071. 7 Steps to Financial Literacy

Raising Money-Smart Kids

Teaching financial literacy gives children a strong foundation for their future, helping them sidestep common financial missteps and paving the way to long-term security and independence. In this episode, we’re talking about practical strategies for instilling the value of money, the importance of saving, and the basics of budgeting—all through engaging, hands-on activities that make learning fun. Tune in!

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Episode 071:

TWO WAYS TO LISTEN TO THIS EPISODE:
1. Click PLAY Button Above ^^ to listen here.
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Are you just starting your homeschooling journey? We’re here to help! Begin with our Get Started in Homeschooling page and Homeschooling FAQ to make the transition smoother. If you’re guiding a young child, explore our How to Homeschool Kindergarten. to make those first steps special. For middle schoolers, don’t miss our Middle School page packed with tips and advice. And if you’re heading into the high school years, our Essential Steps to Homeschool High School will guide you every step of the way!

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Show Notes

As homeschoolers, we strive to provide our children with a well-rounded education that goes beyond core subjects. We want our kids to thrive in every aspect of life, including essential life skills like financial well-being. For our children, who are just beginning to form their own financial habits and identities, learning about money early on is crucial. By teaching financial literacy, we’re giving them a head start in life, helping them avoid common pitfalls, and setting them up for a future of financial security and independence. Today, we’re exploring practical steps to teach your children the value of money, the importance of saving, and the basics of budgeting in a way that engages them in a hands-on, fun way.

Think about it—money plays a significant role in our lives, from the everyday decisions we make to the long-term goals we set. Financial literacy is not just about understanding dollars and cents; it’s about equipping our children with the tools they need as they grow into adulthood. We want to lay the foundation for financial responsibility that will benefit them for a lifetime. The first thing you want to do is:

1. Start Early (4:30)

Starting financial education early is key. Even preschoolers can begin to understand the concept of money if we introduce it in a playful and relatable way. Nothing beats real-world experience. We suggest starting by giving your child a small allowance, perhaps tied to simple chores like making their bed or helping set the table. We know that this can be controversial. There are two main sides to this debate: allowance vs. commission. With allowance, kids are paid a set weekly or monthly rate, independent of chores or other responsibilities. The second is a commission or work-for-pay system where they are paid for doing chores or making other contributions to the family like pet care and watching younger siblings. Whichever you choose is up to you.

 I have certain expectations that are expected and then my kids can earn money by doing ‘extra’ chores. I feel like this helps them see the connection between work and earning money. And we have certain things that you are expected to do as a contributing member of the family, but sometimes kids want more- maybe they are saving for a favorite toy or game. Maybe you need some additional help around the house!

Activity Idea:

• Allowance and Chores: Begin with a small weekly allowance. Create a chore chart that lists simple tasks your child can do to earn their allowance. For example, they could earn $1 for helping with dinner or setting the table each night or $2 for helping with laundry. This introduces the concept of earning money through effort and responsibility, and it also helps them learn about time management and the value of work.
• Play Store: Set up a “store” at home where they can use their earned money to “buy” things like toys or special snacks. Having a play store allows your kids to make decisions about spending, saving, and understanding the concept of value in a fun way. For more ideas, you can explore engaging financial literacy games on the U.S. Mint’s website, which offers interactive activities to make learning about money fun and the Federal Reserve Comic Books.

2. Saving (7:37)

At some point, your kids will want something that exceeds their immediate budget—this is a perfect opportunity to teach them about saving. Encourage them to set aside a portion of their allowance or gift money regularly. This will introduce them to the concept of delayed gratification and helps them understand the importance of setting financial goals.

Activity Idea:

• Savings Jars: Create three jars labeled “Save,” “Spend,” and “Share.” Each time your child receives money, have them divide it among the jars. For instance, they could put 50% in the “Save” jar, 40% in the “Spend” jar, and 10% in the “Share” jar for charity or gifts. This is a great visual approach that helps them understand different money management strategies, whether it be saving for future needs, budgeting a specific item, and giving to others.

