Raising Economically Savvy Kids in Today's World

Embark on a journey to financial enlightenment with me, Michael Kane, as we navigate the crucial seas of financial literacy for our young ones on "Living Your Success." Remember when piggy banks and lemonade stands were our first taste of economics? We're taking it several notches higher, as I lay down the blueprint of incorporating money matters into everyday family dialogue, just as it was in my upbringing. From discerning the delicate line between necessities and luxuries to the intricacies of managing savings and expenditures, I share how these formative financial lessons carved my path to monetary proficiency—and how I'm charting the same course for my children.

This episode isn't just about counting pennies; it's about striking that fine balance between savoring life's moments and securing one's financial future. I dissect the interplay between career choices, education, and their impact on our wallets, all while shedding light on the oft-overlooked connection between our health and financial well-being. We'll also discuss the traps of splurging on short-lived assets and how to conduct effective family financial check-ups that steer clear of complexity. Embrace the power of self-education as we discuss tapping into community resources over blindly following financial gurus. Tune in to empower the next generation with the wisdom to build a financially sound tomorrow.

Chapters

• 0:00 Teaching Children Financial Literacy
• 17:56 Teaching Children Financial Wisdom

Transcript

Speaker 1: 0:00

Well, hello there. This is Michael Cain, with Living your Success. What when? 24, 7. That's right, 24, 7. So, anyway, it's a nice Saturday morning, I believe so, here in the good old USA. So I wish all of you, wherever you are around the world, whatever continent, whatever country, that you have a great day.

Speaker 1: 0:29

So what are we going to talk about today? I believe I want to talk about financial literacy, in particular, raising money-wise children. Money-wise children, you just say, well, they're just kids. They're just kids. They are, and that's when, I believe, the learning is even more pronounced and more energetic and more wanted. Okay, kids, curious. And so I believe, in order to have good adult stewards over financial resources, it starts nearly in a womb. That's right, you heard me. Why not talk about financial things, stuff, money, when they're little?

Speaker 1: 1:38

Let me give you my own experience. I want to first give you experience that I personally had as a child and then with my children. So with me, the parents didn't necessarily discuss money directly every single occasion, but we were allowed to listen and be there. We weren't excused from the room. Now, certain things we were obviously age-appropriate, right, but whenever we're talking about, for example, need a shirt or a pair of pants or want to go on a field school, field trip where it costs money, that's when it would come up, and that was meaning every month. It would come up as far as well. This costs $20, this costs $100, this costs $5. Can I have an allowance? Can I work for money? To raise money for my children? So I always have money in my pocket.

Speaker 1: 2:33

So our parents groomed and developed us and they sowed that seed in us where we knew the concept of money and that it was. It wasn't called a tool, but something that should be accumulated for a greater good later and to enjoy some of the fruits of your labor at the moment. And so it wasn't hidden from us, but it wasn't always so pronounced either entitled oh, we're having a discussion about money. It wasn't like that, but it was like it came up again when the need for it or the one of it came up and which was weekly, by the way. Okay, he just want money. Even then we wanted money. We know we need to want to go to store takes some money, and I was. I was a saver. I saved my money for things I had great. I had exceptional patience, self-serving for sure. But I still have it because it I grew it. I developed that extreme patience as a child growing up, and so if it took six months, I was right there, let it take six months.

Speaker 1: 4:02

It took a year to three months, whatever, and back then we were able to purchase things at our house. By the way, there was no internet, there was no cell phones, no pagers, nothing, but it was a thing called that was common then COD Cash on delivery. So even as a kid we were allowed to order stuff on the phone and in writing and letters. There was no email, and mostly by phone. You pick up the phone and call them, say, hey, I want to order this magic kit which I did a couple of times, and other stuff too, like seahorses, by the way, ok, in a little aquarium. But magic kit OK, 40 piece magic kit. And they took the order and they said, ok, you'll get it in 10 days or whatever. And so the doorbell rings. I answer it because I was.

Speaker 1: 5:07

I knew it had to be for me, right, and the gentleman nice gentleman delivered it and I paid him in cash, whatever it was. I can't remember the cost of it, I think it was twenty, thirty dollars, something between twenty and thirty. I gave him the money and they said to have exact change by the way. So I made sure I had exact change for the delivery man and I gave him the money. He gave me the magic kit and I was just a kid. We were able to do that as kids. I doubt a twelve year old, ten year old would be able to pick up a phone and call any company now to get maybe toys or us, I don't know. But anyway, to get anything delivered on their word, cash on delivery. I think that's nearly impossible now. Maybe wrong, I believe so. But I used to do that cash on delivery.

