Raising a financially literate child

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Welcome to Something More with Chris Boyd.

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Chris Boyd is a certified financial planner, practitioner,

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and senior vice president, financial advisor at Wealth

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Enhancement Group, one of the nation's largest registered

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investment advisors.

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We call it Something More because we'd like

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to talk not only about those important dollar

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and cents issues, but also the quality of

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life issues that make the money matters matter.

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Here he is, your fulfillment facilitator, your partner

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in prosperity, advising clients on Cape Cod and

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across the country.

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Here's your host, Jay Christopher Boyd.

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Welcome to another episode of Something More with

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Chris Boyd.

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I'm Jeff Perry.

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I'm co-hosting this episode today with my

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teammate, Russ Ball.

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Russ, thanks for joining us.

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Thank you, Jeff.

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Happy to be here.

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Another episode of Something More with Chris Boyd.

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And we usually talk about finance and investing,

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and we usually tend to lean towards people

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in retirement.

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That's the bulk of our business, right?

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Most of our clients, not all, certainly, have

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plenty of families, but most people who come

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to us are in the mode of, I

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need a plan to be able to retire,

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retire early, retire at all, and all the

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things that come with that, or they are,

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you know, a young couple maybe saying, we've

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got to get our act together.

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How should we invest money?

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That's, you know, common things that people start

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to invest or go to a financial advisor,

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and that's all good.

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I think we're going to lean towards the

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younger demographic.

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Children, because so much of, you know, so

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much of what happens to us as young

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adults and adults and older adults is based

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upon how we're raised, the values, the morals

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that we're raised with, how we perceive our

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family and the lessons that we get from

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them, you know, a lot of this is

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imprinted on us, not only by what people

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who raised us tell us, but really more

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so, more is caught than taught, right, about

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how our families live.

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We see clients who might be in their

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60s or 70s and have a wonderful financial

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plan, they have lots more assets than they

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need, they should be thinking about legacy planning

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or living a great retirement, but they still

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have this scarcity, like, I don't think I

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have enough, or I'm worried about running out

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of money, and, you know, we know from

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the numbers that we crunch for them that

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you're fine, you're fine, but because of that

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they were raised in a certain time or

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in a certain family, or had some certain

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events in their life that they are still,

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they can't process that they are fine.

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Do you, do you see that with the

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people that you've been meeting with?

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Absolutely.

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Yeah.

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Just as you were saying that, I was

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thinking about a specific case, a client where,

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you know, she grew up in a relatively,

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you know, impoverished family and that was sort

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of her upbringing.

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And so she had to really keep everything

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close to the chest and not really be

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spending, and now she's in retirement.

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She's in, I think, enjoy retirement, but, you

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know, she asks, like, is this something I

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can do, is like, can I support my

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family?

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Can I like help my grandkids out?

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And it's like, with this a bit of

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trepidation, it's not like, oh yeah, like, let

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me just, instead of joy.

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Right.

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It should be, it should be.

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And, and then when we, when we get

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to show that to her, that it'll work

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out, I think it's, it's great.

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What a, what a gift and a blessing

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for people to be able to feel that

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freedom.

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And like you said in the past, like

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having that permission to be able to, to

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do the things you need and even if

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you grew up with a difficult background around

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finances and money, it's, it's yeah.

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I know, I know that I, you know,

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even though I didn't view them as lessons

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at the time, I have many lessons from

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growing up.

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I grew up in my grandparents' home with

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my mother and her parents, my grandparents, and

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my grandfather, who was my male role model,

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he's over this shoulder here, people are watching

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on YouTube, World War I veteran, grew up.

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Uh, he lived through it during the depression,

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you know, so he lived difficultly during the

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depression.

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He was World War I veteran and he

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had a lot of experiences and it made

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him a great man, made him a great

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dad for me.

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Um, but one thing that he was constantly

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talking about with me when I was growing

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up and getting older and, uh, was don't

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get into debt, don't get into debt.

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And I just thought this was like good

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advice.

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So I followed it and it stick with

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me.

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We joke around the office sometime, you know,

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Chris gives me, Chris Boyd gives me hard

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times about things that I believe, like I'm

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much more restrictive than most people on debt,

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right?

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Um, and this comes from my grandfather and

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it's served me well.

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Um, other people, they like leverage and they

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do great with it.

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I'm just talking about me and how it

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impacted me.

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But as, as I got older, I'm like,

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this wasn't just advice.

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This was, was him, his life, his, like

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his fears, his scarcity.

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And he, he had a very successful auto

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repair business.

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Later in life, he owned several homes.

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He was fine, but until his last breath,

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he wouldn't borrow a dime from anyone.

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And he was very like, no debt, Jeff,

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no debt.

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And it's because he didn't want somebody he

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cared about to go through the same things

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that he did in the 1930s.

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And we're talking, these conversations are happening in

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the 1970s and 1980s.

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Right.

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So, and other people who maybe had different

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circumstances have different impacts.

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So for this, for this episode, I want

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to talk about raising a financially literate child

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and, you know, certainly about good behavior to

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model as parents.

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You know, I guess we can start wherever

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you want, but how do you have it

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before we do, do you have any like

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reflections on lessons that were imparted to you

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as a, as a youngster?

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Yeah.

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I mean, so it's funny, I was thinking

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about this in, in, you know, preparing for

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this, for this podcast and it's sort of

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a mixed, mixed bag with my childhood.

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I think money wasn't something that was talked

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about all that much.

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Not that frequently finances and all that.

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But I do remember, you know, getting my

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middle school, getting my allowance.

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And I think it was like five bucks.

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I don't know if it was like every

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other week or whatever it was, but it

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was just, you know, it was a small

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amount.

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And.

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Were you on auto pay or did you

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have to earn it?

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For the, for the five, I was on

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auto.

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And then for, for, for other things, I

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remember like my dad would have us like

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stack firewood and, um, you know, uh, you

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could work overtime and get, I remember we,

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we, uh, in out here in Cape Cod

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on the beach, um, he would have us

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pull up like the, the roots of the

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little like, uh, grasses that go on the

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beach.

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And he'd say like, you get 5 cents

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for each, uh, for each pile you get

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or whatever it was.

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And, uh, I remember that was like very

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fun.

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And, uh, you know, it's exciting.

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You feel like you're every, uh, little thing

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you're doing, you're earning something.

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So there was definitely a little bit of

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that.

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Um, but in general, we didn't, we didn't,

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money wasn't a very talked about thing.

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And, and, uh, that's something I've sort of

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learned over time.

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And I think, uh, you know, whenever I

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have kids, I think I am excited to

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be able to use what I've learned and

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impart that upon them.

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Yeah.

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I think that money isn't talked about, you

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know, mantra was how most of us grew

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up.

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And if it was talked about, it was

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often talked about, and this is not my

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example.

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So I feel fortunate, but I've seen this

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with other clients and some family members as

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well.

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Um, if money was ever talked about, it

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was an argument about money.

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Right.

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And if you think about what an argument

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between parents does, even if the child isn't

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involved, you know, the child just, you know,

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I just said in a minute ago, more

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is taught than caught.

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They can imprint this belief that money is

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arguments, you know, talking about money is an

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argument.

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Therefore, I'm not going to talk about money

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either.

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And that can stick with them for the

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rest of their life as we referenced in

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the beginning of the show.

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So parents modeling good behavior and, uh, methods

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of teaching a child to be literate, to

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understand finances.

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I think it is, it's a good topic

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for us today.

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And, you know, you mentioned the allowance in

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middle school.

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So let's start there.

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It's like, how old should a child be

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before that you start to introduce them to

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money?

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And I think it's really young.

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I think, um, you know, it doesn't have

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to be an allowance, but an allowance is

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a great place to start where they understand

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that they receive money.

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I think if there's a work component to

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it, it's, it's more related.

