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S3E5 How to Start Babysitting as a Teen:
Make Money and Build Responsibility.
Cash Kid: [00:00:00] Welcome to the Cash Kid Podcast, where we highlight young entrepreneurs who are finding creative ways to earn, save, and invest money early in life. Today we are featuring another awesome teen who's balancing it all, school, babysitting, and even carpool pickups to make some extra money on the side. If you aren't already, be sure to follow us on Instagram, Facebook, and YouTube @ Cash Kid Podcast.
Cash Kid: And sign up for a mailing list if you haven't already. Now, this student is proving that you can take on responsibility, help out your community, and learn valuable life skills while still being a student. Whether she's babysitting kids after school, or helping out with carpool runs, she's finding smart ways to bring in cash, while managing her busy schedule.
Cash Kid: In this episode, we'll dive into her story, how she got started, and what it takes to balance work and school life. So let's jump in and meet today's Cash Kid. Kennedy Teal, welcome to the show. And first off, Kennedy, tell us a little bit about yourself. Hey
Kennedy Teal: Cash Kid, it is so great to be on. [00:01:00] Thanks so much for asking me.
Kennedy Teal: Um, so yeah, I'm Kennedy. I'm a junior college student at Sanford University and I come from Johnson City, Tennessee, which I've loved, but I also love Birmingham. It's been an awesome home and yeah, I'm studying interior design and I love babysitting since the very beginning of like my preteen years. So thanks so much for asking all these questions.
Cash Kid: Yeah. So, um, what really inspired you to start babysitting and offering, like, carpool pickups? Was it something like you've always wanted to do, or did the opportunity just, like, come up unexpectedly?
Kennedy Teal: So, a little bit about myself some more is that I'm an oldest of six kids. So, I've kind of just always been around kids. I've been used to, like, kids. I've been babysitting since I was probably nine for my siblings, so I've just kind of been in that role forever, and I've also loved it, and it's come a little bit naturally to me. So, I think probably when I was around 14 years old, I started just babysitting for my community, and for my church, and for small groups, and [00:02:00] stuff like that.
Kennedy Teal: So, like, little jobs. Like, small groups that I didn't have to drive towards, but I was still, like, hanging out with kids and stuff like that. Um, so yeah, it was something that I've always kind of been infused with since I was younger. Um, but yeah, I loved it.
Cash Kid: That's amazing and how, like, you kind of, like, was something that you went to and then you turned what skills you have into a way to make money. That's kind of like all that we're talking about on the Cash Kid Podcast. So how do you balance school babysitting and carpool duties? Like what is a typical day or week look like for you?
Kennedy Teal: Yeah, good question because it can be a lot. But gladly, my work, my school schedule works very well with me. Um, so my typical week kind of looks like my Monday, Wednesday, Friday.
Kennedy Teal: I have class from like 8 to 3:30. So most of those days I am in class all day. Um, occasionally I will do some pickups after those 3:30 classes. So, if like someone needs to go to tennis or horseback riding or something like that. I do pick up a few of those shifts in the later [00:03:00] afternoon.
Kennedy Teal: Um, but Tuesdays and Thursdays are my main days that I just go from like probably 8 until 6 or sometimes even 9. Um, so yeah, I've roped off those days so that I can just fully like, Um, not all of those hours are used every week because my weeks kind of look different each week. Um, so sometimes Thursday mornings, I won't babysit, so I'll be able to like go to a coffee shop and do some homework.
Kennedy Teal: Um, or like in the evenings, I'm not used as late, so then I can get some homework in as well. So, it's a balance for sure, but just trying to figure out what works well for me. And since I have been doing this for a while, I kind of know my limits and my balance and what works for me. So, yeah.
Cash Kid: Yeah, I totally agree with that. It's just like time management, it’s such a big and important factor whenever you're starting a business or a side hustle. So, what has been the most challenging part of juggling all your responsibilities? How do you handle it when things get overwhelming?
Kennedy Teal: Yeah, that's a great question because I don't even know if I do handle it very [00:04:00] well.
Kennedy Teal: Um, but I think since I'm just used to this, like it's something that just is so second hand. So, it's so natural, um, that I don't even kind of blink twice about it. Like I've been balancing this. Since high school, so high school, I had a block schedule as well. So, I went from eight to three and then I would go babysit in the afternoons.
Kennedy Teal: So it's something that's kind of just routine and I have gotten used to it and I've learned kind of my balance of like what, how much schoolwork I need to commit to the project or what I need to do for this or that. Um, so it definitely is challenging, but I think just kind of knowing myself and my limitations.
Kennedy Teal: Um, but I also would say babysitting is an awesome job because it is so flexible and it doesn't ever feel like work to me. So, like that is such a big blessing that like I get to go to work after a long day of classes, but it doesn't feel like it. Like I get to go hang out with kids or I get to go drive them to their sports or whatsoever. So it feels like it's very manageable and I can balance it because it's not a crazy strenuous job, you know what I mean?
Cash Kid: [00:05:00] So what skills do you think you've gained from babysitting and doing carpool pickups? Have you learned like anything that will help you later in life?
Kennedy Teal: Absolutely. I've learned multitasking. I've learned responsibility. I've learned patience. I've learned Leadership, I've learned how to address adults and have those conversations. I've learned how to you know, like figure out kids and how to address them if they're like having a meltdown in a park, you know. Just some things like that, um, that are great social skills for me.
Kennedy Teal: Um, so yeah, I think I've been able to like have those experiences that help me very well and I think that those are all going to just grow me as a person as an adult as a mom as Um, a business woman, like if that's something that's in my future. Um, so I think all of those are very beneficial attributes.
Cash Kid: Yeah, I totally agree with that. The more skills you can make as a kid, the easier your life will be. So, what do you do with the money [00:06:00] you earn? Are you saving it, spending it on something special, or maybe even investing it?
Kennedy Teal: Yeah, great question. For me, my weeks do look a little bit different with babysitting. My hours do vary, um, which is something that I don't mind at all. I kind of do like the flexibility. I like that that each week is different, that I don't have a schedule. start and end time that it's kind of changing, um, it makes each week kind of seem different and interesting. So, with that being said, my money and my income does fluctuate each week.
Kennedy Teal: So, it's taught me how to be very responsible and very planned with how I spend my money. So, it is something that I do have to look at kind of at the end of the month and kind of see what I'm like making on an average and how I can spend that wisely, how much I need to save, how much I need to give. And then what do I have left to spend on coffee and some new earrings, you know?
Kennedy Teal: So, there's definitely a balance. Um, but it has taught me a lot of responsibility and being [00:07:00] very, um, cautious with how I spend my money because it's not a set income.
Cash Kid: Yeah, um, so babysitting and carpooling requires a lot of trust from parents. How did you build that trust with families, and what advice would you give to other teens who want to start similar jobs?
Kennedy Teal: Yeah, absolutely. I think what helped me in the very, very beginning was I started taking on jobs that were around the parents. So, like, babysitting at a small group. So, like, they would drop their kids off in the basement and I would play with them. They would come and check in on them. So, they were seeing how I was interacting with their kids, engaging, keeping them safe being in a very calm and peaceful kind of mindset for them. Um, and I think that grew my credibility. So those parents could see that I was trustworthy and responsible with their kids in a kind of safe environment with them near. And so, since kind of, since I was 14, I kind of just grew and grew and grew with how my relationships with those parents.
Kennedy Teal: Um, and then that just led to references. So, like, people would pass [00:08:00] my name on to this person and this person. So, it just kind of like grew my credibility. Um, since starting in such a small spot. Um, but yeah, it's grown and now I'm a junior in college and have awesome families and, and awesome references because they are just, they are so awesome to me.
Kennedy Teal: Um, so yeah, it's something that is Kind of weird to work through of like, how do I even get started? How do people trust me? But I think it also is something about like you feeling confident about how you are and how you enter a room and how you interact with the kids. It really is all about the kids. That's kind of the only thing the parents are looking at is how you engage them how you get on their level. It’s like liking what they like.
Kennedy Teal: So, like my little girl that I babysat she loves to get, uh, Dutch braids in her hair. So, like, the first day I came and started, she was like, Do you know how to braid hair? And I was like, well, of course. So, like, we immediately, like, got on the ground, and I started, like, braiding her hair. Um, so just things like that I think parents are looking for, and I think that builds a lot of trust [00:09:00] in their hearts when they see that you're engaging, and you get on their level, and you're not, like, better than them or whatever.
Cash Kid: So, do you see yourself continuing with like these jobs in the future? Or do you have like a different business idea or like career in mind as you grow older?
Kennedy Teal: Yeah, I definitely see myself finishing out college babysitting because it is something that I just truly love. And I hate that I do feel like I see an end mark in this kind of chapter in this career.
Just because I will probably have um, a career in interior design when I graduate. Um, so that doesn't mean that I have to give up all of my babysitting job. I'm sure I'll do some date nights here and there and free time on the weekends. Um, but I do see kind of my career and my day to day shifting once I graduate. Um, so that is something sad, but, um, I've also loved it and it's not going anywhere. Like, you know, I'm still around, so.
Cash Kid: Do you ever find it hard to like keep up with schoolwork or have you found ways to stay organized?
Kennedy Teal: I [00:10:00] definitely love my planner. That is what keeps me very, very organized. Kind of at the beginning of the week, my families are awesome to send me dates. Um, and because my schedule is a little crazy and cramped, I'm really blessed to have people sending me dates like in a month in advance. Okay. So, I can kind of just schedule in things very far in advance so that when my week comes I know what's on the list. I know how to prep for that Um, and then I also know my class schedule and I know my other responsibilities outside of school and babysitting so definitely invest in a planner get all your dates set up.
Kennedy Teal: Um, and then, yeah, the biggest thing is if you can get your families to give you heads up for in a far in advance, that is very, very helpful with staying organized and not getting overwhelmed with school because you know what the next and next, next week's look like. So.
Cash Kid: Yeah, so what advice would you give to other teens who are thinking about starting their own small business or side hustle, like babysitting or carpooling?
Kennedy Teal: Great question. [00:11:00] I would say start it. If you love babysitting, if you love doing your little niche, just, just go for it. It's all about confidence. Um, it's all kind of about people. Like, if you're good with people, if you can talk to a person like you're doing right now, like, you can start anything. Um, so yeah, I would say confidence, grace, patience is all very key.
Kennedy Teal: Um, but anyone can do anything, and babysitting is such an awesome gig. And I would encourage anyone to go ahead and just start. Plunge, get your name out there. There's amazing Facebook groups out there that you can join to like get into these Facebook clubs that help you, um, you can put your name out there and people can reach out to you or you can reach out to other people.
Kennedy Teal: Um, and then yeah, I think there's some awesome apps too, but my favorite thing is just referrals. So, like getting that one family will literally give you the rest of the referrals that will get you through the, the rest of your career. So yeah.
Cash Kid: Like whenever you're trying to start a business, just go for it. Because even if it [00:12:00] fails, you have mistakes that you know, that you won't make next time. And if it goes well, then you have skills that you know how to use and apply to your day-to-day life. Yes. Um, so Kennedy, is there anything that we haven’t asked you that you'd like to share?
Kennedy Teal: Oh goodness. I think you've done great I feel like you've hit all the points and I've been able to like show babysitting such a great light So yeah, thank you.
Cash Kid: Kennedy. We appreciate your time and your expertise Thank you for joining us on the Cash Kid Podcast and boosting the financial knowledge of fellow cash kids everywhere And remember anyone can be a cash kid. You just have to learn how to become one. Cash kid, out!
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A Teen Entrepreneur’s Baking Business: HOW A TEEN BALANCES SCHOOL & A BAKING BUSINESS
00:00:00:00 – Intro
Cash Kid: What's up, cash kids? Welcome back to the Cash Kid Podcast! We're in season three, and this season we’re exploring fun and creative ways for kids and teens to learn about money, entrepreneurship, and setting up their own side hustles. Today, we've got an exciting guest—someone who's already turning her passions into profits.Be sure to follow us on Instagram, Facebook, and YouTube @CashKidPodcast or sign up for our mailing list at CashKidPodcast.com.
00:00:27:18 – Introducing the Guest
Cash Kid: Today, we’re talking to a high school freshman who’s taking her love for baking and turning it into a business. She’s whipping up more than just sweet treats; she’s making some extra cash on the side! This young entrepreneur is using her skills, creativity, and hustle to run her very own baking business, and we’re thrilled to share her story with you.Stick around to hear how she’s doing it, the challenges she’s faced, and why we consider her a true Cash Kid.
00:01:45:03 – Guest Introduction
Cash Kid: Joining us today is Sadie Norris. Sadie is a fellow Cash Kid, using her talents and entrepreneurial mindset to make extra cash. She runs a baking business called "Sadie's Sourdough and Sweets." Just the mention of it is making me hungry! She’s baking up a storm weekly for clients, and we’ve asked her to join us to talk about how she’s using her baking skills to make a profit.00:01:54:16 – First Question
Cash Kid: Welcome to the show, Sadie! First off, tell us a little bit about yourself.00:02:07:10 – Sadie’s Baking Journey
Sadie Norris: I’ve always loved to bake. I make sourdough bread with my mom, strawberry pie by myself, and I use my sister’s chocolate chip cookie recipe.00:02:18:22 – When Did You Start Baking?
Cash Kid: So, when did you start baking and learning how to make these things?00:02:32:11 – Selling Online
Cash Kid: Do you have a website where people can buy your baked goods?00:02:47:16 – Shipping
Cash Kid: How do you ship your items?00:03:01:20 – Why Start a Baking Business?
Cash Kid: What gave you the idea to use your talent and skill to make some extra money?00:03:23:01 – Other Ways of Making Money
Cash Kid: I know baking isn’t your only way to make money because we worked together at the local concession stand this summer. What are some other ways you’ve worked to make money?00:03:38:14 – Finding Clients
Cash Kid: How do you find clients to buy your goods? Do you run ads on Facebook or just post in groups?00:04:04:23 – Feeling of Earning Your Own Money
Cash Kid: How does it feel to make your own money?00:04:22:07 – Saving vs. Spending
Cash Kid: You’re going to be a freshman. Are there any big purchases you’re saving up for, or do you just spend your money as you go?00:05:08:03 – Advice for Young Entrepreneurs
Cash Kid: What advice would you give to kids and teens who are thinking about starting their own side hustle or business as a student?00:05:21:08 – Balancing School and Business
Cash Kid: How do you manage your business while still being a full-time student?00:05:47:06 – Lessons Learned from Running a Business
Cash Kid: What have you learned from running Sadie’s Sourdough and Sweets?00:06:10:07 – Time Commitment for Sourdough Baking
Cash Kid: I’ve heard that sourdough can take a while to make. How long does it take you? And if you get a lot of orders, how do you keep up?00:06:52:08 – Best-Selling Items
Cash Kid: You also sell cookies and pies. What’s your best-selling item?00:07:05:17 – How to Place an Order
Cash Kid: How can people place an order, and how do they get their goods delivered?00:07:41:01 – Clarifying Pickup and Delivery
Cash Kid: Just to clarify, do you do porch pickup, or do you drop off orders?00:08:04:18 – Pricing
Cash Kid: What are your prices for cookies, pies, and sourdough?00:08:22:22 – Expanding the Business
Cash Kid: Do you have plans to expand your business, add more items, or sell online?00:08:45:05 – Baking Mishaps
Cash Kid: Have you ever had a batch of dough go wrong or made a mess in the kitchen?00:09:19:26 – Friends’ Reactions
Cash Kid: What do your friends think about you running this business?00:09:45:09 – Conclusion
Cash Kid: Sadie, we appreciate your time and expertise! Thank you for joining us on the Cash Kid Podcast and boosting the financial knowledge of fellow Cash Kids everywhere. Remember, anyone can be a Cash Kid—you just have to learn how to become one. Cash Kid out!00:10:04:10 – Disclaimer
The information presented represents the views and opinions of the guest. This podcast is for informational and educational purposes only. It does not provide personal investment advice. Speak with a financial advisor—and for kids, definitely your parents—before making any investment decisions. -
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What's up, Cash Kids? Welcome back to the Cash Kid Podcast, where we highlight young entrepreneurs learning how to earn, save, and invest at an early age. We're continuing our special series on kids with a serious entrepreneurial mindset, and today’s guest is a great example of that.
**Host:**
If you aren't already, be sure to follow us on Instagram, Facebook, and YouTube @cashkidpodcast or sign up for our mailing list at [cashkidpodcast.com](https://www.cashkidpodcast.com).
**Host:**
Our guest today is a high school sophomore who’s not only super involved in his community but also runs his own tutoring business. Balancing academics, extracurriculars, and a business, this young entrepreneur is making moves to set himself up for financial success. We’re excited to dive into his story and learn how he's managing it all while gaining valuable skills that will serve him for years to come. Stay tuned as we talk about how he’s helping others while building his own path to success, truly embodying the spirit of a “Cash Kid.”
**Host:**
“So, you've got some cash? Maybe from allowance or that money your grandma gave you for your seventh birthday. Whatever it is, what are you going to do with it? Spend it? Hide it away? Or maybe invest it? Let’s start learning how to make that money grow. Time to learn how to be a Cash Kid.”
**Host:**
Joining us today is Matthew Farmer, a sophomore in high school who runs his own tutoring business. Welcome to the show, Matthew! First off, tell us a little bit about yourself.
**Matthew:**
Hi! Yeah, it’s great to be here. My name is Matthew. I am the secretary for Model UN, I have my own tutoring business called Matthew’s Tutoring, and I’m in several other clubs. I do cybersecurity on the side and I’m part of a club called Educators Rising, where we do volunteer work. That’s all about me!
**Host:**
That’s amazing! So tell us, what are your thoughts on kids using their talents to make money?
**Matthew:**
I think it’s really important that kids use what they already know to make money. I felt like tutoring was a solid thing for me to do because I knew what was being taught in class and could help kids who were struggling. I thought, why not make a little bit of money off of it? It’s been going really well. I think it’s important for kids to do that because it teaches maturity, responsibility, and how to handle their money better.
**Host:**
I definitely agree! There’s always someone with a skill who can help others. So, what gave you the idea to start tutoring?
**Matthew:**
It’s actually a funny story! Someone from the school reached out to me to tutor as a volunteer, and I did it for a couple of months for free. I had a lot of students, and it got to the point where I was spending my own money on notebooks, markers, and supplies. I realized, with all the time and effort I was putting in, I should turn it into my own business because I found out I was really good at it.
**Host:**
That’s great! So, how do you get clients or find students to tutor?
**Matthew:**
I mainly advertise on Facebook, and I have a Google business account. If you search for tutoring in my area, I pop up in the search results. Occasionally, I go door to door, but I don’t do that too often.
**Host:**
How do you manage your time with tutoring and being a full-time student?
**Matthew:**
I plan everything out using Google Calendar. I set aside time after school for tutoring, and if I’m doing something else, I have people who work for me who can take on students. That way, I can still have time for myself.
**Host:**
What subjects do you typically tutor?
**Matthew:**
We tutor in a variety of subjects because we have different tutors who specialize in different areas. I like to focus on math and science, but we also tutor in subjects like Spanish, world history, and area studies. We offer a wide variety of subjects.
**Host:**
What have you learned from being a tutor, and how has the money you’ve earned helped you?
**Matthew:**
The money I’ve earned has helped me a lot. I’ve been able to save up to buy a car since I’m 15 and will get my learner’s permit soon. It’s nice to be able to buy things for myself and even buy gifts for my family. I also save and invest my money, which is really important.
**Host:**
That’s awesome! You mentioned you have employees. How did you get your first one?
**Matthew:**
I reached out to one of my friends who didn’t have a job or only worked a little bit. I knew they were really good at math, so I asked if they’d like to work for me. It’s better than a regular job because I pay more than what McDonald’s pays, and the hours are flexible, which is great for students who do sports or have other commitments.
**Host:**
Have you worked other jobs as a student?
**Matthew:**
Yes, I’ve worked at McDonald’s for about a year and a half as a crew trainer. It’s been a good experience, and I might try to become a manager when I turn 16.
**Host:**
What challenges do kids and teens face when trying to find jobs?
**Matthew:**
It depends on what each job offers. When I was looking for a job, I made a presentation to my parents comparing the benefits and downsides of different places. McDonald’s worked out for me because it was flexible, and they needed more people, while other places like Culver’s already had a lot of staff.
**Host:**
That’s a great way to approach it! What advice can you give to kids or teens thinking about starting a side hustle or business while in school?
**Matthew:**
Go for it! Take a risk. Even if it doesn’t work out, you tried, and you can always try again. You’ll never know if you can succeed unless you step out of your comfort zone.
**Host:**
Exactly! Trying something gives you valuable experience, even if it doesn’t work out. Have you ever wished there was a class in school that taught more about financial skills?
**Matthew:**
Actually, I’m taking business classes in high school, like marketing and accounting. Next year, I’ll take sports and media marketing, and I’ll be eligible for dual credits at my local college. My school covers the cost, which is great.
**Host:**
Matthew, we appreciate your time and expertise. Thank you for joining us on the Cash Kid Podcast and boosting the financial knowledge of fellow Cash Kids everywhere. And remember, anyone can be a Cash Kid—you just have to learn how to become one. Cash Kid, out!
**Disclaimer:**
The information presented represents the views and opinions of the guest. This podcast does not intend to provide personal investment advice. This content is for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor—and for kids, definitely talk to your parents first before investing
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A university that teaches you how to become a millionaire?
What?! Our guest on the show will explain, coming up.
So, you've got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday. Here you go, sweetie. Woohoo! Thanks, Grandma! Whatever it is, what are you going to do with it? Spend it, hide it away, or maybe invest it? Let's start learning how to make that money grow. Time to learn how to be a cash kid.
Welcome back to another episode of the Cash Kid Podcast. I'm so pumped about today's guest on the show. They might have only agreed to come on the show because I'm a kid. And how can you say no to a little kid? But whatever it is, I'll take it. Don't forget, if you aren't already, to follow us on Instagram, YouTube and Facebook.
We love interacting with our audience on these platforms. And [00:01:00] be sure to subscribe to our podcast and leave a review from wherever you're listening. Joining me on the show today is Justin and Taro Williams from the Millionaire University Podcast. Their motto is, graduate rich, not broke. I'm hooked just from that.
Millionaire University believes that anyone can start and grow a successful business. It's your school for wealth creation and on their show they interview experts from numerous industries to help you start and grow a successful business. Mr. and Mrs. Williams, welcome to the show and first off, tell us a little bit about yourself and your business background.
Woohoo! That was horrible, let me do that again. Woohoo! Yeah! That's better. I was like, wow! Man, Cash Kid, we are pumped to be here. I came across your podcast, like Few weeks ago and I couldn't stop listening. I was hooked. I love what you're doing. Uh, yeah, I'm going to have, we're going to have our kids listen to it.
So thank you so much for everything that you're sharing with everyone. First of all, we've learned a lot from listening to you. So thank [00:02:00] you. You're welcome. And thanks for having your podcast for me to listen to.
