7 Things to Teach Your Kids About Credit and Money


Financial advice, tips and ideas are available to the average investor and client depending on their interest in the product being sold to them. In this case, we tap into the 7 one-size-fits-all advice you probable have heard growing up and preparing to earn and manage your own money.

However if you’re like me, I always wanted to see both sides of the coin of money managers that most 99ers never think about. My curiosity asked; what kind of lesson and advice do the one percent of the country (if not world) teach their kids about money management and credit?

Well, let’s look at it from both sides below, and you determine which advice is best for you and your kids.

Video credit: Money Talks News

Being a parent means teaching your children valuable skills, such as how to tie their shoes, brush their teeth, drive a car and work hard at school and their careers. While some of these lessons are quite easy to teach, others — such as those involving money and financial responsibility — are more difficult.

To the one percent, it’s never difficult. It’s not difficult to spend it, so why do the media and financial experts make it sound difficult to advise your child to manage it?

Teaching financial lessons to kids is actually exciting. The reason is due to making it fun, and it’s only difficult when the lesson is derived from lying to yourself about it in the first place*. You’d see what I mean in the spotlight.

Like all parents, I want my kids to be successful in their lives, and that means learning to manage their finances, money and credit. Here’s a list of seven key lessons to teach your children about money.

To the one percent, the most successful thing we can teach our kids is to always love themselves first, and be true to themselves regardless of what society says. As soon as they understand that part, then the rest is cruise control regarding money and credit.

Here’s a key lesson from the one percent to teach your kids about money.

1. Work for the things you want.

© Provided by Gobankingrates work hard


From the time kids are young, parents should require them to help out with chores to earn an allowance*. As children get older, encourage them to seek other opportunities to earn money, like mowing lawns or babysitting. These activities teach kids the value of working for their money and help set them up for success later in life.

The 1%:

The LAST thing we want to do is teach our kids the DE-value of “working for their money”.

That in itself is an old, antique, ancient industrial age lesson for the next generation.

Although teaching them responsibilities through chores can be a noble act, the last thing we relate it to is earning money, for we’d be doing a disservice to them of attaching labor with something we believe is infinite. For example; how much value can you produce per hour to justify being a billionaire? Instead of telling them that, we teach them how to leverage their money through kids who’s parents taught them to work for their money either per hour (wage), or annual salary. Just like this advice requires parents to teach their children to stay in the rat race through “allowances” (a word the IRS use all the time), we deploy activities that teach our kids the value of their minds through ideas and critical thinking that help them set up for success by choosing options later on.


Additionally, encouraging kids to save up for desired items — like a new pair of sneakers or a video game — helps them understand that hard work can be rewarding.


Additionally, we encourage our kids to invest $1 to make $3 back for anything they desire whatever that might be. We go through a plan on what investment(s) will generate the additional cash flow for them to buy it. We help them understand that money working for them through financial intelligence is rewarding.

2. Value your money.

© Provided by Gobankingrates value money


You work hard for your money and want to know where it is at all times. Keeping funds in a safe spot, like a piggy bank, is a great way for children to learn about good money management.


Value your mind. Investing in your state of mind in order to have money work hard for you is essential in knowing what it’s doing at all times. Keeping your funds moving like stocks you control, real estate, or just a simple franchised business is a good way to teach the children a great way to manage wealth.


When my kids were younger, they all had their own piggy banks. I encouraged them to put in the money they received from gifts or chores and regularly counted the funds with them, so they knew how much they had saved.

When my kids got older, I started savings accounts for them at the bank. Doing this helps children understand that they should store their money in a safe place and keep track of it, so they know how much they’re spending versus saving.


We outlawed savings accounts in our home. The reason is due to the thought of lack, and the “no price tag” habits we wanted to instill. Our children understand the laws of motion, and savings stagnates that motion, therefore they get a really stagnate return. Children in wealthy households usually have investment accounts that owns stocks in Fortune 500 companies and numerous financial vehicles. The children understands the power of financial velocity.

3. Plan for the future.

© Provided by Gobankingrates planning


Saving for the future is an important lesson to learn at a young age. Start by explaining to your children that, if they spend money on a candy bar today, they might not be able to buy an action figure tomorrow. Then, help your youngsters develop good financial habits by encouraging them to save up for big purchases, such as cars and college tuition bills.


This is financial suicide in our home. Saving for the future that never comes is a mental drain in such a covert way, but it is good advice for our clients who put their “savings” in our banks — so we don’t discourage that advice. When a child want a candy bar today, they expect to buy a toy tomorrow because they’re confident of an investment they just did earlier. In other words; they want to live life now, so they invest now so they can have that candy bar and share it with their action figure.

As your kids get older, it’s likely that they will encounter unexpected financial expenses, like medical bills or car repairs. By planning now, they can limit the stress and anguish these financial emergencies will cause them down the line.


The last thing we teach our children is saving for a “rainy day”. It is financial and mental depression to even think about it. We start them early to alleviate stress in order to eliminate unnecessary medical bills.

Let’s be honest, of all the financial advice 99ers been getting since the Jurassic era, there seems to be a lot of high medical bills later on due to stress coming from lack of money. Gee, I wonder why.