Speaker 1: 6:05

We didn't have a credit card, didn't have to say mommy and daddy said I could buy, it, was able, because it was age appropriate. They knew it. A magic kit Didn't have any flammables or anything that could set the house on fire. You know, like fireworks we wouldn't be able to do that. I mean, you know so. But innocent products we're able to buy on our own and with no credit card. Can you imagine a world with no child's world, with no credit card, just cash. So I knew the value of cash even then. That it allowed me, it gave me options, it absolutely gave me options to to purchase things, to save for a rainy day, to even treat friends, sometimes right, treat myself, treat my parents.

Speaker 1: 7:08

And so the question is you know I was going to ask a question what are you doing for your children? Right, think about it. Are you teaching them the fundamentals of stewardship of money, what money is, what money can buy, what money can do? But I did tell you two things. I was going to tell you my story and the story of my children. Now I think my story is finished. So I continue to save For school functions, school things, a mowed the lawn, I did chore, extra chores. There are basic chores and extra chores and I probably could have done more. Yeah, and hindsight is what it is.

Speaker 1: 7:55

And so now I took my personal learning Of money and wealth building and accumulating this thing called money when I had children, my son and my daughter when they were little I let them watch Suzy Orman with me and Jonathan Pond and other financial people and dealing with saving and investing money, investing in real estate. My children were like one, two, three, four, five years old when they first heard about that. Okay, let's say you have an eight month old, a year, a two year old, do they really fully grasp what we're saying? No, but just the environment of learning about hearing it. You know how, not unlike women or people talking to the, there's a pregnant woman right and the womb to talking to them. It seeps through, maybe not word for word, but it seeps through if their environment is saturated with a particular topic or situation. Kids absorb that energy, they absorb the atmosphere and to be around in a peaceful, pleasant environment and a nurturing and learning environment, it makes them receptive. So my children yeah, I'll never forget.

Speaker 1: 9:46

They're sitting up there in little baby chairs, little chairs. We're watching TV, a 60 inch TV. We're just watching it going through and people are asking questions and audience on the shows and money how much should I save? What's an emergency fund? How should I invest? What should I invest in? How much should I do that? And my kids were sitting there.

Speaker 1: 10:14

So my point is, my belief is you should do all you can do when they're the tiniest of people, when they're small and they're real young. So by the time they get to 18, they're already on their way Because you can open a custodial account where they have met a brokerage vanguard, fidelity or your bank of choice, your mutual fund of choice, directly, and they'll get it. They will already have gotten it, and I wish they would do more and I've been impressing upon them, encouraging them to do it, because, as you know and if you don't know, we have time. The more time you have, the more opportunity is to build wealth organically. You don't have to start a business, you don't have to have a particular talent.

Speaker 1: 11:16

This is not a zero sum game. One can win here, but everyone needs to get off their butt and do it. I'll do it later. I'll do it later than 10 years later. Now you start screwing yourself, and so this is for you, whatever age you are, if you still haven't gotten off your butt to invest, perhaps you have fear, trepidation, whatever it is, I encourage you. It gave me options, gives a lot of people options and just saving it in a savings account for emergency fund and cash on hand. Do that, and then you start, trickle by trickle.

Speaker 1: 12:02

Think about it. You're young, you're, let's say, for your children, 12 years old, 15 years old, whatever start putting $25 away every month, even $10 a month. My gosh, over time it's better than nothing, and I always argue and debate this point. I know you got 10, 15, $20, because let's see what you spend your money on, see what you spend your money on, and that's fine. But don't say you don't have it. It's just you're allocating it to other places and not to your future self. We're talking about a child, a young adult's and us future self, where I promise you, when you become older, at certain stages you're going to wish you had done it, taken action. I just talk about it. So it's important that.

Speaker 1: 13:13

Well, let me tell you the benefit. My children do know. They can't say they don't know about money and what it can do to accumulate. They know the result. Do they always stick to it? No, but they can't say they didn't know. And I've done my job as a parent to lead the way by example and by pestering them. Okay, hey, did you? Do you still invest in you? Still saving money? You still hear that from me every month. Every month, I'm a broken record.

Speaker 1: 13:49

I don't want. I want to instill a fire in my children to make sure they prosper later in life. I don't want them needing my help. I really don't. I want to be able to borrow money from them. Right, tell them, hey, I want you need to help me when I'm older. I should be helping you when I'm 80 and you're 30, 40 years old. You know should have your crap together because I told you when you're five years old, 10 years old, 20 years old.

