In today’s world, financial literacy is more than just a skill—it’s a crucial life tool that can shape your child’s future and family generations to come. We know our home is where our children learn our family values. At Pinnacle Wealth, we believe this should include understanding the true value of money, the importance of saving, and the power of giving. As parents, grandparents and guardians, we can teach our children how to confidently make informed financial decisions and avoid the pitfalls of debt. And guess what? Children are always watching, listening, and wanting to learn more. Gather your kids and join us for our upcoming webinar in September, “Raising Money Smart Kids,” and equip your family with the essential tools for financial success!
Financial Education at Home Matters
Unfortunately, money management has too often been a taboo subject in many households, leaving generations to learn from trial and error. And regrettably, financial literacy is largely not taught in school. But today’s fast-paced financial landscape demands these important conversations start early. So parents and grandparents are in a perfect position to set kids on the right path, according to Pinnacle Wealth Advisor Ryan Ovenden, CFP®, CKA®.
“Christian Financial Teacher Ron Blue often says, ‘more is caught than taught,’ meaning what you model at home will be ingrained into your kids,” Ovenden said. “Take the opportunity to talk to your children when you go shopping, when you choose where you will go to eat, when you’re deciding if the family should go to the water park on Saturday or on Monday when tickets are half price,” he suggested. “Create teaching moments everyday by sharing with them how you are intentional with the financial decisions that you’re making. They’ll catch on quickly!”
What You’ll Learn
With the use of colorful visuals and props, lively volunteers and fun demonstrations, the Pinnacle Wealth webinar series will have kids focus on five core money principles that we believe help build a strong financial foundation:
- Save First, Spend Second: This principle teaches the importance of prioritizing savings before spending. By understanding the value of waiting and the benefits of delayed gratification, your children will learn to make smarter financial choices, like waiting for a sale to buy that coveted toy.
- Control Your “Wanter”: Distinguishing between wants and needs is crucial. This principle helps kids learn to manage their desires and spend wisely, showing them that true financial peace comes from knowing the difference between necessary expenditures and optional treats.
- Give Generously: Instilling a spirit of generosity from a young age teaches children the joy of giving. They’ll learn to be aware of what others need, building empathy and a sense of community.
- Avoid Debt: Understanding the pitfalls of debt can be critical for long-term financial health. By demonstrating how debt can impact their finances negatively, kids should grasp the importance of avoiding unnecessary borrowing and managing their money wisely.
- Set Short-Term and Long-Term Goals: This principle helps children set and achieve their financial goals, whether it’s saving for a toy or purchasing their first cell phone. They’ll learn to balance immediate rewards with long-term benefits, fostering a forward-thinking mindset.
Engaging Every Age Group
The Raising Money Smart Kids webinar is a two-part series designed with all ages in mind, and sessions will be tailored according to age group, said Pinnacle Wealth Advisor Nik Aamlid, CFP®, CKA®. One webinar will be for children aged 5-11; the other is designed for kids 12-21.
“For the youngest children, we use the 3-Bucket System— with buckets labeled LIVE, GIVE, and GROW—to teach them basic money management skills,” Aamlid said. “They’ll learn to divide their allowance and birthday money into these buckets, say 50% in the LIVE bucket, and 25% each in the GIVE and GROW buckets. They can grasp early-on the concepts of budgeting, saving, and giving.”
Aamlid said he practices this at home with his own young children, describing himself as the Dad Bank.
“I learned early on to go to the bank to have smaller bills and coins always available so when my youngest kids are ready to allocate their allowance into their buckets, I’m ready to support those smart financial decisions,” he explained. “You don’t want to miss those opportunities by not having the right change on hand, and you might forget to get back to it if you’re not ready immediately with that change.”
Older kids are excited to learn how to make their money grow, said Ovenden. “For teenagers, we delve into more complex financial concepts like compound interest, teaching them that compound interest can work for you with smart investing, but against you if you’re using credit cards and getting into debt,” he continued. “We’re preparing them to make intentional and informed decisions about the major life purchases and investments that they’re already thinking about, like their first car or a college education.”
Real-Life Impact
Pinnacle Wealth advisors believe by embedding these concepts into the daily lives of your children, you’re not just preparing them for future financial stability—you’re transforming the trajectory of your family tree.
“The webinar is designed to help kids and parents get on the same page,” said Ovenden. “We’ll plant the financial seeds in the kids, so to speak, and give parents the watering can – the tools and the know-how to help those habits and decision-making skills come to fruition.”
“By participating in our webinar, you’re not just teaching your kids about money; you’re instilling values that will guide them throughout their lives,” added Aamlid. “From practical money management to the biblical principles of giving and responsible stewardship, the lessons learned will influence their financial behaviors and attitudes for years to come.”
Join us for “Raising Money Smart Kids,” a webinar series for kids and parents, providing actionable insights, discussions, and practical tools to make financial education a fun and integral part of your family life. Available here in September.
The opinions contained in this material are those of the author, and not a recommendation or a solicitation to buy or sell investment products. This information is from sources believed to be reliable, but Cetera Advisor Networks LLC cannot guarantee or represent that it is accurate or complete. Faith based investing involves the exclusion of certain securities for nonfinancial reasons. This may result in the investor forgoing some market opportunities that may have been available to those not subject to such criteria. There is no guarantee that any investment goal will be met.
Kevin Engbers, CFP®, CEPA®, Founder, CEO, Wealth Advisor, Pinnacle Wealth, 612 E Tan Tara Circle, Suite 100, Sioux Falls, SD, 57108, (605) 271-6023.