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Like there's also an ethic there.

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Like you get this, I don't know, $5

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would do it today.

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You know, I, I hear what I was,

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I was at a concert, um, like a

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small community concert with some friends and they

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were talking about that their daughter was giving

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our friend's daughter was giving their grandchild an

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allowance.

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And it was like, I think it was

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$50.

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It wasn't a week, maybe, maybe that was

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a month, but I'm like, then you hear

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what babysitters make, like this is a different

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world, but back off the tangent, back to

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allowance and allowance.

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It's based on something.

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Even if it's something the child was doing

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anyway, just so there's some connection between having

272
00:09:54,530 --> 00:09:57,530
money and doing something, whether it's, you know,

273
00:09:57,570 --> 00:09:59,830
$10 a week, because you make your bed

274
00:09:59,830 --> 00:10:01,970
every morning and you can pick up your

275
00:10:01,970 --> 00:10:04,930
room and you, and you bring your laundry

276
00:10:04,930 --> 00:10:07,970
to the laundry room or whatever the parent

277
00:10:07,970 --> 00:10:09,550
decides, just some connection.

278
00:10:09,830 --> 00:10:11,910
And if there's, and if they don't perform,

279
00:10:12,190 --> 00:10:14,650
then they don't get that allowance.

280
00:10:14,650 --> 00:10:17,290
So if you don't go to work, as

281
00:10:17,290 --> 00:10:19,470
simple as that is, that's a, a important

282
00:10:19,470 --> 00:10:21,690
lesson to instill on young people.

283
00:10:22,090 --> 00:10:22,570
It's a good point.

284
00:10:22,730 --> 00:10:22,930
Yeah.

285
00:10:23,150 --> 00:10:26,210
I think, um, you know, the big, the

286
00:10:26,210 --> 00:10:27,970
big, uh, thing with the allowance for me

287
00:10:27,970 --> 00:10:30,170
that was helpful and, and I would, the

288
00:10:30,170 --> 00:10:32,590
reason I would encourage it now is like,

289
00:10:33,470 --> 00:10:35,410
you know, if you give the kid a

290
00:10:35,410 --> 00:10:38,690
few dollars, then it's up to them, they're

291
00:10:38,690 --> 00:10:39,990
not going to get money again for another

292
00:10:39,990 --> 00:10:41,450
couple of weeks or whatever it is like

293
00:10:41,450 --> 00:10:44,630
that's, that's their budget, let's say.

294
00:10:45,290 --> 00:10:46,910
So then it's up to them how they're

295
00:10:46,910 --> 00:10:47,250
going to spend it.

296
00:10:47,290 --> 00:10:49,950
They spend it day one on, uh, whatever

297
00:10:49,950 --> 00:10:53,210
$5 we'll get you, but, or they spread

298
00:10:53,210 --> 00:10:55,230
it out and some will, but the lesson

299
00:10:55,230 --> 00:10:58,410
of them not having the money to go

300
00:10:58,410 --> 00:11:00,590
get that ice cream that they wanted, or,

301
00:11:00,710 --> 00:11:02,930
you know, something that the parent wasn't going

302
00:11:02,930 --> 00:11:05,170
to buy anyway, is the lesson that maybe

303
00:11:05,170 --> 00:11:06,910
you have to defer some of your spending.

304
00:11:07,210 --> 00:11:07,610
Yeah.

305
00:11:07,710 --> 00:11:10,370
And that's how you start grasping how money

306
00:11:10,370 --> 00:11:11,830
actually works as a kid.

307
00:11:11,830 --> 00:11:15,650
So another lesson that I was taught and

308
00:11:15,650 --> 00:11:18,390
it's, it's kind of the focus of most,

309
00:11:18,670 --> 00:11:22,030
I was reviewing some lessons, uh, that are

310
00:11:22,030 --> 00:11:23,910
suggested for young people prior to the podcast,

311
00:11:23,910 --> 00:11:25,970
and this was in a couple of them.

312
00:11:26,210 --> 00:11:29,650
And I'm sure my mother and grandparents didn't

313
00:11:29,650 --> 00:11:32,090
read these articles, you know, 50 years ago,

314
00:11:32,110 --> 00:11:36,010
but teach your children, grandchildren, what money is

315
00:11:36,010 --> 00:11:36,430
for.

316
00:11:36,510 --> 00:11:38,210
And it's not just for spending.

317
00:11:38,210 --> 00:11:40,370
Cause I think that can be, you know,

318
00:11:40,470 --> 00:11:43,070
that can be a, uh, inadvertent lesson.

319
00:11:43,070 --> 00:11:43,930
Like, here's your money.

320
00:11:43,990 --> 00:11:44,790
What are you going to buy?

321
00:11:45,070 --> 00:11:45,170
Right.

322
00:11:45,550 --> 00:11:46,050
That's true.

323
00:11:46,350 --> 00:11:46,530
Right.

324
00:11:46,630 --> 00:11:49,590
So money is to spend money's to enjoy,

325
00:11:49,710 --> 00:11:52,190
but money is also to save.

326
00:11:52,430 --> 00:11:57,150
So teaching the concept of delayed gratification, which

327
00:11:57,150 --> 00:12:02,090
most of us don't have anymore, right between,

328
00:12:02,090 --> 00:12:05,350
uh, online shopping and, you know, pay now,

329
00:12:05,730 --> 00:12:09,010
not pay now, buy now, pay later, you

330
00:12:09,010 --> 00:12:10,610
know, and all of these ways to defer

331
00:12:10,610 --> 00:12:13,970
the responsibility for something you're having right now,

332
00:12:14,610 --> 00:12:17,490
uh, teaching your child that money's for some

333
00:12:17,490 --> 00:12:20,490
shopping for some buying, but also for saving

334
00:12:20,490 --> 00:12:22,630
for something that is larger than you can

335
00:12:22,630 --> 00:12:26,530
have in one week, uh, delayed gratification, deferred

336
00:12:26,530 --> 00:12:26,890
spending.

337
00:12:26,890 --> 00:12:29,890
And it's also a tool to do good

338
00:12:29,890 --> 00:12:31,870
with it, to give some money away.

339
00:12:32,250 --> 00:12:34,230
So to spend it, to save it and

340
00:12:34,230 --> 00:12:38,810
to give it and to encourage, um, I,

341
00:12:38,970 --> 00:12:40,970
this is a strategy I used with our

342
00:12:40,970 --> 00:12:41,430
granddaughter.

343
00:12:42,930 --> 00:12:44,850
Um, she's older now, but when she was

344
00:12:44,850 --> 00:12:47,410
younger and I would give her money, I

345
00:12:47,410 --> 00:12:48,750
would say, so you got three things you

346
00:12:48,750 --> 00:12:49,790
have to do with this money.

347
00:12:50,010 --> 00:12:51,350
You can spend some of it.

348
00:12:51,490 --> 00:12:54,410
You can save some of this later and

349
00:12:54,410 --> 00:12:55,970
you can give some of it and you

350
00:12:55,970 --> 00:12:57,770
get to decide how much, but I'd like

351
00:12:57,770 --> 00:12:59,370
you to do all three.

352
00:13:00,030 --> 00:13:00,430
Yeah.

353
00:13:01,810 --> 00:13:04,310
And, uh, is it teaches the, you know,

354
00:13:04,350 --> 00:13:06,350
the, on the charity side, even if, even

355
00:13:06,350 --> 00:13:08,190
if they take a small portion of it,

356
00:13:08,270 --> 00:13:12,450
they see how they feel when they help

357
00:13:12,450 --> 00:13:15,030
somebody else with, uh, with faith, we'd encourage

358
00:13:15,030 --> 00:13:16,250
you to, you know, put some of that

359
00:13:16,250 --> 00:13:18,470
money in the church plate, if you would

360
00:13:18,470 --> 00:13:20,830
go to church with us, or if there

361
00:13:20,830 --> 00:13:23,170
was a something in the community or whatever

362
00:13:23,170 --> 00:13:25,090
it was, and you get that feeling of

363
00:13:25,090 --> 00:13:26,610
giving, which we all know is when you

364
00:13:26,610 --> 00:13:29,110
give, you always get more back, you know,

365
00:13:29,250 --> 00:13:32,790
spiritually and personally than what you gave.

