1 00:00:00,080 --> 00:00:02,800 Speaker 1: Welcome to how to Money. I'm Joel and I Matt, 2 00:00:02,920 --> 00:00:25,079 Speaker 1: and today we're discussing teaching our kids about money. Joel, 3 00:00:25,120 --> 00:00:28,840 Speaker 1: So you know that I love Zenny Optical. And it's 4 00:00:28,880 --> 00:00:31,520 Speaker 1: not because they sponsor us. They do not give us 5 00:00:31,520 --> 00:00:34,160 Speaker 1: any money or anything. But they save me a ton 6 00:00:34,320 --> 00:00:36,680 Speaker 1: of money. Dog, and they save everybody it's any money 7 00:00:36,680 --> 00:00:39,000 Speaker 1: who shops there. Yeah, and what I love recently, man, 8 00:00:39,040 --> 00:00:41,519 Speaker 1: is that they specifically sent me an email that was 9 00:00:41,880 --> 00:00:44,479 Speaker 1: targeting the fact that you could specifically spend money from 10 00:00:44,520 --> 00:00:47,560 Speaker 1: your f s A You're Flexible Spending account or your 11 00:00:47,720 --> 00:00:50,400 Speaker 1: h s A your health savings account. You can use 12 00:00:50,400 --> 00:00:53,840 Speaker 1: that money to buy z Any eyeglasses, any eyeglasses really, yeah, 13 00:00:53,880 --> 00:00:56,360 Speaker 1: obviously any eyeglasses. But the fact that Zenny, I mean 14 00:00:56,400 --> 00:00:59,960 Speaker 1: it was just frugal eyeglasses coupled with tax advantage, healthcare 15 00:01:00,040 --> 00:01:02,240 Speaker 1: savings accounts. I mean just all that sort of marrying 16 00:01:02,240 --> 00:01:05,479 Speaker 1: together made me extremely happy. I love Zenny, dude, I've 17 00:01:05,480 --> 00:01:07,720 Speaker 1: been rocking them for like six years now. Yeah. So 18 00:01:07,920 --> 00:01:11,039 Speaker 1: I personally don't wear eyeglasses, but if I did, Oh, 19 00:01:11,080 --> 00:01:12,959 Speaker 1: your eyes are perfect, blah blah blah. I mean, I've 20 00:01:12,959 --> 00:01:14,640 Speaker 1: got a perfect vision. I could probably fly a fighter 21 00:01:14,720 --> 00:01:16,480 Speaker 1: jet or something like that. I'm not gonna do it, 22 00:01:16,520 --> 00:01:19,000 Speaker 1: but prefer to podcast. Actually, I think you're too tall. 23 00:01:19,040 --> 00:01:20,039 Speaker 1: I think you have you have to be like a 24 00:01:20,080 --> 00:01:22,440 Speaker 1: certain height. Oh that's a good point. Yeah, And you're 25 00:01:22,480 --> 00:01:24,640 Speaker 1: so tall you'd pass out because the g's all the 26 00:01:24,640 --> 00:01:26,480 Speaker 1: blood and rush out of your head and you'd be 27 00:01:26,520 --> 00:01:28,520 Speaker 1: those guys passing out, just crashing into the ocean way 28 00:01:28,520 --> 00:01:31,960 Speaker 1: to crush my dreams. Thanks, thanks for that. But I 29 00:01:32,080 --> 00:01:34,400 Speaker 1: might as well get eyeglasses now too. Then I've been 30 00:01:34,400 --> 00:01:36,120 Speaker 1: pretending this whole time that I had a good vision. 31 00:01:36,400 --> 00:01:39,440 Speaker 1: I thought you had a chance. Yeah. So, but Zenny 32 00:01:39,480 --> 00:01:42,080 Speaker 1: is awesome and they have the cheapest eyeglasses around. And 33 00:01:42,080 --> 00:01:44,479 Speaker 1: there was an article recently in the l A Times 34 00:01:44,560 --> 00:01:47,480 Speaker 1: by consumer writer David Lazarus, and man, he's just like 35 00:01:47,520 --> 00:01:49,960 Speaker 1: a great writer if you want to follow consumer issues. 36 00:01:50,080 --> 00:01:53,200 Speaker 1: And so he recently wrote about why eyeglasses cost so 37 00:01:53,280 --> 00:01:56,560 Speaker 1: much in the United States, And it's because there's this 38 00:01:56,880 --> 00:02:01,400 Speaker 1: major company that owns pretty much all of the major 39 00:02:01,640 --> 00:02:05,760 Speaker 1: frame manufacturers lens manufacturers, and they also own actually a 40 00:02:05,760 --> 00:02:09,440 Speaker 1: lot of the eyeglass shops as well. Like yeah, and 41 00:02:09,480 --> 00:02:12,760 Speaker 1: so there looks it's two companies combined, but initially it 42 00:02:12,800 --> 00:02:16,280 Speaker 1: was called just Luxotica, and then they acquired another lens company, 43 00:02:16,520 --> 00:02:20,160 Speaker 1: and so ultimately there's this sounds like a monopoly to me. Yeah, 44 00:02:20,160 --> 00:02:22,640 Speaker 1: there's this monopoly cartel. And when it comes to eyeglasses 45 00:02:22,639 --> 00:02:24,600 Speaker 1: in our country, and the only way around it is 46 00:02:24,639 --> 00:02:28,840 Speaker 1: to buy online with companies like Zenny Optical or Warby Parker, 47 00:02:29,160 --> 00:02:31,079 Speaker 1: and Warby Parker is a little more expensive than Zenny, 48 00:02:31,120 --> 00:02:33,960 Speaker 1: and Zenny actually has I think, from what I've seen, 49 00:02:34,000 --> 00:02:36,720 Speaker 1: pretty much almost as cool frames as Warby Parker for 50 00:02:36,720 --> 00:02:39,040 Speaker 1: a fraction of the cost even of Warby, but Warby 51 00:02:39,120 --> 00:02:41,240 Speaker 1: is awesome too. But either way you go, that's how 52 00:02:41,280 --> 00:02:44,280 Speaker 1: you're gonna save money on eyeglasses. There's a recent discussion 53 00:02:44,320 --> 00:02:46,000 Speaker 1: in our Facebook group that you can find if you 54 00:02:46,040 --> 00:02:48,800 Speaker 1: search how to money just asking about cheap eyeglasses and 55 00:02:48,880 --> 00:02:52,079 Speaker 1: Zenny man just keeps getting brought up by everybody because 56 00:02:52,240 --> 00:02:54,480 Speaker 1: they are one of the best ways to save And 57 00:02:54,480 --> 00:02:56,959 Speaker 1: if you go to the traditional route to get eyeglasses, man, 58 00:02:57,040 --> 00:02:59,000 Speaker 1: you're gonna spend way too much. But I guess at 59 00:02:59,040 --> 00:03:00,919 Speaker 1: least the bright side is you're taking out of your 60 00:03:00,919 --> 00:03:03,280 Speaker 1: health savings account, right, That's right. And a quick tip 61 00:03:03,320 --> 00:03:05,680 Speaker 1: for folks as well. A lot of times people complain 62 00:03:05,760 --> 00:03:07,680 Speaker 1: that the glasses don't fit them super well when they 63 00:03:07,680 --> 00:03:09,839 Speaker 1: come from Zenny, right because they're just getting shipped from 64 00:03:09,840 --> 00:03:12,840 Speaker 1: overseas and there's not a technician someone there in the 65 00:03:12,880 --> 00:03:15,840 Speaker 1: store that's fitting them to your face. And here's the deal. 66 00:03:16,120 --> 00:03:18,679 Speaker 1: When the glasses are that inexpensive, and we're talking under 67 00:03:18,720 --> 00:03:22,000 Speaker 1: twenty bucks, sometimes ten or even six dollars, do not 68 00:03:22,120 --> 00:03:25,120 Speaker 1: be afraid to hit those glasses with a hair dryer. 69 00:03:25,480 --> 00:03:28,960 Speaker 1: Almost all the glasses I've received from Zenny, I've modified slightly, 70 00:03:29,120 --> 00:03:30,680 Speaker 1: and you just heat them up with a hair dryer 71 00:03:31,000 --> 00:03:33,520 Speaker 1: and very slowly, obviously, like you don't want to just 72 00:03:33,520 --> 00:03:37,000 Speaker 1: like blast it and have your plastic frames start like blistering. Right, 73 00:03:37,520 --> 00:03:39,839 Speaker 1: it's a bad look. But you get them soft enough 74 00:03:40,000 --> 00:03:41,640 Speaker 1: slowly over time, and you can kind of bend the 75 00:03:41,640 --> 00:03:43,280 Speaker 1: bridge in a little bit so it fits your face 76 00:03:43,280 --> 00:03:45,320 Speaker 1: a little bit more. If if maybe the arms aren't 77 00:03:45,320 --> 00:03:47,280 Speaker 1: curling around your ears enough like you want them to, 78 00:03:47,640 --> 00:03:49,840 Speaker 1: you heat that up and so you soften the plastic 79 00:03:49,840 --> 00:03:51,640 Speaker 1: a little bit and that allows you to bend it. Obviously, 80 00:03:51,640 --> 00:03:53,000 Speaker 1: there's a little bit of metal in there as well 81 00:03:53,080 --> 00:03:54,960 Speaker 1: to add to add a little bit of sturdiness. But 82 00:03:55,520 --> 00:03:58,880 Speaker 1: you would never think to do that with two ray 83 00:03:58,920 --> 00:04:01,080 Speaker 1: bands that you got from sung Glass, Hut or prol 84 00:04:01,160 --> 00:04:03,600 Speaker 1: Vision wherever. But when you get a cheaper pair like that, 85 00:04:03,680 --> 00:04:05,680 Speaker 1: I didn't hesitate at all because I thought, what am 86 00:04:05,720 --> 00:04:08,320 Speaker 1: I gonna lose? Like six bucks? That's exactly what I'm 87 00:04:08,320 --> 00:04:10,240 Speaker 1: gonna lose six or six dollars. That's the way to 88 00:04:10,280 --> 00:04:12,440 Speaker 1: get a much better fit. And honestly, that's pretty much 89 00:04:12,480 --> 00:04:14,480 Speaker 1: all they do in store as well. They just have 90 00:04:14,680 --> 00:04:17,320 Speaker 1: these heated beads sort of thing that they sort of 91 00:04:17,360 --> 00:04:19,400 Speaker 1: dip the glasses in and it gently warms it and 92 00:04:19,440 --> 00:04:22,240 Speaker 1: then they just bend it. So, yeah, if your glasses 93 00:04:22,240 --> 00:04:24,680 Speaker 1: from Zenny aren't fitting your face really well, hit it 94 00:04:24,720 --> 00:04:26,800 Speaker 1: with a hair dryer and just slowly start bending it 95 00:04:26,839 --> 00:04:28,840 Speaker 1: a little bit, and before you know, you're gonna have 96 00:04:28,880 --> 00:04:31,160 Speaker 1: a pair of glasses that fits you very very well. 97 00:04:31,360 --> 00:04:33,159 Speaker 1: That's so awesome, dude, I love I love that. D 98 00:04:33,279 --> 00:04:35,800 Speaker 1: I y your eyeglasses, buy them super cheap, and then 99 00:04:35,960 --> 00:04:38,120 Speaker 1: bet them to fit your face yourself, all right, Like 100 00:04:38,240 --> 00:04:40,800 Speaker 1: I think people, especially when it's so cheap, really, what 101 00:04:40,839 --> 00:04:42,719 Speaker 1: do you have to lose? Yeah? Exactly, And I would 102 00:04:42,839 --> 00:04:44,360 Speaker 1: know again, I would never have thought to have done 103 00:04:44,360 --> 00:04:46,520 Speaker 1: that on an expensive pair, but with Zenny, why not. 104 00:04:46,720 --> 00:04:48,520 Speaker 1: And so most people when they buy from Zenny, they 105 00:04:48,520 --> 00:04:50,159 Speaker 1: try to buy like three or four pairs at once. 106 00:04:50,320 --> 00:04:53,240 Speaker 1: It just kind of helps. Just you'll find maybe some 107 00:04:53,360 --> 00:04:55,600 Speaker 1: fit your face better than others. And in case you 108 00:04:55,640 --> 00:04:57,400 Speaker 1: lose one, you gotta back up hair. It's nice and 109 00:04:57,480 --> 00:05:00,760 Speaker 1: when you're spending forty or fifty bucks overall for repairs, like, 110 00:05:00,800 --> 00:05:03,000 Speaker 1: why not do it? Yeah? Man, that's right, all right, Matt. 111 00:05:03,000 --> 00:05:05,800 Speaker 1: Since we're talking about teaching kids about money today, I 112 00:05:05,839 --> 00:05:09,200 Speaker 1: wanted to mention quickly that there's some good news on 113 00:05:09,360 --> 00:05:12,320 Speaker 1: the personal finance front, personal finances being taught in schools. 