By coinnews 
00:00 Speaker A
Americans who learned about money at a young age are more likely to get raises at work and implement healthy financial habits later in life according to a Bankrate survey. So, how can parents set that strong financial foundation early? Joining me now we’ve got David Delial. He is a money mindfulness expert and author. David, great to have you here. The survey found that opening a bank account as a kid is one way to instill good financial habits early. So, how would you advise parents to go about that?
00:33 David Delial
Yeah, it’s definitely a great way to involve your kids. And I mean the most important thing, if you are setting up a bank account with them, involve the child in the process. Get them involved, talk to them, make sure they’re comfortable because the whole point of all this is to make it something that’s enjoyable for them. So, highly recommend that and and and start that process with really just making sure that they’re comfortable.
01:05 Speaker A
So, let’s go through some of the decisions that they may have to make. Physical bank versus an online bank. What are some of the benefits there?
01:16 David Delial
So, I mean, for me, I love the convenience of a digital bank. Most of us do. But what’s crazy is our kids these days, a lot of them will actually never see or use physical cash. And there’s such an emotional component to using physical cash that as much as you can, when they’re younger, just get them comfortable with the idea of money, budgeting, and actually noticing that money being spent or going away. As much as possible, I’d try to use physical cash. So because of that, a physical bank is a great way for them to go in, have their money, see it go to a teller, or take money out. It just makes it a little bit more tangible and real for the kids.
02:12 Speaker A
So, how should parents and households have the conversations about what fees you might incur working with a bank?
02:25 David Delial
So that’s what’s so interesting, too. So now banks, it’s all fees. I mean, I remember when I was younger, you put your money in the bank, they pay an interest rate, and it was to earn money. Whereas now, the convenience, it’s a lot of fees. So, same with anything, like all these subscriptions and different things. Having that conversation with kids about money so they can start to realize what the costs are. And notice different banks are going to have different monthly fees, or if you have to withdraw or use your cards, just start to talk about it with them. Like the more they understand what the costs are and how they vary bank to bank, the better informed they can be and just understand that’s the cost for that bank.
03:20 Speaker A
And so, you mentioned bringing kids in and the children in early on in the process. What are some of the top ways that you’ve seen families have that conversation?
03:35 David Delial
I mean, the first is just starting to talk to them about the savings. So, young kids, they’re used to the piggy bank, they’re used to maybe jars and money around the house. But if you start talking about like where you as the parent save your money, or like I don’t keep all our money here, we store it at banks. You start talking about it. Take them to your bank or ask if they notice banks as you’re driving around. Like it really is easier than we think it is. It doesn’t have to require a big sit-down with the kids. It can be as easy as just conversation as you go into the bank. “I got to do some banking today, come in with me. This is what’s going on. This is why I do this.” It really is just having the conversation.
04:28 Speaker A
You know, I was at a dinner with the CEO a few weeks back and we went around the table of everybody that was there, and he asked, “What was the key financial lesson that your parents taught you?” What is your one key money lesson that all parents should be teaching their children?
04:51 David Delial
Uh, well, so, my favorite lesson is just this pause before you buy anything. Pause before you spend something and just ask, “Is this your awesome stuff?” I mean, that’s what I’ve built my whole brand around is that pause and asking that because we see it even with adults. We buy so quickly on impulse without thinking. That pause really gets you closer to the things that bring you more joy. And noticing, you know, maybe it’s not the ice cream that I really wanted or the bike that I really wanted. I wanted to go to the movies with my friends or go swimming with my friends, or just go for a bike ride. And the more you understand what’s really important to you and valuable to you, the more it breaks that whole pressure that we get with money. And that’s really, I mean, a huge lesson.