366
00:13:33,090 --> 00:13:35,610
So teaching those three things all the time,

367
00:13:35,650 --> 00:13:36,850
no matter what age the child is.

368
00:13:36,990 --> 00:13:38,590
But I think then what I've read and

369
00:13:38,590 --> 00:13:40,990
from what I've studied, um, over the years

370
00:13:41,410 --> 00:13:43,390
around first grade is a great time to

371
00:13:43,390 --> 00:13:46,310
start this around age six is when children

372
00:13:46,310 --> 00:13:49,950
have the capacity to really understand and start

373
00:13:49,950 --> 00:13:51,090
to learn these things.

374
00:13:52,450 --> 00:13:52,550
Yeah.

375
00:13:52,890 --> 00:13:54,210
I think that, that, that makes sense.

376
00:13:54,210 --> 00:13:57,090
The earlier, the better, even, even like, uh,

377
00:13:57,090 --> 00:13:58,970
recently, uh, I was, I was kind of

378
00:13:58,970 --> 00:14:01,250
looking, I have a friend who recently had

379
00:14:01,250 --> 00:14:03,290
a kid and very young, but I was

380
00:14:03,290 --> 00:14:04,710
thinking like, wouldn't it be fun to get

381
00:14:04,710 --> 00:14:07,490
like a book on like a very early

382
00:14:07,490 --> 00:14:10,030
childhood book on money and, and, uh, just

383
00:14:10,030 --> 00:14:11,350
to kind of expose it to the idea

384
00:14:11,350 --> 00:14:14,010
of like a piggy bank and, um, you

385
00:14:14,010 --> 00:14:15,770
know, just exposure to that kind of thinking

386
00:14:15,770 --> 00:14:17,650
is, uh, is, as you said, I think

387
00:14:17,650 --> 00:14:19,910
first grade definitely makes sense to when the

388
00:14:19,910 --> 00:14:22,610
kids are understanding what's going on and right.

389
00:14:22,610 --> 00:14:24,430
They're getting some structure in their life anyway.

390
00:14:24,710 --> 00:14:25,150
Exactly.

391
00:14:26,230 --> 00:14:28,450
But I would think like as, as early

392
00:14:28,450 --> 00:14:30,230
as you can, just to start instilling some

393
00:14:30,230 --> 00:14:32,950
of those, um, ideas, uh, I think makes

394
00:14:32,950 --> 00:14:33,590
a lot of sense.

395
00:14:34,210 --> 00:14:36,510
And I guess another step that people used

396
00:14:36,510 --> 00:14:38,170
to take and it was more concrete.

397
00:14:38,170 --> 00:14:39,470
So I'm not sure it has the same

398
00:14:39,470 --> 00:14:41,930
impact, but, uh, taking the child and opening

399
00:14:41,930 --> 00:14:42,710
a bank account.

400
00:14:43,470 --> 00:14:46,130
I mean, I remember going to the bank

401
00:14:46,130 --> 00:14:48,130
with my mom and having a little savings

402
00:14:48,130 --> 00:14:49,170
account with a book.

403
00:14:49,230 --> 00:14:51,170
It was, I think we're before your time,

404
00:14:51,270 --> 00:14:51,430
Russ.

405
00:14:51,430 --> 00:14:52,830
I'm sorry, but I'm going back.

406
00:14:53,270 --> 00:14:55,070
Used to get a book, a passbook.

407
00:14:55,530 --> 00:14:57,810
It was, it looked like a passport and

408
00:14:57,810 --> 00:14:59,970
you would go in with your money and

409
00:14:59,970 --> 00:15:00,830
give it to the teller.

410
00:15:01,130 --> 00:15:02,890
And she'd have a dot matrix printer.

411
00:15:03,030 --> 00:15:05,630
She'd put the passbook in and you'd hear,

412
00:15:05,810 --> 00:15:09,110
and that would be the printing of your

413
00:15:09,110 --> 00:15:11,350
deposit plus your interest and you'd see your

414
00:15:11,350 --> 00:15:15,050
new balance and that was a pretty powerful

415
00:15:15,050 --> 00:15:16,990
thing to save some money and see it

416
00:15:16,990 --> 00:15:20,430
building in there and to have that physical

417
00:15:20,430 --> 00:15:22,890
thing, I think the same concept can work

418
00:15:22,890 --> 00:15:25,050
with opening an online bank account with your

419
00:15:25,050 --> 00:15:28,570
child now, or still a physical bank, you're

420
00:15:28,570 --> 00:15:29,950
not going to have that passbook, you're going

421
00:15:29,950 --> 00:15:31,370
to have a random receipt maybe.

422
00:15:32,810 --> 00:15:35,410
Um, so it's probably a little less, yeah,

423
00:15:35,510 --> 00:15:39,390
it's not as interactive and as a kid

424
00:15:39,390 --> 00:15:41,890
having that visual and the sounds and everything

425
00:15:41,890 --> 00:15:43,970
like that obviously left an impact.

426
00:15:44,130 --> 00:15:45,530
So there is a little bit of that

427
00:15:45,530 --> 00:15:48,350
missing these days, I would think, but, um,

428
00:15:48,710 --> 00:15:52,390
I know that, yeah, one thing, um, that

429
00:15:52,390 --> 00:15:55,870
I read recently was, uh, and I don't

430
00:15:55,870 --> 00:15:57,070
even know where I saw this, but they

431
00:15:57,070 --> 00:15:59,450
were saying for kids rather than having like

432
00:15:59,450 --> 00:16:02,070
the traditional piggy bank where like, it's like

433
00:16:02,070 --> 00:16:06,670
a big, like a see-through jar that

434
00:16:06,670 --> 00:16:08,950
they can see the money like building and

435
00:16:08,950 --> 00:16:10,710
growing and accumulating.

436
00:16:10,730 --> 00:16:12,710
I think that just those visuals and those

437
00:16:12,710 --> 00:16:14,930
more interactive things are really good for kids.

438
00:16:15,470 --> 00:16:15,610
Yep.

439
00:16:16,350 --> 00:16:19,290
And although the passbook was very powerful with

440
00:16:19,290 --> 00:16:21,510
an online bank, you could use the graphics

441
00:16:21,510 --> 00:16:24,110
that they have probably to show a bar

442
00:16:24,110 --> 00:16:25,790
chart or, you know, a graph of some

443
00:16:25,790 --> 00:16:26,930
type of what's happening.

444
00:16:27,830 --> 00:16:31,410
And also an advantage today, um, as these

445
00:16:31,410 --> 00:16:33,530
children get older is you can use some

446
00:16:33,530 --> 00:16:36,310
of the financial calculators online to, you know,

447
00:16:36,310 --> 00:16:38,670
say, well, what if you saved $5 a

448
00:16:38,670 --> 00:16:42,450
week, you know, for 10 years and you

449
00:16:42,450 --> 00:16:46,170
earned a certain percentage of interest, how much

450
00:16:46,170 --> 00:16:47,130
do you think you'd have?

451
00:16:47,270 --> 00:16:49,770
And the power, a lesson I think to

452
00:16:49,770 --> 00:16:52,190
imprint very early, you know, maybe we're up

453
00:16:52,190 --> 00:16:55,010
10 or 12 years old now when they

454
00:16:55,010 --> 00:16:57,550
understand math concepts better than first grade.

455
00:16:57,670 --> 00:16:57,830
Right.

