WEBVTT - Creating Generational Wealth 0:00:00.240 --> 0:00:03.480 Welcome The Money in Wealth with John Hobryant, a production 0:00:03.680 --> 0:00:15.600 of the Black Effect Podcast Network and iHeartRadio. Hey, Hey, Hey, 0:00:15.640 --> 0:00:18.720 this is John Hope Bryant and this is the Money 0:00:18.720 --> 0:00:22.360 in Wealth podcast series coming to you every Thursday on 0:00:22.400 --> 0:00:27.040 the Black Effect Network and iHeart Radio. This is my 0:00:27.360 --> 0:00:33.920 weekly ministry of finance, coming to you with a message 0:00:34.120 --> 0:00:36.720 that will uplift your life and empower you to make 0:00:36.760 --> 0:00:41.000 your own decisions. It is possible, to quote a friend 0:00:41.120 --> 0:00:44.320 Chris Gorman, who's the CEO of Key Bank, which is 0:00:44.360 --> 0:00:46.839 with him a few weeks ago in Cleveland, Ohio, It's 0:00:46.960 --> 0:00:51.920 possible that the only true freedom is financial freedom because 0:00:51.960 --> 0:00:54.040 every other form of freedom can be taken from you. 0:00:54.960 --> 0:00:58.480 Think about that. Think about political freedom, more religious freedom, 0:00:58.520 --> 0:01:03.360 more societal freedoms. Even the right to vote has been 0:01:03.400 --> 0:01:08.119 threatened recently for some. So once you have financial freedom, 0:01:08.160 --> 0:01:10.840 unless you screw it up, no one can take that 0:01:10.920 --> 0:01:15.000 from you. It is yours. You are free to be. 0:01:15.360 --> 0:01:19.280 All money is is freedom, that's all it is. And 0:01:20.840 --> 0:01:23.440 you are buying your own freedom, you are paying for it, 0:01:23.520 --> 0:01:28.080 you are ensuring it in the future. This podcast this 0:01:28.160 --> 0:01:33.080 week is around creating a legacy of generational wealth that's 0:01:33.160 --> 0:01:36.800 right a legacy of generational wealth. I'm gonna give you 0:01:38.160 --> 0:01:44.160 three strategies to build at least a million dollar net worth. 0:01:45.160 --> 0:01:48.520 I'm gonna start with kids, and if we have some time, 0:01:48.560 --> 0:01:52.000 I'm gonna give you a bonus track that I think 0:01:52.040 --> 0:01:54.480 will also excite you. So let's see how we go. 0:01:55.040 --> 0:01:59.440 Here we go. If you have a child, or when 0:01:59.480 --> 0:02:02.880 you have a child and don't be in any rush 0:02:02.920 --> 0:02:05.520 to have a child, your life will change. Once that happens. 0:02:06.040 --> 0:02:10.120 Your priorities, if you're a good parent, becomes theirs. Okay, so, 0:02:10.480 --> 0:02:15.320 but if you have a child already, congratulations, you're doing 0:02:15.320 --> 0:02:18.639 one of the most important jobs in the world, giving 0:02:18.720 --> 0:02:24.880 life and creating a world changer, potentially a world changer. 0:02:26.480 --> 0:02:27.960 But you're going to need to put that person in 0:02:27.960 --> 0:02:32.120 a position to be a transformational force in this world, 0:02:32.120 --> 0:02:34.960 which means they should have resources. As you've heard me say, 0:02:35.840 --> 0:02:39.520 if you hang around nine bro people, you'll be the tenth. 0:02:39.600 --> 0:02:42.720 You don't want to be the two guys. This is 0:02:42.720 --> 0:02:44.400 a Reverend Jesse Jackson joke. You told me you don't 0:02:44.400 --> 0:02:47.000 want to be the two guys. The two hobos sitting 0:02:47.360 --> 0:02:51.240 at the train track. They've been kicked off the train 0:02:52.040 --> 0:02:59.880 for nonpayment, and they're upset. And one of the hobo 0:03:01.120 --> 0:03:03.320 looks at the other hobo and says, you know, I'm 0:03:03.400 --> 0:03:06.240 really upset. We were kicked off this train and people 0:03:06.240 --> 0:03:09.120 were rude to me, and I'm not gonna take it. 0:03:10.440 --> 0:03:14.320 I'm so upset. I'm gonna buy this here train system, 0:03:14.440 --> 0:03:18.480 this whole train set up, the train network, the train company. 0:03:18.520 --> 0:03:21.720 I'm gonna buy it, you know. The hobo turns to him, 0:03:21.800 --> 0:03:24.280 looks at him and says, you know, I'm upset too. 0:03:24.280 --> 0:03:27.880 I'm so upset, I'm gonna sell it to you. And 0:03:27.919 --> 0:03:29.760 both of them are so broke they can't pay attention, 0:03:30.680 --> 0:03:32.839 so poor they can't afford the Oh, are all right? 