Why Teach This Early?
Financial literacy determines life outcomes. The FIRE movement has shown that financial independence is achievable for anyone who starts early. A teen who invests $5,000 at 16 could have $100,000+ by 40 through compound interest alone.
Progressive Sub-Goals
Introduction
Files own taxes, manages all personal finances, understands FIRE movement basics
💡 Tip: Use TurboTax together - walk through every line item.
Developing
Analyzes complex financial products, calculates savings rate and years to financial independence
💡 Tip: Use compound interest calculators to show the power of early saving.
Mastery
Creates a 5-year financial plan, achieves net worth of $10k+, has clear path to financial independence
💡 Tip: Read JL Collins' "The Simple Path to Wealth" together.
Teaching Tips
- 1Open a Roth IRA as soon as they have earned income
- 2Teach the 4% rule and how much they need to retire
- 3Discuss lifestyle inflation - the enemy of wealth building
- 4Show them your own finances - transparency builds understanding
Learning Resources
📖"I Will Teach You to Be Rich" (Book) / "The Simple Path to Wealth" by JL Collins
View on AmazonUSA
Related Skills to Explore
#236 Starting a Business
Academic & Career • Ages 9-12
Launches a real business with a business plan
#237 Index Fund Investing
Academic & Career • Ages 9-12
Opens a custodial investment account and understands what an index fund is
#238 Negotiation
Academic & Career • Ages 9-12
Negotiates a price at a garage sale
#336 Driving
Vehicles & Transport • Ages 16-18
Obtains learner's permit, practices driving
#337 Manual Transmission Driving
Vehicles & Transport • Ages 16-18
Understands clutch, gear shift, and rev matching concepts
#338 Advanced Vehicle Maintenance
Vehicles & Transport • Ages 16-18
Performs routine maintenance