456
00:16:58,190 --> 00:17:03,170
But to show them compounding interest and the

457
00:17:03,170 --> 00:17:05,770
power of it, because it is something that,

458
00:17:05,770 --> 00:17:08,990
uh, most people don't understand until they actually

459
00:17:08,990 --> 00:17:10,310
do it for themselves.

460
00:17:10,310 --> 00:17:12,630
You know, they used to get the calculator

461
00:17:12,630 --> 00:17:14,349
and do it, but now you get all

462
00:17:14,349 --> 00:17:17,150
these software programs and to see that, you

463
00:17:17,150 --> 00:17:21,510
know, virtually anyone can become a millionaire if

464
00:17:21,510 --> 00:17:24,030
they have this long-term vision and they

465
00:17:24,030 --> 00:17:26,329
put money aside and they invest it and

466
00:17:26,329 --> 00:17:29,130
they stay focused and disciplined over your working

467
00:17:29,130 --> 00:17:29,550
career.

468
00:17:29,690 --> 00:17:32,950
It is not super difficult to save more

469
00:17:32,950 --> 00:17:33,930
than a million dollars.

470
00:17:34,330 --> 00:17:34,850
Yeah.

471
00:17:34,850 --> 00:17:35,170
Yeah.

472
00:17:36,230 --> 00:17:39,250
I think, um, when, when that, when I

473
00:17:39,250 --> 00:17:41,850
first realized, uh, like comp, I mean, that

474
00:17:41,850 --> 00:17:43,390
was something I didn't really learn much about,

475
00:17:43,450 --> 00:17:45,770
definitely not in school about compounding interest.

476
00:17:46,030 --> 00:17:47,390
Like I didn't be part of a math

477
00:17:47,390 --> 00:17:48,590
class somewhere.

478
00:17:48,770 --> 00:17:48,870
Right.

479
00:17:49,050 --> 00:17:50,930
And I hope, I hope it is more

480
00:17:50,930 --> 00:17:53,050
these days, but I definitely had, we had

481
00:17:53,050 --> 00:17:55,350
nothing about, about finance in my school really.

482
00:17:55,970 --> 00:17:58,070
And, um, I remember seeing, I think it

483
00:17:58,070 --> 00:18:00,190
was an online calculator when I was early

484
00:18:00,190 --> 00:18:02,390
in my teenage years.

485
00:18:03,430 --> 00:18:06,210
Um, and seeing like the chart of compounding

486
00:18:06,210 --> 00:18:08,850
where it's like your contribution is small and

487
00:18:08,850 --> 00:18:11,390
then the, the interest or the growth is,

488
00:18:11,570 --> 00:18:13,050
is higher and higher and higher.

489
00:18:13,150 --> 00:18:16,110
And at the end of whatever, 30 years,

490
00:18:16,190 --> 00:18:18,970
40 years, the, um, amount that you contribute

491
00:18:18,970 --> 00:18:21,790
is tiny compared to what's, uh, the growth

492
00:18:21,790 --> 00:18:22,450
on top of that.

493
00:18:22,650 --> 00:18:24,730
So, uh, when I first saw that, I

494
00:18:24,730 --> 00:18:26,390
was like, wow, that was a, that was

495
00:18:26,390 --> 00:18:26,930
an eye opener.

496
00:18:27,330 --> 00:18:30,090
So, uh, definitely showing that to kids, I

497
00:18:30,090 --> 00:18:32,510
think, uh, at the right age would, would

498
00:18:32,510 --> 00:18:34,310
make sense and, and help them get a

499
00:18:34,310 --> 00:18:35,970
sense of, all right, wow, this, there's something,

500
00:18:35,990 --> 00:18:37,470
something to this savings idea.

501
00:18:37,970 --> 00:18:38,290
That's right.

502
00:18:38,370 --> 00:18:38,990
That's right.

503
00:18:39,450 --> 00:18:41,710
And, um, so when the, when a child,

504
00:18:41,830 --> 00:18:43,670
you know, is 12 or getting into the

505
00:18:43,670 --> 00:18:46,410
teenagers, I guess there's some debate and this

506
00:18:46,410 --> 00:18:48,470
is a parent parental decision, but at some

507
00:18:48,470 --> 00:18:50,270
point it, I think it's helpful if they're

508
00:18:50,270 --> 00:18:52,850
responsible, obviously if they spend every dollar and

509
00:18:52,850 --> 00:18:54,870
they, you know, borrow money from the local

510
00:18:54,870 --> 00:18:56,450
bookie, we don't want to do this, but,

511
00:18:56,630 --> 00:18:59,690
you know, assuming that the child is learning

512
00:18:59,690 --> 00:19:04,450
and interested, um, I think providing them with

513
00:19:04,450 --> 00:19:07,210
a debit card for their own account, do

514
00:19:07,210 --> 00:19:08,370
not give them your debit card.

515
00:19:08,430 --> 00:19:11,190
I'm not, don't say Jeff Perry said, give

516
00:19:11,190 --> 00:19:12,690
them your debit card.

517
00:19:12,870 --> 00:19:15,510
Now having it, having a debit card, Fidelity

518
00:19:15,510 --> 00:19:16,490
has a great program.

519
00:19:16,570 --> 00:19:17,450
They have youth accounts.

520
00:19:18,130 --> 00:19:21,350
Um, we created one for faith a number

521
00:19:21,350 --> 00:19:23,710
of years ago and it has a lot

522
00:19:23,710 --> 00:19:26,430
of educational materials on it, um, that they

523
00:19:26,430 --> 00:19:29,430
watched, you know, to get onboarded, if you

524
00:19:29,430 --> 00:19:31,130
will, and there's different ones for different ages,

525
00:19:31,230 --> 00:19:33,330
but the foundation is a debit card that

526
00:19:33,330 --> 00:19:35,410
they can use that is controlled, there's not

527
00:19:35,410 --> 00:19:37,450
going to be a big fee if they

528
00:19:37,450 --> 00:19:39,290
spend all their money.

529
00:19:39,430 --> 00:19:41,950
You know, there's not, it's designed to, obviously

530
00:19:41,950 --> 00:19:44,030
it's designed to bring people as customers, as

531
00:19:44,030 --> 00:19:46,210
adults to Fidelity, that's what it's designed for,

532
00:19:46,270 --> 00:19:48,570
but it has the benefit of letting them

533
00:19:48,570 --> 00:19:51,230
make some mistakes with the debit card and

534
00:19:51,230 --> 00:19:53,090
seeing how to use it and seeing the

535
00:19:53,090 --> 00:19:54,950
online accounts and being able to put money

536
00:19:54,950 --> 00:19:57,150
in and so forth, and they can even

537
00:19:57,150 --> 00:19:59,030
invest in, in the debit, in the youth

538
00:19:59,030 --> 00:19:59,370
account.

539
00:19:59,530 --> 00:20:01,110
If they want to, if you can build

540
00:20:01,110 --> 00:20:02,730
up a little bit and, you know, buy

541
00:20:02,730 --> 00:20:04,390
a share of Disney or whatever the child

542
00:20:04,390 --> 00:20:06,170
wants to do, if you want to expose

543
00:20:06,170 --> 00:20:07,730
them to investing, it does that.

544
00:20:08,250 --> 00:20:08,350
Yeah.

545
00:20:08,590 --> 00:20:12,090
But I think it's good to associate a

546
00:20:12,090 --> 00:20:15,050
debit card with them early because, you know,

547
00:20:15,070 --> 00:20:19,390
many times, um, people, young people are not

548
00:20:19,390 --> 00:20:21,550
exposed to actually having a debit card or

549
00:20:21,550 --> 00:20:23,810
a credit card until they're in college, they're

550
00:20:23,810 --> 00:20:24,150
18.