Speaker 1: 14:23

So, in part upon your children, I recommend this go to financial, watch financial stuff, go to seminars, workshops, community college, learn about personal finance. It's still. Help them open an account. Perhaps help them by donating the first $25, $100, and teach them the economics of this world. And it's very simple. You don't have to be economists. Take them shopping with you and say, look, I have a choice between this product and this product.

Speaker 1: 15:04

Now, health aside, you may have to buy certain things because of your help to be healthy. But I'm saying, ok, this costs $8., this costs $5. Essentially, the same product, different manufacturers, different companies. Now you could just point blank say, well, I'll just buy the most expensive thing. I see, well, that's a choice, but it may not necessarily be the best choice. But you have to balance things out between quality and what you can afford, affordability. And so you know, there's always people that will spend all their money and I say, but damn, die, because, oh, I just have to have the best. Well, knock yourself out before.

Speaker 1: 15:52

When you're older, I heard dog food, cat food isn't so bad, but that's what you want to eat when you're older because you spend up all your money. I'm not in quality or high end stuff, but it's about moderation. Life is about moderation and if you want to go to one extreme to the other, there's the hoarders that don't spend anything and there's the other one spin strips, spin thrips, that spend everything. Where do you want to be, where do you want your children to be? Balance, smart, wealthy, wealthy, wealthy, wealthy is a mindset. It's what you keep folks. Yeah, you need to have enough, generate enough income. This is what we all want.

Speaker 1: 16:39

Well, most of us want for our children generate the highest income possible, obviously without sacrificing your soul or selling it, and saving. I always told my children save some, spend some, spend a little for the present. You've got to live too, because it's saving everything. Whatever you're not taking it with you when you die, someone else is going to use your money. By the way, when you die, it's not going to be you. So it's important that we teach our kids this foundation, this prosperity foundation, and the particulars of what it takes. So, for example, you're talking about money. Naturally you're going to.

Speaker 1: 17:26

As they grow older, you're going to talk about their career path, which will influence their wealth path. Your career path has a direct connection with their wealth path. Your career path has a direct connection with their wealth path. It's the same road. So what will your road, what is your road looking like for your children's?

Speaker 1: 17:56

So, if they get into something that they could be self sufficient, they need to pay their own bills. Take care of themselves. That's the big point. And you have enough to save, have enough to invest and have fun in this life, to enjoy this life. Yeah, stay away from the extremes, people that spend it all down, don't have crap. And then they blame other people. Well, I don't make enough. Yeah, you made enough, you just blew it. Too many stupid decisions, I made stupid decisions, mistakes. Point is to acknowledge it and move on and redirect you. Redirection, change course. Save and invest, have fun, bless others Like you got to start blessing yourself first and then bless your children and your family. Be on one accord with your significant other and, as you're very not, that's another hell that's going to rob you of your future wealth. You want to be solvent, but you don't want to be scraping the barrels. You want to prosper.

Speaker 1: 19:29

So that's what teaching children about money and what money can be, what money is and what money can do. Money gives you options. Lack of money there's no choice. There's no, there's no choice. You're nowhere near the ceiling. You're on the floor with no money or lack of money. Teach children to be wise in general, and they will be wise with that money too. In particular, help them to choose the right path. Now. They have to choose it ultimately on their own, but you can guide them and direct them, encourage them on their career. You know it's their choice. Let them be who they need to be on their career, their path, education, whether trade school or academic or a degree, or again trade school or for certificate, aa or whatever it is, whether it's in formal or formal, we're in school every day. We learn and we grow, especially if you do this intentionally. But I know one thing intentional or not, you're going to learn good or bad is coming, good, bad and ugly is coming, which one?

Speaker 1: 21:02

We use a lot of our out of our control, but we can't control where we want to go. That's intentional. We want to be successful, health wise Without the health, that game is open. A lot of people rich, wealthy are dropping dead like flies. Got all the money in the world, can't spend it because they're dying or they're dead. You didn't take care of themselves. So we talk about prosperity and talk about freedom and talk about being well off. We're talking about health too. Health is number one action.