So go ahead. Perid, do you want to kick it off and share a little more about, about us and our background? Yeah, I'll give you a little bit of our personal background. So Justin and I, we just celebrated our 20th year anniversary. We got three kids. So we have an 18 year old boy, 16 year old daughter, 14 Uh, we live in California, San Diego area, and we have been running businesses together for about 20 years.
20 years! Can you believe that she's been able to handle me for that long? I'm a lucky lady. I have an awesome husband. Oh, I'm blessing. But yeah, we've had some ups and downs. And if you kind of want to share a little bit more of our business background. Yeah. So I've wanted to have a business my entire life.
I just didn't know a whole lot about business, but when I was young, your age, or even younger, I would go to Costco and buy candy and try to sell it. And, um, this is a little, I'm not sure if you're supposed to do this, but my mom would [00:03:00] buy the, like candy bars when we were, you guys today, you just like send out a text and we give you money for your fundraisers at school.
But when I was younger, I would sell like candy bars at grocery stores. So my mom would buy the candy bars. As if we were doing like a fundraiser, we'll go sell the candy bars. And, um, we were doing all kinds of stuff. I would raise lovebirds and animals and hand feed them and sell them. So I was always just trying to figure out how I could make money, but I always want to have a business, but they didn't really know a whole lot about business.
But my parents were in lots of like multi level marketing things, and they never really made a lot of money in those, but I went to like some events and. Some things that kind of got in my head. Um, when I was in high school, I read a book called Rich Dad, Poor Dad. And that really helped me kind of like change the way I thought about about money and business.
So I always knew I wanted to have a business. I always knew I wanted to invest. I always knew I wanted to create wealth and be able to do cool things in my life. [00:04:00] So, um, fast forward, went to college, uh, went to Brigham Young University and had a football scholarship. And that's where I met Tara. And so we met and we ended up getting married and I told her like, I hurt my shoulder and I knew I wasn't going to play football anymore and I knew I wanted to start a business.
And at the time I was selling satellite dishes door to door. And after doing research, I was like, Hey, I think we can make like three times as much money if we start our own business doing this instead of doing it for this other company. So I got paired a quitter job as a third grade teacher. And we went for it.
And we were pumped. We're going to make a million dollars within a year. And what do you think happened within a year? It didn't go as planned. It did not go as planned. At first, it was going pretty well when I was just selling on my own. Yeah, like, yeah, I was making more money because I was getting paid more, but there's a lot of, um, inventory we had to get and stuff.
It [00:05:00] was okay. But then we're like, hey, we're gonna get an office and we're gonna hire, uh, get up, take a partner and hire some managers to help recruit guys that can go sell in the summer. And I was running the numbers and it all looked amazing. So it's like, it's okay for spending money. We're gonna make a ton of money this summer.
But the managers didn't recruit. Our partner slept in till 1130 every day, the bills kept coming. The phone system was way more than we thought. And all this stuff kept happening. So the money kept going out, but not enough was coming in. And then the summer was getting closer and we're like. We're not going to have a program.
We ran up the numbers. We're like, we have 120, 000 of debt. We can't borrow money, putting money on credit cards and a brand new baby. And we had a baby. And so we're like, Oh, shoot. We got it. So we, we left the office, sold all the things that we had bought. I remember about like all this furniture and stuff that we did not need.
And it seemed fun at the time, but we sold the, uh, we, we got, uh, we broke the lease. We, I think we had to [00:06:00] pay a little bit of money. We, and we moved to Bakersfield, California, where we lived in a small room with a bunch of other people, our brothers and people who are working for us. And our son slept in the closet and I would go out every day in the 110 degree heat of Bakersfield and sell satellite dish and just worked so hard.
And I was like, this is not what I envisioned being a business owner. So tell us more about Millionaire University and um, like why did the podcast start? Go ahead, Tara. Well, Millionaire University, so, you know, a little bit more about our background is we, Bought and sold houses and we educated people on how to sell houses and we ran, you know, we had multiple businesses and then there came a point where we sold one of our businesses and we had some good investments and we had a lot of free time on our hands and we traveled, we'd all kinds of different things.
And then we got bored and we were like, what are we going to do? We had retired at a young age. We have all the things we want. We made all the money we want. We have [00:07:00] more money that we're making passively each month than we spend. We did it. So we went through those hard things and then we had financial success, but then we were bored like human beings.
We need to progress. We have something inside of us just wants to grow and we want to go and we want to do things. And so there came a point where we were kind of bored. And as you can tell, Justin is a natural born entrepreneur. Like he just loves it. I am not a natural born entrepreneur, but I'm a hard worker.
And so I had to learn it on my own and obviously with Justin's help and just with life experience, but I'm smart and I can do lots of different things and I have a good eye for things. And so he and I have been a good team, but he just has this passion in him to teach people about business. And we wanted to create something that our kids could listen to and that would really help them.
And that would help other people save on some of the mistakes that we made to give them lots of information, education, really valuable episodes that give them a ton of ideas and tips so that they could also start a business and have more freedom because [00:08:00] it has created a great life for us. We've done lots of really cool things and it's caused us to grow a lot.
And so Millionaire University is the resource we wanted when we started a business. So it's kind of like you've mentioned cash kid. I know, um, you're a big believer in, like, education is important, but you also feel like it could be improved, right? Teach a lot about money, how to make money, how to start a business.
And so I was just so confused. And as our kids are getting older and getting ready. To for that age where are they going to go into college? Are they going to start a career? What, like, what are they going to do? They want to start a business, but we're like, there needs to be a resource. Like too bad.
College or school doesn't teach you more about starting a business. And so we were like, I kept complaining about it. And one day, like we're bored, we're not doing a whole lot. And we're like, why don't we do that? That's what entrepreneurs do. That's what business owners do. They think they see a problem and they're like, well, I'm going to go.
Solve that problem, come with a solution for it. [00:09:00] So that's what Millionaire University is, is kind of a, the solution to, to that, that problem that, that we felt like was out there. So, yeah, I totally agree. Our, our podcast is to help the solution of like, not as much financial literacy in schools. We want to help give that to kids who really aren't given the chance to learn much.
Like my entire six track year this year, we had five minutes. In the first section of our social studies class to do a stock market game while we're going through the great depression in our social studies. That was the one time that we had it and it was for a nine week period. It was the first five minutes one time on Monday.
So really we had 45 minutes of financial education the entire school year. And so it's really not enough because by the time you get out and into the real world, you're going to have taxes and stuff. And no one's ever taught you how to do that. So. That's kind of the mission here. I love it. Amen. Yeah. So, [00:10:00] uh, tell us about some experiences you've had running your own business, the ups and downs and all the failures that got you to where you are today.
There's been a lot. How long is this podcast? We've had many ups and downs, many successes, um, and many failures. But that's what's amazing about running a business is, you know, you go to school and you show up, like you said, and, and the teachers and we're grateful for school, you know, teaches you habits and how to make deadlines, how to be organized, how to be social.
There's so many good things. And that's a really important phase of life to learn those things. But then there comes a time where certain individuals decide they want to start their own business. And you don't have anybody who wakes up in the morning and says, get up, do this. This is how you make money today.
Nobody's telling you that. So who has to tell you that just you, you're your own boss. And so you go from people saying, turn this assignment in exactly this day to this time to, and you're just, you're just doing [00:11:00] what everybody tells you to do to where all of a sudden you're your own boss. And there's.
It's epic that your own boss and it's also really scary sometimes because you're like, what do I do? How do I handle this? And so we've had to learn to be our own bosses, how to handle problems that come our way because that's what business owners do. They solve problems every single day and how to solve problems and also be able to make money and take care of our family.
And so it's been a journey. I think it's kind of interesting. If you look at college and the education system, people will spend Thousands, tens of thousands of dollars to go to this place for four to eight years to have someone else tell them what to do, where to go and all these things. And it's like, if you can take that same.
Thought process, but apply it to business because what happens with business is when things don't go perfectly. A lot of times people like, Oh, I fell like, cause I didn't make a ton of money right away. It didn't work out. But if you can have the thought process of I'm doing things that I believe will lead me towards [00:12:00] creating a financial wealth and financial freedom, but if it doesn't go perfectly, then you look at it as, Oh, I'm learning, this is an education.
And you won't look at it as a failure because no one finishes college after four years, even though they didn't make money and they spent money and end up in debt. And they're like, I failed, you know, they know, like, no, like I accomplished something. So I think if we can shift our mindset when we're starting a business and growing a business and know that there are going to be struggles and failures along the way, but that's just a part of the process.
Um, Who was it? Who? It took like a thousand times to Benjamin Benjamin Franklin. Yeah, maybe I should go back to school, um, to, to discover electricity anyway, but it wasn't like he failed. He was just figuring out ways that it didn't work. Cause then he would know the way that it did work. And that's really all like a business is, is you, you take action on things and there's certain businesses you can start.
They are like service businesses [00:13:00] that you can start making money tomorrow. And then there are other businesses like, um, creating a platform, like a podcast or a blog or like creating an audience that are going to take a lot longer, like you're not going to make money instantly. But you've got to look at it as more like, do you enjoy it?
Are you learning? Are you growing? And then more for the longterm. Right. So I think there's just different ways to look at your business, depending on what you're doing. And, but just know that struggles and failure are going to be a part of it. So that when those happen, we always tell our team, like we get paid to solve problems.
So when problems come, you literally should be like, yes, it's a problem, you know, instead of, cause if we get down and we're like, oh, this is so hard, then it's easy to quit and give up. And then you won't ever achieve your dreams. So, yeah. Uh, that reminds me when you go into the failures, my, uh, math teacher in her room, she had up a poster and it said, I haven't failed.
I've just made 10, 000 [00:14:00] mistakes. Yeah. I learned 10, 000 ways. How to not do it. Right. So, yeah. Yeah. And to give you some, you know, specifics of mistakes we've made. I mean, we've hired people and trusted them way too much. We didn't really like pay attention to them or keep track of them. We were just like, okay, you do this.
And we didn't want to want to hear about it. We've gotten really good at being more accountable with our people, keeping, you know, stats, uh, researching different things, making sure we're staying on top of managing people. Uh, we've gotten smarter at how we spend our money. You know, what numbers are we getting back?
We've gotten better at creating contracts and how we work with people. Negotiations. We're way better at looking and finding good people, better opportunities, better situations. But we've made mistakes with people, with money, with investments, all kinds of different things. We wouldn't know any of that if we didn't take action.
And every mistake we've been, that we've done. If we stick with it and overcome it, we get way smarter and way better. And so the weird thing is, is like, we might have a hard experience or we might lose [00:15:00] some money, but we ended up making a lot more money because we learned from it and we didn't just give up.
So that's really huge. I totally agree with that. So what financial education were you taught or exposed to growing up or maybe not exposed to that you wish you were? I mean, I went to school and then I went to college. I always knew I wanted to go to college, put myself through school. I had a paper out when I was 11, babysat when I was like nine.
So I've always worked, worked hard, put myself through college, figured out college, got scholarships, played sports, did all kinds of different things. But I was more like, okay, you do this and this. I didn't know really anything about the entrepreneurial world. And so I was a third grade teacher. And I was working really, really hard and that was a great job, but I was getting paid like nothing.
I couldn't even support my own self almost. And so when Justin came into my world and he had this natural born entrepreneurial way of looking at the world and he said like, let's make a million dollars in our first summer. I was like, yeah, let's do it. So we didn't have a ton of experience growing up and he talked about some of the experiences that he had, but he and I just kind of have figured out [00:16:00] things together.
But it would have been amazing to get a lot more help and resources like there are today. Like there's so much cool information out there. It's wild. It's a good thing. She didn't see into that first year and we had 120, 000 of debt. She might not have married me. You know, I don't know. So do you feel like financial education is needed in our schools?
And if so, what type of it do you think is needed? Oh, my goodness. Yes. It's like an understatement of the century. I mean, people don't even know how to balance their checkbooks, how to save money, you know, how to run numbers, how to have investments. I mean, it's crazy. Yeah, I think there was a study done, like, even like, I don't know if it's two thirds or higher.
Um, of adults can't even pass a basic financial, like literacy test. Like very, very basic. It's just something that isn't taught. And not only do I think it should be taught, I think it should be the main thing that is taught. It's like everything else is [00:17:00] like around that. It's like, maybe we learn a few minutes of, I don't want to pick any specific subject, because then someone might get upset.
But I think financial literacy, I mean, it's not. I remember like pretty much being done, you know, I was done with college and leaving and just being like, I, I didn't really learn a whole lot, like my whole goal now I'm gonna go make money and take care of a family. And I don't know how to do that really other than just.
But if I would have had the opportunity to start when I was younger and been investing and learned about money and being able to maybe even start a business like many years before, we would have avoided a lot of stress. And I think like marriages would be better. Families would be happier. Um, I just think it's so needed.
The education system has stayed pretty similar. It's evolved a little bit. For so long for so many decades and it just really means a major overhaul, I think Yeah, that reminds [00:18:00] me of uh, like funny thing that happened in school one time So we were gonna go outside for recess and um, it was raining So we had to do indoor recess and all my friends they were off playing Like, uh, board games and they were like playing with the deck of cards and I go up to my teacher and I ask, uh, can I check my stocks?
And she goes I have never taught anything about stocks. I've never had a kid ask me about stocks She texted my mom about what had happened because she was just amazed that like I had under And I had learned that and so I thought that was just really a funny like story that had happened Uh in school like just how surprised the teacher was that I even knew about it because She may not have even known about it.
Gosh kid. I got a question for you. Is that allowed? Yeah I know this is your interview. I don't know if I can uh, flip the script, but sure I was Talking to my daughter yesterday. She's 14 And she just, she's, she's been babysitting 16. Oh, she's 16. [00:19:00] That would be our son. She used to be 14. Okay. I feel like she's still my little girl.
She's okay. She's growing up. She's 16 and she's babysat in the past, but now she's got like a more regular babysitting job where she'll be babysitting two, three times a week. She's getting paid a little more money. So she's very interested in investing. And I haven't done a ton of stock investing. We've done more like in real estate and stuff like that.
But I was telling her, I was like, you should probably just put a bunch of money, like in stocks and, but she was also asking like, well, how much money can I make if I put in stocks? Like, what would your advice be to a, a kid, whether it's like anyone from the age of 10 to 18 or whatever? Yeah, who's making money?
Like what percentage would they put in? Like how much money do you think they can make from that? Like, what would you tell her like where to put that? Okay. So, um, I, so when you said 10 to 18, I bought my first sock at 10. I [00:20:00] got my brother. So we invest in an app called green light that allows kids to have like their own debit card.
And so, my brother, I, like, taught him about it when he was 8, I just told him, like, a couple of stocks, and so he invested when he was, like, 8, or 9, and so, um, I kind of feel like, at the beginning, you're interested in stocks, I go for big, like, blue chip companies, like, not anything risky, nothing below 5, like, so, I remember, my first stock was Amazon, then I moved on to Apple, Google, OnCloud, then, you.
Then I now have a love hate relationship with Tesla.
Um, that's kind of been like my up down moment. We recently got a Tesla, so we're supporting. We're trying to help you. We're trying to help you out. Um, uh, let's see, but like, if you're ever, if your stocks are ever down, don't feel the need to sell. Um, you, as long as you know that it's a good company, [00:21:00] uh, Like keep that invested in it because you know that it's going to end up rebounding.
Um, but also if it is just losing you a ton of money and like there's news about it that's bad, you don't need to be afraid to take a loss. I've sold a loss but always try to get like a, like a profit to offset it or at least not make the loss as bad. Um, the stock market normally compounds around like eight percent each year and then of course you have recessions every eight to 12 years.
So I mean, I did a report in school and if you investing earlier, 10 years earlier than the normal age, you can make just in a 20 to 30 year span, an extra 134, 000 just by investing a hundred every month into, uh, the S and P. And so that study was like shown. Check the research too and it's really proven so Say I started at 10 years and then the next person started at 20 years old.
Um, [00:22:00] the 10 year old person would make 134 thousand dollars more than the 20 year old In just a 30 year span he invested for 30 years the 20 year old invested for 20 But he makes that much more the 20 year old makes like 74,000 ish if it compounds at like 8% each year. So just investing early has a huge factor to give you a head start in life.
And that's just a hundred dollars a month you said, right? Wow. Yeah, just hundred. That's amazing. Yeah, let's do that. Okay. I'm gonna let my daughter know 'cause she's gonna try to invest like a thousand a month, I think, or four or 500 months. Yeah. First anyway, . Yeah. Okay. Well, that was amazing. Thanks so much for coming on your show today.
All right, we can get back on track. Okay. Yeah. Um, do you feel, uh, my generation could be the largest group ever to reach millionaire status? Better, they're better by the time you're our, our our age. If you don't have, if you're not a millionaire, then you're probably [00:23:00] gonna struggle to pay your bills.
Mm-Hmm. 'cause of, I mean, inflation and everything, but I mean, you had some good answers for this. I mean, you guys have more information than anybody has. I mean, look at you, you are extremely intelligent. I'm like, wow, if I was this smart at his age and look at all the things that you're doing, like there's so much out there, so much information, good looking, I know, right?
Our daughter was a little younger, but, but we were talking about this. You guys have so much opportunity and so do we, I mean, we have it just as much as you guys do. And I would say the hardest thing with any human being, no matter what generation you're born in. is work ethic and distraction and distraction.
And so, you know, this generation, we are, we can get things quick, that quick instant gratification. And when you have a business, it's more of a long game. Like you got to be patient and it will, it throws curve balls at you and people aren't telling you exactly what to do. And so can kids and this generation [00:24:00] be millionaires for sure.
But will they face themselves, develop the work ethic, develop some patience and put themselves out there? Step out of the box a little bit. Habits to avoid the distraction. Like sometimes our kids are like, Hey, get off your phone. Yeah. You know, like, I mean, you could waste a whole day on your phone or social media today.
Someone listening today could go invest a hundred dollars in SMP and in 10 years, their peers will have maybe nothing in their bank account. And this person will have all these investments that are building. And so if you're willing to learn and work hard, heck yeah, you can. Absolutely. Yeah. You got all the information right at your fingertips.
All right. Let's talk business. Our next season on the cash code podcast is going to be focused on ways kids and teens can use their skills to earn money. What opportunities do you feel there are for the next generation in starting and running their own business? So many. So many opportunities. Here's the thing, [00:25:00] so our kids right now, we're having them all get jobs, just regular jobs.
because it's easy to talk about having an idea, but to actually get out there and do it and do the hard work to sell something can be challenging. And sometimes kids don't have the work ethic, like they've never had a job. And for some people that works, they're just going to go, they're just going to go after it.
And that totally works fine. But if you've never had a job and starting a business seems really overwhelming, you know, go work at Chick fil A or get a paper route, go do some babysitting. Develop a little bit of work ethic and then build off of that because the opportunities are there, but whether or not you take them and do something with them is up to you, really.
Yeah. But as far as opportunities, like we always say, there's a million ways to make a million dollars. It's just a matter of picking one and kind of going down that path and then learning as you go and then adapting. It's all about. Taking action because you never know what one thing is going to lead to like you're never going to end up doing the exact thing that you thought you were starting out to do.
But I mean, there are so many like service based businesses, whether [00:26:00] it's like mowing, mowing lawns or doing. Yard work, um, cleaning out gutters. Maybe not if you're too young, you don't want to fall, but washing cars, walking dogs, pet sitting, cleaning up dog poop. I used to shovel like horse manure when I was, when I was younger.
And then you have like the online, like if you can learn anything about digital marketing, uh, those are all huge, uh, skills and assets. We're always telling our kids, learn skills, whether you're learning skills or things that you're really good at and passionate about, you can always turn those things into a business.
Um, our son, our 18 year old son, he's learned how to fix iPhones. So he will get people's iPhones. He'll fix them and he can make a hundred dollars an hour doing that. Now his goal is just to market enough to where he gets a bunch of people and then he can hire other people and pay them 20 an hour to help him.
And then he's essentially making, [00:27:00] you know, maybe not quite 80 an hour on every hour they work because he has marketing costs and stuff like that, but he could then be making 30 an hour for every hour that other people are working for him. So at first it's all about making money whether it's a job or doing a service based business on your own And then the goal is to use leverage which is either Other people which is money Or other people so that you can scale and grow and so that you can make more money than a normal person would be able to make on their own, just working by themselves.
So I know I kind of threw a lot out there or another leverage point is if you have like a media platform, like a podcast or something like that, you can grow an audience and then you can either. sell sponsorships or, or courses or programs or, or things like that. So lots of opportunity. All right. Um, how are you teaching your own children about running a business and their potential to be entrepreneurs themselves?
I mean, some of the things that we're doing are very [00:28:00] basic because running a business is. You have to have habits. You got to go to bed at a good time. You know, you can't be addicted to your phone. That's a hard one with our kids. We're like, get off your phone and focus, focus, distraction. That's a really big one.
Can you stay organized? Can you have a deadline and follow it? So a lot of the things that we work with our kids are, okay, you have this awesome idea. Like you want to get this 3d printer and you want to print really cool things. Our 14 year old was just barely talking about this before we left. And it's like, okay, do you know how to communicate and talk to people?
And so it's, those habits are really, really huge of, do I believe in myself? Can I do what I say I'm going to do? Not just talk about the idea, but actually do the hard work. And then can I follow up and have accountability? And can I hold my own self accountable? We do a lot of that. We are constantly talking to our kids about money and entrepreneurship.
Anytime we go on a trip, like a plane or somewhere, they have to do, instead of just playing games, they have to spend [00:29:00] half of the time Listening to podcasts or business books or self development, and then they can spend the other half of the time, like watching a movie or playing other games or stuff like that.
And I think just getting that stuff in their head. I'm talking to them all the time about it. We do a lot of just kind of general life coaching too because it takes some confidence You know, you have to have some confidence to hop on this podcast and be the cash kid I mean and then you're learning and so we talk to our kids a lot about Have a voice.
You know, when you're in a room, look at people in the eye and say, hello, you know, do you feel comfortable being around other people? Can you stand on your own? There's a lot of mental health that we talk about too, so that they feel strong and confident and have those habits. So they're like, okay, I can do this.
Let's go. So we do a lot of that as well. I mentioned this already, but the more skills you have, the more likely you are, the more successful you're going to be at starting a business. It's like our son. Um, another thing he's starting to learn is how to code [00:30:00] now. I don't know in 10 years, like what he's learning right now with AI may not maybe obsolete, but as he learns how to code, he's going to learn some basic things that he can then go out and get paid to do that for other people, or he can do it in his own business.
Or what I keep telling him, he's like, Oh, what if AI? I'm like, then learn how to use AI to code, you know, like, keep learning, stay on the cutting edge of what's going on. You just keep growing and adjusting and pivoting. And if anything else, like Tara mentioned, he's learning how to be focused and how to learn a skill and how to apply that skill.
