WEBVTT 00:00:14.730 --> 00:00:18.989 to another sci -fi episode where finances and 00:00:18.989 --> 00:00:22.929 psychology collide. And today we're going to 00:00:22.929 --> 00:00:27.850 continue to examine how teenagers think, feel, 00:00:28.010 --> 00:00:32.350 and behave with money, or at least how we would 00:00:32.350 --> 00:00:37.049 want to encourage them to think, feel, and behave 00:00:37.049 --> 00:00:39.609 with money. I'm going to continue the book review, 00:00:39.789 --> 00:00:43.490 Personal Finance for Teens 101. The Ultimate 00:00:43.490 --> 00:00:47.250 Guide to Budget, Save, and Invest for Early Financial 00:00:47.250 --> 00:00:50.729 Independence. This is written by Freddie Grant. 00:00:51.390 --> 00:00:54.310 And this book for parents, if you did not know, 00:00:54.329 --> 00:00:56.390 if you didn't catch that in the first episode, 00:00:56.429 --> 00:00:58.990 which I highly recommend that you go listen to 00:00:58.990 --> 00:01:01.189 the first episode. There's a lot in there on 00:01:01.189 --> 00:01:03.829 the very first part of this book review. But 00:01:03.829 --> 00:01:08.209 this is also available on audio. as well so if 00:01:08.209 --> 00:01:10.849 you're not normally a book reader this is something 00:01:10.849 --> 00:01:13.670 you can listen to during your commute or while 00:01:13.670 --> 00:01:16.670 you're working out or doing other things piddling 00:01:16.670 --> 00:01:20.450 around the house but definitely something that 00:01:20.450 --> 00:01:24.909 should you decide to get this book for your child 00:01:25.799 --> 00:01:29.060 You want to read it so you can answer questions, 00:01:29.159 --> 00:01:31.840 have discussions. And just to reiterate what 00:01:31.840 --> 00:01:34.900 I said in the first episode, a cautionary note 00:01:34.900 --> 00:01:39.060 that this book is a good book, but it will not 00:01:39.060 --> 00:01:42.760 provide what your teen desperately needs. And 00:01:42.760 --> 00:01:46.099 that involves ongoing discussion. And it also 00:01:46.099 --> 00:01:51.299 involves your modeling. healthy financial practices 00:01:51.299 --> 00:01:54.299 as well. And if you struggle with that, if you 00:01:54.299 --> 00:01:57.799 are a team Redstone Arsenal member, you can call 00:01:57.799 --> 00:02:04.700 256 -876 -6299 to reach me for individual financial 00:02:04.700 --> 00:02:07.719 counseling. If you're not here at Redstone Arsenal 00:02:07.719 --> 00:02:10.620 and you just enjoy listening, you could also 00:02:10.620 --> 00:02:14.439 seek some education and coaching through your 00:02:14.439 --> 00:02:18.300 bank. And a lot of times that's free, but That 00:02:18.300 --> 00:02:21.680 comes with a cautionary note as well. Sometimes 00:02:21.680 --> 00:02:23.719 they'll want to sell you products that you may 00:02:23.719 --> 00:02:26.979 not need or may not understand. And all you have 00:02:26.979 --> 00:02:30.199 to say is, I'm just here for the education. And 00:02:30.199 --> 00:02:34.659 that's okay too. All right. So here we go. We're 00:02:34.659 --> 00:02:39.139 now in chapter six. He talks about the savings 00:02:39.139 --> 00:02:43.180 code. And he gives a wonderful quote by Warren 00:02:43.180 --> 00:02:48.490 Buffett. Do not save what is left. after spending, 00:02:48.629 --> 00:02:56.009 but spend what is left after saving. Oh, that 00:02:56.009 --> 00:02:59.150 is so good. And I've actually started incorporating 00:02:59.150 --> 00:03:01.270 some of the quotes that I found in this book 00:03:01.270 --> 00:03:03.710 and some of my educational classes. So thank 00:03:03.710 --> 00:03:05.610 you, Freddie Grant, for these wonderful quotes. 