0:03:33.760 --> 0:03:35.760 I don't want you to be that guy, right are 0:03:35.800 --> 0:03:39.760 those guys? I don't want your children to even get 0:03:39.800 --> 0:03:43.880 anywhere close to that conversation. I want them to hit. 0:03:43.920 --> 0:03:45.440 I want you to be able to hit somebody with 0:03:45.480 --> 0:03:49.200 your American Express black car without putting, without physically touching them, 0:03:49.360 --> 0:03:52.880 just put it down on the table or whatever credit 0:03:52.880 --> 0:03:55.520 card you use. But in this example, I think you 0:03:55.600 --> 0:03:59.240 understand people understand and emerg spress black card knock somebody out. 0:04:00.560 --> 0:04:02.520 You don't you don't you don't need to argue with them, 0:04:03.600 --> 0:04:06.440 Just just don't. Don't argue with the weight or the restaurant. 0:04:06.520 --> 0:04:10.520 Buy the restaurant. If that is your preference, I can 0:04:10.520 --> 0:04:13.320 do it if I want to. If somebody was rude 0:04:13.320 --> 0:04:15.960 to me, I could buy the business, uh and put 0:04:15.960 --> 0:04:18.400 them out of business and run my own business, assuming 0:04:18.440 --> 0:04:21.839 the business was for sale or sellable. But resources is not, 0:04:21.920 --> 0:04:24.279 are not the issue? Isn't that a wonderful place to be. 0:04:24.400 --> 0:04:27.320 Let's put your child now, right now, in a position 0:04:27.440 --> 0:04:31.880 to be that person by the time they become an adult. 0:04:31.960 --> 0:04:35.599 So let's run through the numbers. I like math because 0:04:35.600 --> 0:04:39.440 of that doesn't have an opinion. Example number one, put 0:04:39.480 --> 0:04:41.479 your pen, take your pens out and pencils out, your 0:04:41.520 --> 0:04:46.880 pieces of paper or your digital device, and let's jot 0:04:47.000 --> 0:04:56.279 this down. So if a child invest two hundred dollars 0:04:56.279 --> 0:05:02.280 a month, starting in this example at age two, by 0:05:02.320 --> 0:05:08.680 the age of about forty, with a seven percent return annually, 0:05:09.720 --> 0:05:13.120 they'll reach a million dollars. So by the time they 0:05:13.440 --> 0:05:17.919 get married and are beginning their family, because of the 0:05:18.000 --> 0:05:22.440 setup that you've put in place at an early age, 0:05:23.360 --> 0:05:28.360 they're going to get the payoff of becoming a millionaire. 0:05:28.440 --> 0:05:31.520 For life that'll have a million dollars in principle, and 0:05:31.839 --> 0:05:34.160 not not any to do with the income that they make, 0:05:34.200 --> 0:05:37.120 the future income or other things that they do other investments. 0:05:37.120 --> 0:05:39.800 I'm talking about the efforts that you make. In this example, 0:05:39.800 --> 0:05:44.120 when they're two years old, you're going to invest for 0:05:44.200 --> 0:05:46.760 them two hundred dollars a month. I mean, you spend 0:05:46.839 --> 0:05:51.640 that on you know, Starbucks and cigarettes or you know, 0:05:51.760 --> 0:05:54.080 probably just a Starbucks budget. Right, Just think about the 0:05:54.120 --> 0:05:56.120 things you spend in a month two hundred dollars on. 0:05:56.760 --> 0:05:59.640 So you're going to invest two hundred dollars a month 0:06:00.320 --> 0:06:05.920 in the stock market on a conservative basis, and you're 0:06:05.920 --> 0:06:12.640 going to do that over a forty year period. Well, 0:06:12.839 --> 0:06:17.240 you're going to do the first part. Then you'll hopefully 0:06:17.360 --> 0:06:20.520 to raise a child who can finish that on their own, 0:06:21.880 --> 0:06:24.120 or if you're just really benevolent, you set them up 0:06:24.400 --> 0:06:27.240 on auto pay. Right. But by the time in this 0:06:27.320 --> 0:06:31.680 example that you started to and by the time they 0:06:31.839 --> 0:06:34.360 are forty to forty five years of age, they're worth 0:06:34.360 --> 0:06:38.280 a million dollars at an your return of seven percent. 