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Speaker 1: Welcome to How the Money. I'm Joel and I and

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Speaker 1: Matt and today we're talking raising financially savvy kids with

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Speaker 1: Liz Frasier. So longtime listeners will know that between the

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Speaker 1: two of us, Joe and I have a total of

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Speaker 1: seven kids, and so we worked to ensure that our

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Speaker 1: topics here on the show relate to all of our listeners,

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Speaker 1: not just those who have kids. But occasionally we do

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Speaker 1: dive deep on a particular topic, and we're definitely gonna

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Speaker 1: do that today. We are joined by Liz Frasier, who

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Speaker 1: is a fee only certified financial planner and she is

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Speaker 1: also the author of Beyond Piggy Banks and Lemonade Stands

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Speaker 1: How to Teach young kids about Finance uh And to

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Speaker 1: get specific, it was when Liz was pregnant with her

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Speaker 1: first of three children that she was setting up a

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Speaker 1: five accounts she's preparing her will. That is when everything

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Speaker 1: clicked for her. That's is when she realized that she

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Speaker 1: wanted to be a financial planner because like so many parents,

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Speaker 1: she realized the overwhelming need to make sure her family

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Speaker 1: was financially prepared and raising children who are equipped with

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Speaker 1: financial knowledge is an important part of that role. As

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Speaker 1: a parent, and so that's what we're gonna talk about today. So,

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Speaker 1: Liz Frasier, thank you for joining us. Oh, thanks so

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Speaker 1: much for having me. I'm so glad that you guys

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Speaker 1: are focusing on this for this show. Yes, well, and

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Speaker 1: you're the right person to have, Liz. So we've got

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Speaker 1: a ton of questions for you on how to make

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Speaker 1: sure as parents were doing the right thing and making

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Speaker 1: sure our kids grow up with some semblance of money

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Speaker 1: knowledge because so many kids don't. But our first question

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Speaker 1: for everybody that comes on the show is we, as

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Speaker 1: our listeners know Matt and I, we like to drink

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Speaker 1: a beer on every episode. We like to splurge on tasty,

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Speaker 1: expensive craft beer, even sometimes while saving an investing well

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Speaker 1: for the future. So I want to know for you,

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Speaker 1: what's your splurage, what's your craft beer equivalent? Oh gosh,

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Speaker 1: I love the craft year One. Um, you know, I

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Speaker 1: have to say mine is um organizational materials, you know,

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Speaker 1: organizing things for the house. And it's because I am

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Speaker 1: completely deficient in that area. So I come home with

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Speaker 1: bags and boxes and baskets and filing cabinets and all

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Speaker 1: kinds of things to get me more organized because I

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Speaker 1: am just sadly unorganized. I'm looking right now of a

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Speaker 1: basket that actually is just holding baskets. And every time

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Speaker 1: I leave the house, my husband, yes, my husband asks

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Speaker 1: please don't come home with basket. So that is my

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Speaker 1: that's my sad splurge. Do they have like bonus credit

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Speaker 1: cards for work credit cards for the container store? So

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Speaker 1: I feel like maybe you could get some serious cash back, right,

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Speaker 1: I could probably buy them out at this point, I

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Speaker 1: could own the container store. I love it. Liz. Let's

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Speaker 1: let's let's live into the money talk here. Thank you

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Speaker 1: for sharing all that. By the way, we want to

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Speaker 1: know about your history with money. Did your parents talk

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Speaker 1: about money well as as you were growing up? You know,

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Speaker 1: when you look back, uh to your childhood, what does

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Speaker 1: your financial education look like. Well, it's funny, I had

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Speaker 1: a really unique experience of finance as a kid because

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Speaker 1: my mom is a financial planner. So my mom became

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Speaker 1: a financial planner gosh in the eighties, So you know,

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Speaker 1: I was a child when she started her business. And

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Speaker 1: you know, I have to say, I don't people have

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Speaker 1: asked me before a while your mom was financial planner,

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Speaker 1: you know, she must have taught you so much about finance,

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Speaker 1: and she did. I would hear her talking a lot

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Speaker 1: about finance, and you know, it was something that was

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Speaker 1: definitely a topic in our house. But I think what

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Speaker 1: what really sticks out to me from my childhood experiences

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Speaker 1: with the money, it's just that we talked about it.

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Speaker 1: You know, this was not something that was I never

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Speaker 1: grew up thinking that there was something scary or intimidating

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Speaker 1: about money. It was just a regular conversation in our household.

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Speaker 1: So there was never a specific lesson that I learned

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Speaker 1: or specific you know, um thing that I can remember.

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Speaker 1: I just know that it was part of the conversation,

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Speaker 1: and I think that's so valuable. Yeah, that seems to

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Speaker 1: be one of the things that most kids don't grow

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Speaker 1: up with that right where money has talked about, usually

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Speaker 1: it's hidden or usually they hear arguments from their parents

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Speaker 1: like that's how they're introduced to money. They're like, oh,

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Speaker 1: money is a stressful thing. Oh money makes people fight.

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Speaker 1: So yeah, I guess would you say that we should

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Speaker 1: be having these conversations at the dinner table more often?

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Speaker 1: And if so, do you have any tips when it

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Speaker 1: comes to talking about getting granular about personal finance, Like

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Speaker 1: should you be like talking about your net worth with

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Speaker 1: your kindergarten or how do you kind of start those conversations.

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Speaker 1: I mean, my kindergarten. Everybody's kid is different. My kindergarteners

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Speaker 1: far less advanced financially than my daughter was when she

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Speaker 1: was in kindergarten, so he would not know what a

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Speaker 1: net worth is. You know, I'll tell you I think

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Speaker 1: that when it comes to talking about money, I want

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Speaker 1: parents to look at it as if the same conversation

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Speaker 1: that we have around nutrition or teamwork or kindness. You know,

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Speaker 1: none of us really are are perfect with these topics,

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Speaker 1: and we're not sitting down and having really specific, you know,

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Speaker 1: PowerPoint type lessons with our kids, were just incorporating it

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Speaker 1: in their daily lives. So, you know, I want parents

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Speaker 1: to kind of think about talking financially along those same

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Speaker 1: lines with their kids. So when it comes to dinner conversations,

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Speaker 1: you know, I think it's okay just to say, hey,

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Speaker 1: is there anything that you want to save up for

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Speaker 1: with your your piggy bank money that you have in

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Speaker 1: your savee jar or our parents can also talk about

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Speaker 1: successes that they've had. You know, it's okay for parents

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Speaker 1: to talk about money, from their own, um, personal experience.

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Speaker 1: So maybe it's you know, maybe it's at the store

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Speaker 1: and you say, well, god, I really want that new code.

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Speaker 1: But you know what, I spend a lot of money

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Speaker 1: on shoes last week, so I think I'm going to

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Speaker 1: prioritize that and not spend money on this or the opposite.

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Speaker 1: I think I'm going to buy this coat today. But

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Speaker 1: you know what that means that I can't spend money

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Speaker 1: on shoes next week. But that's okay, because I'd rather

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Speaker 1: have this coat. But it's just things like that, just

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Speaker 1: kind of incorporating it into the conversation with kids, you know,

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Speaker 1: talking to them about um, even things that don't have

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Speaker 1: to do with money, but that are the foundation of

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Speaker 1: good money management, which is priorities and needs versus wants.

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Speaker 1: You know, those are the two really the building blocks

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Speaker 1: for understanding money management and being responsible. So that's something

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Speaker 1: that we started with our kids really young. We talked

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Speaker 1: to them about needs versus wants, you know, and we

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Speaker 1: would make it fun with that for them. Kids love

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Speaker 1: answering questions, you know that are kind of weird and random,

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Speaker 1: and so we would say, you know, is this considered?

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Speaker 1: What is ice cream? Is? This a need or want,

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Speaker 1: you know, and of course they were like, well that's

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Speaker 1: a need. Uh. But you know, we'd have fun conversations

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Speaker 1: with them and talk to them about how needs always

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Speaker 1: come first because you will die without needs and once

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Speaker 1: they're great, but they come after needs. And then you know,

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Speaker 1: even even further with that, we talk about our wants

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Speaker 1: and you know, we would make a list and we'd say, okay,

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Speaker 1: let's I would list out ten things with my kids,

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Speaker 1: and I would make it fun. You know, number one brownies,

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Speaker 1: number two, your brother, three dirt for your mom, you know,

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Speaker 1: and and go through a list of ten things, and

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Speaker 1: I'd say, I want you to put this in order

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Speaker 1: of your favorite to your least favorite. And you know,

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Speaker 1: sometimes the brother came after dirt. You know, it just

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Speaker 1: depends on the day. But I would tell them this

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Speaker 1: is this is your priorities, this is what's most important

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Speaker 1: to you. So if you could buy five things, if

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Speaker 1: you have five things you want to buy but you

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Speaker 1: can only buy one, you have to prioritize and think

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Speaker 1: about which one you can buy. You can't buy all

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Speaker 1: of it. So these are just kind of easy ways

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Speaker 1: to talk about money and to start incorporating it into

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Speaker 1: the conversation. It doesn't there's no perfect conversation or lesson

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Speaker 1: to give them. It's just talking, just chatting about it,

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Speaker 1: making it not so intimidating. Yeah, I like that. I

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Speaker 1: often here on the show, we kind of do a

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Speaker 1: little game, I guess if you want to call it

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Speaker 1: a game, but it's frugal or cheap, and we often

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Speaker 1: try to determine whether we're actually be in total cheaps

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Speaker 1: gates and if that's gonna end up buiting us in

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Speaker 1: the butt. But I like the idea of making this

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Speaker 1: a game with the kids, like is this a need

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Speaker 1: or is this a want? And it helps them to

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Speaker 1: kind of start prioritizing, at least mentally for them to

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Speaker 1: help realize what they want to spend their money on.

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Speaker 1: So I love that you've made this a fun thing

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Speaker 1: for them, Liz, But it is good to make it practical,

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Speaker 1: you know, by modeling with our own behavior. But what

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Speaker 1: about just kind of making this more of an actual lesson,

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Speaker 1: Like like is there a place kind of for verbal

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Speaker 1: instruction and you know the sort of formal process of

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Speaker 1: teaching them a lesson? You know, like how do we

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Speaker 1: go about codifying these games and real life examples into

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Speaker 1: solid lessons that actually stick with them. Sure. Yeah, so

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Speaker 1: I think that you know, you can kind of put

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Speaker 1: this into two parts. I mean when you say lessons,

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Speaker 1: I think that kids at any age, and this goes

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Speaker 1: for adults too, they just don't really absorb a lot

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Speaker 1: through lessons. They absorb through interaction, through making it relative

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Speaker 1: to them and fun. So you know, for kids, it's

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Speaker 1: going to be more about games that bring lessons to life.

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Speaker 1: So a really good example of this is a pretend store.

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Speaker 1: You know, if you're using you can get all the

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Speaker 1: toys in your house and make it a pretend store

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Speaker 1: for your kids and have them come up and you

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Speaker 1: know they have to. You've got a store owner and

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Speaker 1: you've got a buyer and they have a store owner

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Speaker 1: comes up with the prices, and the buyer has money,

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Speaker 1: and the buyer comes in and says what they want,

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Speaker 1: and these kind of lessons, you know, these these develop

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Speaker 1: naturally into lessons where you say, so when you go

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Speaker 1: into a store and you only have enough this match money,

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Speaker 1: you have to choose what you're gonna buy, and then

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Speaker 1: you're going to get changed from that. And just talking

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Speaker 1: about the logistics of it. Another one which is just

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Speaker 1: the classic money management activity is a lemonade stand. You know,

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Speaker 1: this is or or a bake sale, or could be

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Speaker 1: anything like that. But this is a way that you know,

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Speaker 1: you're teaching your your kids about working, that you have

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Speaker 1: to work to make money, that once you know that

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Speaker 1: you have to buy materials first. So there's you know,

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Speaker 1: this cost of goods type lessons. So those kind of

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Speaker 1: lessons can be incorporated in these activities. Liz, what what

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Speaker 1: would you say to parents who are saying like, Hey,

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Speaker 1: I'm like literally just getting the ball rolling with my

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Speaker 1: own personal finances. I'm trying to kind of figure things

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Speaker 1: out on the fly, and so I'm not sure I

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Speaker 1: have the confidence to be able to, you know, teach

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Speaker 1: my kid and bring them along and kind of help

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Speaker 1: them figure out the nuts and bolts of personal finance

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Speaker 1: because I'm not sure I understand them myself, and they're nervous, Like, yeah,

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Speaker 1: what would you say to that parent? Oh gosh, I mean,

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Speaker 1: you know, I would say the same thing to a

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Speaker 1: nutritionist telling me to talk to my kids about getting

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Speaker 1: enough protein. You know, none of us, no parent um

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Speaker 1: feels like they're on the ball really with anything. I mean,

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Speaker 1: I think that's the definition of parenthood. So, you know, parents,

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Speaker 1: like I said, with anything, because you're right, like like

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Speaker 1: I have no idea what I'm doing, and I'm like

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Speaker 1: kind of making it up as I go along, Right,

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Speaker 1: That's all we're doing. We're all just making it up.