114 00:05:12,520 --> 00:05:15,279 Speaker 1: It turns out that New Jersey just enacted to law 115 00:05:15,520 --> 00:05:19,520 Speaker 1: that's gonna require personal finance classes in in schools in 116 00:05:19,560 --> 00:05:21,320 Speaker 1: the state. In the state of South Carolina at the 117 00:05:21,360 --> 00:05:24,920 Speaker 1: same time has a proposed piece of legislation that kids 118 00:05:24,920 --> 00:05:26,680 Speaker 1: would have to take personal finance in high school and 119 00:05:26,720 --> 00:05:30,120 Speaker 1: then pass a test before graduation knowing more about debt 120 00:05:30,320 --> 00:05:32,760 Speaker 1: and budgeting and just all these things that. Right, you 121 00:05:32,839 --> 00:05:35,000 Speaker 1: and I we wish we learned in school, but we didn't, 122 00:05:35,040 --> 00:05:36,680 Speaker 1: and so we kind of had to be self taught 123 00:05:36,720 --> 00:05:38,720 Speaker 1: when it comes to personal finances in so many ways. 124 00:05:38,880 --> 00:05:41,800 Speaker 1: And I've heard that same gripe from some of our listeners. 125 00:05:41,839 --> 00:05:44,680 Speaker 1: Even Brendan in our Facebook group recently said, I love 126 00:05:44,720 --> 00:05:47,360 Speaker 1: this podcast in this Facebook community. Man, I wish they 127 00:05:47,400 --> 00:05:49,560 Speaker 1: taught us this stuff in public school. And that's the 128 00:05:49,560 --> 00:05:51,760 Speaker 1: sentiment that a lot of people have. I'm trying to 129 00:05:51,839 --> 00:05:55,080 Speaker 1: learn on the fly and I'm finally getting into personal finances, 130 00:05:55,240 --> 00:05:58,159 Speaker 1: but nobody talked to me in school. And that's totally true. 131 00:05:58,320 --> 00:06:00,799 Speaker 1: And in fact, there's a financial report card that gets 132 00:06:00,800 --> 00:06:04,200 Speaker 1: pridate that gets provided by a Center for for Financial Literacy, 133 00:06:04,360 --> 00:06:06,560 Speaker 1: and only five states in our nation get an a 134 00:06:06,920 --> 00:06:10,520 Speaker 1: grade for their financial education efforts, and so that's a 135 00:06:10,760 --> 00:06:12,840 Speaker 1: that's a bummer, right, Yeah, that's pretty rough, dude. We 136 00:06:12,920 --> 00:06:15,320 Speaker 1: learned about trapezoids and all these other things that we 137 00:06:15,360 --> 00:06:17,800 Speaker 1: never come across again after we graduate. But the fact 138 00:06:17,839 --> 00:06:20,559 Speaker 1: that personal finance is something that we use literally pretty 139 00:06:20,640 --> 00:06:23,479 Speaker 1: much every day of our lives, we're not learning about 140 00:06:23,520 --> 00:06:25,800 Speaker 1: it in schools. I think it's a huge disservice to 141 00:06:25,839 --> 00:06:27,880 Speaker 1: our students, and so like, we would love to change that. 142 00:06:27,920 --> 00:06:29,520 Speaker 1: So you know what, you and I we need to 143 00:06:29,520 --> 00:06:31,320 Speaker 1: try to make something happen in our state. You know, 144 00:06:31,400 --> 00:06:33,239 Speaker 1: I was actually thinking when you mentioned in South Carolina 145 00:06:33,240 --> 00:06:37,160 Speaker 1: about Chad's behind that junk, Oh Chad from our Monday episode, 146 00:06:37,480 --> 00:06:39,680 Speaker 1: Chad Carson kind of changing the world up there in 147 00:06:39,720 --> 00:06:42,279 Speaker 1: South Carolina, at least in Clemson. Yeah, man, I couldn't 148 00:06:42,279 --> 00:06:44,520 Speaker 1: agree with you. More personal finance needs to be taught. 149 00:06:44,560 --> 00:06:46,000 Speaker 1: All right, Matt, let's move on to the beer that 150 00:06:46,040 --> 00:06:48,800 Speaker 1: we're drinking today on the show. It's another beer from 151 00:06:48,839 --> 00:06:52,239 Speaker 1: listener Alex, who sent us something for Monday's episode as well. 152 00:06:52,520 --> 00:06:55,840 Speaker 1: This is a beer called Peanut Brother by Great Notion Brewing. 153 00:06:56,120 --> 00:06:58,479 Speaker 1: It's a peanut butter chocolate stout. I'll let you go 154 00:06:58,560 --> 00:07:01,480 Speaker 1: first this week. What's your one war to describe this beer? Buddy? 155 00:07:02,000 --> 00:07:04,960 Speaker 1: Oh man, this is good beer. It's been a minute 156 00:07:04,960 --> 00:07:07,400 Speaker 1: since we've had a peanut butter stout. My one word 157 00:07:07,520 --> 00:07:10,800 Speaker 1: is going to be refreshing. Yeah, but you want to 158 00:07:10,800 --> 00:07:14,320 Speaker 1: expect in that word. Yeah, man, this beer is powerful 159 00:07:14,440 --> 00:07:17,680 Speaker 1: and tasty, and so my word is going to be Reese's. 160 00:07:18,400 --> 00:07:21,880 Speaker 1: That's obvious. Sometimes you just gotta go with the obvious 161 00:07:21,920 --> 00:07:23,720 Speaker 1: thing right in front of you, all right, Matt, onto 162 00:07:23,720 --> 00:07:26,560 Speaker 1: the topic of hand teaching our kids about money. You know, 163 00:07:26,640 --> 00:07:28,880 Speaker 1: since there isn't a formal system in place when it 164 00:07:28,880 --> 00:07:32,160 Speaker 1: comes to teaching our kids about money, the job falls 165 00:07:32,200 --> 00:07:35,200 Speaker 1: squarely on us as parents. And so hopefully this is 166 00:07:35,240 --> 00:07:38,200 Speaker 1: something that we've realized and that we can intentionally teach 167 00:07:38,280 --> 00:07:42,240 Speaker 1: lessons as we shape our kids perceptions towards money. But 168 00:07:42,320 --> 00:07:44,080 Speaker 1: at the very least, we have to keep in mind 169 00:07:44,120 --> 00:07:47,960 Speaker 1: that our own attitudes get absorbed as our kids are 170 00:07:48,000 --> 00:07:50,960 Speaker 1: adopting our views towards money. Yeah, man, I think that 171 00:07:51,000 --> 00:07:53,560 Speaker 1: there that we placed a lot more pressure on teachers nowadays, 172 00:07:53,600 --> 00:07:56,119 Speaker 1: and we expect our teachers to teach our kids everything 173 00:07:56,160 --> 00:07:58,160 Speaker 1: they need to know in regards to life and how 174 00:07:58,160 --> 00:08:00,320 Speaker 1: to move through it, and as parents, sometime aimes we 175 00:08:00,400 --> 00:08:02,440 Speaker 1: take a back seat thinking that our teachers are gonna 176 00:08:02,600 --> 00:08:04,920 Speaker 1: do the heavy lifting in regards to some of that teaching, 177 00:08:05,280 --> 00:08:08,240 Speaker 1: and teachers do a great deal of teaching for our kids. 178 00:08:08,240 --> 00:08:10,560 Speaker 1: They I'm so amazed already at at how much my 179 00:08:10,640 --> 00:08:13,120 Speaker 1: kids learn are learning in school, but also it's our 180 00:08:13,200 --> 00:08:15,880 Speaker 1: job as parents to reinforce those things and then also 181 00:08:15,920 --> 00:08:17,240 Speaker 1: teach some things that they're not going to learn in 182 00:08:17,280 --> 00:08:20,000 Speaker 1: school and personal finance, you know what, bummer I wish 183 00:08:20,000 --> 00:08:21,760 Speaker 1: it was a part of high school courses, but it's 184 00:08:21,800 --> 00:08:23,520 Speaker 1: something that we have to teach them even if it 185 00:08:23,640 --> 00:08:25,600 Speaker 1: was in high school courses. It's something that we need 186 00:08:25,640 --> 00:08:28,800 Speaker 1: to start teaching them way before they get to that 187 00:08:28,840 --> 00:08:31,280 Speaker 1: point as well. And so we're gonna talk about in 188 00:08:31,280 --> 00:08:34,280 Speaker 1: this episode how to teach to different ages and stages, 189 00:08:34,559 --> 00:08:37,880 Speaker 1: some of our philosophies on how we're teaching our kids 190 00:08:37,920 --> 00:08:39,920 Speaker 1: and how we're planning in the future to teach our 191 00:08:39,960 --> 00:08:43,280 Speaker 1: kids about money, as well as some key principles and 192 00:08:43,400 --> 00:08:46,880 Speaker 1: tactics that you should consider taking in your own family 193 00:08:46,920 --> 00:08:49,480 Speaker 1: life as you seek to raise children that know how 194 00:08:49,520 --> 00:08:51,720 Speaker 1: to go out in the world and handle their personal 195 00:08:51,760 --> 00:08:54,480 Speaker 1: finance as well. And so we'll dive into all that 196 00:08:54,520 --> 00:09:06,160 Speaker 1: stuff right after the break. All right, Joel, we're gonna 197 00:09:06,200 --> 00:09:09,439 Speaker 1: talk now about some principles that we feel are incredibly 198 00:09:09,480 --> 00:09:11,800 Speaker 1: important for us to teach our kids. And the first 199 00:09:11,840 --> 00:09:14,880 Speaker 1: one that we're gonna cover now is the value of money. 200 00:09:15,400 --> 00:09:17,160 Speaker 1: You know, honestly, this is the biggest lesson that I 201 00:09:17,160 --> 00:09:19,080 Speaker 1: want to teach my kids, right is for them to 202 00:09:19,400 --> 00:09:22,880 Speaker 1: understand that they receive money because they've done work. At 203 00:09:22,920 --> 00:09:25,560 Speaker 1: this point in the raising of our kids, I don't 204 00:09:25,559 --> 00:09:28,760 Speaker 1: plan to give our kids allowances. Right, There's something about 205 00:09:28,840 --> 00:09:31,240 Speaker 1: that that there's a stipend that you just get money 206 00:09:31,280 --> 00:09:34,360 Speaker 1: because you're alive and live under my roof. That kind 207 00:09:34,400 --> 00:09:36,280 Speaker 1: of rubs me the wrong way. I would approach it 208 00:09:36,320 --> 00:09:38,559 Speaker 1: more from an angle like the like their own commission. 209 00:09:38,679 --> 00:09:40,480 Speaker 1: There are jobs that need to be done, and there 210 00:09:40,480 --> 00:09:42,480 Speaker 1: are things that we're going to have talked about, and 211 00:09:42,520 --> 00:09:44,440 Speaker 1: if they do have that desire to earn money, that 212 00:09:44,520 --> 00:09:45,719 Speaker 1: this is how you do it. Do you feel like 213 00:09:45,760 --> 00:09:48,400 Speaker 1: that's a little too hardcore. No, I don't think so. Honestly, 214 00:09:48,559 --> 00:09:51,120 Speaker 1: I don't plan on giving my kids an allowance. I 215 00:09:51,160 --> 00:09:54,360 Speaker 1: think there are decent reasons for giving your kids an allowance. 