Ep 99: “Mom! Dad! Can I Have Some Money?”

Chris Farrell, co-author of ReThink Money for Children and Teens
and co-founder of FUNancial Freedom, shares his passion for
teaching teens money management. Say goodbye to the days of
allowance and hello to a future with a financially independent
teen!


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Full show notes


Talking to our kids about finances can be a chore: terms like
“good debt,” “credit score,” and “interests rates” tend to make
most people’s eyes glaze over. Besides that hurdle, it feels like
as parents we have to know all the ins and outs of money and
wealth to get our teens to pay attention. Most parents might just
throw up their hands and rely on schools and colleges to fill in
the gaps. Let’s just hope our teens get jobs that have a good
retirement plan with full benefits...and that they stay in that
job for their career.


But what if talking to our teens about money now was guaranteed
to make them wealthier in the future?


It’s not a pipe dream—in fact, the evidence (and this week’s
guest) suggests getting teens financially literate is one of the
most important things to do now to prepare them for stability as
an adult. As we’ve now seen with sex education, the less
information a teen is given, the more likely they are to take
uneducated risks, which could put their future on hold.


We can set our teens up for success by helping them learn good
money habits now—whether or not we have good money habits
ourselves! while they’re young will lead to a lifetime of
responsibility with the dollar. Not to mention, if their finances
are in check, their life will run a little smoother in all
areas--allowing them to grow up and become their best selves.


So how can we talk to teenagers about finances in a way that
excites them? That’s what our guest today, Chris Farrell, is all
about. He’s the founder of FUNancial Freedom, an organization
aimed at getting kids and teenagers interested in business
personal money management. His book, Rethink Money for Children
and Teens, is a guide to help your teenager transform themselves
from totally-clueless-about-money to a business whiz. His goal is
to make finance fun, and to lead kids towards more prosperous
financial futures.


And the best way to do that according to Chris and FUNancial
Freedom is to throw kids right into the maw of entrepreneurship.


Learning About Money Through Entrepreneurship


Chris believes all kids can (and should) experiment with running
a business. Project-based or hands-on learning is often the most
impactful when it comes to remembering concepts and internalizing
information. As Chris says, it’s also by doing that kids and
teens become more confident and self-assured in their abilities.


If you’re thinking your kid could no way handle running their own
business, Chris says you might be surprised. With the numerous
online marketplaces as well as remaining “traditional” ways to
earn, getting a business started today can be as simple as having
a smartphone and an email.


Of course, your teen might need your help with a few of the finer
points, like attaching business accounts to personal checking
accounts or memorizing their social security number. But in
Chris’s experience, on the technology side of entrepreneurship,
today’s teens seem to pick it up at lightning speed.


To get your teen on their way you can use the FUNancial Freedom’s
LEAP method, which starts first with the
Learning piece--however, most teens might be
eager to jump into the Earning part, and then
realize they need some of that Learning to be
Earning. The next piece to help kids then
Accelerate. In layman’s/-woman’s terms, the
Accelerate phase is about discovering how to save and invest--in
their business and themselves. Lastly, P is for
Play, the phase where teens and kids set
financial goals and explore all the fun ways to use what they’ve
earned to make the world a better, more fun place.


Having Fun Starts with an Abundance Mindset


As Chris notes, making money is about more than just dollars and
cents: it’s about having more choices, less stress, and the
ability to make the world a better place. In America, money or
personal finances consistently tops the list of the number one
stressor in people’s lives. Money might not be able to give you
purpose in life, and just because you have mo’ money doesn’t mean
you have less problems; but surveys of American households do
show that having at a minimum, financial stability, greatly
increases life satisfaction.


Just think of how amazing it would feel to pick up the tab at
dinner, treat the whole table, and not stress about the dollar
amount on the bill. What if your teen could do that? Not worrying
about the dollar amount so much is what Chris calls an “abundance
mindset.” The opposite is how most people operate: a “scarcity
mindset.” When you go to a restaurant the first thing most people
do is look to the right side of the menu--where all the prices
are. Many people even base their food and beverage choices on how
much money they are willing to spend that evening. There’s
nothing wrong with that--being frugal and investigating coupon
apps is usually a good thing. But many parents may wish for
something different for their teens.


An abundance mindset starts with proper money management. It’s
not just about having enough to spend, but it’s also about
switching one’s mindset: just because one person has a lot,
doesn’t mean there is less for other people. There is a lot of
money in the world and there are people, companies, and
organizations ready to spend it. As some of the great
motivational speakers of the last century proclaimed: “If you
help enough people get what they want, you can have everything
you want.”


Money is useful as a commodity, but it can also be a great tool
through which to teach life lessons and instill values.


Instill Values Through Business


Along with all of his financial tips, Chris emphasizes the
importance of helping teens define their values and priorities.
When they spend money, what do they typically spend it on? Books?
Gym memberships? Events with friends? Concert tickets? Traveling?


What we spend our money on is often the same as what we spend our
time on. And we spend time on things that matter to us, things
that we value. As Chris mentioned, some people will always make
sure to have a gym membership, no matter what the budget is,
because fitness and health is important to them, it’s one of
their core values.


Having money means being able to “spend” on what matters to us,
but it also means having the ability to live our values in a more
impactful way. Chris and FUNancial Freedom strongly believe in
teaching teens not just how to earn, save and invest, but also in
the joy of giving and using money to make a difference in our
communities.


In addition to the LEAP methodology, in our interview we
cover:


The 50-20-20-10 rule for managing income

How to explain the difference between good debt and bad debt

The number one piece of advice Warren Buffet gives about
money

Why it’s never been easier to s...