BiggerPockets Money Podcast 136: Secrets of a Money Savvy Family with Doug Nordman and Carol Pittner
Doug Nordman wanted to teach his daughter about money. But he knew that to get it right, he’d have to start when she was very very small. So he did. First, he taught her how to count, then he taught her how to add, then he showed her what she could do with money by using cash in transactions.
As Carol got older, she was able to handle the cash herself, learning how to make change, count change, etc. Carol started “earning” her own money, through allowance and jobs - which could only be done after her (non-paid) chores were complete.
Doug’s common-sense approach to teaching his daughter about money is actually quite brilliant. She starts learning about money - and making money mistakes - when the stakes are low. Your 8-year-old making a $20 mistake is far better than your 20 year old making a $10,000 mistake because he or she never learned how to manage money.
Carol joins her dad to talk about how these teachings affected her life - and how she is planning on teaching her own daughter about money and finances.
Carol and Doug have combined their recollections of this time together and written a book called Raising Your Money-Savvy Family For Next Generation Financial Independence, and it is the blueprint for exactly how to raise children who are ‘good with money’ and how to prepare them to be adults who are great with money.
If you’re struggling with how to teach your children about money, this is a must-listen episode.
In This Episode We Cover:
- Doug's journey with money
- How he learned to be smart about money
- How he budgeted money on raising a child
- What does high savings rate means to him
- Carol's outlook about finance
- Carol's financial story
- Overview of Carol's financial position
- Lean FI
- Talking about Carol's husband and his view about money
- Doug's advice on how to approach your kids when you are just starting out on this journey
- Where they planted their money
- And SO much more!
Links from the Show
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