What the 1% Teach Their Kids About Money

Join the Free Master Your Money Workshop on January 14, 2026 here! Get the Free Guide to The Master Money Kids Wealth System here! Join the community built to help you master your money, stay accountable, and reach financial freedom. 👉 Join Master Money Academy today! In this episode of The Personal Finance Podcast, Andrew reveals the exact system the top 1% use to raise wealthy kids—teaching them to earn through value creation, split money into four jars for spending, saving, investing, and giving, learn real investing by age, and run weekly family money meetings that build financially confident adults instead of entitled spenders. Listen to The Business Show here. Join The Master Money Newsletter where you will become smarter with your money in 5 minutes or less per week Here! Partner Deals Go to http://acorns.com/pfp and start automating your investments and get a $5 bonus today! Get 50% Off Monarch, the all-in-one financial tool at www.monarch.com/PFP Join the loyalty program for renters at joinbilt.com/PFP Go to http://policygenius.com to get your free life insurance quote. Indeed: Start hiring NOW with a SEVENTY-FIVE DOLLAR SPONSORED JOB CREDIT to upgrade your job post at http://Indeed.com/personalfinance Thanks to Fundrise for Sponsoring the show! Invest in real estate going to http://fundrise.com/pfp DeleteMe: Go to https://joindeleteme.com/PFP20/ and Use Promo Code PFP for 20% off! Connect With Andrew on Social Media: Instagram TikTok Twitter Master Money Website Master Money Youtube Channel Learn more about your ad choices. Visit megaphone.fm/adchoices

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Andrew Giancola?

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• 0:44Andrew Giancola?

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• 1:17Speaker 01

  Wayfair, every style, every home.

• 1:20Andrew Giancola?

  When I started the Personal Finance Podcast, I had no idea how big it could become. I just knew I had something I wanted to share, so I started putting it online. And looking back, I definitely wish I would have started a decade earlier. One of the horror parts about building something online, though, is making it look professional. A website used to mean hiring a developer, figuring out design, and potentially spending thousands of dollars. In fact, on my website, I spent tens of thousands of dollars. That's what impressed me when playing around with HostingR's AI Website Builder. I told it what kind of website I wanted, and I built the first version in minutes. No coding, no designer or developer needed. And HostingR doesn't stop at launch.

• 2:04Andrew Giancola?

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• 2:41Andrew Giancola?

  What's up everybody and welcome to the personal finance podcast. I'm your host Andrew, founder of mastermoney.co. And today on the personal finance podcast, we're going to be diving into what the 1% teach their kids about money. If you guys have any questions, make sure you join the master money newsletter by going to mastermoney.co/newsletter. And don't forget to follow us on Apple Podcasts, Spotify, YouTube, or whatever podcast player you love listening to this podcast on. And if you want to help out the show, consider leaving a five star rating and review on Apple Podcasts, Spotify, or your favorite podcast player. Now

• 3:21Andrew Giancola?

  today, we're going to be diving into what the 1% teach their kids about money. Now, what I want you to understand, it is your obligation as a parent to teach your kids about money, to give them an understanding of how this world works. Because if you don't teach your kids about money, then social media is going to teach them about money, or the world is going to teach them about money. And guess what the world teaches? You can go into debt, buy that brand new car, and it's never going to hurt you. Or a 1% to 2% fee from an advisor is not a big deal. Or you don't have to invest your money. Live it up right now, so that your future, you can take care of that later on down the line. The world teaches terrible financial lessons. So it is up to us as parents

• 4:04Andrew Giancola?

  to become stewards of our children's education when it comes to learning about money. Now, this episode is going to be rooted in financial psychology. My entire goal for this episode is to give you the tool so that you can go out and teach your kids How money works. And so in this episode, we have two core values that we want you to think through. Number one is how to earn money. So I'm actually going to give you a chore system in this episode. That's going to help you think through how you deal with chores in your household. A lot of people do chores wrong and they don't think about it in a way that creates real world environments. And instead they think about chores as just getting things done and checking them a box off off a list.

• 4:46Andrew Giancola?

