Kids & Money

Top Money Questions – September 2019

Happy Monday! It’s my favorite day of the week because another episode of the Monday Money Tip Podcast is LIVE! Today, we’re answering your top money questions from September including questions about teaching your kids about money to investing, to automated budgeting tools. In our Current Money Events segment, we’re updating you on the US National Debt and how it affects you. In addition, we’re sharing a success story from Tilicia who has learned to steward the funds she receives better. 

It’s our goal at the end of each episode that you gain hope and encouragement in your financial journey, you’re equipped to take the next step, and that you’ve had FUN with us! 

Find the Monday Money Tip Podcast HERE. Please let us know what you think by leaving us a rating!

Email info@iwbnin.com to ask questions or share success stories.

NOW AVAILABLE TO DOWNLOAD:
iTunes
Stitcher
Spotify
Website
YouTube

About the Episode: 

  • Today we’re answering your top money questions from September including how to teach your kids about money, investing, and what automated budgeting tools to use. 
  • In our Current Money Events segment, we’re updating you on the US National Debt and how it affects you. 
  • Hear a success story from Tilicia who has learned to steward the funds she receives better. 

Resources:
IWBNIN – Tools
US Debt Clock
I Was Broke. Now I’m Not.
OXEN: The Key to an Abundant Harvest
What Everyone Should Know About Money Before They Enter the Real World
Free Course – Top 3 Tools 
I Was Broke. Now I’m Not. Group Study
Annual Budgeting Tool – Entire Year
Annual Budgeting Tool – Month by Month
IWBNIN – Debt Tools
IWBNIN – Budgeting Tools
IWBNIN – Investing Tools
IWBNIN – Saving Tools
Financial Peace Jr.
Charles Schwab
Next Steps – Investing 
IWBNIN Ladder

Quote of the Day: “It’s good to have money and the things that money can buy, but it’s good, too, to check up once in a while and make sure that you haven’t lost the things that money can’t buy.” – George Lorimer

10 Money Lessons Every Parent Should Teach Their Child

One of the great gifts a parent can give their child is to teach and model life skills that will help them live a better life. Transferring excellent money management training and skills to your child will help them have financial confidence as they navigate life.

If you are wondering where to begin, start with the list below!

10 Money Lessons Every Parent Should Teach Their Child

  1. Monthly Budgeting The power of planning money before it is spent helps maximize each and every dollar.
  2. Consistent Saving  Saved money prevents a lot of financial stress.
  3. The Power of Compound Interest  Use compound interest calculator (like this simple one) to show them how time, rate of return, and amount invested will yield exponential results.
  4. Waiting  Many terrible financial decisions are made impulsively. By learning this important lesson, your child can avoid many financial mistakes.
  5. Form Good Money Habits  Good habits are just as difficult to break as bad ones. Help them “make it their habit” to budget, save, invest, and plan the rest.
  6. Generosity  Generous living can help prevent greed and selfishness and positions your child to be a blessing to all who know them.
  7. Debt  Discuss various types of debt: Installment debt (paying something off – a car, a home, etc) and Revolving debt (continuously accessible debt – a credit card or line of credit). Teach them how interest rates and payment terms affect their ability to pay off debt.
  8. Investing  Show them various types of investments: mutual funds, stocks, bonds, real estate, precious metals, small business, franchise, and intellectual property
  9. Passive Income  Demonstrate ways to generate income without having to work for it (dividends from stock ownership, rental income from commercial property, and business ownership income
  10. Net Worth  Share specific ways to increase assets in a tax-advantaged manner.

I’ve never heard a parent say, “I educated my child too much about money.” However, I’ve heard tens of thousands say, “I wish I had learned this stuff before I entered the real world.”

Recommended Resource

Joseph Sangl’s book: What Everyone Should Know About Money Before They Enter The Real World  It is a perfect resource for young people – from high school students to those in their mid-20’s. It has been written with prevention in mind – to help young people become financially confident and avoid common financial mistakes.