00:03:05.849 --> 00:03:09.810 In this chapter, he says, I quote, we delve into 00:03:09.810 --> 00:03:13.569 the essential skills and strategies for cultivating 00:03:13.569 --> 00:03:18.699 a robust savings habit, end quote. And that's 00:03:18.699 --> 00:03:21.599 what it's all about. If there's one thing that 00:03:21.599 --> 00:03:25.580 I like to provide to adults with financial education 00:03:25.580 --> 00:03:30.580 is getting into a habit of savings does take 00:03:30.580 --> 00:03:33.979 time and effort. It's not always about the amount 00:03:33.979 --> 00:03:37.319 itself. It's just about getting into the habit. 00:03:37.460 --> 00:03:41.060 So let's say for folks that may have a negative 00:03:41.060 --> 00:03:45.520 money mindset with a scarcity mindset, I don't 00:03:45.520 --> 00:03:48.419 have enough. I don't make enough. Only individuals 00:03:48.419 --> 00:03:51.840 who have a higher income has the luxury to save. 00:03:52.219 --> 00:03:54.819 First of all, that's incorrect. It's a faulty 00:03:54.819 --> 00:03:57.800 belief. And I'm not trying to make you feel bad 00:03:57.800 --> 00:04:00.360 if that's something that you have experienced 00:04:00.360 --> 00:04:03.300 because you might be angrily thinking, well, 00:04:03.300 --> 00:04:05.159 Olivia, you don't understand my circumstances. 00:04:05.360 --> 00:04:08.680 You don't understand what is going on. And you're 00:04:08.680 --> 00:04:11.379 right. I don't. But let me empathize and validate 00:04:11.379 --> 00:04:14.830 that it can be hard to find some. money to put 00:04:14.830 --> 00:04:17.149 away for savings. But what we're talking about 00:04:17.149 --> 00:04:22.649 here is even if you can just buy $5 or find $5 00:04:22.649 --> 00:04:26.790 to put away every month, just getting into a 00:04:26.790 --> 00:04:31.009 habit, what that does psychologically is if you've 00:04:31.009 --> 00:04:34.610 saved $5 a month for five months and you see, 00:04:34.649 --> 00:04:37.689 wow, I got $25 sitting in a savings account, 00:04:37.829 --> 00:04:44.000 that does something for you. And it's motivational. 00:04:44.000 --> 00:04:47.759 You start tapping that area of your brain where 00:04:47.759 --> 00:04:51.939 you want to do more of what is working. And that's 00:04:51.939 --> 00:04:54.699 all he's talking about here is getting that teenager 00:04:54.699 --> 00:04:58.939 into a habit of savings. And he shows them throughout 00:04:58.939 --> 00:05:03.740 this chapter how to do that. So setting a savings 00:05:03.740 --> 00:05:07.279 goal. He even talks about why you even start 00:05:07.279 --> 00:05:11.259 now. And it really is all about. getting into 00:05:11.259 --> 00:05:16.279 that habit. And then he breaks down how to save 00:05:16.279 --> 00:05:21.319 for something you really want. So maybe the first 00:05:21.319 --> 00:05:24.560 part of this chapter, if they kind of gloss over 00:05:24.560 --> 00:05:27.420 it and they're just like, okay, that is all good. 00:05:27.519 --> 00:05:29.699 But once they get here, I noticed for myself, 00:05:30.000 --> 00:05:32.879 it's like, oh yeah, I started listening for myself. 00:05:33.000 --> 00:05:35.399 Okay, yeah, I want to listen to this too. And 00:05:35.399 --> 00:05:37.079 maybe there's something I'll get out of this. 00:05:37.160 --> 00:05:41.180 And I did, even for myself as an adult. So he 00:05:41.180 --> 00:05:45.100 breaks it down. He states, know how much you 00:05:45.100 --> 00:05:49.160 need to save. And here's what adults typically 00:05:49.160 --> 00:05:51.199 do, and here's what we need to teach our teens 00:05:51.199 --> 00:05:56.939 to not do, is we'll just have in our mind's eye 00:05:56.939 --> 00:06:00.800 just a free -floating amount that is not tied 00:06:00.800 --> 00:06:05.620 or tethered to anything. We think that we're 00:06:05.620 --> 00:06:07.579 saving towards something and then we give up. 00:06:07.720 --> 