  But I'm going to teach you today how to think about chores in a different way. And so we're going to talk through how to set up a chore system for your kids. How you can actually show them to earn more money, but also some of the obligations that they're going to have. Where they're going to earn $0 because they live under your roof. Okay. Secondarily, we're going to dive into how to actually teach them how to manage money. Because if you don't teach them how to manage the money that they earn. This world's going to teach them how to manage the money they earn. And that is the last place that you want them to learn those lessons. Tik Tok's advice is to go buy a brand new car, stretch it out for seven years. And then your 401k is a scam. That's not the people you want to learn these lessons from. Instead, you want them to learn from you and the financial lessons that will carry them on into adult life.

• 5:30Andrew Giancola?

  Because what we're trying to do is create good stewards of money. Good stewards, we're going to do the things that they should do for their financial future. They're going to give to others and they're going to be able to build generational wealth for their families as well. In addition, if you're planning on handing down any money whatsoever to your kids in the future. You want to leave a legacy to your kids. One of the biggest things that you can do is teach them and give them a financial education. The book, The Millionaire Next Door actually has clear indicators and studies backing this. Most folks who inherit money, that inherited money is gone by the third generation. 79% of them, it is gone by the third generation. And so you want to make sure that you are creating good stewards of finances. So they can continue to teach future generations.

• 6:14Andrew Giancola?

  And so it's very important as you're thinking about your family and legacy planning. That you teach your kids these lessons so they can go forward and carry on the lessons that you taught them. Now, this is going to be something where if every single person did this, we wouldn't have as many money problems in this. World because it is taught in the household. And so we're going to have to learn how to talk about money more in our household. And we're going to have to learn about the lessons, the core lessons that we want to teach our kids. You can't teach them everything, but there are core principles and core lessons that you can teach them. And I want you to think back to your childhood. Imagine if you knew a lot of the financial lessons that you know now. Imagine how different life would be if you knew those early on. Well, you can give that gift to your kids, even if you don't want to give your kids any money.

• 6:59Andrew Giancola?

  I, I completely understand if you don't want to give your kids any money whatsoever. And you're not going to leave cash to them when you pass. That is completely fine, but at the same time, what you can leave is a financial education, which will last them for a lifetime. And so I am really excited about this. I am pumped to go through this with you because this episode is going to be something that you can take and implement right away. Now also, as we go through this episode, I am going to link a free guide down below about how to teach your kids about money. In addition to the chore system that we'll be talking about today. I'm going to have a free guide in the show notes down below that you can go and check out. So just make sure you check out that link if you're interested in this as we go through this episode. So if you're ready to teach your kids how to become wealthy, then let's get into it.

• 7:44Andrew Giancola?

  So there are three principles that I'm going to talk about in this episode that I'm calling the core 1% principles. And these are principles that I want you to carry forward to your kids. That's going to help them think about and manage money better. And the first one is money is structured, not emotional. See way too many people think about money in an emotional way. And most of us do this because if you see, for example, a stock jump up in price, all of a sudden you feel this flutter in your chest. It says, man, I missed out on that. That's emotion. Or if you feel the stock market drop and then all of a sudden you feel really stressed or anxious, that's emotion. Or if you're in a really stressful environment and all of a sudden you want to have a little retail therapy and you go out shopping, that's emotion.

• 8:26Andrew Giancola?

  If you feel guilty about money, if you feel guilty about your past, that's emotion. And so there's a number of different things that we're going to talk about today. But we want to make sure that we are not just collecting random cash and stashing it in specific places. That's what a lot of kids do, and that's You start is a lot of kids will just get money come in and they don't really have any plan for what those dollars are gonna do. Now, this may sound like it's over structured or over disciplined, but I promise you, if you can teach these simple lessons that we're gonna talk about today, they will be so much better off with their finances. Also, when it comes to making sure money's not emotional, we want to make sure we're thinking about no guilt spending. We want to make sure that we're not rescuing bad decisions and we want to teach that money flows through a system. So that's the first thing I want you to think through is just how is your system gonna work?

• 9:10Andrew Giancola?

  And you can tweak any part of your system to fit your kids or to fit your family's values. That is really, really important to note is that any of this can be tweaked. I just want to give you the baseline and the framework of how I think about this kind of stuff. Now, core principle, number two, and for most of you, you should be agreeing with this, but every single dollar gets a job. When money comes in, we are going to give those dollars a job. Now, for a lot of you out here, and if you're in Master Money Academy, you know that I talk about this a lot. Making sure that money that comes in always has a purpose, it always has a job, it always has a place to go. And when it comes to your kids' money, we're gonna teach you how to set this up for them at an early age. Because if your kids know how to manage money, the way they know how to manage that is by giving dollars a job.