0:06:38.600 --> 0:06:40.960 By the way, Operation Hope, the organization I found it 0:06:41.760 --> 0:06:44.599 now has an account, a bank account, a Hope Child 0:06:44.720 --> 0:06:48.159 Savings Account thanks to the leadership of Mayor Keisha Lance 0:06:48.160 --> 0:06:51.200 Bottoms when she was in office and now Mayor Andre 0:06:51.320 --> 0:06:54.400 Dickens and his administration, who's really amplified this and made 0:06:54.440 --> 0:06:58.920 it truly successful in the City of Atlanta City Council 0:06:59.040 --> 0:07:01.520 and the Atlanta Public Schools because of these working together 0:07:01.600 --> 0:07:06.000 institutions working together, who initially funded two million dollars into 0:07:06.320 --> 0:07:11.000 the Future of Kids, Operation Hope in partnership with the 0:07:11.520 --> 0:07:14.560 bank that domiciles our account, City Group, we now have 0:07:14.760 --> 0:07:18.680 a bank account for every kid in kindergarten in Atlanta 0:07:18.760 --> 0:07:22.080 Public Schools, and statistics have shown that if you give 0:07:22.120 --> 0:07:26.280 a kid an account in kindergarten and put a modest 0:07:26.280 --> 0:07:29.520 amount of money in that account, there's seventy five percent 0:07:29.560 --> 0:07:32.360 more likely to graduate from college. Did you hear that? 0:07:32.720 --> 0:07:37.520 Seventy five percent more likely to graduate from college. So 0:07:37.880 --> 0:07:42.160 we're setting them up to connect education back to aspiration. 0:07:42.880 --> 0:07:45.040 The light is on in the kid's head. They now 0:07:45.120 --> 0:07:47.400 plugged the socket in the back of the wall that 0:07:47.440 --> 0:07:51.120 connects education with aspiration. They got the memo on free enterprise, 0:07:51.120 --> 0:07:54.000 capitalist and economics and ownership at a young age, and 0:07:54.040 --> 0:07:57.400 they understand why they're being asked and inspired and told 0:07:57.480 --> 0:08:00.160 to go to school. So in this one example I'm 0:08:00.200 --> 0:08:02.960 giving you, I want you to think about opening this 0:08:03.000 --> 0:08:08.000 account at two years old or five years old, ten 0:08:08.080 --> 0:08:10.600 years old. Okay, So you say you started when the 0:08:10.680 --> 0:08:13.120 kids ten years of age. You're going to put two 0:08:13.160 --> 0:08:17.000 hundred dollars a month in that account, right, and by 0:08:17.600 --> 0:08:21.000 the age and you know, they get married whatever, let's 0:08:21.000 --> 0:08:25.000 say it's thirty right, Uh, they'll they'll be halfway to 0:08:25.040 --> 0:08:27.200 their mark by that time, maybe even more if the 0:08:27.240 --> 0:08:29.200 markets do better certain years. Right, but let's just say 0:08:29.240 --> 0:08:32.560 an average seven percent return. And you and as a 0:08:32.800 --> 0:08:34.800 you know, as a gift to them, their wedding gift, 0:08:34.840 --> 0:08:36.480 you say, I'm going to I'm going to put you 0:08:36.520 --> 0:08:41.160 on auto pay right for you know, the time that 0:08:41.200 --> 0:08:45.640 you're raising your children, their children, or you arrange with 0:08:45.679 --> 0:08:49.520 your your children to continue that two hundred dollars a 0:08:49.559 --> 0:08:53.000 month investment through auto pay. Don't You shouldn't do it manually, 0:08:53.080 --> 0:08:55.120 just just come out of your paycheck or their paycheck 0:08:55.600 --> 0:08:57.719 on a regular basis. But if I were you, I 0:08:57.720 --> 0:09:01.280 would just set this account up and just have it happening. 0:09:01.320 --> 0:09:03.199 And then when I retire from my job, not me, 0:09:03.320 --> 0:09:05.400 but if you were working a job retired for your job, 0:09:05.440 --> 0:09:09.960 you would make sure that the folks handling your finances 0:09:10.720 --> 0:09:13.240 your money knew that two hundred dollars a month would go. 0:09:13.360 --> 0:09:15.440 You won't even notice it. We're go on auto pay 0:09:15.520 --> 0:09:18.320 into this stock account. It'll just keep compounding and compounding 0:09:18.320 --> 0:09:21.080 and compounding. You can start at birth, Okay, you can 0:09:21.080 --> 0:09:24.360 start at the year two, you start a year five, 0:09:24.480 --> 0:09:27.480 year ten. Yes, you