And then he can learn other skills from that skill, like apps that he wants to create and different cool things that he wants to do sometimes just getting your brain going on all the different ideas and then taking action on those. That's a skill in and of itself. And sometimes too, it's really good.
It's like play a sport where you develop this grit. Like when I was 14 years old, I started running on my own. Nobody told me to do it. I just wanted to be able to run. So I'd run [00:31:00] like a quarter of a mile and I'd stop. And then I'd be able to do a half a mile. And over a whole summer, I was able to run two miles by myself.
And that created so much mental strength in me because it was so hard. I was, I was overweight. My body wasn't healthy, but I really enjoyed sports and that made me so strong. And then when I was able to do that, I was like, you know, well, maybe I could do this. Maybe I could get myself into college. And I did.
I did. And then when Justin came and was like, Hey, we could do this business. I felt pretty strong. And I was like, I could do this too. And I'd had jobs over the years. I'd done a paper out when I was young. And so it's just starting kind of where you're at and pushing yourself outside your comfort zone and going, what job is a little uncomfortable for me, but when I can do, and then just keep building from there, keep replacing what you're doing with something even better, the fits where you want to go.
Yeah. If you become good at sitting, you know, watching dogs or walking dogs. Over time, you might be able to start a dog walking business, or you might see, oh, these dogs need better, like, leashes or collars, and then you [00:32:00] can start an e commerce business selling those things, like, but then you gotta learn about e commerce, right?
And then you learn skills around there, you learn marketing skills, like, now I know this marketing skill, and I can turn that into an agency, like, All these things just build on each other. It's about taking action and keep adapting as you go. Yeah, well said. So, your episodes are so jam packed with information.
What are our future plans for the show? To take over the world. Just kidding. Don't listen to her. I'm just kidding. I'm just kidding. Go ahead. Well, the first year, the goal was really to focus on the podcast and grow the podcast. We were also traveling the world. So it's so cool because we're in these other countries and then we're also growing this podcast.
And so that's been the goal of the first year. And then the second year is to monetize the podcast, to be able to, for every dollar we spend, you know, get 50 cents back and then a dollar and then 2. And so the goal currently is. To make money on what we're spending to grow the podcast. And then [00:33:00] what's after that?
So we want to keep growing the podcast. We want to keep growing other platforms like social media, social media, our email list, um, uh, our, our website, like get better content, more content, our website, and then we want to launch a program, which will probably happen next year. Um, and then eventually like kind of like a, the end goal, there's never the end, but.
One of the main goals is this probably won't be several years down until several years down the road, but we would love to have like an actual physical campus called Millionaire University, where amazing people come just like you would to college. But instead of just learning more about history or science or different things, you're there to grow a business to invest money like that's, that's the main thing that you learn about.
And the whole concept is you graduate rich, not broke. Like you graduate. Where you're financially free, you're well off, you've made good money, you're making good money. [00:34:00] And you can take those skills and, throughout your life, so. To close out, is there anything that we haven't asked you that you would like to share with our audience?
All I would say is like, action leads to information. So if you're unsure what you should do, that's okay. A lot of people like overthink it. Just start taking action. You don't have to do things that would cost like a bunch of money to do. Just get out there and try to figure out how you can make money.
And then the more you do, the more you're going to learn. And then you can adjust as you go. And ultimately like anyone who just focuses on that, they're going to end up. Well, really financially free and happy and develop a lot in their life. And. Yep. Yeah. And just remember everything you want is a little uncomfortable.
I imagine when you did your first podcast, it was probably pretty uncomfortable. Start where you're at. Do something uncomfortable. You know, physically push yourself, find a passion project, push yourself into that and just start doing cool things because they build [00:35:00] and the truth is like making money is, is cool.
But, and we need money to, to survive, to pay our bills, to do fun things. It's an exchange of value, but what's so cool about working towards making money and working towards creating that value is it forces us to go through a lot of challenges, a lot of obstacles, a lot of problems that we're solving. And we've come to find that even more power, even better than the money is the person that you become by going through that journey, through that experience.
You know, whenever you go watch a movie, it's like the person like has this goal of this thing they want to accomplish. They call it the hero's journey. And what happens is they get ahead of set out on this journey and the end goal never ends up being what they thought it was, but the end goal helps them become the person that they needed to become.
And that's even more powerful. And that's how we're touched. And that's how we are as human beings. That's what we resonate with. So I congratulate you on this, this journey, you're facing a lot of hard things that a lot of people wouldn't do just because it's [00:36:00] like in the mind, our mind will be like, Oh, this is hard.
I can't do this. I'm too young. And you're just going for it. So I think that's. That's amazing. Not only are you going to be rich, but even more importantly, like the character that you're going to develop along the way and the person you're going to become. All the people you help. Yeah. It's just really cool.
Mr. Mrs. Williams. We appreciate your time and your expertise. You can listen into the millionaire podcast on any podcasting platform and check them out at millionaire university. com. Also be sure to check out their free business training on their website. Thank you for joining us on the cash good podcast and boosting the knowledge of fellow cash kids everywhere.
Remember. Anyone can be a cash kid, you just have to learn how to become one. Cash Kid, out.
The information presented represents the views and opinions of the guest. This podcast does not intend to provide personal investment advice. This content has been made for informational and educational purposes only. To make a [00:37:00] full and informed investment decision, we advise you to speak with a financial advisor, and for kids, definitely your parents first before investing.
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You don’t have to wait until you’re grown up to start making your own money. Whether you want to save up for something big or just have extra cash for fun, a side hustle could be your answer.
But where do you start?
Stick around—I’ve got alot the tips you need to become a money-making Cash Kid!Hey, Cash Kids!
Welcome back to the Cash Kid Podcast, where we teach you tips and tricks to making, saving, and growing your money as a kid or teen.I’m the Cash Kid, and guess what?
We’re kicking off Season 3, and this season is all about…drumroll please… jobs kids can do!That’s right! This season, we’ll explore all sorts of jobs and side hustles you can try to earn some extra cash, even if you’re still in school.
From mowing lawns to babysitting, from pet sitting to selling crafts online, we’ve got all the ideas you need to start earning.Whether you want to save up for that new video game, a special pair of shoes, or maybe you’re like me and want to invest in some stocks—this season is for you!
( And we’re definitely gonna talk about stocks here and there… I’m a little angry with Tesla… but yet… I want one.)
So, today’s episode is a short one, but I want to give you a sneak peek into what’s coming up in this season:
We’ll talk about how to find jobs in your neighborhood—the ones that pay you for your effort and responsibility. We’ll share tips on starting your own mini business—ever thought about setting up a lemonade stand or a dog-walking service? Plus, we’ll even dive into saving, spending, and investing what you earn—because being a Cash Kid isn’t just about making money. It’s about learning how to use it wisely!And don’t worry if you’ve never worked a day in your life—we’ll walk you through it all.
We’ll also have some special guests on the show who will share their stories of how they got started and give you tips to help you succeed.
Oh, and maybe you could help us out here on the show!
If you know a kid or teen who is doing something to make money, we would love to feature them here on the Cash Kid Podcast.
Just email us yourself or have a parent reach out to let us know what you’re doing at [email protected].
We want to spotlight as many fellow “Cash Kids” as we can!
Next Monday, we’re diving into our interview with another podcast called Millionaire University. It’s going to be our longest episode yet and young and old a like can learn so much from what these two millionaire entrepreneurs have to say about us kids making our own money… and even millions… one day!
Alright, Cash Kids, I’ll leave it there for now.
So, make sure you subscribe or follow the podcast and follow along so you don’t miss out on any of these great ideas. Also be sure to follow us on Instagram, Facebook or YouTube @cashkidpodcast.
Remember, anyone can be a Cash Kid—you just have to learn how to become one.
Cash Kid, Out!Disclaimer:
The information presented represents the views and opinions of the guests. This show does not intend to provide personal investment advice through this podcast. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids, definitely your parents first before investing.
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00:00:00] It's over! Not the podcast, just season two. A talk with the Cash Kid, coming up.
So, you've got some cash. Maybe from the allowance, or that money your grandma gave you for your seventh birthday. Here ya go, sweetie! Woohoo! Thanks, Grandma! Whatever it is, what are you gonna do with it? Spend it, hide it away, or maybe invest it? Let's start learning how to make that money grow. Time to learn how to be a cash kid.
Welcome back to the Cash Kid Podcast. I'm your host, and today, we're closing out season two with a bang. But don't worry, the podcast isn't over, just the season. We're reflecting on what we've learned. I'll share some personal insights as I continue my financial journey as a Cash Kid.
Can you believe it? This is episode 40. We've covered so [00:01:00] much ground this season the last 25 episodes of season 2 our focus was building super financial skills. From understanding a checking and saving account and compound interest to avoiding scams and shopping tips. We've laid the groundwork to set you up for financial success.
We live in the information age.
All the information is there. It's just taking it and applying it. Which is where we got our motto for the Cash Kid Podcast. Stating how anyone can be a Cash Kid. You just have to learn how to become one.
We're all capable of it. I see it already at the age of 12. Our most popular episode, episode 22, Working for Greater Financial Education, featuring Ms. Wanda McAbee from the Alabama Council on Economic Education. She's a true champion for financial literacy.
It was inspiring to hear about the strides being made to bring this critical education into our schools. She continues to be a great advocate for what we are doing and help our [00:02:00] mission.
So, what have I learned in these last 25 episodes? A lot, actually. Did you know how many adults feel uncomfortable talking about money? Some even graduate from college without a clue on how to manage their finances.
I'm 12. That's a bit scary. But, I'm hearing from adults who appreciate our podcast shows and how important financial education is at any age.
And let's be real, we don't have excuses anymore. The information is out there,
and our mission is to make it accessible for kids and teens, parents, and even grandparents. Together, we're building a healthier mindset around money. And it's crucial, because according to Business Insider, the total household debt in the U. S. hit 17.987 trillion in early 2024. Imagine what this could look like if our generation doesn't get financially smart?
What I've learned from my interviews this past [00:03:00] season is how my generation will be one of the ones to not really touch money or have less of an actual emotional attachment to it because we never get the sensation of feeling it. It's all in the cloud, basically.
There's also the emerging world of Bitcoin and cryptocurrency. How will that affect my generation? There's just so much to explore. And I'm glad you're here to join me on this Cash Kid journey. I'm actually surprised how many of my friends are starting to invest now as well. I'm getting asked. Weekly about what companies I'm looking at and whether I plan to buy or sell a stock based on the market trends. Now that I think about it, it stresses my parents out some.
But, me and my friends are on this journey together, and I love the discussions around stocks at my school. It's definitely a Cash Kid goal to have more kids discussing these topics. And, as we wrap up season two, I'm excited to announce our focus for season three. How kids can start earning money.
We're [00:04:00] interviewing young entrepreneurs and exploring various job opportunities for kids and teens. You won't believe the amazing things kids are doing to make money. Whether you're interested in starting your own business, learning about stocks, or just finding a way to make some extra cash. Season 3 will be packed with tips and Information. It's mind blowing to me how many options kids like me really have. So please, if you aren't already, subscribe to our show on whatever platform you're listening from. Follow us on Instagram, Facebook, and YouTube at Cash Kid Podcast. And joining our mailing list can help you keep updated on what's next for the Cash Kid Podcast. You can find all of our handles episodes and our mailing list, also our merch, at our website, cashkidpodcast.com. Also, we would love your support for this show. Podcasts are passion projects, but they come with expenses. So [00:05:00] let's support our mission by grabbing some cash kid merch on our website or by donating through Buy me a Coffee. You don't actually get me an actual coffee. It's just a metaphor to like, donate directly for a cause. The coffee's for my mom, who actually gets up really early to edit these episodes.
Thanks mom!
Remember, I'm learning right alongside you, and we're growing as cash kids together. I'm here to find the experts and bring you the best advice. To help us all grow and build a healthier financial future.
So, let's get ready to make some cash in Season 3 of the Cash Kid Podcast. See you there. Remember, anyone can be a Cash Kid, you just have to learn how to become one. Cash Kid, out.
[00:06:00]
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It’s time to go back to school already.
(Sigh)
My true feelings about school and the cost of heading back.
Coming up!
Intro:
So, you got some cash, maybe from an allowance? Or, that money your grandma gave you for your seventh birthday.
Here ya go, sweetie! Woo hoo! Thanks, Grandma! Whatever it is, what are you gonna do with it? Spend it? Hide it away? Or maybe invest it? Let's start learning how to make that money grow. Time to learn how to be a Cash Kid.
Hey, Cash Kids! Welcome back to another episode of the Cash Kid Podcast, where we teach you all the tips and tricks to becoming a money-savvy kid or teen.
I’m the Cash Kid and today we’re talking about something that’s on everyone’s mind this time of year—going back to school.
But not just any back-to-school talk—we’re diving into how to be mindful of the costs and expenses that come with it.
Where I live, we are already in week two of school and the idea for this episode actually came from a story one of my new teachers shared in class. We were having to glue some items into some pages in our binder and he was instructing us how to use the glue…we’re 7th graders so thought it was a little strange but then he shared this story how a boy saw this girl using too much glue on a project, and he asked, “Why do you use so much glue?”
And she replied, “Because glue is cheap!”
And he said, “It must be nice to live the 3-ply life.”
(sound effect after joke)
So, whether you can live a 3-ply life or not, you need to listen up to this episode.
Whether you’re getting new supplies, new clothes, paying for lunch for yourself – or your friends, or just taking care of school property, there’s a lot to think about. So, let’s jump right in and see how we can be smart with our money as we head back to the classroom.
**[Sound Effect: School Bell Rings]**
**Segment 1: Back-to-School Shopping**
Alright, first up, let’s talk about back-to-school shopping. It’s easy to get carried away with all the cool notebooks, backpacks, and gadgets. But before you start filling up your cart, take a moment to think about what you really need.
We’ve addressed these a few times already on the Cash Kid Podcast in understanding the difference between needs and wants.
Make a list of the essentials—things like pencils, notebooks, and folders. Then, check to see if you have any supplies left over from last year. Reusing what you already have is a great way to save money. We reused our backpacks, and water bottles from last year for instance.
Also, consider setting a budget with your parents. This way, you won’t be tempted to buy things that aren’t necessary.
Pro tip: Look for sales and discounts. Many stores offer back-to-school deals, so you can get what you need without breaking the bank.
**[Sound Effect: Cash Register Cha-Ching]**
**Segment 2: New Clothes and Shoes**
Now, let’s talk about something that’s super exciting for a lot of us—new clothes and shoes! I made a deal with my parents if I made straight A’s last year could I have a pair of OnCloud Shoes. I already own 5 shares of their company’s stock too so I wanted a pair. So, maybe you can make a deal like that. Maybe you’ve earned some money over the summer and can asks to share the cost of a pair you really want.
Also, it’s always fun to start the school year with a fresh outfit, but it’s also important to be mindful of how much we’re spending.
Before you go shopping, take a look at what you already have. Do you really need a whole new wardrobe, or can you mix and match some of your current clothes to create new outfits? Sometimes, just a couple of new pieces can make a big difference.
You don’t actually need an entire new wardrobe to go back to school.
Well, some my age do as there are kids who grew a lot over the summer. But, that constitutes a need, not a want.
When you do go shopping, try to focus on buying quality over quantity. A few well-made items can last you longer and save money in the long run.
**[Sound Effect: Clothes Hanger Sliding]**
**Segment 3: Lunch Money and Daily Expenses**
Next, let’s talk about one of the biggest daily expenses—lunch! I’m not going to lie, when I moved to middle school, the freedom of more choices for lunch was appealing. I started buying a X drink every day at lunch before my Mom got pinged with the need to replenish my lunch money supply within a few weeks and questioned me on what I was buying. Let’s just say… we had to make some cut backs.
I also know of lots of other kids who want to be kind and buy all their friends an ice cream or buy their friends a lunch with their lunch money. Good intentions… but probably need to discuss with your parents first.
Whether you’re buying lunch at school or bringing it from home, it’s important to be mindful of how much you’re spending.
If you buy lunch at school, ask yourself if there are ways to save. Maybe you can bring a snack from home and only buy part of your meal. Or, if you bring lunch, think about packing leftovers from dinner. Not only does this save money, but it also helps reduce food waste.
And my school is always running some kind of fundraiser for an organization selling cookies, snow cones, and candy. These can add up quickly! Try to set a daily or weekly limit on how much you spend, and stick to it.
**[Sound Effect: Coin Dropping in Piggy Bank]**
**Segment 4: School Supplies for the Classroom**
Now, let’s talk about something a little different—helping out your teachers with supplies for the classroom. Sometimes, teachers ask students to bring in extra items like tissues, hand sanitizer, or dry erase markers. Great parent volunteers usually donate a lot these items for our classrooms. Also, PTO organizations are great at raising funds to mee these needs. So while you may not be buying these supplies yourself, I think it’s important you understand they weren’t free… kind of like back to the glue is cheap story earlier.
Remember, every little bit helps, and being mindful of your spending doesn’t mean you can’t help others.
**[Sound Effect: Pencil Writing on Paper]**
**Segment 5: Taking Care of School Property**
Last but not least, let’s talk about taking care of school property. This might not seem like a cost to you, but it’s super important. When we take care of our school’s devices, desks, and other property, it saves money in the long run.
Think about it—if everyone takes care of their chrome books, lockers, and yes, not trash the bathrooms, the school won’t have to spend as much on replacements. That money can go towards other things that benefit you and your classmates.
Plus, it’s just the right thing to do!
**[Sound Effect: School Locker Closing]**
**Conclusion:**
Alright, Cash Kids, that’s all we have for today! Remember, being mindful of the costs of going back to school doesn’t mean you can’t enjoy it. It just means you’re making smart choices that will help you—and your family—save money in the long run.
So, as you get ready to head back to school, think about the tips we talked about today. Make a list before shopping, set limits on daily expenses, be smart about buying new clothes and shoes, contribute to classroom supplies in a way that works for you, and take good care of your school’s property.
Oh, and what are my true feelings about being back at school?
Well, let’s be honest, if I had a choice, I’d rather be at home checking my stocks and playing video games or swimming.
But… time to get back to work and I’m enjoying so far.
Thanks for tuning in to the Cash Kid Podcast! Be sure to share this episode with your friends, and don’t forget to subscribe so you never miss an episode.
Remember, anyone can be a Cash Kid, you just have to learn how to become one.
Cash Kid, Out!
Disclaimer: The information presented represents the views and opinions of the guest. This podcast does not intend to provide personal investment advice. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids. Definitely your parents first before investing.
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We’re all guilty of it!
What am I talking about?
Stay tuned!
Intro:
So, you got some cash, maybe from an allowance? Or, that money your grandma gave you for your seventh birthday.
Here ya go, sweetie! Woo hoo! Thanks, Grandma! Whatever it is, what are you gonna do with it? Spend it? Hide it away? Or maybe invest it? Let's start learning how to make that money grow. Time to learn how to be a Cash Kid.
Welcome back to the Cash Kid Podcast! I'm your host, the Cash Kid, and today we're diving into a topic that's super important for kids and teens - saving for big purchases.
Let’s be honest.
We’ve all been guilty of asking our parents for something we want. My six-year-old brother has figured out how to search up toys on Amazon to show my parents to try and convince them to buy him things.
My parents then showed him how to add things to a wish list, and that he has to wait until a birthday or has the money to buy it.
But, if we don’t want to wait until a birthday or Christmas for the chance we get what we want, how do we learn to save for things we kids and teens want to buy?
Whether you're aiming to buy a new gadget, that first car, a new lego set, Lululemon outfit, purse, or even start your own small business, learning how to manage your money wisely is key.
So let's get started!
First, let's talk about budgeting. Budgeting may sound boring, but it's the foundation of good money habits. A budget helps you keep track of your income and expenses so you can make sure you're saving enough to reach your goal.
**[Sound Effect: Cash Register Ding]**
Now, let’s say you get $20 a week from your allowance or a part-time job. If you spend all of it on snacks and video games, there won't be anything left for that big purchase you want. Instead, try the 50/30/20 rule.
Save 50% of your income, use 30% for needs like school supplies, and spend 20% on fun stuff.
Next, let's talk about earning money.
Saving is great, but if you want to reach your goal faster, finding ways to earn extra cash is a smart move.
Here are some ideas:
First, for teens, why not think about getting a part-time job. Many teens work part-time jobs after school or on weekends. It could be at a local store, a fast-food restaurant, or even babysitting. I saw several teens working at a local farmer’s market the other day. I thought that’s a great job for the summer for teens to make money and save for big purchases.
Second, what about tutoring? If you're good at a particular subject, consider tutoring younger students. It's a great way to earn money and help others at the same time. There are always parents on Facebook groups looking for tutors to help their kids with a subject they are struggling in, so lots of clients… and money.
And then of course for younger kids there’s the good ole lemonade stand and doing household chores. Be mature and ask to talk with your parents to set-up a chore list for you and how you can earn some money around the house or do things for neighbors. You’d be surprised how many are willing to pay kids to do small jobs here and there.
We’re actually working on season 3 of the Cash Kid Podcast already where we’re going to be interviewing lots of tweens and teens about ways they are using their skills to make money. We can’t wait to start releasing those episodes later this year!
**[Sound Effect: Coins Clinking]**
**Host:**
Now, let's move on to selling old items. Most of us have toys, clothes, or gadgets that we no longer use. Why not turn those items into cash? We have lots of large lego sets in our house that we’ve put together. My Mom gave us the idea recently to take those apart and resell them used to others. We looked it up, and it’s actually a thing.
Also maybe organize a garage sale, or sell old items online through platforms like eBay, Depop, or Facebook Marketplace. Not only will you declutter your space, but you'll also add to your savings goal for that big purchase.
Another important habit is setting clear savings goals. It's easier to save when you know exactly what you're saving for. Break down your goal into smaller, manageable milestones. For example, if you want to save $200 for a new bike, aim to save $50 each month for four months. This makes the goal less overwhelming and gives you a sense of achievement as you reach each milestone.
I use an app called Greenlight to help with my savings goals. I can always see how much I have in my savings account. When I get paid for a job or chores, I use the 50/30/20 rule we talked about earlier and know before the money even enters my account where it’s going.
Seeing your progress can be incredibly motivating and helps you stay on track.
**[Sound Effect: Checkmark]**
**Host:**
Let's not forget about the importance of needs versus wants.
We actually produced an episode on needs versus wants. It’s titled “Needs, Loves, Likes, Wants.”
Be sure to check it out. It’s one of our most popular episodes on the Cash Kid Podcast.
It's easy to get tempted by things you want to buy immediately, but it's important to prioritize your needs and long-term goals. Ask yourself, "Do I really need this, or can I save this money instead?" Delaying gratification is a powerful skill that will benefit you throughout your life.
**[Sound Effect: Thought Bubble Pop]**
Finally, let's talk about the power of compound interest. If you save and invest your money wisely, it can grow over time. Consider putting some of your savings in a high-yield savings account or investing in a beginner-friendly platform. Even small amounts can grow significantly over time.
