005: Teaching Your Kids About Money Management with John Lanza

John Lanza and his wife asked a simple question when their first child was six months old: “How can we raise our kids to be money smart?

Trying to answer it made them realize that there were far more families trying to answer this question than just his. This led him to create The Money Mammals –  financial education for children through books, apps, games, videos, and more.

His new book is The Art of Allowance – a short, practical guide for parents to raise money-empowered kids who know how to save, achieve goals, make smart choices, and distinguish between needs and wants. He’s been featured in The New York Times, The Wall Street Journal, and The Los Angeles Times. Today, he appears on Retire With Purpose to share stories from his own family and the power of teaching financial philosophy to children – and what he’s learned in the process.

In this podcast interview, you’ll learn:

  • The reason allowance is a good idea – but needs to be purposeful.
  • Why you shouldn’t tie basic chores to allowance – but you should teach your children that work can yield money.
  • How John helped his kids learn budgeting and smart money management skills – including basic saving and investing – by having adult conversations with them and exposing them to the terms around money.
  • What you can do with older kids to get your messages about money through – and help them to make meaningful purchases and think about their decisions.
  • Why teaching delayed gratification still matters.
  • How John is dealing with the idea of student loan debt with his own children – and how to address money issues with your adult children.

Inspiring Quote

“A money empowered-person knows money is a tool and uses it to craft a meaningful life.” – John Lanza

Interview Resources

The Money Mammals: Financial Education for Kids

The Art of Allowance: A Short, Practical Guide to Raising Money-Smart, Money-Empowered Kids

Dave Ramsey’s SmartVestor Pro

Happy Money: The Science of Smarter Spending

Drive: The Surprising Truth About What Motivates Us

Man’s Search for Meaning The Classic Tribute to Hope from the Holocaust

Stumbling on Happiness

The Marshmallow Test: Mastering Self-Control

Transcript

Read The Transcript