How To Raise Your Kids To Become Highly Successful & Fulfilled / Scott Donnell
Aug 7, 2023
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Scott Donnell, founder of GravyStack, discusses raising financially literate kids in the modern world. Topics include harmful money lessons parents teach, value creation in children, financial conflicts in homes, teaching kids about money, and leaving a lasting legacy.
Teaching children to create value in the world sets them up for success and helps combat entitlement, anxiety, self-doubt, laziness, and victimhood.
The traditional education system should focus on fostering value creators and teaching children critical thinking, problem-solving, and entrepreneurship skills.
Deep dives
Teaching Kids to Create Value
The podcast episode discusses the importance of teaching children to create value in the world. Instead of prioritizing popularity and superficial aspects, the focus should be on helping kids understand their unique gifts and talents and using them to create real value. This approach not only sets children up for success but also serves as an antidote for entitlement, anxiety, self-doubt, laziness, and victimhood. The podcast emphasizes the need to shift the education system's focus from assembly-line learning to value creation. By teaching kids to solve problems, fill needs, and add value from a young age, they can develop the entrepreneurial mindset necessary for success in the rapidly changing world.
Three Types of Value Creation
The podcast highlights three types of value creation discussed in the book 'Value Creation Kid'. The first is material value, which involves creating and producing something that solves a problem or fulfills a need. The second is emotional value, which emphasizes how individuals think, feel, and help others think and feel. By treating others with kindness and empathy, kids can increase emotional value in those around them. The third type is spiritual value, which involves connecting people to something greater than themselves and helping them find purpose beyond their personal interests. These three types of value creation, when focused on and nurtured in children, can lead to their overall success and well-being.
Challenges with the Education System
The podcast raises concerns about the traditional education system and its limitation in fostering value creators. The system often prioritizes grades, degrees, and job prospects over teaching children how to create real value. It promotes a mindset of following rules and meeting predetermined standards, rather than cultivating problem-solving skills and entrepreneurship. The podcast argues that the education system needs to be more focused on preparing children to extract and create value, to think critically, and to view the world through an entrepreneurial lens. It also suggests that parents play a crucial role in guiding children toward value creation and promoting financial competency.
Redefining Allowance and Building Financial Competency
The podcast challenges the traditional approach to allowance and highlights the importance of creating a home economy to teach financial competency. It criticizes the common practice of giving children money for free, as it doesn't teach them the value of money or the importance of creating value to earn it. Instead, it suggests setting up an expectation in the home where children understand the connection between work and money. The podcast also addresses the problems of paying children for routine chores that they should be responsible for without monetary rewards. It emphasizes the need to attribute specific value to the work children do and to teach them the principles of budgeting, saving, and investing. By adopting these practices, parents can help children become financially competent and independent.
On this episode of the BetterWealth Podcast, I'm interviewing Scott Donnell, the founder of GravyStack, an educational app and game for children and teens to develop highly successful financial skills and understanding.
I talk with Scott about what it takes to raise financially literate kids in the modern world and some of the most harmful lessons parents teach their kids about money.