can start at year twenty. Yes, 0:09:27.679 --> 0:09:30.640 you can start when the kid is twenty years of age. 0:09:31.040 --> 0:09:34.240 Two hundred dollars a month it will be about sixty 0:09:34.240 --> 0:09:36.439 three years of age when they become a millionaire in 0:09:36.480 --> 0:09:39.920 that particular case. So that's why I'm suggesting do it early, 0:09:40.160 --> 0:09:45.360 because you want to give them the majority of their 0:09:45.800 --> 0:09:49.679 mature life. People are now living to eighty years of age. 0:09:49.679 --> 0:09:51.800 If you're and better, if you're in good health, you're 0:09:51.880 --> 0:09:55.400 giving them really the second half of their life to 0:09:55.760 --> 0:10:02.000 absolutely transform their life with these resources. We had a 0:10:02.080 --> 0:10:05.480 kid that went through our financial literacy program in Detroit. 0:10:05.720 --> 0:10:08.720 His name was Derek, and the program back then was 0:10:08.720 --> 0:10:12.280 called Banking on Our Future and as part of what 0:10:12.320 --> 0:10:14.720 we now call Hope Inside for Kids, where we taught 0:10:14.720 --> 0:10:17.040 financial literacy as you money. Many of you know. I've 0:10:17.559 --> 0:10:19.520 got my first financial literacy course when I was nine 0:10:19.559 --> 0:10:23.640 years old in Compton, California. Banker came to my classroom 0:10:23.679 --> 0:10:25.679 and taught me financial literacy. And I remember asking the 0:10:25.800 --> 0:10:29.160 banker what do you do for a living and how 0:10:29.160 --> 0:10:33.080 did you get rich legally? And I was dead serious. 0:10:34.880 --> 0:10:37.560 The banker had a red tie and a white shirt 0:10:37.960 --> 0:10:42.040 in a blue suit. Six ' to two issue was 0:10:42.080 --> 0:10:45.480 with the banker was from Bank of America. I remember 0:10:45.520 --> 0:10:48.280 all that, and they didn't want to be there. We 0:10:48.320 --> 0:10:51.400 didn't want them there, right, but their employer sent them in. 0:10:51.679 --> 0:10:55.080 It's part of the Community Reinvestment Act federal legislation that 0:10:55.280 --> 0:10:59.880 requires banks to reinvest in communities, which, by the way, 0:10:59.880 --> 0:11:03.240 I opporation. He participates in CRA today as so it's 0:11:03.280 --> 0:11:07.960 full circle for me. Anyway, banker comes to our classroom 0:11:08.000 --> 0:11:10.720 once a week for four weeks, six weeks. I'm sorry 0:11:10.720 --> 0:11:13.040 for forty five minutes each. First week, we didn't want 0:11:13.080 --> 0:11:15.040 him there. He didn't want to be there. We made 0:11:15.040 --> 0:11:16.800 it clear, he made it clear. The energy was like 0:11:16.880 --> 0:11:20.480 not was not positive. Second week, you're like, you know, 0:11:20.800 --> 0:11:22.880 you can't sort of remind me of my children you're 0:11:22.880 --> 0:11:26.719 not so bad. You're not so bad for a white guy. 0:11:26.840 --> 0:11:29.840 So we started a conversation and built a relationship. And 0:11:30.000 --> 0:11:31.640 I'm like, well, look, you got a suit on. But 0:11:31.720 --> 0:11:33.680 every only the person I know who's white with a 0:11:33.720 --> 0:11:35.920 suit on before you as a detective. And it wasn't 0:11:35.960 --> 0:11:40.360 a good suit. It was polyester. Your suit is Italian design, 0:11:40.400 --> 0:11:44.480 It's got a nice, beautiful stitching. Your Egyptian cotton is 0:11:44.480 --> 0:11:46.120 your shirt. You know. I didn't say that then, I 0:11:46.160 --> 0:11:48.920 know it now. I mean, it's just beautiful. You have 0:11:48.960 --> 0:11:51.000 a car in the garage in the parking lot. It's 0:11:51.000 --> 0:11:54.520 got tags on it. It's legal. No one's chasing you. 0:11:54.880 --> 0:11:57.240 You have a business card that says sixteenth floor on it. 0:11:57.880 --> 0:12:01.440 There's nothing in compton Y on the sixth or eighth floor. 0:12:02.559 --> 0:12:06.320 That's the courthouse. Everything else is one or two floors. 0:12:06.320 --> 0:12:08.520 So where did you come from? And you're in the 0:12:08.520 --> 0:12:09.920 middle here in the middle of the day. My mother 0:12:09.960 --> 0:12:11.880 could not show him in the middle of the day 0:12:12.720 --> 0:12:15.400 because she worked an hourly job with two fifteen minute breaks. 