WEBVTT 00:00:15.339 --> 00:00:18.620 Welcome back to another Sci -Fi episode where 00:00:18.620 --> 00:00:22.699 psychology and finances intersect. And today 00:00:22.699 --> 00:00:26.440 we're going to be examining how teens think, 00:00:26.620 --> 00:00:30.699 feel, and behave with money. It is graduation 00:00:30.699 --> 00:00:34.939 season. It's early May. And if you're thinking 00:00:34.939 --> 00:00:39.439 of what can I gift a high school graduate with 00:00:39.439 --> 00:00:47.640 or a college graduate with, knowledge. Now, no 00:00:47.640 --> 00:00:50.140 Army endorsement implied. I'm not saying you 00:00:50.140 --> 00:00:53.020 have to give this book or a book that I've already 00:00:53.020 --> 00:00:57.579 reviewed here on the podcast, but I would encourage 00:00:57.579 --> 00:01:00.159 you to find something, there are several to choose 00:01:00.159 --> 00:01:04.099 from, that would speak into the life of that 00:01:04.099 --> 00:01:07.019 graduate that you love and that you cherish and 00:01:07.019 --> 00:01:11.260 that you want to succeed in life. So the book 00:01:11.260 --> 00:01:13.599 that I happen to be reviewing today, but again, 00:01:13.680 --> 00:01:17.260 no urge or encouragement that this has to be 00:01:17.260 --> 00:01:19.700 the book that you purchase. I just found this 00:01:19.700 --> 00:01:24.359 book quite effective for my own teenager and 00:01:24.359 --> 00:01:29.500 also for myself. I actually listened to the audio 00:01:29.500 --> 00:01:32.620 version before I started taking my daughter, 00:01:32.719 --> 00:01:36.459 my teenager, on day dates over coffee to talk 00:01:36.459 --> 00:01:39.689 about the different chapters. And some not so 00:01:39.689 --> 00:01:42.489 formal. Most of the discussions are informal. 00:01:42.930 --> 00:01:45.870 But the name of the book is Personal Finance 00:01:45.870 --> 00:01:50.189 for Teens 101, The Ultimate Guide to Budget, 00:01:50.390 --> 00:01:55.170 Save, and Invest for Early Financial Independence. 00:01:55.510 --> 00:02:00.129 What parent, what aunt, what uncle, what grandparent 00:02:00.129 --> 00:02:05.469 wouldn't want this for their beloved minor in 00:02:05.469 --> 00:02:10.520 mind, right? And even for those adult or young 00:02:10.520 --> 00:02:14.259 adults that are no longer minors, go back and 00:02:14.259 --> 00:02:17.879 listen to the review on the book, The Talk About 00:02:17.879 --> 00:02:22.240 Money. That's for older, younger adults, but 00:02:22.240 --> 00:02:25.479 it's also good for possibly some high school 00:02:25.479 --> 00:02:29.400 graduates who may already have a good underpinning 00:02:29.400 --> 00:02:33.479 of financial knowledge. But you will get to assess 00:02:33.479 --> 00:02:36.150 that. and see which book is going to be best 00:02:36.150 --> 00:02:40.590 for your teen or your young adult. So let me 00:02:40.590 --> 00:02:43.430 go ahead and preface what this book does not 00:02:43.430 --> 00:02:47.009 provide. So just a disclaimer and a cautionary 00:02:47.009 --> 00:02:50.509 note. I know that we want the best for our kids, 00:02:50.569 --> 00:02:54.150 our grandkids, our nieces, our nephews, even 00:02:54.150 --> 00:02:58.310 godchildren, or any children that come to mind 00:02:58.310 --> 00:03:01.969 that you just want to do well in life. This book 00:03:01.969 --> 00:03:05.330 will not... provide everything that your teen 00:03:05.330 --> 00:03:09.590 desperately needs. It will provide good education, 00:03:09.810 --> 00:03:13.710 and it will provide a good foundation. But if 00:03:13.710 --> 00:03:17.909 every person who received a book actually read 00:03:17.909 --> 00:03:21.030 the entire book, digested the information in 00:03:21.030 --> 00:03:23.949 the book, and applied 100 % of what they read 00:03:23.949 --> 00:03:26.969 in the book, I would be out of a job. You would 00:03:26.969 --> 00:03:29.969 be out of a job as a parent, right? As a guardian 00:03:29.969 --> 00:03:34.169 or anybody who is there to speak wisdom into 00:03:34.169 --> 00:03:40.550 their life. It does not come with modeling. It 00:03:40.550 --> 00:03:45.229 does not come with discussion. So if you're purchasing 00:03:45.229 --> 00:03:48.629 this book for that graduate or you're purchasing 00:03:48.629 --> 00:03:53.210 this book because you just want some... level 00:03:53.210 --> 00:03:55.830 of education or bullet points that will help 00:03:55.830 --> 00:03:59.169 you with those discussions or the modeling, then 00:03:59.169 --> 00:04:02.909 by all means, start looking through it. Buy yourself 00:04:02.909 --> 00:04:06.669 a copy, highlight it, look for things, look for 00:04:06.669 --> 00:04:08.909 those teachable moments that you can slip those 00:04:08.909 --> 00:04:12.449 ideas into. Because listen, they're going to 00:04:12.449 --> 00:04:14.009 have questions about this. They're not going 00:04:14.009 --> 00:04:16.829 to be able to fully read and understand. So open 00:04:16.829 --> 00:04:19.810 it up to discussion. And if you're not the person, 00:04:20.459 --> 00:04:22.660 who might be the right candidate for that, it's 00:04:22.660 --> 