Johnny Nesbit: I'll use my daughter as an example. She's eight years old and she has a bicycle that she's been riding since she was five years old and we finally took the training wheels off and I thought it would be a good time to get her a new bike. I asked her, would you like to get a new bike? And she said, of course, absolutely. And I said, well, how about we use your money? And she said, no. She said, never mind. I don't want to use my money. And I said, well, how is it okay when we use daddy's money, but it's not okay when we use your money? And she just agreed that she would rather use her money for something else. So, I said, okay, well, we'll wait on getting you a bike and she said, I'm, I will ride this until the wheels fall off. Then we'll get another bike. So, when kids are able to have that option to make their own decisions, I think that's very powerful for them. And again, it's financial education, starting at a very early age.
Amelis Long: Yeah, and ultimately, that's the greatest foundation we can have is understanding what you want, what you value, and the choices that you have in front of you.
Johnny Nesbit: And then putting it into practice.
Amelis Long: Yeah, yeah. I love that.
Welcome back to The Vault, where we unlock stories that matter here at FNBO. I'm your host, Amelis Long. On today's episode, we're diving into lessons that impact your child's future long before they ever get their first paycheck – learning to save. Building healthy financial habits not only helps children develop confidence and make informed decisions, but it also puts them on the foundation for lifelong, healthy financial habits. Joining me today for our conversation is Johnny Nesbit, FNBO's Community and Employee Involvement Manager. Johnny works with so many of our community partners across our footprint, including those dedicated to teaching children how to save. With Johnny's help, we're going to talk about why it's important to teach children how to save, why caregivers and our communities are part of that equation, and we'll give you some practical tips on how you can do this at home. Johnny, welcome to the podcast. I am so excited!
Johnny Nesbit: I am extremely excited to be here as well.
Amelis Long: Excellent. Well, should we dive right in?
Johnny Nesbit: Let's dive in.
Amelis Long: Okay, so Community and Employee Involvement Manager, tell us what that really means and why financial education is a part of it.
Johnny Nesbit: In my role, I get the privilege to work at the intersection of the bank, our employees and the communities that we serve, and a big part of that is connecting our employees to meaningful volunteer opportunities with our community partners so that we can make a real impact. And I've always been passionate about financial education. I've grown up watching people work really hard and still struggle to have money left over at the end of the pay period. And to me, I realized that it wasn't because they didn't care or they didn't want to. It was because they truly genuinely just didn't know and didn't have that education. So, I feel like it's vitally important to share that. And the earlier that we can learn those concepts, the better we are in the future. Our future selves are a lot better.
Amelis Long: When we're talking about saving, we just think you get a paycheck, set some money aside. It's not that hard, right? But what we think real life will show us is that it's not that easy. Can you talk a little bit more about those misconceptions?
Johnny Nesbit: So, a common misconception is that you're too young to learn how to save, and that is not true at all. Um, what I would suggest is, of course, you don't want to talk to a five-year-old about compound interest. However, you can start talking to kids about um, what money is, identifying coins and dollars, and then as they get into middle school and high school, start talking about tools that they can use to save and build and um, budgeting. And then as they go into college and grow up, they already understand a lot of those common, they have the foundation, but they're just continuing to build on top of that. So, it's never too early to start. You start with basic concepts and just work your way on up.
Amelis Long: So as you're introducing some of these basic concepts to the children, you've got, you know, like you said, coins with the younger kids and then elementary school gets a little more complicated on up through, you know, after high school and college. What are they really latching onto though? Like, what are they curious about as you have those conversations?
Johnny Nesbit: Kids are most curious about money and the way it moves. Um, they see Cash App and Venmo and side hustles and um, credit cards, and they ask a lot of questions. And to be honest, the questions are sometimes better than adult questions.
Amelis Long: I believe that.
Johnny Nesbit: How do you get rich? And all of the, and the best thing to do is to sit down with them and explain it to them at an age-appropriate level and to make sure that they have a pretty good understanding of it. But before you start talking about crypto, you want to start talking about savings and before you start talking about investing, you probably want to talk about income first. So, there's always a start, the foundation where you want to start at and then continue to build on top of that.
Amelis Long: Yeah, so their curiosity might be more advanced and you're taking them down to the most basic information to start.
