Benjamin Talks with Nikki and Carissa
Benjamin Talks with Nikki and Carissa
If you’ve listened to this show for just a little while, you know that I’m passionate about financial literacy. I always say financial literacy is like regular literacy, it needs to be taught from and early age, preferably practiced and supported at home and continually learned as you grow older and your financial decisions get more complicated.
Financial literacy is the core mission of The Financial Gym and it’s also the core mission for today’s guests, Nikki and Carissa, co-founders of the site Benjamin Talks. Nikki and Carissa join me today to talk about why they wanted to create a site devoted to helping kids and their parents become more financially literate and also share some best practices to teach kids important and sustainable money habits.
What are we drinking?
Nikki - Large, black, iced coffee with two shots of espresso
Carissa - Large cold brew with oat milk
Shannon - Black Cherry Schweppes
Podcast Notes
Nikki and Carissa both started their careers at Goldman Sachs over a decade ago. They both lived in the same NY suburb and they have six kids between them.
They both had a passion for financial literacy for kids, but they found that there was no blueprint. They launched Benjamin Talks in November 2020, which is a media content company that focuses on all things family and finances. They give parents tips, tricks, and confidence to have money talks with their kids.
Nikki has a 6 year-old son, 3 year-old daughter, and a 1 year-old daughter. Carissa has a 7 year-old son, 5 year-old daughter, and a 3 year-old son.
Children can understand value at the age of three, such as delayed gratification and mindful spending. By age seven, they can have a fully formed relationship with money. Age five is a great place to start.
The best place to start with kids that young is by using an allowance. Their product, the Benji Bank has three silos: spend, save, and give. You can’t learn about money without using money.
Allowance isn’t about chores, because everyone in the household should help and be a good teammate. They get an allowance to learn to deal with money and not all dollars are to be used for spending.
Nikki and Carissa use cash. If the kids get gift cards, they can still use the Benji Bank. You need to create an economic system for them that will be similar to when they are older. It’s not about what they are doing around the house.
When money isn’t a tangible item, it is really hard for kids to grasp. It is important for kids to have hands-on experience.
50% of parents are unwilling to talk to their kids about money. Two thirds of American adults can’t pass a financial literacy test.
If you have a money-savvy kid, and they want to earn more, find jobs around the house that you may hire out and pay them an age-appropriate wage. This helps create an entrepreneurial spirit and it teaches them they can earn more money.
The more you can create what will be facing them when they move out is the best scenario. Let your kids learn lessons sooner than later. There are too many kids in their 20s and 30s making bad choices, because their parents protected them from it.
When you give an allowance, don’t set boundaries and let your kids make mistakes. Let them do what they want and learn from it on a smaller scale.
Carissa was surprised at how interested her kids were in the business and wanting to be involved it. Include your kids, especially if they are showing interest. It allows exposure to career choices, business decisions, and other things they will face as adults.
Little moments, like talking about parking meters and why you need to pay them, go a long way.
A big challenge is that parents don’t feel equipped to talk about certain money topics, because they weren’t taught. You don’t need to pretend to know everything, instead, learn with them.
In their weekly newsletter, the BT Gazette, Nikki and Carissa recap the top three to five hot financial topics of the week and they do it in a way that will resonate with kids. Parents are more willing to engage after reading their newsletter, because it breaks down the topics.
Financial literacy is just another language we need to learn, but we don’t learn it anywhere. Nikki and Carissa want to take the taboo out of money talks, because this topic is so important.
It’s never too early to start the conversation, and it’s also never too late, it just needs to be age appropriate. The older they get, bring them into the household budget conversation.
Set a threshold for clothing and have your child pay the difference if they want something more expensive. Telling your kids no is really important, because it forces them to make a decision to spend their own money, or not spend and not get what they want.
By not saying no, you are creating a habit that will be unsustainable for your kids to continue, and your kids may go into credit card debt to maintain that habit.
Make money talks part of every day conversations, give allowances, and teach budgeting through spending/saving/giving.
The Gym frequently sees 20- and 30-year-olds getting parental support, and they aren’t happy about it. There is a lot of shame around that. Teach them value early on.
Engage in the process of pooling excess cash around the house into a family funds jar, and, after three months, make a choice as a family (ice cream, movie, bowing). Start this early.
If you have a few kids, you will find that you will have a spender and a saver. Educate them and engage with them so they understand the choices they are making. This is where they learn trading. Not everyone will be 100% happy, but feeling okay at the end is a win.
The best things in life are free, like a nature walk or hike. Educate your children, so, no matter what path they take, they understand their choices and they have the financial financial foundation to thrive.
Takeaway: My biggest takeaway is that in addition to all of the roles we play as parents, normalizing money conversations and teaching great money habits is very high on the list of gifts we should give our children that will positively impact them their entire lives. Benjamin Talks is a great site for you to help with these conversations.
Random Three Questions
What is the biggest spend you made that you regret?
What is something you binged during the pandemic?
What do you do to relax?
Connect with Nikki & Carissa
Instagram: @benjamintalks
Website: BenjaminTalks.com
If you have any topics you would like me to cover on this podcast, or if you’d like to get in the financially naked hot seat, I encourage you to email me to Shannon@fingyms.com, or join the private Martinis and Your Money Facebook group, and let me know what you want to hear.
In addition to helping clients save, spend, and build wealth, a primary role our trainers play at the Financial Gym is the role of financial educator. If you are someone who didn’t learn financial literacy at home, in school, or on the job, I hope you’ll think of The Financial Gym as the place to go and your financial trainer as your BFF, your best financial friend, who’s there to help you navigate the jargon and understand the language of personal finance in a fun and empowering way. Head over to financialgym.com to get set up today.