• 9:55Andrew Giancola?

  And this is a lesson that can be taught to adults or children, and I'm gonna show you exactly how that happens. So there's no just extra money floating around, sitting under the mattress that has no purpose. There's no just extra dollars stuffed into a cash envelope. Allocation comes before spending, so before you ever spend a dollar, you've allocated that dollar to go somewhere. And then number three is that we teach by doing. Kids don't need another lecture. They don't need to hear some person just spewing off information and facts. Instead, they need to learn by seeing you do. And so what is going to happen is you need to make sure that you are repeating the behavior that you are continuously teaching them over this timeframe. Wealth is how you operate, not what you know.

• 10:37Andrew Giancola?

  And so, once you teach them that their habits are gonna make them very, very wealthy and you can get this point across, it's gonna be very important. Now, the cool thing is, some of these concepts may sound like a little more advanced, even if you have young kids. No, I'm gonna show you how to. Make this really powerful and impactful even for young kids. This system is going to work all the way from really young kids. I started my oldest doing this system at the age of three. And so this is something where you can do this too. If they begin to understand some of these concepts early on. And I want you to think through this and how this is actually going to work. Because we want to understand, well, how is this all going to work in daily family life? I'm going to teach you right now, because first we're going to look at this in two parts. First, how money enters. So we're going to start to earn money and we're going to learn how to earn those dollars within the household

• 11:22Andrew Giancola?

  and how money can come in to kids. And then secondly, we're going to learn how to manage that money, a wealth operating system per se. We're going to learn how to manage those dollars and how to make sure that we are allocating a job for each and every single one of those dollars. So let's jump in to the operating system now.

• 11:43Andrew Giancola?

  All right. So first, we're going to talk about the earnings section, meaning how you earn more money, the chore system that you can think through. And we are going to go through this in a couple of different layers. So layer one is going to be base responsibilities. So the way that I think about base responsibilities are things that you do and you contribute to because you live under my roof. Okay. So these base responsibilities are going to be things that they should be doing no matter what. I want you to think of these activities as daily activities that are just the normal human being should be able to do. So making your bed, for example, that is one responsibility that a lot of parents like to allocate. If you care about making your bed, then that is one that you can do. Two is clearing a plate off the table. What a lot of young kids do early on is they leave their plate there.

• 12:28Andrew Giancola?

  One of my sons still struggles with this, where he will walk up and get up and just walk away and leave his plate on the table. So we have to remind him over and over again, hey, got to clear your plate off the table. And depending on how old they are, they can either clean the plate, put in the dishwasher and/or at least put it near the sink. Another base responsibility would be something like cleaning up toys or cleaning up your room. Because keeping a clean space is what a disciplined person would do. And so making sure that you have that space clean is really important. Keeping your backpack ready could be another good one. Before you go to school, you have everything in a row and you keep all. All those things ready. These are adult responsibilities that can translate down to the child level if you just make sure that they are keeping on top of this. If you're the type of parent who does all of these things for them, that could carry on too long. So you just want

• 13:13Andrew Giancola?

  to make sure that you are looking at this going forward and then helping reset shared spaces. And so one way you could do this and a fun way to reset shared spaces, if you have like a room where they've been playing in a long time. And obviously, when you have kids, you're going to have messy spaces. That's the way life goes. And if you have a perfectly clean space and you have kids, call me up, let me know how you're doing that because I have no idea how to do that. But what I would say is that when you have these messy spaces, you can do something called power clean. So we'll yell out something like power clean and set a timer and over the course of five minutes, everybody in the household scatters and they start putting toys away, they start putting everything away to keep that room clean. You'd be amazed at how you and your kids, how much you guys can get done if you actually do a power clean. It's just five minutes.

• 13:55Andrew Giancola?