0:12:15.440 --> 0:12:17.880 One Nita Smith, who died a millionaire by the way, 0:12:18.200 --> 0:12:20.640 passed away a millionaire millionaire net worth when she passed 0:12:20.679 --> 0:12:24.520 away a year ago. Last month, she's been promoted and 0:12:24.640 --> 0:12:26.400 had died with a credit score of eight fifty four 0:12:26.480 --> 0:12:28.920 last time when we pulled their credit So she wasn't black, 0:12:29.000 --> 0:12:31.719 she was green. When she went to the computer, the 0:12:31.720 --> 0:12:36.240 computer just said yes. So this banker you know, was 0:12:36.240 --> 0:12:38.120 there in the middle of the day and they were 0:12:38.160 --> 0:12:39.920 on a salary. I didn't know what a salary was, 0:12:40.559 --> 0:12:42.800 and they had a business card. Sixteen floor, sixteen floors, 0:12:42.800 --> 0:12:45.640 Like I met a Marsham. Who are you? Where'd you 0:12:45.679 --> 0:12:49.560 come from? Like? What do you do for a living? Again? 0:12:49.600 --> 0:12:52.199 And how'd you get rich? Legally? He said, I'm a 0:12:52.240 --> 0:12:54.959 banker and I finance entrepreneurs. I said, sir, I don't 0:12:55.000 --> 0:12:57.880 know what an entrepreneur is, but if it's legal and 0:12:57.920 --> 0:13:01.040 you're financing it, I'm going to be you know. I've 0:13:01.040 --> 0:13:02.760 told the story in other ways. You can read in 0:13:02.760 --> 0:13:04.720 my book Financial Literacy for All, which by the way, 0:13:04.840 --> 0:13:06.920 is number one continues to be the number one business 0:13:06.960 --> 0:13:09.280 finance book in the country eight months in a running. 0:13:09.280 --> 0:13:12.000 So everybody who bought the book, thank you. If you 0:13:12.120 --> 0:13:14.439 bought the book, signed the book, well mark it up, 0:13:15.080 --> 0:13:17.400 underline scratch. You use it as a work book for 0:13:17.480 --> 0:13:19.360 your family to co ovid. The plan I've given you 0:13:19.400 --> 0:13:22.160 now and the plan we continue to give you in 0:13:22.160 --> 0:13:25.240 this weekly podcast. And when you're finished with the book 0:13:25.320 --> 0:13:27.559 or buy an extra book, put your family name in 0:13:27.600 --> 0:13:30.480 the book and donate that book to a title I school, 0:13:30.880 --> 0:13:33.559 a struggling school in your a resource struggling school in 0:13:33.559 --> 0:13:36.560 your neighborhood, and or the public libraries. And then go 0:13:36.600 --> 0:13:39.880 in and teach financial literacy after making a Hope commitment 0:13:39.920 --> 0:13:42.360 on the website for Operation Hope to show us so 0:13:42.400 --> 0:13:44.600 we can brag on you in the world that you're 0:13:45.480 --> 0:13:49.080 in your community making a difference. Register that Hope commitment 0:13:50.000 --> 0:13:54.240 with us. Back to the story. So I'm in the class, 0:13:54.280 --> 0:13:59.000 and this banker's inspired me to become an entrepreneur, teaching 0:13:59.040 --> 0:14:04.000 me financial literacy. And I started my first business at 0:14:04.520 --> 0:14:07.319 ten years of age, neighborhood candy house. Again, it's in 0:14:07.320 --> 0:14:10.079 the book Financial Literacy for all this whole story, so 0:14:10.080 --> 0:14:13.200 I won't tell it now, and I do well. I 0:14:13.240 --> 0:14:15.400 made three hundred dollars a week on a forty dollars investment, 0:14:16.160 --> 0:14:19.240 put the liquor storeut of the candy business. Found girls 0:14:19.280 --> 0:14:22.440 lost a business recurring theme in my life. But I'm 0:14:22.440 --> 0:14:25.480 married changed for but it changed my life. This whole 0:14:25.520 --> 0:14:29.080 mindset shift changed my life. Then I asked this banker, 0:14:29.440 --> 0:14:31.800 going back to the class, excuse me, so are there 0:14:31.840 --> 0:14:34.560 any more like you? Like? Just are you the only banker? 