ABCs of Money with Alan Akina - Lesson 1: 3 Income Sources Everyone Should Have

Good morning everyone and welcome to the ABCs of Money Kids. I am excited to be here with you today. Thanks for joining me on what we call the ABCs of Money with Uncle Alan. So let me introduce myself, uh, if you don't know me yet. I am the founder and CEO of one of the largest, one of the biggest financial education companies in our country. It's called One One Financial, but you can call me Uncle Alan. We're gonna have a lot of fun through this series. I'm very excited about the rest of the month of April. I'm gonna ask you to go get a notepad if you don't have one, a pencil or a pen, because this is gonna be kind of like school, but hopefully a little funner, more exciting. So get that notepad out, get some pencils, pens. We're gonna be working through this, this next 30 minutes or so. I'm gonna give you some things to think about, some things to write down, and then at the end, we're gonna give you some things to research. For all of you kids, as you pay attention, there's gonna be several things that I'm gonna do throughout class and throughout the rest of the month. So for all of you coming today, kids, I am actually— Uncle Alan is actually gonna give you my book. So I wrote a book that became a number one bestseller. At the end of today, our lesson today, I'm gonna give you a free copy of it that you can download right to your iPad that you're on or to your phone. Okay, so to do— to get this, you have to pay attention. All right, you got to pay attention to Uncle when he talks. Um, the other thing I want to do for you, I have some really fun giveaways. Okay, so I did this for my kids and I want to do this for you. So throughout the month, I'm going to be giving away gift cards. So these are gift cards, but not to shop at Amazon or Disney. These are stock gift cards where you can actually buy a piece of this company. So I have Disney here, I have Apple stock and Tesla. So I'll be giving out a few of these gift cards to my best students. Okay, kids, you got to be good. You got to listen. We got assignments. I want you to complete those assignments. And if you're doing good and Uncle knows about it, your parents tell me, Then I'm going to get you one of these so you can set up your own investment account. So when you're watching Disney Channel, you're like, you can tell all your friends in the 6th grade, like, I own a part of Disney. Okay. If you see somebody driving a Tesla, you can say, thank you for buying the Tesla because I just made some money. Or Apple, you see somebody on an Apple iPhone or they have a laptop, you can say, thank you for supporting my company. Okay. So we're going to have a lot of fun. I'm looking forward to teaching. And in fact, I think that's going to be lesson number 5, that I'm going to show you how to set up your own stock investment account with as little as $5. And so you can start to participate. Okay. What I want to talk about first before we get into everything is, is why am I here? Why am I here today? Well, I, I have this deep burning passion for financial education. I want to share with you some of my thoughts. Okay. Before we get in. So write this down. Here's one of the keys to my success, and I teach this to my own kids. So if you don't know Uncle Alan, Uncle Alan and my wife Auntie Leanne, we have 7 kids. We have a lot of kids. And one of the things we teach our kids, I want to pass this on to you so you can have this information, is that with education, I believe in getting the best academic education that you can, that's available to you, that will challenge you to do more. Okay. So So what I'm saying is do the best you can in school. Take the hardest classes. Challenge yourself. If you're in high school, take the AP class or 2. Take an honors class. If you're, if you're in elementary, take those after-school types of programs to really challenge yourself academically. That's number one. And if you combine that with what we call financial education, this gives you the formula for tremendous success, and I believe it lifts the ceiling. It takes the ceiling away from what you can achieve in life, okay? So remember this, academic success along with financial education, okay? Academic education, financial education equals tremendous success. Now, in the world of money, the way I look at it, and write this down, kids, money is a game, okay? Money is a game. I know a lot of you like to play games, and I'm sorry if I interrupted your games that you're playing. Uh, today, or you're on Fortnite or whatever, but we're gonna talk about money as a game. And, and here's what I believe, okay? There's 3 things I want you to write down for money as a game. Uh, the, the first thing is, in the game, you gotta know the rules. You have to know the rules of the game. So money— there's rules to money. There's certain things that you do to be successful. The second thing to be successful in this game is you have to develop the skills necessary To compete, you have to work on those skills to compete at a higher level and to be successful with money. And then the last thing, write this down: practice, practice, practice. You got to go out there and do it. You got to learn and get your hands dirty in the world of money. Okay, so remember, money is a game, and you're going to win some, you're going to lose some. But the key is to improve your skills, improve your knowledge, and keep trying. Okay, keep trying, and eventually you're going to start to win more than you lose, and you're going to keep winning, and you're going to keep winning, you keep winning, and at the end you're going to get that championship. Whatever that championship is for you, whatever success is going to be in your life and your future. I know it's still early on for you