S3E112: How to Teach Kids About Money and Investing at Any Age

Learning how to teach kids about money isn't just about giving them an allowance or telling them to save. It's about helping children understand where money comes from, how cash flow works, what it means to own assets, and how they can eventually make money work for them.

In this episode of Rich Dad StockCast, host Del Denney sits down with Rich Dad investing expert Andy Tanner to discuss how parents can raise financially confident kids—and why that education should begin much earlier than many parents realize.
Andy argues that parents shouldn't outsource their children's financial education to schools. He believes parents have both the responsibility and opportunity to teach the lessons that can shape how their children think about money for the rest of their lives.

And he didn't wait until his own children were teenagers.

Andy started teaching them as soon as they could understand the concepts. One of their first lessons came from a lemonade stand when they were around four years old. Rather than simply teaching them how to earn a few dollars, Andy used the experience to teach a fundamental business principle: to make money, you have to create value for someone else.

From there, the lessons progressed.

His sons took money earned through their lemonade business and became shareholders in companies they understood. One chose Disney; the other chose McDonald's. That allowed Andy to demonstrate the difference between working to earn money and owning an asset that participates in the profits created by a business.

Before they could even do complicated math, Andy taught them to understand cash flow by following the direction money moved. He and his wife then used the CASHFLOW game to let their children make financial decisions, make mistakes, and learn through experience.

As they grew older, the education became more sophisticated—from owning stocks and participating in real estate to studying taxes, business, options, and investing.
In this episode, you'll learn:

-When parents should start teaching kids about money
-How to explain money concepts without complicated math
-Why a lemonade stand can teach entrepreneurship and value creation
-How to introduce children to stocks and business ownership
-How to teach the difference between working for money and owning assets
-Why understanding cash flow matters more than simply learning to save
-How games and real-world experiences can make financial concepts easier to understand
-How financial lessons can evolve as children get older
-Why parents shouldn't rely solely on schools to provide financial education

Andy also shares his number-one recommendation for parents who want to begin: play the CASHFLOW game together. He argues that much of the game's value comes from learning to read the financial statement—including the income statement, balance sheet, and cash flow statement—not simply moving pieces around a board.

The goal isn't to turn children into stock analysts. It's to give them something much more valuable: the financial confidence and intelligence to make their own decisions as adults.

🎯 Visit https://bit.ly/3JsRdmj for access to FREE investing tools, including Andy's "Power of 6" ebook.

00:00 Invest in Your Kids
01:27 Free Tools at Stockcastbonus
03:13 When to Start Teaching Money
04:17 Parents vs Schools Rant
08:24 Lesson One Lemonade Stand
13:39 Lesson Two Become an Owner
19:32 Cashflow and Learning by Games
22:31 Level Up Stocks to Options
25:36 First Step Cashflow Game

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