On this episode of The Long View, author and co-CEO of Ariel Investments discusses her relationship with money growing up, ways to teach kids good financial habits, and lessons from her new financial education book for children called Priceless Facts About Money.
Here are a few excerpts from Hobson’s conversation with Morningstar’s Christine Benz and Amy Arnott.
What You Should and Shouldn’t Teach Your Kids About Money
Amy Arnott: You mentioned earlier how hard your mom worked when you were growing up, and you also write about how your mom worked to impart financial knowledge when you were growing up. What were some of the lessons that were most meaningful to you? And is there anything that you wish she had taught you that she didn’t?
Hobson: Well, I’ll give you the good and the bad, because I’ve spent 55 years thinking about this. The good was my mom exposed me to everyday costs, every day. And so what I mean by that is, starting when I was very little, if we went to McDonald’s, if we went to a restaurant, she would have me pay the check. I remember going to diners and standing at the counter, giving the check, reaching up to the counter at a McDonald’s, handing the money at a grocery store. She always had me pay. And her way of having me pay was to learn what things cost. So, I knew that McDonald’s was cheaper than a restaurant with a tablecloth, as an example. I was very clear on that. And then she had me grow in my contribution to paying with my age and my sophistication. So, what I mean by that is, in the beginning, I literally just put the money on the counter. Then it was me counting the change when I could count. Then it was me calculating a tip when I could do percentages and the like. It became an escalating math problem.
At the same time, it became an escalating point of knowledge. I remember going to the bank with my mother for her to deposit a check in the bank, and she stopped. And she deposited it. We were at the teller, and she said, “Before you leave this counter, Mellody,” and I remember being like 11, “you look at the receipt that they gave you and you look at your account number and you make sure they match and that this actually went into your account.” I mean, who tells that to a child? My mom. And I could give you more and more things. She always had me look at the light bill, the phone bill. When my mom wasn’t home, I mean, this is totally not right. I’m on the board of a bank, so I can tell you. But if she wasn’t home, and we needed food, she’d say, “Take a check out of the checkbook and write a check.” And so I knew to write a check when I was like 12. I mean, I’m telling you these things that … were just so unbelievable. […]
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