• Savings Challenge: Try a fun savings challenge with your child using our free savings chart! Have them choose something they really want, like a toy or comic book. Every week, sit down together, count their savings, and mark their progress on the chart. Celebrate with them when they hit their goal! This is a great way to teach patience and the joy of working towards something special. We will link our free savings chart on our website so be sure to download it and help turn saving into a rewarding habit.

3. Budgeting (10:12)

Budgeting is a crucial skill that can be taught in a fun way. We suggest turning budgeting into a family project. For example, involve your kids in planning the budget for a family outing or grocery shopping. Show them how to list expenses, prioritize needs, and stick to a budget. This hands-on experience makes budgeting real and relevant to them.

Activity Idea:

• Grocery Budgeting: Give your child a small budget for a specific part of the grocery list, like snacks. Take them shopping with you and let them choose items that fit within their budget. This is a great place to start with young kids. It teaches them about price comparison and the importance of sticking to a budget. This can even count as your math for the day.
• Family Outing Planning: Plan a simple family outing, like a picnic in the park. Give your kids a budget to work with, and have them help choose the food, drinks, and activities while staying within the budget. This helps them understand the importance of planning and making choices that align with financial constraints. It also fosters critical thinking and decision-making. 

4. Discussions About Money (12:00)

It’s so important to talk openly about money with your kids. In our society, discussing financial matters can sometimes be considered taboo, but for our children to be financially literate, these conversations must be part of the dialogue. These discussions should be ongoing and cover everything from how to save and spend wisely to setting financial goals. By discussing both financial successes and some of our challenges, we normalize the ups and downs of managing money. This can make these topics less intimidating and more approachable for our kids. We suggest starting these discussions early and making them a regular part of your family’s routine. Encourage your children to ask questions, and don’t shy away from difficult topics like debt or credit. The more they understand now, the better prepared they’ll be to handle their finances responsibly in the future.

Activity Idea:

• Family Financial Meetings: Hold regular family meetings to discuss financial topics. For example, you could review the family’s monthly budget together and talk about upcoming expenses. You could even talk about saving for some long-term goals like a big family vacation. This will foster open communication and help demystify financial concepts. Ultimately, you want to teach your kids to be comfortable talking about money matters.
• You Need a Budget: The Proven System for Breaking the Paycheck-to-Paycheck Cycle, Getting Out of Debt, and Living the Life You Want. It provides tons of examples on how to budget for everyone. Explained very well every category along with how to set it up.

• Real-Life Scenarios: When faced with a financial decision, involve your child in the process. For example, if you’re deciding whether to buy a new appliance or repair an old one, explain the costs and benefits of each option. Ask for their input, and use it as an opportunity to teach about making wise financial choices. This helps children understand the impact of financial decisions in real-life situations.

5. Hands-On Financial Experience (16:10)

Again, nothing beats real-world experience to gain financial experience. Providing opportunities for them will allow your kids to practice and gain experience with real money. 

Activity Idea:

1. Bank Account: Open a savings account for your child and encourage them to deposit a portion of their allowance or gift money regularly. Show them how to track their balance and understand interest. This activity helps them learn about banking, the benefits of saving, and the basics of managing money in a formal setting. We found a local credit union that worked great for my kids. They even had savings incentives and if they saved a certain percentage, they earned points and they could buy things from their website ‘store’ with their points. Watching their savings grow and learning to manage a bank account really helped them develop a sense of financial responsibility and independence.
2. Gift Shopping: it’s a great idea to have your kids buy gifts for family members with their own money. Take them to a store with their set budget and guide to stay within their limit. This activity is two fold- it teaches them to think about others and manage their budget,

6. Teach Through Play (19:00)

Kids learn best when they’re having fun, so we suggest incorporating financial lessons into their playtime. Set up a play store or restaurant, complete with play money and a cash register. This not only teaches them about money but also reinforces math and social skills.

