Teachable Moments 

Podcast Transcription 

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Hey everyone, welcome to another episode of PFCU’s Money Talk podcast, I’m your host, Maddy. I want to talk about kind of a cool topic today and that’s teachable moments.  As parents, we love to have them. They’re unplanned, everyday situations that offer the perfect opportunity to teach children valuable life lessons. These moments allow parents to share knowledge and experiences in a meaningful but real-world context. When teaching kids about money specifically, these spontaneous lessons are often the ones that children remember the most because they involve active participation and those real-life applications.

Recognizing teachable moments requires an awareness of those day-to-day situations that naturally lend themselves to discussions about money. This allows kids to see firsthand how financial decisions are made and the thinking that goes into managing money wisely. Starting these discussions about money at a young age is only going to help your child grow into a money smart adult. Okay, so let’s break it down a little bit. I’m going to give you some concrete examples of teachable moments around money.

First, is the grocery store. This is a prime location for teaching kids about budgeting, smart shopping, and knowing the difference between needs and wants. First is comparing prices. Encourage your child to help you compare the prices of similar products. Explain how just a slight price difference can add up over time and how choosing the more affordable option can help you save money for other things. Next is needs vs. wants. As you navigate those grocery aisles, discuss the difference between needs and wants. While it's okay to treat ourselves occasionally, it's important to prioritize necessities like healthy food and household essentials. And last is sticking to that budget. Before you head to the store, involve your child in making a shopping list and setting a budget. And as you shop, make sure you keep referring to that list and keep track of your spending.

Next is involving your children in the bill-paying process which can help them understand the responsibility of managing household expenses. Explain how you prioritize spending, such as ensuring that all essential bills are paid before you allocate any money to discretionary spending like entertainment or eating out. And then also talk about the consequences of late payments. For example, having the electricity shut off or being unable to qualify for a loan because of damaged credit.

Next is donating to charity. Teaching kids the importance of giving back and social responsibility. Talk about why it's important to give back and support causes that care about those in need. Share examples of how these organizations make a difference in people's lives and how even small donations can make a big impact. Make sure to select a reputable charity and involve your child in researching and selecting one. Explain how to evaluate a charity's mission, their financial transparency, and effectiveness to ensure that your donation will be used responsibly. And don’t be afraid to be really get them involved! So, for example, my family likes to donate to Toys for Tots during the holiday season so, I take my kids to the store with me, and I let them make decisions on what to get based on the wish list that we have. It’s a great conversation starter on helping others and it’s really a fun way to get them appropriately involved 

The next thing you can think about getting your kids involved with is making a major purchase like a new car or a new appliance. Encourage your child to help research different options and do some comparison shopping. Look at reviews and prices and features. And explain how taking time to gather that information allows you to get the best value for your money. And then talk about financing and interest. If you're considering financing your major purchase, explain how loans and credit work and the importance of shopping around for the best interest rates.

A few additional examples include cash gifts, so when your child receives any money as a gift, use it to discuss saving, spending, and donating. You could even get them 3 jars- one for saving, one for spending and one for donating and have them put some money in each jar so they can actually visually see where the money is going. Or if your child wants a new toy or a new game, discuss the concept of earning money through chores or in other ways and help them plan a saving strategy. Break down how much they have to save each week or month to meet their goal by a specific date. If you’re eating out at a restaurant, discuss the cost differences between cooking at home versus eating out. Encourage your child to consider the value of the experience and its impact on your budget. And then the last example I have is back-to-school shopping which it’s going to be time for before you know it. Involve your child in creating a list of needed supplies and setting a budget. Compare prices at different stores and discuss the value of quality vs. the quantity when purchasing. This is also a great space to talk about those needs and wants- there are a lot of extras with school supplies that are not really necessary, but you know that they love so, it’s a great opportunity to talk about what they need vs what they want.

Successfully engaging children during teachable moments can make the difference between a lesson that sticks and one that fades quickly. The key is to remain observant and responsive to children's cues. So, for example, if they are showing interest in buying a toy, there’s the opportunity to talk about saving and how they can reach their goals. It will really signal their openness to learn something new. And remember, just keep the conversations fun and interactive, that’s the key to making the lessons memorable and using those real-life examples and getting them involved. So, the next time you find yourself in a situation involving money, take a moment to consider how you can use it as an opportunity to engage with your child.

Thanks for listening everyone! See you next time

Money Talk is a podcast brought to you by PFCU. PFCU offers many products and services to fit your needs. From our various loan and account options to our team of financial coaches to help you reach your goals. Make sure to take advantage of the many conveniences PFCU offers, such as the mobile app, mobile wallets, bill pay, and more. Visit our website at pfcu4me.com to learn more. PFCU is an equal housing lender and is federally insured by the NCUA.