00:06:10.339 And part of the problem is that we never even 00:06:10.339 --> 00:06:14.680 identified the amount that we really need. So 00:06:14.680 --> 00:06:17.300 there's a start. What is the true amount? And 00:06:17.300 --> 00:06:20.000 a lot of folks might get stuck. Well, I'm confused 00:06:20.000 --> 00:06:22.860 with saving and investing. I'm confused with 00:06:22.860 --> 00:06:25.839 nest egg versus what I need to save for short 00:06:25.839 --> 00:06:29.160 term. So get nest egg out of your mind. Get long 00:06:29.160 --> 00:06:31.819 term savings out of your mind. This is a short 00:06:31.819 --> 00:06:37.160 term savings. goal. So asking yourself, how much 00:06:37.160 --> 00:06:41.740 do I need to save? And then he goes further to 00:06:41.740 --> 00:06:46.980 say, know what to set aside. So here's his quote. 00:06:47.160 --> 00:06:49.360 Once you have your target number, break it down 00:06:49.360 --> 00:06:53.060 into smaller manageable saving increments. For 00:06:53.060 --> 00:06:55.740 example, and everyone's going to know this one. 00:06:55.839 --> 00:06:57.699 That's not part of his quote, but parents listen 00:06:57.699 --> 00:07:02.170 up. If you need 300 for a new phone, and have 00:07:02.170 --> 00:07:04.829 six months to save, you'll need to set aside 00:07:04.829 --> 00:07:10.509 $50 each month. End quote. That right there, 00:07:10.529 --> 00:07:15.149 that simple sentence structure just breaks down 00:07:15.149 --> 00:07:20.829 for them a more manageable goal. And so many 00:07:20.829 --> 00:07:24.670 kids aren't getting this information. Now, some 00:07:24.670 --> 00:07:28.110 high schools do provide some level of financial 00:07:28.110 --> 00:07:30.670 education, but a lot of them are offered only 00:07:30.670 --> 00:07:34.389 as electives. So a lot of kids are not getting 00:07:34.389 --> 00:07:37.870 this information. Then he goes on to say, incorporate 00:07:37.870 --> 00:07:40.509 this savings amount into your monthly budget. 00:07:40.689 --> 00:07:45.110 Treat it like a fixed expense, similar to how 00:07:45.110 --> 00:07:49.209 you would handle a bill or a subscription. end 00:07:49.209 --> 00:07:51.769 quote I love this so he's like don't treat a 00:07:51.769 --> 00:07:55.149 savings goal every month like a variable expense 00:07:55.149 --> 00:07:57.649 like oh if I don't get to it it's fine I didn't 00:07:57.649 --> 00:08:01.050 have to have it no treat it like a fixed expense 00:08:01.050 --> 00:08:03.389 so you see where I'm going with this this is 00:08:03.389 --> 00:08:06.629 good stuff even for adults say and here's another 00:08:06.629 --> 00:08:10.029 one save without thinking about it and he talks 00:08:10.029 --> 00:08:13.449 about setting up automatic transfers and then 00:08:13.449 --> 00:08:17.699 the one I love the most making the necessary 00:08:17.699 --> 00:08:23.480 sacrifices. We can't build up something in our 00:08:23.480 --> 00:08:26.040 children's minds that it's going to be easy to 00:08:26.040 --> 00:08:30.740 save. We can't build up a notion that you'll 00:08:30.740 --> 00:08:33.080 be able to save your money without any sacrifices 00:08:33.080 --> 00:08:36.080 whatsoever. Go ahead and talk about the things 00:08:36.080 --> 00:08:40.299 that would... lure them away from saving or the 00:08:40.299 --> 00:08:42.919 dangers once they have savings set up what would 00:08:42.919 --> 00:08:47.679 what would be a danger in them veering off of 00:08:47.679 --> 00:08:51.120 their savings goal so it might be a vacation 00:08:51.120 --> 00:08:54.519 where a friend invites them to go on vacation 00:08:54.519 --> 00:08:58.539 they need so much money they can say no to that 00:08:58.539 --> 00:09:01.340 vacation to continue with their savings goal 00:09:01.340 --> 00:09:05.600 