Pentagon Federal Credit Union
Log In Accounts
Search
  • Routing # 256078446
  • Partners
  • Member Discounts
  • Wealth
  • Foundation
  • ATMs & Branches
  • About
  • Search
  • Checking & Savings
    • Checking
      • Free Checking
      • Access America Checking
      • All Checking Accounts
    • Savings
      • Premium Online Savings
      • Regular Savings
      • All Savings Accounts
    • Certificates
      • Money Market Certificate
      • Coverdell Education Certificate
      • All Certificates
    • IRAs
      • IRA Certificate
      • IRA Savings Account
      • All IRAs
    • How Can We Help?
      • Contact Us
      • FAQs
      • Forms
    • Special
      • Access America Checking - Earn more and Get paid early.
  • Credit Cards
    • Our Cards
      • Credit Cards Overview
    • How Can We Help?
      • Contact Us
      • Disclosures
      • Resource Center
    • Special
      • Choose the perfect card - Open Now
  • Auto
    • Auto Loans
      • Purchase
      • Refinance
      • Car Buying Service
    • Protection
      • Vehicle Protection
      • GAP Coverage
      • Debt Protection
    • How Can We Help?
      • Contact Us
      • FAQs
      • Forms
    • Special
      • Unlock your next road trip - Explore Vehicles
  • Mortgage & Home Equity
    • Home
      • Mortgage Home
    • Purchase
      • Apply for a Mortgage
      • PenFed Homes
      • First Time Homebuyer
      • Mortgage Pre-approval
    • HELOC & Refi
      • HELOC
      • Mortgage Refi
    • Loan Types
      • Conventional Loan
      • FHA Loan
      • VA Loan
      • Jumbo Loan
      • VA Refi Loan
    • Tools & Resources
      • Knowledge Center
      • Mortgage Media
      • Mortgage Calculators
      • Contact
    • Special
      • Home affordability sale - View Rates
  • Loans
    • Personal Loans
      • Overview
      • Debt Consolidation
      • Credit Card Consolidation
      • Home Improvement
      • Additional Uses
    • Student Loans
      • Student Loans
    • How Can We Help?
      • Contact Us
      • FAQs
      • Forms
    • Special
      • Personal Loans made easy online
  • Learn
    • Learning Hub
      • Learning Center
      • Mortgage Knowledge Center
      • Financial Assistance Center
      • Natural Disaster Relief Assistance
    • About PenFed
      • About
      • New Members
      • Sponsors
      • FAQs
      • Forms
    • Security & Fraud
      • Security Center
    • How Can We Help?
      • Careers
      • Contact Us
    • Special
      • Learn how we protect your data
  • Join Now
  • Log In
  • Accounts
  • Resources

LEARNING CENTER

To get ahead you have to stay informed.
  1. Home
  2. Learning Center
  3. Q&A with a Colonel: Financial Insights and Inspiration for Parents

FINANCE

Q&A with a Colonel: Financial Insights and Inspiration for Parents

EXPECTED READ TIME: 4 MINUTES

Published: July 23, 2021

Jamie Gayton understands the importance of teaching children about money as well as — if not better than — anyone.

The father of three taught economics at West Point and later at the National Defense University's Eisenhower School before retiring as a colonel from the Army in 2017. He also co-authored a book on personal financial planning for service families.

Given his experiences and current role as executive vice president of member operations and global fixed assets at PenFed, Gayton views financial health and personal development through a unique lens. Here are a few of his thoughts about instilling healthier money habits in children.

Why is it important for parents to teach children about money and spending?

Children learn important subjects in school, but managing their finances is rarely one of them. This is a skill they'll use every day of their lives. Having them learn good habits initially builds a foundation that allows them to continue learning in ways that complement and reinforce these positive behaviors.

When should the education process begin?

You should start talking to your kids about money at a very young age. Initial education occurs by children observing how their parents and other adults manage their finances. Then, slowly, children should take on minor roles in the process. Most children learn better experientially than through explanation.

You should start talking to your kids about money at a very young age.

Who should lead the instruction? 

Teaching should generally be a joint effort between parents, grandparents, siblings, teachers, and other mentors, with each group reinforcing the other. However, parents ultimately own the responsibility and should be the primary teachers to help children learn how to better manage their finances.

How can you make learning about money interesting, informative, and memorable?