0:14:34.680 --> 0:14:37.160 And he said, well, of course not there. You know, 0:14:37.200 --> 0:14:39.960 there are a couple hundred thousand bankers at Bank of 0:14:40.000 --> 0:14:43.800 America alone. And I said, wait a minute. Your job 0:14:44.800 --> 0:14:47.880 is to lend poor people money, and all I have 0:14:47.920 --> 0:14:50.320 to do is prove to you I can pay you 0:14:50.360 --> 0:14:53.360 back based on the stuff you've been teaching me the 0:14:53.440 --> 0:14:55.760 last six weeks in this financial literacy course. He says, yeah, 0:14:55.800 --> 0:14:58.760 that's right, and I don't get dead if I don't 0:14:58.760 --> 0:15:01.080 pay you back. Excuse me, yes, you know, you go 0:15:01.080 --> 0:15:02.800 on the street behind me and get that and get 0:15:02.800 --> 0:15:05.920 a loan from Pooky and them. You don't pay that back, 0:15:05.960 --> 0:15:09.920 you'd be dead. Our neighbor was prison, probation, parole, and death. 0:15:10.000 --> 0:15:13.800 Those were your alternatives if things went wrong. And he said, no, 0:15:14.200 --> 0:15:16.360 young man, I'm not gonna No one's gonna harm you. 0:15:16.360 --> 0:15:18.320 You're going to notice a default. I said, wait a minute, 0:15:18.320 --> 0:15:21.920 to slow down. You're gonna send me a piece of paper, right. 0:15:22.240 --> 0:15:25.200 I didn't realize the credit score. These were so important things. 0:15:25.240 --> 0:15:27.640 You don't want to default on obligations. Clearly you want 0:15:27.680 --> 0:15:29.080 to honor them and follow you for the rest of 0:15:29.080 --> 0:15:30.680 your life. But I was a kid, I'm like, wait 0:15:30.720 --> 0:15:33.360 a minute, I'm using people dying around me. I saw 0:15:33.400 --> 0:15:36.120 two murders before I was nine years old. The worst 0:15:36.120 --> 0:15:38.480 thing's gonna happen to me is you're gonna put something 0:15:38.480 --> 0:15:44.440 on my record. Yes, okay, I now would have to 0:15:44.440 --> 0:15:45.880 know what I'm gonna do for the rest of my life. 0:15:45.960 --> 0:15:49.200 I'm gonna become an entrepreneur, and I now know ultimately 0:15:49.440 --> 0:15:52.520 what I'm gonna do for the rest of everybody else's life. 0:15:52.520 --> 0:15:55.120 I'm gonna teach them how this game works by making 0:15:55.120 --> 0:15:57.560 them bank qualified, showing them financial literacy, showing how to 0:15:57.560 --> 0:16:00.000 get access to credited prime rates. And I didn't really 0:16:00.400 --> 0:16:03.640 at ten years of age, had already preordained my destiny 0:16:04.240 --> 0:16:05.720 of what I was going to be could be my 0:16:06.280 --> 0:16:10.480 contribution to society, which is Operation to Hope. Today, we're 0:16:10.600 --> 0:16:13.120 the larges on the ground delivery system for financial literacy 0:16:13.160 --> 0:16:15.920 in America, fifteen hundred offices forty two states for to 0:16:16.000 --> 0:16:22.360 have billion dollars invested in underserved communities, millions of clients, 0:16:22.400 --> 0:16:25.880 countless impacts that started when I was ten years old, 0:16:25.960 --> 0:16:27.760 nine years old in that classroom, and one of those 0:16:27.840 --> 0:16:31.200 impacts with this young man Derek in Detroit Public Schools. 0:16:31.560 --> 0:16:35.080 And so Mary Haggarty, now Mary Ayerson, who's our president 0:16:35.200 --> 0:16:37.800 for partnerships back then, was I think in charge of programs. 0:16:38.200 --> 0:16:41.320 We land Strigs runs programs. Today. We were in this classroom, 0:16:41.640 --> 0:16:45.840 We're in the school and the young man Derek, and 0:16:45.880 --> 0:16:48.240 this is really Mary's story, but I'm going to put 0:16:48.280 --> 0:16:52.520 myself into this story because I'm the storyteller here. Same thing, 0:16:52.600 --> 0:16:54.720 marry me saying, opreat show, same thing. We're there in 0:16:54.720 --> 0:16:58.360 this classroom, teaching financial literacy, and Derek is coming out 0:16:58.360 --> 0:17:00.200 of the classroom. He's wearing a suit just like me. 0:17:00.600 --> 0:17:04.200 And Derek's you know, you know, applauded for being taught 0:17:04.200 --> 0:17:07.320 financial literacy and paying attention and modeling the volunteer banker. 