00:04:25.980 okay to find them a money mentor. It could be 00:04:25.980 --> 00:04:28.959 someone in your community who you know is really 00:04:28.959 --> 00:04:31.360 good with money and understands it and could 00:04:31.360 --> 00:04:34.100 have these conversations with them. We tend to 00:04:34.100 --> 00:04:36.839 do that with other topics as well, things that 00:04:36.839 --> 00:04:38.579 come up like, wow, you know, I really don't know 00:04:38.579 --> 00:04:40.439 much about that, but I know somebody who does. 00:04:41.100 --> 00:04:44.000 But here's what I would encourage parents, guardians, 00:04:44.180 --> 00:04:47.189 anybody who's listening to this as well. If you 00:04:47.189 --> 00:04:49.769 were to read this book yourself as an adult, 00:04:50.110 --> 00:04:54.709 it is really good. It's not just for teens, but 00:04:54.709 --> 00:04:57.569 it's for adults too. And it's written in such 00:04:57.569 --> 00:05:01.310 a way to where adults can really take the information 00:05:01.310 --> 00:05:04.670 and adjust it. And I'm looking at our PAO rep 00:05:04.670 --> 00:05:07.610 right now, and I'm showing him just how thin 00:05:07.610 --> 00:05:11.420 the book is. It's not thick. It's one of those 00:05:11.420 --> 00:05:13.120 books where you get it like, wow, you know, I 00:05:13.120 --> 00:05:16.100 could actually go through this. I won't just 00:05:16.100 --> 00:05:19.240 put it away because it just looks too overwhelming. 00:05:20.120 --> 00:05:22.300 Here's the other thing that I will caution folks 00:05:22.300 --> 00:05:25.879 on as well is if you ever want someone in your 00:05:25.879 --> 00:05:28.459 life that you love to do something, you must 00:05:28.459 --> 00:05:33.120 also model that something. So if you're giving 00:05:33.120 --> 00:05:37.720 this book to a teen, or to a grad, or to someone 00:05:37.720 --> 00:05:39.620 else in your life because you want them to do 00:05:39.620 --> 00:05:44.180 financially well. Maybe it's also something that 00:05:44.180 --> 00:05:47.519 you need to model. If we want our children to 00:05:47.519 --> 00:05:51.600 eat well, we must eat well. If we want our children 00:05:51.600 --> 00:05:54.879 to speak well, we must speak well. If we want 00:05:54.879 --> 00:05:59.079 our children to plan well, we plan well. If we 00:05:59.079 --> 00:06:03.560 want our children to... become financially independent, 00:06:03.860 --> 00:06:08.279 we must also model financial independence. And 00:06:08.279 --> 00:06:13.259 even if you haven't attained independence, then 00:06:13.259 --> 00:06:15.959 modeling for them and showing for them how you 00:06:15.959 --> 00:06:19.259 are striving for that financial independence. 00:06:19.600 --> 00:06:24.360 It's a great way to get buy -in. Because we know 00:06:24.360 --> 00:06:28.079 the developmental stages of a teenager, they're 00:06:28.079 --> 00:06:30.519 quite volatile. One day they'll want to talk 00:06:30.519 --> 00:06:32.420 with you about it, and the next day they'll completely 00:06:32.420 --> 00:06:34.759 shut you down and say they're not interested. 00:06:34.959 --> 00:06:38.160 And a month later, they have questions. So we 00:06:38.160 --> 00:06:41.279 have to be gracious and ready to talk about this 00:06:41.279 --> 00:06:44.120 with teens as we move forward. So let me dive 00:06:44.120 --> 00:06:45.699 into the book. I did say this is going to be 00:06:45.699 --> 00:06:48.470 a book review, not... An Olivia parenting review. 00:06:48.670 --> 00:06:52.970 Okay. So first, at the outset, in his introduction, 00:06:53.209 --> 00:06:59.709 I like how he likes to move past stereotypes 00:06:59.709 --> 00:07:06.290 and get teenagers thinking about money differently. 00:07:06.350 --> 00:07:09.170 And here's a quote from his book. Did you know 00:07:09.170 --> 00:07:12.750 that over half of teenagers like you already 00:07:12.750 --> 00:07:17.750 have savings? Yes, that's right. Despite the 00:07:17.750 --> 00:07:21.209 stereotype of teens being impulsive spenders, 00:07:21.329 --> 00:07:26.550 many are providing this wrong by diligently saving 00:07:26.550 --> 00:07:31.529 money. It is true. There are teenagers out there 00:07:31.529 --> 00:07:34.569 that are saving. They have a goal. Even if it's 00:07:34.569 --> 00:07:38.050 a small goal, they are doing that. I can attest 00:07:38.050 --> 00:07:40.449 to that in my own home. Now, my husband and I 00:07:40.449 --> 00:07:42.610 would love for them to get to an overarching 00:07:42.610 --> 00:07:45.870 savings goal where it's a larger amount of money, 00:07:45.910 --> 00:07:49.000 but... They have to find resources and income 00:07:49.000 --> 00:07:51.879 that would help support that as well. So a lot 00:07:51.879 --> 00:07:54.259 of times it's about parents being patient, right? 00:07:54.480 --> 00:07:56.860 And so, by the way, the author of this book is 00:07:56.860 --> 00:08:00.439 Freddie Grant. He's relatable. He's likable. 00:08:00.740 --> 00:08:04.019 He's a little funny. He provides quotes in the 00:08:04.019 --> 00:08:06.759 book that would resonate with these youngsters. 