that might be a sacrifice they need to make So 00:09:05.600 --> 00:09:08.179 that they could reach that savings goal. And 00:09:08.179 --> 00:09:12.519 what our culture, because remember, our culture 00:09:12.519 --> 00:09:17.200 and societal influences heavily influence our 00:09:17.200 --> 00:09:22.120 money mindsets. Even your teenagers. What our 00:09:22.120 --> 00:09:26.340 culture is telling our kids, oh, if you don't 00:09:26.340 --> 00:09:28.679 have the money, just put it on credit. You don't 00:09:28.679 --> 00:09:32.059 have to sacrifice anything. And is that what 00:09:32.059 --> 00:09:34.740 parents are modeling, possibly? to their kids 00:09:34.740 --> 00:09:38.600 as well, that's not healthy financial management. 00:09:39.240 --> 00:09:42.259 That's learning how to spend credit, not learning 00:09:42.259 --> 00:09:45.320 how to spend cash. We want to help our children, 00:09:45.399 --> 00:09:47.580 and this is what Freddie Grant reveals in this 00:09:47.580 --> 00:09:49.200 book, we want to help these kids learn how to 00:09:49.200 --> 00:09:52.720 spend cash, not credit. Now, granted, he goes 00:09:52.720 --> 00:09:55.779 into understanding credit, and if you will be 00:09:55.779 --> 00:10:01.320 using credit, how to use credit wisely, but saving... 00:10:01.980 --> 00:10:05.759 And good financial practices and learning how 00:10:05.759 --> 00:10:11.100 to spend cash does come with some level of sacrifice. 00:10:11.580 --> 00:10:15.600 I like how he gives it to them. In reality, it's 00:10:15.600 --> 00:10:19.419 not sugar -coated. And our kids need to hear 00:10:19.419 --> 00:10:23.399 this from folks other than parents. Okay, next 00:10:23.399 --> 00:10:27.720 chapter, chapter 7, savvy spending. Here's a 00:10:27.720 --> 00:10:31.659 Swedish proverb that he quotes. He who buys what 00:10:31.659 --> 00:10:38.120 he does not need steals from himself. So good. 00:10:38.179 --> 00:10:39.980 I'll let you soak that in. Let me say it one 00:10:39.980 --> 00:10:43.480 more time. He who buys what he does not need 00:10:43.480 --> 00:10:49.519 steals from himself. So wise. I really like that 00:10:49.519 --> 00:10:53.580 quote. Gets to the heart of this chapter. So 00:10:53.580 --> 00:10:56.820 again, how are you going to be a savvy consumer 00:10:56.820 --> 00:11:00.460 and how are you going to be a savvy? spender 00:11:00.460 --> 00:11:02.639 and here's where he really gets into the weeds 00:11:02.639 --> 00:11:08.379 with tracking weekly expenses and he really underscores 00:11:08.379 --> 00:11:13.200 the importance of tracking everything number 00:11:13.200 --> 00:11:17.779 one identify unnecessary expenses set a goal 00:11:18.519 --> 00:11:21.679 Track your progress and reflect at the end of 00:11:21.679 --> 00:11:23.980 the week. Not only are you tracking, but he's 00:11:23.980 --> 00:11:26.820 encouraging reflecting. And that's such a great 00:11:26.820 --> 00:11:29.919 practice and a habit to get into. And I think 00:11:29.919 --> 00:11:33.259 adults could use that information as well. Chapter 00:11:33.259 --> 00:11:38.259 eight, build your future fortune through investing. 00:11:39.059 --> 00:11:42.559 And he breaks down this chapter in investing, 00:11:42.700 --> 00:11:46.399 again, validating for teenagers that there are 00:11:46.399 --> 00:11:50.080 teens. that are investing. There are teenagers 00:11:50.080 --> 00:11:54.259 who do have a leg up and understand markets, 00:11:54.419 --> 00:11:59.200 understand stocks, understand different investment 00:11:59.200 --> 00:12:03.179 principles. And so why not go ahead and learn 00:12:03.179 --> 00:12:07.529 yourself? And he goes into understanding the 00:12:07.529 --> 00:12:10.629 benefits of compound interest, and he provides 00:12:10.629 --> 00:12:15.370 