From Allowance to Income: Preparing Your Teen for Financial Responsibility

The Texas Real Estate & Finance Podcast with Mike Mills

Are you a parent looking to equip your teen with the skills and knowledge needed for financial independence at a young age? Or perhaps you're a teenager eager to take control of your finances? In this episode, we'll unveil the perfect solution to help you gain the essential tools and understanding required to achieve financial autonomy and improved financial literacy. Join us on this journey towards self-reliance with your finances!

In this episode of the Texas Real Estate & Finance Podcast, host Mike Mills brings in his daughter, Catey Jane Mills, to discuss the importance of financial education for teens. The conversation covers Catey's personal experiences with setting up her checking and savings accounts, finding her first job, and navigating the challenges of separating familial and professional relationships. Throughout the episode, Catey shares her journey of learning about money and finance, highlighting the need for young adults to gain financial independence and literacy. Her insights and experiences serve as a relatable example for teenagers looking to enhance their financial knowledge and take control of their future. By listening to this episode, you can gain valuable insights into the practical aspects of financial education and the importance of starting early, making it a must-listen for any teenager seeking to achieve financial independence. ,In this episode of the Texas Real Estate & Finance Podcast, host Mike Mills invites his daughter, Catey Jane Mills, to share her insights on the significance of financial education for teens. Throughout the conversation, Catey discusses her own experiences with setting up bank accounts, finding her first job, and the challenges of maintaining a professional relationship with her father. Her journey provides relatable examples for teenagers seeking financial independence and literacy. Listeners can gain valuable insights into practical financial education and the importance of starting early, making this episode essential for any teenager looking to enhance their financial knowledge and take control of their future.

Timestamped summary of this episode:

00:00:12 - Introducing the Podcast and Guest

Mike Mills introduces the Texas Real Estate and Finance podcast and his daughter, Katie James, as the guest. He shares his background in mortgage making and sets the stage for the finance-focused conversation.

00:00:29 - Teaching Kids about Money

Mike discusses the challenges of teaching kids about money in today's financial landscape. He emphasizes the importance of parental guidance in financial education and sets the stage for the main topic of imparting crucial money management wisdom to the next generation.

00:01:27 - Financial Challenges of Today's Generation

Mike reflects on the financial challenges faced by today's generation compared to previous generations. He highlights the differences in work environments, retirement options, and the impact on future financial independence for young adults.

00:02:37 - Parenting and Financial Education

Mike shares his approach to kick-starting financial education for his 16-year-old daughter. He emphasizes the significance of instilling financial knowledge before his daughter becomes independent and discusses the trial and error process of guiding her through this financial journey.

00:03:59 - Opening a Checking Account

Mike and Katie discuss the process of opening a checking account for Katie. Katie shares her initial reluctance, the detailed information required, and the overall experience at the bank. They also discuss the transition from using a financial app to managing money through the new bank account.

00:12:02 - Setting Up Checking and Savings Account

Mike helps Catey set up her checking account and gets her a bank card. They discuss the process of deposits and the rationale behind setting up a savings account.

00:13:32 - Direct Deposit and Human Nature Hack

Mike explains the concept of direct deposit and how it can be split between checking and savings accounts. He also discusses the human nature hack of keeping savings separate to prevent unnecessary spending.

00:17:01 - Feeling Grown Up

Mike discusses Catey's sense of independence and responsibility with her Bank of America card. He emphasizes the importance of feeling in control of her finances.

00:17:43 - Overdrafts and Checks

Mike explains the concept of overdrafts and how they used to be managed with physical checks. He also discusses the shift towards electronic transactions and the need to opt-out of overdrafts.

00:20:02 - Lessons from "Rich Dad, Poor Dad"

Mike and Catey discuss the book "Rich Dad, Poor Dad" by Robert Kiyosaki. They focus on the first chapter, where the protagonist learns about making money and creates a plan to counterfeit coins.

00:23:19 - Early Work Experience

The conversation begins with a discussion about the guest's early work experience, where he made very little money and had to give up his little league baseball.