to decide what that is, but just know that you can win by doing these key things. Okay, so I want to thank all of our instructors at our company. We have over 1,000 instructors that teach at our company that made this possible. Everybody came together to be able to put this ABCs of Money together for all of you to be able to enjoy and to use. So if you're an instructor out there, thank you very much. I appreciate you guys. Now I have what we call the 3 income sources that you need to have, and this is going to be as an adult. But I want to frame it for you as, as a kid now in your early stages. So The reason why I'm starting with the 3 income sources is because of this. If we don't have income— so I call it money in, very simple— income is you being able to put money into your pocket. If we don't have money coming into our pocket, then we can't set a budget, we can't spend anything, we can't invest, we can't protect it. If there's no money in. So this is where our lesson and our journey in our financial life starts, okay? It's in money in, okay? Money in. Now there's 3 forms of money in, or 3 sources of income, and the first one I want to talk to you about is money from a job. So write that down, kids. Money from a job. Job. Money from a job is called a... Paycheck. Now this, the reason I listed this number 1, because this is the most common, okay? Most common source of money coming in is money from a job and getting a paycheck, okay? Now what I want you to do, kids, is I want you to write down, I'm gonna give you 1 minute, 60 seconds, I want you to write down as many jobs as it comes to your mind, okay? Ready? Go, start writing those down. As many jobs as you think. Okay, so there might be a fireman, or you might be thinking a doctor, or a television reporter, or a police officer. Think about jobs, right? You might be a pilot or an astronaut. You might work in social services. Think about all the jobs in your area, in your view, what your parents or family does. Keep writing it down. All right, 5 seconds. So, so kids, my last job was when I was in college. So I went to college on the North Shore of Oahu at BYU-Hawaii, and my last job was as a lifeguard for the surfing class. So it was actually kind of, kind of fun, but I've had many different jobs. I've worked for the Park and Rec. I used to work for McDonald's when I was in high school. I was a cook. I used to burn my arms. You know those hamburgers that you order? They're actually kind of hard to cook because you have to lay them out. They're frozen on the on the fire, and then they start cooking. You got to sear it. So they give you this like this metal thing looks like a little point pounder. You got to sear it, and the oils are splashing all over your arm. And That's what I did. I love cooking chicken nuggets, though. All right. So money from a job is number one. The second source of income I want to talk about is money from a business. Okay, so write this down. Business. Money from business is simply called business income. Okay, so you have business Business income. Now, for this next exercise, I want you to take a minute and we're going to write down as many businesses as it comes to mind. Okay? Think about in your area. So like there might be a McDonald's, that's a great business. There might be a store like a, like a Walmart or an Ace Hardware. There's millions of businesses. Now I want you to take this next Another 30, 40 seconds, and let's write down as many businesses as comes to mind. Okay, this is a challenge for you. Write those down. Keep writing. 5, 4, 3, 2. All right. Now I'll just quickly tell you about some. I own several businesses. I own 3 companies. One that I run full-time is One One Financial. And I own a couple of smaller businesses. My kids, my older boys started a business selling socks that turned into shoes flipping, and they, they did very, very well. They earned enough money to pay for some of their mission costs. They went on a mission trip. And so I'm going to talk about that in a future class on how to start a business. But a couple of resources to kind of get your mind stimulated. When you get a chance, so write this down in your notes. You can go to Google and then Google Inc. 500. So Inc. Okay, so Inc. Write this down. Inc. 500. Okay, so you write down Inc. 500. What this is is a list of like the top 500 fastest growing private companies in a matter of 7 years. One on One Financial grew to actually make the list of Inc. 500. So it became one of the top 500 fastest-growing companies in the entire country, and I did it without having to borrow money from a bank or get investors, just from my savings. That goes to show you don't need fancy offices or a lot of money to start a business. You just need a passion for what you do. And have a good idea and then be able to work at it, right? Businesses start from an idea, but they happen because you take action on it. Okay, so make that as an assignment. Put that down that I want you to research Inc. 500 later and look at the list, and then you're going to go around. I'm going to give you the assignment at the end. Okay, now the third income source that you're going to need to have is money from what we call investments. Okay, so write this down: investments. We call it invest investment income. Okay, so let me explain what an investment is. It's it's buying and owning an asset. What is an asset? An asset is something that that you own that will actually put money into your pocket. It'll help you to make money. It'll be what we call money in. So, so if you think about some investments, I'm going to give you 3 categories and we're going to give you that 60 seconds to write as many businesses as you can down. I mean, assets as you can down. There's 3 main assets that we want to talk about and investments you can