00:08:07.319 --> 00:08:10.480 Here's another quote. Managing personal finance 00:08:10.480 --> 00:08:14.730 is not only about money. but also understanding 00:08:14.730 --> 00:08:18.509 how every financial decision you make impacts 00:08:18.509 --> 00:08:23.730 your life, end quote. And this, again, you can 00:08:23.730 --> 00:08:26.589 see already how this is going to be a good book, 00:08:26.649 --> 00:08:30.289 not just for teens, but for adults as well. So 00:08:30.289 --> 00:08:32.250 there are going to be some toes that are stepped 00:08:32.250 --> 00:08:34.549 on if you're listening to this as an adult, and 00:08:34.549 --> 00:08:37.230 you're like, wow, I didn't even know that. That's 00:08:37.230 --> 00:08:39.289 okay, because truth be told, there were a couple 00:08:39.289 --> 00:08:42.090 things when I was listening, I was thinking, 00:08:42.210 --> 00:08:45.750 wow, that's a good point, and I had never thought 00:08:45.750 --> 00:08:48.330 of it that way before, or I didn't know that 00:08:48.330 --> 00:08:51.610 that app existed, or I didn't know that this 00:08:51.610 --> 00:08:55.090 method existed. So it was eye -opening for me 00:08:55.090 --> 00:08:58.960 as well. So his first chapter is get your money 00:08:58.960 --> 00:09:03.779 making mind right. And the reason I love this 00:09:03.779 --> 00:09:06.259 so much is because as a licensed professional 00:09:06.259 --> 00:09:10.360 counselor, I have spent years assisting folks 00:09:10.360 --> 00:09:15.259 in challenging faulty beliefs. In my current 00:09:15.259 --> 00:09:17.779 role as an accredited financial counselor, I'm 00:09:17.779 --> 00:09:20.360 not providing clinical therapy, but I'm still 00:09:20.360 --> 00:09:24.659 helping people challenge. their negative financial 00:09:24.659 --> 00:09:29.440 beliefs or their faulty financial core beliefs. 00:09:29.620 --> 00:09:35.200 And that is his very first chapter. Well done, 00:09:35.399 --> 00:09:38.799 Freddie Grant. Okay, so here's what he says. 00:09:38.980 --> 00:09:43.320 He gives an introduction to money mindset. And 00:09:43.320 --> 00:09:48.320 he asks, why does money mindset matter? And then 00:09:48.320 --> 00:09:51.799 he provides all these different examples of faulty. 00:09:53.289 --> 00:09:56.870 beliefs when it comes to finances? And how do 00:09:56.870 --> 00:10:00.149 they develop? I will be honest and say that I 00:10:00.149 --> 00:10:02.649 think my daughter and I had the best discussion 00:10:02.649 --> 00:10:07.799 on this introductory chapter. It really opened 00:10:07.799 --> 00:10:11.360 her eyes. And I think it was the least boring 00:10:11.360 --> 00:10:14.320 of the chapters that we've discussed so far. 00:10:14.539 --> 00:10:18.519 And there's even a nice little assessment to 00:10:18.519 --> 00:10:21.179 assess their own money mindset. And I'll give 00:10:21.179 --> 00:10:24.820 you just a couple questions that he asked. What's 00:10:24.820 --> 00:10:27.200 your first instinct when you receive money, like 00:10:27.200 --> 00:10:30.919 an allowance or earnings from a job? Or how often 00:10:30.919 --> 00:10:33.840 do you worry about money? What is your reaction 00:10:33.840 --> 00:10:36.759 to the idea of creating a budget? How do you 00:10:36.759 --> 00:10:39.379 view wealthy people? Do you believe that you 00:10:39.379 --> 00:10:41.320 can improve your financial situation through 00:10:41.320 --> 00:10:44.159 your actions? And he just goes on and on. And 00:10:44.159 --> 00:10:47.059 I was thinking, wow, I bet he consulted a psychologist 00:10:47.059 --> 00:10:51.259 with this. It was really good. Okay, so he goes 00:10:51.259 --> 00:10:54.419 on to explain how money mindsets develop. And 00:10:54.419 --> 00:10:56.700 if you didn't know, and I've talked about this 00:10:56.700 --> 00:10:59.259 in different episodes, but he provides four bullet 00:10:59.259 --> 00:11:03.039 points. Family and home environment, right? That's 00:11:03.039 --> 00:11:06.539 why modeling is very important, parents. Cultural 00:11:06.539 --> 00:11:10.019 and societal influences, and parents, a lot of 00:11:10.019 --> 00:11:12.740 times, we don't have control over that. But we 00:11:12.740 --> 00:11:16.659 can control how we choose to discuss and talk 00:11:16.659 --> 00:11:19.059 about those cultural and societal influences 00:11:19.059 --> 00:11:22.919 in our children's lives. Their own personal experiences. 00:11:24.159 --> 00:11:27.480 and education and awareness. And the Army knows 00:11:27.480 --> 00:11:31.279 that. They know that by providing financial literacy 00:11:31.279 --> 00:11:33.279 training, I've provided a whole episode on that, 00:11:33.460 --> 00:11:37.279 that education and awareness is pivotal. I actually 00:11:37.279 --> 00:11:41.039 had a mom call recently whose child is joining 00:11:41.039 --> 00:11:45.210 the Army Guard. And she wanted her son to come 00:11:45.210 --> 00:11:47.909 in for financial counseling before he even went 00:11:47.909 --> 00:11:51.730 to training. And I congratulated her. If I could 00:11:51.730 --> 00:11:53.730 give her a gold star over the phone, I would. 