So, let’s recap, here are the key points to help you save for big purchases:
1. Budget - Use the 50/30/20 rule to manage your income.
2. Earn Money - Find part-time jobs or ask talk with your parents about a chore list to earn money.
3. Sell Old Items- Clear out those old unused items into cash.
4. Set Goals - Break down your savings goal into smaller milestones.
5. Track Your Progress – Use an online app like Greenlight or keep a book to record your earnings and expenses.
6. Consider Needs vs. Wants - Prioritize long-term goals over immediate desires.
7. Compound Interest – Consider putting your money in a savings account that can grow for free and grow your money over time.
That's all for today's episode of the Cash Kid Podcast. I hope you found these tips helpful and are inspired to start saving for your big purchase. Remember, good money habits start early, and the skills you learn now will benefit you for a lifetime.
Don't forget to subscribe to the Cash Kid Podcast on whatever platform you are listing from. Leave us a review and follow us on Instagram, Facebook, and YouTube.
Remember anyone can be a Cash Kid, you just have to learn how to become one.
Cash Kid, out!
Disclaimer: The information presented represents the views and opinions of the guest. This podcast does not intend to provide personal investment advice. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids. Definitely your parents first before investing.
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Understanding Inflation: Why Your Money Buys Less Over Time
In this Cash Kid Podcast episode, the concept of inflation is explained in a simple way tailored for kids and teens. The episode covers how inflation affects purchasing power, increases the cost of goods, and impacts daily life and financial goals. Real-world historical examples, such as hyperinflation in 1920s Germany and the Great Inflation in 1970s USA, illustrate the effects of rising prices. Practical tips are provided to help young listeners manage their money, save, and invest wisely to mitigate the impact of inflation on their lives.
00:00 Introduction to Inflation
00:39 Why Inflation Matters
01:39 Historical Examples of Inflation
02:33 Causes of Inflation
03:09 Impact of Inflation on Families and Businesses
04:01 Inflation and Personal Finance for Teens
04:32 Tips to Handle Inflation
05:40 Conclusion and Final Thoughts
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My Mom is joining me on the show today?
Hello.
Welcome back Cash Kid audience! We are so excited every week to see our listener count grow and your involvement in the Cash Kid movement to build the savviest and most educated financial generation ever.
I get asked a lot about how people can be a part of the Cash Kid Podcast movement.
First, please follow us on one of our social channels at Instagram, Facebook or YouTube.
Just search Cash Kid Podcast and start following us. Interact with our content by sharing, liking or commenting.
Also, we’ve got merch!
Purchasing this merch directly helps us continue to produce this podcast and help market our efforts.
And, Join our mailing list.
No, we don’t send a lot of emails. Actually, just once a month, but this list is a great way to stay up to date on giveaways and a recap of what we covered on the podcast recently.
Alright, let’s jump into today’s discussion.
Price comparison shopping.
There are always ways parents can be involved in helping their kids learn about finances and I’ve had some instances over the last few months where my parents have stepped in to keep me or my siblings from making a quick purchase to stop and think about it and do some research before buying.
One instance is my dad took us fly fishing for the first time back in March.
I loved it!
And I came home and right away started filling up my cart with brand new fly fishing gear.
I wanted to go fly fishing again.
My mom, however, was like, “Why are you buying, new gear? Save your money and search trading sites and yard sales for used gear.
You’ll be able to spend half the money. You don’t need to buy new, especially at your age.”
I knew then I needed to think more about comparing prices and options before I spent my hard-earned money.
So, let’s talk about how to get the most bang for your buck!
(music interlude)
Now, how do you know if you've found the best deal?
First, you need to learn the skills of price comparison.
This means taking the time to research and compare prices of similar products from different retailers. We can easily do this at home online.
Many websites offer price comparison tools that allow you to easily compare prices from different retailers.
We use a Chrome extension called “PayPal Honey” that while we shop around online it will bring a pop-up telling us the price comparison difference of this same item across different stories.
Then when we go to check-out, it will try out various coupon codes to see if any will work with our purchase.
Another is Simplycodes. It’s an app and an extension online to pull up coupon codes and deals.
Let’s give a real world example.
Let’s say we’re shopping for a new GoTrax Electric Scooter.
Let’s first search on Google.
You’ll see right away various options from different stores.
Our honey and simply codes widgets show up to the side and will tell us what the price difference is between some stores and Honey will actually tell us the price history of this item over time.
So, don’t just settle for the first price you see.
Another example is this past week my little brother wanted to buy a new snow cone machine. We found one we wanted on Amazon for real cheap. But when we went to check out, the shipping was almost the same price as the item. I then searched around and found….
Cash Kid: Now, I’m going to bring my Mom into this conversation to share a few of her thoughts on price comparison.
Welcome to the show, Mom.
Mom: Thanks for having me.
Cash Kid: What are some skills you were taught or learned around price comparison?
Mom: Well, I come from a long line of very frugal women in my life. Until probably my 30s I had what I termed, “Full Price Phobia” which meant I would literally go without something I needed just because I wasn’t willing to pay full price. I’ve grown out of that over the last ten years and we’ll talk more about that later.
I can remember though my Mom taking me grocery shopping and it felt like it took forever as we took our time searching through coupons my Mom had clipped to only get those items that were on sale and we had to have a coupon.
My grandmother was one of those people who was savvy enough to use coupons and watch sales to go to check out and the store would owe her money. I remember seeing the receipts, it was pretty impressive.
Using coupons grocery shopping like that isn’t as big of a thing anymore so it’s been a shift to buying store brand items to save or buying things when it’s buy one get one free and stocking up.
You like to do that with gum. The Cash Kid loves gum and if our Publix has it buy one get one free, he asks me to stock up.
Buying in bulk at places like Costco and Sam’s Club is a way to save with a lot of house hold items. I’ve done the price comparison on several items of buying a snack we like in bulk at Costco vs. buying several boxes of the same item at a regular grocery store and it’s usually cheaper to buy in bulk.
(when inflation hit hard; I took my grocery list and did a price comparison from a few grocery stores to see the difference and where we could save on staple items the most.)
Cash Kid: You talk sometimes about whether it’s worth the time to save money? What do you mean by that?
Mom: Well, before the internet, if you wanted to price compare, you had to drive around from store to store, which took up a lot of time. But today, we can easily do a lot of price comparison shopping online, especially for large items.
But sometimes, there’s what’s called a matter of convenience and factoring in your time. A small example is it’s summer time and we love watermelon in our house. I mean, we’ve even educated ourselves on how to pick out the best watermelons at the store to make sure it’s really ripe and going to be sweet.
Last week, we made a last-minute decision that we wanted to get one to take to my parents house to have with dinner. To get one was $10 at our local farmer’s market. Now, I knew, watermelons at Costco were only $6.99. I had been in the store a few days earlier and saw the price but didn’t grab one at the time. But now, it pulled on my frugal instincts, uhhh… three dollars.
But, in no way would it have been worth our time to spend the extra 25 minutes it would have taken to run to Costco to save three bucks than just get the perfectly good one at a store on the road to where we were going. That happens sometimes where I’ve got a long list of items I need from one store but maybe only a couple of items from another store where I know it’s cheaper but depending on the price (and dragging three kids to another store) it’s better to just get all from one place.
Now parents debate these things with every purchase. We work hard for our money and we want to stretch those dollars as much as we can.
Cash Kid: Is the quality of an item ever a factor is price comparison shopping?
Mom: Oh yes. And this is something where I know kids don’t like to ask for their parents input sometimes on things they want to purchase, but you need to get their advice.
Especially on a large item.
This also comes honestly with experience. It’s important to learn how to be a smart and conscious buyer.
Do your research first. If it sounds too good to be true, it probably is.
I stated earlier how I used to say I have full price phobia. I would buy the cheaper quality item. But, over time I realized if I would focus on buying more quality items, especially staple items like good shoes for instance, it would last me longer and a wise choice.
Sometimes a lower price may seem appealing, but if the quality is poor, you'll end up spending more in the long run. So always make sure to check reviews and do your research before making a purchase.
Now, that doesn’t mean I still don’t try to shop for a deal on quality items. That’s where your tips come in from earlier of shopping around online, and using coupon sites.
When there’s a holiday, it’s usually a good time to get a deal on an item that’s usually not on sale.
Cash Kid: Thanks Mom, I know you could talk about this for a long time, as I get a lot of input from both my parents on purchasing decisions.
Mom: I felt some sarcasm there.
Cash Kid: Nope, just a little normal teenage eye roll.
So let’s recap some tips here:
Don’t settle for the first price you see. Dont’ rush into a purchase. Do your research and pull up various store sites to compare prices. Search for coupon codes and deals. Check out places like simplycodes.com or the PayPal Honey app. Consider buying used. Check Facebook local trading sites or Ebay. Sometimes buying in bulk is a better deal for families. Consider your time in spending extra time to get the best deal. And try to buy good quality items.We especially want kids to learn these skills early on in life. It's never too early to start learning how to stretch your money and make smart purchasing decisions.
What tips do you have for price comparison shopping? We’ve love for you to share that with us by emailing [email protected].
Remember, anyone can be a Cash Kid, you just have to learn how to become one.
Cash Kid, Out!
Disclaimer: The information presented represents the views and opinions of the guest. This podcast does not intend to provide personal investment advice. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids. Definitely your parents first before investing.
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If we're going to be money-savvy kids, we must know how to watch out for scams and frauds that will cause us to lose our hard-earned money.
In this episode of the Cash Kid Podcast, we explore the importance of investment protection and scam prevention with Amanda Senn, the director of the Alabama Securities Commission. Learn about the role of the Securities Commission, real-world examples of its impact on preventing fraud, and how technology affects financial safety. Discover actionable tips on how to safeguard personal information, the significance of financial literacy, and the new financial education requirements for high school students. This informative episode aims to educate kids and adults alike on the essentials of financial protection and literacy.
Episode:
So, you got some cash, maybe from an allowance? Or, that money your grandma gave you for your seventh birthday.
Here ya go, sweetie! Woo hoo! Thanks, Grandma! Whatever it is, what are you gonna do with it? Spend it? Hide it away? Or maybe invest it? Let's start learning how to make that money grow. Time to learn how to be a Cash Kid.
Millions of dollars lost to fraudsters.
Scams across the states.
The elderly and kids are big targets.
Who is working to protect our investments?
And how can kids my age help stop these scams?
Plus, taking a financial course is now a graduation requirement in my state.
Yep.
We’ve got it all covered in this episode of the Cash Kid Podcast where we went on the road to talk with The Alabama Director of the Securities Commmission, Amanda Senn.
I personally, had no idea what this department in our state was doing for us everyday.
How there are people behind the scenes working to make sure only legitimate business is being conducted and stop fraudsters so we can protect our hard earned money.
If you aren’t already, be sure to follow us on social media @cashkidpodcast. Visit our website at cashkidpodcast.com and join our mailing list.
Please, please, leave a review from whatever platform you are listening from and help us spread and grow the Cash Kid mission.
Alright, we traveled to Montgomery, Alabama to conduct this interview with Ms. Senn. So let’s jump right into it!
Cash Kid: Welcome to the show Ms. Senn. And first off, tell us a little bit about yourself.
Amanda Senn: Thank you, Cash Kid. I'm glad to be here. My name is Amanda Senn, and I've been with the Alabama Securities Commission for almost 16 years. Interesting fact, I started as an intern and worked my way up, became general counsel, deputy director enforcement and then last year, succeeded at the long time director,Joe Borg, as the director of this agency.
Cash Kid: Yep, that's really interesting. So, what is a securities commission and why do we need it?
Amanda Senn: So, a security is more than just a stock, a bond, a debenture. There are a laundry list of things that are covered, but it's essentially anything with a view toward an investment. So, you don't actually have to have a writing.
But, our agency enforces laws that, um, directly impact. People who sell securities and Those products that are considered securities. We also serve as a resource to our financial industry in the state. Oftentimes some of the smaller businesses don't always have the tremendous amount of resources that the larger firms have.
So we're in a unique position to be able to collect information from across the United States and provide it to our industry folks to let them know what's going on and hopefully keep them apprised of all the trends that are coming out in the financial industry. So can you explain how you advocate for investor protections?
Why do, why do we need this protection? Just to be clear, there are two securities regulatory bodies, the Federal Securities Exchange Commission and then the State Securities Commissions. The State Securities Commission, our office here, does have some dual oversight with the federal government, but we are exclusively responsible for certain investment advisor And we retain, um, fraud authority so we can prosecute any cases where we have some crook that comes into our state.
Because I'm certain none of our Alabama residents are crooks. They come into our state and, um, and represent, um, That, you know, we have this typically what we'll see. So we have this great investment opportunity and, um, it's going to grow jobs in the state and we need investor capital and I'll put it with my, um, you know, business model and my plan and we'll help grow this industry.
What happens in a criminal case is they take the money and they don't do what they told the investor they would do with it. They instead funnel it into personal expenses. Sometimes these crooks buy houses, cars, diamond rings for their girlfriends. It's not always a guy though. Sometimes we have female crooks, but they will just take money and, and steal it.
So. Um, so investor protection, and I circle back to your question, we make sure that the people that raise money in this state are those that are trustworthy, honest, that they do what they're going to say, what they represent to investors that they'll do with the money. They don't have criminal backgrounds where they would be inclined to steal money again.
And we also educate the public about financial frauds. Since we receive reports from financial institutions across the state, and members of the public, we're in a unique position to be able to see all the types of scams and frauds that are out there. And so we go into the communities and share this with people.
We tell them, Hey, look, we've seen this scam. It's an IRS scam or that text message that you're getting regularly. It's not real. So we get out and we share what we see with the community and we serve as a resource to all residents, even across the United States. We have people calling and asking questions about different things.
Cash Kid: Yeah, that's really interesting and, uh, it's definitely helpful for the listeners here watching, so thank you for that. And, um, what are some real world examples you can share of the impact your work has on everyday citizens?
Amanda Senn: In 2016, our legislature, um, we worked with them to pass a law that required our financial institutions to report suspected scams and financial exploitation because we were seeing millions of dollars being lost to fraudsters.
And many of them were overseas on behalf of our seniors. So we would notice, you know, people filing reports for, um, 70 year old miss Jones, who had recently been widowed and some crook, you know, wormed his way into her life and convinced her that she needed to. Invest money in his project, or she might run out of money to live out her golden days.
We started seeing reports like that. The financial institutions wanted to partner with us. They wanted to report this, but there were certain privacy laws that they were concerned about. And so now we gave them a law, a mechanism to report. So, we get the reports in from across the state and we're able to immediately pick up the phone and help a lot of these victims and clients of, um, financial institutions to know that they don't need to send money overseas or they don't need to respond to this, that it's a scam.
So, just by way of example, this Friday before Memorial Day, At three o'clock this afternoon, that afternoon, I received a call from a resident in a western, western part of the state of Alabama. And she said, my father is continuing to give money over. I know it's a scam. It's a title, um, title car issue. And I've seen this before.
And I said, yes, there is a title scam going around the state. We've got reports. And so we were able to, Contact her father, 91 years old, and tell him that this is just a scam. Don't send money. So being able to have that knowledge from our industry to help directly help residents before and the members of the public before they send money over And to prevent them from losing money to fraud is hugely impactful.
So that's, you know, one of the areas where we can act immediately. Um, and we can also act pretty quickly on criminal cases, so if we know that fraudsters are in the process of transferring You know, hundreds of thousands, sometimes millions of dollars. We have legal processes in place to freeze that money sometimes and get it back into the hands of the honest investors that, you know, just trusted someone to be able to prosper parts of the state or a business around here.
Cash Kid: Right. That, uh, it's really cool how you've been able to help save people from losing money. Thanks, Cashkid. You're welcome. Um, how has the speed and spread of technology, especially with young people having more access, affect the work of the Securities Commission?
Amanda Senn: I'm so glad you asked about this because this is where I think you and your listeners can really help us out.
Technology moves faster than any law enforcement agency or regulatory body can move. There's so much that kids have access to through cell phones and internet. Um, I know, you know, social media is a big area and while You're not technically old enough to open an investment account. A lot of kids we've seen will share personal information online.
So we encourage kids to be careful about sharing personal information because once a fraudster can get that, even if it's yours, they can sometimes access your parents accounts. Family members accounts, cell phone numbers. So I tell folks, don't, you know, don't share your personal information online. And then for you guys, because you're pretty tech savvy and I wasn't raised with a cell phone and the internet did not come out, um, until I was older, but we, In our office, I've discussed a program where kids can help their parents and grandparents.
And I know there are some really tech savvy grandparents out there. I've met them. They've shown me privacy settings on my phone that I wasn't aware of. I try to stay on top of that. But, y'all help your parents and grandparents get those privacy settings taken care of. Because so often we receive phone calls from seniors in the state and they, The fraud could have been prevented if they just turned one control on or allowed only contacts in their phone to be callers.
They didn't realize they could block certain scam calls. And so a lot of that can be avoided. And, you know, I encourage your listeners to help us with that. There are opportunities for you guys. To go ahead and expose yourself to concepts like savings and investings, um, speaking of technology in, um, a pretty safe environment.
So I think green light, I don't, I'm not endorsing, yeah, any particular application, but I know. We've received good information about that company. Uh, and so I always encourage everyone to become familiar with the principles of investing and saving and understanding the different types of checking accounts and savings accounts.
And what, you know, what's a mutual fund, what's a money market account, because as you get older, those principles will. Help you understand that certain things are not real and it'll give you context for what's legit and what's not and there's so many cases in that we see in our office that if the individuals had the experience of being able to Understand savings and investing concepts they would have known that this guy was just a fraudster And it could have helped prevent a lot of fraud And we see it also in other areas where, you know, they may not have had exposure because of parents.
They didn't teach them savings and investing principles, or if they understood that it could help break a cycle of poverty too. So there are lots of reasons to do that. So I know that's your mission. And I just want to emphasize and echo that exposing yourself to these principles and The activity of saving and investing and understanding all the principles that go along with finance at a young age will pay dividends.
And I'm here to tell you because we see what happens when kids don't understand.
Cash Kid: Um, so what are dangers that us kids should be aware of when maybe it comes to a scam or threats?
Amanda Senn: We see, Kids that will fall victim to fake websites. I know I had a phone call a few weeks ago with somebody tried to buy a purse and it looked a little too good to be true.
And it turns out the website was fraudulent, but it's so hard to tell because it was so beautifully designed and it had all the features of a legitimate website. But what I told her, I said, you need to Google the name of the company before you. Begin transacting business or buy anything because oftentimes it won't even come up as a legit company.
So do your homework because once your personal information is out there, like I said, even if you don't have a lot of assets at this point in your life saved up, they can sometimes use your information to get into your parents or grandparents accounts as well. So kids need to be more vigilant online, especially since you're spending a lot more time online.
you know, your parents did when they were growing up and be careful on apps as well. We had an initiative, um, and I hope to get our interns back on it this summer, but we started investigating fraudulent apps as well. So we gave all of them cell phones and we picked up dozens and dozens of fraudulent apps.
So always be careful and make sure that the. The app that you're using is, you know, verified. I know your office promotes financial literacy to all citizens and students in Alabama.
Cash Kid: What are some ways your office promotes financial literacy? And do you feel we could have more financial literacy offered in our schools?
Yes, absolutely. And our legislature and our governor felt the same. So two years ago, we passed the Financial Literacy Act. And I brought a copy here. It's just a piece of legislation. And it became effective this year. So For students going into high school, they are now required, because for a long time, there was, there were no requirements.
You know, we took economics on and shop and things like that, but now it's mandatory. And, um, so, in high school, they'll need to learn principles like balancing a checking account, evaluating types of loans. What is an insurance policy? The different types of insurance policies, understanding percentages as it relates to taxation, savings and investing in simple contracts.
So we're so thankful that our, our legislature, you know, enacted this and our governor signed off on it. So we'll have a mandatory one credit hour. And, and even if it's just one, we hope that it'll inspire students to go out and learn more. Um, so our office does provide, I mentioned the community outreach events.
We have events that focus on Um, you know, kids saving and investing. And we go through basic principles and we have programs for, um, women. Sometimes we, women find themselves that they're living alone, raising children. Um, they didn't always feel as confident. Studies showed as men in. Saving and investing in finance.
And so we wanted women to have financial confidence moving forward. So we have a program for them. We have them for college students as they're considering going out into the workforce, um, and taking out student loans. And so. We, you know, have programs designed for different groups across the state, and we're always happy to put together something if some of your listeners would like a financial education program or a fraud prevention program, we can put those together, too.
So we're just here to serve the public, and we want everybody to be financially savvy, and this is why you're so important. I'm so glad that you're taking an interest in this because Half of our caseload or more would go away if people had the knowledge and information that we've been exposed to here.
Cash Kid: Um, what are your thoughts on the Cash Kid Podcast and the mission we are on to educate the next generation to be the savviest and educated financially?
Amanda Senn: I think Cash Kid Podcast is number one. And I'm just thrilled that you're out here creating awareness about these issues and they're so important.
Especially now in our country is facing trillions of dollars of debt, inflation. You couldn't be more timely and I was so excited to hear that you were offering this podcast and, um, I know my colleagues and I, we just don't have time to read anymore. So we listened to podcast and I've pulled most of the important information that has served me well in this organization from a podcast.
So what do I think, what do I give cash kid? An A plus for sure. And so, um, because Knowledge is power. I don't sound cliche, but the more, you know, the more you understand and the more successful you can be in life. And, and I just want to tell people, look, if you guys would not go out and buy this crazy purse or video game or whatever and save your money, you could see that putting it in a savings account, especially right now that could earn more interest in You could grow this and eventually not have to worry about how you'll make a down payment on a house.
And I know you say, Oh gosh, I'm so young right now. It's just seems like such a distant future, but it will come up faster than, you know, and you'll be so thankful that you have a savings account, you know, and you able, you're able to take this money and make it work for you.
Cash Kid: Just so you guys know that was not scripted.
Amanda Senn: Yes. Don't go like that. Not at all.
Cash Kid: So is there anything we haven't asked you that you'd like to share with our audience?
Amanda Senn: I feel like I've rambled on and on, but it just bears repeating always to encourage your listeners. Please, please, please, please, please do all they can to understand the principles of finance, savings and investing, how to recognize fraud, because if we can get this generation coming up to be financially savvy, I mean, our entire world may change. We may fix the inflation problem. You guys could have the person that will solve our nation's economic issues. You just don't know who will come up out of this bunch and, and be able to, to turn the country around in terms of, um, you know, the amount of spending that's going on and the weird things that are happening in our markets.
So anything else I'd like to add that the Alabama Securities Commission is available. We take calls from across the United States, not just Alabamians, but, um, I get calls from all over to ask about a company here or, um, just generally about a type of fraud that we see nationally. Our office is serving as the enforcement chair for a national association right now.