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Speaker 1: So when it comes to finances, parents know so much

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Speaker 1: more than they think they do. They do not have

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Speaker 1: to be in a you know, in their ideal place

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Speaker 1: financially for them to understand the basics. They every day

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Speaker 1: make spending decisions. They every day, whether they have a

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Speaker 1: budget or not. They understand that they're budgeting, you know.

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Speaker 1: They understand the importance of saving, whether they practice it

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Speaker 1: or not. As a different story, but they do understand

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Speaker 1: the importance of avoiding debt. So there's a couple of

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Speaker 1: things that you know that they're they're practicing every day

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Speaker 1: just by being a parent, just by running a household,

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Speaker 1: you know, or working. They understand that they have to

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Speaker 1: work to make money. So you really don't have to

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Speaker 1: have some sophisticated knowledge of bitcoin and the market to

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Speaker 1: start incorporating these these kind of ideas to your kids.

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Speaker 1: So I would say to parents, don't worry about it,

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Speaker 1: don't worry until you have it perfect, because you never will.

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Speaker 1: I don't have it perfect. Nobody has it perfect. Just

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Speaker 1: start talking to them and you have experience on your side.

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Speaker 1: And when it comes to the different ages of kids,

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Speaker 1: as we know, start talking through these money lessons. Liz, like,

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Speaker 1: our kids range in age from two to eight. Obviously,

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Speaker 1: the eight year old are able to grap a whole

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Speaker 1: lot more. I feel like I'm kind of starting to

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Speaker 1: delve into investing a little bit with her, but uh,

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Speaker 1: I mean below the age of eight, though, there's a

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Speaker 1: wide range of ages. You know, when it's too young

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Speaker 1: to start, you know, trying to impart some of these lessons.

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Speaker 1: I mean, I think for parents it's too young when

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Speaker 1: you're overwhelmed with the toddler, you know. I mean you're

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Speaker 1: trying to make sure he has broccoli, and you're changing

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Speaker 1: diapers and you know, all of this stuff. I mean,

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Speaker 1: you really just can't put in when you're in the weeds.

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Speaker 1: You can't add in finance to that. I mean, we've

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Speaker 1: all been there. Um, you know, it depends on the kid.

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Speaker 1: I mean my daughter, when she was five, she was

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Speaker 1: really interested in money, and we would take out coins

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Speaker 1: and I'd help her learn math and pounding with the coins.

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Speaker 1: So that's a great way just kind of get them

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Speaker 1: to start feeling money and understanding it. I would let

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Speaker 1: her go into the store and she, you know, starting

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Speaker 1: at five, maybe even four, she wanted to pay the

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Speaker 1: cash here, which was just a great way to get

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Speaker 1: them to exposure and experience with money. My five year

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Speaker 1: old is completely on the other end of a spectrum.

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Speaker 1: You know, he was eating coins at I mean, you know,

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Speaker 1: there's there's just so for him. I know it's going

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Speaker 1: to take a little bit longer. We have some other challenges.

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Speaker 1: We're working with him, so you know, I also don't

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Speaker 1: want to set him up for failure, and I don't

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Speaker 1: want to set up myself for failure. So for parents,

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Speaker 1: they've got to really be realistic. There's no too early

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Speaker 1: age or two old age to start talking about it,

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Speaker 1: just as long as you start doing it. I gotta

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Speaker 1: say one other thing I can add to that, Liz,

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Speaker 1: is I think you can play the how to Money

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Speaker 1: podcast for your baby in the womb or the audio

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Speaker 1: book you of your book. Well, one of those two things.

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Speaker 1: I think that's going to really help get speakers out

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Speaker 1: there that you can buy, especially to like attached to

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Speaker 1: your stomach. There's got to be that. I have a

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Speaker 1: whole new market now for my book. It's pretty women,

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Speaker 1: absolutely exactly. I mean, you could go with classical music,

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Speaker 1: or you could go with our podcast, which I think

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Speaker 1: is a lot of choice. But we've got more questions

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Speaker 1: for you, Liz, including we've got to talk about allowances.

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Speaker 1: We'll get into that right after this. All right, we're

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Speaker 1: back from the break, and again we're speaking with Liz Frasier,

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Speaker 1: and as we tease to before the break, allowances. So Liz,

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Speaker 1: let's go ahead and ask the question, are you for

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Speaker 1: allowances or are you against them? I feel like this

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Speaker 1: is kind of like one of those polarizing issues when

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Speaker 1: it comes to at least like money nerds who are

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Speaker 1: also parents, and maybe not everybody out there. Um, I

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Speaker 1: am a huge allowance fan, and I love the fact

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Speaker 1: that there's this great debate among parents about allowances because

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Speaker 1: I think it just shows how much we overthink things

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Speaker 1: when it comes to our kids and how so much

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Speaker 1: we care. We care so much, Yeah, we care so much.

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Speaker 1: So I think some people worry about giving an allowance

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Speaker 1: and that's going to make their kids entitled. And but

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Speaker 1: I would say when it comes to allowance, it's the

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Speaker 1: best tool for teaching your kids money management, because kids

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Speaker 1: learn best when they're interacting with something, and this makes

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Speaker 1: it tangible for them. And the best way for them

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Speaker 1: to learn about money is to actually have money. And

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Speaker 1: so with allowance, they're they're able to practice budgeting and

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Speaker 1: money management and learning to save and learning how to

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Speaker 1: give back. And also most importantly is they're able to

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Speaker 1: learn mistakes. They make their own mistakes, and this is

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Speaker 1: at a time when mistakes are not going to, you know,

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Speaker 1: create any kind of lifelong consequences. So I think allowance

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Speaker 1: is a really valuable tool for your kids. So much

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Speaker 1: of the debate comes down to whether your kid needs

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Speaker 1: to work for the allowance that they're getting or whether

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Speaker 1: you just hand them money. And I remember some kids

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Speaker 1: on my block growing up. Their parents give them like

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Speaker 1: twenty bucks a week or something like that, and I

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Speaker 1: was like, oh my gosh, and what do you do

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Speaker 1: for this? And they were like nothing really, and I

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Speaker 1: was like, oh my goodness. And on the opposite end

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Speaker 1: of the spectrum was me, where like I feel like

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Speaker 1: there was no allowance, like and I didn't in chances

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Speaker 1: to earn money were rare, or I had to like

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Speaker 1: go was on commission. Yeah, I had to get on

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Speaker 1: my entrepreneurial entrepreneurial horse and you know, go make some

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Speaker 1: money in the neighborhood. So yeah, where do you side?

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Speaker 1: Like should it be work work based or or should

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Speaker 1: you just be given your kid money for breathing? So

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Speaker 1: I actually think both and neither. There's a hybrid approach

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Speaker 1: which I really like when it comes to allowance. So

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Speaker 1: you know, the old traditional way of your kid does

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Speaker 1: chores and they get paid for it. I'm not crazy

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Speaker 1: about that one because you know, these are just things

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Speaker 1: my kids should be doing anyway as part of the family.

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Speaker 1: So you know, one, I don't want them to think

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Speaker 1: that they're going to get paid every time they put

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Speaker 1: their toys up. And also, you know, if you pay

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Speaker 1: your kid for chores, then they have the option to say,

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Speaker 1: you know what, Mom, I don't need money this week,

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Speaker 1: so I'm not going to empty the dishwasher. So I

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Speaker 1: don't like, right, this isn't a choice. So I don't

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Speaker 1: like tying it to actual chores. They are part of

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Speaker 1: our family and they're expected to do these chores. Um, However,

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Speaker 1: I do want them to have money each week because

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Speaker 1: I just look at it simply as a tool for

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Speaker 1: them to learn money management. So I set it up

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Speaker 1: like that with them. I don't tell them this is

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Speaker 1: for chores. I don't even you know, um, relate it

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Speaker 1: to chores. I just say, guys, so you guys get

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Speaker 1: an allowance every single week because I want you to

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Speaker 1: learn about money and I want you to practice money management. Um.

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Speaker 1: So you know. But I also like the theory behind

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Speaker 1: the traditional allowance, where you do something and you get money.

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Speaker 1: So I give them um extra ways around the house

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Speaker 1: to earn extra money, so they can still kind of think, okay,

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Speaker 1: well if I work, then I get money. So they're

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Speaker 1: still kind of learning that concept also, So you know,

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Speaker 1: that's things that are above and beyond what I expect

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Speaker 1: from them just as a child in this family. So

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Speaker 1: that might be washing the dog, or washing the windows,

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Speaker 1: or raking the leaves. It's something that it's not an

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Speaker 1: everyday thing. It's maybe once a week, um, but it's

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Speaker 1: a way for them to earn extra money. Nice. And

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Speaker 1: you know, after your kids have earned the money, I

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Speaker 1: feel like it can be may be tough to help

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Speaker 1: them to learn how best to spend it. And you

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Speaker 1: kind of touched on this a little bit there before

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Speaker 1: the break, like how active of a role should we

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Speaker 1: play in directing where the money goes? For instance, I'm

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Speaker 1: thinking of like if your kid gearns a bunch of

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Speaker 1: money and then they want to go to the store

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Speaker 1: the next time you're there together and they just end

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Speaker 1: up blowing it on something uh really plastic e, really cheap,

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Speaker 1: and it doesn't end up lasting more than a few uses, Like,

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Speaker 1: how do you navigate those waters? Yeah, I don't think

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Speaker 1: that's an if situation. I think that's a win situation

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Speaker 1: that's pretty much guaranteed. Um. I think parents can set

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Speaker 1: up the framework for their kids. So what we do,

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Speaker 1: and what I really like, is a three jar system,

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Speaker 1: which a lot of people have heard of. It's a

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Speaker 1: save jar, a spend jar, and a give jar, a

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Speaker 1: shared jar. And what I tell my kids every time

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Speaker 1: they get allowance and every time they get birthday or

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Speaker 1: holiday money, that they need to split it between the

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Speaker 1: three and I explained to them what each one is.

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Speaker 1: So the save jar is money that you're saving for

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Speaker 1: something big. Your share jar is money that you want

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Speaker 1: to use to help something or someone or your community.

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Speaker 1: Or something that you care about to give back. And

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Speaker 1: then your spendjar is money. I call it the target fund.

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Speaker 1: When we're at Target and you want, you know, some

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Speaker 1: plastic toy that I know is going to break in

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Speaker 1: five minutes and I'm not going to buy it for you,

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Speaker 1: use your spend jar. So you know, that's the framework

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Speaker 1: that I set up for them, and I expect them

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Speaker 1: every time they get any money to put it across

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Speaker 1: the three jars. But that's pretty much as far as

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Speaker 1: I think we should go as parents, because again, we

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Speaker 1: want them to learn on their own, So you know,

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Speaker 1: in terms of how much money they put in each one,

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Speaker 1: I let them decide. But it's interesting they actually naturally

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Speaker 1: kind of split it up into the three because first,

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Speaker 1: kids like to have rules and they want to you know,

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Speaker 1: make their parents proud and do the right things. So

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Speaker 1: at this age they're still kind of like, okay, well,

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Speaker 1: I guess I should put a little bit in each one. Um,

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Speaker 1: And then when it comes to those buying decisions, I

406
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Speaker 1: really let my kids have just full autonomy when it

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Speaker 1: comes to using their spending money or what they want

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Speaker 1: to save for. And you know, I think as parents,

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Speaker 1: what we can do is we can leave them a

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Speaker 1: little bit just in terms of saying, Okay, so you're

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Speaker 1: interested in buying this stuffed animal that is going to

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Speaker 1: fall apart in two days. Okay, So this is a decision.

