Hello, internet! My name’s Daniel, and I’m a dad of two wonderful (and slightly chaotic) boys, Jacob (9) and Benji (7). This blog? Well I realized I never explained why it exists in the first place. It’s simple. I realized I had the financial literacy of a peanut!
It all started when Jacob asked me, “Dad, are we rich?” and I, in all my wisdom, responded with, “Uhhh…well…rich in love, buddy.”
That was the moment I knew I needed to step up my financial game—not just for myself but for my kids. So here we are, learning about money together as a family. This article will take you on our journey, sharing practical financial literacy tips, personal (and often ridiculous) stories, and the basics of financial literacy in a way that even my seven-year-old can understand. Buckle up!
What Even is Financial Literacy?
If you asked me to define financial literacy a few years ago, I probably would have said, “It’s knowing how much money you don’t have.” Turns out, that’s financial illiteracy. Who knew?
So, let’s start with a simple financial literacy definition: It’s the ability to understand and manage your money effectively. That means knowing how to budget, save, invest, and make informed financial decisions. Basically, all the stuff they should have taught us in school instead of the Pythagorean theorem (which, by the way, I have never used in real life).
The Moment I Knew We Had a Problem
The other day, Benji tried to buy a toy at the store with monopoly money. When the cashier explained it wouldn’t work, he turned to me and whispered, “It’s okay, Dad, just use your magic card.”
Ah, yes. The magic card. Otherwise known as a credit card—the thing that makes money seem infinite until your statement arrives, and suddenly, you’re crying into your coffee. This was my wake-up call that my kids had absolutely no concept of real money. And honestly? I wasn’t much better.
So, I did what any responsible dad would do: I Googled “financial literacy for dummies.” And that, my friends, is how this whole journey started.
Teaching Kids About Money (Without Boring Them to Tears)
Money talk can feel overwhelming, especially when you’re explaining it to kids whose primary financial goals involve Pokémon cards and gummy bears. But here are some strategies we’ve used that have actually worked:
1. The Save, Spend, Give Jars
Instead of just handing them an allowance and watching it vanish into the nearest vending machine, we set up three jars:
- Save: For bigger purchases they want in the future (like that overpriced Lego set Jacob’s been eyeing).
- Spend: For little things they can buy now (so they stop begging me at checkout).
- Give: To teach generosity and the importance of helping others.
When Benji realized he had to wait to buy a toy, he dramatically sighed, “Ugh, this is taking forever. Can’t I just finance it?” Not today, buddy. Not today.
2. Earning Money (a.k.a. “Dad, You Owe Me”)
We introduced the idea that money is earned, not just handed out. Chores now have a small payment attached—things like setting the table, helping with yard work, and not causing complete destruction in the living room.
Jacob, ever the entrepreneur, tried to charge me a “convenience fee” for cleaning his own room. I’m both annoyed and a little proud.
3. The Grocery Store Game
Every trip to the store is now a mini financial literacy course. I give the boys a small budget and let them pick a snack, but they have to stay under their limit. It’s been eye-opening (for them and for me).
Last week, Jacob learned about sales tax the hard way when his total was more than expected. “WAIT, what?! They sneak in extra fees? That’s so unfair!”
Welcome to adulthood, kid.
Financial Literacy for Parents (Because We Need Help Too)
While teaching my kids, I realized I needed a serious financial education course myself. Here are some things I’ve learned along the way:
1. Budgeting Is Not Just a Suggestion
Before, my “budget” was just hoping my bank account didn’t hit zero. Now, we use an actual system where we track income and expenses (who knew?). There are tons of online financial literacy courses that make budgeting easy—even for people like me who used to think “discretionary spending” meant buying whatever I feel like.
2. Debt Is the Opposite of Magic
I used to think credit cards were great because you could buy things without actually paying for them (at least, not right away). Then I learned about interest rates. Now I explain it to my kids like this: “If you borrow a dollar, you have to pay back that dollar plus a ‘bad-decision tax.’”
3. Investing Is Not Just for Rich People
For the longest time, I thought investing was something only fancy businessmen did. Turns out, anyone can start with just a few bucks. Now, we’re learning about compound interest together—Jacob calls it “money that makes baby money.”
Why I Started This Blog
This whole financial journey has been eye-opening. I started this blog because I wish someone had taught me all this stuff when I was a kid. Schools don’t always cover the basics of financial literacy, and honestly, a lot of adults (myself included) are just figuring it out as we go.
By sharing our family’s ups, downs, and “oh-no” moments, I hope to make financial literacy online accessible and fun for other parents and kids. Plus, if my mistakes can save you from making the same ones, then hey, at least someone is winning.
Final Thoughts: The Adventure Continues
Financial literacy is a journey, not a destination (though I would like to arrive at the land of No More Bills someday). We’re still learning, making mistakes, and figuring things out together.
So if you’re just starting, don’t worry—you’re not alone. Take it one step at a time, have a few laughs along the way, and remember: If my 7-year-old can understand this stuff, so can you.
Now, if you’ll excuse me, I have to go explain to Benji why we cannot buy a Tesla just because “they look cool.” Wish me luck!