Activity Idea:

• Play Store: Create a pretend “store” at home with items from around the house. Give your child real money and let them “shop” for items. I know a lot of people like to use play money, but I believe there’s huge value in getting kids to handle real money. Encourage them to make decisions based on their budget. We loved doing this when my kids were little. We had this super cool cash register that used real money so they could ‘check out’. This is such a fun way to introduce basic financial concepts like transactions and budgeting. 
• Lemonade Stand: Help your child set up a lemonade stand or another small business. Guide them through the process of pricing, selling, and counting profits. This hands-on experience teaches them the basics of entrepreneurship, money management, and customer interaction, all while fostering creativity and problem-solving skills. I would buy all the supplies and the kids earned a ton of money, but I always made them pay me back for the supplies. It’s all part of learning how finances work. 

Money games:

• Cash Register and Money Store 3+
• Exact Change Card Game 6+
• Pay Day 8+
• Act Your Wage! 10+
• Cash Flow 101 Money Management 13+
• Money Bags Coin Value Game 6+
• Cover Your A$$ETS 7+
• Monopoly 8+

7. Teens and Young Adults (23:23)

As your kids grow into their teenage years, their financial education should evolve right along with them. This is an exciting time to introduce them to more advanced financial concepts like earning their own money, budgeting for personal expenses, and even investing for the future.

Activity Idea:

• Part Time Job: Getting a job can be such a rewarding experience for teens—not just because they’re earning their own money, but because they’re learning the value of hard work and responsibility. Whether they’re babysitting, mowing lawns, or working at a local coffee shop, it’s important to encourage them to set some financial goals for their earnings. Maybe they want to save up for something special like a car or start a savings fund for college. Sit down together and help them create a budget that makes sense for their goals and help them find balance between saving and spending. Homeschoolers are famous for becoming entrepreneurs and I created a Free Entrepreneur Business Pack – I’ll link it in the show notes. As a business owner myself, I really wanted to make something available for our kids. It’s filled with tools and templates to help them start and manage their own small business—whether that’s a lemonade stand, a lawn care service, or selling crocheted stuffed animals on Etsy. This is such a confidence-builder and teaches them so many skills like customer service and the basics of running a business. It’s a great way to show them that with a bit of effort and creativity, they can achieve something really cool. Plus, it looks great on a resume!  

• Meal Planning: We talked about the importance of budgeting at the grocery store but you can take it even further with teenagers. Empower them by giving them a weekly budget and guiding them in creating a grocery list based on planned meals. Take them shopping and compare products to ensure they stay within the budget. This activity teaches them how to manage money and also fosters decision-making skills and teaches organization skills. Get your FREE Meal Planners 
• Investing Together: If your child has saved some money, consider introducing them to investing. You can open a custodial brokerage account and guide them as they choose a few stocks. You can have regular “investment meetings” to review how their stocks are doing and talk about different investment strategies. Maybe you want to pick some of your own stocks too to report at your meetings. This can help them understand the basics of investing and the importance of long-term financial planning. It’s also a great way to bond. 

Keep the Conversation Going

Remember, teaching financial literacy is not a one-time lesson—it’s an ongoing conversation. Be there to guide your kids, offer advice, and model good financial behavior. Your goal is to equip your children with the tools they need to navigate their financial futures confidently.We hope these steps inspire you to start teaching your children about money in a way that’s engaging and practical. By instilling these values early, you’re setting them up for a lifetime of financial success and independence. We’re excited to hear how you’re introducing financial literacy to your kids—let’s raise a generation of financially savvy, responsible, and independent young adults!