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Speaker 1: This is a money decision that you're making. So let's

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Speaker 1: let's think about what the options are for this, you know,

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Speaker 1: help them with the decision process. What are the options

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Speaker 1: that you could do with this money. You can either

417
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Speaker 1: buy this now, or you can wait and maybe you'll

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Speaker 1: find something that you like better tomorrow, or you can

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Speaker 1: just save it and spend it later. So you want

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Speaker 1: to make sure that they know that they're making a

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Speaker 1: decision and if they decide nope, which they will know,

422
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Speaker 1: I have to have this stuffed animal. This is my life. Um,

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Speaker 1: then let them buy it, and you know, help them

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Speaker 1: after they buy it and they'll play with it for

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Speaker 1: a little bit and it's inevitably going to break or

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Speaker 1: fall apart, and then talk to them about the decision

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Speaker 1: afterwards and how they're feeling, you know, and oh, I'm

428
00:20:49,480 --> 00:20:53,560
Speaker 1: so sorry. Yes, we are all shocked that that toy broke, um,

429
00:20:53,600 --> 00:20:55,920
Speaker 1: you know, but yeah, maybe it's because it wasn't really

430
00:20:56,000 --> 00:20:59,000
Speaker 1: made very well and so next time, let's think a

431
00:20:59,000 --> 00:21:01,600
Speaker 1: little bit more when we're buying something and make sure

432
00:21:01,600 --> 00:21:03,600
Speaker 1: it's something that's going to last a bit longer so

433
00:21:03,640 --> 00:21:06,280
Speaker 1: that you won't feel sad afterwards. But it's a good

434
00:21:06,320 --> 00:21:09,359
Speaker 1: thing to let them make these mistakes. Yeah, no, I

435
00:21:09,400 --> 00:21:12,520
Speaker 1: like that, and and give some sense of autonomy and

436
00:21:12,600 --> 00:21:15,119
Speaker 1: control over the money as opposed to us controlling like

437
00:21:15,200 --> 00:21:18,160
Speaker 1: what they do. What's your take, Liz when it comes

438
00:21:18,160 --> 00:21:21,080
Speaker 1: to saving, Like, I love the three jar approach, but

439
00:21:21,160 --> 00:21:22,800
Speaker 1: how how do we get kids? And you said they're

440
00:21:22,840 --> 00:21:25,440
Speaker 1: kind of naturally maybe geared towards putting money in each

441
00:21:25,440 --> 00:21:27,000
Speaker 1: of the jars, But how do you get them excited

442
00:21:27,040 --> 00:21:29,560
Speaker 1: that the spending part is the exciting part, and even

443
00:21:29,640 --> 00:21:31,920
Speaker 1: giving giving the money away, I feel like they can

444
00:21:32,280 --> 00:21:35,480
Speaker 1: see maybe like we've found a fun way, like to

445
00:21:35,560 --> 00:21:38,360
Speaker 1: sponsor a child in another country, and my kids get

446
00:21:38,359 --> 00:21:40,639
Speaker 1: excited to like correspond with her, and so giving that

447
00:21:40,720 --> 00:21:44,640
Speaker 1: money away it's actually tangible and so they don't mind.

448
00:21:44,720 --> 00:21:47,199
Speaker 1: They don't mind doing that, But the saving part is

449
00:21:47,359 --> 00:21:50,080
Speaker 1: the harder one. I think to communicate to young kids.

450
00:21:50,119 --> 00:21:51,879
Speaker 1: Is there a way to get them more excited in

451
00:21:51,880 --> 00:21:54,760
Speaker 1: that regard? Yeah, I mean, you're using the perfect word

452
00:21:54,920 --> 00:21:57,080
Speaker 1: is excitement. You need to get them excited about it.

453
00:21:57,200 --> 00:21:59,600
Speaker 1: So one way that I do it is I go

454
00:21:59,680 --> 00:22:03,200
Speaker 1: ahead and make it tangible for them for the beginning.

455
00:22:03,359 --> 00:22:06,199
Speaker 1: So for example, my daughter, you know, when we started

456
00:22:06,200 --> 00:22:08,200
Speaker 1: the save jar, I said, okay, let's think about what

457
00:22:08,240 --> 00:22:10,000
Speaker 1: we want to save for. And I knew, you know,

458
00:22:10,119 --> 00:22:12,000
Speaker 1: I had an idea of things that she was interested in,

459
00:22:12,040 --> 00:22:13,359
Speaker 1: so I kind of helped her a little bit. She

460
00:22:13,400 --> 00:22:16,680
Speaker 1: decided she wanted to buy a jasmine dollar, so I said, okay, great,

461
00:22:16,720 --> 00:22:18,679
Speaker 1: let's get a picture. So I got a picture of it,

462
00:22:18,760 --> 00:22:21,040
Speaker 1: I put it on the save jar, so she always knew,

463
00:22:21,119 --> 00:22:23,040
Speaker 1: this is what I'm saving up for. I've got something

464
00:22:23,080 --> 00:22:25,440
Speaker 1: at the end of this tunnel. And then we created

465
00:22:25,680 --> 00:22:29,760
Speaker 1: um you know those old school UH sales goals where

466
00:22:29,760 --> 00:22:32,480
Speaker 1: there's the thermometer and you're coloring in when you're trying

467
00:22:32,480 --> 00:22:34,240
Speaker 1: to reach a goal. So we created one of those

468
00:22:34,280 --> 00:22:36,480
Speaker 1: for her, and it was really fun. Every time that

469
00:22:36,520 --> 00:22:38,600
Speaker 1: she put money in there, we'd counted up, we would

470
00:22:38,760 --> 00:22:40,679
Speaker 1: you know, color a little bit more, showing that we

471
00:22:40,680 --> 00:22:43,560
Speaker 1: were almost to our goal. But then we would also

472
00:22:43,920 --> 00:22:48,480
Speaker 1: um reward her at certain milestones. So for example, you know,

473
00:22:48,560 --> 00:22:51,960
Speaker 1: once she hit ten dollars, I said, okay, at ten dollars,

474
00:22:52,000 --> 00:22:54,719
Speaker 1: that means you get to choose the movie tonight, you know,

475
00:22:55,040 --> 00:22:57,680
Speaker 1: or at twenty dollars is and once you hit twenty dollars,

476
00:22:58,080 --> 00:23:01,120
Speaker 1: I'm going to, you know, give you an extra five

477
00:23:01,200 --> 00:23:04,359
Speaker 1: dollars at this. So creating milestones also adds that little

478
00:23:04,359 --> 00:23:07,040
Speaker 1: bit of an excitement for her, and we celebrated it,

479
00:23:07,160 --> 00:23:09,640
Speaker 1: you know, every time we were coloring it in, we're like, God,

480
00:23:09,680 --> 00:23:12,960
Speaker 1: you're so much closer. This is great getting her positive reinforcement.

481
00:23:13,400 --> 00:23:16,080
Speaker 1: And I think parents are hesitant to do that because

482
00:23:16,240 --> 00:23:18,119
Speaker 1: they know that their kid is probably not going to

483
00:23:18,200 --> 00:23:20,399
Speaker 1: want this jasmine doll in a period of a month

484
00:23:20,440 --> 00:23:22,080
Speaker 1: when it takes you know, it takes that long to

485
00:23:22,080 --> 00:23:24,399
Speaker 1: save up for it. But that's okay. You can always

486
00:23:24,440 --> 00:23:26,520
Speaker 1: switch it out once they have thirty dollars and they say,

487
00:23:26,520 --> 00:23:29,119
Speaker 1: you know what, actually I think I want uh, you know,

488
00:23:29,480 --> 00:23:32,520
Speaker 1: Xbox game and say, okay, great, so that's going to

489
00:23:32,600 --> 00:23:34,760
Speaker 1: cost this. Let's change our goal. We'll put a new

490
00:23:34,800 --> 00:23:37,800
Speaker 1: picture on there and keep going. But when it comes

491
00:23:37,840 --> 00:23:40,280
Speaker 1: to saving, the most important thing is building that habit

492
00:23:40,440 --> 00:23:42,720
Speaker 1: and keeping it positive. You want them to be excited

493
00:23:42,720 --> 00:23:45,000
Speaker 1: about it, and you want them to always think the

494
00:23:45,040 --> 00:23:47,159
Speaker 1: rest of their lives, Oh, I got money, and I

495
00:23:47,200 --> 00:23:48,879
Speaker 1: have to pay myself first. I just have to put

496
00:23:48,960 --> 00:23:51,840
Speaker 1: in savings and it's not a thought after a while. Yeah,

497
00:23:52,040 --> 00:23:53,840
Speaker 1: I feel like you also got to teach them at

498
00:23:53,840 --> 00:23:55,880
Speaker 1: some point the magic of eBay, how they can turn

499
00:23:55,920 --> 00:23:59,679
Speaker 1: the things that they no longer want into more money. Exactly.

500
00:24:00,600 --> 00:24:02,800
Speaker 1: We've been doing a lot more ebaying around here recently.

501
00:24:03,119 --> 00:24:05,479
Speaker 1: Uh So, I mean, so, let's so you talked about excitement, right,

502
00:24:05,480 --> 00:24:08,280
Speaker 1: and how that's just a key part of making savings.

503
00:24:09,080 --> 00:24:12,280
Speaker 1: That's something that they're pumped about. It's like spending comes easy.

504
00:24:12,359 --> 00:24:14,879
Speaker 1: That's maybe how you make it happen with saving Joel's

505
00:24:14,920 --> 00:24:17,320
Speaker 1: you know, his kids get excited about giving their money away.

506
00:24:17,359 --> 00:24:18,720
Speaker 1: I feel like you have a lot of great advice

507
00:24:18,720 --> 00:24:21,200
Speaker 1: about helping just kids in general to be great when

508
00:24:21,200 --> 00:24:22,760
Speaker 1: it comes to giving. And so, how do we help

509
00:24:22,760 --> 00:24:25,280
Speaker 1: our kids realize, you know, the impact for good that

510
00:24:25,320 --> 00:24:27,639
Speaker 1: they can actually have with that money that they that

511
00:24:27,680 --> 00:24:30,840
Speaker 1: they earn or money that they receive, is it's similar

512
00:24:30,880 --> 00:24:32,720
Speaker 1: to what you just said. Is it getting them excited

513
00:24:32,760 --> 00:24:35,280
Speaker 1: to do the giving? How do we make that connection

514
00:24:35,320 --> 00:24:37,760
Speaker 1: with him? Yeah? I mean I think that starts just

515
00:24:37,840 --> 00:24:41,800
Speaker 1: with conversations within your family about how lucky you are,

516
00:24:42,160 --> 00:24:44,040
Speaker 1: you know, about how lucky we are that we have

517
00:24:44,080 --> 00:24:47,200
Speaker 1: a home and we have food and we you know, yes,

518
00:24:47,280 --> 00:24:50,600
Speaker 1: you've got presents for the holidays because you know, we're

519
00:24:50,680 --> 00:24:53,160
Speaker 1: we're very lucky that we have this. And for kids

520
00:24:53,200 --> 00:24:56,120
Speaker 1: to understand that not everybody is so fortunate, and so,

521
00:24:56,240 --> 00:24:58,439
Speaker 1: you know, it's it's a bigger conversation. But once your

522
00:24:58,480 --> 00:25:01,879
Speaker 1: kids start understanding that other people don't don't have the

523
00:25:01,880 --> 00:25:04,160
Speaker 1: things that you have, or that money can do good

524
00:25:04,320 --> 00:25:07,639
Speaker 1: for animals or for whatever you know is in need.

525
00:25:08,280 --> 00:25:11,040
Speaker 1: You know, kids are just naturally want to help people.

526
00:25:11,119 --> 00:25:16,080
Speaker 1: They just naturally our caretakers. So you know, it's not

527
00:25:16,200 --> 00:25:18,840
Speaker 1: something that really takes once you get started with them.