an example for folks. And the examples that he 00:12:15.370 --> 00:12:18.629 provides, I mean, these are other teenagers that 00:12:18.629 --> 00:12:22.389 he's providing examples on and really the difference 00:12:22.389 --> 00:12:25.090 that it can make. I want to read through this 00:12:25.090 --> 00:12:27.529 long paragraph because I think this is beneficial 00:12:27.529 --> 00:12:30.990 for the parents to hear as well. Because this 00:12:30.990 --> 00:12:34.340 is actually found on page 80. you look at the 00:12:34.340 --> 00:12:36.779 book, if you wanted to follow along and go over 00:12:36.779 --> 00:12:39.580 this with your teenager, this is a powerful example. 00:12:40.039 --> 00:12:43.480 I quote, suppose you had $1 ,000 and put that 00:12:43.480 --> 00:12:45.519 in a savings account where it wasn't gaining 00:12:45.519 --> 00:12:48.940 any interest. You then continued to save an additional 00:12:48.940 --> 00:12:52.259 $100 every month in that account. At the end 00:12:52.259 --> 00:12:55.700 of 10 years, you'd have $13 ,000 in the account. 00:12:56.200 --> 00:13:01.759 Not bad, but If instead you invest that $1 ,000 00:13:01.759 --> 00:13:07.019 in stocks at an average annual rate of 8%, which 00:13:07.019 --> 00:13:10.460 he states is a reasonable average return, and 00:13:10.460 --> 00:13:13.960 contribute an additional $100 every month by 00:13:13.960 --> 00:13:17.279 the end of 10 years, you'd have a total of $20 00:13:17.279 --> 00:13:23.730 ,514. That's a big... And thanks to compound 00:13:23.730 --> 00:13:26.370 interest, the longer you keep the money invested 00:13:26.370 --> 00:13:28.889 at that rate, it will continue to grow exponentially. 00:13:29.269 --> 00:13:34.769 At the end of 20 years, it would be $63 ,829. 00:13:35.350 --> 00:13:41.409 At the end of 30 years, it would be $159 ,972. 00:13:41.909 --> 00:13:44.570 That's pretty good for starting out with just 00:13:44.570 --> 00:13:51.789 $1 ,000. End quote. So he breaks it down. So 00:13:51.789 --> 00:13:56.169 teenagers can put enough away. Let's say they 00:13:56.169 --> 00:13:58.049 don't get to $1 ,000, but let's say they get 00:13:58.049 --> 00:14:02.149 to $500. That's doable. I've seen it. I mean, 00:14:02.169 --> 00:14:05.470 even when I was living in poverty, I could have 00:14:05.470 --> 00:14:09.990 come up with $500. I had a job. And if someone 00:14:09.990 --> 00:14:13.509 had told me... at a very young age, that that's 00:14:13.509 --> 00:14:15.350 how you do it. And now granted, I did meet my 00:14:15.350 --> 00:14:18.330 husband when I was 18 and we didn't get married 00:14:18.330 --> 00:14:20.330 for three and a half years later, but he started 00:14:20.330 --> 00:14:22.450 teaching me these money principles and I started 00:14:22.450 --> 00:14:25.549 learning. But had I learned earlier, I would 00:14:25.549 --> 00:14:27.549 have done different things with my money as well. 00:14:28.169 --> 00:14:31.710 So he talks about how early investment is not 00:14:31.710 --> 00:14:34.149 just about the money, but how it also instills 00:14:34.149 --> 00:14:38.110 financial discipline. And that is a key skill. 00:14:39.240 --> 00:14:42.980 And wouldn't it be nice if you were doing like 00:14:42.980 --> 00:14:45.899 a little book club with your teenager and you 00:14:45.899 --> 00:14:48.580 were having these discussions and you both were 00:14:48.580 --> 00:14:51.320 each other's accountability partners? That could 00:14:51.320 --> 00:14:55.320 be some awesome QT or quality time. He goes into 00:14:55.320 --> 00:14:58.820 talking about with investing how patience is 00:14:58.820 --> 00:15:01.360 a virtue, talks about sticking to long -term 00:15:01.360 --> 00:15:04.259 commitments, being consistent, investing with 00:15:04.259 --> 00:15:07.679 the mind and not the heart, balancing their portfolio, 00:15:07.980 --> 00:15:12.000 and maintaining diversification, and even understanding 00:15:12.000 --> 00:15:15.379 their investment philosophy and their risk tolerance. 