216 00:09:54,400 --> 00:09:56,600 Speaker 1: I'm not completely opposed to the idea, but for me, 217 00:09:56,640 --> 00:09:57,880 Speaker 1: I mean, I think, yeah, when you get out in 218 00:09:57,920 --> 00:10:00,840 Speaker 1: the real world, the way you earn money is typically 219 00:10:01,240 --> 00:10:04,760 Speaker 1: pretty much solely through through work, right, and so helping 220 00:10:04,960 --> 00:10:08,800 Speaker 1: your kids establish that correlation that you get money by working, 221 00:10:09,280 --> 00:10:11,400 Speaker 1: I think is the right way to go. And like 222 00:10:11,440 --> 00:10:13,880 Speaker 1: you said, giving them a stipend for living under your roof, 223 00:10:14,080 --> 00:10:16,920 Speaker 1: I mean until we have something like potentially universal basic 224 00:10:16,960 --> 00:10:19,320 Speaker 1: income in our country. If we have that, then maybe 225 00:10:19,720 --> 00:10:22,400 Speaker 1: I will revert more to an allowance to model right right, 226 00:10:22,440 --> 00:10:24,720 Speaker 1: but that doesn't exist, and so it doesn't model our 227 00:10:24,760 --> 00:10:27,000 Speaker 1: current systems that we have, our current economy. Yeah, and 228 00:10:27,160 --> 00:10:28,800 Speaker 1: so for me, I want to give an example. My 229 00:10:28,840 --> 00:10:31,440 Speaker 1: parents didn't pay for my first car, didn't even really 230 00:10:31,440 --> 00:10:33,840 Speaker 1: put a dollar towards it. I knew from the get 231 00:10:33,840 --> 00:10:36,640 Speaker 1: go that I had to work and save every dollar 232 00:10:36,760 --> 00:10:39,040 Speaker 1: that I made to to buy my first car, and 233 00:10:39,080 --> 00:10:42,600 Speaker 1: so I distinctly remember how much money I spent on 234 00:10:42,640 --> 00:10:46,560 Speaker 1: my first car, and I remember the care that I 235 00:10:46,640 --> 00:10:49,760 Speaker 1: took of that car because I bought it with all 236 00:10:49,760 --> 00:10:52,280 Speaker 1: my own dollars. I remember how many cars I looked 237 00:10:52,280 --> 00:10:55,040 Speaker 1: at in order to buy that first car, and it 238 00:10:55,120 --> 00:10:57,280 Speaker 1: was such a big moment for me, and it was 239 00:10:57,320 --> 00:11:00,680 Speaker 1: such a good money lesson that I had to make 240 00:11:00,720 --> 00:11:03,000 Speaker 1: the money myself. And then I had to go make 241 00:11:03,000 --> 00:11:04,679 Speaker 1: that purchase. And my dad was there every step of 242 00:11:04,720 --> 00:11:07,160 Speaker 1: the way. He helped me to make the purchase, but 243 00:11:07,520 --> 00:11:09,280 Speaker 1: the money was all mine. It was one of my 244 00:11:09,400 --> 00:11:12,600 Speaker 1: first big time growing up decisions. And I feel like 245 00:11:12,640 --> 00:11:15,880 Speaker 1: you actually kind of rob your kids of something like that, 246 00:11:16,120 --> 00:11:19,120 Speaker 1: of kind of a coming of age moment, and we 247 00:11:19,120 --> 00:11:21,280 Speaker 1: we lament in our culture how our kids are growing 248 00:11:21,400 --> 00:11:24,600 Speaker 1: up at later and later stages, but yet we're we 249 00:11:24,640 --> 00:11:27,600 Speaker 1: refused to give them the ability to make decisions on 250 00:11:27,640 --> 00:11:29,640 Speaker 1: their own and to kind of hand the reins over 251 00:11:29,640 --> 00:11:32,080 Speaker 1: to them. And a lot of it has to do, honestly, 252 00:11:32,400 --> 00:11:35,400 Speaker 1: with taking control of their own money at an earlier 253 00:11:35,440 --> 00:11:37,920 Speaker 1: and earlier age. Yeah, at that point you were able 254 00:11:37,960 --> 00:11:41,120 Speaker 1: to truly learn the value of money because you had 255 00:11:41,160 --> 00:11:43,760 Speaker 1: worked for And that's my big rub with the allowances 256 00:11:43,840 --> 00:11:45,600 Speaker 1: that I think a lot of times the argument for 257 00:11:45,640 --> 00:11:47,640 Speaker 1: an allowance is that, well, we want to teach our 258 00:11:47,720 --> 00:11:49,920 Speaker 1: kids how to handle money. We want to teach them 259 00:11:49,920 --> 00:11:52,640 Speaker 1: how to spend it and how to save it, but 260 00:11:53,160 --> 00:11:55,720 Speaker 1: I think how to earn it is one of the 261 00:11:55,760 --> 00:11:58,840 Speaker 1: most important lessons that you can learn about money, at 262 00:11:58,880 --> 00:12:01,360 Speaker 1: least initially. Is the end we're gonna get to a 263 00:12:01,360 --> 00:12:04,040 Speaker 1: principle that might be a little more advanced, but initially 264 00:12:04,640 --> 00:12:07,040 Speaker 1: you get money because you work. And and the other 265 00:12:07,080 --> 00:12:09,040 Speaker 1: thing is too, is that it's important to note that 266 00:12:09,080 --> 00:12:12,240 Speaker 1: as parents we can still love on our kids with gifts. 267 00:12:12,640 --> 00:12:15,600 Speaker 1: My girls aren't only ever going to receive money from us, 268 00:12:15,679 --> 00:12:17,719 Speaker 1: from from my wife and I just because they've done 269 00:12:17,760 --> 00:12:20,360 Speaker 1: a chore or a job, or they've accomplished something. There's 270 00:12:20,360 --> 00:12:21,920 Speaker 1: gonna be times when we give them things because we 271 00:12:21,960 --> 00:12:24,640 Speaker 1: love them. I think there's a fine line between. Certainly, 272 00:12:24,640 --> 00:12:27,320 Speaker 1: there's hardcore lessons that I want to teach, for sure, 273 00:12:27,600 --> 00:12:29,280 Speaker 1: but at the same time, there's gonna be moments where 274 00:12:29,280 --> 00:12:31,080 Speaker 1: we kind of break the rules because you know what, 275 00:12:31,240 --> 00:12:33,120 Speaker 1: I'm your father and I love you and I want 276 00:12:33,160 --> 00:12:35,679 Speaker 1: you to have this. You know what I'm saying, Yeah, completely, 277 00:12:35,720 --> 00:12:39,040 Speaker 1: and yeah, there's times where having those solid rules and 278 00:12:39,040 --> 00:12:41,680 Speaker 1: then that occasional time where you're able to do something 279 00:12:42,360 --> 00:12:45,160 Speaker 1: a little bit out of the ordinary and give your 280 00:12:45,240 --> 00:12:48,240 Speaker 1: kids something super awesome that they've been asking for or wanting. 281 00:12:48,640 --> 00:12:50,600 Speaker 1: I think that's super important at the same time, Matt. 282 00:12:50,679 --> 00:12:53,080 Speaker 1: And so right now, my kids are super young, they're 283 00:12:53,120 --> 00:12:55,480 Speaker 1: five and three, and so what I'm trying to instill 284 00:12:55,520 --> 00:12:58,199 Speaker 1: in them is that they can make a specific small 285 00:12:58,240 --> 00:13:00,680 Speaker 1: dollar amount for work that they do around the house. 286 00:13:00,800 --> 00:13:03,840 Speaker 1: Typically that's cleaning up the room or really just picking 287 00:13:03,880 --> 00:13:05,720 Speaker 1: up their stuff because it gets all over the place, right, 288 00:13:06,080 --> 00:13:08,000 Speaker 1: And then what we do is we're able to go 289 00:13:08,080 --> 00:13:10,720 Speaker 1: out to the dollar store or something like that and 290 00:13:10,720 --> 00:13:13,160 Speaker 1: they're able to spend their dollar or if they've saved 291 00:13:13,200 --> 00:13:14,839 Speaker 1: it up. They maybe they have three or four dollars, 292 00:13:14,880 --> 00:13:17,000 Speaker 1: which is really cool because we're kind of starting really 293 00:13:17,040 --> 00:13:19,679 Speaker 1: small to teach that idea of you want this thing, 294 00:13:19,800 --> 00:13:21,440 Speaker 1: but you don't qubably have enough money for it yet, 295 00:13:21,480 --> 00:13:23,800 Speaker 1: so saving for a little bit longer, you're gonna be 296 00:13:23,840 --> 00:13:25,600 Speaker 1: able to afford that, maybe in a couple of weeks. 297 00:13:25,960 --> 00:13:28,679 Speaker 1: But instilling that idea that they get money when they 298 00:13:28,679 --> 00:13:31,800 Speaker 1: work has been so awesome. My oldest daughter like often 299 00:13:31,880 --> 00:13:33,920 Speaker 1: volunteers now to do work and she's like, can I 300 00:13:33,920 --> 00:13:35,040 Speaker 1: get paid for it? And so we have to have 301 00:13:35,080 --> 00:13:37,280 Speaker 1: that discussion and we'll talk about that in just a 302 00:13:37,280 --> 00:13:39,240 Speaker 1: little bit. Do we get paid for every chore or 303 00:13:39,320 --> 00:13:41,480 Speaker 1: are there certain things that are that we do just 304 00:13:41,559 --> 00:13:43,920 Speaker 1: being just because we're part of the family. So it 305 00:13:43,920 --> 00:13:45,760 Speaker 1: sounds like some of that's kind of taken to it. Then, huh, 306 00:13:45,840 --> 00:13:47,960 Speaker 1: Like she's got the idea of of working and sort 307 00:13:47,960 --> 00:13:50,000 Speaker 1: of earning the money she does. My three year old 308 00:13:50,000 --> 00:13:52,920 Speaker 1: not so much. She's kind of on the sidelines and 309 00:13:52,960 --> 00:13:55,400 Speaker 1: now not working for the money oftentimes, and then she 310 00:13:55,480 --> 00:13:57,960 Speaker 1: just doesn't get paid and she doesn't really mind it 311 00:13:58,000 --> 00:14:00,760 Speaker 1: at that point in time, but she actually really doesn't 312 00:14:00,760 --> 00:14:02,600 Speaker 1: like it when we're at the dollar store and she 313 00:14:03,040 --> 00:14:06,480 Speaker 1: doesn't have enough money to wake up calling. Yeah. Yeah, 314 00:14:06,720 --> 00:14:08,800 Speaker 1: so I think she'll get into it. She's three. I'm 315 00:14:08,800 --> 00:14:11,280 Speaker 1: trying to find ways to keep a balance where they 316 00:14:11,280 --> 00:14:13,679 Speaker 1: don't feel terrible about the fact that they didn't do 317 00:14:13,720 --> 00:14:16,480 Speaker 1: that work, but you know, coaching them along the way 318 00:14:16,960 --> 00:14:18,600 Speaker 1: so the next time there is work to be done, 319 00:14:18,800 --> 00:14:20,880 Speaker 1: they're both ready to get up and and start cleaning 320 00:14:20,960 --> 00:14:22,760 Speaker 1: up because I need their help out around the house 321 00:14:22,800 --> 00:14:25,040 Speaker 1: now at this point, right, yeah, man, they're getting to 322 00:14:25,080 --> 00:14:27,000 Speaker 1: that age where where they can certainly help out around 323 00:14:27,000 --> 00:14:28,920 Speaker 1: the house. Our daughter is also five, but we just 324 00:14:28,960 --> 00:14:30,560 Speaker 1: started way too young, and I think we kind of 325 00:14:30,720 --> 00:14:32,480 Speaker 1: kind of burned her a little bit. Like we started 326 00:14:32,520 --> 00:14:35,320 Speaker 1: the chores and the tasks that she could earn money 327 00:14:35,800 --> 00:14:38,760 Speaker 1: when she was three years old, and it didn't really stick. 