WEBVTT - Fast-Tracking Your Kids To Financial Success #587 0:00:00.040 --> 0:00:02.920 Welcome to How the Money. I'm Joel and I am that, 0:00:03.160 --> 0:00:07.119 and today we're discussing fast tracking your kids to financial success. 0:00:26.480 --> 0:00:28.720 You know, Joel, since this is a kid's episode, because 0:00:28.720 --> 0:00:31.840 I mean, we should be having an an a beer, 0:00:31.960 --> 0:00:35.040 a non alcoholic beverage instead of our typical craft beer. 0:00:35.400 --> 0:00:36.960 Maybe we can all assess me street and have like 0:00:36.960 --> 0:00:40.520 Cookie Monster deliver the message, or at least a butter beer. Sure, 0:00:40.760 --> 0:00:44.120 which they never addressed this in the Harry Potter books, 0:00:44.120 --> 0:00:46.200 but it does seem like there's a small trace amount 0:00:46.200 --> 0:00:49.280 of alcohol and butter beer because like the Dobby whatever 0:00:49.280 --> 0:00:51.519 would get drunk on butter beer. I guess it just 0:00:51.560 --> 0:00:55.240 didn't affect the kids as much. Maybe it only affected household. 0:00:55.360 --> 0:00:57.400 It's just yeah, our our kids are talking about it 0:00:57.440 --> 0:00:59.400 the other day. They're like, well, we can have butter beer, 0:00:59.440 --> 0:01:01.960 but we can't have are whiskey. And then Kate never talking, 0:01:01.960 --> 0:01:04.920 We're like, wait a minute, technically it's not addressed. But 0:01:04.959 --> 0:01:08.120 I do think there's small amounts of alcohol in butter beer. 0:01:08.160 --> 0:01:09.800 But that's not what we're talking about today. We're talking 0:01:09.800 --> 0:01:12.080 specifically about kids and how it is that you can 0:01:12.080 --> 0:01:14.880 give your kids just a massive leg up um I 0:01:14.880 --> 0:01:19.240 feel oftentimes when we're in young adulthood, we say to ourselves, 0:01:19.360 --> 0:01:22.119 if only I had known this ten years ago, twenty 0:01:22.200 --> 0:01:23.800 years ago, if if only I had been able to 0:01:23.840 --> 0:01:25.840 start my life with this knowledge that I have now, 0:01:25.840 --> 0:01:28.960 I would have made some different decisions. And so basically 0:01:29.080 --> 0:01:31.960 that is what we're talking about today, the different lessons 0:01:32.000 --> 0:01:35.280 that you can begin teaching your kids who are still 0:01:35.319 --> 0:01:37.880 at home, but then also specifically some of the accounts 0:01:37.920 --> 0:01:41.520 and some of the specific strategies that you can employ 0:01:41.640 --> 0:01:43.959 with your kids in order to get them investing for 0:01:44.080 --> 0:01:45.679 their future. And we hear that from how the Money 0:01:45.680 --> 0:01:47.680 Listeners a lot they're like, man, I wish I had 0:01:47.680 --> 0:01:49.800 this information when I was a lot younger. Some of 0:01:49.880 --> 0:01:52.680 some of who are something upon this podcast late thirties, 0:01:52.720 --> 0:01:55.280 early forties or even later in their life, and they're like, man, 0:01:55.280 --> 0:01:57.200 this has been transformational. But if I had known this 0:01:57.240 --> 0:01:59.760 stuff when I was early twenties, I would be crushing 0:01:59.760 --> 0:02:02.160 it now, which is true, like the early even more 0:02:02.520 --> 0:02:05.760 transform I would be a beautiful butterfly already instead of 0:02:05.800 --> 0:02:08.200 in the pupa state. Right there's a lot of kids 0:02:08.200 --> 0:02:10.120 stuff that is coming to mind. Right now, We're not 0:02:10.160 --> 0:02:12.160 going to incorporate more into the you might even sink 0:02:12.160 --> 0:02:15.720 the Reading Rainbow soundtrack Mitochondria. Do you remember Mitochondria? That's 0:02:15.720 --> 0:02:18.320 the powerhouse of the cell. Would be like some schoolhouse 0:02:18.320 --> 0:02:20.440 for rocks. I mean, there's so many options here, lots 0:02:20.639 --> 0:02:22.679 of different things we learned in school. But before we 0:02:22.720 --> 0:02:24.640 get rolling, man, I want to mention something We've been 0:02:24.639 --> 0:02:27.120 emailing a little bit with a listener who actually happens 0:02:27.160 --> 0:02:30.480 to be Ukrainian. He and he's also living in Ukraine, 0:02:30.919 --> 0:02:33.480 and he was asking about maybe some sort of financial 0:02:33.480 --> 0:02:36.360 goals that he had, and he kind of casually mentions 0:02:36.400 --> 0:02:39.760 how his savings and financial goals have been on pause 0:02:39.960 --> 0:02:44.239 for the past eight months, and oh, yeah, I wonder why, 0:02:44.280 --> 0:02:48.440 maybe because Russia has completely invaded his country. But I 0:02:48.440 --> 0:02:50.919 don't know, he simultaneously. He didn't put that out there 0:02:50.960 --> 0:02:53.040 just for us to like feel bad for him necessarily. 