Scott Pape, the Barefoot Investor, shares his advice on finances, including how to handle financial trouble and instill good habits in kids. He discusses the importance of teaching kids about money, giving, failure, and investing. Scott also emphasizes the correlation between time and parenting, emphasizing the significance of starting early and cherishing present moments.
Cherish the present moments with your children and focus on creating memories rather than material possessions.
Family dinners play a vital role in building stronger relationships and academic achievement by promoting communication and connection within the family.
Teaching kids financial literacy from an early age through the allocation of pocket money in three jars: splurge, smile, and give, to normalize financial behaviors and instill philanthropy.
Deep dives
Importance of Spending Time with Kids
Scott Pape emphasizes the importance of cherishing the present moments with his children, referring to them as the 'good old days'. He values spending quality time with his kids on their farm, engaging in activities such as planting trees and tending to animals. He believes that investing time in their upbringing and creating memories is more valuable than material possessions.
Family Dinners and Their Significance
Scott Pape highlights the importance of family dinners in building stronger relationships and fostering academic achievement. Research has shown that family dinners have a positive impact on children's overall well-being and performance. Pape encourages engaging in conversations during mealtimes and implementing rituals, such as sharing high and low points of the day or playing games like 'Holly Buffalo', to promote communication and connection within the family.
Teaching Financial Literacy through Pocket Money
Pape discusses the significance of teaching kids financial literacy from an early age. He suggests allocating pocket money in three jars: splurge, smile, and give. The splurge jar encourages kids to enjoy spending, the smile jar focuses on saving and teaching wise purchasing decisions, while the give jar instills the value of philanthropy. This method helps to normalize financial behaviors and build a foundation of financial confidence in children.
Encouraging Entrepreneurial Skills and Investments
Pape emphasizes the importance of nurturing entrepreneurial skills in children by encouraging them to start small businesses. He shares examples of children with lemonade stands, lawn mowing services, and other creative ventures. Additionally, Pape recommends introducing kids to the concept of investing, even with small amounts, to normalize and build confidence in money management from an early age.
The Need for Financial Education in Schools
Pape expresses disappointment in the lack of financial education in schools and his failed attempts to introduce it. He highlights the importance of teaching life skills related to money and encourages parents to take the lead in providing financial education to their children. Pape believes that building financial confidence in children at a young age is crucial for their long-term financial well-being.
Scott Pape, or perhaps as he’s better known The Barefoot Investor, has been teaching Australians about finances for almost 20 years. These days he’s also investing heavily in his 4 kids - and he’s got some great advice for all of us.
Scott tells Hame about his mantra that “These are the good ‘ol days” and explains how it helps him stay focused on what matters most to him. He gives some simple yet powerful advice about what to do if you find yourself in financial trouble. And he helps Hame out of the deep hole he’s dug himself with pocket money.
Scott is of course the best selling author of The Barefoot Investor series of books, and his latest Barefoot Kids has been very popular in our households. However, what you might not know is that he is also now a financial counsellor. So if you find yourself in real financial strife and you give the National Debt Helpline a call on 1800 007 007, there is a chance you might chat with him and he or a colleague can help you navigate your way through it.
Big thanks to Scott for making the time to chat!
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And big thanks for HERTZ - our exclusive season 2 sponsor. Thanks to Hertz, we are able to bring you all these great conversations. And just like us, Hertz are all about making memories and having adventures. So if you need a great car to complete your next family getaway, head to hertz.com.au/hodd for a great discount. Terms and conditions do apply. See the website for details on these, as some exclusions do apply.
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