00:11:53.950 --> 00:11:59.649 But I thanked her for taking the initiative to 00:11:59.649 --> 00:12:02.289 make an appointment for her son to make that 00:12:02.289 --> 00:12:05.690 happen. And also a gold star to the recruiter 00:12:05.690 --> 00:12:09.710 who told her how to reach. the personal financial 00:12:09.710 --> 00:12:12.590 counselor here at Redstone Arsenal to make that 00:12:12.590 --> 00:12:15.809 happen because this child does not yet have access 00:12:15.809 --> 00:12:18.409 to the installation. So the personal financial 00:12:18.409 --> 00:12:20.529 counselor can go meet him off the installation 00:12:20.529 --> 00:12:24.870 and provide him some education. Now, a lot of 00:12:24.870 --> 00:12:28.570 these recruits are going to get some level of 00:12:28.570 --> 00:12:30.789 financial education, but boy, when it's done 00:12:30.789 --> 00:12:34.710 one -on -one and there's not that pressure of 00:12:34.710 --> 00:12:36.899 what are people going to think about me? If I 00:12:36.899 --> 00:12:39.120 actually pay attention to this and hang on every 00:12:39.120 --> 00:12:40.980 word and I'm not fooling around like everybody 00:12:40.980 --> 00:12:45.720 else, that goes places. Okay, so then he asked, 00:12:45.799 --> 00:12:49.940 do you have a positive or negative mindset? So 00:12:49.940 --> 00:12:53.740 here's how he defines a positive money mindset. 00:12:54.820 --> 00:12:58.639 When you have a belief that you actually deserve 00:12:58.639 --> 00:13:02.620 wealth. When you take responsibility for financial 00:13:02.620 --> 00:13:07.610 well -being. When you view money as a tool for 00:13:07.610 --> 00:13:11.350 good instead of fearing it, is what he's saying. 00:13:12.190 --> 00:13:17.629 A belief in abundance and practicing positive 00:13:17.629 --> 00:13:21.070 money mantras. And he goes further into that. 00:13:21.149 --> 00:13:25.649 And then he will show what a negative money mindset 00:13:25.649 --> 00:13:31.600 is. And I see so many folks. chronically paralyzed 00:13:31.600 --> 00:13:35.980 by this one that he mentions first. Chronic feelings 00:13:35.980 --> 00:13:39.679 of scarcity. And here's a quote right out of 00:13:39.679 --> 00:13:42.240 his book. If you often feel like you're always 00:13:42.240 --> 00:13:45.419 broke, regardless of your actual financial status, 00:13:45.679 --> 00:13:49.179 it may indicate a negative mindset. This scarcity 00:13:49.179 --> 00:13:52.559 mindset can persist even when your bank account 00:13:52.559 --> 00:13:57.669 says otherwise. End quote. And he goes into more 00:13:57.669 --> 00:14:00.789 negative money mindsets, believing stereotypes 00:14:00.789 --> 00:14:05.110 about wealth. And he goes on to elaborate, you 00:14:05.110 --> 00:14:07.509 know, where folks who believe that wealthy people 00:14:07.509 --> 00:14:10.549 are evil. It's time to check that. There are 00:14:10.549 --> 00:14:13.250 folks who are wealthy who are wanting to impart 00:14:13.250 --> 00:14:16.769 the different education to folks so they too 00:14:16.769 --> 00:14:20.450 can create a lifestyle that they are also seeking. 00:14:21.490 --> 00:14:24.110 Another negative money mindset is viewing money 00:14:24.110 --> 00:14:27.559 as the root of all evil. Or another one, having 00:14:27.559 --> 00:14:30.799 guilt associated with spending. So you can see 00:14:30.799 --> 00:14:34.299 how a lot of this ties back to what he mentioned 00:14:34.299 --> 00:14:36.840 with how your money mindsets develop. And by 00:14:36.840 --> 00:14:41.059 the way, I have three separate episodes on challenging 00:14:41.059 --> 00:14:44.299 financial... negative beliefs I do that with 00:14:44.299 --> 00:14:47.700 another fellow therapist and so for adults that 00:14:47.700 --> 00:14:49.340 one would be a good one if some of these are 00:14:49.340 --> 00:14:52.679 resonating with you so again he's it goes back 00:14:52.679 --> 00:14:55.559 to how he says this comes from family and home 00:14:55.559 --> 00:14:58.679 environment cultural and societal influences 00:14:58.679 --> 00:15:01.600 personal experiences and education and awareness 00:15:01.600 --> 00:15:04.700 these kids need to have the opportunity to educate 00:15:04.700 --> 00:15:08.600 themselves fully on what true financial well 00:15:08.600 --> 00:15:12.840 -being looks like, and feels like. Normalizing 00:15:12.840 --> 00:15:15.820 that for them. And he talks about a growth versus 00:15:15.820 --> 00:15:20.179 a fixed money mindset. So that is that first 00:15:20.179 --> 00:15:24.580 chapter rolled into one. And I love the assessment 00:15:24.580 --> 00:15:28.960 that he provides. The second chapter is get that 00:15:28.960 --> 00:15:32.419 guap. And that's just a phrase that he says is 00:15:32.419 --> 00:15:35.940 all about earning your own money. And absolutely, 00:15:36.019 --> 00:15:38.000 we can encourage our kids to do that, whether 00:15:38.000 --> 00:15:40.940 in the beginning, if it's just chore money, and 00:15:40.940 --> 00:15:43.840 then encouraging them at some point to have a 00:15:43.840 --> 00:15:47.360 paid position. And maybe even if it's not at 00:15:47.360 --> 