How early is too early to start teaching your kids about managing money?
Thomas Carter Jr., the 10-year-old author of “The ABC’s of Money,” thinks it’s never too early.
He learned from his mom, Symone Carter, who also learned when she was young. When she was in sixth grade, she got detention and thought she’d sleep through it. Instead, her teacher used the time to talk to her about stocks.
Carter said she went home and asked her mom if she could buy some stocks, and her mom told her to wait until she was an adult. At 18, Symone bought her first stock, for Ford Motor Company, and still has it. At 19, she started working in mortgage lending.
When she had her four kids, she set up college savings accounts and taught them about how to set themselves up for a comfortable life.
She taught Thomas, her oldest son, about money over summer break, using a chalkboard and easel. She showed him the accounts she set up for him. It was a lot for her son to learn, so she asked him to write down what he understood. Those notes turned into his independently published book.
We talked to Thomas, as well as to a fourth-grade teacher and a director of financial wellness at a credit union, about money-making and saving advice for kids.
Thomas Carter, 10, the author “The ABC’s of Money”
When he’s not being a mini-finance bro, Thomas plays soccer and builds Lego sets on his YouTube channel. His best LEGO build is the Titanic, which took him a month.
You can find his book,“The ABC’s of Money,” at Ujamaa Community Bookstore, IndyReads and online. He wrote examples of financial terms — like A for assets and B for budget — and broke them down into real-world scenarios.
I read through this book, and there are terms that I didn’t know. I was so curious what “X” was, and it was xenocurrency. So how did you find out about all of these financial terms?
My mom.
Why should other kids learn about money?
Because when they’re adults, they can have an easier life.
How have you used what you learned writing your book in your real life?
I use my passive income. So like when I’m asleep, money comes through, so I can have a whole lot.
Payments from your book? And how have you learned to manage that money?
I asked my parents to invest it.
What is the most important thing you want someone to learn from this book?
You’re never too young to learn about money.
What do you want to be when you grow up?
A builder, probably a ship captain, drummer.
All three?
All three.
Jeff Sobieralski, a dad and the director of financial wellness at Everwise Credit Union
Jeff Sobieralski is a father of four. He didn’t learn how to handle money growing up, so he started adulthood using his credit card and paying the minimum balance every month.
One day, when he pulled out his credit card to pay for lunch, his mentor told him, “Look, every time you’re putting money on that, you’re willing to pay up to three times more than what that thing is worth if you’re not paying off the balance every single month.”
Now, he tries to pass down healthy money habits to his kids.
Where should you start when you’re teaching your kids about money? What are some examples of things that you can do?
Well, we start off with our wants versus our needs, like when we go to the grocery store. When the kids were little, we talked about why something wasn’t more important (to have) than others. And if we only have so much money that we can spend, then sometimes something that we want has to go back.
What are some ways you can model good habits for your kids?
We discuss why we’re spending money when we’re spending money. My kids think that a plastic card has plenty of money. But that’s not the case. We have dollar amounts. So we talk about those dollar amounts, that we only have so much to spend every single month.
Sometimes we have to say, “I’m sorry. We really want to do this, but we can’t right now, because we don’t have the funds to do so. We want to stick to our budget.”
What are some things you can do to set your kids up for success as they become teens and adults?
A savings account is a great idea. I also think having a piggy bank is a great idea. They can see how their money’s growing right in front of them.
As our kids get older and they’re saving up for something, we’ll sometimes match them on their funds. For example, my son is going to turn 17 on Sunday and he’s been saving up for a cell phone. We said that whatever he saved, we’d match half of that.
Sabrina Kauffman, a teacher at Theodore Potter School
Kauffman teaches fourth grade at Theodore Potter School 74. This week, she’s taking her students to BizTown, a Junior Achievement USA program that gives kids the chance to run banks, manage restaurants and vote for mayor.
How do you introduce financial concepts in an age-appropriate way?
It’s better to start simple and build on their knowledge. We start by discussing the differences between wants and needs. Students in our demographics know that difference very well. We also draw on their experiences by completing lessons that relate to them, such as having a lemonade stand.
What classroom activities or tools do you use to teach financial literacy?
We use sample checkbooks to learn how to balance a checkbook. We do in-class simulations to show students the difference between supply and demand. All these activities help the students internalize this experience.
What advice would you give to parents who want to reinforce financial lessons at home?
Keep it simple. Have students involved in a simple budget, like planning a meal, or saving up for a special treat. Many games, like Monopoly, Payday and The Game of Life have financial decisions that can be played also to help students practice.
Mirror Indy reporter Sophie Young covers services and resources. Contact her at sophie.young@mirrorindy.org.
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