This episode, I look at why the lessons from Rich Dad Poor Dad are so important, why we need to talk to our kids about our savings, and how to get your kids interested in saving early.
Rich Dad Poor Dad has some invaluable lessons about the importance of parenting and having the right money mindset.
This “Money With Mak and G” podcast episode, I go over the main lessons learned from the book, why each one is so important, and the power of saving early…
“Spend less than you earn, acquire assets, make your money work for you, increase your financial knowledge and remember your mind is your biggest asset.” – Ben Jones
00:06 – Why Rich Dad Poor Dad was so impactful for me.
00:40 – The highlights of Rich Dad Poor Dad.
01:53 – Talking to your kids about your savings.
02:19 – Different assets you can acquire.
Connect with Ben Jones:
Welcome back. One of my favorite books is Rich Dad Poor Dad, because I saw the same thing in my family. A father with little financial skills, but… I didn’t have a mentor, so I turned to books.
Rich Dad Poor Dad is a great book for me because it resonated with my situation. After seeing those who succeeded, many had help. A coach, mentor, involved parents or family, friends or others. My sister is still mad at my high school baseball coach. I was very talented, but he wasn’t a good coach. She always wondered what might have been.
The highlights of Rich Dad Poor Dad are worth mentioning again, because it’s about getting the ideas top of mind. The biggest “M.’” word out there for money is MOTIVATION. If you’re motivated, you can conquer the world, so here goes:
Spend less than you earn
Make your money work for you
Increase your financial knowledge and
Remember your mind is your biggest asset
I’m 100% sure you’ve heard some, if not all of these lessons. But condensing the thoughts so you can live by them is another story. If you haven’t done it, what are you waiting for? Start with a small change, which ends up big. Do you know if I took the money I would’ve used for a Venti Vanilla Latte from Starbucks and put it in the stock market at its historical growth rate, my kids would have over 4 million dollars before they retire at 65? That’s a small adjustment. I’m not talking about sacrificing everything, but making choices. You better believe we’ll get a Starbucks every once in a while, just not every day.
Have you ever shared with your kids how much you save? Do they have any idea? Do you give them any guidance? Is it 10%, 20% or more? Mak & G know that if we don’t save anything we can’t go on a vacation, save for retirement or buy something we want. We save a minimum of 10% and shoot for 20. And, it hasn’t always been easy.
If you haven’t done it already, it’s time to start having fun discussions about assets you’ve acquired or want to acquire. We’ve talked about stocks and bonds. Stocks can be an easy and fun discussion. I remember when they started. They asked who owned Best Buy or the local pizza joint, or they asked who made a particular toy. Ask them about what products they like? Video games? Restaurants? Clothes? Computers? See if they can name the company, and the stock symbol.
The symbol Y-U-M…yum owns Kentucky Fried Chicken, Taco Bell and Pizza hut.
How about F-U-N, FUN?
Or L-U-V, love?
It only takes a second with a smartphone or ipad to get a stock quote and see if they can tell you how the stock has been doing recently. When it’s fun, interesting and engaging, it helps to open their mind and make the subject more accessible.
It’s all about getting the conversation going. The more of these discussions you have will increase their knowledge and make them use their most important asset…. Their mind.
Thanks for listening and I’ll see you again next week for more Money with Mak & G.