00:15:15.480 --> 00:15:18.200 He talks about it all. These are all the things 00:15:18.200 --> 00:15:21.600 that I talk to adults about, but again, in this 00:15:21.600 --> 00:15:24.799 book, it's written at their reading. level and 00:15:24.799 --> 00:15:29.279 it's really good to digest as well so again parents 00:15:29.279 --> 00:15:31.720 if you're one of those that you're listening 00:15:31.720 --> 00:15:33.519 you're like man this actually does sound like 00:15:33.519 --> 00:15:37.440 a good personal finance book don't be too ashamed 00:15:37.440 --> 00:15:40.299 to buy one for yourself and and use this for 00:15:40.299 --> 00:15:43.980 your own financial education as well so chapter 00:15:43.980 --> 00:15:47.960 nine he talks about getting credit wise he provides 00:15:47.960 --> 00:15:51.820 a quote by tyler gregory if you don't take good 00:15:51.820 --> 00:15:54.620 care of your credit then your credit won't take 00:15:54.620 --> 00:15:58.379 good care of you. End quote. Ugh, I love that 00:15:58.379 --> 00:16:02.500 quote because that is what I see day in and day 00:16:02.500 --> 00:16:07.980 out. So many folks who have great incomes but 00:16:07.980 --> 00:16:11.820 horrible credit scores. They just did not manage 00:16:11.820 --> 00:16:14.789 their debt. Well, but it doesn't mean the end 00:16:14.789 --> 00:16:16.570 of the road. And again, that's not an insult. 00:16:16.730 --> 00:16:18.809 It's just, hey, this is reality, but there's 00:16:18.809 --> 00:16:21.110 always something that you can do about it. But 00:16:21.110 --> 00:16:24.549 before these kids even get to that place, they're 00:16:24.549 --> 00:16:27.110 given early intervention. They're given early 00:16:27.110 --> 00:16:30.889 education by Freddie Grant. Here's a quote from 00:16:30.889 --> 00:16:34.129 his book. The truth is that credit can be a powerful 00:16:34.129 --> 00:16:37.269 tool if used wisely. It can help you achieve 00:16:37.269 --> 00:16:40.990 major financial goals, like buying a car or financing 00:16:40.990 --> 00:16:44.889 your education. However, mismanagement of credit 00:16:44.889 --> 00:16:47.190 can lead to debt that hampers your financial 00:16:47.190 --> 00:16:51.309 well -being, end quote. And that's the message 00:16:51.309 --> 00:16:55.129 that I try to get across to so many folks. This 00:16:55.129 --> 00:16:57.370 isn't something that has to continue. But again, 00:16:57.549 --> 00:17:00.169 he's saying that credit, it's not that credit 00:17:00.169 --> 00:17:03.169 is bad. It's what you do with it. It's how you 00:17:03.169 --> 00:17:07.049 respect it and use it wisely. Parents, this is 00:17:07.049 --> 00:17:10.750 amazing. He will spell out for you how to help 00:17:10.750 --> 00:17:14.849 your child Build. Credit, that's probably the 00:17:14.849 --> 00:17:18.329 number one question that I get from parents who 00:17:18.329 --> 00:17:21.250 are finally working with their teens on money. 00:17:21.390 --> 00:17:25.069 And I would venture to say that a lot of times 00:17:25.069 --> 00:17:28.690 helping them with their tax return or talking 00:17:28.690 --> 00:17:31.509 about building credit is usually the first time 00:17:31.509 --> 00:17:33.930 that they're talking about financial planning 00:17:33.930 --> 00:17:36.549 with their kids. And I'm not saying that's bad. 00:17:36.650 --> 00:17:38.269 I think if you're helping them with those things, 00:17:38.309 --> 00:17:40.950 that's wonderful and that's a great start. But 00:17:40.950 --> 00:17:44.009 there's so much more. than just building credit 00:17:44.009 --> 00:17:46.849 and tax planning. And again, it's all covered 00:17:46.849 --> 00:17:50.170 here. He talks about authorized users on a parent's 00:17:50.170 --> 00:17:54.390 account, trust, and all those things that teens 00:17:54.390 --> 00:17:57.009 can do to build that trust with their parents. 