00:15:50.779 a restaurant or a brick and mortar, it could 00:15:50.779 --> 00:15:53.500 be some other things, which by the way, before 00:15:53.500 --> 00:15:57.059 I forget, he provides, and on the very last pages, 00:15:57.639 --> 00:16:03.659 101 Teen Side Hustles. He gives so many options 00:16:03.659 --> 00:16:06.940 for them to think beyond what parents might be 00:16:06.940 --> 00:16:09.639 saying, what teachers might be saying, what peers 00:16:09.639 --> 00:16:12.759 might be saying. You know, here are so many ways 00:16:12.759 --> 00:16:15.299 that you could make money. And just to name a 00:16:15.299 --> 00:16:18.059 few, teaching music lessons, running errands 00:16:18.059 --> 00:16:21.039 for neighbors. Here's one that I think my 11 00:16:21.039 --> 00:16:23.179 -year -old would probably be really good at, 00:16:23.279 --> 00:16:27.509 makeup or beauty services. That girl. really 00:16:27.509 --> 00:16:31.190 can apply makeup very well. She's gifted in that 00:16:31.190 --> 00:16:33.710 area. Not that I allow her to wear makeup or 00:16:33.710 --> 00:16:36.129 at least full -on makeup at that age, just a 00:16:36.129 --> 00:16:37.990 little. But when I let her have fun with it, 00:16:38.049 --> 00:16:40.529 oh my goodness, it's just absolutely beautiful. 00:16:41.450 --> 00:16:44.529 Performing at events. My youngest also plays 00:16:44.529 --> 00:16:47.149 the violin. We've encouraged her to play at an 00:16:47.149 --> 00:16:50.649 outdoor mall and get some tips for it. Providing 00:16:50.649 --> 00:16:53.870 tech support. Wouldn't it be nice if you have 00:16:53.870 --> 00:16:56.490 a techie in your home and you told the neighborhood, 00:16:56.629 --> 00:16:58.870 hey, if you get stuck with something, just call 00:16:58.870 --> 00:17:01.649 my son or my daughter. They can come over and 00:17:01.649 --> 00:17:03.629 help you with it. But of course, within reason, 00:17:03.690 --> 00:17:06.109 you want to be cautious and make sure you know 00:17:06.109 --> 00:17:08.589 where your children are going, whose homes are 00:17:08.589 --> 00:17:11.750 they going into, maybe accompanying them until 00:17:11.750 --> 00:17:14.130 you know who these folks are. Home organization 00:17:14.130 --> 00:17:17.710 services, online fitness or wellness coaching. 00:17:17.930 --> 00:17:20.809 I've actually seen teens. do that and it's really 00:17:20.809 --> 00:17:24.250 good. So these are just so many examples that 00:17:24.250 --> 00:17:28.089 he provides. So he provides a quote from Chris 00:17:28.089 --> 00:17:32.430 Rock. He said, wealth is not about having a lot 00:17:32.430 --> 00:17:36.289 of money. It's about having a lot of options. 00:17:36.789 --> 00:17:39.289 And so again, just one of those wonderful things 00:17:39.289 --> 00:17:42.190 that he does to incorporate some quotes from 00:17:42.190 --> 00:17:45.109 folks that these kids might know and get them 00:17:45.109 --> 00:17:47.210 excited about what they're saying too. Here's 00:17:47.210 --> 00:17:50.250 a quote. Embarking on your journey to earn money 00:17:50.250 --> 00:17:53.170 isn't just about filling your wallet. It's about 00:17:53.170 --> 00:17:55.710 exploring opportunities, gaining independence, 00:17:56.130 --> 00:17:59.109 and understanding the value of hard work and 00:17:59.109 --> 00:18:04.250 smart decision making. I love that because we 00:18:04.250 --> 00:18:07.750 can emphasize that with our kids. Hey, what did 00:18:07.750 --> 00:18:10.690 you think about this paragraph? And ask them 00:18:10.690 --> 00:18:13.430 what their take is on just those couple sentences 00:18:13.430 --> 00:18:19.339 alone because what... That would actually reveal 00:18:19.339 --> 00:18:23.539 to you what their money mindset is. And do they 00:18:23.539 --> 00:18:26.099 have a negativistic view on money or do they 00:18:26.099 --> 00:18:29.319 have a positive one? And then having those conversations 00:18:29.319 --> 00:18:34.779 that money does not have to be hard because if 00:18:34.779 --> 00:18:37.960 it really is just about filling your wallet. 00:18:38.400 --> 00:18:41.220 Excuse me, if it's not really just about filling 00:18:41.220 --> 00:18:43.880 your wallet, but exploring opportunities, gaining 00:18:43.880 --> 00:18:46.079 independence and understanding the value of hard 00:18:46.079 --> 00:18:49.480 work and smart decision making, perhaps they 00:18:49.480 --> 00:18:52.400 could start looking at money differently. Because 00:18:52.400 --> 00:18:55.259 they've already been given the freedom in a book 00:18:55.259 --> 00:18:59.119 that was written not by you, because we all know 00:18:59.119 --> 00:19:01.619 how parental advice can go over sometimes, but 00:19:01.619 --> 00:19:04.869 by somebody they don't know. that, wow, I could 00:19:04.869 --> 00:19:07.730 buy into this. It's not just about wealth. It's 00:19:07.730 --> 00:19:09.450 not about building wealth. It's about building 00:19:09.450 --> 00:19:13.069 financial well -being. And let me tell you something. 