So we are working with other states, Canada and Mexico, on several. like multi jurisdictional frauds. Cryptocurrency has been a big push. I know we didn't talk about that, but we have episodes on that. Yeah, cryptocurrency. We have several cases right now open on companies and so that'll be an interesting, um, you know, next chapter in the financial world.
Cash Kid: Yeah. Ms. Senn, we appreciate your time and expertise. Thank you for joining us on the CashKid podcast and boosting the financial knowledge of fellow CashKids everywhere. Remember. Anyone can be a cash kid, just have to learn how to become one. Cash Kid, out.
Disclaimer: The information presented represents the views and opinions of the guest. This podcast does not intend to provide personal investment advice. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids.
Definitely your parents first before investing.
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Overcoming Roadblocks to Teaching Kids Financial Lessons
Intro:
So, you got some cash, maybe from an allowance? Or, that money your grandma gave you for your seventh birthday.
Here ya go, sweetie! Woo hoo! Thanks, Grandma! Whatever it is, what are you gonna do with it? Spend it? Hide it away? Or maybe invest it? Let's start learning how to make that money grow. Time to learn how to be a Cash Kid.
What's up Cash Kids and here's a fun fact for y'all. Did you know that 57% of parents have some reluctance to discuss money matters with their kids? And 50% of America's youth will learn less than their parents? That doesn't sound right. So, joining us today is the financial "dadvisor", Anthony Delauney.
Mr. Delauney is a certified family financial planner, and a behavioral financial advisor, and the author of the award-winning "Owning the Dash" children's book series. He's joining us today to talk about some of these roadblocks to teaching kids financial lessons today and how a more cashless society can be a challenging way to make money tangible for kids.
Plus, we'll discuss his book series and stay tuned to the end for a free giveaway.
Welcome to the show, Mr. Delauney, and first off, tell us a little bit about yourself.
Anthony Delauney: Thank you so much for having me. Um, so I have been a financial planner for the past 21 years. I started it right out of college, and I discovered pretty early on that I loved helping families.
Since I started, I got married, had children, bought my first home, bought another home, went through all those fun stages, and realized that, um, it's hard enough to figure out stuff on your own, but when you've got to figure it out as a family, it gets really crazy. And when it comes to talking to your kids about it, it gets even crazier.
Cash Kid: Mr. Delauney, we started to talk about how 57% of parents are reluctant to discuss money matters with their kids. Why do you think this is the case?
Anthony Delauney: The simplest answer I can give you is, I have spoken in front of adults, uh, for some time, for 20 plus years, and I am more nervous about this interview speaking to a child than I am speaking to adults. And I think that part of the reason that it's so hard for a lot of kids to learn about these things is because parents don't know what to say or afraid of what to say. And sometimes we're intimidated around even having the conversation. They don't want to mess up for their kids.
Cash Kid: That's a great point. Why is it crucial that financial planning be a family affair?
Anthony Delauney: It's important because the sooner we start talking about these lessons and kind of getting the real basics of how life works, investing and all that stuff is really important, but really understanding how a budget works, understanding how money works, understanding how to live life on your own, the sooner we can start instilling those lessons and teaching them, just like brushing your teeth.
As soon as you start to learn that, it becomes a habit, it becomes a ritual, and you become, it's part of your life. If we don't teach those lessons early enough, it becomes much harder to learn them later in life. And, once kids are on their own, it's, it's, we don't have as much involvement in the lessons that they learn.
Cash Kid:: Totally agree with that. And so, what tips do you give parents to start the conversation with their children around money?
Anthony Delauney: Sure. So, I think the most important part is, just like this conversation today, You are, you're the cash kid, but you have an intrigue. You have a desire to learn. And most children do have that desire.
Even as very young children, kids want to play grownup and want to do the different activities that they mimic their parents, the good and the bad parts of what their parents do. So, um, if we can, when it comes to talking to our children, treat them like many adults, treat, treat them, like respect them.
Okay. not judge them. I think that's the biggest part is when it comes to having these discussions, we want to be there for them. Let them know that they can they're in a safe environment where they can talk about things where they can ask questions where they can fail. But if they do fail, parents have to be really mindful of how they react because the kids are not only focusing on the lesson being learned, but how are my friends, my family and others treating me?
Based on my response and my questions and my, you know, my mistakes.
Cash Kid: I totally agree with that statement. So do you have any financial lessons to teach elementary or teenage children?
Anthony Delauney: So I've had for, as I mentioned, being an advisor for 20 years, for families, I get the question a lot. How and when do I start talking to my kids about these various topics?
And one thing I've noticed as a parent and as a, an advisor is that sometimes when we try to tell our kids what to do, they might do it, and they might do the exact opposite. Uh, and a lot of times, children tend to learn through experiences, and through storytelling, and through, uh, seeing something being done that's not just mom and dad telling me what to do.
Uh, so, I came up with the idea of writing children's picture books that each were stories, uh, that children could relate to, that children could see a scenario that they could be in, And have those stories actually teach a basic lesson. Um, so I think we learned a lot better from trying to experience life through a scenario versus having somebody tell you what the scenario might be.
Cash Kid: Yep, definitely. So, uh, in one of the books behind me, it kind of goes through as like a. Storytelling motion or way to help me like and other just readers really relate to the story And so I definitely see how that's a good teaching skill or factor that you can use in your books So what activities do you instill with your two kids to teach important financial lessons?
Anthony Delauney: So my kids are now 12 and 14 years old. So they're, they're at a different stage where high school is starting to come in. And one thing I've learned as a parent is that if you don't have the financial conversations with your children on how to use money and how to even use credit cards and things like that.
They'll be put in situations through school or through other activities where they're going to be forced to make those kinds of decisions. Uh, my daughter recently had to go on a trip where she was by herself. Her parents weren't there. And she, while she was on that trip, um, out of state, she needed to buy food and do things of that nature at the location where they were.
And if we had not discussed how these money tools work, it would have been a much harder scenario for her. And so she went into it with more confidence versus. So, uh, I think that kind of from a very, very early age when we're talking about lessons and activities, bring your kids into your life, even, even if it might be a little troublesome.
Um, if you do things with them that you have to do as part of normal life, go into the grocery store. Uh, and kind of going through all the things that you buy. And even though there might be some negotiating that takes place at the grocery store, you can talk about why, uh, and you know, why are we purchasing this?
How much do we have to spend on this? I think a lot of things that goes on with parents too, is that they're, they don't know if it's okay to talk to their kids about. Because they feel that when they grew up, their parents didn't talk to them about it. But now we're in a society where it's a little more okay to talk about things, we just don't want to mess it up.
So, going through those basic things like, um, uh, going out to the grocery store or even sitting at the dinner table and having a fun game where we talk about, What are the things that might be on the family budget? I know the word budget sounds kind of boring, and even adults don't like the word. But if you talk about, if you reword it and say, what are the fun things, or what kind of things do you think we spend money on as a household?
And let's make it a game, where one person at the table names something, and someone else, and someone else. Kids and adults both love to play games. And the more we can kind of get involved and make something fun out of it, the easier it is to have those conversations.
Cash Kid: Yep, I was probably playing a game during school today.
Uh, so I mean, it's just so much fun. Um, so let's talk about our move to a more and more cashless society. How can this a movement affect kids my age and making money tangible when we never even see it? What problems can this create?
Anthony Delauney: So one of the things I've learned one of the biggest things I've learned as a planner for adults is that um we tend to do not recognize the, we focus on kind of the things we can see and we don't focus on the things that we can't see and going back to your point that we've become a cashless society.
We can't see money anymore. We don't see ourselves handing dollar bills, uh, at the gas station when we're buying candy or something like that. So it does become an environment where, because we can't see it, we're not aware of the emotion that's tied to it. And even when it comes to all those things that you hear about when, with investing and things like that, the key lesson that I think really parents really need to focus on is Money and emotion are tied together, but they're opposites of each other.
Usually when you're making a decision based on emotion, it's not going to work out the way you want it to. And that applies to everything in life. If you look at fitness as an example. If you're emotional, you're probably not going to eat the thing that you know you're supposed to eat. Or you're probably not going to get the proper sleep or whatever it might be.
If you're stressed, if you're anxious. So, those kind of basic foundational lessons of trying to teach children how to be aware of their emotions in scenarios is really critical. It doesn't always have to be involving money, but if they're, if you're trying to help children be mindful of their mindset and how they're thinking, and if emotion is driving their decision making.
Then once they do have to start making decisions with money, they'll be aware of it. And that's one of the key focuses of the kids books, that I really try to give scenarios where emotion kicks in and children have to make decisions based on those emotional scenarios. Emotion does play a big factor in everything in life.
Cash Kid: So tell us about your book series, Owning the Dash. What does Owning the Dash mean?
Anthony Delauney: So owning the dash was originally, um, it's a little bit of a sad story. Um, many years ago, well, back in 2015, I had a cousin who was very famous in the fitness world. Um, his name was Greg Plitt. Uh, and Greg was on the cover of over 250 fitness magazines.
He was really strong. He, he looked at his body and he looked at mine. You would think we're not cousins because we don't look anything. You know, we didn't look anything like, uh, but he, even before podcasts and blogging were really a thing would. He had fans that would email him questions on life and fitness, and he would answer those questions.
And unfortunately, Greg passed away in 2015 unexpectedly. And as a way of trying to remember him, um, I would watch his videos and I realized that his philosophies as they relate to fitness could also apply to finance. Just like I was using the diet example before, uh, or the stress in eating and things like that.
Uh, a lot of these things in life, whether, when it comes to decision making, they affect all types of decisions. Finance, health, uh, just social affairs, all that kind of stuff. So, long story short, is, um, is a way of remembering my cousin after I would watch his videos, and I noticed that a lot of his philosophies were the same, so I decided to write a book about it.
And one of his philosophies is actually on death, and the idea of owning the dash, where owning the dash stands for on your tombstone, between your birth and your death dates. The dash in between and taking ownership of your life from a kid, you know, becoming the cash kid at a very young age to helping people out for the rest of your life.
Cash Kid: So, um, owning the dash is a book series. And so just talk about the books that you've created.
Anthony Delauney: Sure. So I originally wrote a self help book for young families with just kind of, uh, that's kind of one of the hardest stages is when you're starting off, not knowing where to go or where to get advice from.
So I wanted to give my. My best practice advice, uh, using the subject matter that a lot of young individuals understand, which is fitness. So fitness and finance brought together, tried to bring those worlds so, so people can understand. While I was writing my second self help book, my daughter, who at the time was about 12 years old, uh, would, uh, come down and write next to me.
And we decided to write a children's picture book where they taught a basic financial lesson. And that turned into “Dash and Nikki and the Jelly Bean Game.” And that book was basically about trying to understand concepts like delayed gratification, patience, compassion, all sorts of fun things that once again, the book hadn't, that didn't mention money at all.
It actually used jelly beans as a form of currency. Uh, but it highlighted emotions and scenarios that once you bring money into the picture, parents, kids will be able to better understand how they were feeling in that, in that other scenario. So yes, the “Dash and Nicky and the Jelly Bean Game” received a lot of high praise and won some awards.
So why not, why not try to build on this? And, uh, we're now up to five books and a book number six will be coming out later this year.
Cash Kid: Well, I will definitely be looking forward to buying it. Um, so what's your goal with this book series and how has the reception been to them for them so far?
Anthony Delauney: Sure. So a lot of times when we see financial books, just like the books I see behind you right now, um, they're really targeted at young adults or adults of varying ages and possibly maybe, you know, college age kids.
There's not a lot of focus on very young individuals. And going back to the comment I made before, learn getting those foundational lessons in at a very early age, ages seven and under. Sure. If we can learn them that early, when we're willing to absorb the information, it's a lot easier than trying to learn or re learn things later in life.
So, um, uh, yes, the thought process is if we can start introducing these concepts in schools, And in the in homes as well, but in environments where kids feel safe and they, they trust the information, where the information is coming from. Uh, if we can do that in those elementary years, it just makes life so much easier down the road.
Cash Kid: Yep. And that's one of the things we're pushing for, just financial education in the school system. So that way more kids can be introduced to it. It's just definitely something that should be pushed more. And that's one of the goals here. So, I hear you may have a free giveaway for our audience.
Anthony Delauney: Yes, I'm happy to, uh, my most recent book came out, which actually involved the what I would consider the most significant roadblock or thing that gets that prevents people from achieving financial success.
And it may sound odd, but fear of judgment is probably the number one thing that prevents people from achieving or even working toward their goals. So the book is called “Akash and Mila and the Big Jump.” And I would be more than happy to send out a copy to, to your listeners.
Cash Kid: Mr. Delauney. Thank you for that special offer for our audience.
So if you want the chance to win one free copy of his newest book, Akash, Amila, and the big jump, be sure to comment dash and send us an DM on our Instagram @cashkidpodcast. Please visit our website www.cashkidpodcast.com to get information on how to contact and follow Mr. Delauney. Thank you for joining us on the Cash Kid podcast and boosting the financial knowledge of fellow Cash Kids everywhere.
Cash Kid, out!
Mr. Anthony Delauney: CPA
https://www.ameripriseadvisors.com/anthony.c.delauney/
Owning the Dash Book Series:
https://owningthedash.com/
Instagram:
anthony.delauney
Disclaimer:
The information presented represents the views and opinions of the guest. This podcast does not intend to provide personal investment advice. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids, definitely your parents first before investing.
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A one-time expense vs an ongoing cost. Do you know the difference? In this financial podcast episode with the Cash Kid, he'll explain why understanding this concept can help us achieve financial freedom and independence earlier in life. This is a way to help the next generation by building wealth instead of debt. Plus, a new segment on the show called "Stock Talk!" Listen in as the Cash Kid helps shape our financial mindset to think before we buy.
Want to learn more about the Cash Kid? Visit our website and join our mailing list at: www.cashkidpodcast.com
Also, check out our Cash Kid Merch store!
TranscriptIntro:
So, you got some cash, maybe from an allowance? Or, that money your grandma gave you for your seventh birthday.
Here ya go, sweetie! Woo hoo! Thanks, Grandma! Whatever it is, what are you gonna do with it? Spend it? Hide it away? Or maybe invest it? Let's start learning how to make that money grow. Time to learn how to be a Cash Kid.
Welcome back to season two of the Cash Kid Podcast.
Last episode we celebrated our one year anniversary mark and now we are charging forward with more topics and skills to learn and teach.
If you aren’t already, please be sure to follow us today on Instagram and Facebook @cashkidpodcast. Also, head to our website and be added to our mailing list.
This is a great way to be a part of the Cash Kid movement to empowering the next generation to build super financial skills at a younger age.
This week, our episode is “The Cost of a Puppy.”
We’re not going to just talk about puppies…
even though, that would be cute and fun.
Our focus is discussing the difference between a one time purchase and an on-going purchase.
Do you know the difference?
Many times as kids, because we don’t pay the bills, we might not understand this concept and have to be enlightened by an adult of the difference. But, knowing what’s a one time purchase vs. an on-going purchase is a concept we need to understand, especially before we find ourselves in debt and having to sell back the thing we purchased.
Yep, it happens.
So, let’s talk about it.
What’s considered a one time purchase?
A car or a video game?
A bike or a cellphone?
A puppy or a remote control car?
Let’s start with a bike vs. a cellphone.
Before I knew better, I used to think you just purchased a phone and that was it. But then my parents talked to be about how a cellphone is not a one time purchase.
In fact, just this past week, my nine-year old brother saw this ad where you could purchase an iPhone 14 for just $5.99.
He was like, “See Mom, I can afford that?” My Mom then explained to him to look at the fine print.
Yeah, it’s that much smaller writing under the large discount price in bold that states it’s $5.99 a month for the next 36 months under a contract with that cellphone carrier .
Then Mom explained how you’ll also need a cell plan to go with that which can cost upwards of $30 dollars or more per month.
See a cellphone, while to a kid it just seems like an object you buy once and that’s it, is actually an on-going monthly expense… usually for your parents at this age.
My brother’s not getting a phone…
Now a bike on th other hand, it’s a one-time purchase.
Except for the time I wrecked mine and we had to spend a little extra to get it fixed.
But asking your parents for a bike is different. There may be some repair costs at times. Like a new tire or brake, but it doesn’t have an ongoing expense like a cellphone.
We’re going to talk about that puppy and the debate in our house over having one, coming up. More purchase comparisons on the way.
(Music interlude)
It’s time for a new segment on the show called “Stock Talk.” If you follow us on social media, you’ll see I like to talk about stocks.
Following different companies stock prices, what’s going on in the news about their company, and seeing the prices rise and fall excites me.
I’ve found more and more of my peers asking me about the stocks I’m interested in. Why I’m invested in them? And how do I invest?
Now, I’m not an advisor, but I’m trying to teach my friends and our audience how you can research companies and stock yourself.
So, each episode I’ll hit on a stock either I’m watching or researching and why.
This week, since we just finished talking about a cellphone, let’s look at Apple.
Apple became a publicly traded company on December 12th, 1980.
Their stock price started at $22.00 per share.
Apple’s stock has split five times since it went public. This increases the number of shares in a company and makes the price per share at a more affordable cost for investors.
To purchase a share today would cost you $173.
If you had purchased a share of Apple just three years ago at the price of $131 dollars, you’d be up $52 dollars at this point.
And here’s your disclaimer.
Keep in mind any of the stocks I talk about are not recommendations. This is for educational purposes only to see how easy it is to look at a company, analyze where it started, and where’s it’s going to learn how to invest wisely.
Hey, Warren Buffett researched companies first. That’s how he got started.
So, I’m following suit.
Do your research, and seek advice.
Let’s educate, research, and invest Cash Kids.
That’s your “stock talk” for this week.
(Music interlude)
Alright, let’s talk about that puppy.
So many kids want a pet of some sort, usually a dog or a cat. But when you see an ad for “free puppies” just know that’s not true.
Kids don’t realize it but a puppy is a huge on-going expense.
My parents got a dog right after that got married and let’s just say, this dog racked up some expenses for my parents.
As a lab mix puppy he chewed through my parents deck so bad they had to tear it down.
Then he torn the hose pipe off the back of the house and my parents came home to a flooded backyard.
He chewed through the lines on the air conditioner at a friends house.
He only lived 7 years and it took 7 more years before my Mom would even consider the chance of getting another pet.
It was a debate for sure as my Mom knew, a dog could be a big expense.
My mom said we had to have a calm pet the next time around and we found the perfect one in Emma.
Another little pound puppy mix female puppy that is such a chill dog, she rarely even barks.
But even a chill dog still requires ongoing expenses like vet bills to stay up to date on shots, food, heartwarm and tick flea preventative medicines, and having to pay to board her when we go out of town and can’t bring her.
My parents have told me stories of how friends of theirs in college would get a pet only to realize a few months later they didn’t think through the expense of having a pet and had to either give it away… or have their parents take the pet in.
We were prepared for the expense in our house and the love of our dog is worth the expense for sure.
But, kids, the next time you ask for a pet, be wise and informed of the expense involved that a puppy is an on-going expense.
Not a one-time purchase or free.
I wanted to last talk about a car.
I’m about three years away from being able to drive and owning my own car sounds so cool. But purchasing a car is kind of like a cellphone but on a larger scale.
If you don’t have the cash outright to purchase the car in full, then you’ll have a monthly payment with interest usually to pay it off.
Then there’s gas and maintenance like oil changes twice a year, plus car insurance, and license and tag fees.
A car is an on-going expense we kids need to think about and start saving for. Many kids start having to get a job in their teens for the sole purpose of having the cash for a car.
So set-up a budget and savings plan to work towards that.
Calculate the cost of the car you want and think about the month’s expenses related to the car. Then you can be a prepared buyer so you don’t end up with a car… but no gas to get you anywhere.
So Cash Kids, let’s start being smarter about what we ask for and understand the expenses behind it. If we understand what’s an on-going expense vs. a one-time expense we can plan better and be more realistic about what fits without our budget. Understanding this earlier in life, can help keep us from instead of building debt, to building wealth much faster.
Remember, anyone can be a Cash Kid, you just have a learn how to become one. Cash Kid, Out!
Disclaimer: The information presented represents the views and opinions of the guest. This podcast does not intend to provide personal investment advice. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor, and for kids, definitely your parents first before investing. -
It's our anniversary! We're celebrating our first anniversary of starting this podcast with a talk with the Cash Kid on what he's learned from this experience, a recap of this last year, and what's in store for the future of the Cash Kid Podcast. Plus, a couple of announcements near the end of the episode (and bloopers!) Listen in, the Cash Kid Podcast is underway. Learn more about your ad choices. Visit megaphone.fm/adchoices
TranscriptIntro:
It’s our anniversary.
This week we are celebrating the 1-year anniversary of the Cash Kid Podcast. We could not be more excited to have you join us on this financial journey as we work to build super financial skills for the next generation.
How did this podcast get started?
Where are we headed?
And what I have I learned from this experience?
Plus, some bloopers to share from recording this last year.
And stay tuned to the end for two special announcements as well.
We’ll discuss it in this special anniversary episode.
Stay tuned. The Cash Kid Podcast is underway!
Intro tease:
So, you got some cash, maybe from an allowance? Or, that money your grandma gave you for your seventh birthday.
Here ya go, sweetie! Woo hoo! Thanks, Grandma! Whatever it is, what are you gonna do with it? Spend it? Hide it away? Or maybe invest it? Let's start learning how to make that money grow. Time to learn how to be a Cash Kid.
Welcome back to this special episode of the Cash Kid Podcast. I can’t believe it’s already been one year since we launched this podcast. This podcast started as part of a school project.
In the 5th grade, I was asked to create a passion project. And for some reason, starting a podcast came to mind.
The first four episodes were really just me talking about what I’m passionate about and scripts I wrote while in class. We may actually go back soon and revise those some as they were written before we had a clear mission statement… or knew we were going to continue the podcast after the school project.
We got such great feedback on our first episodes and were told by many we should continue the podcast but we needed a clear mission for our audience.
So, after producing 7 episodes for 7 weeks my Mom said, “I think we need to seek some advice and get some help.”
And so, we used my summer break to meet with a podcasting expert and get some guidance on what steps we needed to take to grow this podcast.
We set-up our website, cashkidpodcast.com, and a YouTube channel to publish our episodes. We started an Instagram page as well. But the main focus, was putting a plan together of where we wanted to take the podcast.
The mission was clear to me. I wanted to teach kids and adults the financial literacy skills they need to start saving and investing money early. My goal is to help my generation grow the greatest wealth with a slow and steady approach and be the most financially literate.
No get rich schemes here.
Since then we completed season 1 with 15 episodes.
Then we launched season 2 which was all about building “Super Financial Skills.” This is currently episode 17 of that series.
So far, we’ve interviewed 15 different guests on the show that represent a wide range of individuals from a kid running his own car detailing business, to a financial advisor, tax expert, a high school finance teacher, book authors, and CPAs running their own training courses to help others get out of debt and start investing.