0:02:53.040 --> 0:02:55.239 He was just a matter of factually stating that, like, yeah, 0:02:55.280 --> 0:02:57.960 you know, I haven't been able to pursue my goals 0:02:57.960 --> 0:02:59.760 like I have been, but I'm really excited for things 0:02:59.760 --> 0:03:01.520 to get about going again. I mean, I wanted to 0:03:01.520 --> 0:03:03.560 share that just because when you hear something like that, 0:03:03.600 --> 0:03:07.400 it just gives you just some incredible perspective, right, some 0:03:07.440 --> 0:03:08.920 of the problems that we have in our lives that 0:03:09.000 --> 0:03:12.280 seem to loom so large in our minds, something causing 0:03:12.320 --> 0:03:15.400 us stress. In reality, they're not all that big. And 0:03:15.520 --> 0:03:17.840 especially if you're a listener and you live here in 0:03:17.880 --> 0:03:20.480 the US, I think, I mean, I I feel that 0:03:20.520 --> 0:03:22.400 I've got a lot to be thankful for within my 0:03:22.480 --> 0:03:25.079 own life, not only for you know, me and you 0:03:25.280 --> 0:03:27.280 and the business and our families, but just also for 0:03:27.360 --> 0:03:30.440 our country. Even though we're all aware of what's been 0:03:30.480 --> 0:03:32.400 going on over in Ukraine. When you kind of have 0:03:32.480 --> 0:03:34.400 a I guess just like a personal somewhat of a 0:03:34.440 --> 0:03:37.480 personal connection that brings it to life a whole lot more. 0:03:37.680 --> 0:03:39.200 You're right, man, that does like and it just makes 0:03:39.240 --> 0:03:41.360 me think, like, not that our country doesn't have problems 0:03:41.400 --> 0:03:43.120 that need to be worked on, that need to be discussed, 0:03:43.560 --> 0:03:45.880 but man, we're really lucky to live here. There's so 0:03:45.920 --> 0:03:48.280 many good things about living in the United States, and 0:03:48.480 --> 0:03:50.760 it doesn't My heart goes out to our listener in Ukraine. 0:03:50.800 --> 0:03:54.160 I hope that his country is able to restore their 0:03:54.400 --> 0:03:56.720 their freedom, their independence in the near future, and then 0:03:56.720 --> 0:03:59.680 he's able to get his you know, goals of financial independence, 0:03:59.720 --> 0:04:02.360 restore it soon too, and our heart goes out to 0:04:02.360 --> 0:04:05.000 everybody in Ukraine, like your cause still matters over here, 0:04:05.080 --> 0:04:08.000 and it's it's still something we're thinking about and talking about. 0:04:08.280 --> 0:04:10.400 But Matt, let's move on. Let's let's mention the beer 0:04:10.440 --> 0:04:13.960 that we're having on this episode. This is Postmeister october Fest. 0:04:14.040 --> 0:04:16.919 It's by odd story. It's which is a brewery actually 0:04:16.920 --> 0:04:18.880 had of Chattanoogat picked this beer up when I was 0:04:18.960 --> 0:04:21.240 there just a couple of weekends ago, did you, Yeah, 0:04:21.360 --> 0:04:23.760 so you actually were at this brewery. No, just a 0:04:24.040 --> 0:04:26.880 local beer store there, which which is honestly it's Imbibe. 