The Personal Finance Podcast

Episode: "What the 1% Teach Their Kids About Money"

Host: Andrew Giancola
Release Date: January 12, 2026

Episode Overview

Andrew Giancola shares the foundational strategies, systems, and mindsets the wealthiest 1% use to teach their children about money. The episode unpacks how to raise financially literate kids who are not just knowledgeable, but who operate like future stewards of wealth. The approach is practical, rooted in financial psychology, and full of real-life tactics—from chore systems to investing—designed to help any family instill generational money skills.

Key Discussion Points & Insights

1. Why Financial Education for Kids is Critical (01:02–03:40)

• It’s a parent’s responsibility to teach kids about money—otherwise the world (often with poor advice) will do it for them.
• Leaving a monetary legacy isn’t enough; without financial education, most inherited money disappears by the third generation ("79% of inherited money is gone by the third generation" [03:22]).
• Teaching money early can drastically alter the trajectory of your child’s life.
• "What you can leave is a financial education which will last them for a lifetime." – Andrew [03:48]

2. Core “1%” Principles for Teaching Kids about Money (14:02–19:20)

Principle 1: Money Is Structured, Not Emotional

• Kids (and adults) need to learn discipline and systems for money, not to operate based on guilt, stress, or impulse.
• "We want to make sure that we are not just collecting random cash and stashing it in specific places. That’s what a lot of kids do." – Andrew [14:40]

Principle 2: Every Dollar Gets a Job

• All income should be purposefully allocated the moment it comes in—no money should “sit around.”
• "When it comes to your kids’ money, we’re gonna teach you how to set this up... so there’s no just extra money floating around." [15:45]

Principle 3: Teach by Doing

• Modeling is more impactful than lecturing—kids learn by observing consistent behaviors.
• "Wealth is how you operate, not what you know." [18:29]

3. The Earning System: How Kids Make Money (19:21–38:20)

Layer 1: Base Responsibilities

• Kids aren't paid for tasks that are simply expected as part of being in a family (e.g., making beds, clearing plates, keeping rooms clean).
• "You don’t get paid for basic expectations. You don’t get paid for showing up on time." – Andrew [25:25]
• Fun tip: "Power clean"—Whole family races for five minutes to clean together. [23:21]

Layer 2: Chores = Salary

• Weekly paid chores go above basic responsibilities, and pay is linked to age.
  • E.g., 5-year-old gets $5/week, 7-year-old gets $7/week.
• Consistent payday (always the same day, paid in cash/ones) reinforces structure and money handling.
  • "Pay them in cash… so they can budget this money." [30:01]
• If they don’t meet the baseline, they don’t get paid. "It’s all or nothing with the way that we have this structured." [32:25]

Layer 3: The Family Job Board (Extra Income)

• Optional, value-creating tasks (washing cars, yard work, special projects) with set price points.
• Teaches initiative, entrepreneurship, and aligning work with pay.
• "Wealthy people, they don’t ask for raises, they create value." [37:03]
• Kids can propose their own tasks and act as "problem solvers." [37:27]

Layer 4: Super Points System

• Non-monetary rewards for good attitude, putting in extra effort, or exhibiting good character.
• Can be traded for experiences (movies, trips), bonus money, or even small treats.
• The goal: Make good habits and the process itself fun and engaging.
• "Behavior compounds before money does." [41:57]

4. Teaching Kids to Manage Money—The Jar/Bucket System (48:40–55:15)

• Use three physical jars labeled Spend, Save, and Give (later adding Invest for older kids).
• Typical starting split: 40% Spend, 40% Save, 20% Give.
• Teaches intentional budgeting, generosity, delayed gratification, and the foundational structure for adult personal finance.
• "Budgeting doesn’t have to be complicated." [52:09]

5. Introducing Investing Early (55:16–01:09:15)

• Ages 5–7:
  • Teach investing through stories about familiar brands ("owning a piece of Disney or Apple").
• Ages 8–9:
  • Teach interest by acting as “the bank”; pay high, illustrative monthly interest on their “savings jar” to demonstrate compounding.
    • Andrew pays 25% monthly on savings for effect ("My oldest is a really good saver... he knows I am going to continue to give him more interest within that savings jar." [01:04:30]).
• Ages 9–12:
  • Shadow investing (paper portfolios) and, as understanding grows, fractional investing (buying real shares with small amounts).
• Ages 10–12:
  • First real investment (custodial brokerage account), potentially matching their contributions.
    • "As a parent, you can also match it for every contribution they give." [01:07:35]
• Teenagers:
  • Open real accounts, start with custodial Roth IRA if they have earned income, encourage regular investing.

6. Family Money Meetings (01:09:16–01:13:33)

• Weekly or monthly sit-downs to:
  • Review income and discuss how to allocate it among jars.
  • Add earned interest, check on money growth.
  • Reflect on spending/saving/giving choices.
  • Cultivate transparency and normalize talking about money.
• Sample questions: What did you spend money on? What are you saving for? How did it feel to give?
• "Wealthy people... talk about money constantly and they talk about it consistently." [01:12:22]

7. Adapting as Kids Grow (01:13:34–End)

• System and conversations should evolve into teenage years (future episode promised).
• Aim is not just knowledge, but empowering kids to operate like wealthy adults.

Notable Quotes & Memorable Moments

• On Parental Responsibility:
  "If you don't teach your kids about money, then social media is going to teach them about money or the world is going to teach them about money. And guess what? The world teaches terrible financial lessons." – Andrew [01:20]
• On How “1%” Family Legacies Fail:
  "Most folks who inherit money, that inherited money is gone by the third generation... So you want to make sure that you are creating good stewards of finances so they can continue to teach future generations." [02:40]
• On Incentive and Structure for Kids:
  "Feelings don’t dictate you getting paid." – Andrew [31:04]
• On the Role of Fun:
  "Make this as fun as you possibly can." [35:48]
• On the Habit’s Importance:
  "Behavior compounds before money does." [41:57]
• On Budgeting Simplicity:
  "Budgeting doesn’t have to be complicated. It can be very simple, just like this." [52:09]
• On Early Investing:
  "Small amounts of money over time can turn into very large amounts of money." [56:32]
• On Family Wealth Communication:
  "If you are starting to plant the seeds right now, it is going to change their life dramatically in the future." [01:12:29]

Timestamps for Major Segments

| Segment | Timestamp | | ------- | --------------- | | Why You Must Teach Your Kids About Money | 01:02–03:40 | | Core 1% Money Principles | 14:02–19:20 | | Chore/Earning System, Structure | 19:21–38:20 | | Super Points & Fun Factor | 38:21–43:20 | | The Three/Four-Jar System | 48:40–55:15 | | Teaching Investing by Age | 55:16–01:09:15 | | Family Money Meetings | 01:09:16–01:13:33 | | Adapting for Teens & Legacy | 01:13:34–End |

Recap & Actionable Takeaways

1. Model healthy, disciplined money habits for your kids, not just lectures.
2. Use structured earning systems (chores + family job board + super points) to teach the true value of work and money.
3. Implement simple budgeting (jar system) and begin conversations about saving, investing, and giving.
4. Regularly talk about money as a family—normalize financial discussions and let kids experience decision-making.
5. Adapt education as your kids mature—move from jars to bank accounts, from pretend to real investing.

"The earlier you plant these seeds, the greater the legacy your kids (and their kids) can build." – Andrew Giancola [Closing thought]

For more resources:
Download the free PDF guide linked in the show notes for a step-by-step system and conversation starters to use with your kids.

Engage:
Share the episode, join the Master Money community, and leave your own family money lessons in the comments.