Lecture on Financial Literacy for Kids and Families

Introduction

• Speaker: Scott Donald
• Focus on financial literacy and its impact on future generations
• Research involved interviews with 100 mega-wealth families
• Emphasis on teaching kids practical money skills

Scott Donald's Background

• Comes from a line of philanthropists
• Family built and donated wealth from InterWest Bank
• Leading voice in children’s financial education with millions of families impacted

Key Challenges in Financial Education

• Lack of practical financial education in schools
• Misalignment of academic subjects with real-world financial skills
• Financial illiteracy among young adults
• Cultural discomfort and fear around discussing money

Solutions and Contributions

Apex Leadership Co.

• Fundraising company that raised significant funds for schools
• Recognized the gap in financial education for children

Children's Business Fairs

• Introduced with Jeff Sandifer
• Hands-on experience for kids to earn money and learn business skills

My First Sale

• Online platform similar to Etsy for kids
• Encourages entrepreneurship and practical learning

Gravy Stack

• World's first banking game aimed at financial competency
• Includes real bank accounts, debit cards, and interactive games

Book: Value Creation Kid

• Focuses on building healthy struggles for children to succeed
• Stories from 100 successful multi-generational families

Smart Money Parenting Show

• Addressing financial literacy via media

Key Financial Lessons and Strategies

Creating Value

• Focus on value creation over simply making money
• Types of value: material, emotional, spiritual
• Emphasizes practical skills and confidence-building

Heritage vs. Inheritance

• Importance of building family legacy and values over leaving money
• Storytelling as a tool for family legacy

Positive View on Money

• Money is a tool, not a goal
• Avoids negative connotations associated with wealth

Against Allowance

• Recommends against allowance due to lack of value learning
• Introduces a home economy system with expectations, expenses, and extra pay

Five Money Skills

• Earn, Save, Spend, Share, Invest
• Emphasizes sharing as a key to developing financial competency

Home Economy System

• Structure of expectations and additional paid tasks to teach money management

Stages of Earning

• Progression from home gigs to community gigs to own business ventures

Family Money Conversations

• Importance of involving children in financial discussions

Balancing Support and Independence

• Advocate for supporting children financially to a point, then fostering independence
• Strategy includes partial support for education and milestones

Conclusion

• Financial education and practical experience are crucial for future generations
• Gravy Stack as a tool and resource for achieving financial competency in children
• Importance of roots and wings: strong family connection and independence