whether we like it or non, it is a tool that is almost used past everybody inward America as good as many other offset world countries. And it’s only 1 of those things where, nosotros tin lavatory deny too contend against this persuasion that money is finite for a long, long fourth dimension if we play our credit carte game good, you know what I hateful? And I think we’ve all seen people similar that as good as I think the worst thing is, you know, college too maybe inward the 20s, similar where you tin burn downwards move a long, long time simply getting everything you lot wish as good as buying everything you terminate imagine together with only hold pushing it off farther inward summation to farther downwardly the line, kicking that give notice downward the road further too farther. But at some point, it’s going to catch upwardly. Like, you tin’t do that till you lot overstep away. I intend, assuming you lot take hold a total life, it’s going to grab upward to you. So anyway, inward damage of teaching our kids this, this has been ane where I haven’t had a super not bad chance to learn Alden nearly this yet, but I’m working on it. He’s got a piggy depository financial establishment too hence we’re working on filling this piggy banking concern upwards together with we’ll have got some of the money in his piggy banking concern inwards plus to nosotros’ll go to the store inwards add-on to purchase a toy or something similar that. And this is how I’m starting to instruct them most money a little flake but it is really hard because inward cost of teaching this to a five-twelvemonth-sometime anyway because he knows that I’m yet going to whatever, purchase him a birthday acquaint or purchase him a Christmas introduce or something similar that. And he hasn’t precisely made that carve upwardly connexion yet amongst all this. So how take hold got you lot handled this amongst your kids? Any ideas, suggestions?
Art Rainer: By maxim no. It sounds really, really uncomplicated, but we will say too accept vantage of the hazard to say, no. And we don’t leave of absence it but hanging equally a precisely “no”, you lot only demand to deal with it. But we explicate in add-on to say, no, we flaming’t afford that right now. It shouldn’t live a shameful thing when you lot say something similar that. I know that often it seems like it’s a bad affair to say. There’s shame attached to it that nosotros tin sack’t afford. No, that’s a slap-upwards affair to say to your kid that howdy, nosotros tin’t afford that right directly. BEcause it teaches them something, that at that location’s a ground behind the no, too at that topographic dot’s this stance that at that spot’s going to be times when you lot tin afford things inwards add-on to when you lot cannot afford to purchase certain items. And therefore we tried to hold advantage of when we tin terminate say no, nosotros do that every chip an opportunity.
Bob Lotich: Yeah. That’s really proficient. I really liked that a lot because yeah, it is teaching them the same lesson. The same affair that we every scrap adults need to know, that we’re out of money. You know, it is a no, it but comes from individual else, it doesn’t come upwards from our parents at this betoken. So that’s skillful.
Debt is not beneficial
Bob Lotich: All right. So shape of leading into the following ane is that debt as well as this stance that is non something that’s beneficial equally a whole. And that, especially the Bible, you lot know, inwards our lawsuit, we both are believers, we both understand that the Bible has some things to say around this. And thus tell me a petty scrap virtually how yous’re handling debt with your kids, form of communicating some stuff to them most it.
Art Rainer: Yeah, hence I tin give notice’t say that I’ve actually talked to my kids that much almost debt. I’ve talked to a number of high schoolers, college students, together with immature adults as well as beyond near debt. And where I e'er dot them is really where the Bible starts amongst money too that’s with generosity. So I betoken them to the priority that we concord as believers, according to the Bible, amongst our money, is that we’re supposed to live generous amongst it. We’re supposed to give, it’s the outset affair that we do. And I say, this is ultimately God’s pattern for your money, it’s supposed to be used to advance his kingdom. Now yous acquire to relish it, but you also are using it to advance his kingdom. And if that’s your priority, then things similar debt unfastened flaming inward add-on to hence acquire a hindrance to that priority, to living out too to using your money for what God has designed yous to do inwards summation to with what your money was supposed to live for.
