Family Rules! The Podcast S1 E27: Ep. 27: "The Family Bank: Teaching Kids Healthy Finances" with Richard and Linda Eyre
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Sep 24, 2021 Richard and Linda Eyre, authors and parenting experts, dive into the concept of a family bank to combat entitlement in children. They discuss the importance of teaching kids about money early and the pitfalls of traditional allowances. Richard illustrates how to set up this unique banking system, where kids earn money through specific household jobs, fostering responsibility and accountability. The Eyres emphasize letting children make financial mistakes in a safe environment and the role of grandparents in reinforcing these lessons, ultimately advocating for a practical approach to financial literacy.
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Earned Money Beats Handouts
- An allowance as a handout often teaches entitlement, not responsibility.
- Earned money creates motivation and a vastly different mindset than welfare-style allowances.
Set Up A Physical Family Bank
- Create a visible, physical "family bank" with clear hours and a banker role to teach kids money handling.
- Give children checkbooks or simple tracking tools and pay interest to make saving tangible.
Pay For Specific Household Jobs
- Assign just two to four repeatable chores that earn pay because you'd otherwise hire someone to do them.
- Have kids log completed tasks, get a parent's initial, and deposit the card into the bank for Saturday banking.