0:17:07.440 --> 0:17:09.640 He's been modeling this banker banker every once a week 0:17:09.720 --> 0:17:12.760 for weeks, just like I did. And as he's walking 0:17:12.760 --> 0:17:16.480 out the classroom, his friends quotation marks Dart teasing him, Man, Derek, 0:17:16.480 --> 0:17:18.560 while you're wearing that dumb suit. That's a dumb suit. 0:17:18.640 --> 0:17:21.280 Why would you wear what you're looking like that banker. 0:17:21.480 --> 0:17:23.200 You need to come over here, and you need to 0:17:23.280 --> 0:17:24.879 dress like us. You need to hang out like us. 0:17:24.960 --> 0:17:27.480 And so we go over and say to Derek, in 0:17:27.520 --> 0:17:29.760 the midst of him being sort of emotionally jumped on 0:17:29.800 --> 0:17:32.919 the bully, look, you need to take this seventy dollars 0:17:32.920 --> 0:17:35.159 to make a decision about Nike. You and your boys. 0:17:35.560 --> 0:17:36.879 We're going to give you all a chance to make 0:17:36.880 --> 0:17:39.480 a decision about Nike. And mind you, this is a 0:17:39.560 --> 0:17:42.840 long time ago. This, you know, probably twenty years ago. Okay, 0:17:43.240 --> 0:17:46.280 so you know, make a decision about mikey here, Nike 0:17:46.359 --> 0:17:48.440 here seventy dollars, which back then would have brought you 0:17:48.480 --> 0:17:51.320 a share of Nike. So, Derek, you know this is great. 0:17:51.400 --> 0:17:54.080 I want to buy a share of Nike stock. The 0:17:54.119 --> 0:17:57.520 friends say, oh, man, what are you doing. That's stupid. Well, 0:17:57.680 --> 0:17:59.719 here's another stupid thing you're doing. Heck, would you want 0:17:59.720 --> 0:18:01.879 to buy some stupid stock? You want to buy you 0:18:01.920 --> 0:18:06.440 some Air Jordans. That's right, everybody know air Jordan's. Look 0:18:06.480 --> 0:18:09.840 look around, there's folks with future air Jordans on even leather, 0:18:09.880 --> 0:18:13.840 air Jordans, canvas, air Jordans, black, brown tan Air Jordan's 0:18:13.920 --> 0:18:17.600 multi colored air Jordan's special limited edition Air Jordans. Don't 0:18:17.760 --> 0:18:19.520 weren't you at the store with us when everybody's walking 0:18:19.520 --> 0:18:21.439 around standing around the corner and get there the latest 0:18:21.560 --> 0:18:24.240 edition air Jordan's. You need to get you some air Jordans. 0:18:24.240 --> 0:18:26.399 You're not coolest, you've got some Air Jordans. They're just 0:18:26.560 --> 0:18:31.199 pololing this kid with their information with sometimes with friends 0:18:31.240 --> 0:18:34.640 like this, who needs enemies? So we stop them, Hey, hey, hey, hey, 0:18:34.800 --> 0:18:38.600 we go to defend Derek's honor. And Derek says, no, no, no, 0:18:38.720 --> 0:18:42.679 no, no no no no no no no, it's cool. I 0:18:42.720 --> 0:18:46.840 want them to buy those shoes because when they do, 0:18:46.960 --> 0:18:53.159 they're making me money. Boom, drop the mic. So Derek 0:18:53.200 --> 0:19:04.480 got the memo. Derek understood that he's a shareholder. Do 0:19:04.560 --> 0:19:07.199 you know that Black America, as an example, is one 0:19:07.200 --> 0:19:10.240 of the largest consumer spending forces in the world one 0:19:10.359 --> 0:19:15.080 point six give or take trillion dollars, But ninety plus 0:19:15.119 --> 0:19:19.159 percent of that is consumer spending consumption, not consumer spending. 0:19:19.280 --> 0:19:22.919 Consumption is not going in. Anything that renews itself or 0:19:22.920 --> 0:19:26.960 investment itself is consumption. Right, We're just feeding the beast, right, 0:19:28.240 --> 0:19:31.320 And ninety six percent I believe it is off my 0:19:31.359 --> 0:19:36.240 memory of all black businesses are sole proprietorships. Right, you're 0:19:36.280 --> 0:19:39.920 not compounding, not building that, You're just a self employment project. Right. 0:19:40.520 --> 0:19:42.560 We're not dumb and we're not stupid. Is when the 0:19:42.600 --> 0:19:45.280 rules of publishing plain fuels level, we kill it. We 0:19:45.400 --> 0:19:53.959 become experts. And where's that happened? Professional sports and the arts, 0:19:54.000 --> 0:19:57.600 faith in community, faith, church politics were the rules of 0:19:57.600 --> 0:20:01.119 publishing the plainfields level. We absolutely kill it. We succeed, 0:20:02.280 --> 0:20:04.040 but no one taught us the lessons of free enterprise, 0:20:04.119 --> 0:20:07.920 capitalism's economics and opportunity. And Derek Young, Derek may be broke, 0:20:07.960 --> 0:20:10.480 but he'll never be poor. There's a difference between being 0:20:10.520 --> 0:20:13.320 broken being poor. Being broke as economic. Being poor is 0:20:13.359 --> 0:20:16.520 a disabling frame of mind, a depressed condition of your spirit. 