The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous, and Smart About Money, Ron Lieber

This week, I finally settled down and read a book that my husband had found for us. Technically, it’s not about babies. He and I are both terrified of our children’s adolescence (and yes, I recognize we have a few years, but it’s never too soon to start worrying about things over which you have little control, like the passage of time), and although we both spend enough time with teenagers to know we’re comfortable with them, we’re not nearly so comfortable with the value based conversations around finances we want to be able to have with them. 

I wasn’t sure it was necessary to start reading up about this topic so early, of course, but as soon as I started Lieber’s book, I was completely engrossed. Here was practical advice about how to approach the topic of money with children as young as three or four years old, as well as how to keep the conversation going until children are out in the world making their own financial decisions. As I was reading though, I had a powerful realization that of all the strengths my parents instilled in me, financial savvy was not one of them. Do I know how to be generous? Yes. Do I understand the basics of budgeting and taxes? Yes, after many years of guidance from friends (and my very patient husband), I have workable knowledge. Do I feel comfortable comparing investments, the stock market, or retirement plans? Not really. More importantly though, having grown up in a family (to be clear – one like almost every other I knew when I was a child) where money was a completely taboo subject, I recognize that my spending priorities are not always what I want them to be, and they certainly aren’t as astute as I hope my own children’s will one day be.

I think it’s possible that by being capable in many other areas of my life from a young age, I tricked my parents into thinking I was also a fiscally responsible person. I didn’t gamble or get into credit card debt when I left home, but that sets the bar lower than I’d prefer. Back then, I knew a few kids who had notebooks with budgets scribbled into them; they would keep track of how they spent birthday money, or, if they got one, an allowance, but even so, I don’t remember any of them having a real understanding of the family’s finances from a practical standpoint or a value-based one. Many of us also had little savings accounts at the local bank, but I didn’t really know what that meant. What was I saving for? And why? 

When I was about six, my dad and I were at Osco Drug (he and I would occasionally have a special walk in the evening if he needed to pick something up, and we were both content to browse for an hour or more – something my mother and brother were more than happy to skip). I wanted him to buy me something – a toy, a special pen, or maybe a notebook – and he told me he didn’t have money to get it. I asked why he didn’t just go to one of the machines in the wall that would give him money; my understanding of an ATM was that a code was entered and cash appeared. It was years before I grokked where that money came from.

That story sums up just about every discussion of money I remember having as a kid. Even though we were an average middle class family, I was often told “we can’t afford that” – unless, of course, I was allowed to have it. My parents’ generosity was flexible, and looking back, somewhat baffling from a child’s perspective. I suspect I spent a lot of time whining to get things I didn’t really want or need because I didn’t understand how my parents were making their decisions about what I got and what I didn’t. 

We’re aiming to do three things: set some spending guidelines to lean on; model a few sensible tactics for our children; and adopt family rituals that make spending fun— but only on things that have real value and meaning. With this foundation, we’ll give our kids the best shot at thriving no matter how much money they end up having or what is going on with the economy. (p 73)

The truth was, we could afford that pen or a little toy. My parents just recognized that I didn’t need it and made the decision to use a well-worn phrase to turn me down. I witnessed this innumerable times as I was growing up. Every single parent I encountered used “we can’t afford it” as justification at least some of the time. I never thought to question it because I had no idea where to start. The Opposite of Spoiled is the book I wish all those families could have had back then. Lieber understands the myriad challenges and potential shame or awkwardness parents face when it comes to talking to children about finances, and he has a solution for just about every problem. His favorite starting point is this:

In my years of research on the topic, I’ve determined that there is one answer that works best for any and every money question. The response is itself a question: Why do you ask? This response is useful for many reasons. The first is a practical one. By training myself to respond this way, I’ve guaranteed one thing for certain: that I will have at least 10 seconds to think through potential responses, depending on the reason for the question . Yes, it’s a stalling tactic. But be careful. There is a right way and a wrong way to question the question, given how vulnerable kids are to the belief that certain topics are off-limits. So I always try to say “why do you ask?” in the most encouraging tone possible. If your tone sounds suspicious, like an accusation or an expression of disapproval, it may shut down the whole conversation. (p 22)

As he points out, many times, young children especially are asking questions about money (are we poor; is X rich; why does my friend have Y when I don’t) that are fleeting observations about their social situations and may not require much more than a brief, honest response (we have enough money to buy what we need; I don’t know how much X’s family has; we all own different things – isn’t that nice because it means when you play together, you can bring Z while your friend brings Y). He says if children continue to push and question, it’s actually a great opportunity to start exploring the topic, but many won’t. Even with older children and teenagers, questions about money can lead to frank conversations about how much families are paying for housing, food, utilities, etc. 

