Happy New Year! It's Talk About Money Tuesday, your favorite day of the week!🤑

Whew! The start of a new year comes with a lot of pressure. Get organized. Start new habits. Achieve big goals. And if you're reading this newsletter, you might be thinking that this is the year you're finally going to teach your kids all about money.

I know — you feel like you're behind already. 😰

But there's some good news when it comes to helping young people learn money skills. You don't need to teach everything all at once.

So start with this: One of the most important money skills for kids to learn is which dollars are already spoken for and which dollars they control. This one skill reduces stress, builds confidence, and makes every other money lesson easier. Plus, it's something youth of any age can learn.

Money Stat

64%

Between higher everyday costs, rising healthcare bills, and "didn't see that coming" expenses, Americans are stressed about their finances. A recent study shows that some Americans plan to do something about it.

According to Fidelity's annual New Year's Financial Resolutions study, 64% of people surveyed near the end of last year were considering a financial reset of sorts. Their top resolutions: save more money (44%), pay down debt (36%), and spend less money (30%).

Get in the Zone

Money skill: Understanding non-negotiables

Why it matters: When kids understand what non-negotiable expenses are, it gives them a framework before real financial pressures hit. They learn that some money already has a job, and that choices come after responsibilities.

This foundation builds confidence and supports the money skills they'll learn down the line.

Try this: When allowance or gift money comes in, help younger kids decide how much of it is already committed. Maybe they need to repay a "loan" from the Bank of Mom & Dad, for example.😉 At any rate, they'll learn it's normal for some of their money to be unavailable for spending.

Try asking teens and college students, "If your money had to cover the basics first, what would those be?" Hopefully, you'll hear about housing, groceries, transportation, gas, and phone bills. And not DoorDash, coffee runs, and Shein hauls. This single question reframes budgeting to be about prioritizing expenses, rather than restricting purchases.

Smart Money Quiz

​
Which of the following best describes a non-negotiable expense?

A. Something you buy only when there's extra money

B. An expense that can change monthly without notice

C. An expense that must be paid regularly, no matter what

D. Something that feels important, but you could skip it

(The answer is at the end of this newsletter.)

Money Talks

Here are some quick ways to explain non-negotiables to young people:

➡️ For younger kids — "Whenever money comes in, some of it already has a job. That money is for things we have to take care of first. Whatever's left is money you get to choose how to use."

➡️ For teens and college students — "Before you spend anything, some of your money is already spoken for. That's your non-negotiable money. You can choose how to use the rest."

Knowing which money is already spoken for lets kids and teens trade worry for control. It's the first step toward stress-free money habits that actually stick.

Loose Change

🗑️ Most of the non-essential purchases you returned during the post-holiday return blitz are likely to meet an unfortunate end.

📝 Once you've covered your non-negotiables, here's a guide to the best time of year to buy things with the money you have left over.

🛒 A mom realized her budget for groceries, a key essential item, had grown out of control. Her teenagers helped her lower the family's food costs.

Thanks for reading! If you know someone who cares about youth financial literacy, share this newsletter with them. And if this newsletter was forwarded to you, please subscribe ​here​.

'Til next time,

Audrey
​Founder/Certified Financial Education Instructor​
The FinLit Zone

ANSWER​
​C. An expense that must be paid regularly, no matter what. Fixed expenses are regular, predictable, and difficult to skip. Knowing what they are makes it easier for you to manage the rest of your money

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