0:04:26.920 --> 0:04:29.600 I think it's what it's called in in Chattanooga. Fantastic 0:04:29.680 --> 0:04:32.000 beer store. Yeah, great selection. So next time you're in 0:04:32.040 --> 0:04:34.520 Chattanooga one, I'll recommend you some hikes if you email me, 0:04:34.960 --> 0:04:37.120 but I'll also recommend that you go to Imbibe and 0:04:37.600 --> 0:04:39.920 pick up some beers there. So all right, Matt, let's 0:04:40.120 --> 0:04:42.040 let's get onto the subject in hand. We're talking about 0:04:42.080 --> 0:04:46.920 fast tracking your kids to financial success. And for some reason, 0:04:47.080 --> 0:04:49.520 as we were fast tracking, right, I started maybe think 0:04:49.560 --> 0:04:52.360 about racing. And I'm not a huge racing fan, but 0:04:52.680 --> 0:04:56.000 Americans have kind of You're always challenging me to foot races, like, 0:04:56.600 --> 0:04:58.520 just take it easy, dude, going for a walk. Well, 0:04:58.560 --> 0:05:01.040 I prefer wrestling, but you know, foot races are fun too. 0:05:01.320 --> 0:05:03.960 But Formula one has kind of come back in vogue 0:05:04.040 --> 0:05:09.600 with the success of Netflix's Drive to Survive. Yeah, and 0:05:09.800 --> 0:05:12.360 and it's honestly, it's a really it's a really interesting show. 0:05:12.440 --> 0:05:14.200 I never was in the Formula one and I still 0:05:14.200 --> 0:05:15.920 don't really like watch races or anything like that, but 0:05:16.320 --> 0:05:18.159 the show. I watched some of that show at least, 0:05:18.200 --> 0:05:21.200 and it was super interesting. But the interesting thing Matt 0:05:21.279 --> 0:05:24.040 about being a Formula one driver is is that the 0:05:24.360 --> 0:05:27.280 driver with the fastest lap time in trials the day 0:05:27.360 --> 0:05:29.560 before the race, they get the what's known as the 0:05:29.600 --> 0:05:32.080 pole position, Right, they get the top spot in the race. 0:05:32.320 --> 0:05:35.120 Is that right there at the finish line, right at 0:05:35.120 --> 0:05:37.600 the front starting point, so as also becomes the finish 0:05:37.640 --> 0:05:39.600 line at some point later on the race. And uh, 0:05:40.040 --> 0:05:42.040 but the pole position, we know so much about racing. 0:05:43.440 --> 0:05:46.280 The pole position though it's crucial. It is this crucial 0:05:46.320 --> 0:05:49.320 advantage to being able to win the race because, uh, 0:05:50.040 --> 0:05:53.480 the stats show that if you start first, the person 0:05:53.520 --> 0:05:55.680 first out of the gate. They win more than forty 0:05:55.760 --> 0:05:58.680 two percent of the time, So there's sixteen cars. Makes 0:05:58.680 --> 0:05:59.920 a lot of sense. But if you're in first place 0:05:59.920 --> 0:06:03.400 to begin with, the chances are overwhelmingly you have a 0:06:03.520 --> 0:06:06.640 much higher chance of success. Where you start matters. You 0:06:06.640 --> 0:06:08.400 don't have to pass anybody, you're just I guess you're 0:06:08.400 --> 0:06:10.280 just out there just driving really fast. You gotta stay 0:06:10.279 --> 0:06:11.640 in front of people, right, that's all you gotta do 0:06:11.800 --> 0:06:14.400 now having to worry about hitting tires with the other guys. Right. 0:06:14.440 --> 0:06:16.159 But that's the thing with Formula one is that they 0:06:16.279 --> 0:06:18.080 got those exposed tires, and I'm always like, how do 0:06:18.160 --> 0:06:20.440 they not just like just launch, just jump onto each 0:06:20.440 --> 0:06:22.760 other until makes it crazy? I mean that like Nascar 0:06:22.800 --> 0:06:24.440 where you can kind of like push into each other 0:06:24.600 --> 0:06:27.480 and bump each other into game finches. Really it's it's 0:06:27.520 --> 0:06:31.400 pretty nuts. But anilimeters Joel millimeters. But where you're starting 0:06:31.480 --> 0:06:34.800 right impacts impacts how you finish in a significant way 0:06:35.080 --> 0:06:37.159 in Formula one. But the truth is it's the same 0:06:37.279 --> 0:06:40.080 exact exact thing with money. And it doesn't mean that 0:06:40.200 --> 0:06:42.000 like inheriting a trust fund, that's not what we're talking 0:06:42.000 --> 0:06:44.920 about here. But if you're a parent, you greatly influence 0:06:45.080 --> 0:06:48.360 whether your kids start out in the personal finance pole position. 