I have learned so much! And it’s affected how I invest and think about money.
What have I learned?
I’ve learned that running a podcast is harder than it looks. There are numerous aspects beyond just recording audio.
And talking into a microphone takes some training.
There may be a few blooper clips added to the end of this episode. My Mom likes to torture me and save them.
So stayed tuned to the end. She said I’ve gotta learn to laugh at myself when I make these mistakes.
Running a podcast has taught me you must remain persistent and continue to think outside the box. It takes planning and learning new skills.
I’ve had to learn how to write more and write faster than others my age. I’ve had to learn how to communicate confidently on-camera, plus interview skills, and editing skills in creating content to post on our social channels.
We also went from producing audio only podcasts to now an audio and video format these last two months.
Where are we headed now?
In future episodes, we’re going to focus on ways kids can make money. We plan to interview what we consider to be fellow Cash Kids who are using their skills and entrepreneurial mindset to make some cash, while still kids.
We’ll continue to build super financial skills by helping you all break down financial terms and understand what your options are.
We’re going to continue talking with others on how to push for more financial education in our schools.
We want to make money a more common topic in homes and encourage kids and parents to talk openly about money to build good habits early.
We plan to talk about how to research publicly traded companies and what options you have as kids to start purchasing stocks to begin your investing journey.
We’ll dive into the world of employment. How to find that first paying job whether a part time job while in school or summer job. How to be a good employee and build your way up!
And, ways we can give back with what we’ve been blessed with.
These are all skills to tie into having healthy money habits and a good money mindset earlier in life.
Remember, my motto on the Cash Kid Podcast is that anyone can be a Cash Kid, you just have to learn how to become one. That’s why we created this podcast. Time is on our side to learn these financial skills earlier in life and carry them into adult years prepared and avoid big money mistakes.
Now, I’ve got a few things to let our listeners know about.
First, if you aren’t following us on social media, please be sure to head over to Instagram, YouTube, or Facebook and start following the Cash Kid Podcast. We post content here between episodes with helpful tips and advice.
Next, we are launching a new Cash Kid Podcast website at cashkidpodcast.com very soon. Be sure to head to our website to subscribe to our mailing list.
And finally, I’ve wanted to offer this for months now, but we said we would wait until the one-year mark but we are now offering Cash Kid Podcast merchandise.
That’s right, we’ve got merch!
We’ve got t-shirts, hoodies, athletic wear, shorts, mugs, and hats. I’ve been wearing my Cash Kid hoodie or t-shirt to school for a few months now and kids are always asking how they can get one. Now you can, just go to cashkidpodcast.com and select the tab for merch to purchase yours today. And watch for our instagram because we are going to do a merch and book giveaway.
We welcome you to become a part of the Cash Kid mission to build super financial skills at a young age.
We can’t thank you enough for your support. Honestly, your kind words to me and encouragement are overwhelming. It helps me push forward with a project that most kids my age don’t understand or would never attempt. Just remember, anyone can be a cash kid, you just have to learn how to become one.
Cash Kid, out!
Disclaimer: The information presented represents the views and opinions of the guest. This podcast does not intend to provide personal investment advice. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor, and for kids, definitely your parents first before investing.
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In this episode, we capture an inspiring interview with Maya Corbic, CPA, who started the "Wealthy Kids Investment Club" to help parents and kids learn how to be smart with money early. Hear her incredible life story and what she's doing to equip parents with the tools to raise money smart kids. Stay tuned, the Cash Kid Podcast is underway! Learn more about your ad choices. Visit megaphone.fm/adchoices
TranscriptWealthy Kids Investment Club
Teach.Kids.Money
It only takes one person to change the generational wealth trajectory of the family. Let that person be you. Welcome to another episode of the Cash Kid Podcast, where we focus on building super financial literacy skills for kids and teens to build a greater financial future at a younger age. If you aren't already, follow us on social media at CashKid Podcast and subscribe to our mailing list at CashKidPodcast. com. We have another special guest on the show today who works to change the generational wealth trajectory of families. Parents, you'll walk away from this episode feeling you have the resources to change your financial journey and that of your children. Stay tuned. The CashKid Podcast is underway.
So, you got some cash.
Maybe from an allowance, or that money your grandma gave you [00:01:00] for your 7th birthday. Here you go, sweetie! Woohoo! Thanks, Grandma! Whatever it is, what are you going to do with it? Spend it? Hide it away? Or maybe invest it? Let's start learning how to make that money grow. Time to learn how to be a cash kid.
Joining us today is Mrs. Maya Corbic. Mrs. Corbic is the founder of Wealthy Kids Club from her Instagram page, teach. kids. money, where she has over 133, 000 followers and growing. She provides some solid advice and steps parents can take to teach their kids about money and investing together. Mrs. Corbic, welcome to the show.
Cash Kid: And first off, tell us a little bit about yourself.
Maya Corbic: Okay. Well, thank you for that lovely introduction and thank you for having me on the show. So a little bit about me, I am first generation immigrant. [00:02:00] I immigrated from war toward Bosnia when I was almost 15, uh, with both of my parents and my brother, we lost everything in the war and we immigrated with two suitcases and 50 and I lived in government shelters, government housing, and when I was a teenager, I even had two part time jobs.
So, um, I learned how to hustle and I worked very hard, um, to, you know, become, you know, in a better financial position. So I became a CPA and, um, when I got married, I had some student loans and so did my husband and we ended up paying off all of our debt, uh, including our mortgage by the time I was 32, because we were very disciplined with money.
And at that Point in time, I, um, decided that it was really important to start teaching my own children about money. Uh, but also being a CPA, I learned from some of my clients that they were struggling with money. So I realized that the [00:03:00] root of all that struggle really started in childhood because a lot of the clients that I had were struggling with money because nobody ever taught them about money when they were growing up.
Cash Kid: That's really an interesting story, and we definitely agree with you on your point. So, where did you get the idea to start Wealthy Kids Club?
Maya Corbic: So, Wealthy Kids Club only, uh, was only started about three years ago. Uh, before that, for the past 11 years, I have been teaching parents about money, by going to schools and doing workshops. But then with pandemic, all that changed because I wasn't able to go into schools anymore. So I started doing more online workshops and still access the parents and classrooms that way. But then, um, I also started my, uh, Instagram account, teach. kids. money. And. When I was actually posting on that account, I realized that a lot of parents were coming [00:04:00] back to me because they were struggling with, uh, investing and how to teach their children to invest.
Um, a lot of them were able to teach their kids, you know, the difference between needs and wants and budgeting. But they just did not know how to teach investing. And I realized that this is where a lot of parents needed help. They needed to learn some of the basics themselves so that they could teach those basics to their kids.
And that's how Wealthy Kids Investment Club was born. Um, and, um, you know, I started that membership. I tried to make it accessible to everybody, um, regardless of where they are, um, you know, in the globe.
Cash Kid: Yeah, tell us about your club and what parents and kids can expect to learn.
Maya Corbic: So the club, uh, it's actually currently undergoing a big facelift, uh, but, uh, essentially in the club, you start off as somebody who is intimidated, uh, an intimidated investor, and then you learn some [00:05:00] basics, uh, in terms of what investing really is and you That's not as scary as it first may seem to be.
And then you progress and learn more basic stuff like investment jargon, who is who in the world of investing, how the brokerage accounts work, as well as what accounts are available to you. To start investing on your own behalf and behalf of your children. Um, and then you, um, learn about the power of investing in ETFs and index funds, which are my favorite investments.
Um, and then if you want to do more than that, there are different lessons where you can learn about investing in bonds, um, investing in REITs, which are, uh, real estate investment trusts. Dividend stocks and so on. Um, it's a, it's a great way to go from an intimidated investor to a confident investor through a lot of, um, fun video lessons, as well as we have games and we have worksheets and we [00:06:00] have an active community where you can ask a question.
Cash Kid: Uh, what do you hear? From parents about their struggles in teaching kids about money. So, as I said, a lot of parents struggle very much with teaching their kids about investing, because that's one area where, you know, they, they lack the knowledge themselves. Um, a lot of parents struggle with the concept of delayed gratification.
And, um, you know, Teaching their children to save money. So usually for those parents, I tell them that there are different ways that they can encourage saving, um, money when it comes to their children. One of the things that they can do is they can put a certain as their children to put aside a certain portion of money when they receive it as a, from allowance or monetary gifts and teach the kids to pay themselves first.
And they say that 95 percent of what we do, we do out of habit. So if we teach our children to do that, hopefully when they become [00:07:00] adults, they will not be able to spend all of their paychecks, but instead they will be putting aside a certain amount of money into savings and then eventually investing that money.
And then I also like to encourage. Children, my own Children as well as I tell other parents to do this as well, but, you know, if, for example, if my child is saving for something particular, I like to match their savings, especially if it's something big that it would take them a long time to save up for.
So, if my child saves 10, I will give them another 10 or, you know, you can give them more or less. It's entirely up to the parent. Um, you can also reward them by, you know, uh, doing their favorite activity or maybe even going for ice cream when they reach a certain, uh, goal or, you know, you can give them interest on their savings.
So if they've saved up 100, maybe you can throw in an extra. 2 or 5 as interest, you know, to reward them for saving that money.
Cash Kid: Yeah. So that's [00:08:00] definitely a good habit and it kind of leads into our next question. What are practices or habits that you implement in your own home around money and why?
Maya Corbic: So when my kids were little, I have two teenagers now, so I have a 16 and a 14 year old, but when they were younger, uh, we used to give them allowance.
And, uh, this was a weekly allowance. And the reason why I liked the allowance is because it transfers the purchasing responsibility from parents to the child. So instead of me deciding whether or not to purchase, uh, candy or a toy for my child, they had that Uh, decision that was the decision rested with them.
So they were the ones in charge of that decision and they manage their own money very differently than, for example, they would have managed my money or the expectation of me spending money on that. Because. We, as parents, you know, we have a certain amount of money. We have our budget and our children don't really know what that budget is or how [00:09:00] much money we have in our bank account.
So, you know, they're constantly asking for more. But when you give allowance, you are essentially teaching your child that, you know, money, uh, There's only a limited supply of money. So once we exhaust that, there's no more. So they have to make smart choices. And if they don't make those smart choices, they learn from these mistakes and mistakes are good for learning.
Um, because next time, hopefully they make better choices.
Cash Kid: Yeah, mistakes are the best teacher. Mom's laughing in the background. On your website, you state for parents to stop feeling insecure when the conversation turns to investing.
Maya Corbic: I'd say this insecurity is what holds a lot of families back. How can they overcome this?
So I would say, um, You know, it first is realizing that you want to change and realizing that you have the power to change. A famous investor, Peter Lynch said that anybody who has completed grade four math is capable [00:10:00] of learning how to invest. So I find that very, uh, positive affirmation or news that every, almost every one of us Can learn how to become successful investor with a little bit of effort.
Uh, so with that being said, I always suggest that people start with kids books. Um, they are, you know, there's a book behind you that's on investing for kids. There is my book that's right behind me. It's called from piggy banks to stocks, the ultimate guide for a young investor. And that book, when I wrote it, I wrote it originally for children, uh, ages 10 and up.
But while I was writing the book, I had some testers and those were families, um, parents with children. Many of these parents are teachers and they were testing the book and giving me feedback to make the book even better. But what actually ended up happening is that these parents were coming back to me and saying, thank you.
I finally understand investing because it was really intimidating for [00:11:00] me to understand some of these concepts before. So start with like kids books and then, you know, progress. To something that's a little bit more complex. Um, and then, you know, if you're interested, you know, feel free to explore and find out more about my wealthy kids, uh, investment club, because that's where we teach, um, all the basics of investing and we turn intimidated investors into successful investors.
Cash Kid: What do you consider a healthy money mindset in today's investing world? And how has that changed over time?
Maya Corbic: So, I mean, I think everybody's idea of healthy money mindset is different. I think we all need to decide what ours is. And I think it may also, the healthy money mindset may also change depending on the situation.
stages that we go through. So to use myself as an example, being an immigrant and living in government shelters, I was pinching pennies for many, many years. Um, and I, you know, [00:12:00] watched all of my expenses. I budgeted, I was very frugal with my money. Um, while. Simultaneously trying to build my wealth. So, but now that that has changed, you know, like now actually I'm in a different stage of my life where, you know, I have accumulated a significant amount of wealth.
I don't necessarily need to be watching every single penny. Like I can loosen up the belt a little bit and enjoy myself, but money mindset is also, Being okay, like for example, for me, uh, it's about being okay with spending money because for so many years I learned to conserve money and not to spend it, um, and just, you know, save, save, save, save, save, and invest.
But now that I'm older and I'm in my mid forties, I realize, you know, life is short and money is there for us to enjoy, but enjoy respect. So I'm trying to be okay with enjoying some of my money, even though, you know, every [00:13:00] once in a while there is this creepy feeling that I get, you know, I shouldn't be spending, I shouldn't be doing this.
I need you to just like, I just need to save and save and save. But. Just having piles of money and no experiences or quality time with my kids is not the answer either, especially because now my kids are teenagers and soon they will be leaving for college. So I'm just trying to balance it all. So that's my money mindset around money, but somebody else's could be different depending on their circumstances.
Cash Kid: Yeah. We love your books you have outlined on your website of recommendations. Do you have a few that you could spotlight for our audience? Yeah. So obviously, I mean, my, my book is my baby and I absolutely love it. So it's called from piggy banks to stocks, the ultimate guide for a young investor. It's available on Amazon and any other, um, major bookstore.
If you go online, it's written in a language that a 10 year old can understand. So if you're an adult. Um, you know, you will definitely understand what [00:14:00] it explains and you will like finish that book and you will understand how investing and the stock market works. Um, so the other book that I really like is called grandpa's fortune fables, and it's by my friend, uh, Will Rainey.
He's the author. Uh, it's a lovely book. It's, uh, written in a, in a. Like it's like fables, but each fable has, um, a message with it, with regards to money.
Cash Kid: Yeah. Is there anything that we haven't asked you that you would like to share with our audience? I just, you know, want everybody to understand that You know, money may seem intimidating and complex, but once you are committed to changing your generational wealth, um, you can do it.
Anybody can do it. It does take some self discipline. Uh, it does take some time. But [00:15:00] as you start learning and as you start doing certain things, it gets easier. So it may seem like a lonely journey, but there are a lot of communities out there, Facebook communities or Instagram communities. Um, You know, I have one where parents are teaching kids about money.
So my Instagram is teach.kids.money. Um, you know, where hopefully I can get you inspired to learn and not just only to teach your child, but to learn yourself, uh, because a lot of times some of my followers tell me, well, I'm learning so much from your Instagram page. So that really is the goal is that to inspire adults so that they can teach the kids and we can really have money smart younger generation.
Cash Kid: Mrs. Corbic, we appreciate your time and your expertise. Thank you for joining us on the Cash Kid podcast and boosting the financial knowledge of fellow Cash Kids everywhere. As we say on the podcast, anyone can be a Cash Kid, just have to learn how to become one. Cash Kid out.[00:16:00]
Disclaimer: The information presented represents the views and opinions of the guest. This podcast does not intend to provide personal investment advice. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor, and for kids, definitely your parents first before investing.
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Live frugally, save abundantly, invest intelligently. Join us as we interview special guest Mabel Nunez, the founder of Girlsonthemoney.com, where she shares her investing success journey and how she's helping others boost their investing knowledge. The Cash Kid Podcast is underway! Learn more about your ad choices. Visit megaphone.fm/adchoices
TranscriptLive frugally, save abundantly, invest intelligently.
That’s our guests’ motto on the show today.
Welcome back to another episode of the Cash Kid Podcast where we continue to build super financial skills. If you aren’t, please be sure to follow us on social media. Just search Cash Kid Podcast or on our website at CashKidPodcast.com.
Cash Kid’s we’ve got a special guest on the show whose story is inspiring and motivating to learn how to invest. Parents, there’s an investing course for you to learn about as well. Listen up! The Cash Kid Podcast is underway.
Cash Kids, we've got a special guest on the show whose story is inspiring and motivating to learn how to invest. Parents, there's an investing course for you to learn about as well. Listen up, the Cash Kid podcast is underway.
So, you got some cash, maybe from an allowance? Or, that money your grandma gave you for your seventh birthday.
Here ya go, sweetie! Woo hoo! Thanks, Grandma! Whatever it is, what are you gonna do with it? Spend it? Hide it away? Or maybe invest it? Let's start learning how to make that money grow. Time to learn how to be a Cash Kid.
Cash Kid: Joining us today is Mrs. Mabel Nunez. Mabel Nunez is the founder and CEO of Girls on the Money, with over 60, 000 on her Instagram page alone, and 10, 000 members on her Facebook She's a blogger and investing educator whose mission is to teach everyday people how they can intelligently invest too. Welcome to the show.
And first off, tell us a little bit about yourself and your story.
Mabel Nunez: Hi, Cash Kid. I'm very excited to be here inviting me and I guess I can say I can start with the fact that I wasn't born in the United States. I was born in an island in the Caribbean called the Dominican Republic and I moved to the States when I was 9 years old and from a very young age.
My parents always taught me. The importance of saving money and, you know, being careful with credit cards, things like that. Um, but it wasn't until I went to college my, my last year of college, my senior year when I discovered the stock market and investing and I. You know, fell in love with it and became obsessed with it.
Um, but, you know, it wasn't something that I learned at home. I learned that when I was already in school, but I'm very grateful and blessed that even though I didn't know how to invest from a young age, I still kind of knew the basics of personal finance from my parents. I grew up in a very, um. Um, I guess poor household because we were immigrants.
So we had limited resources and things like that. So we had to kind of make do with what we had. And then later on when I, you know, made my own money and started investing, I discovered, you know, this whole new world. So that's kind of how things started off.
Cash Kid: That's really interesting. Tell us about Girls on the Money and why you started this site.
Mabel Nunez: So I started Girls on the Money because when I started to invest, um, And I became obsessed with it, like I said, I noticed that a lot of my friends, my female friends weren't into investing, or they found investing intimidating, or they were, they thought it was too complicated. And most of the people that I will talk to about stocks and funds will be my male friends, my guy friends.
Because they were the ones into it. Um, so I thought, you know, there was a disconnect there. You know, I wondered why weren't more women talking about investing? Why were they so scared of it? So it kind of like, you know, it was like a light bulb moment for me to, okay, I need to create a community or a platform that increases the confidence of women to start investing or, you know, girls.
Even though, like I say on my website, I don't discriminate if like, you know, guys want to learn too. Like that's fine. I welcome them. But my, the majority of the people that I target are female.
Cash Kid: Yeah. I love how on your site you talk about investing being your passion. That's how I started my podcast as it was part of a passion project.
We were assigned that school. Why is investing your passion?
Mabel Nunez: So investing is my passion because, um, I guess it first started with my professor, my college professor that I mentioned before my senior year. He, uh, kind of explained to us how anybody with any income can become a part owner of companies. You know, major companies, you know, like the McDonald's, the apples, the Microsoft.
So I was like, very impressed by the fact that wow, like me, like an average person, you know, with an average salary or whatever at the time that I could become a part owner of this company. So, 1st, you started with that, you know, we just like, just that idea of. You know, it just changed my mindset in terms of what was possible for me as a, you know, a female and an immigrant and somebody with limited resources.
So, then after that, when I started investing and I realized, you know, how successful you can be, if you, you know, if you know how to do it, you know, if you select high quality funds and stocks. When I started to see my money grow and I was, you know, it was even better. You know, it was either a bigger passion for me.
So it kind of, um, it kind of grew from that, like from first, from just the idea of becoming an owner of companies. And then after that is like seeing how we actually work and how you can grow your wealth, you doing so.
Cash Kid: Yeah, tell us about the training courses you offer through your site, Girls on the Money.
Mabel Nunez: So I want to, I want, I'm glad you said that because I want to emphasize that the, the, what I teach, um, through my investing bootcamp is investing, specifically, so as you know, Cash Kid, I'm sure you know this, there's a difference between trading and investing, so, you know, day trading and things like that, I don't really get involved in because I feel like, It's like gambling in my opinion.
So, um, what I teach is an investing bootcamp that teaches people how to, you know, select high quality stocks and funds and then just hold on to them for like, you know, 5, 10, 15, 20 years, and then just grow your wealth that way. Um, that's the type of investing that I believe in and that's what I teach my students and clients.
Um, so my class is just 5 weeks and just, we just go over. The basics, everything from, you know, how to open an investment account all the way through how to do your research to select high quality investment. So it's pretty much like long term investing.
Cash Kid: Yeah. What do you feel is the greatest misconception or crux people have or face when it comes to investing?
Mabel Nunez: So I think, uh, there's a lot of misconceptions. I think one of them is that, um, you need a lot of money to do it and, and you don't, especially in this day and age. Like back in the days when I started investing, um, I wanna tell you around 2008, I don't know if you were even born at the time, but back in . So that back in those days, um, you needed like a minimum amount to start, like either like $5,000, you know, a thousand whatever.
But fast forward, you know, now, now, in this day and age, you don't need any, you know, any minimum to start. You can start with 100 dollars with 50 dollars, whatever you want, whatever you can afford. So, that's 1 thing that people think they need, like, thousands or hundreds of thousands of dollars to invest and that's not true.
And another thing that I think is a misconception is that investing is difficult that you need a financial advisor to do it, or you need. Somebody from a bank to work you through it and it's really isn't. It's just like a skill that you can learn and it's very, you know, look at you, you're doing it and you're, you know, you're, you're a kid and you're exactly so anybody could invest.
So, that's another big misconception. You don't need a bank, like, you know, a financial advisor. You don't need all this money. You can just be in your house, open an account deposit 50 dollars. And get started.
Cash Kid: Yeah, I totally agree. I have some friends and like, cause like, they, they know about what I do. And they go, I have like a hundred dollars.
What can I do to invest? And cause like, they're like, when I look at all these companies, they're like a hundred something dollars. And so I don't think I have enough. And I'm like, you can buy partial shares and it's never too early or too little money to start investing. You can always start. I love that.
Mabel Nunez: Absolutely. Also, how has learning to invest changed your life and those of your students? Do you have any examples you can share?
Sure. So my life, I always like to share that my life changed with the amount of time of saving and investing my money consistently to myself, Hey, I want to pursue my own business.
I want to do my own thing. So being able to have investments and savings in the bank, allow me to. You know, launch a business without having to worry about how I'm going to pay my bills or, like, be desperate for clients or things like that. I didn't want to be in that position. So, investing for me has given me the freedom and flexibility to pursue my dreams.
And that's something that I tell my students, like, hey. You know, even if you don't know for sure where investing is going to take you, it doesn't just have to be retirement. Maybe 1 day you want to travel the world. Maybe 1 day you want to start a business. So you don't know where investing is going to take you.
So, for me, it's just that freedom and for my students, um, I've heard from a lot of my students throughout the years that they've have. Become passionate about investing too, and they started their own consulting businesses. Um, some of them became like financial therapist, which I think is so impressive.