Johnny Nesbit: The curiosity is great and those questions start triggering other questions and it just leads to continual knowledge that they gain over time.
Amelis Long: Yeah, I love that. So, speaking of choices, that's at the foundation. There is a special program that you kind of lead here at FNBO that I know a lot of our employees love to participate in that really is all about helping young people make choices in the moment when it comes to finances. Can you tell us about that program and why everyone loves it here?
Johnny Nesbit: Yes, I get excited just hearing about it. The program is called Mad City Money, and it's a partnership with the Urban Financial Services Coalition. They actually facilitate the program, but our bank employees love volunteering as merchants. So how it works is the students are in a simulation where they are giving real life situations, so they will receive us. They have a spouse. They'll have a career with a salary. They'll have their they'll have their spouses' salary. They'll have expenses like medical bills and credit card debt, and they will also have a child, and they will then have to take their income and go into the real world and purchase food, clothes, transportation, things like that. And they have to budget accordingly because at each of those stations, the merchants are always encouraging them to buy the higher priced options to teach them how to navigate pushy salespeople, but they have to determine whether they can truly afford those items at each station and to see the kids start off thinking that they have a lot of money and then they go to childcare or a couple stations and find out that that money flies pretty quickly, it leads to a whole new appreciation for their parents.
Some of the examples that we've had is I've had a student start with their first station being the fun stuff and they bought a motorcycle and a boat as their first items before they bought a house or car or food. And so they're...
Amelis Long: Well, they wanted fun stuff.
Johnny Nesbit: Absolutely. Absolutley. Well, and they learned because their second station was the bank because they were very low on funds and they still had a lot of higher prioritized options to choose, but didn't have any money. And then they learned that the bank just doesn't give money away. So the Mad City money simulation is an opportunity to give students a real world experience and a safe space so that they can make those mistakes and learn the hard way, but do it in a safe manner to where they don't have to worry about blowing a whole paycheck and trying to figure out how to recover from that.
Amelis Long: Absolutely. I know as personally as someone who's gotten to do Mad City Money, it's a super fun experience for a us volunteers as merchants. And I know our employees really get into it. And when you talk about uh, offering all those glitz and glam, especially at the fun table, I mean, the things that I've heard about describing the expensive cars or the extra big house or the entertainment budget, We get wild. So it's really great to have not just that opportunity to give back with our community on a subject that's obviously important to us as employees at the bank, but to really see and those wheels start to turn like you said.
Johnny Nesbit: Absolutely. They're having those aha moments in real time. So, as they're going through the simulation and they're learning that they're almost out of funds and the last station that they went to was a home, they'll learn in real life that the home should probably be the first thing that I purchase in real life. And again, they're able to make mistakes and the employees enjoy it, but I enjoy facilitating. It is one of my greatest opportunities here at the bank and anytime we get an opportunity to put on facilitate a Mad City Money simulation, I look forward to it. It's a lot better than giving a budgeting lecture. I've tried to be as engaging as possible with budgeting lectures and different types of lectures and no matter how engaging or exciting you may try to make the topic, you're going to lose some of those students, um, in that, in that format. So, it's a lot better to give the hands-on simulation with the budgeting because it clicks and things stick a little bit more when you're hands on with it as opposed to listening to somebody talking in front of the classroom.
Amelis Long: What are some of the other programs that FNBO is offering alongside our community partners? I know Mad City Money is definitely a highlight, but there's a couple others that are also a lot of fun.
Johnny Nesbit: There's a lot. I would say some of the others I would highlight would be our Junior Achievement program. We have employees who enjoy going back to the schools that they may have went to when they were younger or have kids in schools that they want to go back and be able to teach a financial education course and we offer those at elementary schools and middle schools. And we also have a program with the Rose Theater called Silver Cash Money Detective, where the Rose gives a play about a money detective and teaches fourth graders how to budget. And then after the play, we have employees come up and answer any question that they may have about money. That is really very eye-opening for the students as well because those fourth graders are learning how to budget through a play that the Rose has put on, which stimulates the brain a lot differently than, again, having somebody speak in front of them and speak at them. So those are two programs where they're extremely engaging. They're in the classroom. We're at the schools, and our employees really enjoy getting out there and being a part of that.