0:06:48.600 --> 0:06:51.000 We'll talk about passing on knowledge in this hose, but 0:06:51.000 --> 0:06:53.000 we're also going to talk about the mechanics and the 0:06:53.040 --> 0:06:55.920 accounts that can give your kid a leg up, which 0:06:56.080 --> 0:06:57.680 most of us, if we're honest, didn't have, Like we 0:06:57.720 --> 0:06:59.640 didn't learn about this stuff in school, and in all 0:06:59.680 --> 0:07:02.680 likely your parents didn't teach you about personal finance, so 0:07:02.760 --> 0:07:05.120 you kind of maybe started off behind the eight ball. Well, 0:07:05.160 --> 0:07:07.920 how can you change that for the next generation. That's 0:07:08.160 --> 0:07:11.080 the topic of today's episode, right, Yeah, Yeah, what you 0:07:11.320 --> 0:07:14.880 know at the start has a remarkable impact on where 0:07:14.920 --> 0:07:16.840 you are going to end up at the finish. It's 0:07:16.840 --> 0:07:19.200 gonna have a remarkable impact on the quality of life 0:07:19.240 --> 0:07:21.000 that you're gonna be able to lead. And we think 0:07:21.080 --> 0:07:24.520 that there is a massive advantage gained in life when 0:07:24.560 --> 0:07:28.040 you've got these basic financial literacy principles being taught to 0:07:28.280 --> 0:07:31.520 two kids consistently as they are growing up. And it 0:07:31.560 --> 0:07:35.000 doesn't have to be uber fancy or sophisticated, right, Like, honestly, 0:07:35.040 --> 0:07:38.960 it's pretty simple and straightforward stuff, but it's incredibly foundational 0:07:39.000 --> 0:07:41.680 as kids begin to develop their own ideas of how 0:07:41.760 --> 0:07:45.120 does the world works. But let's say that you've got teenagers. Now, 0:07:45.640 --> 0:07:48.400 maybe your kid wasn't necessarily hustling at age six selling 0:07:49.080 --> 0:07:51.240 lemonade out in the neighborhood. Let's say didn't develop an 0:07:51.240 --> 0:07:53.800 award winning app at the age of eight. That are 0:07:53.840 --> 0:07:56.560 their kids? Who do that? Okay? I read about those 0:07:56.600 --> 0:07:59.200 kids sometimes, like who are they? That's incredible either, I'm 0:07:59.240 --> 0:08:00.920 not sure if their parents are amazing. I mean it's 0:08:00.920 --> 0:08:02.600 probably both, and right, the parents and the kids are 0:08:02.640 --> 0:08:07.280 pretty incredible nerds. But he signed play instead losers. But 0:08:07.400 --> 0:08:09.160 even if you have a kid that's older, the truth is, 0:08:09.200 --> 0:08:11.480 you still have time to get them pointed in the 0:08:11.600 --> 0:08:14.720 right direction. Like, honestly, you still have influence. Even if 0:08:14.800 --> 0:08:16.320 you have a grown adult who's out of the house, 0:08:16.600 --> 0:08:19.160 who is you know, there's still your kid though. Uh. 0:08:19.200 --> 0:08:21.880 And we actually talked about this with our friend Bobby 0:08:21.920 --> 0:08:24.680 Rebel back in I think his episode five and eleven. 0:08:25.000 --> 0:08:27.360 It's not too late. So that's right. We're gonna discuss 0:08:27.480 --> 0:08:30.200 how to set your kids up for a successful financial 0:08:30.280 --> 0:08:33.720 future in detail during this episode. Yeah, and most holks, 0:08:34.080 --> 0:08:36.080 like I said, they learned in their thirties or forties, 0:08:36.120 --> 0:08:37.400 and then they get started and they're like, man, I 0:08:37.480 --> 0:08:40.160 wish I had known that stuff earlier instead of really 0:08:40.200 --> 0:08:42.400 just learning from my bad beats, from the mistakes I 0:08:42.520 --> 0:08:44.839 made and then having to kind of figure it out 0:08:44.880 --> 0:08:46.680 from there. It just seems like a lot of people 0:08:47.080 --> 0:08:48.959 and not only are you kind of learning along the 0:08:49.000 --> 0:08:51.880 way from the mistakes you've made, but those mistakes actually 0:08:51.920 --> 0:08:54.160 make it harder to make progress, right because let's say 0:08:54.360 --> 0:08:56.280 one of those mistakes is taking on too much student 0:08:56.280 --> 0:08:58.920 loan debt, or one of those mistakes is getting into 0:08:58.960 --> 0:09:02.160 credit card debt up to your eyeballs and then realizing, 0:09:02.240 --> 0:09:04.560 wait a second, wait a second, that's not the route 0:09:04.600 --> 0:09:06.400 I should be taking. It just makes it that much 0:09:06.480 --> 0:09:08.559 harder to get to the place where you want to be. 0:09:09.040 --> 0:09:11.160 And so, yeah, the