Money-Smart Monday

with John Lanza

Hello, friends,

I appreciate your attention, and I hope you find this week's newsletter useful.

Open head & pour in knowledge

Our school systems are mostly designed around a flawed paradigm:

Send kids to class.

Open their brains.

Pour in knowledge.

Apply some discipline.

And voilà! The knowledge sticks.

Though many educators strive for interactive learning, standardized tests and classroom structures still reinforce passive absorption and rote memorization as dominant methods. And while kids with better retention and preternatural reserves of discipline may excel in this environment, most of our children do not. At least when it comes to knowledge stickiness.

In keeping with this flawed approach, the holy grail of financial literacy has been school adoption: opening up as many heads as possible and pouring in that knowledge.

Winston Churchill described democracy as "the worst form of Government except for all those other forms that have been tried from time to time," implying no better alternative existed. I once felt similarly about our educational model—until I realized there's a more effective approach we might take.

Why?

Every kid starts out by asking "why." Any parent of a 4-year-old knows how relentless preschoolers can be.

Why is the moon in the sky? It's orbiting the Earth.

Why is it orbiting the Earth? Gravity.

Why is there gravity? Because Earth is huge!

Why does a huge Earth make gravity? Uh...

It doesn't take long for them to find the upper limits of our knowledge.

As we grow older, we often lament the loss of our childhood wonder. At the same time, the "pouring in knowledge" approach to school squelches our youthful enthusiasm to understand.

Maintaining our natural curiosity—regularly asking "why"—helps us intentionally form meaningful habits because we clearly see our motivations. Similarly, financial knowledge becomes meaningful when connected to our personal reasons—our "whys"—for using money in the first place.

Since money is a human invention designed to facilitate exchanges and achieve goals, it's naturally a means rather than an end. Clarifying your personal reason—your "why"—for pursuing money goals makes adopting essential financial habits easier and more enduring.

"Security" is a common but abstract reason. A more compelling one might be seeing money as a force multiplier for ideas you want to pursue or as a direct path toward financial freedom. (As my recent podcast guest JL Collins explains in this short video.)

Habits are underrated

When it comes to money smarts, we overrate knowledge and underrate habits.

And when it comes to personal finance, knowledge alone has limited practical value without the development of effective habits. Understanding budgeting or investing becomes meaningful only when paired with consistent, habitual action.

Habits rooted in personal experience help lessons stick.

There are many books about habits that detail numerous practical tactics we can use to build them, including changing our environments, piggybacking or finding accountability partners. However, the process all starts with "why."

Unintentional habits can develop and often undermine our goals. But intentionally building habits can help us become better versions of ourselves.

Just as meditation controls impulses, reading sharpens understanding and exercise builds resilience, financial habits—living within our means, saving and investing—provide the freedom necessary to pursue meaningful lives. And while meditation, reading, exercise and financial habits differ in practice, they share an underlying commonality: All require intentionality, clear motivation and consistent effort to provide lasting value.

More schools can explicitly integrate habit-building into their curricula, using hands-on exercises such as Bite of Reality simulations or simple, practical tips to help kids actively develop helpful money behaviors.

We should recognize, though, that schools can only play a limited role. Money-smart habits begin at home. So engaging kids early and empowering parents to guide them is crucial.

More ideas I found interesting

➡️ Champion golfer Scottie Scheffler's revealing interview about the fleeting nature of happiness
➡️ Mind-bending short film Total Pixel Space wins the 2025 Runway AI Film Festival
➡️ The original Superman theme (a cappella)

As always, enjoy the journey!

John,
Your Chief Mammal

📗 Get The Art of Allowance (for parents)​
📚 Get the "Share & Save & Spend Smart" series (for kids)​
🫱🏻‍🫲🏽 Become a partner (for businesses)

P.S. Please consult with a financial or investment professional before making any decisions that might affect your financial well-being.

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