551
00:20:24,670 --> 00:20:26,810
They go to some campus thing and they

552
00:20:26,810 --> 00:20:29,010
get a, you know, a free t-shirt.

553
00:20:29,210 --> 00:20:30,830
If you open this credit card or debit

554
00:20:30,830 --> 00:20:32,590
card and they're off to the races without

555
00:20:32,590 --> 00:20:37,730
any really guidance or formal kind of mentoring,

556
00:20:37,950 --> 00:20:39,410
they have a debit card now.

557
00:20:39,530 --> 00:20:41,550
And, you know, there's a million stories about

558
00:20:41,550 --> 00:20:42,350
what can go wrong.

559
00:20:43,190 --> 00:20:43,370
Right.

560
00:20:43,870 --> 00:20:45,370
And I think there's like debit cards too,

561
00:20:45,470 --> 00:20:47,570
and maybe this is the same where, you

562
00:20:47,570 --> 00:20:49,730
know, uh, you could even have it set

563
00:20:49,730 --> 00:20:52,130
up where they have like a specific limit,

564
00:20:52,230 --> 00:20:54,390
like the allowance can be on debit card.

565
00:20:54,750 --> 00:20:54,910
Yes.

566
00:20:55,110 --> 00:20:57,990
And then it just gets the child used

567
00:20:57,990 --> 00:20:59,730
to using that because, you know, credit cards,

568
00:20:59,810 --> 00:21:00,990
debit cards are everywhere these days.

569
00:21:00,990 --> 00:21:03,810
So getting to, to understand how that works,

570
00:21:03,810 --> 00:21:04,810
I think is crucial.

571
00:21:05,010 --> 00:21:07,310
In a supervised setting as the parent and

572
00:21:07,310 --> 00:21:09,450
grandparent, you have access to see what they're

573
00:21:09,450 --> 00:21:09,890
doing.

574
00:21:09,890 --> 00:21:10,250
Right.

575
00:21:10,750 --> 00:21:12,490
You know, so you know that they bought

576
00:21:12,490 --> 00:21:14,730
an ice cream or, you know, they're not

577
00:21:14,730 --> 00:21:16,030
sports betting already.

578
00:21:16,030 --> 00:21:16,430
Yeah.

579
00:21:17,330 --> 00:21:21,930
Just to get them into developing positive disciplined

580
00:21:21,930 --> 00:21:24,850
habits while you are there to guide them,

581
00:21:25,310 --> 00:21:27,550
rather than just saying you're 18, go to

582
00:21:27,550 --> 00:21:29,230
the bank and get a, you know, bank

583
00:21:29,230 --> 00:21:29,530
account.

584
00:21:29,650 --> 00:21:31,290
Now I'm not, you know, you're not using

585
00:21:31,290 --> 00:21:31,990
me anymore.

586
00:21:31,990 --> 00:21:33,770
Isn't probably the best advice.

587
00:21:34,010 --> 00:21:35,170
Yeah, absolutely.

588
00:21:35,450 --> 00:21:38,190
It's all about getting them exposed to information

589
00:21:38,190 --> 00:21:41,830
and learning good habits before, and speaking of

590
00:21:41,830 --> 00:21:45,350
good habits, I think it's, and this is

591
00:21:45,350 --> 00:21:46,770
something that used to be so prevalent.

592
00:21:46,870 --> 00:21:49,110
We all had, we all had part-time

593
00:21:49,110 --> 00:21:51,570
jobs growing up, you know, whether they were

594
00:21:51,570 --> 00:21:53,450
summer jobs or whether they were after school

595
00:21:53,450 --> 00:21:56,230
or on the weekends, most young people had

596
00:21:56,230 --> 00:21:59,050
some type of job and that's not what

597
00:21:59,050 --> 00:21:59,830
I see today.

598
00:22:00,030 --> 00:22:04,470
I see very few teenagers, for example, working

599
00:22:04,470 --> 00:22:05,670
and I know they have a lot of

600
00:22:05,670 --> 00:22:06,030
stress.

601
00:22:06,210 --> 00:22:08,010
I know they have a, it's an anxiety

602
00:22:08,010 --> 00:22:10,190
ridden world for a lot of them with

603
00:22:10,190 --> 00:22:12,910
social media and all their, what they're trying

604
00:22:12,910 --> 00:22:14,510
to achieve in school and athletics.

605
00:22:14,510 --> 00:22:17,070
And, but I think having a part-time

606
00:22:17,070 --> 00:22:18,990
job is such a key part of your

607
00:22:18,990 --> 00:22:21,050
financial literacy as you're growing up.

608
00:22:21,790 --> 00:22:22,190
Yeah.

609
00:22:22,490 --> 00:22:22,890
Yeah.

610
00:22:22,910 --> 00:22:23,810
And it goes along with what you were

611
00:22:23,810 --> 00:22:27,190
saying earlier, just like, you know, earning something

612
00:22:27,190 --> 00:22:28,970
like you're putting in the work and then

613
00:22:28,970 --> 00:22:31,850
you're earning from that, you know, like it's,

614
00:22:31,910 --> 00:22:34,890
it's such a huge part of, of, you

615
00:22:34,890 --> 00:22:36,630
know, our culture and, and, you know, you

616
00:22:36,630 --> 00:22:38,270
need, you need to work to have a

617
00:22:38,270 --> 00:22:38,530
living.

618
00:22:38,690 --> 00:22:41,570
And if you're not, if you're waiting until

619
00:22:41,570 --> 00:22:44,030
after college or whatever it is to start

620
00:22:44,030 --> 00:22:46,130
experiencing that, it's like, all right, that's a,

621
00:22:46,130 --> 00:22:46,990
that's a shock.

622
00:22:47,090 --> 00:22:48,730
You know, if there's been no exposure at

623
00:22:48,730 --> 00:22:49,050
all.

624
00:22:50,330 --> 00:22:50,730
Yeah.

625
00:22:50,790 --> 00:22:52,910
Even, I mean, in my experience, I was

626
00:22:52,910 --> 00:22:55,610
I worked at a summer camp for years

627
00:22:55,610 --> 00:22:58,450
and it's a great way to get started.

628
00:22:59,350 --> 00:23:03,070
And, you know, it's like, it is a

629
00:23:03,070 --> 00:23:06,430
job and if it's seasonal, obviously, and you're

630
00:23:06,430 --> 00:23:08,350
outdoors, it's, I think it's a great way

631
00:23:08,350 --> 00:23:11,210
to start for a lot of kids, you

632
00:23:11,210 --> 00:23:13,070
know, that wouldn't necessarily be after school, but

633
00:23:13,070 --> 00:23:15,270
that would be, you know, it could be

634
00:23:15,270 --> 00:23:16,710
summer, it could be after school, it could

635
00:23:16,710 --> 00:23:18,930
be on weekends, whatever works for the family's

636
00:23:18,930 --> 00:23:20,230
schedule and all that, you know, we've got

637
00:23:20,230 --> 00:23:20,970
to get them there.

638
00:23:21,390 --> 00:23:24,130
And this just dovetails right into the, where,

639
00:23:24,250 --> 00:23:25,790
you know, I think about kids getting older

640
00:23:25,790 --> 00:23:28,470
and so maybe offering a debit card, a

641
00:23:28,470 --> 00:23:31,170
youth debit card, teaching them about money.

642
00:23:31,170 --> 00:23:34,750
We're certainly talking about working because these things

643
00:23:34,750 --> 00:23:36,470
are going to come up like, oh, I

644
00:23:36,470 --> 00:23:37,130
need a car.

645
00:23:37,250 --> 00:23:38,110
I want a car.

646
00:23:38,130 --> 00:23:38,410
Right.

647
00:23:38,410 --> 00:23:40,770
So now we're 16 years old and I

648
00:23:40,770 --> 00:23:45,150
want a car or whatever they, you know,

649
00:23:45,250 --> 00:23:47,550
lots of the older they get, the more

650
00:23:47,550 --> 00:23:49,530
expensive that their wants.