00:19:13.170 --> 00:19:16.829 He goes full on into the value of work. It's 00:19:16.829 --> 00:19:19.410 not just about building or earning money. It's 00:19:19.410 --> 00:19:22.089 about building character, skill development, 00:19:22.349 --> 00:19:24.630 preparation for adulthood, hands -on financial 00:19:24.630 --> 00:19:28.410 management, and gaining a sense of responsibility. 00:19:28.769 --> 00:19:31.849 And he also says, hey, put your school studies 00:19:31.849 --> 00:19:35.440 first. And I agree with that. I love that. And 00:19:35.440 --> 00:19:38.079 there's actually studies separate from the book 00:19:38.079 --> 00:19:42.039 that actually talk about how teenagers who put 00:19:42.039 --> 00:19:44.420 work before studies, even though they're making 00:19:44.420 --> 00:19:46.720 good money and they're saving and they're getting 00:19:46.720 --> 00:19:48.700 that first apartment, able to move out as quickly 00:19:48.700 --> 00:19:51.359 as possible, it's harming them in the long run. 00:19:51.420 --> 00:19:54.420 And they really don't have higher incomes. It's 00:19:54.420 --> 00:19:56.920 best to have these conversations with your children. 00:19:57.119 --> 00:20:00.650 And I love also that he talks about Work and 00:20:00.650 --> 00:20:03.390 the world of work is not just being contained 00:20:03.390 --> 00:20:07.309 in a college education. Obviously, it's great. 00:20:07.410 --> 00:20:10.769 College education is great. But traits are also 00:20:10.769 --> 00:20:15.109 explored. And other entrepreneurial ventures 00:20:15.109 --> 00:20:18.990 and other modes of making money are explored 00:20:18.990 --> 00:20:22.710 as well. Now, here's something, parents. If you 00:20:22.710 --> 00:20:25.759 don't know how to... walk your team through their 00:20:25.759 --> 00:20:28.680 first job and filing their first income tax return, 00:20:28.940 --> 00:20:34.019 he tells them how to do it. So I like that. Okay, 00:20:34.079 --> 00:20:36.940 so then he goes further into his next chapter, 00:20:37.099 --> 00:20:40.900 turning ideas into enterprises. This is where 00:20:40.900 --> 00:20:44.259 he goes further into career exploration and helping 00:20:44.259 --> 00:20:46.799 them understand that the world of work is not 00:20:46.799 --> 00:20:49.440 just about how much money you make. It's about 00:20:49.440 --> 00:20:52.579 finding a job. that you enjoy so it never feels 00:20:52.579 --> 00:20:54.420 like you're working another day in your life. 00:20:54.539 --> 00:20:57.140 So discovering your passion and how to discover 00:20:57.140 --> 00:21:01.200 your passion. He walks them through it. And I 00:21:01.200 --> 00:21:03.319 can't get enough of that. I mean, I actually 00:21:03.319 --> 00:21:06.119 dog -eared that so that I could go back and make 00:21:06.119 --> 00:21:07.799 sure that I cover that with my own teenager. 00:21:08.880 --> 00:21:13.099 And a business plan template. If they want to 00:21:13.099 --> 00:21:15.539 create their own business, whether babysitting 00:21:15.539 --> 00:21:19.039 or being that tech support in the neighborhood, 00:21:19.160 --> 00:21:24.099 how to build a business plan and how much money 00:21:24.099 --> 00:21:27.500 to ask for and what kind of contracts to create. 00:21:27.740 --> 00:21:30.500 So really good information there. Chapter four 00:21:30.500 --> 00:21:33.579 is all about the building blocks of banking. 00:21:34.380 --> 00:21:37.279 A lot of kids might think, oh, banking, you know, 00:21:37.319 --> 00:21:41.740 that's the easy part. But I would venture to 00:21:41.740 --> 00:21:44.980 say that's not true because so many kids, if 00:21:44.980 --> 00:21:47.579 they don't get the right kind of account, they're 00:21:47.579 --> 00:21:52.279 paying their whole month's worth of chore money 00:21:52.279 --> 00:21:56.720 or income on overdraft fees. And then they're 00:21:56.720 --> 00:22:00.980 stuck and then they feel defeated. And that's 00:22:00.980 --> 00:22:02.859 not what we want to happen. We want them to feel 00:22:02.859 --> 00:22:06.480 motivated. to continue doing more of what is 00:22:06.480 --> 00:22:09.019 going to work for them. Here's a quote by Sofia 00:22:09.019 --> 00:22:13.359 Amoruso. Money looks better in the bank than 00:22:13.359 --> 00:22:17.640 on your feet. I thought that was perfect for 00:22:17.640 --> 00:22:21.119 a teenager. So he goes over banking 101. You 00:22:21.119 --> 00:22:23.759 know, obviously the differences between a saving 00:22:23.759 --> 00:22:26.779 account, a checking account, and then choosing 00:22:26.779 --> 00:22:30.140 the right kind of account. Minimal fees, digital 00:22:30.140 --> 00:22:32.640 features, how it's going to match your lifestyle. 00:22:33.640 --> 00:22:36.140 Do you want to do exclusively online? Do you 00:22:36.140 --> 00:22:38.279 want one that's brick and mortar where you can 00:22:38.279 --> 00:22:41.420 walk in from time to time? Me, I'm an outgoing 00:22:41.420 --> 00:22:45.019 person. I miss that. I miss walking into a bank 00:22:45.019 --> 00:22:48.660 and having a chat. But that's just my generation. 