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Chance Howard

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Dollars and Sense

Chance Howard has some ideas on how to teach your kids financial literacy.

Our children are so important to us, and we invest both of our time and our money in them. Yet, how do our kids see themselves in relation to the bank of mom and dad, and how do we make sure they don't assume it grows on trees? Mortgage broker and owner of Howard Funding LLC, Chance Howard, is the father of two with ten years of experience in finance, and has some tips on how to teach financial responsibility to your children. 

Chance believes it is never too early to teach your kids about money. First, he says it is important to discuss what money actually is. You can start with coins and establish their value and what that can equate to. In the process they can also learn simple maths by counting. Next, you want to show them ways they can begin to earn and save up their own money. 

Chance says that as a kid, along with his siblings, he was taught the value of hard work, chores, and contributing to his family. His efforts would earn him some money from his parents, such as a trip to the movies. For his kids, Kadence and Steele, Chance decided to motivate his daughter to earn five dollars for every goal she scored at soccer. By the age of five she had managed 3-5 goals in a season. However, Chance laughs that he has gotten into trouble lately, since at 8 years old she has managed to score enough to earn $150. Chance insists this is one way to establish the concept of motivation to earn. Kadence not only benefits from increasing her skills on the field, but also reaps some additional monetary rewards for her efforts. 

Allowance money for good grades, behavior, tasks or chores can be an early method in cultivating that motivation. Once they have earned money, it is important to have a conversation about saving and not spending all you have worked hard for. Interestingly, Chance then says that after you have discussed this you should let your kids make the final decision to spend or not, and what they spend it on. So if they do end up wasting their money on a cheap toy that falls apart soon after, they have learned an important lesson, however bitter it might be. 

Whether they lose it all or save for a rainy day, make sure to follow up with another conversation about their choices and asking them if they enjoyed it or learned anything from their experiences. Finally, talk to them about their future. Their piggy bank might not hold a fortune but it could be the very beginning of one. Chance advises to talk to your kids about how they see themselves in the future, their job, their lifestyle, a house, a car, or even travel. Then talking in an open and frank manner about what that would take and how saving and working hard could get them there if they plan right.

Chance says that our finances can dictate a lot of our quality of life. Feeling secure and learning the value of money can save them a lot of stress and hardship down the line. Chance also says that talking about where true happiness comes from helps to put things in perspective. Instead of 'keeping up with the Jones's' and losing sight of what really matters. In today's consumer culture it is easy to get swept up in the latest fashion trends or high tech gizmos, that is especially true for younger generations. Chance calls it the 'Principle of Patience' and says that teaching our kids to save for really impactful investments like a house, a car, or a college degree will contribute greatly to securing brighter futures. Therefore, Chance advises parents to 'keep talking and teaching'.  Transparency and setting an example in your own spending habits goes a long way with our kids too. Invariably, an open discussion on money leads to one about priorities, dreams and how much our kids and their success mean to us. 

Steps to Teach Kids About Financial Literacy

1. Teach what money actually is. Show them their values and what they can buy.

2. Create motivation to earn. Allowances or rewards are a few ways.

3. Teach them to save and not spend. Delay gratification.

4. Let them make mistakes. Having real world experiences can be helpful.

5. Review their lessons. What could they have done better or done differently?

6. Talk about the future. Make plans, set goals, and expectations.

  • Chance Howard
  • Steele and Kadence