328 00:14:38,960 --> 00:14:41,360 Speaker 1: Like she didn't at all understand the value of money 329 00:14:41,360 --> 00:14:43,480 Speaker 1: like she would she would earn the money and then 330 00:14:43,520 --> 00:14:45,520 Speaker 1: she knew it was money, so she would stash at 331 00:14:45,560 --> 00:14:49,160 Speaker 1: places and she would kind of forget where money was, 332 00:14:49,240 --> 00:14:51,000 Speaker 1: and that we would find this money is kind of 333 00:14:51,000 --> 00:14:52,880 Speaker 1: scattered around the house like a little pack rat. She's 334 00:14:52,920 --> 00:14:55,320 Speaker 1: like a hoarder. Yeah, yeah, she knew that it was valuable, 335 00:14:55,320 --> 00:14:57,480 Speaker 1: but she didn't quite understand what it was for. And 336 00:14:57,520 --> 00:14:59,520 Speaker 1: so maybe that's more on us as parents to kind 337 00:14:59,520 --> 00:15:01,200 Speaker 1: of connect the as dots and maybe show up at 338 00:15:01,200 --> 00:15:03,480 Speaker 1: the store to show that, hey, if this is something 339 00:15:03,480 --> 00:15:05,200 Speaker 1: that you want, this is something that you can buy 340 00:15:05,240 --> 00:15:07,560 Speaker 1: with with your own money. And honestly, what I think 341 00:15:07,640 --> 00:15:09,800 Speaker 1: might help now is the fact that our oldest daughters 342 00:15:09,800 --> 00:15:13,880 Speaker 1: can read. Because we had a chore chart before and 343 00:15:13,920 --> 00:15:15,800 Speaker 1: we would have the jobs written out, but we'd have 344 00:15:15,840 --> 00:15:17,840 Speaker 1: to tell them what they had to do. But now 345 00:15:17,880 --> 00:15:19,360 Speaker 1: she might be able to look at that and read 346 00:15:19,440 --> 00:15:21,200 Speaker 1: and you know it's it'll say bed, and she might 347 00:15:21,200 --> 00:15:24,280 Speaker 1: know that, Okay, I have to go make my bed now. Right. So, yeah, 348 00:15:24,360 --> 00:15:27,080 Speaker 1: we're certainly at the very early stages of teaching our 349 00:15:27,160 --> 00:15:29,280 Speaker 1: kids about money. But these are the principles that we've 350 00:15:29,320 --> 00:15:32,000 Speaker 1: identified to be important to us that we are teaching 351 00:15:32,000 --> 00:15:34,240 Speaker 1: our kids. Yeah, and studies have shown math that you 352 00:15:34,280 --> 00:15:37,520 Speaker 1: should really start as young as potentially three, and obviously, 353 00:15:37,560 --> 00:15:39,880 Speaker 1: like hardcore lectures aren't going to get the job done, 354 00:15:40,080 --> 00:15:42,680 Speaker 1: but starting young is really important. So we're trying to 355 00:15:42,680 --> 00:15:44,600 Speaker 1: do that. And so if you have kids of almost 356 00:15:44,640 --> 00:15:47,040 Speaker 1: any age, it's important to to find out where they're 357 00:15:47,040 --> 00:15:49,560 Speaker 1: at and give them money. Coaching you know where they're at, 358 00:15:49,600 --> 00:15:52,080 Speaker 1: specifically in life. So let's move on to our second 359 00:15:52,080 --> 00:15:54,680 Speaker 1: principle that we want to cover, which is that giving 360 00:15:55,080 --> 00:15:58,720 Speaker 1: right is just as important as saving and spending. If 361 00:15:58,720 --> 00:16:01,240 Speaker 1: you're so focused on earning money and feeling like that 362 00:16:01,320 --> 00:16:04,480 Speaker 1: every time you do something good, you perform, you do 363 00:16:04,520 --> 00:16:07,280 Speaker 1: what you're supposed to do, you then receive that money. 364 00:16:07,400 --> 00:16:09,480 Speaker 1: I think that sort of mindset, if that gets too 365 00:16:09,600 --> 00:16:12,320 Speaker 1: ingrained into a child, that can lead to a lack 366 00:16:12,360 --> 00:16:15,840 Speaker 1: of compassion, right. And that's where generosity and an open 367 00:16:15,880 --> 00:16:18,280 Speaker 1: hand to where you're not so attached to your money 368 00:16:18,480 --> 00:16:21,120 Speaker 1: can sort of create that balance. I want to have 369 00:16:21,200 --> 00:16:23,920 Speaker 1: kids who have compassion, right, and who have that sort 370 00:16:23,920 --> 00:16:26,480 Speaker 1: of generous heart, so that when they're in a situation 371 00:16:26,560 --> 00:16:29,000 Speaker 1: where they see somebody in need or somebody that might 372 00:16:29,000 --> 00:16:31,720 Speaker 1: be less fortunate, they're not immediately thinking, oh, why aren't 373 00:16:31,720 --> 00:16:33,800 Speaker 1: you working harder? No doubt, Matt, and I feel like 374 00:16:34,000 --> 00:16:36,480 Speaker 1: a lot of families will do this differently, Right, We'll 375 00:16:36,520 --> 00:16:41,000 Speaker 1: teach their kids about generosity and giving a little bit differently, 376 00:16:41,040 --> 00:16:43,960 Speaker 1: and that's okay. And I think one thing is important 377 00:16:44,040 --> 00:16:46,600 Speaker 1: it's hard for a kid to visualize the impact of 378 00:16:46,600 --> 00:16:49,320 Speaker 1: their dollars being given away if it goes into a 379 00:16:49,400 --> 00:16:52,520 Speaker 1: jar and you write a check based on that amount. 380 00:16:52,800 --> 00:16:55,600 Speaker 1: So I would recommend to to folks to go serve 381 00:16:55,800 --> 00:16:58,880 Speaker 1: with your kids at the same time. So maybe your 382 00:16:58,960 --> 00:17:00,840 Speaker 1: check is going to one chair and you serve at 383 00:17:00,880 --> 00:17:03,320 Speaker 1: another with your kids. However, it works where you can 384 00:17:03,360 --> 00:17:06,520 Speaker 1: help your kids connect the dots in a meaningful way 385 00:17:06,600 --> 00:17:10,560 Speaker 1: that their money is going to actually physically help other people. 386 00:17:10,880 --> 00:17:13,639 Speaker 1: Maybe it's serving at a soup kitchen or playing bingo 387 00:17:13,800 --> 00:17:17,240 Speaker 1: at a retirement home nearby where you live. But look, kids, 388 00:17:17,320 --> 00:17:19,080 Speaker 1: the money that you earned and then the portion that 389 00:17:19,119 --> 00:17:22,159 Speaker 1: you donated actually went to serve donuts and coffee for 390 00:17:22,200 --> 00:17:24,919 Speaker 1: our friends at this at this retirement home, or to 391 00:17:25,200 --> 00:17:27,800 Speaker 1: provide the food that we're serving at this soup kitchen. 392 00:17:27,840 --> 00:17:30,280 Speaker 1: There are just ways to help connect the dots, and 393 00:17:30,320 --> 00:17:33,680 Speaker 1: oftentimes you need a tangible experience in order to kind 394 00:17:33,680 --> 00:17:35,600 Speaker 1: of drive that point home. And we have a whole 395 00:17:35,720 --> 00:17:38,800 Speaker 1: episode on giving that we did a while back, and 396 00:17:38,920 --> 00:17:42,480 Speaker 1: especially if you're looking to find a good charity that 397 00:17:42,640 --> 00:17:45,320 Speaker 1: uses your money, well, we talked about websites to use 398 00:17:45,400 --> 00:17:48,000 Speaker 1: in that episode. They will help you find charities that 399 00:17:48,040 --> 00:17:50,720 Speaker 1: are doing really good work, and you can find charities 400 00:17:50,800 --> 00:17:53,040 Speaker 1: that use most of their money to go to the 401 00:17:53,040 --> 00:17:55,600 Speaker 1: actual people in need and not just to service overhead 402 00:17:55,680 --> 00:17:58,720 Speaker 1: of a bulky nonprofit. Another thing that we prioritize when 403 00:17:58,800 --> 00:18:02,240 Speaker 1: teaching our kids about money to distinguish between the work 404 00:18:02,400 --> 00:18:04,639 Speaker 1: they need to do in order to get paid and 405 00:18:04,640 --> 00:18:06,520 Speaker 1: then work that they need to do around the house 406 00:18:06,840 --> 00:18:09,480 Speaker 1: just because they're part of the family. And so right now, 407 00:18:09,480 --> 00:18:11,240 Speaker 1: I don't know about you, but I'm kind of airing 408 00:18:11,280 --> 00:18:13,719 Speaker 1: on the side of paying my kids for work just 409 00:18:13,760 --> 00:18:16,080 Speaker 1: to kind of teach them to concept. And there aren't 410 00:18:16,160 --> 00:18:19,080 Speaker 1: really that many tasks that they can perform at ages 411 00:18:19,160 --> 00:18:21,439 Speaker 1: three and five. Before I mow the lawn, my five 412 00:18:21,520 --> 00:18:23,520 Speaker 1: year old can go pick up sticks in the backyard 413 00:18:23,560 --> 00:18:25,680 Speaker 1: to make sure that I don't mow over them right. 414 00:18:25,880 --> 00:18:28,480 Speaker 1: And she can obviously pick up her room and make 415 00:18:28,520 --> 00:18:30,600 Speaker 1: her bed, and she's learning how to do more and 416 00:18:30,640 --> 00:18:32,920 Speaker 1: more things, which is cool, But right now I'm airing 417 00:18:32,920 --> 00:18:34,679 Speaker 1: on the side of paying her. But the older and 418 00:18:34,720 --> 00:18:37,240 Speaker 1: older she gets, the more responsibilities that she's going to 419 00:18:37,359 --> 00:18:40,199 Speaker 1: have in our house just being part of the family, 420 00:18:40,400 --> 00:18:42,639 Speaker 1: and she's not gonna get paid for them, and so 421 00:18:42,640 --> 00:18:44,159 Speaker 1: I think it's a line in the sand that you 422 00:18:44,200 --> 00:18:46,159 Speaker 1: need to draw that's gonna be different at different ages. 423 00:18:46,359 --> 00:18:48,600 Speaker 1: But that's an important thing for me to teach my kids, 424 00:18:48,920 --> 00:18:50,840 Speaker 1: is that there are certain things they have to do 425 00:18:51,080 --> 00:18:53,359 Speaker 1: just because they live in our house and because they 426 00:18:53,400 --> 00:18:56,920 Speaker 1: are a part of this greater thing called a family unit. Dude. 427 00:18:56,920 --> 00:18:58,879 Speaker 1: I love what you said about them getting older and 428 00:18:58,880 --> 00:19:01,560 Speaker 1: then it changing because things do change, and something that 429 00:19:01,600 --> 00:19:03,560 Speaker 1: may have started out as a task that they were 430 00:19:03,600 --> 00:19:06,280 Speaker 1: paid for can then sort of graduate into something that 431 00:19:06,280 --> 00:19:07,679 Speaker 1: they don't know. You just got to do that now 432 00:19:07,680 --> 00:19:09,640 Speaker 1: because you're old enough, right, and now you get paid 433 00:19:09,640 --> 00:19:12,000 Speaker 1: for these other things exactly. Yeah, these more complicated or 434 00:19:12,040 --> 00:19:15,440 Speaker 1: these more labor intensive tasks. I think something else too 435 00:19:15,440 --> 00:19:18,600 Speaker 1: that can differentiate between those two tasks or what you 436 00:19:18,720 --> 00:19:21,040 Speaker 1: call them. For some reason, in my mind, I hear chores, 437 00:19:21,080 --> 00:19:23,240 Speaker 1: and I think of it's just something you do because 438 00:19:23,280 --> 00:19:25,320 Speaker 1: you're part of the family. Right. In my mind, you 439 00:19:25,320 --> 00:19:28,560 Speaker 1: don't get paid for chores, even though I did, like 440 00:19:28,600 --> 00:19:30,639 Speaker 1: as a kid, like that's just what my jobs were 441 00:19:30,640 --> 00:19:32,280 Speaker 1: called as a kid, Like I did my chores, and 442 00:19:32,359 --> 00:19:34,600 Speaker 1: then because that I was paid an allowance, I didn't 443 00:19:34,600 --> 00:19:36,560 Speaker 1: get my allowance if I didn't do my chores. It's 444 00:19:36,560 --> 00:19:38,600 Speaker 1: just the language that my parents used. But in my 445 00:19:38,640 --> 00:19:41,159 Speaker 1: mind now, for whatever reason, chores to me are what 446 00:19:41,240 --> 00:19:43,600 Speaker 1: you do as a family, because you're part of the 447 00:19:43,640 --> 00:19:46,400 Speaker 1: family and you're expected to do them. What we tried 448 00:19:46,440 --> 00:19:49,000 Speaker 1: to do when us three is we we tried to 449 00:19:49,000 --> 00:19:51,960 Speaker 1: call the tasks that she were to perform where she 450 00:19:52,000 --> 00:19:54,560 Speaker 1: would earn money. We tried to specifically call those jobs 451 00:19:54,800 --> 00:19:57,560 Speaker 1: in order to mirror the real world, right, so to 452 00:19:57,640 --> 00:20:00,600 Speaker 1: mirror the market and okay, are did you do your 453 00:20:00,680 --> 00:20:03,680 Speaker 1: job this morning? If so, then you get paid. Chores 454 00:20:03,760 --> 00:20:06,399 Speaker 1: to us were the things that by default, now you're 455 00:20:06,400 --> 00:20:08,159 Speaker 1: just part of the family. Pick up your toys, right Like, 456 00:20:08,160 --> 00:20:10,480 Speaker 1: that's just something that you have to do. And that 457 00:20:10,560 --> 00:20:13,199 Speaker 1: all comes down to the individual family, right A task 458 00:20:13,400 --> 00:20:16,040 Speaker 1: or a chore for one family might be a paid 459 00:20:16,080 --> 00:20:18,280 Speaker 1: for a job in another family. It just depends on 460 00:20:18,320 --> 00:20:20,040 Speaker 1: what you want to focus on as a parent. Yeah, 461 00:20:20,080 --> 00:20:22,320 Speaker 1: I love that because then it makes it really simple 462 00:20:22,359 --> 00:20:23,680 Speaker 1: to ask your kid at the end of the day, 463 00:20:23,760 --> 00:20:25,879 Speaker 1: did you do your chores? And what jobs did you 464 00:20:25,920 --> 00:20:28,440 Speaker 1: accomplish today? And so you can really divide that up 465 00:20:28,720 --> 00:20:31,160 Speaker 1: in a meaningful way to kind of nail that home 466 00:20:31,200 --> 00:20:34,320 Speaker 1: for the kids. Just creating that divide in terminology is 467 00:20:34,359 --> 00:20:36,720 Speaker 1: so helpful, not just for the kids, but for how 468 00:20:36,760 --> 00:20:40,200 Speaker 1: you talk to them about, you know, what they're actually doing. Man. 469 00:20:40,240 --> 00:20:41,800 Speaker 1: You know, since it's been over a years since we've 470 00:20:41,840 --> 00:20:44,200 Speaker 1: tried to get Eavy on board with the whole get 471 00:20:44,200 --> 00:20:45,960 Speaker 1: doing your jobs and getting paid things, this is gonna 472 00:20:45,960 --> 00:20:48,760 Speaker 1: get me pumped to uh give it another go because 473 00:20:48,800 --> 00:20:51,520 Speaker 1: we got that Dave Ramsey Junior kit and we've got 474 00:20:51,520 --> 00:20:54,080 Speaker 1: the clear envelope system where what's cool about that is 475 00:20:54,080 --> 00:20:55,479 Speaker 1: they're clear and you can put the money in there 476 00:20:55,520 --> 00:20:57,680 Speaker 1: and they can see it. But uh, yeah, we haven't 477 00:20:57,720 --> 00:20:59,840 Speaker 1: really done that. In a minute, in a little bit, Matt, 478 00:20:59,840 --> 00:21:02,119 Speaker 1: I've we're gonna talk about, you know, the cash system 479 00:21:02,320 --> 00:21:04,320 Speaker 1: versus using There are some really cool apps out there 480 00:21:04,359 --> 00:21:07,679 Speaker 1: and now to help families and kids figure out this 481 00:21:07,720 --> 00:21:09,960 Speaker 1: money thing. And I just love that there are easy 482 00:21:10,000 --> 00:21:12,880 Speaker 1: systems that help kids function in the real world when 483 00:21:12,880 --> 00:21:17,679 Speaker 1: it comes to money. It's called fintech, yes, exactly financial technology. 484 00:21:17,960 --> 00:21:19,720 Speaker 1: But I remember back in the days when we didn't 485 00:21:19,720 --> 00:21:22,760 Speaker 1: have fintech, Matt, and we just had cash. Right, that's 486 00:21:22,760 --> 00:21:26,120 Speaker 1: just a plain old cash, cash, money yeah. And one 487 00:21:26,119 --> 00:21:28,080 Speaker 1: thing that my parents did that I really respect and 488 00:21:28,119 --> 00:21:30,240 Speaker 1: I want to use too when it comes to how 489 00:21:30,240 --> 00:21:33,399 Speaker 1: my kids spend money is giving a cap of an 490 00:21:33,400 --> 00:21:36,639 Speaker 1: amount that I'll spend for my kids on certain things 491 00:21:36,640 --> 00:21:39,840 Speaker 1: that our needs. Even because I remember distinctly when I 492 00:21:39,880 --> 00:21:41,960 Speaker 1: was a kid, I wanted the cool sneakers. I wanted 493 00:21:41,960 --> 00:21:45,000 Speaker 1: the Scottie Pippens shoes or whatever it was, and they 494 00:21:45,000 --> 00:21:48,639 Speaker 1: were so expensive, and those Jordan's. I don't think I 495 00:21:48,680 --> 00:21:50,080 Speaker 1: ever had a pair of George's, but I did have 496 00:21:50,160 --> 00:21:52,480 Speaker 1: one pair of Scottie Pippens and I didn't have Jordan's, 497 00:21:52,480 --> 00:21:54,480 Speaker 1: and they were pretty sick. I wasn't a sneaker head, 498 00:21:54,560 --> 00:21:56,760 Speaker 1: So I want to, like you want to bother you 499 00:21:56,760 --> 00:21:58,520 Speaker 1: know what I was into? Actually, I just I was 500 00:21:58,520 --> 00:22:01,520 Speaker 1: in the sunglasses, are you huh? You remember back in 501 00:22:01,520 --> 00:22:04,400 Speaker 1: the day how big Oakley's were, Like Oakley's were such 502 00:22:04,440 --> 00:22:07,000 Speaker 1: a big deal completely and so, like you, my parents 503 00:22:07,040 --> 00:22:09,480 Speaker 1: would cover basic clothing, right, like they're gonna pay for 504 00:22:09,520 --> 00:22:11,639 Speaker 1: my clothes. There's a little bit gray though, Like they 505 00:22:11,680 --> 00:22:13,439 Speaker 1: didn't set a hard cap, and so I could kind 506 00:22:13,440 --> 00:22:15,520 Speaker 1: of negotiate. I could say, hey, you know, I really 507 00:22:15,520 --> 00:22:17,520 Speaker 1: want the easily here you know that this is what 508 00:22:17,560 --> 00:22:20,680 Speaker 1: I would like, but sunglasses. I'm a kid. I don't 509 00:22:20,680 --> 00:22:22,800 Speaker 1: need sunglasses. And that was something that I had to 510 00:22:22,840 --> 00:22:26,640 Speaker 1: work for myself, and my parents were not gonna put 511 00:22:26,680 --> 00:22:29,760 Speaker 1: any of their money towards my Oakley I think they're 512 00:22:29,760 --> 00:22:32,240 Speaker 1: called I wraps, but they're just like this, I don't 513 00:22:32,280 --> 00:22:33,840 Speaker 1: know how to describe them, but they would like stick 514 00:22:33,840 --> 00:22:36,160 Speaker 1: to your face, real real tight. That's why you gotta 515 00:22:36,160 --> 00:22:40,800 Speaker 1: find the Folkleys, dude. But I was so into sunglasses, 516 00:22:40,880 --> 00:22:43,440 Speaker 1: specifically Oakley's. I was such a sucker. You wanted to 517 00:22:43,480 --> 00:22:46,159 Speaker 1: look like that cool summer lifeguard. Dude. That's totally true. Well, 518 00:22:46,200 --> 00:22:48,440 Speaker 1: one of my friends was a lifeguard and we would 519 00:22:48,440 --> 00:22:50,320 Speaker 1: go and and hang out with them at his pool 520 00:22:50,320 --> 00:22:52,040 Speaker 1: and he had a pair of those white I think 521 00:22:52,040 --> 00:22:54,920 Speaker 1: he had white Oakley I wraps back in the day. Dude, 522 00:22:54,920 --> 00:22:57,439 Speaker 1: those were so freaking awesome. Yeah, but I just could 523 00:22:57,440 --> 00:22:59,600 Speaker 1: remember my parents would set a cap on my shoes 524 00:22:59,640 --> 00:23:02,760 Speaker 1: off few dollars and so every good point. Yeah, so 525 00:23:02,840 --> 00:23:06,440 Speaker 1: every year, before before school would start, they would and 526 00:23:06,440 --> 00:23:08,520 Speaker 1: and and actually, honestly, now I look back and I'm like, 527 00:23:08,560 --> 00:23:10,159 Speaker 1: that was a lot. I mean right now, I mean 528 00:23:10,200 --> 00:23:11,800 Speaker 1: I can get a sweet pair of Chucks on sales 529 00:23:11,840 --> 00:23:13,920 Speaker 1: like twenty eight bucks, so fifty bucks seems like a lot, 530 00:23:14,240 --> 00:23:16,480 Speaker 1: but yeah, they were really cool to have that cap. 531 00:23:16,520 --> 00:23:19,000 Speaker 1: And anything over that that I wanted to spend was 532 00:23:19,119 --> 00:23:21,840 Speaker 1: money that I had to save up from birthdays or 533 00:23:21,960 --> 00:23:24,479 Speaker 1: Christmas and working for money on the side, so I 534 00:23:24,520 --> 00:23:27,440 Speaker 1: was incentivized to go moilan or or to find some 535 00:23:27,480 --> 00:23:30,560 Speaker 1: work if I really wanted the shoes that bad. And 536 00:23:30,600 --> 00:23:32,720 Speaker 1: occasionally I did and I got that one pair of 537 00:23:32,760 --> 00:23:35,760 Speaker 1: Scottie Pippins, and other times I settled for a cheaper 538 00:23:35,800 --> 00:23:38,119 Speaker 1: pair of sneakers because I didn't have the funds, so 539 00:23:38,119 --> 00:23:40,200 Speaker 1: I just had to roll with some lamer shoes. Plus, 540 00:23:40,240 --> 00:23:41,679 Speaker 1: even if you did have the money, you would have 541 00:23:41,680 --> 00:23:44,200 Speaker 1: had to decide what is the value of this money? 542 00:23:44,280 --> 00:23:46,920 Speaker 1: Is it worth these fancy shoes? And maybe it wouldn't 543 00:23:46,920 --> 00:23:48,840 Speaker 1: have been. And so after the break, we're gonna cover 544 00:23:48,880 --> 00:23:51,360 Speaker 1: some specific tactics to keep in mind as you're trying 545 00:23:51,359 --> 00:23:54,720 Speaker 1: to raise financially responsible children. And we're gonna cover one 546 00:23:54,800 --> 00:23:58,880 Speaker 1: more principle as well that is quite lofty. So we're 547 00:23:58,880 --> 00:24:09,280 Speaker 1: gonna get to that right after the break, all right, Matt, 548 00:24:09,320 --> 00:24:11,520 Speaker 1: Before we get to the tax plays to help our 549 00:24:11,600 --> 00:24:14,560 Speaker 1: kids learn these money lessons. Let's talk about one final principle, 550 00:24:14,640 --> 00:24:16,400 Speaker 1: which is that we really want our kids to learn 551 00:24:16,440 --> 00:24:20,800 Speaker 1: about the glorious thing that is passive income. And so 552 00:24:20,880 --> 00:24:23,639 Speaker 1: we want to incentivize our kids by adding to the 553 00:24:23,640 --> 00:24:26,520 Speaker 1: funds that they're willing to leave in savings. We want 554 00:24:26,520 --> 00:24:30,240 Speaker 1: to essentially be a bank that pays generous interest amounts 555 00:24:30,359 --> 00:24:32,680 Speaker 1: so that our kids are willing to leave money in 556 00:24:32,720 --> 00:24:35,199 Speaker 1: their savings accounts. And then as they get older, we 557 00:24:35,240 --> 00:24:38,680 Speaker 1: want to potentially even incentivize them to put money into 558 00:24:38,760 --> 00:24:40,920 Speaker 1: a retirement fund. And so if our kids get a 559 00:24:41,000 --> 00:24:43,720 Speaker 1: job when they're fifteen, sixteen, seventeen and they