The Personal Finance Podcast · Andrew Giancola

What the 1% Teach Their Kids About Money

·37 min·2 clips

Wealthy people, they don't ask for raises, they create value.

1. The Personal Finance Podcast episode "What the 1% Teach Their Kids About Money" centers on Andrew's framework for teaching children how money works. 2. Andrew, the host and founder of mastermoney.co, says the episode is meant to give parents tools they can use immediately. 3. The episode asks what parents should teach before social media teaches debt, car loans, and "live it up right now" spending. 4. Andrew says the first core principle is that "money is structured, not emotional," and he connects that to fear, guilt, and FOMO around stocks. 5. He says the second principle is that "every single dollar gets a job," so money should be allocated before spending. 6. He says the third principle is that "we teach by doing," because kids learn from repeated behavior more than lectures. 7. Andrew says the system can begin as early as age 3, depending on what a child understands. 8. He divides the lesson into two parts: how money enters through chores and how money gets managed through a wealth operating system. 9. Base responsibilities include making the bed, clearing plates, cleaning toys, cleaning rooms, and keeping backpacks ready. 10. He suggests a five-minute "power clean" with a timer or song to reset shared spaces. 11. Andrew says kids do not get paid for basic expectations, because showing up on time and cleaning up are adult habits. 12. He says paid chores should match age and ability, so a five-year-old can fold towels even if they cannot wash windows well. 13. He gives his own example of paying a four-year-old $4 a week and a seven-year-old $7 a week. 14. He recommends paying weekly in cash, ideally in ones from the bank, so children can budget physically. 15. He says missed chores should reduce pay or eliminate it entirely, because income should feel tied to performance. 16. He introduces a family job board for optional extra work such as washing the car, pulling weeds, cleaning the garage, or yard work. 17. He adds super points for effort, good attitude, and doing work with a smile, with rewards like candy, movies, or bonus dollars. 18. For money management, he uses three jars for young kids: save, spend, and give, with a 40-40-20 split. 19. As children get older, he adds invest and says ages 5 to 7 can learn stock ownership through companies like Disney, Nike, Lego, Mattel, Hasbro, and Apple, while ages 8 to 9 can learn interest through a parent acting as the bank. 20. He says ages 9 to 12 can use shadow investing or fractional shares, and ages 10 to 12 can open custodial brokerage accounts with parent matching, so teens learn compounding early.

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