  You set that timer, it's a fun little event and you make it fun and enjoyable. Sometimes you could set it up where if there's a power clean song that you can come up with, that's five minutes, that'd be a perfect way to set this up. Once the song ends, then you guys freeze and you're done. So that is a great way to just do those cleanup spaces. But you want to just create a decent human being. You want to have a human being who actually cleans up after themselves, keeps their space clean in your house and is actually prepared for the next day. Those are some of the keys that I want you to think through. And if there are some things that you would add to that list, let me know it in the comments below. Would love to hear some of those. So the way that this ties to adult life is you don't get paid for basic expectations. You don't get paid for showing up on time. All of these things are really, really important things

• 14:38Andrew Giancola?

  that I think we need to teach very, very early on. So the basic stuff you don't get paid for. Now going above and beyond, that's when you start to begin to get paid and let's talk about that. Alright, so layer two is coming up with a system on what your kids can get paid for. And coming up with that system for me specifically is figuring out what they can do first and then how much you're going to pay them. So there are a number of different things that you can do to think about this, but what I like to do is come up with a list of items that they know they can accomplish. Now their age is going to dictate some of the things. They can do. You can't ask a five year old to go out and wash windows perfectly. You can't ask a five year old to go out and wash your car perfectly because most likely they're not going to be able to do it.

• 15:21Andrew Giancola?

  But can you ask a five year old to fold some towels? Most likely you can't. And so their age is going to dictate some of the items that you want to have them help you with. And this is going to be the list of things that you can do. Now it's going to be up to you to make sure that you think through some of these chores and some of these items that you need to get done in the household. What I like to do is then come up with a list and they get paid based on their age. And so typically what we do is we do weekly payments and they get paid based on how old they are. So my four year old right now, who is about to turn five, he gets paid $4 a week. My seven year old, he gets paid $7 a week. And so you can adjust those based on how old they are, but right now that kind of fits their needs about how much money they spend, how much money they save and those types of things.

• 16:06Andrew Giancola?

  If you want to give them more, you can give them more. If you want to give them less, you can give them less. But this is something where we create a payment system where if they do their chores and if they don't do them, they're not getting anything. But if they do all of their chores, then they're going to be able to get paid that amount every single week. Now payday, this happens the same day every single week. And what I would recommend for a lot of you, especially if you have younger kids, is to pay them consistently on that same day every single week and pay them in cash. If you can get a bunch of ones out at the bank, you pay them in one so that they can budget this money. And I'm going to show you how to budget this money later on in the line, but so they can take these dollars and put them in the correct locations.

• 16:45Andrew Giancola?

  And so it's really, really important to have the payment weekly because this creates a system that shows, okay, if I do these things, I'm actually getting rewarded. If it's once a month, that feels like an eternity to a lot of kids. But secondarily, it allows you to consistently have conversations with them about money and consistently get some of these dollars into the correct budget categories, which is what we're going to talk about here. Now, if they miss the expectations, you have these baseline expectations for them to get paid. If they miss those expectations, don't just give them the money anyway and say, oh, it's okay if you missed it once or twice. Instead, you want to come up with a system where either they're paid. Gets reduced and/or you don't pay them at all. For me specifically, I'm a little tougher. And so a lot of times they don't get paid at all if they don't complete all of their items.

• 17:28Andrew Giancola?

  And that's just the pain that they have to feel for not completing all those items. It's all or nothing with the way that we have this structured. Now, what does this teach them? A is income can be reliable if you show up. That is the first lesson that I want them to learn. Because this is something where if you go get a job, you know, you can get reliable income coming in. But two, feelings don't dictate you getting paid. So if you don't feel like doing something, and a lot of times kids don't feel like doing work. I get it. Most of us don't feel like doing work day in and day out. But if they don't feel like doing it, they still have to get it done. And so this is very, very important for most kids to understand and learn early on so that they can start to create that discipline muscle. See, discipline is a muscle. And once you exercise it, the more you exercise it, the more you're going to be able to stay structured.

• 18:12Andrew Giancola?