00:22:48.839 --> 00:22:52.599 It may not be theirs. And then also what features 00:22:52.599 --> 00:22:56.380 to look for in an actual teen account. And parents, 00:22:56.440 --> 00:22:59.500 this is so helpful. And I didn't know about this 00:22:59.500 --> 00:23:03.730 until we... found in our own baking institution 00:23:03.730 --> 00:23:08.089 youth accounts. I never knew that that existed 00:23:08.089 --> 00:23:11.190 until we did a little research, but there are 00:23:11.190 --> 00:23:13.609 some other things too that you should consider 00:23:13.609 --> 00:23:18.150 and that's all here in the book. And there are 00:23:18.150 --> 00:23:21.009 even some recommended apps and things of that 00:23:21.009 --> 00:23:23.230 nature that you can look into and have a better 00:23:23.230 --> 00:23:26.130 conversation with your teenager. Chapter five 00:23:26.130 --> 00:23:31.529 is all about your budgeting blueprint. And he 00:23:31.529 --> 00:23:34.450 talks about budgeting basics, your first budget, 00:23:34.589 --> 00:23:37.829 how to create your budget. And he even goes into 00:23:37.829 --> 00:23:40.849 the weeds with calculating your income, identifying 00:23:40.849 --> 00:23:44.430 fixed and variable costs, setting up savings 00:23:44.430 --> 00:23:47.529 goals. And one of the things that I highlighted 00:23:47.529 --> 00:23:50.990 here that I thought was extremely helpful was 00:23:50.990 --> 00:23:54.589 tips to stick to a budget. Because this is where 00:23:54.589 --> 00:23:58.329 I lose adults, is we'll create a spend plan. 00:23:59.500 --> 00:24:04.119 and will create a financial action plan with 00:24:04.119 --> 00:24:08.400 goals and objectives. But that's all fine and 00:24:08.400 --> 00:24:11.000 good. They're excited about it. But then when 00:24:11.000 --> 00:24:13.819 there's a follow -up, no, I didn't even look 00:24:13.819 --> 00:24:18.880 at it again. So how you understand human behavior 00:24:18.880 --> 00:24:21.859 and actually get someone to stick to a budget, 00:24:22.079 --> 00:24:24.750 he's written that out for them. And first of 00:24:24.750 --> 00:24:27.369 all, that's making those goals realistic within 00:24:27.369 --> 00:24:31.190 that spend plan or that budget. And I talk about 00:24:31.190 --> 00:24:33.349 this till I'm red in the face. You know, hey, 00:24:33.470 --> 00:24:37.049 maybe we didn't make your budget realistic enough 00:24:37.049 --> 00:24:40.529 or comfortable enough or it's something that 00:24:40.529 --> 00:24:42.849 is unachievable or we got the numbers wrong. 00:24:42.930 --> 00:24:45.730 I put it on myself. I blame myself first, give 00:24:45.730 --> 00:24:49.289 them the ability to save face and then go back 00:24:49.289 --> 00:24:51.750 and say, okay, so what other things can we apply? 00:24:52.430 --> 00:24:55.210 And then he even gives a budget challenge and 00:24:55.210 --> 00:24:57.509 helping them understand, hey, what are you even 00:24:57.509 --> 00:25:01.450 envisioning? What are you saving for? And he 00:25:01.450 --> 00:25:04.710 also talks about subordinate budgets. So you 00:25:04.710 --> 00:25:07.369 can create a weekly budget from that monthly 00:25:07.369 --> 00:25:10.390 budget, especially when it comes to food. And 00:25:10.390 --> 00:25:12.950 then also he talks about the importance of rewarding 00:25:12.950 --> 00:25:17.450 yourself and giving yourself a little allowance 00:25:17.450 --> 00:25:21.670 for splurging is what he calls it. And here's 00:25:21.670 --> 00:25:23.470 another thing that I love about this chapter 00:25:23.470 --> 00:25:28.509 is he goes into a discussion, I mean a long discussion, 00:25:28.630 --> 00:25:36.190 about needs versus wants. That's another area 00:25:36.190 --> 00:25:39.890 where I also struggle, not just personally, but 00:25:39.890 --> 00:25:42.990 as I'm working with adults with spin planning. 00:25:43.309 --> 00:25:46.809 And what is a need versus a want? What are those 00:25:46.809 --> 00:25:52.269 opportunity costs? How can I create a strategy 00:25:52.269 --> 00:25:55.589 from there that will help me understand those 00:25:55.589 --> 00:25:59.269 needs and wants? He outlines that here in this 00:25:59.269 --> 00:26:03.410 book and in this chapter on budgeting. So he 00:26:03.410 --> 00:26:06.009 also provides the different budgeting strategies. 00:26:06.150 --> 00:26:10.549 A lot of you through my episodes know about the 00:26:10.549 --> 00:26:13.549 zero -based budget where you give every dollar 00:26:13.549 --> 00:26:17.500 a job. And so you neither have a deficit nor 00:26:17.500 --> 00:26:20.299 a surplus because you have accounted for every 00:26:20.299 --> 00:26:24.279 single dollar. But he also goes into old school 00:26:24.279 --> 00:26:28.160 envelope budgeting, which is a great throwback 00:26:28.160 --> 00:26:31.339 for these kids because a lot of them are only 00:26:31.339 --> 00:26:35.160 going to have cash. And so putting that cash 00:26:35.160 --> 00:26:38.420 in different envelopes and for them to be able 00:26:38.420 --> 00:26:42.420 to feel the money, to smell the money, to touch 00:26:42.420 --> 00:26:45.460 the money, hopefully not taste the money, but 00:26:45.460 --> 00:26:48.880 and even hear the rustle of the money, to have 00:26:48.880 --> 00:26:52.039 them sensorily engaged with that money, that 00:26:52.039 --> 00:26:56.059 can help them build a good healthy relationship 00:26:56.059 --> 00:27:01.539 with that cash. And it also helps build a foundation, 00:27:01.740 --> 00:27:05.799 do I do better with cash or do I do better with 00:27:05.799 --> 00:27:10.680 digital spending? And maybe they do better with 00:27:10.680 --> 00:27:13.660 cash. And I have some adults too. Like I can't 00:27:13.660 --> 00:27:17.059 continue to do digital spending because it's 00:27:17.059 --> 00:27:19.720 just not there with me. It doesn't seem real. 00:27:20.019 --> 00:27:24.400 So they would never go up and just... throw their 00:27:24.400 --> 00:27:27.500 phone on the cash register box and say, here, 00:27:27.559 --> 00:27:30.680 I'm done with the different spending apps that 00:27:30.680 --> 00:27:33.359 are out there. It's just dangerous for them. 00:27:33.440 --> 00:27:35.640 So he talks about those different methods. He 00:27:35.640 --> 00:27:39.900 also talks about the 50 -30 -20 method. Where 00:27:39.900 --> 00:27:41.859 you allocate, and I'm quoting out of his book, 00:27:41.960 --> 00:27:44.839 allocate 50 % of your income to essential expenses 00:27:44.839 --> 00:27:47.039 like housing, groceries, and transportation. 00:27:47.660 --> 00:27:50.920 Then 30 % can be used for discretionary spending, 00:27:51.000 --> 00:27:53.240 such as dining out, hobbies, or entertainment. 00:27:54.019 --> 00:27:57.859 Finally, dedicating 20 % to savings or paying 00:27:57.859 --> 00:28:01.000 off debts, if they have any. 20 % in savings. 00:28:01.019 --> 00:28:05.400 That is in line with the Talk About Money book 00:28:05.400 --> 00:28:09.480 that I reviewed earlier. So I like the 50 -30 00:28:09.480 --> 00:28:14.579 -20 idea for teens because it is very understandable 00:28:14.579 --> 00:28:17.819 because they have a smaller amount to work with. 00:28:18.160 --> 00:28:21.099 But going over all three of these strategies, 00:28:21.240 --> 00:28:23.380 they might find that a combination works best 00:28:23.380 --> 00:28:27.160 or one or the other. So wonderful topic of discussion 00:28:27.160 --> 00:28:30.900 to have with your teenager. And I think the last 00:28:30.900 --> 00:28:35.259 thing that I highlighted in this section is actually 00:28:35.259 --> 00:28:40.319 tracking. spending. A lot of folks forget to 00:28:40.319 --> 00:28:43.319 do that. And as I come to a close on this actual 00:28:43.319 --> 00:28:46.960 episode, and I'll continue the book review in 00:28:46.960 --> 00:28:51.160 the next one, adults don't even get this down. 00:28:51.339 --> 00:28:55.579 So what a gift to relay to teenagers. It's not 00:28:55.579 --> 00:29:01.960 just about a written method of visualizing where 00:29:01.960 --> 00:29:04.279 your money is coming from and where it's going. 00:29:04.960 --> 00:29:07.240 in a spend plan or a budget, whatever you'd like 00:29:07.240 --> 00:29:11.740 to call it, but also creating a tracking method 00:29:11.740 --> 00:29:15.680 to go with it. And that's where I lose a lot 00:29:15.680 --> 00:29:20.259 of folks. They spend all this time and effort 00:29:20.259 --> 00:29:23.200 into creating this budget or spend plan, but 00:29:23.200 --> 00:29:26.599 then they don't track their money. So my encouragement 00:29:26.599 --> 00:29:30.180 to the parents out there, read this book, digest 00:29:30.180 --> 00:29:34.730 this book, highlight the book. Have some points 00:29:34.730 --> 00:29:37.890 of interest that you can have conversations with 00:29:37.890 --> 00:29:40.930 your teenager. And again, if they reject the 00:29:40.930 --> 00:29:44.410 book or reject discussions, at least you have 00:29:44.410 --> 00:29:49.069 some bullet points tucked away to come back to 00:29:49.069 --> 00:29:51.509 time to time during those teachable moments. 00:29:51.710 --> 00:29:54.069 And you'll know when they are. A lot of parents 00:29:54.069 --> 00:29:56.789 ask, when are they? Where are those teachable 00:29:56.789 --> 00:30:00.029 moments? You usually know because you have those 00:30:00.029 --> 00:30:03.150 teachable moments with other topics. And if you 00:30:03.150 --> 00:30:05.930 don't have a good enough relationship with your 00:30:05.930 --> 00:30:09.890 children where you never find those teachable 00:30:09.890 --> 00:30:13.170 moments and maybe it's hard for you to have communication, 00:30:13.410 --> 00:30:18.410 it is not anything to be embarrassed about should 00:30:18.410 --> 00:30:22.250 you seek family counseling. This is an area that 00:30:22.250 --> 00:30:24.750 could possibly help you and your family find 00:30:24.750 --> 00:30:27.569 ways of communicating more effectively and opening 00:30:27.569 --> 00:30:30.930 the doors for these types of discussions. So 00:30:30.930 --> 00:30:33.250 I can't wait to give you the rest of this book 00:30:33.250 --> 00:30:36.809 review in the next episode. And if you have found 00:30:36.809 --> 00:30:41.630 this helpful, please be sure to review and rate 00:30:41.630 --> 00:30:44.769 this pod wherever you listen. Thank you so much.