want to 560 00:24:43,720 --> 00:24:46,680 Speaker 1: put aside money for their retirement, after lots of discussions 561 00:24:46,680 --> 00:24:49,320 Speaker 1: about that, I'm sure I'm really excited about the fact 562 00:24:49,320 --> 00:24:51,960 Speaker 1: that I can boost their ability to grow their wealth 563 00:24:52,320 --> 00:24:55,000 Speaker 1: by matching their retirement fund contributions. That's that's something that 564 00:24:55,080 --> 00:24:57,840 Speaker 1: sounds awesome to me. Yeah, well, specifically, man, I've heard 565 00:24:57,880 --> 00:24:59,959 Speaker 1: of the four oh one k parent match. Not us 566 00:25:00,000 --> 00:25:02,320 Speaker 1: really even to retirement, but even if a kid saving 567 00:25:02,400 --> 00:25:05,679 Speaker 1: safe or a car, to match every dollar that the 568 00:25:05,800 --> 00:25:08,399 Speaker 1: kid puts toward the vehicle, you will match that. And 569 00:25:08,440 --> 00:25:11,840 Speaker 1: so essentially that if they set aside, says, well, now 570 00:25:11,880 --> 00:25:15,000 Speaker 1: they can afford something that's three grand. And obviously in 571 00:25:15,040 --> 00:25:17,040 Speaker 1: this case, right the idea is to drive home the 572 00:25:17,080 --> 00:25:19,520 Speaker 1: principle of hey, if there's a four O one K 573 00:25:19,680 --> 00:25:21,920 Speaker 1: with a match, you take it. Right when you get 574 00:25:21,920 --> 00:25:24,400 Speaker 1: that job out of school and they have an employer 575 00:25:24,440 --> 00:25:26,919 Speaker 1: match four own k where they're putting, oh, four percent 576 00:25:27,000 --> 00:25:29,880 Speaker 1: or six percent of your salary towards retirement, and they're 577 00:25:29,920 --> 00:25:32,600 Speaker 1: gonna match that, like, you take that match. That's free money. 578 00:25:32,920 --> 00:25:35,680 Speaker 1: It's just a way to teach that principle. And obviously 579 00:25:35,680 --> 00:25:37,600 Speaker 1: it's a little bit different right when when you're looking 580 00:25:37,640 --> 00:25:40,679 Speaker 1: at a vehicle versus retirement. But I love the idea 581 00:25:40,720 --> 00:25:42,840 Speaker 1: of sort of creating a game and finding a way 582 00:25:42,880 --> 00:25:45,119 Speaker 1: to make it fun. And it's something that I think 583 00:25:45,160 --> 00:25:47,520 Speaker 1: can be way more relatable when it's something that the 584 00:25:47,560 --> 00:25:50,320 Speaker 1: kids care about. Here and now, Yeah, really what you're 585 00:25:50,359 --> 00:25:53,560 Speaker 1: doing is you're incentivizing long term thinking, and that's a 586 00:25:53,680 --> 00:25:57,040 Speaker 1: really hard concept for a teenager to grasp, and so 587 00:25:57,520 --> 00:25:59,760 Speaker 1: you're gonna have to do a lot of talking about that, 588 00:26:00,160 --> 00:26:03,840 Speaker 1: really showing them through action, whether it's matching a car 589 00:26:03,880 --> 00:26:07,879 Speaker 1: purchase or matching contributions to something like a roth Ira. Obviously, 590 00:26:07,960 --> 00:26:11,000 Speaker 1: they'll thank you later because that's gonna be huge when 591 00:26:11,000 --> 00:26:13,000 Speaker 1: they're in their thirties and they look at their statement 592 00:26:13,040 --> 00:26:16,400 Speaker 1: and they're like, holy mackerel, that's insane, how much that's grown. 593 00:26:16,520 --> 00:26:17,800 Speaker 1: Mom and dad didn't tell me it was going to 594 00:26:17,840 --> 00:26:20,879 Speaker 1: be this good. But creating that long term mindset in 595 00:26:20,920 --> 00:26:23,200 Speaker 1: your kids, even if you don't see it taking root, 596 00:26:23,440 --> 00:26:26,359 Speaker 1: they're learning something while you're doing that. And so really 597 00:26:26,720 --> 00:26:29,879 Speaker 1: teaching passive income, although it's really hard, should definitely be 598 00:26:29,920 --> 00:26:32,200 Speaker 1: a priority. Well yeah, I mean not only two teenagers, 599 00:26:32,200 --> 00:26:34,840 Speaker 1: but even to adults to have that long term mental 600 00:26:35,080 --> 00:26:37,439 Speaker 1: thought process. One of our recent Money pro episodes we 601 00:26:37,480 --> 00:26:39,840 Speaker 1: had Grant on where he talked about how time does 602 00:26:39,880 --> 00:26:42,760 Speaker 1: not equal money, and his whole talk was about disrupting 603 00:26:42,800 --> 00:26:47,480 Speaker 1: that linear path of working and therefore you earn money, 604 00:26:47,520 --> 00:26:51,040 Speaker 1: which sounds a little contradictory to our very first statement 605 00:26:51,160 --> 00:26:53,840 Speaker 1: right where Okay, the way you get money is by working. 606 00:26:53,840 --> 00:26:55,680 Speaker 1: And so that's why that's why this is such like 607 00:26:55,720 --> 00:26:58,639 Speaker 1: an advanced principle. This is a really sort of lofty 608 00:26:58,800 --> 00:27:01,640 Speaker 1: goal that we're trying to to teach kids, and that's 609 00:27:01,640 --> 00:27:03,760 Speaker 1: why it's so important to start when they are kids, 610 00:27:03,760 --> 00:27:06,199 Speaker 1: because even as adults, we have a hard time wrapping 611 00:27:06,200 --> 00:27:08,240 Speaker 1: our head around the idea, Okay, well, how am I 612 00:27:08,280 --> 00:27:10,600 Speaker 1: going to make money if I'm not actually working? Well, 613 00:27:10,800 --> 00:27:13,200 Speaker 1: go back and listen to that episode with Grants Abatier. 614 00:27:13,600 --> 00:27:16,280 Speaker 1: Like we talked about how you have to focus on investing, 615 00:27:16,400 --> 00:27:19,199 Speaker 1: you have to focus on entrepreneurship. Right if you are 616 00:27:19,240 --> 00:27:21,840 Speaker 1: able to create a business that is making money for you, 617 00:27:21,880 --> 00:27:25,000 Speaker 1: where you're brokering other people's time and they're contributing and 618 00:27:25,040 --> 00:27:27,080 Speaker 1: they're earning money, but at the same time they're earning 619 00:27:27,119 --> 00:27:28,960 Speaker 1: you money, these are the ways that you need to 620 00:27:28,960 --> 00:27:33,040 Speaker 1: start thinking about work, not just in Okay, I will work, 621 00:27:33,240 --> 00:27:34,960 Speaker 1: I will punch the clock, and then I will receive 622 00:27:34,960 --> 00:27:38,200 Speaker 1: a paycheck. That's how most of us think about money. 623 00:27:38,200 --> 00:27:40,640 Speaker 1: That's how I think about money a lot of the time. 624 00:27:40,840 --> 00:27:43,040 Speaker 1: But over the course of the years, we're working towards 625 00:27:43,280 --> 00:27:45,760 Speaker 1: more of that passive income. But you gotta start thinking 626 00:27:45,800 --> 00:27:48,639 Speaker 1: about that now. All right, Matt, let's talk about some 627 00:27:48,680 --> 00:27:51,520 Speaker 1: of our favorite tactics to help our kids learn these 628 00:27:51,560 --> 00:27:54,439 Speaker 1: money lessons. And one big question that comes up from 629 00:27:54,440 --> 00:27:56,720 Speaker 1: folks right now is do we do a cash method 630 00:27:56,800 --> 00:27:58,919 Speaker 1: or do we teach our kids through kind of these 631 00:27:58,960 --> 00:28:02,480 Speaker 1: advanced fintech apps, And I think, honestly, it probably depends 632 00:28:02,480 --> 00:28:04,719 Speaker 1: on the stage that your kid is in. Cash can 633 00:28:04,720 --> 00:28:07,360 Speaker 1: be so much more tangible, especially if you've got youngsters. 634 00:28:07,880 --> 00:28:10,359 Speaker 1: But certain apps will, as our kids get older, be 635 00:28:10,520 --> 00:28:13,040 Speaker 1: more helpful with certain aspects of how they handle finances. 636 00:28:13,080 --> 00:28:15,840 Speaker 1: And so I think I mentioned a while ago that 637 00:28:16,000 --> 00:28:18,120 Speaker 1: when my daughter lost her teeth, you know, giving her 638 00:28:18,119 --> 00:28:20,240 Speaker 1: coins actually meant a lot more to her than having 639 00:28:20,240 --> 00:28:23,880 Speaker 1: a dollar bill. There's something about just having four yeah, 640 00:28:24,200 --> 00:28:26,760 Speaker 1: clink them around in your hands, yeah, And so to 641 00:28:27,240 --> 00:28:29,520 Speaker 1: seeing that that meant something to her and paying her 642 00:28:29,640 --> 00:28:32,320 Speaker 1: through that method, well, that was the most effective way 643 00:28:32,359 --> 00:28:34,160 Speaker 1: to do it. But as your kids get a little 644 00:28:34,160 --> 00:28:36,119 Speaker 1: bit older, and you also want them to learn how 645 00:28:36,160 --> 00:28:38,880 Speaker 1: to handle plastic because that's a part of our everyday 646 00:28:38,880 --> 00:28:40,800 Speaker 1: world now. And you want your kid to leave your 647 00:28:40,840 --> 00:28:43,760 Speaker 1: house not just knowing how to balance a checkbook, because 648 00:28:43,840 --> 00:28:46,280 Speaker 1: checks are going away folks like that. That's not gonna 649 00:28:46,280 --> 00:28:48,400 Speaker 1: be an important skill at some point. So you want 650 00:28:48,400 --> 00:28:50,280 Speaker 1: them to know how to handle a plastic card in 651 00:28:50,280 --> 00:28:52,720 Speaker 1: their wallet, and there are apps that can help them 652 00:28:52,720 --> 00:28:55,040 Speaker 1: do that. There's one that I like called green Light, 653 00:28:55,400 --> 00:28:58,240 Speaker 1: and it costs five dollars a month, which might sound expensive, 654 00:28:58,440 --> 00:29:01,360 Speaker 1: but honestly, it's a small drop in the bucket if 655 00:29:01,400 --> 00:29:04,840 Speaker 1: you're thinking about helping your kids handle their finance as well. 656 00:29:04,880 --> 00:29:07,520 Speaker 1: And there's another one that's similar called fam Zoo, and 657 00:29:07,560 --> 00:29:09,480 Speaker 1: so i'd encourage you to look at either one of 658 00:29:09,480 --> 00:29:12,360 Speaker 1: those if you have older kids and you really want 659 00:29:12,400 --> 00:29:14,760 Speaker 1: them to learn how to handle plastic, well, it's kind 660 00:29:14,760 --> 00:29:16,400 Speaker 1: of like learning how to ride a bike with the 661 00:29:16,440 --> 00:29:19,520 Speaker 1: training wheels because you're in control. And you can also 662 00:29:19,560 --> 00:29:22,200 Speaker 1: incentivize them to save more of their money by offering 663 00:29:22,200 --> 00:29:24,280 Speaker 1: a higher interest rate, like we talked about earlier. And 664 00:29:24,480 --> 00:29:26,840 Speaker 1: I love that that you can do it digitally because 665 00:29:27,240 --> 00:29:29,360 Speaker 1: your kids, if they've got a smartphone and they're rolling 666 00:29:29,400 --> 00:29:31,760 Speaker 1: with apps and they want a credit card or a 667 00:29:31,760 --> 00:29:34,280 Speaker 1: debit card, I mean something like green Light or fam 668 00:29:34,360 --> 00:29:37,080 Speaker 1: Zoo is the perfect option I think for for older kids, 669 00:29:37,160 --> 00:29:40,400 Speaker 1: especially as you're seeking to teach them how to handle 670 00:29:40,440 --> 00:29:42,120 Speaker 1: their money well as they go out on their own 671 00:29:42,120 --> 00:29:45,320 Speaker 1: at some point. Another sort of broad tactic that we 672 00:29:45,440 --> 00:29:47,960 Speaker 1: can keep in mind is to model the behavior that 673 00:29:48,000 --> 00:29:49,960 Speaker 1: we want our kids to learn. I was listening to 674 00:29:50,000 --> 00:29:52,680 Speaker 1: an interview with Jail Collins, who's just this brilliant sort 675 00:29:52,680 --> 00:29:56,200 Speaker 1: of mastermind investor, and he was talking about how he 676 00:29:56,280 --> 00:29:58,680 Speaker 1: regretted that he lectured too much. He's got a daughter, 677 00:29:59,120 --> 00:30:01,400 Speaker 1: and he felt that he he was just harping on 678 00:30:01,480 --> 00:30:04,480 Speaker 1: money and hitting those sort of hard money lessons way 679 00:30:04,480 --> 00:30:07,880 Speaker 1: too young, way too often with his daughter, which hit 680 00:30:07,920 --> 00:30:10,800 Speaker 1: a little close to home, considering that's when I feel 681 00:30:10,800 --> 00:30:13,200 Speaker 1: like that, you know, we've already done with our oldest daughter. 