Money games:

• Cash Register and Money Store 3+
• Exact Change Card Game 6+
• Pay Day 8+
• Act Your Wage! 10+
• Cash Flow 101 Money Management 13+
• Money Bags Coin Value Game 6+
• Cover Your A$$ETS 7+
• Monopoly 8+

Books to Explore:

• Clark Smart Parents, Clark Smart Kids by Clark Howard
• Money Matters for Kids by Larry Burkett

• Smart Money, Smart Kids by Dave Ramsey

• The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous, and Smart About Money by Ron Lieber

• Growing Money: A Complete Investing Guide for Kids by Gail Karlitz and Debbie Honig

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Redefining Normal: Embracing Homeschooling

The transition to homeschooling can stir up a whirlwind of emotions for many families. Many of us have a vision of what childhood should look like, and choosing to homeschool can make the future seem uncertain or vastly different from what we had imagined. It’s okay to grieve when your expectations don’t align with your new path. In today’s episode, we’re sharing valuable tips on how to navigate this transition, redefine your family’s new “normal,” and fully embrace the rewarding journey of homeschooling.

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Episode 070:

TWO WAYS TO LISTEN TO THIS EPISODE:
1. Click PLAY Button Above ^^ to listen here.
2. OR Listen on your favorite podcast platform:

Are you just starting your homeschooling journey? We’re here to help! Begin with our Get Started in Homeschooling page and Homeschooling FAQ to make the transition smoother. If you’re guiding a young child, explore our How to Homeschool Kindergarten. to make those first steps special. For middle schoolers, don’t miss our Middle School page packed with tips and advice. And if you’re heading into the high school years, our Essential Steps to Homeschool High School will guide you every step of the way!

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Show Notes

Even though we’ve always homeschooled our kids, we understand that the transition to homeschooling can bring about complex emotions for a lot of families. We often hear from parents who find themselves mourning the loss of what they believed to be “normal” and struggling with the new reality. It’s natural to feel this way when faced with significant changes, whether it’s homeschooling or another major shift. 

Some people have a specific picture of childhood in their minds, and the path ahead might look completely different now that you’ve chosen homeschooling. It’s perfectly normal to grieve when expectations clash with reality. Today, we’re providing some helpful tips on how to transition smoothly, redefine your family’s new “normal,” and embrace the rewarding journey ahead.

Navigating the Emotional Terrain

The shift to homeschooling can feel like stepping into uncharted territory, especially if it wasn’t the original plan. Some people feel a profound sense of loss, and that might not just be your routine, but also the future you had imagined. This mourning of “normal” can feel similar to grief over any significant life change—be it a career shift, a move, or even a personal loss. It’s about letting go of an expected path and embracing this new one that was not initially on your radar.

In Episode 041, “Finding Confidence as a Homeschooler,” we talked about overcoming fears and worries that all of us face on this journey. We also talked about when the right time is to start homeschooling, how you can teach subjects you’re not familiar with, and what you can do to build your confidence as a homeschool mom. That was more the practical side of building your confidence, but today, we wanted to talk about working through the apprehension you may be feeling about this new homeschooling lifestyle.

Embracing the New Journey

One of the first steps in overcoming this (or any) emotional hurdle is to recognize and honor your feelings. It’s important to acknowledge that mourning “normal” doesn’t mean you are ungrateful or regretful. After all, you’ve chosen to homeschool because you know it’s the right decision for your family. It simply means you’re adjusting to a significant life change. We would encourage you to give yourself permission to feel these emotions—it’s a crucial part of the healing process. 

Anybody who has ever chosen to homeschool has probably battled with this feeling in one way or another. It’s important to keep in mind that this transition is going to be a lot easier when you find a community of like-minded people who understand what you’re going through. In our Episode 007, “Finding Your People”, we emphasize the importance of connecting with other homeschoolers and walking through exactly how you can do that. Sometimes we feel like we’re on a solo mission here and connecting with other people who are also going through it can offer invaluable support and reassurance and it can make the transition a lot smoother and more enjoyable- not just for you, also your kids! There’s a chance that they may be having some of these feelings too.

Redefining “Normal”

As you navigate this new path, it’s essential to redefine what “normal” means for your family. The traditional markers of childhood—school events, sports teams, dances, and hangouts—might be a little different as a homeschooling family, but I assure you, homeschoolers are also enriching their lives with all these things too. However, they may take on new forms- that you actually just might love even MORE than the picture in your head. We’re going to get to all of that later in this episode.