528
00:25:18,840 --> 00:25:20,560
Speaker 1: It's not something that takes a lot of work to

529
00:25:20,800 --> 00:25:24,240
Speaker 1: encourage this habit with them, you know. But but every kid,

530
00:25:24,280 --> 00:25:26,400
Speaker 1: you know your child, and you know what's important them.

531
00:25:26,400 --> 00:25:29,320
Speaker 1: My son is obsessed with sharks. He just loves sharks

532
00:25:29,400 --> 00:25:31,960
Speaker 1: and dinosaurs. But there's nothing we can do for the dinosaurs.

533
00:25:32,040 --> 00:25:35,400
Speaker 1: So for sharks, we looked up to see if there's

534
00:25:35,480 --> 00:25:40,159
Speaker 1: any and he still doesn't accept that, but you know,

535
00:25:40,200 --> 00:25:44,240
Speaker 1: so we looked up different organizations that are helping sharks,

536
00:25:44,240 --> 00:25:47,639
Speaker 1: and we found those bracelets where those guys clean up

537
00:25:47,640 --> 00:25:49,760
Speaker 1: the ocean and they use the trash from it to

538
00:25:49,760 --> 00:25:51,920
Speaker 1: make the bracelets, and we found one that's dedicated to

539
00:25:51,920 --> 00:25:55,000
Speaker 1: helping sharks. And so it was something just as simple

540
00:25:55,000 --> 00:25:56,959
Speaker 1: as that. We put a picture on the shared jar

541
00:25:57,040 --> 00:25:59,560
Speaker 1: and we talked about it all the time. Um, but

542
00:25:59,640 --> 00:26:01,199
Speaker 1: you know, there is a lot of different ways that

543
00:26:01,240 --> 00:26:04,000
Speaker 1: money can do good and it just kids are just

544
00:26:04,160 --> 00:26:06,520
Speaker 1: natural givers. It doesn't take a lot for them to

545
00:26:06,560 --> 00:26:08,720
Speaker 1: want to help others. Just look on the playground, you know,

546
00:26:08,880 --> 00:26:11,280
Speaker 1: if a kids crying, you see multiple kids going up

547
00:26:11,280 --> 00:26:13,480
Speaker 1: there trying to help them. Yeah, that's so true. I

548
00:26:13,480 --> 00:26:16,160
Speaker 1: mean what I'm hearing you say is basically just being intentional,

549
00:26:16,640 --> 00:26:18,720
Speaker 1: you know, like whether it's what savings, savings goals, like

550
00:26:18,720 --> 00:26:22,080
Speaker 1: you're talking about celebrating that because I think sometimes with

551
00:26:22,200 --> 00:26:24,920
Speaker 1: our fast paced life, we can just say, Okay, cool,

552
00:26:24,920 --> 00:26:26,480
Speaker 1: we got that. Let's just keep moving on, like what's

553
00:26:26,520 --> 00:26:28,840
Speaker 1: the next big goal? Like onwards and upwards kind of

554
00:26:28,840 --> 00:26:32,280
Speaker 1: mentality as opposed to slowing down, like pausing for a

555
00:26:32,320 --> 00:26:34,959
Speaker 1: second and recognizing. And I'll love what you said there too,

556
00:26:35,000 --> 00:26:37,640
Speaker 1: about just being lucky, and I mean that's gratitude, that's

557
00:26:37,720 --> 00:26:40,520
Speaker 1: just showing that, hey, we're fortunate, we are in a

558
00:26:40,560 --> 00:26:43,280
Speaker 1: great position, and this is a way that we can

559
00:26:43,440 --> 00:26:45,800
Speaker 1: reflect the good fortune that we've had and share it

560
00:26:45,840 --> 00:26:47,840
Speaker 1: with others as well. I think that's yeah. I love

561
00:26:47,880 --> 00:26:49,640
Speaker 1: all the all the things here that you're saying. Yeah,

562
00:26:49,640 --> 00:26:51,680
Speaker 1: and just to add on to that, you know, we

563
00:26:52,080 --> 00:26:54,000
Speaker 1: I mean, we live in a world where really bad

564
00:26:54,000 --> 00:26:56,240
Speaker 1: things happen, and we don't want to scare our kids

565
00:26:56,280 --> 00:26:58,359
Speaker 1: about that. But something that we can do is when

566
00:26:58,640 --> 00:27:01,320
Speaker 1: you know, if there's an earthquake and your kids see

567
00:27:01,400 --> 00:27:04,159
Speaker 1: on the news that there's this earthquake and that's just

568
00:27:04,200 --> 00:27:06,280
Speaker 1: such a tragedy, what you can do is you can

569
00:27:06,280 --> 00:27:08,399
Speaker 1: point out the people there who are helping. You know,

570
00:27:08,480 --> 00:27:10,200
Speaker 1: let's say, look at that Look at that group. They

571
00:27:10,200 --> 00:27:13,040
Speaker 1: flew right out there to you know, hand out water

572
00:27:13,160 --> 00:27:15,440
Speaker 1: to people who don't have water. And you know, oh

573
00:27:15,480 --> 00:27:18,639
Speaker 1: my gosh, that's amazing that your school immediately started this

574
00:27:18,760 --> 00:27:20,720
Speaker 1: code drive to get codes to these people who are

575
00:27:20,760 --> 00:27:23,159
Speaker 1: facing this tragedy. So it's another way you can just

576
00:27:23,240 --> 00:27:26,359
Speaker 1: introduce this idea of how they can help. You know,

577
00:27:26,400 --> 00:27:28,480
Speaker 1: they can help with money, they can help with their time,

578
00:27:29,160 --> 00:27:31,760
Speaker 1: um is by pointing out when they when you see

579
00:27:31,760 --> 00:27:34,480
Speaker 1: other people going to help Totally. I want to talk

580
00:27:34,480 --> 00:27:37,480
Speaker 1: about personality types is because you've kind of already mentioned

581
00:27:37,560 --> 00:27:41,879
Speaker 1: the how your kids are really different and my kids

582
00:27:41,960 --> 00:27:44,920
Speaker 1: same thing, right, Like, I have to speak to them

583
00:27:45,040 --> 00:27:47,199
Speaker 1: very differently in order to get to do a lot

584
00:27:47,240 --> 00:27:49,640
Speaker 1: of things to to try to to try to teach them.

585
00:27:49,680 --> 00:27:52,280
Speaker 1: They they're they're just um they need to be reached

586
00:27:52,320 --> 00:27:54,760
Speaker 1: in different ways. So how would you say that different

587
00:27:54,760 --> 00:27:58,439
Speaker 1: personality types entered the equation and what your parents keep

588
00:27:58,480 --> 00:28:00,520
Speaker 1: in mind when it comes to raising both well, kids

589
00:28:00,560 --> 00:28:03,439
Speaker 1: who are good with money, because you know, one size

590
00:28:03,480 --> 00:28:06,520
Speaker 1: doesn't always fit all. Yeah, it's funny. I mean my

591
00:28:06,600 --> 00:28:10,000
Speaker 1: daughter again, my daughter is really interested in money. She

592
00:28:10,480 --> 00:28:12,320
Speaker 1: wanted to count it when she was young. My son

593
00:28:12,480 --> 00:28:15,120
Speaker 1: does not care about money and as a financial planner

594
00:28:15,160 --> 00:28:18,119
Speaker 1: and literally somebody who wrote the book on money, and

595
00:28:19,080 --> 00:28:21,359
Speaker 1: it makes me nuts that he's not interested in it.

596
00:28:21,440 --> 00:28:23,560
Speaker 1: But it's like anything else, you can't push them or

597
00:28:23,600 --> 00:28:25,919
Speaker 1: else they're going to be just push you away and

598
00:28:26,000 --> 00:28:28,720
Speaker 1: be less interested in it than they are. But you

599
00:28:28,760 --> 00:28:31,840
Speaker 1: can find different ways to reach them, kind of sneaking

600
00:28:31,880 --> 00:28:33,920
Speaker 1: it in you know, it's like sneaking kale into a

601
00:28:34,000 --> 00:28:37,080
Speaker 1: chocolate shake. So, you know, with my daughter, I can

602
00:28:37,119 --> 00:28:39,760
Speaker 1: just outright talk to her about money, and she's interested

603
00:28:39,800 --> 00:28:41,360
Speaker 1: in it and she wants to learn about it. With

604
00:28:41,400 --> 00:28:43,040
Speaker 1: my son, I have to be a little bit sneakier.

605
00:28:43,080 --> 00:28:45,120
Speaker 1: So that's where the games come in. You know, well

606
00:28:45,240 --> 00:28:48,760
Speaker 1: we'll try Monopoly or you know, we've done yard sales

607
00:28:49,240 --> 00:28:53,000
Speaker 1: or you know, doing um the store game in the house.

608
00:28:53,040 --> 00:28:56,400
Speaker 1: He's also very independent, so he likes feeling like the

609
00:28:56,440 --> 00:28:59,200
Speaker 1: big kid because he's the youngest. So I, you know,

610
00:28:59,240 --> 00:29:00,800
Speaker 1: when we go to this, or I'll say, ohen, do

611
00:29:00,840 --> 00:29:03,000
Speaker 1: you want to go up and pay for this by yourself?

612
00:29:03,000 --> 00:29:05,800
Speaker 1: I'll stand towards the back and he's like yes, you know,

613
00:29:05,800 --> 00:29:08,560
Speaker 1: and he doesn't realize maybe that he's being taught about

614
00:29:08,600 --> 00:29:10,720
Speaker 1: it and that it has something to do with finance,

615
00:29:10,720 --> 00:29:13,440
Speaker 1: because I if I say the word finance, he has gone,

616
00:29:13,720 --> 00:29:16,040
Speaker 1: you know, he is a mile away. So I think

617
00:29:16,040 --> 00:29:18,360
Speaker 1: it's really just sneaking it in there. When you can

618
00:29:18,480 --> 00:29:20,440
Speaker 1: in a way that your kids will respond to it,

619
00:29:20,800 --> 00:29:23,400
Speaker 1: that's great, Liz. You know, we've kind of talked here

620
00:29:23,400 --> 00:29:26,840
Speaker 1: about some foundational concepts when it comes to raising financially

621
00:29:26,880 --> 00:29:28,840
Speaker 1: savvy kids. But after the break, we're going to talk

622
00:29:28,880 --> 00:29:32,040
Speaker 1: about some more complex concepts and we'll get all of

623
00:29:32,040 --> 00:29:42,600
Speaker 1: those right after the break. O're back from the break,

624
00:29:42,680 --> 00:29:47,080
Speaker 1: still talking about raising kids who know how to handle money. Well, Liz,

625
00:29:47,320 --> 00:29:49,880
Speaker 1: let's get to the hard hitting questions here. Are you ready?

626
00:29:50,400 --> 00:29:54,040
Speaker 1: I'm ready. Okay, they're not that hard hitting the questions before,

627
00:29:54,120 --> 00:29:57,040
Speaker 1: but just different. I was kind of you guys have

628
00:29:57,080 --> 00:30:00,800
Speaker 1: been pretty intimidating, So I'm ready. That's what everyone. There's

629
00:30:00,800 --> 00:30:04,160
Speaker 1: no hot seat or anything. Right. I want to talk

630
00:30:04,200 --> 00:30:07,000
Speaker 1: about entrepreneurship for a second because the name of your

631
00:30:07,040 --> 00:30:10,440
Speaker 1: book and it invokes the old school lemonade stand right,

632
00:30:10,440 --> 00:30:12,600
Speaker 1: Like I remember sending one of those up when I

633
00:30:12,640 --> 00:30:15,120
Speaker 1: was a kid. I feel like almost every kid has

634
00:30:15,200 --> 00:30:17,800
Speaker 1: some sort of recollection of doing something like that, and

635
00:30:17,960 --> 00:30:22,160
Speaker 1: they have some sort of like miniature entrepreneurship story. So yeah,

636
00:30:22,200 --> 00:30:25,120
Speaker 1: as parents, like, should we be encouraging that startup mindset

637
00:30:25,240 --> 00:30:28,560
Speaker 1: more than we do? It seems like that's I don't know,

638
00:30:28,600 --> 00:30:31,920
Speaker 1: it seems like it's less a thing today than it

639
00:30:32,040 --> 00:30:36,000
Speaker 1: was when we were growing up. Absolutely, you know, I

640
00:30:36,040 --> 00:30:40,120
Speaker 1: think that it's it's part entrepreneurship, but it's also part

641
00:30:40,240 --> 00:30:43,560
Speaker 1: just giving your kids the opportunity to earn money. And

642
00:30:43,760 --> 00:30:46,480
Speaker 1: I would I would have my kids working at the

643
00:30:46,520 --> 00:30:49,840
Speaker 1: gap at six if I could. I think it's so great.