Like, they've been motivated through my courses to, like, you know, either launch their own kind of like businesses in the realm of finance. Or also, like, pursue other other dreams that they had, like, um, like, uh, small businesses or side jobs and things like that. So it has given them also that flexibility to pursue their own independence.
So that's, I think those are the major, major things that have that my students have been able to share with me.
Cash Kid: Yeah, let's talk about kids investing. It's my mission to educate my generation earlier in life the financial skills they need before they go to college and start making money to know what to do with it.
What are your thoughts on kids my age being offered more financial course options and the need for greater financial education?
Mabel Nunez: I agree with it. I think it's so important and I think, you know, I'm so glad that you're doing it. Maybe your parents are teaching you. Maybe you learn it in school, but I think it's so important that the sooner the better, even though, like you said before, it's not too late.
It's never too early to start the sooner you start the better. If you're getting this education from a very young age. You're also being a millionaire, you know, in your 40s or 50s are exponentially higher because, you know, the more time you had ahead of you, the better for your money to grow and compound and I wish more schools made that requirement.
I know there's some loss in the works to make investing or personal finance requirements in schools, but it's not standard in the United States. States. Like I, my own example, like I didn't learn about investing until I was a senior in college. Like imagine that you are like, you know, in elementary school, whatever, and you're already into it.
Like, imagine waiting until you're in college, or even after college, after you have a job, 9 to 5 job to start investing. So, even though it's never too late, like, the sooner you begin, the better. And I think that there should be more resources to have kids get started.
Cash Kid: Yeah, uh, I bought my first stocks over two years ago and I have a list of more I want to buy.
I use an app called Greenlight currently to purchase stocks. What other ways do you know that preteens and teens have in being able to start investing?
Mabel Nunez: So, I wish there was more resources to be honest. Um, Greenlight, I just recently learned about it. And that is a great platform. I wish there was more to be honest.
I think the only the other option that I've heard of is fidelity. They have a youth account, but I think you have kids from 13 to 17 that qualify for that. So, you know, I guess in teenage years, and besides that, like, custodial accounts that you have to have your parents kind of link to the account that you can open a custodial account.
Like any parent or guardian can open a custodial account for any kid, um, with any broker, like Fidelity, Schwab, Ally, E Trade, whatever it's out there. It's only that the parent's name is going, or the guardian's name is going to be attached to the kid's name until they turn 18 or 21, and then it becomes their account.
Cash Kid: What advice would you give my generation when it comes to learning to invest?
Mabel Nunez: So, I would, I guess the advice I would give, um, you know, start reading, you know, if you're of reading age, start reading books about investing, um, find books that are easy to read, I guess, because some of them are like, overly complicated. So, find books that are easy to read, you know, have your parents, um, you know, kind of guide you if your parents don't know about investing, like, maybe, um.
You know, have them take a class and then teach you or take the class with you. Um, um, shameless plug, like my bootcamp, I have a bootcamp about investing. So, you know, obviously everybody's welcome to check that out. But also there's other classes out there. So if the parent doesn't know about investing, just encourage them to take the class with the kid or on their own and then teach them.
And then, like I said, books, read books, um, maybe listen to podcasts that are kids friendly that also talk about investing. That's also another option. Um, and then I encourage them to explore like companies that they are into that could potentially be good investments. But just just remember that not all companies that we know and love make profitable investments and you have to make that distinction, but always it's fun to explore like, oh, I like I have.
An iPhone, like is Apple a good investment? Or I like to eat at McDonald's. Is McDonald's a good investment? So kind of explore those kind of companies with your child. Keep it in mind, like, okay, is this actually going to make me money? Because that's the whole point of it. But it is fun to like, think about companies like that.
Cash Kid: Yeah, I totally agree. We always like to ask our guests if you have any book recommendations for our audience.
Mabel Nunez: Sure, so, um, 1 of my favorite authors for, like, for investing basics is bitterly Peter Lynch. So he has some really good books. Um, they're simple to read about investing. I'm also an author and investing after I can show you a couple of my books there on Amazon.
They're very easy to read. So this 1 is, um, investing mini lessons for beginners. Um, my name is on there and this is stock analysis. 1 on 1. So, these are very simple, very easy to read books that you can check out, like, any age teenagers, kids, and they just make investing like, you know, is accessible. But they're like, I said, Peter Lynch is also an author that I like that makes investing, you know, kind of simple to understand, but there's some books out there.
Like, when I started investing, they were too complicated. We'll talk about retirement accounts or like, things that I'm like, they went over my head. So you, you know, When you first started, you want to start with books that are easy and simple to read and then you can build from there.
Cash Kid: Yeah. Is there anything we haven't asked you that you would like to share with our audience?
Mabel Nunez: No, I love all your questions. I just want to encourage your audience, either parents or kids alike, that investing is for everyone. Investing doesn't take a lot of money. Investing doesn't have an age limit, especially in this day and age. So just start, like, even if you have just 50, just start. Like, that's the whole point.
I always believe that action breeds confidence. So the minute you take action, you're going to be more confident about starting your investing journey. And just make it fun. I'm serious, like the odds of being a millionaire, at a, at a very young age are exponentially higher if you start investing young.
So, you know, just get started.
Cash Kid: Yeah. Ms. Nunez, we appreciate your time and your expertise. You can follow Mabel Nunez on Instagram at Girls on the Money and check out her website, girlsonthemoney.com. Or you can check out the investing courses she offers for beginners. Thank you for joining us on the Cash Kid Podcast and boosting the financial knowledge of the fellow Cash Kids everywhere.
As we say on the podcast, anyone can be a Cash Kid, just have to learn how to become one. Cash Kid out!
The information presented represents the views and opinions of the guest. This podcast does not intend to provide personal investment advice. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor, and for kids, definitely your parents first before investing.
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Can kids start investing in stocks? Absolutely! The world has changed and kids at a younger age can start investing some of that allowance and birthday cash to start growing their money earlier in life. Learning this financial term as kids can have a huge impact on the financial future of any generation. Tune in to hear how the Cash Kid invests and how to be an informed investor. The Cash Kid Podcast is underway! Learn more about your ad choices. Visit megaphone.fm/adchoices
TranscriptAlright, today Cash Kids, we are diving into one of my favorite topics: Investing and stocks.
What does investing mean?
What’s a way a kid can invest and purchase stocks?
Keep listening. We’ll answer those questions and more coming up. Let’s learn how to grow your money using these essential financial tools. Stay tuned the Cash Kid podcast is underway!
Intro tease:
So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday. Here you go, sweetie. Thanks, Grandma.
Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.
Time to learn how to be a cash kid.
Since launching this podcast almost a year ago now, I get asked a lot about investing, what stocks I like, and where do I invest. My mom says there are some odd conversations that happen in our house at times regarding stocks. I don’t know what she’s talking about.
[Mom: What do you mean? I’ll be cooking dinner only to turn around and you and your 9-year-old brother are discussing the gains and losses of a company over the last six months and whether not now is the time to buy. I’m sorry, it may be the new norm in our house… but that’s not the norm in other homes. I mean, how do I write that down in a baby book. Kids discussed Apple stock today. Looks like Johnnie is finally ready to buy that first stock. I mean, come on, it’s a little surreal at times in our house.]
Well, I’m working to make it more the norm Mom. If you haven’t figured it out by now episode 28, I like stocks and any way to make money grow without doing much.
So, let’s start with the basics. What does the term investing even mean?
Investing is when you spend money with the expectation of achieving a profit. Lots of our parents like to watch these HGTV home renovation shows. What are these folks mostly working towards when they “invest” in buying one of these fixer upper homes? They are looking for that investment (or money spent into buying the home) to fix it up and then make a profit.
In the stock market, when you invest, you are putting money into a company or companies with the expectation you’ll receive a profit in return down the road. I like the way wikipedia describes an investment as a commitment of money to receive more money later.
So, one thing to remember as kids, investing is not a short term game. You are putting money in an account to let it sit and grow overtime. My focus on the Cash Kid Podcast is to help get this concept across to my peers that “time” is exactly what’s on our side.
Now, how do I invest? I get asked this a lot. I use an app called Greenlight.
Greenlight is a debit card and money app for families, that’s managed by parents. It gives parents tools to manage and monitor their kids spending. You can transfer money straight from a checking account to the kids account on Greenlight. You can pay an allowance this way, assign chores, set savings goals, donate to charity… and my personal favorite… buy stocks.
Within the app I can research stocks and ETFs, and mutual funds. I can view charts, buy and sell stocks see how much the stocks are gaining or losing money. The accessibility on this app is amazing.
Also some shares can cost hundreds to thousands of dollars and some kids just don’t have that kind of money. So on Greenlight, you can buy partial shares so you always can invest even when you don’t have the money to buy a full stock.
I do all my buying and selling within the app.
Since then, I’ve had sometime already to watch the stock prices go up and down and gotten more patient with what I buy and sell. I’m reading books more and doing more research to save up for stocks I want to be able afford stocks I feel will give me a profit from my investment.
My parents for Christmas this past year gifted me a subscription to the Wall Street Journal and Barron’s. I get up some mornings just to read about different stocks and businesses to see what’s happening. Part of being an investor is being informed of what’s going on in the world. Mrs. Wanda McAbee, the Executive Director of the Alabama Council on Economic Education, addressed this in a previous episode in regards to playing the stock market game. Here’s a refresh of what she had to say:
Wanda McAbee: “But stock market game is the perfect example of finding a way to help students see the real world connections. So on your portfolio, when you're playing stock market game, and a stock goes up or down, sometimes, you know, you've done research about that stock. But a lot of times, it doesn't matter how much research you've done, what's going on in world events will cause it to go up or down, whether there's a famine, or whether there's a pandemic, or whether there's a war, or whether there's a presidential election. And so we see those real world connections. So it's very important that students gain the knowledge and are equipped with the skills to look at situations to make decisions, to see those real world connections, because that is what's going to impact them in their future as adults and present being productive members of society.”
So to invest, you need to take a little time to be informed. You can look at the company's financial reports and see how much money they are making. You can also read news articles to see what people are saying about the company.
We’re kids still, so I’m not saying spend hours a day. I spend a few minutes a day browsing the Wall Street Journal and Barron’s articles. It’s helped me for sure.
Investing into stocks is an amazing way to help grow your money. I mean look at companies like Amazon. They went up and split in like 30 years. If you invested 30 years ago you would have made a lot of money.
Investing in stocks is a good way to make more money. When you buy a stock, you buy a small piece of a company. If the company does well, the value of your stock goes up and you can sell it for more money than you bought it for. But if the company does badly, the value of your stock goes down and you might lose money.
Remember, investing is not a guarantee that you will make money. There is always a risk that you will lose money, but you should just hold on to it because if it's a good company it might go back up. And if you're not sure what to do, it's a good idea to talk to a grown-up who knows about investing or even just your parents.
I’ve got some future guests in mind who I feel can help us know and understand about buying stocks and investing in future episodes. Right now, we’re trying to lay the ground work for understanding super financial literacy terms to be prepared and take action (some of you already are, which is great!)
Cash Kids, we have more terms, discussions, and skills to learn.
Thank you for tuning in to this episode. Follow us @cashkidpodcast on Instagram, Facebook, YouTube, and Pinterest and wherever you are listening, leave a review! We need your help reaching a larger audience and building the financial skills of the next generation.
If you have a question, please, reach out to me at [email protected] and I’ll answer it in a future episode. You can also reach out via our website at cashkidpodcast.com.
Cash Kid, out!
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We have another special guest on the Cash Kid Podcast! Justine Nelson is a book author and founder of DebtFreeMillennials.com. She published a book called "Investing for Kids Activity Book" which has 65 activities on how to teach your kids about money and how to start investing it early. The Cash Kid and Justine are two people trying to change the financial path of their peers. Listen in, the Cash Kid Podcast is underway! Learn more about your ad choices. Visit megaphone.fm/adchoices
TranscriptCash Kids, we have another special guest on the Cash Kid Podcast today. Just like I’m trying to reach my generation to build a better financial future, she’s dedicated to changing her financial direction of her. She’s someone who self-taught herself to become a financial expert and wrote a book to help us Cash Kids do the same.
Stay tuned…The Cash Kid Podcast is underway!
Intro tease:
So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday. Here you go, sweetie. Thanks, Grandma.
Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.
Time to learn how to be a cash kid.
Joining us today is Mrs. Justine Nelson. Justine is the founder of Debt Free Millennials and YouTube channel aimed at helping millennials improve their financial situation. She is here to tell us about her financial education book for kids, what she's doing today to help fight for more financial education, getting millennials out of debt, and much more!
Welcome to the show. And first off, tell us a little bit about yourself.
Justine Nelson: Thank you so much for having me. This is so awesome. Glad to be on the show. My name is Justine Nelson. I am the founder of Debt Free Millennials and I help millennials crush debt achieve financial confidence that leads to more fun and fewer payments
My journey with personal finance actually started when I was a sophomore in college, I was doing my homework at the time when I got a phone call from my mom. And she told me that she and my dad could no longer support me financially through school because she had been laid off from her job. So, I was really panicked on what to do, and trying to figure out how he's going to afford college tuition. So I did what any other college student did at that time, which was to walk down to the student financial aid office and asked to take out more student loans. By the time that I had graduated, I was $35,000 in student loan debt. And I was just making $10 an hour at my very first job, which wasn't a lot of money to cover my student loan payment, and do all of the things that I wanted to do.
After college, I wanted to live in an urban city and a high rise apartment. I wanted to go out for sushi and have lots of fun traveling. And I wasn't sure how I was going to do that, with so much student loan debt. So it was then that I decided that I needed to take financial ownership and pay it off really, really fast.
Cash Kid: We purchased your book “Investing for Kids Activity Book” last year and loved it. We even inspired some of our previous episodes based off the boo. Tell us why you chose to write this book.
Justine Nelson: I chose to write investing for kids the activity book because when I was 10, 12 years old, I didn't have a really good understanding of money. In fact, I thought money was a little mysterious. I had no idea how to earn it, how to keep it. And the only basic teaching principles that I knew from my school was how to write a physical paper check. I don't know if you remember those. But that was the only teaching that I had from school was learning how to write a physical check, and how to cash that in. And really finances so much more than than writing physical checks. And I'm not sure if a lot of people do that anymore. So money is constantly evolving. And I wanted to write this book as a way to guide individuals and kids on how to access money, invest it and grow it.
Cash Kid: So tell us about your website and YouTube channel Debt Free Millennials. Why did you start this initiative?
Justine Nelson: Yeah, so going back to my story. I eventually paid off all of my student loan debt in two years, five months on a $37,000 salary. And through that journey, in my experience of being very disciplined with my budget, learning how to invest and really making strides in my career to earn more money, I found more and more of my friends and family were coming to me for financial advice. So, I decided to start a business out of it. And one thing that really attracted me about running my own business was that I could use whatever platform that I wanted, which I love that you're using a podcast. And for me, a YouTube channel was the perfect match for somebody who enjoys being on camera talking about financial topics, and helping others hone their skill set and financial literacy.
Cash Kid: What's the biggest obstacle you find Millennials face in getting out of debt and living payment-free?
Justine Nelson: I think the biggest obstacle Millennials are facing right now is just not knowing where to start. There are so many different challenges that people face when it comes to their money, that it can be very overwhelming. So just getting that starting point is probably the biggest obstacle that I see.
Cash Kid: Do you feel there is a lack of financial education given to kids? And why?
Justine Nelson: Yes, I do. Knowing from my personal experience growing up in the public education system. And going back to the physical check, experience, I didn't find that money was accessible in learning about money was accessible from my public education. And so if we were to infuse more personal finance programs, inside of our education curriculum, and I'm sure you have thoughts on this to being in school, and perhaps not getting that personal finance, learning from school, I think having a structured program in place would be so beneficial for kids.
Cash Kid: Yeah, so what can be done or are you doing to help move the needle in getting more financial education taught in schools?
Justine Nelson: I think the best way would be to come up with a program that can be implemented across our public education system. I think that's kind of the first step to get that into the hands of the kids that desperately need it. In addition to that, I love that there are podcasts like yours and video channels out there that can really teach kids how to save, earn, grow and invest their money. If you can take what we can use inside of schools, in addition to what we can learn outside of school, kids are going to go really far.
Cash Kid: Yeah, so what do you think is different for my generation to consider about our financial future than generations before us?
Justine Nelson: That's a great question. I think one thing that your generation is going to really have to think about is your college education and how affordable that's going to be so reconsidering your approach to college, looking and actively proactively looking for scholarships, or looking at part time jobs. And more importantly, talking about the costs of college with your family. I saw a lot of my peers go out of state for school, and it ended up costing them three times as much than staying in state for college. So talking about the benefits, and the disadvantages of things like going out of state or staying in state for school is going to be a big conversation that you'll want to have with your family.
Cash Kid: What would you say to parents and kids my age on how to set themselves up for great financial future?
Justine Nelson: Talk openly about money and talk about money often. H ave a family budget meeting, get involved with those decisions. And then also for parents allow kids to be part of paying for expenses and I don't literally mean having kids pay for their own things, necessarily more. I'll give you an example of a family who gave their kids $40 a piece for the month and said, This is your monthly allotment for your toiletries, so shampoo, all the stuff that they need to take care of themselves. And so they would give their kids the money, and then have them go out and purchase it. And that was the purchase decisions that those kids made was really different, because they knew that they had just a finite resource, just a budgeted amount of money to work with. And it helps them be a part of the family's decision-making process inside of their monthly expenses. So I think that's a really great way to keep the conversations open around money.
Cash Kid: Yeah, so what are some ways kids today can start making money and saving it?
Justine Nelson: One of the activities that I have inside of the book is called "Money is Everywhere." And basically, the idea is, you already have a skill that you can make money at. So, whenever I'm thinking about making money and starting to save it, think of the things that you already enjoyed doing. Maybe you really like toddlers and babies, perhaps you can babysit, or maybe you're really good at making things in the kitchen. So, maybe you want to sell baked goods, whatever it is, you can take that skill and turn it into a money-making activities. So I would encourage you to just list out all the things that you enjoy doing. Maybe you really enjoy sports, how could you then become a coach for somebody who may be two or three steps behind you? So, maybe you're really good at shooting free throws? And you want to teach somebody who may be three years younger than you, and have them sign up for free throw lessons and get paid for it?
Cash Kid: Yeah, um, one issue I feel my generation faces is we want instant gratification.
How can we overcome this mindset, making money learning a skill, investing, and watching it grow is not an instant thing in the real world.
Justine Nelson: I think you can have both, I think you can have instant gratification and make money over a long period of time. So one of the other activities that I mentioned in the book is an activity called now or later. And so it's about one kid Nicholas, who spends $5, every single week on candy. And then he savea $0 For a game that he actually wants. When his friend Lucy's still buys candy, but she only spends $1 Every week, and then she saves the rest for the same game, she ends up saving in a shorter amount of time than Nicholas. And she's still got to spend on the fun stuff. So, I think you absolutely can have both. It's just a matter of being strategic about how you are saving for the things that you really, really want. That may take a little bit more time to get there. And also have fun in the process. You can still spend a little bit of money on the things that you really like do it on a cheaper site, cheaper version, and then also spend and save on the things in the long run.
Cash Kid: Yeah, is there anything we haven't asked you that you would like to share with our audience?
Justine Nelson: I think the biggest thing for kids when it comes to personal finance is have a sense of curiosity, which I think kids naturally already have. But get curious about money and ask questions. Ask the adults in your life, why they chose the careers that they did. Ask them what's their best piece of financial advice that they would give to a 12-year-old. I think the more curious that you get about those money questions, the more that you're going to have open conversations with adults that are going to be a bit surprised in the beginning that you're asking the questions. But I think it's really a great way to open up the conversations so that you can learn from those around you and learn from the adults who've already been there so that you can make the most out of
So if you would like to learn more, I highly recommend heading over to Amazon and picking out the “Investing for Kids Activity Book.” I think it's a great resource just to get some hands on learning experience. And you don't necessarily have to have money in order to do these activities. And then if you want to dive deeper, you can check out the debt free Millennials YouTube channel, where I talk about personal finance in all different areas to help you level up with your money.
Cash Kid: Mrs. Justine, we appreciate your time and your expertise. Thank you for joining us on the cash good podcast and boosting the financial knowledge of fellow cash kids everywhere.
Cash Kids, we have more terms, discussions, and skills to learn.
Thank you for tuning in to this episode. Follow us @cashkidpodcast on Instagram, Facebook, YouTube, and Pinterest and wherever you are listening, leave a review! We need your help reaching a larger audience and building the financial skills of the next generation.
If you have a question, please, reach out to me at [email protected] and I’ll answer it in a future episode. You can also reach out via our website at cashkidpodcast.com.
Cash Kid, out!
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Is your money making you more money? If it's not, you are harnessing the power of our next financial term, "compound interest." In this episode, we brought in book author and financial expert Brian Feroldi to explain to us how compound interest works. Not understanding this term could cost us all big bucks down the road. Don't miss out and listen in to find out how money, makes money, makes money in this episode of the Cash Kid Podcast. Learn more about your ad choices. Visit megaphone.fm/adchoices
TranscriptWelcome back Cash Kids!
Alright, I’m going to get serious… listen up. We’ve hit on many financial terms this season already.
But today.
Today’s term is one that many, many, lose lots of money without even realizing it because they don’t understand how it works. If we Cash Kids can understand the power of “compound interest” early in life… guess what, we’ll have more later in life.
And I’ve got a great financial expert and book author here to break it all down for us. Brian Feroldi is the author of the book, “Why Does the Stock Market Go Up?” We loved this book in our house and Brian agreed to come on the show to talk about it.
Stay tuned, please… it’s a matter of big bucks down the road.
The Cash Kid Podcast is underway!
Intro tease:
So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday. Here you go, sweetie. Thanks, Grandma.
Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.
Time to learn how to be a cash kid.
So joining us today is Mr. Brian Feroldi. Brian is a financial educator, podcaster, YouTuber, speaker, writer and author. Mr. Brian’s vision is to spread financial wellness, which is exactly what us Cash Kids need. Welcome to the show Brian. And first off, tell us a little bit about yourself.
Brian Feroldi: Well, thank you for having me. It is a true honor to be here. I myself graduated from college in 2004 and I really put that down as the mark of the start of my money journey. Prior to that, I was taught absolutely nothing about about money growing up, despite graduating with a degree in business. I was taught next to nothing about personal finances.
I was taught next to nothing about the stock market, about compound interest, about the basic principles of spend less than you earn, invest the difference, and grow your wealth. Now, after college, my dad handed me a copy of a very popular book back in 2004 called The Rich Dad Poor Dad, by Robert Kiyosaki. And that book was the first book I ever read that opened my eyes up to the idea that anybody can build wealth.