Yeah, we got some great things to share. Also, I wanted to mention our episode about “Dealing with Naysayers,” —we talked about how to manage negative opinions and criticism about your homeschooling choice. It’s a reminder that your family’s “normal” may look different from the outside or within your current circle of friends. You don’t have to give up these friends, but there is an entire world of new friends waiting for you…and your kids! It may seem scary at first, but meeting new people and getting plugged into your homeschool community is probably a lot easier than you think.

And spend less time with unsupportive people!  Spend more time with others that lift you up. 

Myth of Socialization

Some of your worry and apprehension might be due to the fact that you think your children will be missing out on friendships. One of the most persistent myths about homeschooling is that these kids are isolated and lack social experiences. In reality, this misconception couldn’t be further from the truth.

The myth of socialization often stems from a lack of understanding of what homeschoolers actually do. Homeschoolers aren’t confined to their desks for eight hours a day. When you are one on one, lessons take a fraction of the time as traditional school which allows for hours and hours everyday for more activities and MORE opportunities to hang out with their friends.

 Even earning their associates degrees in high school, our kids never spent more than 4 hours a day on school – and in elementary maybe an hour a day.

A common mistake new homeschoolers make is trying to do too much. Remember that your homeschool day does not have to look like a traditional school day. You are not balancing 30 other students and classroom transitions. Super small teacher/student ratios enable us to get things done a lot quicker, and give your students ample free time to pursue their interests. 

You should definitely check out our Socialization Episode (047) for more information about debunking this myth, but we wanted to list out some of the ways here that homeschooling offers so many opportunities:

• Community Engagement: Homeschoolers are out interacting with their communities through volunteer work, local events, and service projects. This exposure helps them build relationships with people of all ages, backgrounds, and cultures.

• Field Trips and Outings: Trips to libraries, museums, parks, and historical sites can offer opportunities to engage with tons of people and learn from real-life experiences. If you’re kind of stuck and not sure where you should go or what you should do, download our field trip bundle – it has 100 Field Trip Ideas. Oftentimes, we visit places that compliment what we are currently studying. Or sometimes we’re just doing the homeschool activities around town – ice-skating rinks, gymnastics, so many places have homeschool days for a fraction of the price while other kids are in school.

• Extracurricular Activities: Sports teams, art classes, music lessons, and clubs provide additional avenues for socialization. These kids participate in group activities where they can meet friends with similar interests.  I also hosted 2 geography clubs and a writing/poetry club. We’ve done book clubs and our board game club. You can download our free extracurricular workbook to get some ideas.

• Homeschool Co-ops and Groups: Many homeschooling families join co-ops and support groups that organize educational activities, field trips, and different social events like dances or just coffee shop hangouts. We were in a great co-op for years- we even co-taught several classes together through the years. We had a great time with our Adventure Kids Club – we did so many activities and formed life-long friendships along the way.

• Family and Friends: these kids get to spend quality time with extended family and friends. This close-knit social circle fosters strong, meaningful relationships. I love that we can just go take a few days and hang out with the grandparents. They live an hour away and each of my kids have such a great relationship with them. 

Another really cool thing is that homeschoolers are not limited by age-segregated groups like in public school. These kids learn to interact with all kinds of people. Far from being isolated, homeschooling provides MORE opportunities for meaningful socialization than a traditional classroom setting.

Advantages of Homeschooling

When you’re feeling like your child might be missing out or you’re mourning the loss of that sense of “normal,” it’s helpful to focus on the positive aspects of homeschooling. There are so many advantages that can far outweigh traditional schooling:

• Personalized Learning: possibly one of the reasons you’ve chosen to homeschool your kids is that the education system failed them. One of the greatest advantages of homeschooling is the ability to tailor education to your child’s interests and learning style. Lessons can be customized to match your child’s strengths and areas for improvement, ensuring a more effective and engaging learning experience.