earlier kids start learning about money, 0:09:11.520 --> 0:09:13.360 the more time they have to impleuent that knowledge, the 0:09:13.440 --> 0:09:16.480 more they can avoid having to learn from mistakes, the 0:09:16.559 --> 0:09:18.800 more they can just learn on the front end, and 0:09:18.880 --> 0:09:22.200 then that gives them also time to to enjoy compounding returns, right, 0:09:22.240 --> 0:09:24.320 which is something we talk about a lot on the show. 0:09:24.440 --> 0:09:27.520 How your money working for you is huge. It makes 0:09:27.559 --> 0:09:30.480 a massive impact on your ability to build wealth. Time 0:09:30.720 --> 0:09:32.959 allows them to have more exposure to the market, and 0:09:33.040 --> 0:09:34.839 it allows their money to kind of start doing the 0:09:34.880 --> 0:09:37.520 heavy lifting on their behalf much sooner, and that that 0:09:37.559 --> 0:09:39.040 means that they don't have to do as much heavy 0:09:39.120 --> 0:09:41.320 lifting as most of us did in order to get 0:09:41.320 --> 0:09:44.160 our financial financials on the right path. The earlier they 0:09:44.200 --> 0:09:46.200 get started, it actually means they can be a little 0:09:46.240 --> 0:09:48.760 more relaxed as they as they get up with their money, 0:09:49.160 --> 0:09:50.959 and that's not the norm. That's pretty cool that you 0:09:51.040 --> 0:09:53.280 can actually help your kid set them up for for 0:09:53.360 --> 0:09:55.760 that sort of success, but it's definitely not what most 0:09:55.800 --> 0:09:58.880 people experience with their personal finances. Yeah, yeah, So this 0:09:59.040 --> 0:10:01.040 is why this is such an important thing, because your 0:10:01.120 --> 0:10:03.920 kids have time on their side, and you know, Joe, 0:10:04.000 --> 0:10:06.959 you're talking about compounding returns, like not, not only do 0:10:07.080 --> 0:10:09.400 we see this eighth wonder of the world at play 0:10:09.720 --> 0:10:12.280 with our you know, with our kids actual dollars, but 0:10:12.440 --> 0:10:14.920 we also get to see the compounding effects of their 0:10:15.040 --> 0:10:17.400 behavior as well. You know. It's it's just like the 0:10:17.480 --> 0:10:20.559 virtuous cycle of how our money ends up making money 0:10:20.720 --> 0:10:24.280 for us. Healthy habits build upon other healthy habits. I 0:10:24.400 --> 0:10:27.320 think helping your kids establish these tried and true money 0:10:27.400 --> 0:10:30.200 practices are going to serve them for years to come. 0:10:30.600 --> 0:10:32.880 You can help them to create this base layer of 0:10:33.120 --> 0:10:35.920 solid habits that they can use to propel their progress 0:10:36.240 --> 0:10:38.120 even more as they get older. It's it's just kind 0:10:38.160 --> 0:10:41.640 of like just again, imagine that snowball, and every single 0:10:41.720 --> 0:10:44.520 time it revolves around it like the first time it revolved, 0:10:44.679 --> 0:10:46.000 it picked up a little bit of snow. But then 0:10:46.000 --> 0:10:47.680 the next time it does an entire rotation, it's picked 0:10:47.720 --> 0:10:49.960 up even more and it continues onward. Yeah, and it's 0:10:50.000 --> 0:10:52.440 all those like we're always teaching our kids these other habits, 0:10:52.520 --> 0:10:56.000 healthy habits right as they're growing up. Rush in your teeth, yeah, 0:10:56.120 --> 0:10:59.680 and like being respectful to your friends, parents, take care 0:10:59.679 --> 0:11:02.199 of your Yeah. I mean I remember having sir and 0:11:02.280 --> 0:11:04.200 ma'am beat into me as a kid, like I had 0:11:04.240 --> 0:11:06.199 to respond to my parents that way. But that's the 0:11:06.280 --> 0:11:08.160 kind of thing that like we're always teach her and 0:11:08.240 --> 0:11:10.280 kids to do stuff like that. But for some reason, 0:11:10.440 --> 0:11:12.079 money habits get left out of the mix for the 0:11:12.160 --> 0:11:14.920 most part. So most kids, they know how to be polite, 0:11:15.000 --> 0:11:16.679 they know how to be kind, they know how to 0:11:16.760 --> 0:11:18.200 take care of their bodies and how to brush their 0:11:18.200 --> 0:11:20.160 