  You're hearing me use a lot of words like discipline and structure. We also want our kids to become kids and we're going to let them do that. Don't worry, we're going to show you how to make sure that they can do that by figuring out how to manage this money going forward. And we create fun environments when we're talking about this stuff. So when you have conversations with your kids, make this as fun as you possibly can. All right, so layer three is the extra income. Now, this is the most important part, I think, for most people to understand because this is going to teach a number of different skills. It's going to teach sales. It's going to teach entrepreneurship. It's going to teach that if you work harder, you can really build a tremendous amount of wealth. And so this is something that I think is a very, very powerful lesson that I want you to emphasize and use this as teaching moments

• 18:57Andrew Giancola?

  throughout the entire month when your kids are working towards this stuff. So we already covered the baseline stuff that they need to be doing. We covered their weekly salary. And if they finish the basic chores and they can do their weekly salary. Now let's talk about extra income. When it comes to extra income, there is something that I want to introduce to you called the family job board. Now, the family job board is a list of tasks that I want you to come up with that have specific price points on them. Now, there's a couple of different caveats to the family job board up front. Number one is that it's optional. You don't have to do any of this stuff if you don't want to. Number two, you can opt in to any of these at any given time. And so you can opt in to do some of these things to earn extra money.

• 19:39Andrew Giancola?

  And number three, it is not guaranteed that we're going to have extra jobs available for you at all times. So when it's on the job board, you can go ahead and do it. If it's not on the job board, then it's not going to be available at all times. Now, here's the powerful thing about this, okay? This shows initiative. This shows that they can go out and do this stuff. And if they go out on their own, this is going to teach you a lot about your kids. Some kids naturally want to earn more money. Some kids naturally could care less about money. And you can see this by the drastic differences between your kids' personalities. I have one son who literally never spends a dime. He never spends a dollar and he is the one who is very prudent with his money. He's the one that budgets it perfectly all the time. It's my oldest and he is very, very careful with every single dollar.

• 20:21Andrew Giancola?

  My younger son, we have to have a lot more teaching moments with him. He will take money, doesn't really care about it, kind of leaves it different places. Every time he gets it, he wants to spend it immediately. And so we're slowly having these teaching moments with him. But his personality is very different than my oldest. And then my youngest, she's still too young. She's only one years old currently at the time of recording this. And so she is not in this system just yet. So some examples of things that you can put on your job board are things like washing the car, things like pulling weeds or helping with yard work, things like seasonal projects or organizing specific things. Maybe it's helping clear out the garage or maybe cleaning specific things that you don't like to clean. But you can come up with whatever list works for your household and whatever you have available.

• 21:04Andrew Giancola?

  But here's how I want you to think about this because wealthy people, they don't ask for raises. They create value. And what I want you to teach them is ways to create value. And so you can also open up an option where they can suggest different things to do. And the way that you can frame this is you can call them problem solvers. Because what does an entrepreneur do? They solve problems for other people. That is why a business exists is it's solving a problem that that person otherwise could not solve. And so what you want them to do is try to come up with different ideas of ways they can help you around the house. Maybe it's pressure washing. Maybe it's trimming the hedges if they're old enough. Maybe it's cleaning the yard or the pool. Whatever you've got going on at your house, you know specifically what you've got going on. Those are all different things that they could be helping with and earning more money. Then putting dollar amounts to them is going to be really, really important.

• 21:49Andrew Giancola?

  And then there's layer four, okay? So these are the first three layers is the stuff you gotta do because you live under our roof. The stuff that you could earn a consistent salary from every single week. The stuff that you could do extra to earn more money. And then the fourth layer is super points. Now, super points are something I created early on and it rewards a number of different things. One, it rewards good character, it rewards a good attitude, it rewards by doing things with a smile on your face. It rewards effort and a number of other things. Now, what are super points? Super points, the system I created where if someone's giving a huge effort or they're trying really hard or they're making sure that they're getting their job done and they're trying to do it to the best of their possible ability. Then what we do is we have super points and they can earn a certain amount of super points

• 22:31Andrew Giancola?

  to gain experiences like going to movies or if they want to go out and do something, we can do something like that. Or they can get bonus dollars or they can even get saving and investing boosts. Those are three of some of the things that they can do with these super points. And it is a really, really cool and fun system that allows them to be more interested and more engaged in some of the chores that they are doing. So this is the fun factor, this is the fun add-in that we do to make this really enjoyable. Sometimes they just want to get a super point so they can get a piece of candy. Sometimes they want to get super points and acquire a bunch of super points so that they can go out and see a cool movie or go do a fun family trip. And so there's a lot of different fun things that you can do by engaging in some of this stuff. And it just gives them some extra bonus boost.

• 23:13Andrew Giancola?

