Investors Community Bank's Podcast

Money Matters with Matt - December 11, 2020

December 10, 2020 ICB
Investors Community Bank's Podcast
Money Matters with Matt - December 11, 2020
Chapters
Investors Community Bank's Podcast
Money Matters with Matt - December 11, 2020
Dec 10, 2020
ICB

Matt discusses how to each kids about money, especially during these months of virtual schooling. 

Show Notes Transcript

Matt discusses how to each kids about money, especially during these months of virtual schooling. 

Speaker 1:
And now, Investors Community Bank welcomes you to Money Matters with Matt, on 1240 radio, WOMT.

Jim:
Matt Lemke from Investors Community Bank with us. Just two weeks away, merry Christmas, Matt.

Matt:
Merry Christmas, Jim.

Jim:
Let's talk a little bit about a learning experience, especially if you have little ones in the house and money. Teaching them about money is super important, especially this year with, well, the... Strange things have been going on. So how are we going to teach everyone about this?

Matt:
Yeah, that's a great point. There might not be a better opportunity than this year to talk to your kids about money. For a lot of reasons. A lot of parents are likely spending more time with their children at home due to canceled events, in-home schooling, so it provides an opportunity, not only for the kids to see what the daily home life looks like, but parents, the opportunity to talk to them about things that are going to benefit them down the road. We don't often get a chance like this to pause and be present with each other and some of the items that we can teach our kids during this time, me included, as I have two little girls, is don't shy away from the conversations about money. Make sure that you address it. And whether you are in a situation that has been positively impacted or negatively impacted, you can
teach your kids something, no matter what.

Jim:
One of the most important things is between need and want.

Matt:
Yeah, that's a great one. The pandemic has negatively impacted a lot of people and I think that gives an opportunity for us as parents to talk to your kids and explain the difference. The needs of the things that you have to have to continue to function on your day to day life, but wants are all those glittery, shiny things that we see on TV as we're watching some of the shows live and looking at the commercials and the fancy toys that advertisers try to get us to show off. Explaining the difference between the two is a great place to start.

Jim:
And then, money, you need to have money in order to spend it, but do we need to teach them how to make it?

Matt:
Yeah, that would be a great place to start as well. There's an opportunity to look and see some of the jobs during the pandemic that have been lost versus some of the jobs that have been deemed essential. It's a good opportunity to sit down and talk to your kids about the things that they find interesting and valuable in life and an opportunity for them to understand where they may want to land and that there are jobs all over that can be done and all of them can have an opportunity to earn some money, whether that's small jobs around the neighborhood that they might be able to pick up or actually going out and applying for something as businesses are getting back open and looking for people to work.

Jim:
Yeah. It may be a small job to someone young like that, but starting good habits when they're young is also ever so important, like saving or as some people refer to it as paying yourself first.

Matt:
Yeah, that's a great point. It's great to know needs and wants, it's great to know how to make money, but then congratulations, you've made it now, what do you do with it? And one of the important things that you should teach your kids is that you've got to cover all of your expenses, but then there's the opportunity for you to pay yourself, which means to put that money aside, set it away in a savings account where you're not touching it and not tempted to spend it and have that there for a rainy day. I know we've talked about that on this show before, but having an emergency fund and making sure that you take care of yourself and pay yourself first is incredibly important.

Jim:
Yeah. I believe that this year, especially those that had an emergency fund, the year was just a little bit better, wasn't it?

Matt:
Oh yeah, it had to be. Anytime you have that sense of security and that extra cushion to provide some sort of certainty in uncertain times, that's going to always put your mind at ease.

Jim:
Another important lesson, if you're talking with loved ones about money, say they make $100, that doesn't mean they should run out and spend $99 right away. You should spend a little less.

Matt:
Yeah, you absolutely teach them about spending less than you earn, which goes hand in hand with saving, and it also extends into a bigger conversation as you talk about credit cards. Because we all know that you can certainly make that $100, but you have access to credit where you can certainly spend more than $100, but at some point that bill will come due and making sure that your kids understand how to properly manage both their cash, as well as any access to credit that they have, and ensuring they understand that you always want to spend less than you're actually making.

Jim:
So Matt, is it ever too early to start talking to kids about investing?

Matt:
No, not in my opinion, certainly as a bank professional. I talk with my own kids and even in some school settings, they talk to kids about investing in the stock market, what that looks like. And again, there's an opportunity for us as parents to educate our children and simply say, "You've set some money aside over here in a savings account, but if you're looking for ways to have that money grow at a longer term, here are some ways that you can do it." You don't need to get into the nuances of the stock market and the mutual fund and bonds, but you can certainly start to explain the difference of short-term saving versus long-term saving and how they can make more the longer they're putting that money out there.

Jim:
Never miss a teaching moment with your kids and money is a super, super important thing to do because it'll touch their lives for every day for the rest of their lives. Great advice, Matt. Thank you for joining us and let's talk again soon.

Matt:
That sounds great. Take care, Jim.

Speaker 1:
You've been listening to Money Matters with Matt, presented by Investors Community Bank. Let your money work for you. To learn more, visit investorscommunitybank.com. And don't forget to tune into Money Matters with Matt every Friday morning here on 1240 radio, WOMT. Investors Community Bank, we promise to walk in your shoes. Member FDIC. An equal housing lender.