EconTalk David Owen on Parenting, Money, and the First National Bank of Dad
9 snips
May 14, 2012 David Owen, author of The First National Bank of Dad, discusses teaching kids about money, negotiating with children, teaching proper investment strategies, the poetry and prose of economics, measuring wealth and happiness, and teaching kids about money and work.
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High-Interest Bank of Dad
- David Owen created a home savings bank that paid his kids 5% interest monthly to teach saving.
- The high rate made saving exciting and understandable, aligning with their natural incentives.
Importance of Money Control for Kids
- Children learn money lessons by making manageable mistakes with control over spending.
- Giving kids real control over their money changes their spending behavior drastically.
Avoid Negotiating Money with Kids
- Parents should maintain a consistent money attitude with children to avoid constant negotiation.
- Negotiation over money often leads to conflicts and should be minimized by clear rules.