The hidden message of offering the truth to children is that you and your children can work together to manage difficult issues. Children also learn that if they ever need a straight story, they can count on you. (p 20)

Lieber sets out reasonable guidelines for talking to children in age appropriate ways about spending, saving, and giving. He’s upfront about the fact that it’s easier to start this when children are young, but also offers compelling evidence that even with teenagers who haven’t been exposed to discussions about budgeting, it’s possible to set guidelines and have conversations that will improve their perspective on spending and save them debt later on. Personally, I was thrilled that he covered everything from introducing an allowance to helping children budget on vacation to how to set reasonable expectations for expensive gadget purchases – all questions that have been plaguing me for years. I want my children to have what they need, and beyond that, to feel treated to some things they desire, but I also want them to understand boundaries and respect them – not just for my own sanity, but for their future financial independence.

By the end of the book, Lieber had moved into a powerful discussion about making financial choices rooted in the value system of a family. He had many wonderful stories to share from parents of many different backgrounds (part of his work is writing the “Your Money” column for the New York Times, but another significant chunk is traveling to schools to speak with parents about these ideas); his point in sharing these stories was to illustrate how unique each family’s approach to this topic was while still being successful. 

You’re telling your children that your values helped you decide some of these big questions, that this is a value you hold dear to your family. What’s potent about that is that it’s part of how a child acquires an identity, which helps dictate behavior. Values should drive behavior. And you’ve spent a lot of time thinking about what makes you whole as a human being. That’s worth teaching. (p 33)

The point he makes throughout the book is that these decisions are not one size fits all, except in the idea that money should be a topic of honesty. His core belief is that by opening up what has long been a taboo topic, we can improve the lives, not only of our own children, but of the larger economy by introducing ever more educated, thoughtful generations into the conversation. I, for one, am with him on this.

For more about Ron Lieber, head over here.

12 thoughts on “The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous, and Smart About Money, Ron Lieber

  1. I wish I had been a little more spoiled. My dad gave me an empty box and a razor blade knife and told me to make my own toy.. I made a fort with a drawbridge and turrets… My son wanted that and so I bought him a plastic toy.. My dad was smart and I should have followed his example.

    1. There’s always a balance, I think, between being generous when it’s possible to be and setting firm guidelines for financial education. Making a toy or buying one – each can be the appropriate choice depending on the situation – and we all can only learn as we go when to choose one over the other. It’s not a question of one being better or worse so much as it’s a part of a larger plan to instill in children a respect and understanding of money, the value of hard work, and the benefits that can often be found in creativity and patience.

  2. I think this is a book I should read – as a parent of twins who are four I’m starting to realise that it’s never to early to try and instill some notion of financial sense in children.

    1. It’s an amazing resource and this is the perfect time to pick it up. Lieber definitely has strategies for use with young children that are manageable and understandable for the whole family!

  3. My children believe money comes from never ending debit cards or credit cards and my son thinks that spending his cash is fine as long as he gets some change back because it all equals the same, doesn’t it? I as never taught about money, having similar experiences as you, so am thinking this book is a definite buy for my family. Thank you!

    1. I hope you enjoy it as much as I did! It really was eye opening to see how much it’s possible to teach children about money and the values around family finance that can make a huge difference both now and down the road!

  4. Great post. Parenting teenagers is a monstrous task and teaching them to be smart with money starts so early. My mom used to tell my brother that we couldn’t afford things (which, looking back, was probably true) and he would tell her to just write a check. Ha! Now he lives in San Francisco and knows the value of a dollar all too well…

  5. Grounded and generous, good. How’d “Smart about money” sneak in? I just hope this isn’t one of the Eats Shoots Leaves [sic] things. . . or maybe it is. . .I loved the comment about the empty box and the razor blade knife from axax1217.

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