  And so, so far, I wanted to test out super points with my kids and they absolutely love it. This might be their favorite part, it might even be more enjoyable to them than actually earning money. And so this is something that really keeps them motivated because there are extra factors associated with this and it's really, really helpful. Now, why do we even have super points? Why would you reward just simple behavior that every single person should be doing? The reason for this is because behavior compounds before money does. And so if you can find ways to make this more fun, make this more engaging and allow them to actually enjoy the process, it is going to be something where they're going to be learning in addition to developing. Helping these amazing habits and having fun at the same time. That is the perfect trifecta in my book. And so why we introduce super points?

• 23:56Andrew Giancola?

  And so this is our chore system and the way that we think about chores. Now you can utilize a chore charts if you want to. You can put this on your fridge or on a wall and have all this set up. In addition, when it comes to your job board, you can go ahead and put a job board together. Another way to do this is you can literally go to chat GPT and say, hey, these are some of the tasks I have available for this month. Can you create a fun job board for me and my kids? It'll put the entire thing together for you and make it super, super simple. But next, I want to talk about how to teach them how to manage their money. So you have this system set up where they can start to earn money. But now let's talk about how they can manage their money.

• 24:31Andrew Giancola?

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• 25:15Andrew Giancola?

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• 26:00Andrew Giancola?

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• 26:45Andrew Giancola?

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• 27:30Andrew Giancola?

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• 28:12Andrew Giancola?

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• 28:54Andrew Giancola?

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• 29:37Andrew Giancola?

  Making money is step one, and we're teaching how to earn more money and finding ways to earn more. And specifically, if you have older kids, you should also be encouraging them to start up little entrepreneur endeavors and starting to find ways to earn more in the neighborhood. And as they get older into their teenage years, it's also good, if they have the time, to be able to go and find an actual job, because that's going to help them learn the skills out in the real world. But secondarily, what we want to talk about is the wealth operating system, meaning the way that they actually think about money and how they manage these dollars. And so, we do with our young kids, we do this with a three-jar system. And as your kids get older, you can turn it into a four-jar system. But this is something that is going to teach them how to actually manage their money.

• 30:20Andrew Giancola?

  So I go to the dollar store, and I get three jars for each kid. One is save, one is spend, and one is give. And in those three jars, every time they make money, they start to allocate those dollars in a percentage. Now you can suggest any given amount that you want. What I like to do is the 40-40-20 method, meaning 40% in spend, 40% in save, and 20% in give. Now that's just to start out for young kids. They know to allocate their dollars in the specific jar. So if they made $10, $4 goes into spend, $4 goes into save, and $2 goes into give. Now, as they get older, one of the things I recommend is, save is really, you know, save and invest.

• 31:03Andrew Giancola?

  And so one of the things that I recommend is to add one more jar and have save and invest. Because what savings really is going to become is the ability for them to save for a future thing that they want. It's going to teach them how to save for their future. And then invest is going to be a place where when we start to talk about stocks and investments, they can take those dollars and invest them towards their future. Now, if you aren't catching on already, this is a simple way to introduce our bucket method. So you have these three different buckets when they're young that turns into four different buckets when they get older. And this is a way for them to learn how to compartmentalize and actually budget their money. See, budgeting doesn't have to be complicated. It can be very simple, just like this. And so they understand how to put their money in specific jars. Now, as these jars start to grow, or as they start to earn more money,

• 31:48Andrew Giancola?

  then you can introduce things like bank accounts and other things that will allow them to manage this money in an easier fashion. See, what most people do is they spend their money first. What you're teaching is how to save some, how to invest some, and how to give some, or teach the lessons of generosity. And so the jar system for me has been phenomenal. It has been so incredibly helpful. And you can teach this as young as three years old, depending on their understanding. Now I want to talk about investing, because I think it's very important to teach your kids about investing at an early age. There are way too many people right now who have no idea how to invest their money. And it is one of the most difficult things to see. Because if you can understand how to invest very early and very often, you can become very, very wealthy. Small amounts of money, over time, can turn into very large amounts of money.

• 32:34Andrew Giancola?

  And so teaching these investing lessons can be one of the most powerful things that you Give your kids. And so I'm going to talk about how to teach your kids about investing by age here. So that you can think through this process and what you need to do for your own kids. So between the ages of five and seven, I want you to think about investing as a story. And I want you to start in teaching investing based on just different life experiences that your kids have already had. So first, you can explain that buying a stock is like owning a piece of a company. That is, one of the big things that you want to teach for every single age is that you literally are buying a piece of a company. And one of the things that I think about here is what are the companies that my kids associate? Or they utilize every single day? So a big one for a lot of kids is things like Disney.