682 00:30:13,720 --> 00:30:16,080 Speaker 1: And you know, what he realized was that, man, I 683 00:30:16,120 --> 00:30:18,800 Speaker 1: was just lecturing way too much and instead of what 684 00:30:18,880 --> 00:30:20,560 Speaker 1: it turns out that she needed to see was she 685 00:30:20,600 --> 00:30:22,560 Speaker 1: needed to see it lived out. And he was actually 686 00:30:22,600 --> 00:30:26,440 Speaker 1: able to see now like twenty five years later, that 687 00:30:26,520 --> 00:30:28,880 Speaker 1: his daughter was able to learn that from his wife, 688 00:30:29,160 --> 00:30:32,080 Speaker 1: Like his wife is super frugal and led by example, 689 00:30:32,400 --> 00:30:34,680 Speaker 1: and his daughter was able to learn that from her. 690 00:30:35,040 --> 00:30:37,960 Speaker 1: And so in that case, it wasn't about, you know, 691 00:30:38,000 --> 00:30:40,480 Speaker 1: the lecture, the big talk and this is the lesson 692 00:30:40,480 --> 00:30:41,840 Speaker 1: that I'm going to teach you, but in fact it 693 00:30:41,880 --> 00:30:44,840 Speaker 1: was more of the day to day. Obviously, all kids 694 00:30:44,880 --> 00:30:48,200 Speaker 1: are different, right, like some kids will learn more readily 695 00:30:48,360 --> 00:30:50,800 Speaker 1: from clear spoken word, like here is a lesson that 696 00:30:50,800 --> 00:30:53,920 Speaker 1: you're gonna learn now, hear me. But for a lot 697 00:30:53,960 --> 00:30:55,840 Speaker 1: of other kids, and I would probably even say most kids, 698 00:30:55,960 --> 00:30:58,440 Speaker 1: they might learn much better from seeing it lived out 699 00:30:58,480 --> 00:31:00,840 Speaker 1: in their parents lives. Yeah, I think if we take 700 00:31:00,880 --> 00:31:02,840 Speaker 1: the do as I say, not as I do approach, 701 00:31:03,120 --> 00:31:05,000 Speaker 1: it's not gonna work out very well. And you know 702 00:31:05,080 --> 00:31:06,680 Speaker 1: that too. Like if you go to work with a 703 00:31:06,720 --> 00:31:09,000 Speaker 1: boss who kind of has that approach, they say, do 704 00:31:09,400 --> 00:31:11,280 Speaker 1: what I tell you to do, but they don't take 705 00:31:11,280 --> 00:31:14,400 Speaker 1: the same prescription that they're doubling out. You don't really 706 00:31:14,440 --> 00:31:17,000 Speaker 1: want to follow in their footsteps, and your kids will 707 00:31:17,040 --> 00:31:18,960 Speaker 1: be the same. And so practicing some of these things 708 00:31:19,120 --> 00:31:21,080 Speaker 1: in your own life will be readily apparent to your 709 00:31:21,120 --> 00:31:23,440 Speaker 1: kids as they try to emulate you and Matt, like 710 00:31:23,600 --> 00:31:26,240 Speaker 1: as our kids try to emulate us, the way that 711 00:31:26,280 --> 00:31:28,640 Speaker 1: we act in front of them is going to be crucial, 712 00:31:28,680 --> 00:31:31,480 Speaker 1: and honestly, a huge part of this is also admitting 713 00:31:31,520 --> 00:31:34,480 Speaker 1: our mistakes, being real in front of them, and being 714 00:31:34,520 --> 00:31:37,120 Speaker 1: able to have an open and honest conversation about the 715 00:31:37,200 --> 00:31:40,680 Speaker 1: times where we didn't live up to our ideals. There's 716 00:31:40,720 --> 00:31:44,760 Speaker 1: really something about a parent choosing to be vulnerable about 717 00:31:44,800 --> 00:31:48,400 Speaker 1: their mistakes that really resonates with a kid and has 718 00:31:48,520 --> 00:31:51,600 Speaker 1: long lasting impact. I mean, I still remember those conversations 719 00:31:51,680 --> 00:31:54,080 Speaker 1: with my parents when they were up front about a 720 00:31:54,120 --> 00:31:56,400 Speaker 1: mistake or something that hadn't gone the way they had planned, 721 00:31:56,880 --> 00:31:59,719 Speaker 1: and just the fact that they would choose to confide 722 00:31:59,760 --> 00:32:03,000 Speaker 1: in me as a kid was meaningful. And the same 723 00:32:03,040 --> 00:32:06,160 Speaker 1: thing happens for us as parents. When we assume that 724 00:32:06,160 --> 00:32:08,840 Speaker 1: our kids can handle that sort of information and we 725 00:32:08,920 --> 00:32:11,520 Speaker 1: lovingly share it with them, there's something that connects in 726 00:32:11,520 --> 00:32:14,239 Speaker 1: their mind in a way that lectures and even just 727 00:32:14,360 --> 00:32:18,680 Speaker 1: modeling it perfectly just doesn't do. Kids are freaking awesome 728 00:32:19,040 --> 00:32:21,280 Speaker 1: and and I mean naturally our kids that they tend 729 00:32:21,360 --> 00:32:24,080 Speaker 1: to act in the ways that we will act, and 730 00:32:24,120 --> 00:32:26,640 Speaker 1: so if we're generous, they will tend to be generous 731 00:32:26,680 --> 00:32:28,680 Speaker 1: as well. And like I mentioned earlier, I like our 732 00:32:28,760 --> 00:32:31,960 Speaker 1: kids don't always turn out like us exactly. They form 733 00:32:32,040 --> 00:32:34,720 Speaker 1: their own lives, but their default is to act in 734 00:32:34,760 --> 00:32:37,440 Speaker 1: a similar way as us their parents. So make sure 735 00:32:37,480 --> 00:32:39,400 Speaker 1: that you are living it out as well. And like 736 00:32:39,480 --> 00:32:41,880 Speaker 1: we mentioned earlier, start early with your kids. Kids are 737 00:32:41,920 --> 00:32:45,280 Speaker 1: so impressionable, especially from the ages of three to seven, 738 00:32:45,680 --> 00:32:48,280 Speaker 1: And like Matt just mentioned, doing the lecture at age three, 739 00:32:48,360 --> 00:32:50,320 Speaker 1: four or five it's not going to work out so well, 740 00:32:50,640 --> 00:32:53,120 Speaker 1: But making sure not to avoid talking about money in 741 00:32:53,160 --> 00:32:55,400 Speaker 1: those years, because there are a time where kids are 742 00:32:55,440 --> 00:32:58,400 Speaker 1: forming their biggest opinions about so many things as they 743 00:32:58,400 --> 00:33:00,360 Speaker 1: see us live and as they see us talk, and 744 00:33:00,400 --> 00:33:03,240 Speaker 1: so making sure that those conversations and those little lessons 745 00:33:03,240 --> 00:33:06,480 Speaker 1: are being started early. That's a huge tactic to employ 746 00:33:06,600 --> 00:33:09,000 Speaker 1: to start your kids on the right money path. And 747 00:33:09,000 --> 00:33:11,840 Speaker 1: then finally make sure that you're talking about money. Often 748 00:33:12,320 --> 00:33:14,680 Speaker 1: bringing up the subject kind of takes away from that taboo. 749 00:33:14,720 --> 00:33:16,680 Speaker 1: We did an entire episode where we talked about you 750 00:33:16,680 --> 00:33:19,000 Speaker 1: should be talking about money. You should be talking about 751 00:33:19,000 --> 00:33:22,160 Speaker 1: your personal finances, and so maybe say when you're planning 752 00:33:22,160 --> 00:33:23,760 Speaker 1: a trip, you can talk that through with them, you 753 00:33:23,760 --> 00:33:26,240 Speaker 1: can talk about the expenses. The goal is to have 754 00:33:26,360 --> 00:33:30,280 Speaker 1: healthy conversations surrounding money. A lot of us grew up 755 00:33:30,320 --> 00:33:32,960 Speaker 1: in households where the only time money was talked about 756 00:33:33,120 --> 00:33:35,920 Speaker 1: was because there were fights going on, but because money 757 00:33:35,960 --> 00:33:38,520 Speaker 1: was tight or there are disagreements. You don't want the 758 00:33:38,600 --> 00:33:40,800 Speaker 1: only time that money is ever discussed to be a 759 00:33:40,840 --> 00:33:44,240 Speaker 1: stressful time. You have control over that. We have control 760 00:33:44,240 --> 00:33:46,440 Speaker 1: over that as parents, and so that's why we talk 761 00:33:46,480 --> 00:33:48,840 Speaker 1: about money that's why we enjoy it. We think it's important. 762 00:33:49,040 --> 00:33:51,520 Speaker 1: But we know especially that it's important for our kids 763 00:33:51,560 --> 00:33:53,720 Speaker 1: to hear us talking about money in a healthy way 764 00:33:53,760 --> 00:33:56,200 Speaker 1: and in a way that's encouraging to each other and 765 00:33:56,200 --> 00:33:58,440 Speaker 1: to our our families. So let's make sure that we're 766 00:33:58,480 --> 00:34:00,280 Speaker 1: all trying to do that in our lives. Regul early. 767 00:34:00,600 --> 00:34:03,680 Speaker 1: You gotta know that there's sometimes that there are difficult 768 00:34:03,760 --> 00:34:06,240 Speaker 1: and sometimes heated discussions that need to happen about money. Yeah, 769 00:34:06,280 --> 00:34:08,640 Speaker 1: sometimes it's just disagreements, right, Like, it's not a huge deal, 770 00:34:08,840 --> 00:34:12,280 Speaker 1: But those discussions should really take place behind closed doors 771 00:34:12,360 --> 00:34:15,560 Speaker 1: where your kids hopefully cannot hear you, because those do 772 00:34:15,880 --> 00:34:18,680 Speaker 1: leave a lasting impression. So trying to avoid those situations 773 00:34:18,680 --> 00:34:22,200 Speaker 1: where they're mega influenced by arguments about money is a 774 00:34:22,200 --> 00:34:25,400 Speaker 1: good idea. It's okay to hear parents disagree or have 775 00:34:25,440 --> 00:34:29,000 Speaker 1: an alternative take, but heated argument is is something different 776 00:34:29,040 --> 00:34:32,400 Speaker 1: and can create long lasting negative connotations with money. You 777 00:34:32,400 --> 00:34:35,560 Speaker 1: don't want that knockdown, drag out fight, right right, Yeah, 778 00:34:35,760 --> 00:34:38,880 Speaker 1: so a dinner table discussion great place for for money. 