And so I dot them to the ultimate why, why we did it. Because oft I think we sometimes acquire the why incorrect. Like we ofttimes physical process existence financially salubrious as the why: why we need to exit of debt, why we demand to avoid it, why you lot demand to salvage money for retirement, savings line of work concern relationship, emergency funds. But when really those are exactly agency to a much greater terminate. And that’s where nosotros tin dismiss live with our hands broad unfastened saying, God, whatever you lot wishing me to do alongside it, I dismiss do with it whenever y'all want. Wherever you want me to displace, I tin go because nosotros’ve been practiced stewards of those resources. And so I verbalise roughly debt as a hindrance to beingness able to live out God’s blueprint for money too for themselves because we’re designed to be generous. We relish beingness generous. With college students, inward exceptional, it’s explaining to them that the college debt that you’re taking on, those papers that you lot’re signing, that you powerfulness non fully understand what yous’re signing, at that spot are going to withdraw agree pregnant ramifications downward the route. I know it’s weird to think nigh that, that signature on that newspaper, that money that you’re taking is going to foreclose you from purchasing a domicile line enterprise when you lot want to. It’s been known to delay marriages, been known to delay having children. It’s going to live a mega pose out inwards your life. So before you sign that paper, empathize that you are taking on a burden. The Bible calls it a burden. And the Bible also says that even though it’s a burden, you lot’re going to have to pay it dorsum. So it’s not that you lot’re going to live able to acquire out of it. It’s a burden that’s going to live on yous until you lot to pay it off too it’s going to have got pregnant ramifications on your life, it’s going to hinder your dreams that you take hold correct similar a shot.
Bob Lotich: I think the affair for me when I was in college, I took on a decent amount of pupil loans. I think I had in all likelihood $45,000 total. And as a college pupil, I had no persuasion. I experience similar when yous’re going into college, you’re only thinking, I’m going to acquire a practiced chore equally presently as I exit together with I’m going to pay things off inwards a bridge of years as well as it’s no large deal inward summation to whatever.
Art Rainer: And most students think the same way. It’s non similar they are going in in that location thinking “I simply wanna take on a bunch of debt” That’s non what they are thinking. They are unaware of the long-term ramifications for that signature together with taking on that money.
Bob Lotich: I think more than at introduce than you know, when you lot too I were going into college, the hope of having a fantastic chore afterward getting your college grade. I hateful, apparently, depending on what theme y'all’re inward, it’s but a existent different affair. And I didn’t acquire a goodness chore afterward college. I mean value, I really, was form of stuck inwards a dead terminal task too was having a hard time getting out. I think inwards that location’s simply a lot of people finding that same thing too I would simply abhor to be somebody going to schoolhouse, spending $100,000 on college right instantly, precisely thinking they’re going to walk out, acquire a nifty task, together with everything’s going to selection out attention of itself, yous know, really rapidly.
Art Rainer: More oftentimes than non, it doesn’t only choose attention of itself. I hope that everybody gets a peachy task out of college. I hope that happens for them. The reality is that most are not going to have got that experience. That’s non most people’s experience. Even when we went to college, my starting 4th dimension undertaking out of college was non glamorous past times whatsoever stretch of the imagination too did non pay much at all. Which was typical. That’s the typical route most people, most people pick out.
Instant gratification leads to delayed financial wellness
Bob Lotich: So side past side on the list is this view that instant gratification leads to delayed financial wellness. And no dubiety nosotros live inwards an instant gratification society. I think we all know that. I recall hearing Jeff Bezos verbalise nearly this inward improver to pretty much the cardinal to their success has been “how do nosotros give people just what they wishing, everything they strength out imagine, every bit fast as they perchance want it.” And he’s similar, people are e'er going to want it faster, quicker, and clearly that’s working as their concern model. So anyway, tell me how this applies to teaching our kids around money.
Art Rainer: Well, I flame locomote dorsum to the illustration of my kids, saving for the Xbox. Ironically, my kids wishing the offset generation Xbox. I don’t know why they want that i, but that’s what they’re going for. So yeah, it’s cheaper, which is peachy. But teaching them that it takes 4th dimension to salve upward, to earn something. That intelligence earn, that at that location has to live peel inward the game, that at that location’s fourth dimension betwixt want as good as fulfillment.
I tin send away’t say that every 4th dimension that we’ve done this, that they’ve followed through together with that they take hold attained their destination. I had a reading reckoner computer programme for my oldest son. I said, if you read hence many books, if you lot do this, thence I testament pick out away concord you lot to a college football game game. But you have to do these things kickoff. So he started out rigid doing it, but eventually, he stopped doing it. So too so, of course of instruction, he didn’t goal upwards going to the game, which was a natural case for non next through. And thus it’s but finding those goals that they at to the lowest degree initially want and providing them a path to attaining that especial finish. And inwards making for sure you follow through with it as a parent. Encouraging them inwards that management too together with so of course if they actually get at that location, create for certain that you make skillful on your intelligence. But uncovering those ways to aid them piece of work difficult towards something that they ultimately want.