teeth stuff like that, but they don't know how to 0:11:20.200 --> 0:11:22.199 take care of their money, and that's a problem. But 0:11:22.280 --> 0:11:25.800 the reality is that kids are malleable. That's another important 0:11:25.840 --> 0:11:27.679 fact that we have to talk about because they just 0:11:27.880 --> 0:11:31.199 soak up information, so dang well, they're ripe to be 0:11:31.280 --> 0:11:33.120 taught some of these things. And so if we miss 0:11:33.160 --> 0:11:34.920 out on the opportunity to teach them when they're young, 0:11:35.200 --> 0:11:38.280 it only becomes difficult the older they get. Their prefrontal 0:11:38.440 --> 0:11:40.960 cortexes are still being developed, so there's a lot more 0:11:41.000 --> 0:11:44.680 elasticity going on that's those brains. And interestingly enough, there's 0:11:44.720 --> 0:11:47.160 some recent research that shows that all of our brains 0:11:47.240 --> 0:11:50.040 actually have more plasticity than scientists previously thought. I think 0:11:50.080 --> 0:11:53.040 it's just came out. Speak for yourself, your brain is 0:11:53.080 --> 0:11:56.640 done developing. Well. I thought this was kind of cool 0:11:56.720 --> 0:11:58.640 that there's some of this research found that people still 0:11:58.720 --> 0:12:01.800 in their sixties and seven, there's more plasticity in their 0:12:01.800 --> 0:12:04.400 brain than they previously thought. They have more ability to 0:12:04.640 --> 0:12:08.720 adapt and learn than was previously assumed. But of course 0:12:09.040 --> 0:12:13.240 kids still have far more ability. They're changing that so 0:12:13.559 --> 0:12:16.559 it's it's much easier to teach them money early on. 0:12:17.160 --> 0:12:19.679 Based on their physiological makeup. They're just going to be 0:12:19.800 --> 0:12:23.600 more susceptible to having these ideas get embedded deeply in there. 0:12:23.640 --> 0:12:25.439 They're gonna stick around, and then they're going to have 0:12:25.480 --> 0:12:29.120 an impact for years and decades to come. Teaching the 0:12:29.200 --> 0:12:33.000 next generation something as important, something that we use on 0:12:33.080 --> 0:12:36.400 a daily basis, something is necessary as personal finance. Doing 0:12:36.480 --> 0:12:38.640 it regularly and starting at a young age is just 0:12:38.920 --> 0:12:42.640 is massively important. Yeah, something else worth mentioning is, man, 0:12:42.720 --> 0:12:45.520 I think that kids actually can help set you up 0:12:45.559 --> 0:12:47.960 for financial success. You know the reason we're talking about 0:12:48.000 --> 0:12:51.120 setting your kids up for financial successes for their own 0:12:51.160 --> 0:12:54.280 well being. We're like, we're doing it for the kids themselves. 0:12:54.600 --> 0:12:56.960 But obviously, you know, when when the stakes get raised 0:12:57.000 --> 0:12:59.600 like this, it does like you could see a benefit 0:12:59.679 --> 0:13:01.839 to you personally, but it could come full full circle 0:13:01.880 --> 0:13:04.200 as well, because even though you may have been able 0:13:04.240 --> 0:13:06.400 to plan as well as you thought you could, you 0:13:06.520 --> 0:13:08.679 never know what kind of curveball's life might throw you 0:13:08.840 --> 0:13:11.160 and down the road, maybe when you're in your golden years. 0:13:11.280 --> 0:13:13.240 Hopefully your kids are in a great position to where 0:13:13.240 --> 0:13:15.400 they might be able to welcome you into their home 0:13:16.000 --> 0:13:18.280 when you are in your later years. Yeah, for sure, 0:13:18.320 --> 0:13:20.839 and so hopefully you're planning well for your financial future. 