Anybody can become wealthy in one generation. And importantly, rich people think differently about money than middle class people, and poor people do. And that book opened my eyes to the power of compound interest, introduced me to people like Warren Buffett and Peter Lynch. And that really kickstarted a love affair with everything related to money, personal finance and investing that continues to this day.
So for the last 20 years since I launched that book, I have been doing everything in my power to educate myself and take that information, to educate other people about how to do better with their money.
Cash Kid: All right. That's amazing. So first off, tell us about your book, “Why does the stock market go up?”
Brian Feroldi: So I have been voraciously reading books about money and investing for, again, the last 20 years. One question that I always had about investing in the stock market is that lots of books I read essentially said the same thing. The stock market is the greatest wealth creation machine ever. The stock market grows at a compound annual growth rate of about 10% per year.
And every time the stock market crashes, don't worry, that's the time to buy. The stock market will always come back. I bought that hook line and sinker. However, I didn't understand a fundamental question despite reading those great books. And that was I could see the long term chart that showed the U.S. stock market going up and to the right continually for decade after decade.
But it was never explained to me why that happens. And I was always taught as a kid, what goes up must come down. So every time the stock market crashed, as it did in the year 2000, as it did in the year 2008, as it did in the year 2020, I always thought, Well, that's it. It's crashing. Why on earth would this stock market come back and continue on to a new high?
So I wanted to answer that question fundamentally for myself and really get into the crux of why. Why does the stock market go up? So that was the that was the reason that I wrote the book, is that no such book like that existed.
Cash Kid: Yeah. You cover a lot of topics in your book, but today we want to refocus on the financial term, compound interest. What would be the basic definition for compound interest?
Brian Feroldi: Well, I think Benjamin Franklin has the best definition of compound interest ever. And he said money makes money, and that money makes money. And that money makes money. That's the simplest way to describe compound interest. It's the idea that if you can invest your money and grow it on a percentage basis over time, the interest that you earn on your money earns interest itself, which earns interest itself.
And the net effect of that is that the total amount of wealth that you have grows at a faster and faster rate over time. To take a really simple example, let's pretend we invested $1,000 in the stock market and we earned 10% per year. Well, after one year we'd have $1,000 of our initial principal, plus $100 in gains.
Then if we did that one more year, we would have $1,210 in gains. That extra $10 is interest on our interest from year one. And if you play that forward year after year, the interest that you earn on your interest actually becomes a bigger figure than the initial amount that you invested.
Cash Kid:
Yeah. So what do you think people most likely misunderstand about this topic?
Brian Feroldi:
Yeah, it's one of the hardest things for our brains to wrap their head around is the long term effects of compound interest. One of the most famous investors of all time is a guy named Warren Buffett. If anybody has ever heard of him, Warren Buffett is one of the ten richest people on Earth. He's worth over $100 billion.
And what makes Warren Buffett so unique? He's the only one of the only people on the rich list of the richest 100 American people in the world that got there primarily through investing. Warren Buffett is 93 years old. And again, he's worth over $100 billion. And what's so fascinating about that is that 99%, 99% of his net worth came after he turned 55.
99%. So when he was 30 years old, he was probably only worth a couple of million dollars. A lot of money in absolute terms, but that's not a hundred plus billion dollars. So humans have a hard, hard time conceptualizing how big numbers can get after you multiply them out over a period of time. I have a really quick riddle to showcase this in principle.
Centuries ago in China, somebody asked the King for a very simple, very simple favor. He said, Take out a chess board. Okay. And on the first and the first checker, I want one grain of rice. And all I want you to do is double the grains of rice for each piece on the chess board. And the king thought about it for a second, and he didn't agree to it because while it started out one grain of rice that doubled the two, that doubled to four, that doubled to eight.
By the time you got to the end, it was more than all of the all of the rice in the entire world could produce combined. So that's really hard for our brains to conceptualize that things get bigger over time when they compound.
Cash Kid:
Yeah. So how does the stock market compound?
Brian Feroldi:
Yeah. So if you look back historically at the returns of the United States stock market, as represented by something called the S&P 500, the long term returns of the market are about 10% per year, meaning that your money compounds at about 10% per year. How does how does that happen? There's a couple of factors that cause that 10% compounding to occur.
Thing number one is population growth. Each year the population of the United States and the world grows by about 1 to 2% percent. Not an absolute number like a million or 10 million. On a percentage basis, the population gets 1 to 2% bigger. That means that there are 1 to 2% more consumers each year around the globe that are buying goods and services from companies.
Second, each year, American companies get 1 to 2% more productive. Product productivity is an interesting word. What that basically means is that we can produce the same or more goods or services with fewer and fewer inputs. So think about 40 years ago. Were there any robots or were there any computers in manufacturing? No. But if you look at factories today, here's lots of robots and there's lots of computers. Which makes productivity go up dramatically. So we can create more and more goods with fewer and fewer inputs in any given year. It's the differences are subtle. 1 to 2%. But when you grow that over a period of years, that leads to huge gains in the profit of profits of companies.
The third thing is something called inflation, and that is just when products and services get more expensive on a dollar basis over time, that that's about a1 to 2 percent. And the final one I'll throw out there is global expansion. Each year, hundreds of millions of people go around the world, go from being in the poverty state or being very, very poor to being middle class.
As their wealth increases, they can buy more and more goods from companies around around the world. So that increases the total pie that companies can go after. So each of these things are small, very, very small, almost in imperceptible in any given year. But when you add them up together and when you grow them over a long periods of time, that increases company profits at a compounding rate, which in turn increases the stock market at a compounding rate.
Cash Kid:
Couldn’t have said it better myself. Let's bring in another term and that's a dividend. What is a dividend?
Brian Feroldi:
Dividends are a wonderful thing to to to learn about. Every year, American businesses or lots of businesses around the world. They make a profit. A profit is simply what revenue you make minus all of your costs of the business. Businesses exist primarily to generate profits. What those companies do with those profits is entirely up to the companies. There's lots of things that they can do with the profits that they make.
They can reinvest in themselves and hire more engineers, build more factories, open up new new geographies. They can pay off debt if they've borrowed money. They can reduce the amount of debt that they have. They can buy other businesses. That's called an acquisition. They can repurchase their own stock from the investors. The final thing they can do is if they have no better use of that money, they can just give it directly, give that cash that profits back to their shareholders.
And when they do that, that is that is called a dividend. And you can think of a dividend. Kind of like the way you think of the interest rate on a bank account. You put your money into a bank and the bank pays you 5% interest. Well, if you have $100 in there, you're going to make $5 per year in an interest income with a stock instead of calling it the interest rate.
We call it the dividend yield, and that is the cash payments that you get for every every hundred dollars that you have invested in a stock. So a dividend is very similar to interest from a bank.
Cash Kid:
Yeah. Now, how do dividends play a role in compound interest?
Brian Feroldi:
If you look back historically, dividends have played a huge role in how the stock market returns that 10% per year. Those other factors that I listed before, such as inflation, productivity, population growth and premiumization around the world, those account for about 6 to 8% of the 10% that investors earn on their money over time. Dividends have historically accounted for about 2 to 4% of that total return.
So dividends are actually a really critical component of a way that investors can get that 10% compounded return as the cash comes in through owning dividend paying stocks. Those dividends are reinvested back into the company to buy more shares. So dividends are a really, really important way to generate compounding wealth in the stock market.
Cash Kid:
In your book you said like I forgot the guy's name, but it's like he invested 400. Was it per month?
Brian Feroldi:
Absolutely. I have a really simple example of a guy named Aaron. It's a fictional character in my book who invests $100 per week into the stock market. And you're right. The difference between if Aaron took the money out, if he spent the dividends that he had versus reinvested the dividends. It doesn't seem like that much in any given year, just like 2 to 3% spending versus reinvesting.
But over a long period of time, it actually leads to millions, millions of extra dollars in your bank account.
Cash Kid:
Yeah. What should kids my age understand about the impact of compound interest in early investing?
Brian Feroldi:
Yeah. I am a huge fan of teaching. Teaching these kind of concepts in school. I would highly suggest that every kid out there go to the internet and type in compound interest calculator and do a simple calculation of what $100 invested in the stock market $100 a month could become if you invested it for ten years, for 20 years.
For 30 years, for 40 years and more. A lot of people's eyes really open up when you showcase that a small amount of money invested consistently into an asset that compounds can literally become millions of dollars in their lifetime. And the best way to take advantage of that is to start shen you are young. T he younger you can start the, the more time you have on your side and the bigger your wealth can grow.
So I wish that I could teach every kid in America or every kid in the world the power of compound interest.
Cash Kid:
Yeah, you say on the front cover of your book that this book has everything you should have been taught about investing in school, but weren’t. So what's your thought on the access of the amount of financial education or information provided right now?
Brian Feroldi:
When I was a kid. I was in school primarily in the eighties and nineties. Financial literacy or teaching these basic concepts was essentially nonexistent. And to be fair, it was never part of the school's criteria. So a lot of the teachers out there themselves weren't taught these basics financial concepts. I think it should absolutely be mandatory. Mandatory that you should learn about basics of personal finance, basics of investing before you graduate from high school.
And I think you should be taught these basic principles starting in elementary school. They should be reinforced in middle school, and they should be really reinforced in high school and throughout college. Now, the good news there is that there is progress on this front. Many U.S. states now require that people take personal finance lessons before they graduate from college in my home state of Rhode Island.
This bill, this was actually introduced just a few years ago that high school students must take a personal finance class before they can graduate. Dozens of other states have also followed suit. I would love it if it was instituted at the federal level, but until that happens, it's every parent's responsibility to make sure their kids are taught sound investing and money principles before they head off on their own.
Cash Kid:
Yeah, I mean, like, that's why we're here right now doing this interview, just to be able to reach more kids and teach them about compound interest. Is there anything we haven't asked you that you want to share with our audience?
Brian Feroldi:
Well, I think that you've done a fabulous job reading the book, researching and answering questions. And I think that what you are doing with the Cash Kids podcast is really, really fantastic. So I would say you did an excellent job covering the covering the basics, and I would really encourage people to go back and listen to your other podcasts too, so they can educate themselves.
Cash Kid:
And maybe last and a quick answer.
What's at stake by not understanding compound interest?
Brian Feroldi:
The answer there is unfortunately, your financial future. If you can understand the power of compound compound interest, you can in one generation go from being born poor or middle class to ending as ending as a rich a rich person. And like it or not, money affects every aspect of our lives. It affects where you live. It affects the education you can get.
It affects whether you can go on vacation. What kind of life experiences you have, what kind of automobile you can have if you can have health insurance or not. So money is the fuel that enables you to have a great life. So money impacts your life whether you want it to or not. And if you can learn about compound interest in harness is power.
You can make money. You can have all the money you will ever need in your life.
Cash Kid:
Yeah. Mr. Brian Feroldi we appreciate your time and expertise. Please check out his book called “Why Does the Stock Market Go Up?” on Amazon. And Brian has created a website called https://stockinvesting.school/. And if you go there, he has a free five-day email-based course that you can enroll in. And over the course of five days he’ll teach you a lot of the basics that are covered in his book for free.
Cash Kids, we have more terms, discussions, and skills to learn. Thank you for tuning in to this episode. If you have a question, please, reach out to me at [email protected] and I’ll answer it in a future episode. You can also reach out via our website at cashkidpodcast.com.
Follow us on Instagram and wherever you are listening, leave a review! We need your help reaching a larger audience and building the financial skills of the next generation.
Cash Kid, out!
-
We gotta pay taxes, what!?! Many kids are shocked to learn just how much is taken out of that first paycheck. In this episode, we break down the basics of what are taxes, why we pay them, and what's with all those "W" forms. Oh, and who is Uncle Sam? Let's talk taxes in this episode of the Cash Kid Podcast. Learn more about your ad choices. Visit megaphone.fm/adchoices
TranscriptThere are only two certains in life…. death and taxes. - Said everyone as I’m told it’s a pretty old joke.
What are taxes, who pays them, why are there so many W forms involved, and why do we pay taxes?
Oh, and who is Uncle Sam?
Well, you’re about to find out in this episode of the Cash Kid Podcast. The Cash Kid Podcast is underway!
Intro tease:
So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday. Here you go, sweetie. Thanks, Grandma.
Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.
Time to learn how to be a cash kid.
Okay. So let's talk about taxes. I hear this topic causes a lot of anxiety in adults. I'm hoping we can educate my generation about it earlier to have a better understanding of it and maybe develop less anxiety.
Joining us today is Joe Proffitt with Dark Horse CPAs. Mr. Proffitt, welcome to the show.
Joe Proffitt:
Hey, great to be here, Cash Kid. I very much appreciate the time. And I agree if we can start talking about taxes younger, maybe I wouldn't have freaked out about them when I got to be an adult as well.
Cash Kid:
Yeah. So welcome. And first off, just tell us a little bit about yourself.
Joe Proffitt:
Sure. I'm a CPA based out of Little Rock, Arkansas. I work with clients all over the country, from small business owners to individuals that don't necessarily own a business but need help with their tax planning and filing. And the main thing for people to do what I do. Basically, the U.S. tax system is complicated and sometimes you need a little bit of help and things get to be more than you can handle on your own.
Cash Kid:
Yeah. So what does Dark Horse CPAs do for its clients?
Joe Proffitt:
Great question. So Dark Horse specializes in serving small business owners. Specifically, we provide tax and accounting services ranging from basic bookkeeping to what we refer to as CFO engagements. We essentially help business owners compile their financial information and put it into a format that allows them to know where they're at financially to help them with projections as needed, or on the side of the tax work we do, compliance work with the basic business tax filings or just essentially try to help make sense of the really complicated tax structure we have here in the U.S..
Cash Kid:
All right. Let's talk about taxes, Mr. Proffitt. We’ll, start simple. What is the basic reason why we pay taxes?
Joe Proffitt:
Great question again. So taxes provide money to the government so that they can provide services for we the people. In an ideal world, taxes provide a range of services, whether it be assistance for individuals needing a little bit more help provides money for constructed roadways. Essentially, taxes are the way the government gets money from its citizens so that it can continue to function as the government.
Cash Kid:
What all do we pay taxes on?
Joe Proffitt:
Pretty much anything that you're going to spend any time you spend money or receive money, you're probably going to be subject to some sort of tax. So you get sales tax on groceries, cars. You have various tax for major purchases like a home purchase, you pay property taxes, or when you do own various pieces of personal property. So the major categories of taxes across the U.S. are going to be your income tax, your property taxes and your sales are what we refer to as excise taxes.
And the sales and excise is based on things that you actually go out to purchase and are based on the usage that way.
Cash Kid:
In episode one of of season 2, a financial teacher at a local high school stated a lot of his students were shocked when they got their first pay check to see how much they paid in taxes, leaving them with a lot less than what they thought they would take home. Can we break down the different taxes in what we pay for and why we pay them from our paycheck?
Joe Proffitt:
Absolutely. And I remember it hurt my feelings the first paycheck I got and when I was a kid, seeing how much they hold out. And so when you receive any anyone that goes out and works for an employer and receives a paycheck, they're going to have your federal income tax withholding, state where it actually occurs depending on where you live.
And then you're going to have additional taxes that we refer to as FICA. And what FICA is, that’s FICA, is the Social Security and Medicare tax withholdings. Now, the federal and state can vary, but FICA is based on set percentages and it goes into the Social Security system and the larger Medicare system. It essentially helps provide Social Security income and Medicare coverage for the elderly and people that are in that retirement phase.
Cash Kid:
Ok, we pay taxes buying everyday things and in our paychecks. So why do we have to file our taxes every year in April?
Joe Proffitt:
I ask myself that same question all the time. Now with if you have a straightforward tax situation, say you receive a W-2, you just work one job, you receive a W-2, then a lot of the time, the way tax withholding works, it's an estimate of what your actual tax is going to be for the year because we we don't all pay a flat tax based on the income that we have.
So throughout the year, the withholdings from our checks for the income tax piece is a guess at what our year in income is going to be and what tax bracket we go in. Basically, the more income you make in the U.S., the higher your tax rate as the income level goes up. So we file tax returns at the end of the year to confirm exactly what our taxable income was for the year, to take advantage of any tax credits that are on there to report any income that wasn't otherwise reported, say, if you're self-employed or if you're operating, say, a lawn mowing business, if you're wanting to make some extra money on there. And that's where we get to either true up to pay in what we owe additionally to the IRS or request a refund if we overpaid throughout the year. The point at which we get even with the IRS or the state that we're filing in.
Cash Kid:
And maybe Mr. Proffitt just if you can explain quickly, what's a W-2?
Joe Proffitt:
Right. Gotcha. And just to clarify, a W-2 is a year in tax form that goes out by the end of January every year for anyone that receives a paycheck from an employer. So if you go and work in part time job or if you're a full time employee of a company, you're going to receive a W-2. So anyone that receives a regular paycheck with tax withholdings, you'll receive a W-2 at year end, and that's what you use to file your taxes.
Cash Kid:
Yeah. So are there tax benefits that teens and college students can take advantage of that will allow us to get a bigger refund?
Joe Proffitt:
That is a really good question. So with teen college students there, if they are providing their primary support, there are various educational tax credits, two specific ones to pay attention to are the American Opportunity Tax Credit and the lifetime learner tax credit, and whether they apply for those on their individual return, if they file and support themselves or if they're still being supported by their parents and listed as a dependent, they're that's a great resource for those people as well, whether, again, whether they're still on their parent's taxes or if they're independent and filing on their own.
For teenagers, the the majority of the time, the best thing for teens is to just make sure that you have sufficient withholding. The standard deduction when you're a dependent is lower than if you're an adult earning the same wages. But most of the time, what I see with kids that are working part time jobs, you'll usually have good withholding that you end up getting a refund.
So honestly, the best thing to do is just make sure that you fill out. Actually, we need to take a step back for a moment. Whenever you first go to work for an employer, you're going to fill out a form. A W-4, and I know I'm talking about a lot of W forms is something that whenever you go to work for an employer, they're going to hand this to you and expect you to know how to fill it out.
And what it tells them is how much to withhold on your taxes. And for the vast majority of teens that are out there working a job, you're going to want to put single and zero on this W-4 form because that makes sure that you have the most held out of your check that you can and really that's the main trick to it is just making sure that you have sufficient withholding.
Cash Kid:
Do tax laws and regulations change a lot, making it harder for the everyday person to keep up with the rules?
Joe Proffitt:
So year after year we'll have a few minor changes here and there. And every so often we have a major overhaul of the tax system. There was one that occurred back in the 1980s, well before, well before your time, but there was an additional big tax law change back in 2017. Most of the time it's pretty business as usual other than specific changes with various different tax pieces.
And that's where people like me come in because my career is based on staying up to date on any tax law changes. And that's why that's why the accounting profession exist in the first place, at least from public to to help people keep up with tax law changes and make sure they're taking advantage of everything that is allowed to them.
Cash Kid:
What advice do you give your clients when dealing with taxes?
Joe Proffitt:
Preparedness, Proactive planning is the best. Is one of the best resources that you have. Just finding an accountant that you feel comfortable communicating with and having an issue that I see often working for various clients is that they come through. We file their tax return, but there's not very much we can do once we're outside of the year.
So honestly, just proactive planning during the year is one of the best, best benefits that or the best advantage that anyone can take when it comes to tax compliance. Making sure that you don't pay more than you actually are required to pay in your taxes.
Cash Kid:
Yeah. I don’t want to pay more than required for sure.
Is there anything we haven't asked you that you would like to share with our audience?
Joe Proffitt:
Something to bear in mind whenever for your audience. I mean, anyone listening here is going to have a more entrepreneurial spirit, and I admire that very much, especially at such a young age. I will say that there is a difference in going to work the way you're paid, in the way you pay taxes when you receive a paycheck, meaning that you'll get a W-2 at the end of the year, your taxes are withheld from your check during the year.
Now, if you go out and are operating as an independent business, basically like a like a small business owner would where you're not receiving a paycheck, then you may have to make tax payments throughout the year on your own. And if you get to that point, then definitely you'll want to either reach out to your parent or guardian, someone that's at least got access to the resources that you'll need or potentially even reach out to an accountant just in order to get a little bit of additional information.
Because there's one one specific tax when you're self-employed, it's called self-employment tax. And it can be a big, nasty surprise for people when you go from receiving a paycheck to working for yourself. And so that would just be one of the main pieces, I would say, for anyone that's wanting to strike out to business on their own.
Yeah, I'm sure.
Cash Kid:
I was going to say is an example like let's say a kid runs a lawn mowing business. Would they need to keep like a book of their expenses and jobs?
Joe Proffitt:
So you'll need to keep track of the income that you're receiving from your various customers. And you'll also, especially want to keep track of any expenses that you have. So we're talking gas purchases, any additional equipment that you buy, any repairs that you have to pay for, because these are the things that reduce what your taxable income is.
If, let's say, a child or a you know, let's call it business owner, call it what it is, they make $10,000 in a year and that's their gross revenue, what they received from their customers. You'll want to have a listing of all of those expenses that you paid. Otherwise you're going to end up paying tax on the full amount of that 10,000 that you made, even though that's not the money that you kept, You had $3,000 in expenses.
So really, you should only pay tax on $7,000 and great resources are out there for keeping track of your expenses. To start off with a smaller business like that, I recommend spreadsheets. Whether you're you prefer Excel, Google Docs, whatever your preferred spreadsheet platform, it will just make life much easier for you. And when it comes to expenses, you want to list who you paid, when you paid them, what it was for and how much it was.
And that's the kind of information that you'll send to your account accountant a year end, and then they can put together your business filing.
Cash Kid:
Mr. Joe Proffitt, we appreciate your time and your expertise. Thank you for joining us on the Cash Kid Podcast and advancing the financial knowledge of the kids everywhere.
Joe Proffitt:
Absolutely has been a great pleasure and let me know any time you want me to come back.
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Now back to the question on who is Uncle Sam? Have you heard this before? Uncle Sam looks like an older man with white hair and beard, in a top hat, pointing at you. Just Google it Cash Kids. It’s a personification of the United States of America or more specifically, the internal revenue service IRS.
During the War of 1812, the United States Army received supplies from a variety of organizations and individuals, one of which was Samuel Wilson, a meat packer from Troy, New York. He labeled his barrels of beef with “U.S.” to indicate U.S. government property, but soldiers referred to the “U.S.” as Uncle Sam.
So when you hear someone say, “Uncle Sam is gonna get you eventually.” They very well could be talking about tax season, and how the government or “Uncle Sam” will get those tax dollars from you one way or another.
Cash Kids, we have more terms, discussions, and skills to learn. Thank you for tuning in to this episode. If you have a question, please, reach out to me at [email protected] and I’ll answer it in a future episode. You can also reach out via our website at cashkidpodcast.com.
Follow us on Instagram and wherever you are listening, leave a review! We need your help reaching a larger audience and building the financial skills of the next generation.
Cash Kid, out!
Disclaimer:
The information presented represents the views and opinions of the guests. This show does not intend to provide personal investment advice through this podcast. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids, definitely your parents first before investing.
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