Bob Lotich: Yeah, I intend I think nosotros all know this, but element region of this equation also is that we live it out ourselves, yous know, because they’re watching together with they’re paying a lot closer attending inward add-on to thus at to the lowest degree I had whatever idea. Like things they power acquire, they are already picking upward on. It’s similar they know what’s going on and Linda inwards add-on to I aspect for opportunities to only diverseness of allow them inward. We don’t permit them inward on all the unclean details of our finances. But anytime we get a hazard to say, how-do-you-do, we are saving upwardly for this inward add-on to nosotros are waiting for this together with nosotros’re non going to purchase this until we take hold saved upwardly this much money or whatever it is, only to demonstrate them that we’re doing this as well. And that this is business office of being an adult. This is office of, yous know, handling money the correct way.
Art Rainer: I tin’t understate the importance of but talking nearly money inwards full full general amongst your kids. And as you said, in add-on to amongst everything that’s going on inward your life. We speak good-nigh our giving. We give online thus our kids aren’t able to consider us give in the plastic buckets that you lot location money in at church building edifice. So we create sure as shooting that we’re intentional almost talking good-nigh it, that we give to our local church root. We give to some other nonprofits that we’re passionate virtually. So yeah, it’s precisely a normal conversation for our line organization solid unit of measurement.
God is the provider of everything
Bob Lotich: That’s goodness. All correct. This is a betoken I wishing to oral cavity almost it a small chip more than. Just the idea that God is the possessor inward summation to provider of everything. And this is definitely one that a lot of people don’t sympathise. Influenza A virus subtype A lot of adults don’t understand this. And I think if y'all empathize this concept from a immature historic electric current, I think just maxim at that topographic point’s hence much powerfulness inward it. So I’d honey to withdraw listen your thoughts on this every bit sound.
Art Rainer: First, but be careful with telling your kids that God is the possessor of everything because it send away come upwards dorsum in improver to haunt you. I tin’t tell yous how many times I’ve said, howdy, no, that’s dad’s telephone, don’t touching it. Then they’ll say “no, dad, it isn’t your telephone, it’s God’s telephone! Because we’ve reiterated that everything’s Gods as well as together with then he owns it. He owns it all. And hence our kids latched on to that together with they’ll come dorsum as well as say, no, no, no, yous john’t claim it’s yours. Yes, yous’re correct, it’s from God but but give me my telephone!
It’s amazing that we serve a God that, the parable of the talents is the perfect representative of this, when yous regard the main handing over talents, money, to these servants. And, if you notice in the parable, those talents, it never switches ownership. It never says the retainer’s talents. It ever says the primary’s talents. Even when it’s inward their hands, it’s yet the primary’s talents. Of class of written report, when he returns, they paw back what is rightfully his.
One of the pieces I think that we oft missy alongside that story is that it really actually provides, it demonstrates the why for our money. God gives us these resources in add-on to what does he celebrate? When the primary returned, he celebrates those that take hold got essentially expanded his kingdom with his resources. So that main had greater earnings or owned to a greater extent than when he returned than when he had left. And that’s what was celebrated. And therefore it just underscores the importance that God gives us these resources to taste. 1 Timothy vi:17-nineteen, He absolutely gives us everything therefore that nosotros tin sack bask it, but also hence that we tin advance His kingdom inwards improver to that’s ultimately what He’s going to sort of celebrate. And hence it’s all His, too we withdraw agree an incredible award to live able to pick out it too utilization it to touch our community, affect our urban centre inwards add-on to impact the ground for His sake.
Bob Lotich: I think I exactly experience like on a practical plane, the sooner you lavatory grasp that, the amend. My husband was raised inward the church edifice as well as I wasn’t. So she from a young historic menses gave 10% of her income to her church building too merely ever did that. So it was never a challenge. It was never l-50 a touchstone of faith inward most cases for her to give 10% because it was only e'er what she had done. And me, on the other hand, similar going from giving null of my money, on a regular ground to this thought of 10% was similar, that’s huge. That’s a lot of money. You know what I mean? I’m not at all stuck on the 10% because i time ane time again, it’s all God’s money. But I do think that the betoken is that if we are giving consistently, from a immature age, I experience similar it is a whole lot easier to transition to adulthood inward summation to it’s less of an astute variety of a affair that we need to locomote through.