644
00:30:51,160 --> 00:30:54,680
Speaker 1: Count Now Liz is in favor of child like, yeah,

645
00:30:54,720 --> 00:30:58,240
Speaker 1: you know what, let's maybe scratch that part. But you know,

646
00:30:58,360 --> 00:31:00,520
Speaker 1: I I do think it's so important and for kids

647
00:31:00,560 --> 00:31:02,360
Speaker 1: to be able to earn their own money. And obviously

648
00:31:02,400 --> 00:31:05,160
Speaker 1: when it's younger, you're not filling out applications at the gap,

649
00:31:05,240 --> 00:31:08,880
Speaker 1: but you can, you know, have them earn their own

650
00:31:08,880 --> 00:31:12,360
Speaker 1: money and kind of learn these entrepreneurial skills by going

651
00:31:12,400 --> 00:31:14,360
Speaker 1: to the neighbors and saying, hey, do you guys need

652
00:31:14,520 --> 00:31:17,480
Speaker 1: your your backyard raked this fall? I could come to

653
00:31:17,520 --> 00:31:20,200
Speaker 1: it once a week or you know, doing dog walking

654
00:31:20,320 --> 00:31:22,680
Speaker 1: or something like that in the neighborhood and start small.

655
00:31:22,840 --> 00:31:25,800
Speaker 1: They're something that they can manage. But it gives them

656
00:31:25,880 --> 00:31:29,400
Speaker 1: so many important lessons and sets up so many foundations

657
00:31:29,440 --> 00:31:32,680
Speaker 1: for them. It's earning money. The importance of earning money.

658
00:31:32,720 --> 00:31:35,280
Speaker 1: You know, it makes them more interested in their money

659
00:31:35,280 --> 00:31:37,160
Speaker 1: because they earned it. You know, they've got a little

660
00:31:37,160 --> 00:31:40,200
Speaker 1: skin in the game. It builds confidence, it makes them

661
00:31:40,200 --> 00:31:43,640
Speaker 1: feel more independent. Um, so there's you know, it's not

662
00:31:43,720 --> 00:31:46,520
Speaker 1: just about them having money. It's really all the different

663
00:31:46,680 --> 00:31:50,240
Speaker 1: lessons and qualities that it helps to build within your kids.

664
00:31:50,680 --> 00:31:52,840
Speaker 1: But I think when they're younger, they can start just

665
00:31:52,880 --> 00:31:54,960
Speaker 1: doing things around the house and around the neighborhood. But

666
00:31:55,000 --> 00:31:57,800
Speaker 1: as they get older, whether it's a job and actual

667
00:31:57,880 --> 00:32:01,480
Speaker 1: part time job someplace or starting their own businesses. I mean,

668
00:32:01,560 --> 00:32:04,640
Speaker 1: it's just it's such a great opportunity for them to

669
00:32:04,920 --> 00:32:08,760
Speaker 1: really have the full cycle of money management, which starts

670
00:32:08,760 --> 00:32:11,200
Speaker 1: with earning money and ends with what you do with

671
00:32:11,240 --> 00:32:13,800
Speaker 1: the money. I love how you said that that is

672
00:32:13,800 --> 00:32:15,680
Speaker 1: going to give your kids confidence, because I feel like

673
00:32:15,720 --> 00:32:17,600
Speaker 1: that is something that is kind of lacking in our

674
00:32:17,880 --> 00:32:19,360
Speaker 1: you know, when it comes to kids. Like over the

675
00:32:19,400 --> 00:32:21,560
Speaker 1: past twenty years, just in general, I feel like we've

676
00:32:21,600 --> 00:32:24,560
Speaker 1: been putting more emphasis and more focused on college, which

677
00:32:24,640 --> 00:32:27,160
Speaker 1: is sort of like this default track in my mind.

678
00:32:27,160 --> 00:32:29,640
Speaker 1: It feels less active and it feels a little more

679
00:32:29,680 --> 00:32:33,360
Speaker 1: passive compared to entrepreneurship, which is something I feel that

680
00:32:33,360 --> 00:32:34,960
Speaker 1: that we are maybe seeing less of when it comes

681
00:32:34,960 --> 00:32:37,240
Speaker 1: to our kids. So I like that you pointed out

682
00:32:37,280 --> 00:32:39,959
Speaker 1: how it can be confidence boosing, and in the end,

683
00:32:40,040 --> 00:32:42,160
Speaker 1: that means, you know, maybe kids taking more risks and

684
00:32:42,200 --> 00:32:44,760
Speaker 1: being actually more entrepreneurial as they get older. And it

685
00:32:44,760 --> 00:32:47,320
Speaker 1: doesn't mean not going to college necessarily exactly, but there

686
00:32:47,320 --> 00:32:49,600
Speaker 1: are other options out there other than just like all right,

687
00:32:49,600 --> 00:32:51,560
Speaker 1: just do this one thing and you'll be fine, because

688
00:32:51,560 --> 00:32:54,160
Speaker 1: we're finding out that that isn't always the case anymore.

689
00:32:54,640 --> 00:32:57,480
Speaker 1: That's what we're learning, Liz earlier too, you mentioned just

690
00:32:57,840 --> 00:33:01,400
Speaker 1: the ability to make money just real and tangible to kids.

691
00:33:01,400 --> 00:33:06,280
Speaker 1: How that's really important. But let's talk about credit cards, uh,

692
00:33:06,360 --> 00:33:08,200
Speaker 1: as our kids get older, like you know, like, should

693
00:33:08,200 --> 00:33:10,320
Speaker 1: we be ensuring that our kids learn how to use

694
00:33:10,360 --> 00:33:13,160
Speaker 1: credit cards as well, or you know, should we just

695
00:33:13,520 --> 00:33:16,960
Speaker 1: stick with cash. I'd love to hear your thoughts on that. Well.

696
00:33:17,040 --> 00:33:19,840
Speaker 1: I think when people, you know, think about kids and

697
00:33:19,840 --> 00:33:23,000
Speaker 1: credit cards, they're thinking, well, it's really a digital economy now,

698
00:33:23,120 --> 00:33:25,320
Speaker 1: so I don't want them using cash. They should learn

699
00:33:25,400 --> 00:33:28,520
Speaker 1: how to use credit cards. But I think actually you

700
00:33:28,560 --> 00:33:32,520
Speaker 1: can learn the digital economy and digital payments with a

701
00:33:32,560 --> 00:33:36,760
Speaker 1: debit card or you know, an app that's made for teenagers.

702
00:33:37,320 --> 00:33:40,440
Speaker 1: You know, going to a credit card is is really

703
00:33:40,520 --> 00:33:44,560
Speaker 1: something that's that's very tricky because you just that's not

704
00:33:44,600 --> 00:33:46,200
Speaker 1: a habit that you want to build with them. You know,

705
00:33:46,280 --> 00:33:48,880
Speaker 1: they can learn how to use a debit card in

706
00:33:48,920 --> 00:33:50,720
Speaker 1: a similar way that you to use credit card. You

707
00:33:50,720 --> 00:33:53,000
Speaker 1: want to use this responsibly. You need to make sure

708
00:33:53,000 --> 00:33:55,000
Speaker 1: that you have the money to pay for this. But

709
00:33:55,080 --> 00:33:57,640
Speaker 1: when it comes to credit cards, you know, some parents

710
00:33:57,720 --> 00:33:59,800
Speaker 1: think that they should open up one when they're younger

711
00:33:59,840 --> 00:34:01,840
Speaker 1: so that they learn about it or that they can

712
00:34:01,880 --> 00:34:04,800
Speaker 1: build credit. I see no reason for a teenager to

713
00:34:04,880 --> 00:34:07,080
Speaker 1: ever have a credit card. What you want your kids

714
00:34:07,120 --> 00:34:10,200
Speaker 1: to understand about credit cards is that if you're using

715
00:34:10,200 --> 00:34:12,680
Speaker 1: a credit card, you can't afford it. I mean, that's

716
00:34:12,760 --> 00:34:15,359
Speaker 1: that's just the gist of a credit card. And as

717
00:34:15,400 --> 00:34:18,359
Speaker 1: they get older and get to college, and when they

718
00:34:18,400 --> 00:34:20,200
Speaker 1: get out of college, they are going to be the

719
00:34:20,239 --> 00:34:23,560
Speaker 1: primary target for credit cards. So we should be teaching

720
00:34:23,560 --> 00:34:26,319
Speaker 1: the opposite with our kids and credit cards, that if

721
00:34:26,360 --> 00:34:28,480
Speaker 1: they need to use a credit card, it's okay to

722
00:34:28,520 --> 00:34:30,360
Speaker 1: have one as long as you're able to pay it

723
00:34:30,400 --> 00:34:33,800
Speaker 1: off every month. But this is not a default payment.

724
00:34:33,840 --> 00:34:36,560
Speaker 1: This is not something that you should be really considering

725
00:34:36,640 --> 00:34:39,319
Speaker 1: as a method of payment. Of course, most people do

726
00:34:39,400 --> 00:34:41,080
Speaker 1: at some point, but it's not something you want them

727
00:34:41,120 --> 00:34:44,200
Speaker 1: to be thinking about early on. But it is important

728
00:34:44,239 --> 00:34:46,239
Speaker 1: to explain to them why they shouldn't have a credit card.

729
00:34:46,239 --> 00:34:48,200
Speaker 1: I think it's okay to talk about credit cards and

730
00:34:48,239 --> 00:34:49,920
Speaker 1: talk to them about you know, if you're using a

731
00:34:49,920 --> 00:34:52,120
Speaker 1: credit card, you're borrowing money. So on top of the

732
00:34:52,160 --> 00:34:54,279
Speaker 1: money that you already borrowed, you have to pay back.

733
00:34:54,320 --> 00:34:56,759
Speaker 1: You have to pay back a fee, and that fee

734
00:34:56,800 --> 00:34:59,120
Speaker 1: can get so high that it makes it impossible to

735
00:34:59,160 --> 00:35:02,000
Speaker 1: ever pay off your credit cards. And how dangerous credit

736
00:35:02,040 --> 00:35:05,080
Speaker 1: cards are. I mean, you know, financial problems are often

737
00:35:05,160 --> 00:35:07,920
Speaker 1: caused by debt, which is credit cards are a large

738
00:35:07,960 --> 00:35:10,800
Speaker 1: part of and these can lead to not just financial issues,

739
00:35:10,840 --> 00:35:15,240
Speaker 1: but emotional problems and physical issues, depression. I mean, it's really,

740
00:35:15,840 --> 00:35:18,799
Speaker 1: it's really a pretty serious issue. Um So, I think

741
00:35:18,840 --> 00:35:21,359
Speaker 1: it's it's something that parents should be warning and kids

742
00:35:21,400 --> 00:35:25,360
Speaker 1: about for sure. Contact Yeah, and Liz, the longer we've

743
00:35:25,480 --> 00:35:27,759
Speaker 1: been doing our show How the Money It's been about

744
00:35:27,800 --> 00:35:30,040
Speaker 1: four years now, the more Matt and I we've seen

745
00:35:30,080 --> 00:35:32,759
Speaker 1: the need to discuss the more of the elements of

746
00:35:32,840 --> 00:35:36,520
Speaker 1: behavioral finance, not just the nuts and bolts of how

747
00:35:36,640 --> 00:35:39,560
Speaker 1: certain things work, like credit cards. Right, But so, Yeah,

748
00:35:39,880 --> 00:35:42,480
Speaker 1: in your opinion, is it important for us to broach

749
00:35:42,520 --> 00:35:45,760
Speaker 1: concepts like opportunity costs or confirmation bias with our kids.