0:20:16.560 --> 0:20:19.399 You must vow never ever, ever to be poor again. 0:20:20.080 --> 0:20:22.080 It's okay if you don't like me, I like me, 0:20:23.600 --> 0:20:25.720 I really respect me, and learn to like me. Then 0:20:25.840 --> 0:20:28.440 like me and never respect me. Or as Quincy Jones 0:20:28.480 --> 0:20:30.480 once told me, not went out to My self esteem 0:20:30.520 --> 0:20:33.520 depends on your acceptance of me. Derek is an eagle, 0:20:34.040 --> 0:20:36.560 even if he's surrounded our buzzers and turkeys. He may 0:20:36.600 --> 0:20:39.280 be broke occasionally, that happens in life, but he will 0:20:39.320 --> 0:20:42.520 never be poor because he's been empowered with the civil 0:20:42.560 --> 0:20:46.080 rights issue of this generation financial literacy. Now he's become 0:20:46.200 --> 0:20:48.960 a stockholder. Do you know when you own one share 0:20:48.960 --> 0:20:52.160 of stock of any publicly traded company, please listen to me. Now, 0:20:52.480 --> 0:20:55.520 one share stock of any publicly traded company, you have 0:20:55.560 --> 0:20:58.680 the right to get financials and all the inside information 0:20:58.880 --> 0:21:04.560 from that company. One share of stock. So now we're 0:21:04.600 --> 0:21:08.639 gonna switch switch from the story of Derek and the 0:21:08.720 --> 0:21:12.960 story of the kid who has become who started as 0:21:12.960 --> 0:21:15.119 a as a young investor with the help of their 0:21:15.160 --> 0:21:18.880 parents and maybe their part time job, and became by 0:21:19.119 --> 0:21:23.600 middle age a millionaire. And if, by the way, if 0:21:23.600 --> 0:21:25.359 you want to double it up and put four hundred 0:21:25.400 --> 0:21:30.480 dollars a month in compounding seven percent, you can cut 0:21:30.520 --> 0:21:34.600 the time in half that that young kid of yours 0:21:34.640 --> 0:21:37.320 becomes a millionaire. But four hundred dollars a month is 0:21:37.359 --> 0:21:40.000 probably a heavy clip that's a car note for somebody, 0:21:40.119 --> 0:21:42.200 or a part of a car note. So I'm trying 0:21:42.200 --> 0:21:44.199 to be sensitive to the fact that he's are working families. 0:21:44.200 --> 0:21:45.920 So two hundred dollars a month is probably something you 0:21:45.920 --> 0:21:52.520 could probably do. Let's now switch to a working class family. 0:21:52.520 --> 0:21:57.320 Then I'm gonna now switch to the big baller option 0:21:57.720 --> 0:22:02.320 to build real wealth before we re stop this podcast episode. So, 0:22:02.520 --> 0:22:05.600 now you're a working class person, right. The family makes 0:22:06.680 --> 0:22:09.800 fifty thousand dollars a year, and there's somebody in your 0:22:09.880 --> 0:22:12.800 family that you get along with who makes thirty five 0:22:12.840 --> 0:22:14.960 thousand and thirty eight thousand dollars a year with three kids. Okay, 0:22:15.080 --> 0:22:17.760 so slow down. This is the average family, by the way. Okay, 0:22:18.200 --> 0:22:20.360 working class family. So you make fifty thousand dollars a year. 0:22:20.640 --> 0:22:22.359 I'm going to show you how to become a millionaire 0:22:22.800 --> 0:22:25.840 in about five to eight years. Okay, So I want 0:22:25.880 --> 0:22:27.680 you to do what my mother did. My mother died 0:22:28.200 --> 0:22:30.439 got wrestler, so a millionaire when she passed away. She 0:22:30.480 --> 0:22:32.560 had worked an hourly job when he dismissed. She's in 0:22:32.600 --> 0:22:34.720 the book for the Introlusory for All read about her 0:22:36.359 --> 0:22:38.840 high school education, got her high school equivalency when she 0:22:38.920 --> 0:22:41.240 was sixty plus years of age, walked with those with 0:22:41.320 --> 0:22:43.679