**A Guide to Cultivating Money-Wise Children: Insights from Doug Nordman and Carol Pittner**
In preparing the upcoming generation for financial autonomy, few subjects prove as crucial—and as complex—as educating children about money. Parents frequently struggle with how to influence their children’s financial literacy, balancing between preventing entitlement and instilling a sense of responsibility. Doug Nordman and Carol Pittner, co-authors of *Raising Your Money-Savvy Family for Next Generation Financial Independence*, address this issue through relatable stories, practical guidance, and a blueprint for enduring financial well-being. Their father-daughter rapport provides dual insights, transforming their book into not just a manual, but a bridge across generations.
In the sections below, we delve into their collective insights—whether it’s financing education, setting realistic expectations for teens, or equipping young adults for independence.
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### **The Lasting Advantages of Financial Literacy**
Doug Nordman, a retired military officer and experienced financial coach, along with his daughter Carol Pittner, a financial advisor, emphasize the significance of beginning discussions about money *early on*. The sooner parents align their financial aspirations with their children’s comprehension, the more equipped kids will be to make thoughtful and competent choices.
Their publication highlights that achieving financial independence goes beyond just budgeting or generating income—it embodies a mindset that integrates critical reasoning, discipline, and strategic planning.
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### **Educating Teens on the Costs of Higher Education**
#### **Doug’s Viewpoint:** Set Expectations from the Start
At its core, Doug believes that the amount parents reserve for their children’s education is an exceptionally personal choice tied to individual values and financial abilities. What truly matters is having proactive dialogues and establishing clear expectations.
For Doug and his spouse Marge, this meant starting discussions about the education fund as early as middle school. Doug shares how recognizing the family’s financial constraints inspired their daughter to strive academically and seek additional funding avenues such as scholarships and work-study options.
One of Doug’s principal techniques involved incrementally modifying the family’s education fund portfolio—transitioning from risky stock investments in the initial years to more stable choices like bonds and CDs as college approached. This method provided equilibrium: the education fund experienced significant growth early on thanks to compound interest, followed by a shift to stability when it was time to utilize the funds.
By the time Carol entered high school, the plan was established: the education fund was designated to cover a maximum of a four-year degree at a public university. Any expenses beyond that—graduate programs, private colleges, or other certifications—were to be managed by Carol independently. Doug also emphasized alternative pathways outside of traditional college, like trade schools, reminding parents that not every child must (or should) adhere to a singular educational route.
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#### **Carol’s Viewpoint:** Incorporate College Discussions into Middle School Electives
Carol recounts how these early conversations concerning educational funding allowed her to make wiser academic and financial choices. As a middle schooler, she began to connect electives with future opportunities and subsequent savings. For example, instead of selecting enjoyable classes like ‘ukulele’ (a choice available in their home state of Hawaii), she opted for algebra and competitive extracurricular activities, understanding that these could pave the way for advanced courses in high school and college.
Carol advises parents to assist teens in evaluating the expenses of after-school pursuits versus their effect on the education fund. Striking a balance between personal growth and financial sensibility can impart essential lessons about trade-offs.
Her experience illustrates the accumulating benefits of deliberate, incremental choices: finishing advanced courses early enabled her to save both money and time in college via transferable credits. Furthermore, Carol’s experiences inspired her to seek opportunities such as an ROTC scholarship, significantly covering a portion of her college expenses in tandem with the family’s education fund.
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### **Beyond Education: Equipping for Financial Self-Sufficiency**
Looking past educational funding, Doug and Carol emphasize the importance of bridging the gap between financial dependence and self-reliance. They offer practical suggestions for managing the transition into adulthood, such as encouraging young adults to save, invest, and budget wisely.
#### **Doug’s Recommendations: Be Practical and Open**
One of Doug’s crucial teachings for parents is to normalize frugality as young adults transition out of the home. He recommends guiding kids on adjusting to a more modest lifestyle while constructing their financial safety nets. This could involve shared living arrangements, utilizing public transportation, or managing stipends for housing and food.
Doug also proposes granting young adults autonomy over their education funds—or portions of them—to impart genuine financial accountability and foster a sense of stewardship. For instance, if a teenager successfully spends less on textbooks or housing expenses, allow them to retain the surplus for future needs. Aligning financial incentives early can reinforce constructive habits for later life.
#### **Carol’s Recommendations: Encourage Autonomous Decision-Making**
For Carol, the independence her parents granted her was instrumental in her financial accomplishments. By empowering her to evaluate options like the ROTC scholarship and