In episode 35 of the FamilyPreneur podcast, we meet John Lanza! He has been featured in The New York Times, The Wall Street Journal and The LA Times. He's is the Chief Mammal of The Money Mammals, teaching kids to “Share, Save, & Spend Smart.” I'm excited to explore issues related to money and allowance with the author of the new book for parents, The Art of Allowance: A Short, Practical Guide to Raising Money-Smart, Money-Empowered Kids! Parents have often struggled to find the best times to bring things like responsible spending, budgeting, and even applying for credit cards with no credit history up to their kids. This book will help them know when and how to go about discussing money with their kids.
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The topic of financial literacy is important because we want our kids to develop the skills to make and manage their own money.
John advocates for giving your child an allowance, but not tying it to chores. He sees allowance as a teaching tool, not a hand-out. We should ensure that our kids understand the reason why they are getting an allowance – that we're giving them money so that they can learn lessons such as wants vs. needs, saving for goals, and making smart money choices. Chores teach a different lesson – that you need to work to earn money. He goes into more detail explaining the differences between the two lessons, how he determines what lessons to implement, and how he teaches those lessons.
He shares his recommendation for how much of an allowance you should allocate for each child. He recommends $1 per year of their age – so a 5-year-old receives $5, up to the teen/tween years – then things change.
For all kids, he follows a rule that splits all income into 3 “banks” – Share (charitable giving), Save (for long-term goals), and Spend-Smart (thinking about the money they spend). That being said, he also recommends 3 clear jars – so they can see the money that is accumulating in them.
When it comes to saving, you want to be saving for a goal – not really the idea of saving for a “rainy day.” Their first goal should be attainable within 2-6 weeks. They need that more immediate gratification in order to learn the lesson – the idea of a rainy day is too abstract. The goal should follow a “SMART” acronym:
- Specific – Scooter – put a picture on the jar
- Measurable – how much it will cost and how long it will take
- Attainable – it wont take too long and they will be able to purchase it
- Relevant – it's a goal that they want
- Time-based – identify how long it should take
Teens/Tweens (between 10-14 years old) follow a “Breakthrough Allowance.” They receive $100/month – but they are responsible for more expenses including: all their clothes, communication (cell phone), birthday/holiday presents for their friends, food out with their friends. It sounds like a lot of money, but when you think about all the money you spend on what they want as you go – it's likely less this way, plus it's teaching them those essential budgeting skills.
Throughout this episode John provides tons of examples and tips and tricks when it comes to helping to raise your kids money-smart. Skills that all of our kids need to develop! I love how he talked about his personal experiences with his kids as they grew from kids to teens and how that process has changed.
I ask him questions about one of my biggest pet peeves – when my kids blow their money on things that I disapprove of – and how parents can teach these skills if they're not confident that they are money-smart themselves.
Meet John Lanza
John Lanza is the Chief Mammal of The Money Mammals and author of the new book for parents, The Art of Allowance: A Short, Practical Guide to Raising Money-Smart, Money-Empowered Kids. John's Money Mammals teach kids to “Share & Save & Spend Smart” and have been featured in The New York Times, The Wall Street Journal and The LA Times.
We met Gelie Akhenblit – an entrepreneur, community leader, speaker, professional networker, internet TV show co-host, mentor and most importantly, a mom. She believes in the importance of having a strategy when engaging in face-to-face networking and the power of building and maintaining strategic relationships. She's the CEO and founder of the second largest networking group in Phoenix, NetworkingPhoenix.com and in that episode she dives into valuable tips for in-person networking and how her experience as a refugee emigrating from the Soviet Union fueled her entrepreneurialism!
I will welcome Gabriele Nicolet to the show. She is a speech language pathologist who has more than 15 years of experience working with young children with speech and language difficulties and other special needs. She is the owner of SpeechKids, LLC-a private practice serving children and families in the Washington, DC metro area-and the creator of the Toddler Talk Online Program for Parents. An accidental entrepreneur, Gabriele recently began to grow her business in order to become the primary breadwinner for her family. Gabriele lives in Washington, DC with her husband and 2 teenage children.
About The Host
Meg Brunson has been marketing to moms for over 7 years. She is the founder and CEO of EIEIO Marketing, a digital marketing agency focused on Facebook Marketing for family-focused businesses.
Meg is also a former Facebook employee with a passion for helping bootstrapped businesses figure out Facebook so that they can promote like the pros! She left the 9-5 in 2017, so that she could be the mom she wanted to be to her 4 young daughters.
After helping her daughter launch her first business, Storytime With Kiki, at the age of 10, Meg began hosting the FamilyPreneur Podcast: an interview-style podcast for parent entrepreneurs, raising entrepreneurial children.