750
00:35:45,840 --> 00:35:47,920
Speaker 1: Obviously not with our two year olds, but as they

751
00:35:47,920 --> 00:35:49,439
Speaker 1: get older, like do we want to kind of talk

752
00:35:49,480 --> 00:35:53,879
Speaker 1: about some of those like heavier concepts. Absolutely. I think that,

753
00:35:53,960 --> 00:35:56,200
Speaker 1: you know, the biggest thing when I think about behavioral

754
00:35:56,239 --> 00:36:00,640
Speaker 1: finance is your attitude around finance and your attitude around money.

755
00:36:00,680 --> 00:36:04,520
Speaker 1: Because when you look in media today media, money is

756
00:36:04,560 --> 00:36:08,680
Speaker 1: the number one talked about issue in media, and so

757
00:36:08,680 --> 00:36:11,280
Speaker 1: when you look in media, there's so many different messages

758
00:36:11,320 --> 00:36:14,040
Speaker 1: around money. You know, some people look at the super

759
00:36:14,080 --> 00:36:16,399
Speaker 1: wealthy that's always in the news and they feel envy

760
00:36:16,480 --> 00:36:18,320
Speaker 1: towards them. Well, if I had that, I'd be happy.

761
00:36:18,680 --> 00:36:21,000
Speaker 1: Other people look at money in the news or money

762
00:36:21,000 --> 00:36:23,160
Speaker 1: and media, or their friends or neighbors, and they think,

763
00:36:23,200 --> 00:36:25,960
Speaker 1: while it's greedy to want money, money is evil. It

764
00:36:25,960 --> 00:36:28,480
Speaker 1: turns you, you know, into a bad person if you

765
00:36:28,480 --> 00:36:30,960
Speaker 1: want too much of it. Well, people need to understand,

766
00:36:31,000 --> 00:36:34,160
Speaker 1: and it's our job as parents to filter these messages

767
00:36:34,440 --> 00:36:38,440
Speaker 1: so that kids can have a financial healthy attitude. Is

768
00:36:38,480 --> 00:36:40,240
Speaker 1: to talk to our kids about money as a tool.

769
00:36:40,280 --> 00:36:42,560
Speaker 1: Money is not good or bad. It's just a green

770
00:36:42,600 --> 00:36:45,239
Speaker 1: piece of paper that we used to barter. It's like cows.

771
00:36:45,280 --> 00:36:48,440
Speaker 1: You know, before money was around, So it's just our

772
00:36:48,480 --> 00:36:50,880
Speaker 1: barter system. So money is a tool, and it's a

773
00:36:50,880 --> 00:36:53,080
Speaker 1: tool to be used to reach your goals. Money is

774
00:36:53,120 --> 00:36:56,239
Speaker 1: not going to buy you happiness. However, money is really important,

775
00:36:56,280 --> 00:36:59,120
Speaker 1: whether you like it or not. Money is an important

776
00:36:59,120 --> 00:37:02,440
Speaker 1: part of our world today. And so you know, money

777
00:37:02,480 --> 00:37:06,640
Speaker 1: can be used to reach you know, short term goals

778
00:37:06,680 --> 00:37:09,120
Speaker 1: like wanting to save up for something, or long term

779
00:37:09,120 --> 00:37:10,879
Speaker 1: goals like you want to have your own business at

780
00:37:10,880 --> 00:37:13,440
Speaker 1: some point, or you want to retire early. But they

781
00:37:13,480 --> 00:37:16,840
Speaker 1: need to understand that money is a neutral concept. It

782
00:37:16,960 --> 00:37:18,919
Speaker 1: is just a tool for them, and I think that's

783
00:37:18,960 --> 00:37:21,919
Speaker 1: the most important part when it comes to really having

784
00:37:21,920 --> 00:37:26,600
Speaker 1: a foundation for financially healthy attitudes. All right, Les, I

785
00:37:26,640 --> 00:37:28,680
Speaker 1: got a slightly different question here for you. We all

786
00:37:28,680 --> 00:37:32,960
Speaker 1: love our children obviously, um, and I like, as I

787
00:37:33,040 --> 00:37:35,920
Speaker 1: look ahead a little bit, I see the ability to

788
00:37:35,960 --> 00:37:39,759
Speaker 1: help our kids save for retirement. Right, Like, specifically, say

789
00:37:39,920 --> 00:37:41,640
Speaker 1: you know you got a fourteen fifty year old, they

790
00:37:41,640 --> 00:37:44,080
Speaker 1: get their first job, they start earning money, you can

791
00:37:44,280 --> 00:37:46,880
Speaker 1: help them to contribute to a roth ira and completely

792
00:37:46,920 --> 00:37:49,399
Speaker 1: max that out, assuming that they have earned at least

793
00:37:49,400 --> 00:37:51,760
Speaker 1: that much money, right, And so where do you stand

794
00:37:51,760 --> 00:37:55,040
Speaker 1: when it comes to essentially making sure your kids are

795
00:37:55,120 --> 00:37:57,400
Speaker 1: kind of set for like maybe the first five years

796
00:37:57,400 --> 00:37:59,080
Speaker 1: that they have a job, you know, when they're under

797
00:37:59,120 --> 00:38:01,640
Speaker 1: your roof, to where essentially you know, by the time

798
00:38:01,680 --> 00:38:03,480
Speaker 1: they hit retirement, if they were to not touch that money,

799
00:38:03,520 --> 00:38:05,920
Speaker 1: you know, they would be they're going to be millionaires. So,

800
00:38:05,920 --> 00:38:08,200
Speaker 1: first of all, do you think about that? And secondly, like,

801
00:38:08,400 --> 00:38:11,080
Speaker 1: how do we find that balance between making sure that

802
00:38:11,080 --> 00:38:13,400
Speaker 1: we're taking care of our kids financially and then taking

803
00:38:13,440 --> 00:38:15,680
Speaker 1: other things into account as well, like making sure that

804
00:38:15,719 --> 00:38:18,400
Speaker 1: they are working hard and making sure that they're not

805
00:38:18,480 --> 00:38:22,720
Speaker 1: leading this entitled lifestyle. I think that if you can

806
00:38:22,800 --> 00:38:25,400
Speaker 1: get your kids to start saving for retirement at a

807
00:38:25,480 --> 00:38:29,359
Speaker 1: young age, I mean, that's fantastic. That's everybody's dream for

808
00:38:29,400 --> 00:38:32,120
Speaker 1: your kids to actually really start saving for something that's

809
00:38:32,120 --> 00:38:35,000
Speaker 1: going to have a positive effect on their life. But

810
00:38:35,040 --> 00:38:37,439
Speaker 1: I don't want parents to feel like that's their expectation

811
00:38:37,680 --> 00:38:40,040
Speaker 1: or that's the standard. I think that that's more of

812
00:38:40,160 --> 00:38:43,240
Speaker 1: just wow, you know, they started saving and it actually

813
00:38:43,239 --> 00:38:46,160
Speaker 1: turned into something as they got older, you know. I

814
00:38:46,200 --> 00:38:49,480
Speaker 1: think that really if you're building these smart financial habits

815
00:38:49,480 --> 00:38:51,360
Speaker 1: and if you're building the habit of saving at a

816
00:38:51,400 --> 00:38:53,960
Speaker 1: young age. You're setting your kid up for success and

817
00:38:54,000 --> 00:38:55,560
Speaker 1: they can do it on their own. You know. I

818
00:38:55,600 --> 00:38:58,759
Speaker 1: think for parents, it's very hard for us to put

819
00:38:58,760 --> 00:39:02,440
Speaker 1: ourselves first and to not help our kids financially. But

820
00:39:03,160 --> 00:39:06,600
Speaker 1: there's things out there to help your kids. There's college loans,

821
00:39:06,640 --> 00:39:08,560
Speaker 1: there's you know, I mean, they're they're going to have

822
00:39:08,600 --> 00:39:11,200
Speaker 1: the ability to work after college. The best thing that

823
00:39:11,239 --> 00:39:12,880
Speaker 1: we can do for them is to set them up

824
00:39:12,960 --> 00:39:15,719
Speaker 1: so that they can do it themselves. Gotua. Yeah, there

825
00:39:15,760 --> 00:39:17,880
Speaker 1: was a in the Hound of Money facebook group just

826
00:39:17,920 --> 00:39:21,600
Speaker 1: the other day. There was somebody posted about saving for

827
00:39:21,680 --> 00:39:23,960
Speaker 1: word of their kids college and they were like, my

828
00:39:24,040 --> 00:39:26,440
Speaker 1: husband and I we disagree. I kind of think that

829
00:39:26,480 --> 00:39:28,680
Speaker 1: we should be prioritizing our own retirement and he thinks

830
00:39:28,680 --> 00:39:32,000
Speaker 1: we should be like maxing out their accounts. And those

831
00:39:32,000 --> 00:39:34,480
Speaker 1: are the kind of questions that parents wrestle with. But

832
00:39:34,480 --> 00:39:37,560
Speaker 1: I like that approach. I think teaching them the skills

833
00:39:37,560 --> 00:39:39,600
Speaker 1: that they need. And it's okay if you want to

834
00:39:39,600 --> 00:39:43,320
Speaker 1: to save or to help, but yeah, the the biggest,

835
00:39:43,840 --> 00:39:47,239
Speaker 1: the biggest impact you can have is helping them understand

836
00:39:47,640 --> 00:39:50,680
Speaker 1: the concepts of money. Have that good approach to money.

837
00:39:50,880 --> 00:39:54,719
Speaker 1: I think that's smart when it comes to helping our kids, though,

838
00:39:54,880 --> 00:39:57,319
Speaker 1: LI is like plan for the cost of college when

839
00:39:57,360 --> 00:39:59,360
Speaker 1: it comes to helping them think about where they go

840
00:39:59,440 --> 00:40:02,359
Speaker 1: to school and the amount of student loans they're going

841
00:40:02,440 --> 00:40:04,840
Speaker 1: to take on. I feel like that's one place where

842
00:40:05,280 --> 00:40:08,439
Speaker 1: I don't know, the most recent generation of parents has

843
00:40:08,520 --> 00:40:10,960
Speaker 1: in some ways kind of failed their kids. As we

844
00:40:11,000 --> 00:40:14,279
Speaker 1: see the student loan crisis just continue to rise, like

845
00:40:14,640 --> 00:40:18,120
Speaker 1: and escalating. We see just people with massive, massive levels

846
00:40:18,160 --> 00:40:21,120
Speaker 1: of student loan debt that they can't handle. So how

847
00:40:21,160 --> 00:40:23,280
Speaker 1: should we talk to our kids about, Like those tradeoffs?

848
00:40:23,320 --> 00:40:26,200
Speaker 1: Do you think those are? Those are big trade offs. Gosh,

849
00:40:26,560 --> 00:40:28,880
Speaker 1: they really are. And I'm so glad that people are

850
00:40:28,920 --> 00:40:32,160
Speaker 1: starting to pay more attention to the student loan crisis.

851
00:40:32,560 --> 00:40:35,440
Speaker 1: I think that in the past, like you said before,

852
00:40:35,680 --> 00:40:38,200
Speaker 1: it's just been this automatic, Well, you go to college

853
00:40:38,480 --> 00:40:40,719
Speaker 1: after after high school. You know, that's just what you do,

854
00:40:40,760 --> 00:40:43,279
Speaker 1: and you don't really think about the financial implications of it.

855
00:40:43,640 --> 00:40:46,160
Speaker 1: College is one of the biggest investments you're going to

856
00:40:46,239 --> 00:40:48,200
Speaker 1: make in your life, and so it should be looked

857
00:40:48,200 --> 00:40:49,839
Speaker 1: at the way that you would look at any other

858
00:40:49,880 --> 00:40:51,879
Speaker 1: big purchase. You would never just go buy a car

859
00:40:52,360 --> 00:40:53,960
Speaker 1: and not think about what you're going to get out

860
00:40:53,960 --> 00:40:56,520
Speaker 1: of it and your reasons for buying it and is

861
00:40:56,560 --> 00:40:59,480
Speaker 1: it worth that much money. Same thing with colleges. You know,

862
00:40:59,560 --> 00:41:03,000
Speaker 1: parents should first talk to their kids about the expense

863
00:41:03,040 --> 00:41:05,520
Speaker 1: of college. And you know, there are obviously parents there

864
00:41:05,560 --> 00:41:08,400
Speaker 1: who can afford to buy, you know, to pay for

865
00:41:08,400 --> 00:41:12,400
Speaker 1: their kids full tuition at more expensive schools, but most can't.