651
00:23:49,850 --> 00:23:50,370
Yeah.

652
00:23:50,550 --> 00:23:50,710
Yeah.

653
00:23:50,710 --> 00:23:50,930
Right.

654
00:23:51,370 --> 00:23:53,310
And so how do you handle that as

655
00:23:53,310 --> 00:23:53,810
a parent?

656
00:23:54,050 --> 00:23:56,870
Um, and what message are you sending or

657
00:23:56,870 --> 00:23:58,970
as a grandparent or any, an uncle, whatever,

658
00:23:59,790 --> 00:24:01,270
whatever role you are.

659
00:24:01,310 --> 00:24:03,790
And if the lesson is you don't have

660
00:24:03,790 --> 00:24:06,370
to work, you'll, you'll be gifted to you.

661
00:24:06,370 --> 00:24:09,750
That is very generous and it's wonderful for

662
00:24:09,750 --> 00:24:13,010
the giver, but there's other ways that you

663
00:24:13,010 --> 00:24:15,590
can do it and be generous and still

664
00:24:15,590 --> 00:24:18,390
impart lessons on this, even if it's a

665
00:24:18,390 --> 00:24:19,710
de minimis amount.

666
00:24:20,150 --> 00:24:22,570
So, you know, a lot of the research

667
00:24:22,570 --> 00:24:26,950
that I've read and listened to, um, over

668
00:24:26,950 --> 00:24:29,390
the years indicates like if a child, if

669
00:24:29,390 --> 00:24:31,010
you want to help a child, if you

670
00:24:31,010 --> 00:24:32,830
want to buy the child, the car, at

671
00:24:32,830 --> 00:24:35,430
least have them working so that they can

672
00:24:35,430 --> 00:24:36,470
cover the gas.

673
00:24:36,490 --> 00:24:36,870
Right.

674
00:24:37,310 --> 00:24:40,670
Or, or have them save up a certain

675
00:24:40,670 --> 00:24:41,330
percentage.

676
00:24:41,730 --> 00:24:43,510
You know, it can be from 50, 50

677
00:24:43,510 --> 00:24:45,130
to 90, 10, whatever it is.

678
00:24:45,190 --> 00:24:46,670
If you're going to, if the car is

679
00:24:46,670 --> 00:24:51,340
$5,000, which is a very reasonable price

680
00:24:51,340 --> 00:24:53,640
for a car, tell them that you will

681
00:24:53,640 --> 00:24:56,720
match, you know, you'll pay whatever it is

682
00:24:56,720 --> 00:24:57,860
that you think is right.

683
00:24:58,660 --> 00:24:59,400
Keep it easy.

684
00:24:59,400 --> 00:25:02,160
50% of the car and 50%

685
00:25:02,160 --> 00:25:04,460
of the insurance for the first year, but

686
00:25:04,460 --> 00:25:07,900
you have to get a job and save

687
00:25:07,900 --> 00:25:11,420
the other part because these expenses are going

688
00:25:11,420 --> 00:25:12,260
to go on forever.

689
00:25:12,420 --> 00:25:14,000
You're going to have repairs, explain the whole

690
00:25:14,000 --> 00:25:14,360
thing.

691
00:25:15,320 --> 00:25:18,660
And we all know from our own histories

692
00:25:18,660 --> 00:25:21,700
that if you earn something, you treat it

693
00:25:21,700 --> 00:25:25,020
differently than if it's given to you, whether

694
00:25:25,020 --> 00:25:26,680
it's whatever it is.

695
00:25:26,700 --> 00:25:26,900
Right.

696
00:25:26,900 --> 00:25:29,540
So I think that's what the next step

697
00:25:29,540 --> 00:25:31,800
as, as they're getting older, they've learned about

698
00:25:31,800 --> 00:25:33,620
money, they have a good foundation has been

699
00:25:33,620 --> 00:25:36,280
modeled well by the parents, but when we

700
00:25:36,280 --> 00:25:39,900
get into these big ticket items, I think

701
00:25:39,900 --> 00:25:42,080
the child having some skin in the game

702
00:25:42,080 --> 00:25:44,460
changes the whole way that they look at

703
00:25:44,460 --> 00:25:47,260
that item and their understanding of what you

704
00:25:47,260 --> 00:25:48,700
need to do to be able to support

705
00:25:48,700 --> 00:25:49,400
something that.

706
00:25:49,660 --> 00:25:51,640
You've taken responsibility for.

707
00:25:51,760 --> 00:25:53,140
And in this case, it's a car.

708
00:25:53,920 --> 00:25:54,020
Yeah.

709
00:25:54,380 --> 00:25:56,100
And even if it's a portion and they've

710
00:25:56,100 --> 00:25:58,280
been saving up for that portion that they

711
00:25:58,280 --> 00:26:00,500
were able to afford, that's, you know, money

712
00:26:00,500 --> 00:26:02,020
that they've been building up over time, there's

713
00:26:02,020 --> 00:26:02,760
like that commitment.

714
00:26:03,260 --> 00:26:05,000
Um, and it, it changes the way that

715
00:26:05,000 --> 00:26:07,840
they perceive whatever it is they're, they're getting,

716
00:26:08,000 --> 00:26:08,320
you know?

717
00:26:08,740 --> 00:26:09,020
Yeah.

718
00:26:09,600 --> 00:26:11,260
Um, yeah, very good point.

719
00:26:11,840 --> 00:26:12,240
Absolutely.

720
00:26:12,660 --> 00:26:14,940
I think it's also a great time in

721
00:26:14,940 --> 00:26:17,540
the teenage years, um, or, or before, but

722
00:26:17,540 --> 00:26:20,840
by the teenage years to start including the

723
00:26:20,840 --> 00:26:22,520
children or at least allowing them to hear

724
00:26:22,520 --> 00:26:25,220
some of the family discussions about money and

725
00:26:25,220 --> 00:26:26,920
that, and that doesn't need to be like,

726
00:26:27,320 --> 00:26:28,620
here's how much money we have.

727
00:26:28,700 --> 00:26:31,780
I'm not saying that, but maybe exposing them

728
00:26:31,780 --> 00:26:34,660
to conversations about budgets and how much things

729
00:26:34,660 --> 00:26:36,920
cost to run the house and how much

730
00:26:36,920 --> 00:26:39,800
things cost to do whatever the family's doing

731
00:26:39,800 --> 00:26:42,120
or to explain, you know, we're going on

732
00:26:42,120 --> 00:26:42,960
a family vacation.

733
00:26:43,200 --> 00:26:44,780
This is how much we have to spend

734
00:26:44,780 --> 00:26:45,420
this year.

735
00:26:45,740 --> 00:26:46,180
Yeah.

736
00:26:46,380 --> 00:26:48,400
And this is how much each things cost,

737
00:26:48,420 --> 00:26:50,080
because if you're not exposed to it, you

738
00:26:50,080 --> 00:26:52,760
have no idea that it costs you $10

739
00:26:52,760 --> 00:26:55,160
,000 to spend a week at Disney, right?

740
00:26:55,500 --> 00:26:55,660
Right.

741
00:26:56,300 --> 00:26:58,420
And to show that, you know, to show

742
00:26:58,420 --> 00:27:01,540
the child that there's parking at the airport,

743
00:27:01,660 --> 00:27:05,140
there's airline tickets, there's food, there's hotel, there's

744
00:27:05,140 --> 00:27:08,180
tickets, there's entertainment, there's souvenirs.

745
00:27:08,680 --> 00:27:11,480
And I think it's helpful just to further

746
00:27:11,480 --> 00:27:13,560
educate and set a positive setting.

