When Should I Teach My Kids About Money? With Dr. Roy Salgado
Most Americans believe parents should teach their kids about money, but the reality is parents rarely engage their kids in healthy conversations about money. In this episode of the Stuff About Money podcast, Erik Garcia, CFP®, BFA, is joined by family therapist Dr. Roy Salgado to discuss how parents can engage with their kids in healthy conversations about money.
Episode Highlights:
- Dr. Roy Salgado explains what a one-year-old child could possibly know about money inside a family household. (2:43)
- Dr. Roy Salgado discusses how “interest” is one thing he wishes he had better understood 20 years ago. (3:52)
- Dr. Roy Salgado explains that parents unconsciously talk to their kids about money, and it may not be the right way to communicate it to them. (10:55)
- Dr. Roy Salgado shares that it is important to apply authoritative parenting when communicating with kids about money. (14:33)
- Dr. Roy Salgado justifies why people who have higher incomes talk less about money with their kids, and people with lower incomes talk more about money with their kids. (17:45)
- Dr. Roy Salgado shares how modeling behaviors affect and teach children in the right way. (23:51)
- Dr. Roy Salgado elaborates on the fundamentals of numbers and the right way to teach children about money. (27:57)
- Dr. Roy Salgado explains teaching natural law and consequences and offers an example of his 5-year-old son. (30:48)
- Erik reminds parents that teaching kids how to earn, spend, save, and invest money can be done in an everyday conversation. (37:40)
- Dr. Roy Salgado explains that the best teaching technique is to spend time with your kids and engage in appropriate healthy behaviors. (40:40)
Key Quotes:
- “We inadvertently talk to our kids about money, and we don’t realize it every day with everything that we do. And with every decision that we make, we may not have direct conversations, but we indirectly communicate our ideas about money.” – Dr. Roy Salgado
- “So you have like three distinct six-year periods of time to introduce things that become fundamental and rooted in the individual and are installed in their memory bank. If you introduce it too late, it becomes that much more difficult.” – Dr. Roy Salgado
- “Spend time with your kids, simply spending time with your kids, and engage in appropriate healthy behaviors. They’re going to model that for you.” – Dr. Roy Salgado
Resources Mentioned:
- Roy Salgado LinkedIn
- The University of Holy Cross Counseling Center
- Plan Wisely: How To Thrive As A Family During The COVID Crisis with Dr. Roy Salgado
- Plan Wisely: How To Deny Your Kid To Better Their Financial Future with Dr. Roy Salgado
- Erik Garcia, CFP®, BFA
- Xavier Angel, CFP®, ChFC, CLTC
- Plan Wisely Wealth Advisors