0:13:21.240 --> 0:13:24.199 But your kids who are financially savvy can help you 0:13:24.280 --> 0:13:27.120 when you become old and infirm, Matt. Which I look 0:13:27.160 --> 0:13:29.599 forward to those days personally, but you're doing it for 0:13:29.840 --> 0:13:32.160 them for you know. I don't know if I told 0:13:32.160 --> 0:13:34.080 you this. Emily and I recently took a marriage test 0:13:34.120 --> 0:13:35.920 and one of the questions that there was one question 0:13:35.960 --> 0:13:37.840 on there that made me smile, and it said are 0:13:37.880 --> 0:13:39.920 you looking forward to growing old with your wife? And 0:13:39.960 --> 0:13:42.240 I was like, heck, yes, I am, Like, I don't know, 0:13:42.320 --> 0:13:43.880 I'm like kind of looking forward to old age. I 0:13:43.880 --> 0:13:45.800 think it's gonna be fun. Yeah, I think it'll be fun. 0:13:45.880 --> 0:13:49.480 I'm definitely still looking forward to like next month as 0:13:49.760 --> 0:13:51.160 as well. I mean, I don't want to come to 0:13:51.200 --> 0:13:53.240 come too fast. Yeah, Yeah, it's gonna it's gonna still 0:13:53.240 --> 0:13:55.560 gonna be good. And hopefully, hopefully my kids are financially 0:13:55.600 --> 0:13:58.959 savvy and they are able to, yeah, support us, not 0:13:59.120 --> 0:14:01.679 not necessarily financial, but to be there for us and 0:14:01.800 --> 0:14:04.440 to be on solid footing themselves. But let's talk about 0:14:04.520 --> 0:14:06.319 how we get our kids to that point, Matt. Let's 0:14:06.320 --> 0:14:09.080 talk about the most important factors that help fast track 0:14:09.360 --> 0:14:12.160 kids to financial success that we can instill in them 0:14:12.240 --> 0:14:14.559 as parents. Now we'll get through our thoughts on that 0:14:14.720 --> 0:14:26.080 right after this. All right, we are back from the 0:14:26.160 --> 0:14:29.160 break and again we're talking about fast tracking your kids 0:14:29.240 --> 0:14:31.960 to financial success and you know, Joe, like, we'll talk 0:14:31.960 --> 0:14:34.400 about some of those specific accounts that you can set 0:14:34.480 --> 0:14:36.480 up for your kids, maybe even how much you should 0:14:36.480 --> 0:14:38.280 be investing for their future. We'll get to that in 0:14:38.360 --> 0:14:40.040 a bit, but first we wanted to touch on some 0:14:40.160 --> 0:14:45.040 aspects that you can begin now like today, where there's 0:14:45.120 --> 0:14:47.840 no income required, you know, in order to get that 0:14:47.840 --> 0:14:49.360 ball rolling, because a lot of a lot of times, 0:14:49.400 --> 0:14:51.640 in particular when it comes to investing, your kids need 0:14:51.680 --> 0:14:53.440 to have that earned income. Or sometimes you're like, man, 0:14:53.520 --> 0:14:55.440 I have an eighteen month old, Like, we're not talking 0:14:55.480 --> 0:14:58.760 about investing yet, since where do I start? And investing 0:14:58.800 --> 0:14:59.960 is a place you gotta get too, but it's not 0:15:00.000 --> 0:15:02.480 the place you start. Yeah exactly. I mean so, so 0:15:02.720 --> 0:15:05.160 I think when most folks, when most parents, in particular, 0:15:05.200 --> 0:15:07.640 when they think about teaching their kids about money, like 0:15:07.760 --> 0:15:11.640 they might instinctively think of maybe just the formal lessons 0:15:11.720 --> 0:15:14.200 that they can teach, right, or or maybe they're thinking 0:15:14.520 --> 0:15:16.560 like there's some kind of like kids and Money program 0:15:16.640 --> 0:15:19.400 that they can sign up for. But we think that 0:15:19.800 --> 0:15:22.440 the behavior that you're modeling for your kids and the 0:15:22.480 --> 0:15:25.200 example that you're setting that that is even more crucial 0:15:25.840 --> 0:15:28.560 because the reality is that what you do well that 0:15:28.680 --> 0:15:32.040 means more over time than than what you say. And so, yeah, 0:15:32.080 --> 0:15:35.360 you want your kids to not only do as you say, 0:15:35.480 --> 0:15:37.800 but you want them to also do as you do. 0:15:38.440 --> 0:15:39.800 And so one of the things that makes me think 0:15:39.840 --> 0:15:42.320 of is the tone that you're setting when it comes 0:15:42.320 --> 0:15:44.840 to talking about money. And so, for instance, every time 0:15:45.360 --> 0:15:47.680 you talk about money, well, if it's a fight in 0:15:47.800 --> 0:15:50.280 your house, um, I think what you're doing is you're 0:15:50.280 --> 0:15:52.600 setting the expectation that anytime we talk about money like 0:15:52.720 --> 0:15:54.960 this is how it should be talked about. Uh. And 0:15:55.080 --> 