Preventive measures from Day 1 is essential to keeping the mind less stressed and stay out of hospitals, and put their money in stocks in the medical industry when the children of 99ers need to pay that medical bill from their “rainy day” fund.

4. Only take on the debt you need.

© Provided by Gobankingrates avoid debt

My father taught me to avoid debt except for these three reasons: buying a home to live in, financing an education and purchasing a car for transportation to and from work. Most people need to borrow money for these purchases. For best results, borrow only what you absolutely need and save as much as possible prior to making these purchases to lessen the total debt amount.


We know that this is why the “End The Fed” debate is contradictory. 99ers continue the need, and advice for debt. We one percenters know how to leverage debt. Debt is not good or bad because it’s only numbers, it’s how you use it. A house comes with payments which means it’s a liability for you because it’s taking money out of your account, and an asset to the bank because they’re getting it. However we don’t mind that advice when we own stocks of banks. Same with cars; 99ers are taught to take a job in order to recycle the habit of earning in order to pay someone else.

Another point I want to make is this; we teach children to never borrow money when you need it. That’s one of the biggest difference between the one percenters and the 99ers.

You can help your kids develop good borrowing habits by encouraging them to start saving for college early. When they are ready to start school, they can put these funds toward tuition and therefore borrow less.


We believe college starts right at the age where they learn to read and talk through the power of Information via the Internet. However we encourage college only if they seek professional careers in law, medicine, etc. We found it disturbing when most college kids we’ve interviewed never wanted to go to college in the first place and only went because of pressure from their parents. Our children are aware that most Fortune 500 corporations was founded by dropouts who made their life simple while hiring college graduates who made their post-college life difficult. Another concern and curiosity we have with most children is if they’re encouraged to save money to start a business while ditching college.’s e-book, “The Student’s Guide to Credit,” offers great tips for teens preparing to enter college. Purchase a copy to teach your older children about the importance of building credit and making smart decisions regarding loans and paying for college.


Speaking on credit, we teach all of our children to use OPM (other people’s money) to invest in a business while using the market (consumers) to pay it off. This is going back to how credit is used. 99ers rack up debt because they feel like they “need” it, then go to work to pay it off. We one percenters rack up debt because we feel like it’s a tool to be used, then have other people to pay it off.

5. Understand limits.

© Provided by Gobankingrates limitations


The old saying, “Money doesn’t grow on trees,” is certainly true. However, it might be hard for young children to grasp the message behind it. I help my kids accept financial limits by telling them that, if they have $20 to spend on a new video game, they can’t buy one that costs $25.


What’s true is only a perception. That’s important to know because the sky could be blue to you, but white to another person — but both of you believe what you’re seeing is true.

I say that because teaching our children financial limits is financially handicapping them and their ideas, as well as going against the laws of nature which is infinite. Money grows from the mind. And yes, we need trees to print the paper money which happens to be on in order to satisfy the demand of ideas creating wealth — just like 99ers need that tree to pay for that house via mortgage.

It does drive me crazy when parents teach this atrocity to their children. We make it a point that wealth is within them and to grasp that understanding behind it. However I respect the 99ers “truth” they bought for themselves when they say “money doesn’t grow on trees”. However we’ve decided to think the opposite. It’s a crippling state of mind that I refuse to poison my children with.

Teens and young adults need to recognize that credit cards have limits, too. If you charge too much on your credit card, or fail to pay your bill, you will be hit with fees. Additionally, neglecting to pay off your balance each month will result in you paying more in interest down the line. If you want your kids to be financially healthy later in life, encourage them to pay off balances fully every month and use credit only for emergencies.

Experts also recommend maintaining a 30 percent credit utilization ratio to ensure a healthy credit score.


Credit cards can actually be fun to have. Ever bought a car only to get you from point A to Point B? What’s the fun in that? Why not drop the top, or open the sunroof, and blast some music, find an open road and punch it to really feel that motor and torque you paid for! If you have a truck, take it off-road and splash some water (or mud) and get wet and dirty!

That’s how I look at credit cards. I started out small with a secured card and I’ll say I had to do the 99ers thing first to get my credit started. But then I graduated from a Pinto to a Porsche and take it on the Autobahn without stopping with all the perks, points, cash backs, miles, concierge, shall I go on? Our children’s doing the same while utilizing their own businesses to pay it off.

To recap; we teach our kids to buy a secured card first, you know the Pinto? Pay it off everyday with OPM (business) and have it converted into an unsecured and go from there. And use that card to fund their business. Starting a small franchise or a simple network marketing business is a business for starters.

6. Find ways to save money but still buy what you want.

© Provided by Gobankingrates budget

Credit cards and loans shouldn’t be the go-to options for making purchases. To encourage good monetary habits, teach your kids how to look for deals.

If you know your children love fruit snacks, help them find coupons for these treats in the Sunday paper. Show your kids that cutting coupons, or waiting for items to go on sale, can actually help them save money. If you shop around for deals, you can get what you want without spending a bundle.

Teaching kids to wait for what they want now reduces the odds that they will wind up in credit card debt down the line.


