Lesson 4

Teach your kid to save

As a parent, instructing your kids on how to save is one of the most crucial skills you can teach your children. As a financial advisor, I’ve had a front-row seat with my adult clients to see what habits are vital in order to achieve financial success. Most people mistakenly think that choosing the right investments is what creates financial security. But if you don’t have enough capital available to invest, some incredibly great rate of return—which likely will not hold up in the long term—is not a realistic way to solve the problem of one’s lack of savings. Your ability to save regularly over time allows you to achieve financial security.

1) READ THE CHAPTER

For information and a deeper dive into having money talks with your kids. Read the chapter with relevant financial literature to give you a sufficient foundation on the topic. Order your copy of the book below.

2) LISTEN TO THE PODCAST

Listen to this lesson’s episode where I’ll walk you through the questions to ask your kids during the conversation as well as the likely responses you’ll hear from them.

3) SEND THE TIKTOK

Send this video to your child, so you can set the stage for the topic you’ll be discussing, in a language they understand.

@totalcents Fun things cost money sometimes — start saving. #protectyourwealth #moneytalks #financialliteracy #finance #moneytok #learnitontiktok #personalfinance #savingmoney #saveyourmoney ♬ Aesthetic – Gaspar
4) HAVE THE MONEY CONVERSATION

Using your printed one-page conversation guide and enjoy the dialogue with your family to get them financially launched. Now’s the time to discuss and start the conversation.

Additional Lesson Resources

Books
  • The Richest Man in Babylon (Clason)
    “5 Laws: The First Law of Gold. Arkad’s advice here is very similar to the First Cure, which is that saving is the start towards building wealth. The Second Law of Gold. Arkad’s advice here is very similar to the Third Cure, which is that these savings can themselves grow and compound your wealth. The Third Law of Gold. Arkad’s advice here is similar to the Fourth Cure, which is about being patient and having a long-term view. The Fourth Law of Gold. Arkad’s advice here is about investing in what you know about and understand. The Fifth Law of Gold. Arkad’s advice here is about avoiding get-rich-quick or very aggressive wealth creation strategies. All the young people (14-25) in that neighborhood. It’s an easy read and gives seven basic principles on saving and investing money.”
  • A TEEN GUIDE TO SAFE-HAVEN SAVINGS (GAGNE)
    Saving money is one of the best things that young people can do to prepare for the future. But choosing safe investments can be overwhelming for new savers. Should you deposit your money in a statement savings account or purchase a certificate of deposit? What about money market accounts? Are savings bonds safe investments? How do annuities work? This book will answer all of these questions and more. Use it as a guide to make sure your hard-earned money remains safe—and keeps earning interest.
  • The Will Power Instinct: How Self-Control Works, why it Matters (McGonigal)
Financial Literature (FinLit)
Other

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