• Flexibility and Freedom: You can set your own schedule. If you have a night owl, you can do school in the afternoon or evening. There’s no rule that school has to happen between 8am and 4 PM. You can plan vacations and travel into your curriculum, and adjust learning plans as needed. Our Episode 052, Education Vacation laid out ways to make your vacation part of your school with a FREE Vacation Planner. And travel when it’s cheapest – when everybody else is in school. You know I love staying on budget!

• Strong Family Relationships: we talked about this earlier with the grandparents, spending more time together allows for deeper connections and shared experiences. You can do unit studies as a family and learn together. 

• Fostering a Love of Learning: Without the constraints of a traditional school schedule, homeschooling allows children to explore subjects they are passionate about. My kids have so much free time. My daughter had a job in high school and was able to save up to buy her own car. She also has rebuilt several cars and computers and my son is passionate about classical guitar. He performs his music- he teaches lessons and sets up his own gigs. This freedom encourages a lifelong love of learning and self-motivation. And mine were/are competitive athletes.  Shorter school days meant more studio time.  I don’t think we would have been able to dedicate that time with a normal school schedule.

• Direct Involvement in Learning: As a homeschool parent, you have a more direct role in your child’s daily education. This involvement allows you to guide their learning, provide immediate feedback, and ensure that their education aligns with your family’s goals and values.
• Real-Life Skill Building: Homeschooling provides opportunities for real-life skill building that might be overlooked in a traditional classroom. Children can learn practical skills through hands-on projects, family responsibilities, and community involvement.

• Customized Pace: Homeschooling allows children to progress at their own pace. They can move quickly through subjects they understand and spend more time on challenging topics, resulting in a more personalized and effective learning experience.

• No Homework: Since all learning occurs during the day, there is no need for additional homework. This approach reduces stress and allows children to focus on learning and enjoying their free time.

• Improved Performance: Research indicates that homeschooled students often perform better on standardized tests and show greater pride in their achievements. This self-motivation and personalized attention contribute to their academic success.

• Reduced Negative Pressures: Homeschooling minimizes exposure to negative social pressures such as bullying and peer ridicule. This supportive environment helps maintain your child’s self-esteem and encourages a positive attitude toward learning.

• Broader Exposure: these kids are not stuck in a classroom all day and have more exposure and time for experiences. This interaction helps them develop strong communication skills and gain insights from diverse perspectives.

Deschooling

Deschooling is an essential phase in transitioning to homeschooling. This time is really important when you’re worried about this new lifestyle. It involves taking a break from formal education methods and allowing both parents and children to adjust to a more relaxed and organic approach to learning. During this time, you can focus on fostering curiosity, creativity, and a love of learning without the constraints of traditional schooling.

For more information on deschooling and how to make the most of this transition, please visit Deschooling 101. It offers insights and practical tips for navigating this important phase in your homeschooling journey.

Finding Joy in the New Normal

As you adjust to homeschooling, remember that the journey is unique to each family. Embrace the changes and find joy in the new experiences and opportunities that homeschooling brings. The sense of loss over “normal” will gradually fade as you build new traditions and create a fulfilling educational experience. Mourning what could have been is a natural part of the process, but it doesn’t define your homeschooling journey. Celebrate the progress you make, cherish the moments of connection with your children, and find comfort in the knowledge that you are providing a meaningful and personalized education.

Remember too, not to project your personal feelings on your student.  A lot of times that “normal” we are mourning is an extension of our school and life experience and that is not necessarily the same thing that our kids experience.  We are all unique individuals.  Something important to us, might not be to our child and vice versa.  

Homeschool Prom video (9min):

In conclusion, transitioning to homeschooling can be both challenging and rewarding. By acknowledging and working through your feelings of loss, connecting with supportive communities, and actively seeking socialization and deschooling opportunities, you can embrace the gift of homeschooling and create a new “normal” that enriches your family’s life. Embrace this new chapter with an open heart, and know that you are not alone in this journey. Your path may be different from what you had originally envisioned, but it is filled with its own unique rewards and opportunities.  

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