We look at deals, sales, coupons and other discounted gimmicks as a hook to grab 99ers attention who are cheap. We understand that with every dollar we spend is actually an investment. When we spend a dollar, every employee from the cash register to shipping and receiving is getting a piece of my dollar to take care of their families, send their child to college, care for a loved one, put food on the table, etc. Why, oh why would I want to skimp them with every penny looking for a sale?

When I “save” money, it’s not spending or investing. The bank use it to make more loans,. For what?

That’s one of the reasons why I do not teach children to save. Keep it moving, and buy what you want at full price (and tip if you can) because that staff, that waitress, that cashier, that car salesperson, that credit card representative on the phone depends on my dollar to be spent so they can have a job to earn that money in order to start their own business too. Or not. Either way, our children are not cheap to find “sales”, and they’re not savers.

This may sound like I’m contradicting myself relating to employees who depends on my dollars. However I can’t control their household’s financial habits or yours either. There will always be worker bees, and they will always teach their kids to be next generation worker bees as well. Why not pay the full price so they can at least have and keep a job?

7. Learn how to save and reap the rewards.

© Provided by Gobankingrates rewards

Instead of keeping kids out of financing decision-making, strive to involve them in the process. For example, if your family wants to take a vacation to Disneyland this year, encourage the children to help you save up for the trip.


There are numerous families that we know who hold weekly and monthly meetings regarding their finances and plan for the entire year. To keep it short, they would budget out how much it would be for a particular trip, and set aside that money in a special account. Then they would put the entire cost of the trip on the credit card to gain points, rewards, cash back, etc.

(remember, it’s a financial Porsche on plastic baby, drop that top! It’s a 4-wheel drive, go off-road and get wet!)

And when they returned, they used that money in cash to pay it off in full. It worked out really well.


Start by explaining to your children how much money it will cost for everyone to go on the trip. Next, come up with ideas to save the money as a family instead of putting the whole sum on a credit card and paying it off later. Make a colorful chart to track your savings — this will help young kids visualize how close they are to accomplishing the family goal.


Because of the children’s side business that became profitable within a month, it was able to pay for our trip without sacrificing all other expenses we had. Because it was THEIR business, they were involved in the process and understood the value of their state of mind on wealth, and how they could contribute to the family trip as a whole.

We really felt like the Rockefellers.


Creating smart money and credit habits now will help your kids navigate their financial lives as they grow — and eventually pass those same valuable lessons on to their own children.

Source credit: Scott Smith, GOBankingRates


This is really important to understand. This is one of the key reasons why you are hearing in the headlines that the middle-class is dying, and the perpetual “rich is getting richer while the poor is getting poorer” cliche repeating like an annoying broken record.

In this time of information on the Internet, social media is the largest collective database of snitches ever to exist. No longer can advocacy groups and nonprofits claim of poverty and income disparity from a lack of understanding, ethnicity disadvantages, or information anymore, at least in America. The information is so widely available to start a simple low cost business that people literally get it for free. Then they call these opportunities a “scam” because it calls them out on their BS of excuses of why they can’t. (trying to keep it Rated-G for the kids).

In other words; they would have to be living in a scam to know one.

What you just read in the article proves how contradicting the whole 99ers “Rich vs restofusitis” disease is. The advice above fuels the banking system, but that doesn’t mean it’s a bad thing. Just like a car; I doubt you blame the car dealer when someone hurts or kills another with the same car through reckless driving and call to protest the automaker. It sounds silly, but that’s what this whole “End The Feds” argument’s about. The central banks print the money that is fueled by savings accounts, mortgages, credit cards, tuition/student loans, etc from consumers who demands it. It’s encouraged by the middle-class and the “poor” to keep the printing pumping out currencies. They’re getting reckless off this debt through these vehicles called “15-30 yr mortgages, CDs. etc”. Then when they hit somebody, it’s the bank (money dealer) fault for opening the account for them. Then they blame the automaker (central bank) for printing it.

What does this have to do with this article? EVERYTHING.

How many of you would agree with the italic advice? This is where the discord is. Kids naturally desire wealth from birth. And if you don’t believe me, stop asking them what they want to be in Kindergarten and just tell them what they’re going to be and get it over with already — go to school to get good grades agreeing with the teacher without reciprocating challenging questions, go to college, get a job, stuck in traffic, hate Mondays, love Fridays and hope for a good retirement by — wait they’re still trying to figure that one out……………………………………………………………………

Kids desire more in life, and they have so much energy to light up the entire galaxy and some, and they have enough ideas to end all prejudice and wars overnight.

So what does the banking funded, public education indoctrinated, university endowment funded financial advisors tell you to do? It tells you to tell your children to get a job, stop fantasizing and imagining, and face reality made up of a bunch of grumpy 99ers who have an issue with the one percent like you, yet encourage them to park their money in your banks.

What an advice.

When our children get any advice from anyone including me, I tell them to ask the person including myself; then what?

That’s right. Then what? And hopefully, you know how to answer each and every last ‘then whats?’

Kids are not regurgitators, they are creators. And that is why money  ALWAYS grow on trees.

To their success, whatever path they choose 😉


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