00:17:57.150 --> 00:17:59.650 You can co -sign for a credit card. There are 00:17:59.650 --> 00:18:01.529 some other options that are listed here as well 00:18:01.529 --> 00:18:04.869 with the different types of cards. So there are 00:18:04.869 --> 00:18:07.130 so many ways that you can look at this. And as 00:18:07.130 --> 00:18:09.670 I even think of my own teenager, we're going 00:18:09.670 --> 00:18:12.450 to start her off with a gas card based on our 00:18:12.450 --> 00:18:14.589 own agreements with her and how she's helping 00:18:14.589 --> 00:18:19.299 us with her. Sister, we are paying for all of 00:18:19.299 --> 00:18:21.539 her gas because it helps us out and it costs 00:18:21.539 --> 00:18:23.500 us less money for her to do these things for 00:18:23.500 --> 00:18:26.480 her. So we're paying for all of her gas, so we'll 00:18:26.480 --> 00:18:29.240 get her a gas card, but we will put the money 00:18:29.240 --> 00:18:32.279 in her account for her to pay it off monthly. 00:18:32.500 --> 00:18:35.660 So that will help her build her credit. And if 00:18:35.660 --> 00:18:37.980 for some reason we can't find a gas card, we're 00:18:37.980 --> 00:18:39.440 actually going to be looking at that soon. If 00:18:39.440 --> 00:18:41.279 we can't find those anymore, then we'll be going 00:18:41.279 --> 00:18:45.529 with the authorized user. But know, parents, 00:18:45.650 --> 00:18:48.650 if you go with the authorized user credit card, 00:18:48.769 --> 00:18:52.789 you are responsible for that debt. So if you 00:18:52.789 --> 00:18:56.970 have a security clearance, make sure you trust. 00:18:57.579 --> 00:19:01.400 your child, have lots of discussions, no cash 00:19:01.400 --> 00:19:04.460 advances, nothing like that, talk about those 00:19:04.460 --> 00:19:07.579 things, those cautions, have a contract with 00:19:07.579 --> 00:19:10.539 them, what will happen if they misuse, and also 00:19:10.539 --> 00:19:13.720 keep a look on that credit, maybe even daily, 00:19:13.799 --> 00:19:15.859 to make sure that it's being used in the manner 00:19:15.859 --> 00:19:18.259 it's supposed to be used. And then showing them 00:19:18.259 --> 00:19:20.579 even how to monitor their credit report. There 00:19:20.579 --> 00:19:22.279 are so many adults that don't even know how to 00:19:22.279 --> 00:19:25.880 do that. And then it goes into debt management. 00:19:26.000 --> 00:19:28.039 What is the difference between secured debt, 00:19:28.200 --> 00:19:30.359 unsecured debt? What's the difference between 00:19:30.359 --> 00:19:34.079 bad debt versus good debt? And he talks about 00:19:34.079 --> 00:19:37.480 only using debt for needs and not wants. What 00:19:37.480 --> 00:19:41.799 a great quotable quote. Only use debt for needs. 00:19:42.359 --> 00:19:45.299 and not once. So when you are, if you do take 00:19:45.299 --> 00:19:48.920 out an educational loan, getting that loan in 00:19:48.920 --> 00:19:51.279 such a way where it's actually meeting needs 00:19:51.279 --> 00:19:53.220 and not wants, where it's actually paying for 00:19:53.220 --> 00:19:55.279 tuition, where it's paying for books and lab 00:19:55.279 --> 00:19:58.960 fees, but not for a lavish lifestyle, not for 00:19:58.960 --> 00:20:03.920 you to live off campus and rack up. $2 ,000 rent 00:20:03.920 --> 00:20:06.680 monthly payments and things of that nature. Now, 00:20:06.720 --> 00:20:09.160 I do understand some folks have different needs. 