0:15:57.600 so I think it's important to not just discuss what 0:15:57.880 --> 0:15:59.440 it is that you're talking about, but how it is 0:15:59.520 --> 0:16:01.920 that you're going about talking about that, because there's a 0:16:02.000 --> 0:16:05.320 chance that your kids might completely push back against that 0:16:05.360 --> 0:16:07.360 and they're gonna say, well, that's never going to be 0:16:07.440 --> 0:16:08.960 what it's like when I grow up. But at the 0:16:09.000 --> 0:16:11.520 same time, this is the expectation that you're setting, and 0:16:11.600 --> 0:16:13.640 I think it can be an uphill battle if you 0:16:13.720 --> 0:16:15.520 are setting that kind of negative tone. That kind of 0:16:15.640 --> 0:16:18.280 negative vibe anytime you talk about money. Right. So one 0:16:18.320 --> 0:16:19.840 example I think we could give to this Matt, just 0:16:19.960 --> 0:16:23.680 in some other area of parenting is let's say you 0:16:24.080 --> 0:16:25.920 enjoy cursing, which is totally fine, Like I don't have 0:16:25.960 --> 0:16:28.400 a problem with that, but U but let's say, are 0:16:28.400 --> 0:16:32.320 you talking about me specifically? Just general example here if 0:16:32.360 --> 0:16:35.080 somebody likes cursing, just love to curse, Yeah, they love it, 0:16:35.320 --> 0:16:37.800 and then they hear their kid cursing and like wait 0:16:37.840 --> 0:16:39.800 a second, no, no, no, you're not allowed to do 0:16:39.920 --> 0:16:42.720 that like this, I thought I taught you better than this. Well, 0:16:43.120 --> 0:16:44.960 the fact is your kids are going to imitate what 0:16:45.080 --> 0:16:47.880 you do. And so even if they don't do it 0:16:47.920 --> 0:16:49.160 in front of you because they know it's gonna get 0:16:49.200 --> 0:16:51.560 them in trouble, they're probably going to use that language 0:16:51.680 --> 0:16:53.320 behind your back with their friends or something like that. 0:16:53.720 --> 0:16:56.600 So the example we set, like how we behave our 0:16:56.680 --> 0:16:58.920 kids are going to imitate that. They're going to respond 0:16:58.960 --> 0:17:01.000 more to what we do than to what we say. 0:17:01.120 --> 0:17:03.200 I just I just think that's ultimately, that's that's how 0:17:03.200 --> 0:17:04.840 they learned how to be. In this word, they learn 0:17:04.920 --> 0:17:07.720 how to be based on how we exist. And so 0:17:08.160 --> 0:17:10.080 you got to think about that. Um so, so, yeah, 0:17:10.160 --> 0:17:12.720 your example matters a lot. I still remember our conversation 0:17:12.800 --> 0:17:14.440 Matt with Jail Collins back in the day, and he 0:17:14.520 --> 0:17:17.359 basically said he gave more credit to his wife for 0:17:17.520 --> 0:17:20.040 how his daughter turned out, even though he wrote like 0:17:20.119 --> 0:17:23.440 a best selling investment book, right, the Simple Path to 0:17:23.480 --> 0:17:25.720 Wealth that like tens and tens and thousands of people 0:17:25.720 --> 0:17:27.000 have read. I don't know if I don't know if 0:17:27.000 --> 0:17:28.600 it's sold a million copies or not yet, but he 0:17:28.680 --> 0:17:31.200 wrote this massively successful. But but he said, no, no, 0:17:31.320 --> 0:17:33.200 my wife modeled it day in and day out for 0:17:33.240 --> 0:17:35.480 our daughter. She deserves the credit. And I think there's 0:17:35.480 --> 0:17:37.439 a lot of truth to that that the modeling matters 0:17:37.520 --> 0:17:40.440 more than the words that are said. Although the conversations 0:17:40.440 --> 0:17:43.760 are important to you gotta have those discussions because even 0:17:43.800 --> 0:17:44.960 if you need to have a little bit of both, 0:17:45.200 --> 0:17:47.480 because like let's say, even even if you handle your money, 0:17:47.520 --> 0:17:50.040 impact will be well, that's just not quite enough when 0:17:50.160 --> 0:17:52.440 we're talking about transmitting that knowledge to our kids, because 0:17:52.480 --> 0:17:55.200 it just it doesn't happen by osmosis, right, It doesn't 0:17:55.200 --> 0:17:57.480 just seep in just because we're doing the right thing. 0:17:57.640 --> 0:17:59.240