866
00:41:12,760 --> 00:41:15,000
Speaker 1: So you know, it's important to talk to your kids

867
00:41:15,000 --> 00:41:17,400
Speaker 1: that this is an investment. You know, talk to them

868
00:41:17,440 --> 00:41:20,160
Speaker 1: about how much you can pay and how much they're

869
00:41:20,160 --> 00:41:22,200
Speaker 1: going to have to take out in loans, and then

870
00:41:22,280 --> 00:41:25,239
Speaker 1: let them make the decisions about you know, how much

871
00:41:25,320 --> 00:41:29,000
Speaker 1: finances should should play into that. So if you've got

872
00:41:29,000 --> 00:41:32,120
Speaker 1: three schools that you're looking at, one is really expensive

873
00:41:32,160 --> 00:41:36,040
Speaker 1: and you know one is less expensive, show them say, well,

874
00:41:36,040 --> 00:41:37,719
Speaker 1: this is what we can pay. So you're going to

875
00:41:37,800 --> 00:41:39,920
Speaker 1: be responsible for this. This is what it's going to

876
00:41:40,000 --> 00:41:42,400
Speaker 1: look like. When you graduate college. You have to repay

877
00:41:42,400 --> 00:41:45,080
Speaker 1: your loans. So let's say you make you know, this

878
00:41:45,120 --> 00:41:49,360
Speaker 1: amount of money monthly, Well, automatically your loan is going

879
00:41:49,400 --> 00:41:50,960
Speaker 1: to be taken out of that and that's what you're

880
00:41:50,960 --> 00:41:53,560
Speaker 1: gonna have left. And you know it's it's our parents

881
00:41:53,560 --> 00:41:56,319
Speaker 1: responsibility to explain this to kids. Kids are coming out

882
00:41:56,320 --> 00:41:58,400
Speaker 1: of school just being like, wait, what I have to

883
00:41:58,400 --> 00:42:01,440
Speaker 1: pay these student loans now I've got hundreds of thousands

884
00:42:01,480 --> 00:42:04,920
Speaker 1: of dollars. Well, yeah, I mean that's that's our responsibility

885
00:42:05,000 --> 00:42:08,640
Speaker 1: to explain to our kids. And you know, also, I

886
00:42:08,680 --> 00:42:10,600
Speaker 1: mean when you think about what you want to you know,

887
00:42:10,760 --> 00:42:12,719
Speaker 1: most kids don't know what they want to do with

888
00:42:12,840 --> 00:42:15,799
Speaker 1: their life, but some do. And if you wanted to

889
00:42:15,840 --> 00:42:18,879
Speaker 1: be something, that's really when you get older, you know

890
00:42:18,960 --> 00:42:20,960
Speaker 1: you're not gonna make a lot of money. It's your passion,

891
00:42:21,160 --> 00:42:23,160
Speaker 1: you know, and you don't really care that much. Well,

892
00:42:23,160 --> 00:42:25,759
Speaker 1: should you go to a really expensive school for that

893
00:42:25,960 --> 00:42:28,719
Speaker 1: or maybe go first school to a school that's less expensive?

894
00:42:29,320 --> 00:42:32,160
Speaker 1: You know, the expensive one is not always the right choice.

895
00:42:32,239 --> 00:42:35,680
Speaker 1: You've got to think about how much you can spend,

896
00:42:35,800 --> 00:42:37,359
Speaker 1: what you want to pay off later, and how much

897
00:42:37,360 --> 00:42:40,040
Speaker 1: you're going to make afterwards. I think that's so true.

898
00:42:40,320 --> 00:42:42,920
Speaker 1: You know. The thing is, I feel oftentimes students as

899
00:42:42,960 --> 00:42:44,799
Speaker 1: are going off to college like they know what they're

900
00:42:44,800 --> 00:42:47,560
Speaker 1: signing up for from just like a dollar standpoint. But

901
00:42:48,040 --> 00:42:50,080
Speaker 1: I think one of our roles as parents is to

902
00:42:50,160 --> 00:42:53,239
Speaker 1: add color to that knowledge. Just like with kids, like

903
00:42:53,320 --> 00:42:55,640
Speaker 1: earlier we're talking about giving money away, It's like, okay, cool,

904
00:42:55,960 --> 00:42:58,360
Speaker 1: kids like I will give some of my money away.

905
00:42:58,560 --> 00:43:01,200
Speaker 1: But until you can can connect with reality, you know,

906
00:43:01,239 --> 00:43:02,960
Speaker 1: in the case of your son, connecting that with a

907
00:43:03,040 --> 00:43:07,239
Speaker 1: nonprofit or an organization that helps sharks, all of a sudden, Oh,

908
00:43:07,280 --> 00:43:09,400
Speaker 1: this is something that is way more real. And so

909
00:43:09,480 --> 00:43:12,280
Speaker 1: I think, I mean even just like thinking through, Okay,

910
00:43:12,480 --> 00:43:14,279
Speaker 1: if you have this much in student loans by the

911
00:43:14,320 --> 00:43:15,759
Speaker 1: time you graduate, what is that going to look like?

912
00:43:16,000 --> 00:43:17,480
Speaker 1: This is what this is gonna mean. This is like,

913
00:43:17,520 --> 00:43:19,680
Speaker 1: this is how your you know your pa is going

914
00:43:19,719 --> 00:43:22,239
Speaker 1: to be impacted. This is what car you're not going

915
00:43:22,280 --> 00:43:24,239
Speaker 1: to be able to afford. I mean, just some of

916
00:43:24,280 --> 00:43:26,680
Speaker 1: these real, tangible things that just bring it to life.

917
00:43:26,960 --> 00:43:29,560
Speaker 1: I'll say I had zero idea, honestly, the amount of

918
00:43:29,560 --> 00:43:31,279
Speaker 1: money I was going to take on as I went

919
00:43:31,320 --> 00:43:32,680
Speaker 1: to school. That was one of those things that were

920
00:43:32,719 --> 00:43:34,440
Speaker 1: like we didn't even have that discussion. I didn't really know.

921
00:43:34,480 --> 00:43:35,960
Speaker 1: It was like, where do you want to go to school?

922
00:43:36,040 --> 00:43:37,480
Speaker 1: Was kind of the question that and I was like,

923
00:43:37,640 --> 00:43:38,680
Speaker 1: I think I want to go here. And it was

924
00:43:38,719 --> 00:43:40,480
Speaker 1: a private school, and so after the first two years

925
00:43:40,480 --> 00:43:41,919
Speaker 1: I kind of kind of dawned on me. Wait a second,

926
00:43:41,920 --> 00:43:43,640
Speaker 1: I'm racking up student loan debt, and so I came

927
00:43:43,680 --> 00:43:45,840
Speaker 1: back in state to get the rest of my education

928
00:43:45,880 --> 00:43:48,240
Speaker 1: for free. But when like, we never had that discussion.

929
00:43:48,320 --> 00:43:50,799
Speaker 1: So some kids don't even know that. Yeah, they're not

930
00:43:50,800 --> 00:43:53,400
Speaker 1: getting that at all. Like so it's not even just

931
00:43:53,440 --> 00:43:55,960
Speaker 1: the coloring, but it's like the no way, wait a second,

932
00:43:56,200 --> 00:43:57,839
Speaker 1: you have to know that you're actually taking on student

933
00:43:57,880 --> 00:43:59,560
Speaker 1: loan debt here. I didn't even realize that when I was.

934
00:43:59,760 --> 00:44:01,920
Speaker 1: So let's definitely start with the black and white lines

935
00:44:01,920 --> 00:44:03,560
Speaker 1: and then we can start adding some of that color

936
00:44:03,600 --> 00:44:06,440
Speaker 1: after effect. Yeah, and it's funny, you know, parents, I

937
00:44:06,480 --> 00:44:08,400
Speaker 1: often hear them say, well, I don't want to stress

938
00:44:08,440 --> 00:44:10,160
Speaker 1: them out, you know, I don't want to stress them

939
00:44:10,160 --> 00:44:13,680
Speaker 1: out thinking about their college loans. Well, I mean they're

940
00:44:13,680 --> 00:44:17,000
Speaker 1: going to come out with the college loans. That's just

941
00:44:17,400 --> 00:44:22,120
Speaker 1: far more dangerous and you know, debilitating really when you

942
00:44:22,200 --> 00:44:24,000
Speaker 1: come out with that kind of loans. So we owe

943
00:44:24,040 --> 00:44:26,799
Speaker 1: it to them, We owe them to understand how how

944
00:44:26,840 --> 00:44:28,799
Speaker 1: stressful it's going to be when they get out, and yeah,

945
00:44:28,840 --> 00:44:30,840
Speaker 1: bring bring color into it, you know, set up a

946
00:44:30,880 --> 00:44:34,000
Speaker 1: whole like simulation Okay, so you get out of school

947
00:44:34,120 --> 00:44:36,440
Speaker 1: and you work for this business and you're gonna make

948
00:44:36,560 --> 00:44:39,440
Speaker 1: fifty dollars a year, and here's your apartment, and this

949
00:44:39,520 --> 00:44:41,680
Speaker 1: is what you're gonna pay here, and really like spell

950
00:44:41,719 --> 00:44:44,120
Speaker 1: it out for them so they understand exactly what it

951
00:44:44,160 --> 00:44:46,360
Speaker 1: means to them. Yeah, this is what your life is

952
00:44:46,400 --> 00:44:48,000
Speaker 1: likely going to look like. You could dress them out

953
00:44:48,000 --> 00:44:49,440
Speaker 1: like a little bit on the front end or a

954
00:44:49,600 --> 00:44:53,080
Speaker 1: ton on the back end, and yet I'd prefer to,

955
00:44:53,280 --> 00:44:56,880
Speaker 1: you know, go with the eyes wide open Approachally. Uh, Liz,

956
00:44:56,960 --> 00:44:59,319
Speaker 1: this has been such a great conversation, so many good

957
00:44:59,640 --> 00:45:01,279
Speaker 1: take a ways, and I think a lot of help

958
00:45:01,360 --> 00:45:04,279
Speaker 1: for for Matt and I as we parent seven kids

959
00:45:04,320 --> 00:45:06,440
Speaker 1: separately in our own homes, and then for our listeners

960
00:45:06,480 --> 00:45:09,520
Speaker 1: to who have children. So, Liz, where can our listeners

961
00:45:09,560 --> 00:45:11,360
Speaker 1: find out more about your book and more about what

962
00:45:11,400 --> 00:45:13,600
Speaker 1: you're up to. Well, the book is called Beyond Piggy

963
00:45:13,640 --> 00:45:16,920
Speaker 1: Banks and Lemonade stands how to teach young kids about finance,

964
00:45:17,040 --> 00:45:19,680
Speaker 1: and you can find me on my website. Awesome, Liz,

965
00:45:19,800 --> 00:45:22,080
Speaker 1: thank you again for joining us. Thanks so much for

966
00:45:22,160 --> 00:45:24,480
Speaker 1: having me. I really enjoyed it all right, Matt, that

967
00:45:24,480 --> 00:45:27,600
Speaker 1: was a great combo. Liz wrote the book on how

968
00:45:27,640 --> 00:45:32,160
Speaker 1: to help Kids become Financially Savvy and so many great insights.

969
00:45:32,200 --> 00:45:35,080
Speaker 1: I think for anybody who's like all right, they feel

970
00:45:35,120 --> 00:45:37,799
Speaker 1: woefully unprepared when it comes to helping their kids figure

971
00:45:37,840 --> 00:45:40,280
Speaker 1: out money stuff. So, yeah, what was your big takeaway

972
00:45:40,320 --> 00:45:42,560
Speaker 1: from this, combo? I mean, just overall, I'll say, before

973
00:45:42,560 --> 00:45:45,960
Speaker 1: I get specific, I just appreciate Liz's intentionality and just

974
00:45:46,000 --> 00:45:48,320
Speaker 1: how proactive. I mean, this is her background, she was

975
00:45:48,400 --> 00:45:52,680
Speaker 1: raised by financial planners. It's it's literally in her blood.