Amelis Long: So, it's clear through the work that you do that the bank and our community partners are really facilitating education through their programs or through school programs. Let's pivot to a little bit about what do we do at home? So, for our parents and caregivers and other adults who are helping children learn about saving, what should they be doing or what should they be thinking about?
Johnny Nesbit: I would say you have to be intentional. So, it could be as simple as when you're at the grocery store and you're shopping and if you're on a budget, you can say we're going to buy this item instead of this item because we want to stay within our budget. Or we're not going to buy this item today because we're going to save and get that later. Things like that teach kids that, you know, money isn't just a free-flowing thing and you can't just walk into the grocery store and pick up everything and anything you want. But here's how you go about it in a meaningful way and still make the choices that you want but make sure that you still have money to do so.
Amelis Long: Really, when we think about those practical tips, it's kind of applying it to daily living, it sounds like.
Johnny Nesbit: It's really just basically talking about money. A lot of people don't learn because a lot of people just don't talk about it. So being at the grocery store and bringing money up there, being at home and talking about money. Um, I know growing up, we didn't talk about money as much, and that is why I am, I prioritize money and those money discussions at our home with our, my daughter is eight years old, but we've been talking about it since she was four and five years old, just basically talking about identifying coins at the beginning, and now we're talking stocks a little bit more and learning how she can purchase a piece of, um, another company and have some ownership in that and see an investment grow.
I would say a struggle with that is technology is good and bad. Sometimes technology takes away that impact that kids can get from feeling actual money. And I think that loses, a lot of kids get lost in that. So, what I would suggest is when it comes to budgeting for younger adults, older kids, I would say, um, having them practice with cash and feel it's a lot different, swiping a debit card or tapping. Kids now have tap to pay, buy now, pay later. And so those types of things kind of set them up for failure if not used properly or explain to them properly. So, if that can be talked about at an early age and learn how it works and pros and cons of that, that's always great. I've seen wands, like magical wands, and they put a debit card or a credit card at the end of it and hide it inside. And they go to purchase something, just wave the magical wand in front of the payment machine and tap and it's paid for. I feel like that is one of the worst inventions ever because it's really teaching kids that I'll just run through the mall and tap my magic wand and buy this or buy that. But to have a budget of money and use actual physical dollars, and then once the money is gone, it's gone. Until the next time. There is no tapping a debit card and you never know if the money is there and even if the money isn't there, it still goes through, you just have to worry about - mom and dad worry about the overdraft fees or any of those fees that are associated with that. So, I think I'm giving kids experience with actual cash as opposed to digital currency and things like that is extremely helpful as well.
Amelis Long: Yeah, yeah. So, I really like the kind of helping us do two things. One, we don't need to be afraid about talking about money. So, you know, in that case, the magic wand adds that little levity to it, but we need to keep it real. There has to be that balance of, um, we don't need to be afraid. We can build skills, we can talk about this honestly and openly, but we also have to understand the greater impact when it comes to our finances and our money.
Johnny Nesbit: And you don't have to teach a kid how to save $100. You can start with $1 and teach them how to save from there.
Amelis Long: Yeah, absolutely. I love that. One of the things that we do in our house is, I had time to talk about it before you even get the money. Um, so, uh, my daughter just started her first job not too long ago. And so, before she got her first paycheck, we sat down and said, okay, we don't know how much you're going to earn and it's probably going to change every paycheck because you're just a part-time employee. But what percentage do we want to put towards the things that you're saving for, the things you want to spend and, uh, then some of the bills that she is contributing towards at home. So, we kind of broke it down and then that really led to once you did get that paycheck, you know, the eyes got all big and got real excited, but we already had a plan in place too, of what we were going to do. And then it, it, it kind of relieved that tension a little bit because we were on the same page.
Johnny Nesbit: There we go. Habits that they're learning at an early age that they will continue to build upon as they get older.
Amelis Long: So, Johnny, I know you're a part of our bring your child to work day experience here at the bank. And one of the things we did this year is that we interviewed kids right here on this podcast about their thoughts on saving and spending. And like you've told us, they really are always watching. Their answers were pretty revealing. So, should we take a listen?
Host: What's something your parents spend money on that makes no sense to you?
Kids: Coffee.
Kids: Oh, there's so many.
Kids: He buys candy all the time. For no reason. Like, we have food at home.