Make it as hands-on as possible by using your life events as a training ground. It makes learning more "real" for your children when they see real outcomes.

For example, when my children were around the 6th grade, I often showed them the restaurant bill, walked them through the review to confirm we had received all the items, and had them place the credit card in the dish. When the server returned the card and charge slip, we discussed how gratuities work and how to calculate an appropriate tip.

We also opened online savings accounts for my children when they were about 15 years old and provided them logins so they could see their accounts.

When they received checks as gifts, I deposited them. Within a few months, I began walking my children through the remote deposit process, completing the first couple of transactions while they watched. Now, they complete their own deposits.

Are there things you shouldn't do when teaching children about money?

Many years ago, parents often taught kids to swim by throwing them in the deep end of the pool. I don't recommend this, nor do I recommend opening savings, checking, credit cards, and other accounts and just letting your child sink or swim. It's important to introduce these new processes while they're still at home so they can look over a parent's shoulder and ask questions in a safe environment.

What challenges might you encounter along the way?

The pace at which you introduce new elements is crucial. You need to monitor how well your children are incorporating skills, then introduce new elements as they master the older ones and as you encounter them in your normal life. 

For example, we recently refinanced our mortgage. I walked my kids through the steps and made a point to explain fixed and variable rate mortgages, paying up-front fees and points, and comparing interest rates versus annual percentage rates, which are two very different things. We didn't decide to refinance simply to teach a lesson, but it turned out to be a great learning experience when it came along.

Monitor how well your children are incorporating skills, then introduce new elements as they master the older ones.

Has teaching kids about money changed in recent years, particularly with technology and a migration to more of a "cashless" economy?

Absolutely. But even though methods have changed, the underlying financial concepts and transactions remain the same.

For instance, it's no longer necessary to focus a great deal of energy on teaching children how to write checks. Instead, they need to know how to use a debit card and understand the difference between a debit card and a credit card.

How has this impacted the way kids learn about, use, and value money?

It reinforces the fact that whoever is teaching children how to manage money should be versed in current processes. This will ensure that the things kids are learning are relevant.

What are some of the consequences of not teaching children about money? 

Making uninformed decisions in a learn-by-doing mode can lead to bad money habits that last a lifetime. Overspending, lower credit scores, higher interest rates, huge debt, defaults — these are just a few of the negative consequences that can come from not teaching kids how to effectively manage their finances.  

Learn More Ways to Teach Kids About Money

Read "Teaching Your Kids About Money"

Read More

SIMILAR ARTICLES

10 Basic Personal Finance Questions You Need to Answer

Everyone should have a handle on the basics of personal finance. Don't let what you don't know about your money rule your life. Can you answer these questions?
personal finance questions

Financial Tips for New College Students

Looking to establish healthy money habits while in school? Flex your independence at college with these five financial tips for new students.
college student moving in

Do I Need a Financial Advisor?

Get a closer look at the different types of financial advisors and what services they provide to get a better idea of whether they could help you.
financial advisor helping someone

How to Financially Prepare for a Baby

Before you brainstorm names and nursery decorations, find out how to pay down your debt, map out your baby budget, plan for leave, and forecast future expenses.
mother preparing finances for baby
  • ATMs & Branches
  • Careers
  • Foundation
  • Contact Us
  • Security Center

This credit union is federally insured by the National Credit Union Administration. Rates are current as of May 2025 unless otherwise noted and are subject to change.

APY = Annual Percentage Yield
APR = Annual Percentage Rate


  • facebook
  • twitter
  • linkedin
  • youtube
  • instagram
Download the PenFed app on Apple Store Download the PenFed app on Google Play
Read More about Equal Housing
Routing #256078446

©2025 Pentagon Federal Credit Union

Privacy
Disclosures
Fees
Rates
Forms
Site Map

Head’s Up!

You are about to visit a third-party site not affiliated with PenFed.org.

penfedcu.sparrowfi.com sparrowfi.com penfed and traveller logo penfed and seguros logo penfed and national car logo penfed and trustage logo PenFed and CampusDoor logo PenFed and Ascent logo PenFed and Ascent logo penfed and househappy logo penfed and benefit services logo penfed and chubb logo penfed and alpha logo penfed and crutchfield logo penfed and ftd logo

This content is from a third-party website. PenFed Credit Union is not responsible for its information.

Continue

Get Started

×

LOGIN

JOIN