Art Rainer: It is. But you’ve also hitting on the caution inwards that location. I think nosotros should absolutely instruct generosity alongside our kids, together with that it is the priority for our finances. At the same quaternary dimension, we as adults have got to live careful that it simply becomes this habitual thing that we do that we don’t l-50 think nearly because that’s not what the Bible teaches either. The Bible teaches sacrificial giving. And often I hear people say, I’ve tithed all my life. And I know they really haven’t been, I sympathise what they’re maxim, but oft it’s a elementary box checked, that they’ve done their skillful deed past times giving 10%. And that’s non what the Bible commands us to do at all. That is supposed to live an deed of sacrifice. It’s cast of uncomfortable to say that but we reckon that throughout scripture. So we hold got to live careful as well as concord to depository financial establishment check our have hearts as well as where nosotros are amongst our generosity together with whether or not this is but a box checked. Or is it a sacrifice that nosotros’re intentionally making.
So instruct kids to live generous, to concur their money loosely, hands wide opened, prepare to give whenever God prompts. At the same 4th dimension, l-50 we as adults, we don’t wish to acquire into the pattern of only checking boxes because that’s not what God wants either.
Bob Lotich: Yeah, absolutely. And I sense like, equally we residuum obedient to him. Yeah. I mean value, motion this 10% affair is interesting because you are correct. I meet therefore many people who that is precisely where they have got rested their laurels. I experience similar that’s a mark postal service along the journeying of giving where, if we’re merely really next him too seeking afterward him in add-on to obeying what he’s telling us to do, I withdraw hold a hunch that most of us are going to be giving beyond that dot together with he’s going to stretch us in plus to but go on to stretch us. And that’s what he’s done inwards our lives. And I simply consider that pattern over too over i time again.
Art Rainer: And when nosotros facial look at the examples that God gives us, those that he points out for us every bit illustrations on how to give. I think that the widow’s mite or the widow’s gift, there was a room total of people dumping big amounts of money into the temple treasury. But it was the widow who gave 2 coins that you lot pointed out too said, no, she gave to a greater extent than than anybody else. And why did he betoken out her is because the Bible says that she gave all that she had. In God’s economy, amount sacrificed always supersedes amount given. And thence it is virtually the sacrifice, not necessarily the box that’s checked. Plus the whole tithing thing, I empathize where it comes from. But when you lot aspect at the Old Testament too you facial expression to the Israelites together with how much they really gave, it john range all the way upwards to 33% inwards whatever given yr because at that spot were multiple times a 24-hr interval that they would give. And thence it’s non nigh the 10%. In fact, it’s often much to a greater extent than that. God is looking for the sacrifice together with nosotros’re truly saying it’s all yours anyway. And you lot tin convey whatever yous wish.
Bob Lotich: That’s proficient brother. All right. Yeah, permit’s shape of wrap this matter upwardly. So you lot’re working on a kids book?
Art Rainer: Yeah, absolutely. I’m no longer working on them. They testament striking July 15th. It is a completely unlike type of writing. It’s a lot of fun. In fact, I had my, my 8-twelvemonth-quondam read each of the books too the outset volume, I let him read each chapter together with afterwards the start chapter he said actually Dad, this is tedious. So I completely scrapped it inward improver to made for certain that it was a fun read. They’re learning nearly Biblical fiscal principles but inwards a really entertaining way. It’s called The Secret Slide Money Club in add-on to inwards that location are 3 books that testament hitting inward July.
Bob Lotich: Cool. All right, so people tin forcefulness out move to artrainer.com together with equally we get closer to that appointment, probable preorder at that spot or something like that?
Art Rainer: Absolutely. Yeah. They’re really already available for pre-monastic tell on Amazon or lifeway.com or Christianbook.com thence they’re ready for preorder forthwith.
Bob Lotich: Awesome. Great. All right, good locomote depository financial establishment check it out as well as that’s all for today. I appreciate you taking the quaternary dimension, Art. Thanks, blood brother.
Art Rainer: Hey, thank you for having me. It’s a lot of fun.
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