00:20:09.380 --> 00:20:11.480 Maybe there are special needs that are involved. 00:20:11.680 --> 00:20:16.319 But again, if you use that rubric, only use debt 00:20:16.319 --> 00:20:20.880 for needs, not once, you can't go wrong. Okay, 00:20:20.960 --> 00:20:23.680 and then he also gives the best advice that I 00:20:23.680 --> 00:20:27.039 think is in this book. If you can't afford it, 00:20:27.180 --> 00:20:33.089 don't use a credit card to buy it. I think that 00:20:33.089 --> 00:20:35.670 should be on marquees everywhere, just reminding 00:20:35.670 --> 00:20:41.069 folks daily. And have an emergency fund to fall 00:20:41.069 --> 00:20:44.190 back on. And he even asked, and he has several 00:20:44.190 --> 00:20:46.970 questions for parents and teens to go over, are 00:20:46.970 --> 00:20:51.200 you even ready for a credit card? And then chapter 00:20:51.200 --> 00:20:55.299 10, planning for the long game, major purchases. 00:20:55.579 --> 00:20:59.440 So buying your first car, planning for college, 00:20:59.480 --> 00:21:03.539 how to look for scholarship money and other resources. 00:21:03.900 --> 00:21:06.799 And if you're paying for your own college, how 00:21:06.799 --> 00:21:10.319 to do that. Moving out of the house. He talks 00:21:10.319 --> 00:21:12.359 about those things because we know we have teenagers 00:21:12.359 --> 00:21:15.440 that that's their goal. I want to move out and 00:21:15.440 --> 00:21:18.440 I want to be able to live on my own. And finally. 00:21:19.240 --> 00:21:24.119 He talks about vision boarding. And one of the 00:21:24.119 --> 00:21:28.900 reasons I love this book is because, one, he 00:21:28.900 --> 00:21:33.539 talks about the financial mindset, which is a 00:21:33.539 --> 00:21:36.359 therapist's dream. But he also talks about vision 00:21:36.359 --> 00:21:39.940 boarding, which follows the solution -focused 00:21:39.940 --> 00:21:45.799 therapy method, where visualizing what you actually 00:21:45.799 --> 00:21:50.559 want. Not visualizing what you don't want, but 00:21:50.559 --> 00:21:52.920 what vision boarding does is it helps you visualize 00:21:52.920 --> 00:21:57.079 what you actually want in life. And he talks 00:21:57.079 --> 00:21:59.259 about all the materials that you need, how to 00:21:59.259 --> 00:22:03.940 put it together. And what a gift if your child 00:22:03.940 --> 00:22:07.539 does this and then talks about it with you, what 00:22:07.539 --> 00:22:11.880 their goals in life are. You gain access to a 00:22:11.880 --> 00:22:15.339 part of your child's brain that was otherwise 00:22:15.339 --> 00:22:20.160 inaccessible. helping draw out for themselves 00:22:20.160 --> 00:22:24.900 something that was inaccessible before this activity. 00:22:25.279 --> 00:22:28.079 A lot of folks will just mentally account for 00:22:28.079 --> 00:22:30.460 what they want to do or talk about what they 00:22:30.460 --> 00:22:33.799 want to do, but to actually put it down on paper. 00:22:34.539 --> 00:22:37.000 And then to be able to explain it to somebody, 00:22:37.259 --> 00:22:41.779 it solidifies that vision for their lives. It's 00:22:41.779 --> 00:22:46.160 extremely psychologically grounding and powerful 00:22:46.160 --> 00:22:49.420 and helps with goal setting. So I hope you enjoyed 00:22:49.420 --> 00:22:52.319 this book review for Personal Finance for Teens 00:22:52.319 --> 00:22:54.759 101, The Ultimate Guide to Budget, Save, and 00:22:54.759 --> 00:22:57.039 Invest for Early Financial Independence, written 00:22:57.039 --> 00:22:59.930 by Freddie Grant. And use it wisely. Have some 00:22:59.930 --> 00:23:02.309 discussions. And if you found this helpful, please 00:23:02.309 --> 00:23:04.849 remember to rate and review the pod wherever 00:23:04.849 --> 00:23:06.650 you listen. Thanks for listening.