What I Taught My Kids About Money

By Bill Taber

In a world focused on instant gratification (often in digital form), teaching kids about financial planning can feel like an uphill battle. But as a parent, I believe it’s one of the most critical life skills we can impart. 

Through years of trial and error, and with invaluable insights gleaned from my career as a financial advisor, I’ve developed a simple yet effective “money playbook” for my family.

The Family Meeting: Our Financial Foundation

My family includes my wife and our three sons and one daughter. We maintained a tradition of weekly “family meetings” throughout their childhoods, from ages 5 to 18. 

These gatherings became a regular forum where we discussed issues, problems, and plans individual family members were facing, working through answers together. This collaborative environment naturally extended to discussions about money, making financial literacy a consistent, non-intimidating topic.

At the close of each meeting, I’d dispense allowances, starting at a modest $2 per week and gradually increasing as they entered their teenage years. Along with the $2 allowance came specific instructions designed to cultivate healthy financial habits.

The Power of the “Save First” Rule and Delayed Gratification

The core instruction for their allowance was simple: save half of it. This portion went directly into their personal savings accounts, which we helped them open at our local bank. This “pay yourself first” principle became ingrained from a young age, teaching them that saving isn’t what’s left over, but a priority.

The remaining half of their allowance could be allocated to our church, reinforcing the value of giving, or spent on whatever they wished. However, we strongly encouraged them to save this portion too. Instead of impulse-buying smaller, insignificant items, we urged them to save their money until they could afford something truly important to them. 

This approach emphasized the concept of delayed gratification and helped them understand the power of patience and planning, seeing their savings grow toward a meaningful goal rather than being frittered away.

Learning the Value of Earning and Shared Investment

As my youngest son entered his teenage years, his list of desired tech gadgets seemed endless. By the time he was 14, we felt it was time for a new lesson: the value of earning his own money. 

We told him it was time to get a job if he truly wanted to acquire those bigger-ticket items. This wasn’t a punishment but an opportunity to connect effort directly with reward.

Instead of simply handing over money for larger purchases, we sometimes offered to pay for 50% of the final cost, forcing him to contribute the other half from his job income and savings from allowances. 

This co-investment approach taught him not only the discipline of earning and saving but also the shared responsibility in reaching a financial goal. It shifted his perspective from simply wanting something to actively working toward getting it.

Practical Spending and Smart Consumption

My wife took the lead in teaching our daughter about smart consumption, particularly when it came to clothes shopping. 

She emphasized the importance of buying when things are on sale, instilling a habit of seeking value and avoiding full-price impulse buys. Even more critically, she taught our daughter to consider whether a garment could be used for multiple occasions. 

This encouraged thoughtful purchasing, focusing on versatility and longevity rather than fleeting trends, effectively teaching the concept of “cost per wear.” These seemingly small lessons instilled a deep understanding of practical spending and wise consumer choices.

The Lasting Impact of Consistent Financial Education

It’s immensely gratifying to look back and see the fruits of these consistent efforts. Our adult children have indeed learned these lessons well. 

They are all financially independent, managing their own budgets, making wise investment decisions, and navigating their financial lives with confidence and responsibility.

Partner With a Professional 

As a professional fiduciary financial advisor in Des Moines, Iowa, I’ve learned that true financial literacy requires a dedicated set of values and habits.  

By starting early, being consistent, and involving them in practical scenarios, we’ve equipped our children with the tools they need to build prosperous financial futures. And that, for any parent, is a priceless return on investment.

Get in touch today by scheduling a 15-minute intro phone call online or reaching out to us at 515-557-1860 or invest@taberasset.com. 

About Bill

Bill Taber is President and Founder of TABER Asset Management, an independent, fiduciary wealth management firm, in Des Moines, Iowa, that strives to do one thing well: manage their clients’ money by creating wealth, building wealth, growing income, and preserving capital so they can experience financial freedom. With more than four decades of experience, Bill is dedicated to building relationships with his clients and their families and walking alongside them as they navigate financial decisions. His favorite days are the ones when he gets to witness the joy and relief on his clients’ faces when they realize they can pursue their dreams and live their ideal lifestyles. Bill is known for going the extra mile, getting things done with integrity, and working with a stewardship mentality.

Bill graduated from the University of Iowa with a bachelor’s degree in business administration and fell in love with the profession when he got to help one of his first clients—his father—turn his lifetime of hard work into a dream retirement. He got his start in the industry as a corporate services representative for Bankers Trust Company and spent decades working as Assistant Vice President of E.F. Hutton & Co. and First Vice President of Principal Financial Securities. He is also a graduate of the E-Myth Worldwide Mastery Business Development Program and is Series 65 registered. 

In his spare time, Bill enjoys giving back to his community and spending time with his family. His hobbies include traveling, gardening, reading, and practicing yoga, Pilates, and meditation. He also loves the simple joys of listening to music, going for walks or bike rides, and being in nature. To learn more about Bill, connect with him on LinkedIn.