747
00:27:14,080 --> 00:27:16,380
Not, not to have a complaining like, oh

748
00:27:16,380 --> 00:27:18,540
my God, it's costing us 10,000 rotten

749
00:27:18,540 --> 00:27:18,920
kids.

750
00:27:19,000 --> 00:27:19,760
I can't believe them.

751
00:27:20,080 --> 00:27:22,400
You know, have it in a positive way,

752
00:27:22,500 --> 00:27:25,040
but just exposing them to the discussions between

753
00:27:25,040 --> 00:27:28,280
the parents in this case, or whoever it

754
00:27:28,280 --> 00:27:30,180
is with the child that they can understand

755
00:27:30,180 --> 00:27:31,820
how, how the world works.

756
00:27:32,700 --> 00:27:33,100
Yeah.

757
00:27:33,280 --> 00:27:36,380
I think having that budget conversation, that was

758
00:27:36,380 --> 00:27:37,980
another thing I didn't really learn much about

759
00:27:37,980 --> 00:27:41,380
until later, but the idea of like, all

760
00:27:41,380 --> 00:27:42,920
right, here's our set budget and here's how

761
00:27:42,920 --> 00:27:43,640
we break it down.

762
00:27:43,760 --> 00:27:45,660
And I know a lot of parents that

763
00:27:45,660 --> 00:27:47,380
do that, but they don't talk to their

764
00:27:47,380 --> 00:27:47,960
kids about it.

765
00:27:48,760 --> 00:27:51,020
It's, it's really valuable because you know, kids,

766
00:27:51,120 --> 00:27:52,900
kids, like if we go on a vacation

767
00:27:52,900 --> 00:27:54,740
and their parents are spending money, it's like,

768
00:27:54,860 --> 00:27:56,600
oh yeah, this is like an endless supply,

769
00:27:56,760 --> 00:27:59,180
but a lot of the kids, I mean,

770
00:27:59,180 --> 00:28:00,320
a lot of the parents are, you know,

771
00:28:00,320 --> 00:28:02,060
it's very meticulous and right.

772
00:28:02,360 --> 00:28:03,640
And it can be stressful for the parents

773
00:28:03,640 --> 00:28:05,920
who are trying to deliver that perfect vacation.

774
00:28:06,340 --> 00:28:07,360
So yeah, exactly.

775
00:28:08,220 --> 00:28:11,260
And exposing them not just to spending, but

776
00:28:11,260 --> 00:28:13,760
also savings in different ways, you know, maybe

777
00:28:13,760 --> 00:28:18,300
reinforcing the compound interest values with talking about

778
00:28:18,300 --> 00:28:21,460
investments and saving money outside of banks.

779
00:28:21,620 --> 00:28:23,000
And this is why we do it, you

780
00:28:23,000 --> 00:28:25,220
know, we save money for retirement and save

781
00:28:25,220 --> 00:28:27,260
money for this or that just to broaden

782
00:28:27,260 --> 00:28:29,860
it out, just to help your child get

783
00:28:29,860 --> 00:28:32,300
a longer term vision of how you can

784
00:28:32,300 --> 00:28:34,820
achieve great things with time and work.

785
00:28:35,600 --> 00:28:36,080
Yeah.

786
00:28:36,240 --> 00:28:38,080
And I know one other thing I was

787
00:28:38,080 --> 00:28:40,140
thinking was like a lot of grandparents will

788
00:28:40,140 --> 00:28:43,920
gift like specific securities to their, to their

789
00:28:43,920 --> 00:28:46,420
grandkids, like just to show them, like, look

790
00:28:46,420 --> 00:28:47,940
at this, this is a, now you like,

791
00:28:47,980 --> 00:28:49,500
you could be a part owner of a,

792
00:28:49,500 --> 00:28:52,180
of a Amazon or Tesla or whatever it

793
00:28:52,180 --> 00:28:52,620
might be.

794
00:28:54,160 --> 00:28:56,900
And having that, you know, if the kid

795
00:28:56,900 --> 00:28:58,680
is interested in it, that could be something

796
00:28:58,680 --> 00:29:00,640
that it really opens their eyes to the

797
00:29:00,640 --> 00:29:02,620
idea of saving and investing from an early

798
00:29:02,620 --> 00:29:02,960
age.

799
00:29:03,260 --> 00:29:03,720
So that's another.

800
00:29:04,240 --> 00:29:06,480
Our team leader, Chris Boyd, loves to talk

801
00:29:06,480 --> 00:29:10,120
about this issue in the context of charitable

802
00:29:10,120 --> 00:29:14,280
remainder trusts or different charitable ways.

803
00:29:14,420 --> 00:29:20,740
Like if you have a family who you

804
00:29:20,740 --> 00:29:22,180
can get together all in the same place,

805
00:29:22,200 --> 00:29:23,940
you could do it virtually, I guess, but,

806
00:29:23,960 --> 00:29:26,440
and you have these annual decisions or one

807
00:29:26,440 --> 00:29:30,000
time decisions on where to the family, most

808
00:29:30,000 --> 00:29:32,100
cases, the grandparents or the parents, but where

809
00:29:32,100 --> 00:29:34,120
the family is going to make some charitable

810
00:29:34,120 --> 00:29:37,260
donations to, to create, you don't have to

811
00:29:37,260 --> 00:29:39,020
call it this, but like a mini family

812
00:29:39,020 --> 00:29:40,680
board and have a meeting about it and

813
00:29:40,680 --> 00:29:43,980
talk about where we'd like to donate this

814
00:29:43,980 --> 00:29:46,160
year and maybe give a little piece of

815
00:29:46,160 --> 00:29:49,880
the donation decision to each family member, as

816
00:29:49,880 --> 00:29:51,800
long as they can explain why, you know,

817
00:29:51,900 --> 00:29:54,000
so Sally, who do you think we should

818
00:29:54,000 --> 00:29:55,000
donate money to?

819
00:29:55,160 --> 00:29:58,980
And not just the American red cross, but

820
00:29:58,980 --> 00:30:02,800
why, you know, and then have them articulate

821
00:30:02,800 --> 00:30:05,080
that and kind of maybe even deliver the

822
00:30:05,080 --> 00:30:06,860
check if possible.

823
00:30:07,240 --> 00:30:08,980
There's a lot you can do to make

824
00:30:08,980 --> 00:30:12,280
this a positive experience and to set your

825
00:30:12,280 --> 00:30:14,440
own values, I guess that's the last part

826
00:30:14,440 --> 00:30:15,880
of what we'll talk about for the time

827
00:30:15,880 --> 00:30:19,460
we have remaining, but to set these lifelong

828
00:30:19,460 --> 00:30:23,940
values, legacy values, impart them on your family

829
00:30:23,940 --> 00:30:26,660
and they'll last, they'll last forever.

830
00:30:26,660 --> 00:30:28,320
And hopefully they'll last for generations.

831
00:30:29,120 --> 00:30:31,700
And hopefully they're positive because they're going to

832
00:30:31,700 --> 00:30:33,860
last forever and maybe generations.

833
00:30:34,060 --> 00:30:34,180
Right.

834
00:30:35,100 --> 00:30:35,620
Right.

835
00:30:35,920 --> 00:30:37,660
And, uh, you know, this goes into your

836
00:30:37,660 --> 00:30:39,000
estate planning as well.

837
00:30:39,300 --> 00:30:41,560
It, it, it goes all throughout your life,

838
00:30:41,560 --> 00:30:43,280
these things that you model and these things

839
00:30:43,280 --> 00:30:44,060
that you share.

840
00:30:45,460 --> 00:30:47,820
Um, you know, I, as a lawyer, retired

841
00:30:47,820 --> 00:30:51,240
lawyer, I saw too many times estate plans,

842
00:30:51,240 --> 00:30:54,140
which were very well thought out by the

843
00:30:54,140 --> 00:30:54,980
grantors.

