In this episode, Robert Brokamp, CFP, discusses the importance of teaching kids about money and investing. They cover topics such as financial priorities, involving kids in financial discussions, teaching kids about investing, managing money as spouses, and the challenges of investing with kids. They emphasize the value of starting early with financial education and teaching children the importance of saving and investing for the future.
Teaching children about responsible spending and personal finance is crucial for their future financial decisions.
Involving children in the process of investing and saving from a young age can help them develop important financial skills.
Diversification and setting rules around selling stocks are essential strategies when investing with kids.
Deep dives
Starting a Podcast with Spotify for Podcasters
The podcast episode discusses Spotify for Podcasters, a platform that allows easy podcast creation, distribution, and monetization. Users can record and edit podcasts directly from their phones or computers, and then distribute them to Spotify and other podcast platforms. The platform also supports video podcasts. Various monetization options are available, including advertising and podcast subscriptions. Brokamp shared his positive experience using Spotify for Podcasters for his own podcast. Resources mentioned include books such as 'The Opposite of Spoiled' by Ron Lieber and 'Make Your Kid a Money Genius' by Beth Kobliner, as well as children's books by Sheila Bair.
Involving Kids in Investing and Saving
The conversation revolves around how to involve children in the process of investing and saving. Tips are shared on when and how to start talking to kids about money, teaching them about earning money, setting up brokerage accounts for kids, and demonstrating the power of compounding by showing them their investment growth over time. It is suggested to let kids make their own investment decisions and learn from their mistakes, while also striking a balance between saving and enjoying their money. Ron Lieber's book 'The Opposite of Spoiled' and Beth Kobliner's book 'Make Your Kid a Money Genius' are recommended resources.
Teaching Responsible Spending and Personal Finance to Kids
The importance of teaching kids about responsible spending and personal finance is emphasized. The significance of laying the groundwork for financial skills like budgeting, delayed gratification, and differentiating between wants and needs is discussed. Anecdotes and strategies are shared, including the idea of involving kids in family financial conversations, being open about finances without stigmatizing spending choices, and helping kids understand the connection between earning power and financial independence. The goal is to equip kids with the necessary personal finance skills to make informed financial decisions in adulthood.
The Challenge of Investing with Kids
The challenges of investing with kids are explored, including the potential disappointment when investments don't perform well. Diversification is highlighted as a key strategy to mitigate risks and avoid potential losses. The importance of setting rules with kids regarding when they can sell stocks and what valid expenses are is discussed. The significance of preparing kids for investment decision-making once they gain control of their accounts and emphasizing the long-term benefits of investing is also addressed. The need to have open conversations about potential pitfalls and mistakes in investing is emphasized.
Final Thoughts and Advice on Investing with Kids
The conversation closes with final thoughts and advice. The idea of not letting perfection be the enemy of progress is emphasized, encouraging parents to take action and start teaching their kids about money and investing. Resources mentioned include books like 'The Opposite of Spoiled' by Ron Lieber, 'Make Your Kid a Money Genius' by Beth Kobliner, and children's books by Sheila Bair. The importance of having open conversations about earning money, saving, and investing is reiterated, along with the value of financial independence and teaching kids personal finance skills from an early age.
After listening to last week's episode (part one in this two-part series) you should be well on your way to investing for your kids, grandkids, or whatever weirdo child that's important in your life. This week, Jeff and Jason continue their conversation with Robert Brokamp, CFP ®, tackling the much more complicated topic of investing with your kids. Some highlights include the important subject of personal finance, including the value of talking to kids about the importance of earning and spending money, not just saving and investing it.
In the second part of the show, Jason and Jeff discuss their reactions to the conversation with Bro, and share their own experiences with their own kids.
Companies mentioned: HD, SBUX
Resources mentioned:
The Opposite of Spoiled, by Ron Leiber
Make Your Kid a Money Genius by Beth Kobliner
Money Tails (Book Series) by Sheila Bair
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