• 33:19Andrew Giancola?

  Or if they have Nike shoes, you can look at Nike. Or if they play with Legos, you can look at Lego. Or if they play with toys, you can look at Mattel or Hasbro or any of those types of toys. Or if they have an iPad, you can look at Apple. But try to pick different companies that they actually associate with that are tangible items right in front of them. And what we're trying to do is just give them lessons. We're trying to teach them, hey, you can buy a piece of this company and explain that to them. Another thing you could teach them is real estate investing. So real estate investing is a pretty simple concept to understand because everybody has to live somewhere. And if you are interested in buying real estate, you can go and buy a rental property that somebody else will live in. And you can earn a little bit of money just from owning that property. And so you can start to have these conversations about companies that your kids know about. Now, what you're going to realize is as you start to think this way.

• 34:04Andrew Giancola?

  And as you start to see your kids kind of come alive when it comes to this stuff. You'll see these lessons pop up over and over and over again. If you go out to eat to a chain restaurant, that's probably publicly traded. And so you could say, hey, you can own a piece of this company. If you guys go to Disney World, you can say, hey, you can own a piece of this company. If you go to the movies, you can say, hey, you can own a piece of this movie theater. Or you can own a piece of the company that made this movie. I mean, there's just so many different lessons over and over and over again that pop up. And one of the things I would highly recommend is just kind of talk about the company and the stock. If you don't know about it, it's a great way for both of you to learn more about that company and stock. So that they have an understanding about how the world works and how the financial system works. Now, between the ages of eight and nine, one of the things that you can

• 34:48Andrew Giancola?

  Is you can become the bank. So you can start to teach them about interest and you can do this earlier too if you want to. But one of the things is if they keep their money in savings or they keep their money in the investment jar. If you've introduced that already. Then what you can do is pay them interest. And so I highly recommend coming up with a high number. So that every single month, when they keep their money in that savings jar, you can start to pay them a little bit more. One of the things that I like to do, for example, is if it stays in the savings jar, I pay them 25% interest every single month. Let me tell you, my oldest is a really good saver. And I think part of the reason why he is a really good saver is he knows. I am going to continue to give him more interest within that savings jar. And so this teaches, hey, your money can compound if you put it in the right places and you leave it in the right locations.

• 35:33Andrew Giancola?

  So come up with a number that's fun, come up with a number that's engaging, that's going to help them keep their dollars safe. Now you can see if this number gets a little too high, it could get expensive for you. For example, if they have a hundred dollars in their savings jar, then you're paying $25 every single month at a 25% interest rate. That is going to be something to think through, but at the very beginning, it is really important to make sure you keep this motivational and you keep this engaging. What this is teaching though, is that your money can work for you. Your money can work so much harder than you can. And so rewarding them is very, very powerful. And it's a powerful lesson that they learn this early. It can change their life forever. So between the ages of nine and 12, we want to continue to think about investing. We want to continue to be talking about investing and now is the timeframe where you can do one of two things.

• 36:17Andrew Giancola?

  One is you can either shadow invest. So you can start to teach them to invest in a shadow account. And if you've never seen a shadow account, it's an actual brokerage account. It has the charts and everything else. But they are trading with paper dollars instead of their actual money. Or secondarily, if they have enough and you feel like they have an understanding, they can choose a couple of investments and just do fractional investing. Meaning just buying a portion of a share would be a great way to get started. That way they can see how the market moves. They can feel what it's like to invest their first dollars. They can see the first process as time goes on. What you're trying to teach is that investing isn't gambling. You're trying to teach a way where they can see that long-term getting your dollars to work for you. Is the way to go.

• 36:59Andrew Giancola?