844
00:30:54,980 --> 00:30:59,440
The people wrote them, um, with specific reasons

845
00:30:59,440 --> 00:31:01,660
and they never explained it to their heirs.

846
00:31:01,980 --> 00:31:04,380
And so the meeting never actually really got

847
00:31:04,380 --> 00:31:07,960
there, but if you explain it and if

848
00:31:07,960 --> 00:31:09,000
you don't want to explain it when they're

849
00:31:09,000 --> 00:31:10,560
alive, you can leave a video, you can

850
00:31:10,560 --> 00:31:12,720
leave letters, love letters, life letters.

851
00:31:13,280 --> 00:31:17,380
Um, but you're giving, you're, you're leaving your

852
00:31:17,380 --> 00:31:20,360
legacy many times it's money, but not always.

853
00:31:20,360 --> 00:31:23,220
Um, and if you can articulate the lesson

854
00:31:23,220 --> 00:31:25,900
and the reasons that you're doing things, your

855
00:31:25,900 --> 00:31:28,640
legacy and their view of it and their,

856
00:31:28,760 --> 00:31:31,920
their view of, you know, what that means

857
00:31:31,920 --> 00:31:33,980
to them for their future and their raising

858
00:31:33,980 --> 00:31:37,460
kids, speaking of generations is, can be really

859
00:31:37,460 --> 00:31:38,700
powerful if done correctly.

860
00:31:39,680 --> 00:31:40,220
Yeah.

861
00:31:40,260 --> 00:31:43,220
I think having those conversations, you know, when

862
00:31:43,220 --> 00:31:46,460
it makes sense can be really a game

863
00:31:46,460 --> 00:31:48,260
changer for, for that legacy planning.

864
00:31:48,260 --> 00:31:51,140
But also like just to even just be

865
00:31:51,140 --> 00:31:52,780
a little more transparent, come closer as a

866
00:31:52,780 --> 00:31:53,060
family.

867
00:31:53,180 --> 00:31:54,520
I think that there's a lot of power

868
00:31:54,520 --> 00:31:56,480
to it, uh, to be able to have

869
00:31:56,480 --> 00:31:58,980
those open conversations and it can be as,

870
00:31:59,140 --> 00:32:03,620
you know, uh, Frank and forthcoming as, as

871
00:32:03,620 --> 00:32:04,600
is appropriate.

872
00:32:04,700 --> 00:32:07,340
But, um, to start talking about money, it's,

873
00:32:07,380 --> 00:32:08,580
it's not, it doesn't need to be a

874
00:32:08,580 --> 00:32:09,100
taboo.

875
00:32:09,840 --> 00:32:11,400
It's, uh, it's important.

876
00:32:11,780 --> 00:32:14,120
And, um, especially where, like you said, with

877
00:32:14,120 --> 00:32:16,400
the estate planning and legacy planning, that's really

878
00:32:16,400 --> 00:32:17,680
where it, where it comes into play.

879
00:32:17,680 --> 00:32:19,400
And it's, it's crucial to have those conversations.

880
00:32:20,060 --> 00:32:22,500
I hope this is a conversation, which I

881
00:32:22,500 --> 00:32:23,680
enjoyed very much for us.

882
00:32:23,720 --> 00:32:25,740
And I think it's one that, you know,

883
00:32:25,740 --> 00:32:29,960
financial advisors, financial podcasts, they don't talk much

884
00:32:29,960 --> 00:32:32,220
about, but I think it's important because if

885
00:32:32,220 --> 00:32:34,020
you, if you think about what we've talked

886
00:32:34,020 --> 00:32:36,880
about from very early on, you as a

887
00:32:36,880 --> 00:32:39,340
parent, a grandparent, or someone that loves this

888
00:32:39,340 --> 00:32:45,740
child has an opportunity to mold their values,

889
00:32:46,020 --> 00:32:48,740
um, how they perceive things, how they look

890
00:32:48,740 --> 00:32:50,520
at things positively and negatively.

891
00:32:50,520 --> 00:32:52,620
And we're talking about money specifically, but how

892
00:32:52,620 --> 00:32:56,460
they view money and teach them lessons about

893
00:32:56,460 --> 00:32:58,540
how to build wealth, what to do with

894
00:32:58,540 --> 00:33:00,920
it, to be charitable, to be a saver

895
00:33:00,920 --> 00:33:04,900
and all the way through the upbringing to

896
00:33:04,900 --> 00:33:06,440
their college, through their life.

897
00:33:06,540 --> 00:33:09,380
And even when you are leaving with your

898
00:33:09,380 --> 00:33:13,220
legacy, um, you have an influence to change

899
00:33:13,220 --> 00:33:15,820
your family dynamic and change generations about how

900
00:33:15,820 --> 00:33:17,780
money is viewed in your family.

901
00:33:18,420 --> 00:33:20,160
Um, you have a lot of power there

902
00:33:20,160 --> 00:33:20,880
if you do it right.

903
00:33:21,040 --> 00:33:22,380
And a lot of it's a, be a

904
00:33:22,380 --> 00:33:24,160
wonderful gift for you to be able to

905
00:33:24,160 --> 00:33:26,880
have a positive influence in your family about

906
00:33:26,880 --> 00:33:30,100
how the children and then those children become

907
00:33:30,100 --> 00:33:33,160
parents, teach their generations about money.

908
00:33:33,660 --> 00:33:35,460
Well, we hope you enjoyed this episode.

909
00:33:35,700 --> 00:33:37,420
I hope you'll tune in next week when

910
00:33:37,420 --> 00:33:40,840
we'll have another interesting financial topic until then.

911
00:33:40,840 --> 00:33:43,260
Keep striving for something more.

912
00:33:44,680 --> 00:33:47,020
Thank you for listening to something more with

913
00:33:47,020 --> 00:33:47,720
Chris Boyd.

914
00:33:48,000 --> 00:33:50,180
Call us for help, whether it's for financial

915
00:33:50,180 --> 00:33:54,120
planning or portfolio management, insurance concerns, or those

916
00:33:54,120 --> 00:33:56,160
quality of life issues that make the money

917
00:33:56,160 --> 00:33:59,320
matters matter, whatever's on your mind, visit us

918
00:33:59,320 --> 00:34:02,320
at something more with chrisboyd.com or call

919
00:34:02,320 --> 00:34:08,120
us toll free at 866-771-8901, or

920
00:34:08,120 --> 00:34:12,000
send us your questions to amr-info at

921
00:34:12,000 --> 00:34:13,560
wealthenhancement.com.

922
00:34:13,960 --> 00:34:15,679
You're listening to something more with Chris Boyd,

923
00:34:15,739 --> 00:34:18,300
financial talk show wealth enhancement, advisory services, and

924
00:34:18,300 --> 00:34:20,440
Jay Christopher Boyd provide investment advice on an

925
00:34:20,440 --> 00:34:21,760
individual basis to clients.

926
00:34:21,760 --> 00:34:23,900
Only proper advice depends on a complete analysis

927
00:34:23,900 --> 00:34:25,340
of all facts and circumstances.

928
00:34:25,340 --> 00:34:27,420
The information given on this program is general

929
00:34:27,420 --> 00:34:29,480
financial comments and cannot be relied upon this

930
00:34:29,480 --> 00:34:31,080
pertaining to your specific situation.

931
00:34:31,199 --> 00:34:33,219
Wealth Enhancement Group cannot guarantee that using the

932
00:34:33,219 --> 00:34:35,219
information from this show will generate profits or

933
00:34:35,219 --> 00:34:36,360
ensure freedom from loss.

934
00:34:36,360 --> 00:34:38,699
Listeners should consult their own financial advisors or

935
00:34:38,699 --> 00:34:40,800
conduct their own due diligence before making any

936
00:34:40,800 --> 00:34:41,639
financial decisions.