779 00:34:39,040 --> 00:34:42,560 Speaker 1: Or Emily, I want those sneakers now she refuses to 780 00:34:42,560 --> 00:34:44,759 Speaker 1: buy me those Jordans. I want it's really only the 781 00:34:44,800 --> 00:34:47,879 Speaker 1: Scotties for you, Joel. All right, Matt, let's get back 782 00:34:47,880 --> 00:34:51,360 Speaker 1: to the beer we had, Peanut Brother by Great Notion Brewing. 783 00:34:51,960 --> 00:34:53,840 Speaker 1: I do love the name of this beer, Peanut Brother. 784 00:34:54,960 --> 00:34:58,600 Speaker 1: It's got like this sort of amish looking art block 785 00:34:58,680 --> 00:35:00,960 Speaker 1: print on the on the can, and the guys on 786 00:35:01,000 --> 00:35:03,480 Speaker 1: the can have these super awesome long beards just like 787 00:35:03,520 --> 00:35:05,720 Speaker 1: you find in Portland. And this is a beer from Portland, 788 00:35:06,040 --> 00:35:09,640 Speaker 1: so uh, and the Portland mixed with Pennsylvania like almost 789 00:35:09,680 --> 00:35:12,040 Speaker 1: kind of right right in a top hat too to 790 00:35:12,120 --> 00:35:15,000 Speaker 1: boot right. Nicely done. And Matt, the word I used 791 00:35:15,040 --> 00:35:18,480 Speaker 1: to describe this week's beer was Reese's because this is 792 00:35:18,480 --> 00:35:21,200 Speaker 1: a peanut butter chocolate stout. Well, my question for you 793 00:35:21,280 --> 00:35:24,080 Speaker 1: is that you said this is a powerful beer. Why powerful? 794 00:35:24,200 --> 00:35:27,200 Speaker 1: Did you have some events as a child where you 795 00:35:27,320 --> 00:35:33,000 Speaker 1: thought Reese's peanut butter cups them candies is powerful? You 796 00:35:33,040 --> 00:35:34,759 Speaker 1: know it's funny. I'm not even a huge fan of 797 00:35:34,800 --> 00:35:38,160 Speaker 1: Reese's peanut butter cups. I know what is wrong with you? Dude? 798 00:35:38,160 --> 00:35:40,440 Speaker 1: That is the best peanut butter, peanut butter inside of 799 00:35:40,440 --> 00:35:42,560 Speaker 1: a Reese's peanut butter cup. Somehow it is like this 800 00:35:42,719 --> 00:35:45,080 Speaker 1: magical peanut butter. It's that's the best. I don't want 801 00:35:45,120 --> 00:35:46,520 Speaker 1: to get into a fight right now, but I will. 802 00:35:46,640 --> 00:35:49,280 Speaker 1: I will if we have to, I'll take you down. 803 00:35:48,600 --> 00:35:51,839 Speaker 1: And you know that. But this beer, man is so good. 804 00:35:51,840 --> 00:35:54,360 Speaker 1: There's something really awesome about a peanut butter chocolate stout 805 00:35:54,360 --> 00:35:56,000 Speaker 1: to me. I don't know, Maybe I need to eat 806 00:35:56,040 --> 00:35:58,399 Speaker 1: some more Reese's, maybe maybe I'll feel differently about him now. 807 00:35:58,640 --> 00:36:01,400 Speaker 1: But this beer was really be good. Totally tasted like 808 00:36:01,440 --> 00:36:04,600 Speaker 1: a Reese's, but for me way better. Yeah. With it 809 00:36:04,680 --> 00:36:07,000 Speaker 1: being a milk stout, was a little creamier, a little smoother, 810 00:36:07,120 --> 00:36:11,360 Speaker 1: It had that lactose and my word, was refreshing. And 811 00:36:11,400 --> 00:36:13,960 Speaker 1: that's because it's sort of felt like a refreshing glass 812 00:36:13,960 --> 00:36:16,440 Speaker 1: of milk with a little bit of peanut butter going 813 00:36:16,480 --> 00:36:18,600 Speaker 1: on in it. A lot of times like peanut butter 814 00:36:18,640 --> 00:36:23,360 Speaker 1: stouts are exactly like they sound, thick and chunky, like 815 00:36:23,400 --> 00:36:25,759 Speaker 1: there's not actual chunks of anything right in the beer, 816 00:36:25,800 --> 00:36:28,879 Speaker 1: but they're pretty thick and heavy. This beer drink really light, 817 00:36:29,000 --> 00:36:31,800 Speaker 1: really refreshing. It's sort of like a cold glass of milk, 818 00:36:32,160 --> 00:36:33,759 Speaker 1: but maybe with a little bit of Rees's peanut butter 819 00:36:33,800 --> 00:36:35,920 Speaker 1: cup on the side. I'm partial to a glass of milk, 820 00:36:35,960 --> 00:36:37,520 Speaker 1: and that's probably why I like this beer way more 821 00:36:37,800 --> 00:36:40,440 Speaker 1: than I like Reese's peanut butter cups. All right, Joel's 822 00:36:40,520 --> 00:36:43,200 Speaker 1: time now for our final thoughts. All right, Matt, first 823 00:36:43,200 --> 00:36:46,120 Speaker 1: final thought we have to share is that Emily and 824 00:36:46,160 --> 00:36:48,040 Speaker 1: I are having a baby. Yeah. I didn't know if 825 00:36:48,080 --> 00:36:49,799 Speaker 1: you're gonna share with folks, man, you're kind of wait 826 00:36:49,880 --> 00:36:51,480 Speaker 1: until the end a little bit. Yeah, I wasn't sure 827 00:36:51,480 --> 00:36:54,040 Speaker 1: a wind to drop the news. But we're pregnant with 828 00:36:54,080 --> 00:36:56,919 Speaker 1: baby number three. So yeah, we're really excited. We've gone 829 00:36:56,920 --> 00:36:59,279 Speaker 1: in seeing the ultrasound we got saw that heartbeat and 830 00:36:59,320 --> 00:37:02,640 Speaker 1: super fast and uh, that's awesome, man, it's just excited. Man. 831 00:37:02,680 --> 00:37:04,600 Speaker 1: It's another kid to to love on, to be a 832 00:37:04,640 --> 00:37:07,000 Speaker 1: part of our family, and also to teach about money. Right, 833 00:37:07,040 --> 00:37:10,440 Speaker 1: that's right. Yeah, that's awesome and congrats, thanks buddy. So 834 00:37:10,480 --> 00:37:12,719 Speaker 1: we'll move on. And the first principle that we want 835 00:37:12,719 --> 00:37:14,600 Speaker 1: to teach the kids that we bring into this world, 836 00:37:14,680 --> 00:37:17,160 Speaker 1: we want to we want to teach them the value 837 00:37:17,280 --> 00:37:20,120 Speaker 1: of money. It's tough out there for kids. Most kids 838 00:37:20,200 --> 00:37:22,839 Speaker 1: don't learn how to handle their personal finances very well. 839 00:37:23,200 --> 00:37:25,400 Speaker 1: We went over the fact that they're they're they're just 840 00:37:25,520 --> 00:37:28,680 Speaker 1: isn't much education to be had in the public school system, 841 00:37:28,880 --> 00:37:31,480 Speaker 1: and so that's on us to teach our kids that 842 00:37:31,520 --> 00:37:35,640 Speaker 1: they get money typically and almost always through working for it, 843 00:37:36,200 --> 00:37:39,840 Speaker 1: and arguably just as important is giving. We want to 844 00:37:39,880 --> 00:37:43,560 Speaker 1: teach our kids to have generous hearts and to be compassionate. 845 00:37:43,960 --> 00:37:47,280 Speaker 1: It's not focus on just earning and amassing just every 846 00:37:47,280 --> 00:37:50,320 Speaker 1: single dollar that they can. Yeah, man money and everything. 847 00:37:50,520 --> 00:37:53,560 Speaker 1: So and also it's important to help our kids distinguish 848 00:37:53,640 --> 00:37:57,080 Speaker 1: between doing work and getting paid for it and just 849 00:37:57,120 --> 00:37:58,759 Speaker 1: the chores that they have to complete for being a 850 00:37:58,800 --> 00:38:01,320 Speaker 1: part of the family. And the last principle that we 851 00:38:01,400 --> 00:38:04,480 Speaker 1: focused on today is to teach our kids about passive income. 852 00:38:04,520 --> 00:38:06,520 Speaker 1: This is gonna be a little bit trickier, especially for 853 00:38:06,680 --> 00:38:08,840 Speaker 1: younger kids, but as our kids get older, we're gonna 854 00:38:08,880 --> 00:38:12,280 Speaker 1: find ways to teach them the principles of compounding interest, 855 00:38:12,400 --> 00:38:14,239 Speaker 1: of finding ways to make your money work for you, 856 00:38:14,400 --> 00:38:16,640 Speaker 1: and not just investing, but teaching our kids the ways 857 00:38:16,719 --> 00:38:20,480 Speaker 1: of entrepreneurship. We want to incentivize that long term thinking, 858 00:38:20,880 --> 00:38:22,840 Speaker 1: and then you really want to model that behavior for 859 00:38:22,880 --> 00:38:24,960 Speaker 1: your kids. It's so important for them to see you 860 00:38:25,120 --> 00:38:28,040 Speaker 1: living out what you believe that's more important than any 861 00:38:28,120 --> 00:38:30,759 Speaker 1: lecture that you'll ever give is the way you live 862 00:38:30,960 --> 00:38:32,960 Speaker 1: this out in front of them. But at the same time, 863 00:38:33,000 --> 00:38:35,399 Speaker 1: you do have to have those conversations, and usually it's 864 00:38:35,400 --> 00:38:38,200 Speaker 1: gonna be small conversations here and there. They're gonna be 865 00:38:38,239 --> 00:38:41,680 Speaker 1: more interspersed into your daily life as opposed to sit 866 00:38:41,719 --> 00:38:44,800 Speaker 1: down on the couch long term, long form discussions. Teaching 867 00:38:44,800 --> 00:38:48,120 Speaker 1: your kids about money isn't necessarily easy. We're not trying 868 00:38:48,120 --> 00:38:50,760 Speaker 1: to make it sound like that, but it is important 869 00:38:50,840 --> 00:38:53,440 Speaker 1: and hopefully you can implement some of these principles into 870 00:38:53,560 --> 00:38:55,719 Speaker 1: your family's life to make sure your kids have just 871 00:38:55,840 --> 00:38:58,360 Speaker 1: a little bit better of a grasp on personal finances 872 00:38:58,400 --> 00:39:00,920 Speaker 1: before they leave the nest. That's right, man. Going back 873 00:39:00,920 --> 00:39:02,360 Speaker 1: to the beginning of the show, we talked about how 874 00:39:02,440 --> 00:39:05,680 Speaker 1: schools are starting to implement this right. However, that's not guaranteed, 875 00:39:05,760 --> 00:39:07,200 Speaker 1: and so much of this they need to learn from 876 00:39:07,280 --> 00:39:09,520 Speaker 1: us as parents, So now is the time to start. 877 00:39:10,160 --> 00:39:12,239 Speaker 1: So man, that's gonna be it for today. Thank you 878 00:39:12,280 --> 00:39:14,400 Speaker 1: everyone for listening to the show. We really appreciate it. 879 00:39:14,480 --> 00:39:16,440 Speaker 1: You can find us on the web at how to 880 00:39:16,560 --> 00:39:19,239 Speaker 1: money dot com. There we'll have our show notes up 881 00:39:19,680 --> 00:39:21,440 Speaker 1: and that's right. If you like this show, if you 882 00:39:21,520 --> 00:39:24,480 Speaker 1: found it helpful, we greatly appreciate it. If you'd leave 883 00:39:24,480 --> 00:39:27,239 Speaker 1: a review on Apple Podcasts that helps us get the 884 00:39:27,280 --> 00:39:30,359 Speaker 1: word out about the show to other personal finance enthusiasts 885 00:39:30,640 --> 00:39:33,160 Speaker 1: and other parents that want to help teach their kids 886 00:39:33,160 --> 00:39:35,520 Speaker 1: how to handle money well. And don't forget to hit 887 00:39:35,520 --> 00:39:38,319 Speaker 1: the subscribe button while you're there. That's right, Papa Joel. 888 00:39:38,360 --> 00:39:41,439 Speaker 1: So until next time, Best Friends Out, Best Friends Out 889 00:39:41,480 --> 00:39:41,640 Speaker 1: Man