Kids: Purses.
Kids: Uh, shoes.
Kids: Taxes.
Kids: The plants that she buys.
Kids: Stuff to clean.
Kids: Shoes.
Kids: Coffee.
Kids: Some different lipstick that absolutely just looks the same.
Kids: My mom likes to buy clothes for no reason.
Kids: Some things, like, we already have what we don't need.
Host: So, what financial advice would you give your parents?
Kids: Stop spending so much money on purses.
Kids: Don't spend all your money on coffee. It's expensive.
Kids: Spend the money on things that we really need.
Kids: To save more money.
Kids: Don't spend money on my sister, spend it on me.
Kids: Spend more money on me.
Kids: Don't order so much Dr Pepper. Like, it's everywhere.
Kids: Not to spend so much money on gas.
Kids: Just go with your gut. If it feels expensive, don't do it.
Kids: Um, probably not to spend it and save it.
Kids: Save as much money as you can. Oh, get, like, an FNBO high-interest account. Save.
Amelis Long: Well, that was my son, Johnny, as you know, calling me out for buying too many purses. They really are always watching. So, talk to us a little bit about how our own behavior are modeling and teaching our children, even if we're not paying attention.
Johnny Nesbit: Yes, you definitely want to lead by example because they are watching it. Everything that you do, good or bad. So yes, they're not paying bills yet, but they're watching how you manage your money. They're watching how you spend, how you react in stressful situations when money arises, um, and how you save. So, and that's at a very early age. whether you want them to or not. So, the earlier you start, again, the better it is to get them that understanding.
Amelis Long: When you think about the current landscape that young people are facing, what are the other pressures that they're facing in addition to just tech in general?
Johnny Nesbit: Mmm hmm. So, the money environment is a lot different now than it was when I was younger. So, they have social media influencers, they have online payments. They have digital wallets, they have subscriptions, buy now, pay later, and all of those things are distractions that can lead to some bad habits. So, um, it's just important for us to teach the kids how to navigate that.
Another challenge that our kids face now are being exposed to debt and lifestyle change at a lot earlier age. So, they see on social media, people living the luxury or extravagant lifestyles and get that lifestyle comparison pretty early now in age. And that can be a detriment to their financial education because they are trying to compare themselves to somebody who was on a whole different level than them, and they also don't get to see what it took for them to get to that place. So, they don't get to see all the work in the background. They don't show all of that. They only show all the perks, the pretty, the good, the glitz, the glamour, but they don't show the hard work that it took to get there, how many times they failed, the actual money that they lost before they started gaining. So, I think that is a disadvantage that our youth see as well when it comes to social media and technology now.
Amelis Long: Yeah, it's certainly not easy out there. But there's people like you and our community partners doing great work to circumvent and provide the tools and resources for our youth to be able to get through this. So, when we think about the future, what keeps you optimistic about this next generation?
Johnny Nesbit: Curiosity gives me optimism. Kids are asking questions earlier now. They're interested in entrepreneurship, um, investing, ownership, um, and so we also know that they're very resourceful. They're able to get information at the drop of a dime. So, we are aware of that and it is our job to make sure that the information that they're giving is accurate and um, understood properly. At the bank, we're making sure that when it comes to our content on our social media, the programs that we participate in, the schools that we're in, that we're making sure that they're getting the right information, the accurate information.
Amelis Long: We have to remember we were once there too, learning our own money lessons, and I know a big one in our house, my dad would always say, pay yourself first. Whether it was, you know, birthday money or a paycheck, pay yourself first and that's kind of how we had to operate and how we talked about money. What's your money lesson?
Johnny Nesbitt: I wish I knew that income was only part of the equation and that managing money creates stability, and that's even more important. So, you can make more money and still feel broke. And that's important. So, managing your money and having a plan is what's most important and making sure you have a budget.
Amelis Long: Yeah. At the end of the day, financial education is just really at the root of what we need.
Johnny Nesbit: Absolutely.
Amelis Long: Yeah, well, Johnny, thank you so much for joining us on the podcast. It's just a joy to see you light up, talking about work that you really love doing. Um, and really what you're doing in the community is just something at the bank, we're super proud of. So, thank you for sharing all those stories with us on the vault today. We appreciate it.