976
00:45:53,000 --> 00:45:55,960
Speaker 1: But I just I so appreciate her just her positive

977
00:45:56,000 --> 00:45:58,759
Speaker 1: approach and just looking for ways to incorporate just some

978
00:45:58,800 --> 00:46:01,200
Speaker 1: of these different lessons into her day to day to

979
00:46:01,200 --> 00:46:02,640
Speaker 1: where her kids are gonna be able to pick up

980
00:46:02,640 --> 00:46:04,920
Speaker 1: on those things. But man, for me, I'll say that

981
00:46:05,440 --> 00:46:07,960
Speaker 1: my my one clear takeaway from this is to make

982
00:46:08,000 --> 00:46:11,680
Speaker 1: it fun and exciting, regardless if we're talking about earning money,

983
00:46:11,719 --> 00:46:13,560
Speaker 1: if we're talking about saving and investing, if we're talking

984
00:46:13,560 --> 00:46:16,160
Speaker 1: about giving money away, but just finding ways to make

985
00:46:16,160 --> 00:46:19,880
Speaker 1: it exciting for the kids. Uh, if it's fun, duh,

986
00:46:19,960 --> 00:46:22,200
Speaker 1: they're gonna be They're gonna be way more likely to

987
00:46:22,239 --> 00:46:25,279
Speaker 1: do it. And it's something that if you were to

988
00:46:25,320 --> 00:46:28,400
Speaker 1: ask me, hey, when it comes to finances and your kids,

989
00:46:28,600 --> 00:46:31,160
Speaker 1: you shouldn't be fun or boring, like I would say fun.

990
00:46:31,560 --> 00:46:33,839
Speaker 1: But if I look at what I have done, like

991
00:46:33,880 --> 00:46:35,719
Speaker 1: there there have been some small ways that I think

992
00:46:35,719 --> 00:46:37,880
Speaker 1: I've worked to make it fun, but I can definitely

993
00:46:37,960 --> 00:46:41,319
Speaker 1: make it more fun and exciting and just real, you know,

994
00:46:41,400 --> 00:46:44,680
Speaker 1: like I specifically she talked about the needs or Once game.

995
00:46:45,239 --> 00:46:47,440
Speaker 1: I love that so much, and it's just I like

996
00:46:47,480 --> 00:46:49,520
Speaker 1: little formulas like that where I can just take that,

997
00:46:49,719 --> 00:46:52,399
Speaker 1: take that principle and start incorporating it into our life

998
00:46:52,400 --> 00:46:54,800
Speaker 1: when it comes to maybe stuff that the kids wants,

999
00:46:55,040 --> 00:46:57,040
Speaker 1: maybe things that we're looking at buying. Is this something

1000
00:46:57,080 --> 00:46:59,080
Speaker 1: that we need or is this something I just want?

1001
00:46:59,360 --> 00:47:01,160
Speaker 1: And with those things in mind, how do we make

1002
00:47:01,200 --> 00:47:03,640
Speaker 1: an informed decision? Because it's not just about teaching kids

1003
00:47:03,680 --> 00:47:05,360
Speaker 1: how to handle their money well, but it's you know,

1004
00:47:05,400 --> 00:47:07,279
Speaker 1: when it comes to purchases and things like that, we

1005
00:47:07,320 --> 00:47:09,759
Speaker 1: want to make sure that these kids are savvy consumers

1006
00:47:09,760 --> 00:47:12,160
Speaker 1: as well, and that goes way beyond just understanding how

1007
00:47:12,239 --> 00:47:14,760
Speaker 1: money works. But that, yeah, that was my big takeaway.

1008
00:47:14,760 --> 00:47:16,799
Speaker 1: And make it fun and exciting. Play games like needs

1009
00:47:16,880 --> 00:47:19,120
Speaker 1: or Just Once, What was your your big takeaway, Yeah,

1010
00:47:19,160 --> 00:47:21,040
Speaker 1: I like that one. I think my big one was

1011
00:47:21,120 --> 00:47:23,279
Speaker 1: when she said you, basically, you don't have to be

1012
00:47:23,320 --> 00:47:25,759
Speaker 1: a guru to help others. And I think there are

1013
00:47:25,760 --> 00:47:30,080
Speaker 1: a lot of parents that lack confidence that they know

1014
00:47:30,120 --> 00:47:32,759
Speaker 1: how to translate some of these concepts to their kids.

1015
00:47:32,960 --> 00:47:34,120
Speaker 1: But I think you're right. I think if you make

1016
00:47:34,120 --> 00:47:36,440
Speaker 1: it fun and you just realized, listen, I don't have

1017
00:47:36,480 --> 00:47:38,680
Speaker 1: to be perfect with money to teach my kids the

1018
00:47:38,719 --> 00:47:41,839
Speaker 1: basics the most important things. Let's say you've never read

1019
00:47:41,880 --> 00:47:44,879
Speaker 1: a personal finance book and this is literally your first

1020
00:47:44,880 --> 00:47:47,560
Speaker 1: episode of listening to how the money. That's okay. Like,

1021
00:47:47,920 --> 00:47:50,640
Speaker 1: not that it's not important to continue to grow your

1022
00:47:50,640 --> 00:47:53,840
Speaker 1: own personal finance knowledge, but you can really get started

1023
00:47:53,880 --> 00:47:56,080
Speaker 1: with your kids by talking about some of those basic

1024
00:47:56,120 --> 00:48:00,160
Speaker 1: building blocks that are basically universal in nature. I just

1025
00:48:00,239 --> 00:48:02,680
Speaker 1: think it's really helpful to be told that, especially by

1026
00:48:02,800 --> 00:48:05,560
Speaker 1: the lady who wrote the book on this concept, Like, hey,

1027
00:48:05,560 --> 00:48:07,279
Speaker 1: guess what, you can do it and you don't have

1028
00:48:07,320 --> 00:48:09,560
Speaker 1: to be a genius to do so. But Matt, let's

1029
00:48:09,560 --> 00:48:11,160
Speaker 1: get back to the beer that we had while we

1030
00:48:11,160 --> 00:48:14,000
Speaker 1: were talking to live. This one is called Pioneer E.

1031
00:48:14,200 --> 00:48:17,200
Speaker 1: S B. It's by bare Like Beer Company. This one

1032
00:48:17,239 --> 00:48:19,560
Speaker 1: was sent to us by listener Brandon. Thank you Brandon

1033
00:48:19,760 --> 00:48:22,200
Speaker 1: and Matt. What your thoughts on this beer? H First

1034
00:48:22,200 --> 00:48:24,160
Speaker 1: of all, I mean, I'll say, Brandon, kudos to you

1035
00:48:24,239 --> 00:48:27,200
Speaker 1: for getting this to us as soon as humanly possible.

1036
00:48:27,239 --> 00:48:29,880
Speaker 1: I think it was canned like the week or just

1037
00:48:29,960 --> 00:48:32,359
Speaker 1: even days before he picked them up to send our way,

1038
00:48:32,840 --> 00:48:36,440
Speaker 1: and we're actually enjoying this, uh, barely three weeks from

1039
00:48:36,440 --> 00:48:39,279
Speaker 1: the time that it was canned, which is amazing. That

1040
00:48:39,520 --> 00:48:42,520
Speaker 1: is why it has what I will call that tingly

1041
00:48:42,760 --> 00:48:45,160
Speaker 1: sensation when you drink some of these fresh hot beers.

1042
00:48:45,280 --> 00:48:47,120
Speaker 1: I believe the best way to describe it is that

1043
00:48:47,200 --> 00:48:50,200
Speaker 1: it is a beer that's still alive. It's it feels

1044
00:48:50,200 --> 00:48:52,720
Speaker 1: like it's in the canon, is still evolving and changing,

1045
00:48:52,719 --> 00:48:54,560
Speaker 1: and when you drink it, it it feels like it's still

1046
00:48:54,600 --> 00:48:58,200
Speaker 1: squirming around a little bit, which is a weird image.

1047
00:48:58,200 --> 00:48:59,680
Speaker 1: But man, this is a delicious beer. So it was

1048
00:48:59,719 --> 00:49:02,880
Speaker 1: an E s B, which means it's an extra special bitter.

1049
00:49:03,440 --> 00:49:05,880
Speaker 1: I honestly don't know a ton about E s B s.

1050
00:49:05,960 --> 00:49:08,880
Speaker 1: Do you know? I don't, But this was delicious. I mean,

1051
00:49:08,880 --> 00:49:10,759
Speaker 1: it's fresh hops, so it's got those happy flavors, but

1052
00:49:10,800 --> 00:49:14,239
Speaker 1: it's not like super hot hop forward like an I

1053
00:49:14,320 --> 00:49:16,560
Speaker 1: p A you said super tingly. I think the best

1054
00:49:16,920 --> 00:49:21,080
Speaker 1: way I can describe a fresh hop versus uh standard

1055
00:49:21,080 --> 00:49:24,480
Speaker 1: hopped beer, So fresh hops are literally the whole hops

1056
00:49:24,520 --> 00:49:28,759
Speaker 1: after they're harvested. But hops go bad just like anything else,

1057
00:49:28,840 --> 00:49:31,560
Speaker 1: and so normally they have to be pelotized and that's

1058
00:49:31,600 --> 00:49:34,080
Speaker 1: why you can make hoppy beers all year long. But

1059
00:49:34,280 --> 00:49:36,680
Speaker 1: these beers, fresh hot beers are made with those fresh

1060
00:49:36,680 --> 00:49:39,520
Speaker 1: pick hops and so off the vine. Yeah, it's like

1061
00:49:39,600 --> 00:49:41,319
Speaker 1: times of the essence making these beers. But the best

1062
00:49:41,320 --> 00:49:44,400
Speaker 1: way I can describe the differences between like eating fresh

1063
00:49:44,480 --> 00:49:48,040
Speaker 1: veggies and frozen veggies, So like I don't mind frozen broccoli,

1064
00:49:48,239 --> 00:49:51,359
Speaker 1: but fresh broccoli is better, and so yeah, I think

1065
00:49:51,719 --> 00:49:55,120
Speaker 1: that's true man, And it's rare or or just obviously

1066
00:49:55,160 --> 00:49:57,080
Speaker 1: it's it's a very limited time of year where you

1067
00:49:57,120 --> 00:49:59,759
Speaker 1: can get fresh hot beers. And this one was just

1068
00:49:59,800 --> 00:50:03,080
Speaker 1: a really good example. And yeah, it tasted tasted freshly fresh.

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00:50:03,120 --> 00:50:04,719
Speaker 1: Are really enjoyed it. So a big, big thanks to

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00:50:04,719 --> 00:50:06,719
Speaker 1: Brandon for sending this one our way. Yeah, it says

1071
00:50:06,719 --> 00:50:08,920
Speaker 1: when the cane here, this is made with mount Hood

1072
00:50:08,920 --> 00:50:12,480
Speaker 1: hops from Coleman Hop Farm and so it's brewed and caned.

1073
00:50:12,520 --> 00:50:15,160
Speaker 1: They're in Portland, Oregon. So yeah, Joel, you and I

1074
00:50:15,200 --> 00:50:17,880
Speaker 1: were incredibly lucky to get her hands on these beers.

1075
00:50:18,280 --> 00:50:21,239
Speaker 1: Thanks again to Brandon for sending them our way, no doubt.

1076
00:50:21,239 --> 00:50:23,359
Speaker 1: All right, that's gonna do it for this episode. If

1077
00:50:23,400 --> 00:50:25,600
Speaker 1: you want show notes and a link to Liz's website

1078
00:50:25,640 --> 00:50:28,040
Speaker 1: Loses Book, we'll put those on our website at how

1079
00:50:28,120 --> 00:50:30,200
Speaker 1: to money dot com. That's right, and that's gonna be it.

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00:50:30,320 --> 00:50:33,239
Speaker 1: So until next time, Best Friends Out, Best Friends Out,