  Now, between ages 10 and 12, that's when your first real investment comes into play. So you can have them open up a custodial brokerage account and they can start to have their first real investments. And as a parent, you can also match it for every contribution they give. This is going to teach, A, I'm an owner, but it also just rewards good steward behavior, like putting your dollars in investments. And so that is something that I think is really cool for a lot of parents out there, is they can start to match this for their kids. They learn more about how money works. Now, all teenagers, I think, should be learning how to invest and learning about stocks. And so any teenager that you have across the board, making sure you're teaching them this stuff is really, really important, because this is the timeframe where they need to know how this works. And really, just starting a brokerage account and starting that compound interest early

• 37:42Andrew Giancola?

  is going to have a drastic difference on their long-term wealth-building ability. So this is something that's really, really powerful. Also, if they have true earned income, you can open a, something like a custodial Roth IRA if they're interested, which is going to allow them to contribute as much as they earn in a given single year. Now, we've talked about earning money. We've talked about managing money. We've talked about investing money. Now, what I want to talk about is making all of this come together, which is family money meetings. We're going to talk about that next.

• 38:11Andrew Giancola?

  So family money meetings are a really fun way to kind of make all of this stuff come together. This is where you kind of have conversations about the lessons that you want them to learn when it comes to money. It is really one of the best ways to make all these lessons that you're teaching come to life. And so you can take five minutes a week to do this. It is really, really simple and an easy way to think about this process. But one, you review how much they made in that month. So if they made $5, plus they did some things on the job board, then you can review how much money that came in. Then talk through which jars they're going to put them in. So a lot of times during these meetings, I like for them to bring their jars to the table, and then we pay them. And then they select how much is going to go in each and every single jar, depending on how much you pre-allocated to go into those jars. Next, you can go in and you can start to check the growth of their money and talk through the growth of their money.

• 38:55Andrew Giancola?

  And if you give them interest on their savings or whatever else, you can do it at that time so they can physically see what's happening there. And then you can talk about their choices and why they chose to put a certain allocation into some of these jars. And at a certain given time, they're going to need to Choose how much they put in each and every single one of these jars and you're going to have to let them choose. And so that's something where you can also have conversations surrounding that. Now, a couple of questions that you can ask is, hey, what did you spend this week? What did you buy? Why did you buy those types of things? Two, what are you saving for? What are the big things that you want to save money for or go out and buy? Three, why did you choose that? And four, how did it feel to give? So in your give jar, what you can do is start to have conversations about this too, on where they want to give. You may already be able to reveal some

• 39:37Andrew Giancola?

  of the things that they are passionate about, or what they want to give more to. And so that is a great conversation to have as well. But the one thing I want you to note is that wealthy people, they talk about money constantly and they talk about it consistently. And one of the things that I want you to do is just start to have these little money lessons, these little conversations. It could just be one minute a day. It could be a couple minutes a week. It doesn't matter, because if you are starting to plant the seeds right now, it is going to change their life dramatically in the future. And just know, by implementing a system just like this, or tweaking the system to fit what you feel are your values, that is going to be a huge, huge benefit to them long term. Now, as they get older, and as they start to grow, especially in the teenage years, we need to start to talk about things like bank accounts, and investment

• 40:21Andrew Giancola?

  matches, and longer term goals, and setting up systems that help them become future adults. And so that is something that we will have in a future episode as well, talking through how to manage money as a teen, and how to have conversations with kids as teens. Because your final result is you don't want just kids to know about money, they want to operate like wealthy adults as well. And starting these habits early and often is going to help them do that. And now, remember, we have a free PDF guide down below in the show notes for you guys to check out. Really excited for each and every single one of you to be here. Our goal is to bring you as much value as possible here on the Personal Finance Podcast. And again, if you're getting value out of these episodes, share it with a family member, share it with a coworker, share it with a friend, but share these episodes, because we want to teach as many people as

• 41:06Andrew Giancola?

  possible how to become millionaires. But it starts early and often, because if you can teach your kids how to become good stewards of wealth, they will be so much better off later on down the line. Listen, if you guys have any lessons that you Have learned or you have taught your kids about money. Let me know down in the comments below on Spotify or YouTube. And if you guys have any questions, again, feel free to reach back out to me by joining the Master Money Newsletter. And if you want help from me, would love to invite you to join Master Money Academy. Master Money Academy is the community of people who are working towards building wealth. And every single week, we do live coaching calls. We have all of our courses in there. And in addition, we have small groups and masterminds that help you improve with your finances. So if you're looking to improve your finances this year,

• 41:51Andrew Giancola?

  would love, love, love for you to join Master Money Academy and I'll see you inside there. Thank you again so much for being here on this episode and we will see you on the next episode.

• 42:01Speaker 02

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