Speaker 1: 21:40

In fact, I'm going to the gym today because I said you know what? It's been a little while, so I've been walking around the block, but I need to go to the gym. I want to up my game. So I want to be here to see all our children, my children collectively. We came into the marriage with children. Now we're unified as one. We want to see them prosperous. We want to see them wealthy. Okay, millionaire, say it, I'm saying it. I want to be millionaires, want to be well off, want them to be able to make good, great decisions and choose wisely their relationships, and so we want the best and I'm assuming you want the best for your children too, but they have to learn in an independent way, with your influence. So I'm going to be doing 2024. I'm going to up my game and the advice I'm giving you and I'm going to be doing a lot more for my family.

Speaker 1: 22:58

As far as education, financial education you got to do tuneups and check-ins Just because you told them last year you need to go follow up and say how are you doing? Are you still investing? Are you still doing it? You can't just say it once. You don't want to be a pest either, but you want to have routine, maybe quarterly conversations, and make it uplifting, not just preaching down to them or to yourself, but encouraging and building up. Edifying, as they say.

Speaker 1: 23:29

And so the gospel is very important that we pay it forward and share the good news, right, share the gospel, the financial gospel. It's like don't waste your money on cars. They'll diminish 20, 30% significantly as soon as you drive it off the lot. Don't overpay for that. It's robbing you of your future. Don't overpay for a house. Can't afford to rob in your future. We don't have to worry about other people robbing us. We rob ourselves before they even get to us. That's why they're so mad. There's nothing left when they rob us.

Speaker 1: 24:16

As you broke yourself, are you allowed other people to be spouses? Most likely Rob you, which is wide open. So have a plan. Know where your money's going. Name every dollar you have. This one is the saving dollar, this one's the investing dollar, this is the real estate buying dollar. This is the emergency fund dollar. This is the half fund dollar. Everything has a name. Don't go nameless because guess what, when it doesn't have a name, guess where it goes? Into a black hole, a void, it disappears. I said where did it go? Can't even account for it. It's just gone because you didn't call it. No intent, gotta be intentional. Name it, make it sound easy. It is.

Speaker 1: 25:17

People want you to believe, and even some of the gurus, that it's so complicated that you need them. You need their book, you need their program to survive. No, you don't. Then I said educate yourself. Maybe you buy it and maybe you do, but at some point you know what you know and you know what you don't know. At some point, if you can't afford books on Amazon or Barnes and Noble or wherever it is online, you can go to your local library and run out the book. And I do attend seminars, workshops we did last year and I'm going to pick some this year because I love learning from other people. I said, oh, I get it.

Speaker 1: 26:11

I read books always for Christmas and birthday. I always ask for a book usually, and I've been in book clubs and shout out to my brother for his book clubs. They're not always non-fiction, they're mostly fiction, but it's learning, being in groups and inspires. You can help to inspire to be more, to be aware of things. Some of them are non-fiction too, so I straddle both sense. I'm focused on non-fiction right now and I want to increase and enhance my knowledge about specific subjects and things of that nature.

Speaker 1: 27:05

So, at any rate, it's important that we raise money-wise children so they become money-wise adults who will give you money-wise grandchildren and they can take care of you. You don't take care of them until you die, okay, so I would encourage you to learn about investments. It starts small. I would encourage ETFs or index funds especially. We don't have a lot of time to be researching individual stocks. I do both. I put a lot of work into it over the years, but I'm winding down individual stocks and sticking with because I don't want to be allocating my time just looking at it, and occasionally I will do that.

Speaker 1: 27:57

But I have an investment club too. Now we started one to collectively get together and do the best. So I encourage you to. Oh, there's a website, betterinvestingorg, and they help you get involved and start an investment club in your area. There's local chapters all over the country, so I encourage you to do that and to keep encouraging yourself. Educate yourself and, in turn, educate your kids, whatever age they are. You can never be too young, you can never be too old and you can't go back in the past. So if you didn't start, you can start when today or tomorrow.

Speaker 1: 28:48

So, anyway, please encourage people to listen and support my podcast and share it, even with strangers, and sign up so you can hear the get the notifications of when I make new episodes come out, and it's in the name. We talk about success. It could be a career, it could be money, be help, but anything tied to your success. Those are the three pillars of my program, and so I enjoy helping you and I appreciate you for taking the time to listen to Living your Success 24-7. So until next time, my friends, you have a blessed day, prosperous day, a healthy day, and spread the word on my show. Okay, and go on Amazon. I encourage you to buy my book Slaying your Dragons Living the Life you Always Wanted, by Michael Cain, k-a-n-e. Living the life you always wanted is subtitled Slaying your Dragons. Please buy the Haberback book or sign up for the e-book. That's the cheapest, most inexpensive, but thank you for supporting me. Until next time, my friends. Until next time.