Great Graduation Gift Idea – Money Book

weskamgsYou might think a book focused on teaching money tips would be a terrible graduation gift idea, but consider the following about the graduate in your life:

  1. They won’t remember most of their graduation gifts.
  2. They probably haven’t had a single class about managing and winning with money.
  3. If the graduate is your child, lack of financial prowess could result in them moving back into your house.
  4. They’ll probably listen better to someone else teach about money (even though I’ll teach them what you’ve been trying to tell them – something about that parent-child relationship makes them close their ears!).
  5. This is a gift that can help them fund all of the big time dreams in their life!

I encourage you to get your copy of the book (and its related study) today. Most orders ship the same day they are ordered!

Kids & Money Tip: Dreams Should Drive Financial Decisions

NOTE: This is an except from my book for young people – What Everyone Should Know About Money Before They Enter The Real World. It is written for young people just beginning their money relationship. You can learn more and purchase this book and its related study guide HERE. By the way, this book makes an excellent Graduation Gift!

What do you want to accomplish during your lifetime? What have you been put on earth to do?

As you embark into life in the real world, there is no doubt that you have been asking yourself these questions. Sometimes these questions can cause one to feel overwhelmed or fearful. Other times, these questions can fill one with hope and joy. You may be experiencing all of these feelings.

Every person has hopes and dreams they want to achieve. I believe every person has been put on earth for a specific purpose, and I want you to accomplish your hopes and dreams. Most people, however, do not have a written plan for how they are going to achieve their dreams. In fact, more than 50 percent of people who attend one of our personal finance teaching experiences have never written their hopes and dreams on paper. This is very sad.

Henry Ford once said, “Fail to plan. Plan to fail.” This is an incredibly true statement.

I clearly remember the day I was teaching the Financial Learning Experience in a small town. I asked everyone in the room to write their hopes and dreams on paper. When they had finished this task, I asked them this question – “If this is the first time you have ever written down your hopes and dreams in your adult life, please raise your hand.”

As usual, more than half of the room raised a hand, but one person’s hand caught my attention more than the others. It was a man who was over 70 years old and still working a full-time factory job to produce an income for his family. He was working because he had to. I wonder if he would still be working full-time at 70 if he would have written down his hopes and dreams on paper when he was 18.

You have huge potential. What do you want to make sure you accomplish during your lifetime?

You see, it is these dreams which should drive your financial decisions. Not the other way around!

ACTIONS:

  1. Have the young person in your life ask some adults in their life, “What are your dreams?”  Once they have asked several of them, determine how many of those adults are truly allowing their dreams to drive their money decisions and how many are stuck allowing their current financial situation to drive (or prevent) their dreams.
  2. Grab a copy of the book and study it together to help the young person in your life prevent financial mistakes.

Kids & Money Tip – The Rewards of Saving

One of the greatest lessons I learned from my parents as I grew up was saving money for a dream purchase.

honda_c70_deluxe

 

soybean-field

When my twin and I were just turning into wonderful and perfect teenagers (a fact not exactly verified by our parents), we really wanted to purchase a motorcycle. We lived out in the country, and a motorcycle would be a great way to explore our farm and beyond. Our father came up with a great way for us to earn the money to purchase it.

In one of the farm fields, we grew soybeans. The field was producing a fabulous crop of weeds that year. Dad said he would pay us one penny for every weed we pulled or cut down. We pulled enough weeds to buy the motorcycle. It was a Honda C-70 Passport, and it was awesome! Good planning and hard work – coupled with saving – led to a rewarding purchase.

One of the greatest things you could do for the children in your life is to help them fully grasp this concept as it will equip them with a key skill necessary to live a fully funded life.

NOTE: This is an except from my book for young people – What Everyone Should Know About Money Before They Enter The Real World. It is written for young people just beginning their money relationship. You can learn more and purchase this book and its related study guide HERE.