00:24:31 - Lessons on Employment and Independence

The guest's father teaches him the importance of being his own boss and not being dependent on someone else for his income, emphasizing the need to advocate for oneself in the workplace.

00:27:45 - The Gender Pay Gap

The conversation delves into the gender pay gap, exploring the factors that contribute to it, including the impact of family responsibilities on women's careers and the importance of women advocating for themselves in the workplace.

00:30:43 - Freedom and Financial Education

The guest's father emphasizes the value of freedom in one's career, encouraging the guest to prioritize financial education and independence over traditional education to achieve financial freedom.

00:33:52 - Importance of Financial Planning in Education

The conversation highlights the importance of considering the practical implications of college education, such as potential career changes and financial implications, urging listeners to prioritize financial planning alongside traditional education.

00:34:42 - Lack of Financial Education in School

Catey discusses the lack of financial education in her high school, expressing frustration at the absence of money-related topics in the curriculum. She mentions her upcoming global business class but notes the overall dearth of financial literacy education.

00:35:38 - Importance of Financial Knowledge

Mike emphasizes the importance of understanding money matters as Catey approaches adulthood. He acknowledges the limitations of schools in teaching financial literacy but stresses the fundamental role of money management in one's life.

00:36:53 - Learning Resources for Financial Knowledge

Catey mentions using TikTok and YouTube as potential sources for learning about finances. She expresses a preference for TikTok due to its concise and specific content. Mike encourages her to curate her TikTok feed with financial content for ongoing education.

00:41:15 - Fear and Ignorance Regarding Money

The conversation delves into people's aversion to money-related topics, attributing it to a combination of boredom and complexity. Mike emphasizes the significance of financial knowledge and the potential consequences of ignoring it as a crucial aspect of adult life.

00:46:27 - Challenges of Balancing Work and Family

Catey discusses the challenges of separating her father from her boss, struggling with focus and boredom in her previous job, and her decision to seek alternative employment opportunities.

00:48:23 - Transition to New Job Search

Catey recalls her experience applying for a new job through Indeed and the challenges she faced in finding a suitable position, eventually landing a role at Aquatots swim school.

00:50:16 - First Day at New Job

Catey shares her initial experience at Aquatots, including the training process, the monotony of office-based training, and her excitement for the active and varied nature of the job.

00:52:30 - Challenges of Following in Parent's Footsteps

Catey discusses the unique challenge of working at a job previously held by her father, recognizing the potential for increased scrutiny and expectations in her new role.

00:56:08 - Financial Awareness and Tax Considerations

Catey expresses concern about the impact of taxes on her earnings and the potential for a reduced take-home pay, but also acknowledges the long-term benefits of gaining financial experience through her first job.

00:57:47 - Cognitive Functionality and Men's Stupidity

Mike discusses cognitive functionality and men's seeming stupidity, including the challenges of teaching his brother. He admits men's stupidity, emphasizing ongoing learning and growth.

00:58:03 - Future Topics and Budgeting

Mike plans future podcast topics, including making deposits, taxes, and budgeting. He encourages Catey to curate her TikTok feed for more learning and questions, praising her improvement in the conversation.

00:58:49 - Acknowledging Improvement

Mike appreciates Catey's improved participation in the conversation, acknowledging that she did much better and encouraging her progress.

00:59:03 - Audience Engagement and Soundboard Excitement

Mike thanks the audience for sticking around and asks for their input to improve the podcast. He playfully acknowledges his excitement about using a soundboard.

00:59:35 - Preview of Next Episode

Mike previews the next episode with guest Brad Bingham, focusing on the rising insurance premiums and the reasons behind them. He encourages the audience to tune in for valuable insights from Brad.

In this episode, you will be able to:

• Mastering financial education empowers you to take control of your future.
• Simplify the process of opening a checking account and gain financial freedom.
• Advocate for yourself in the workplace and unlock opportunities for growth.
• Learn essential skills for starting and managing your first job with confidence.
• Embrace financial literacy as a tool for personal growth and independence.

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• https://www.linkedin.com/linkedin.com/in/mike-mills-49a09621/