make. Investments in stocks. So, so buying companies, investments in real estate. So buildings and houses and apartments and stuff. And then investments in businesses, businesses that you own a part of that produce income, right? They bring— put money into your pocket. So, so there's paper assets, which are like stocks and bonds. There's real estate assets like rentals and selling houses. And then there is business assets. So let's take a minute here and start to write down some investments that you can think of. And some of them already, you might already have some businesses, right? So one day you might want to own a McDonald's franchise or a Domino's, or you want to own that apartment building that's right down the road from you, or there might be a warehouse in your neighborhood. It's like, hey, if I owned that warehouse and these businesses would pay me rent every month, or maybe it's an office building and you rent to other businesses. Then, you know, you might buy a couple of different companies or invest in a couple of different companies that are really good that can bring money in. You're buying stocks, you're buying, you know, more Apple and stuff like that. So write, write those down. Okay. We're going to take a minute here and write down all the different types of investments that you can make. Okay, guys. All right. 5 seconds. Okay, I hope you got some investments down, and don't worry if you didn't get them all because we're going to come back to that in, uh, in just a second. Okay, so I want to review these things. Okay, we've got money from a job. So money from a job, we call it a paycheck. Money from a business, we call this business income. And then third is money from investments. Investments. Okay, these are— this is what we call investment income. And the goal as you get to become an adult is to be able to, to generate income from all 3. And I know that might sound impossible, but it's not. The formula is very, very simple. Okay, so I'm going to have my assistant zoom in here. I'm going to— I have a sentence here at the bottom of the page. Can you zoom in there? Okay, so Here's what we're going to do. The secret tip to get all three is you're going to start with a fill that in, kids. Fill it in with a job. All right. Fill that in with a job. So you're going to work. Okay. You have a job. You're going to make some money. Then you're going to take some of that money that you make. You're going to make sure you take care of it. Okay. That's called budgeting, and we're going to talk about that in. Lesson number 2 on Tuesday. Okay, how do you take care of the money that you bring in so you can have some of that left over and save that to start a business? Now with that little bit of money, and today you don't need a lot of money to start a business with everything online, and you kids are very, very creative, you can start a business with very, very little money. Okay. You take a little bit of money, start a business, grow your business, be successful. And I think lesson 4, we're going to talk about starting your own business. But we're going to take this income, right, the business income and the profits from that. So you can take your profits from your business and buy an investment. So what kind of investments you might buy? You might buy some stocks. Those are paper assets. You might buy houses that you can rent out, or you might flip, or you might buy another business or invest in businesses. I don't know if you know this, but there's a ton of businesses that are out there for, for sale. So this is, this is the very, very simple formula for success. Okay. So I want to repeat that secret tip. Start with a job, take care of your money, We're going to really, really be smart with it. Take the profits from that to start a business, and then your profits from your business is going to help you to buy investments. So very simple formula here, folks, kids. Here's your job, right? Income from a job goes into your checking account. Now here's what most people do, and I don't want you to do this, okay? And if your parents are doing this, tell them to stop. Right. You see, they put all their income in their checking account and they spend the whole thing. They spend all of their income. So there's nothing left to, to start a business. But what the smart people do is this. So they take their income and they live off of this much. And you see this, this freed up amount goes to start a business. Okay. And then when they start a business, they have income coming off that business that goes in here, which gives them more money to now buy an asset or investments. It's, it's actually kind of simple, kids. But the key is you need to have income, right? You just start with some type of income. You need to take care of that income. Again, that's going to be less than 2. So we're not going to spend it all and then we're going to start a business. Okay. And that business income is going to help us have more money to buy assets. That's a simple formula. And I know some of you might go from here and save the money and buy assets. That's, that's not a problem at all. And that's just as good. But this is a very, very simple formula. Okay, so I hope that that helps out. Now what I want you to do, if you can go go online, I want to I want you to type in like the best job that you found. Okay, type in the best business that you could think of. All right, I want to see some of your comments on there. So let's have your parents let you comment on there about the job that you see that's the probably best one or. a business or an investment that you'd like to own. Say, hey, Uncle Alan, I want to own an apartment building that has 100 units in it, 100 apartments, and then every apartment is going to be paying rent every month. So that's a good investment, right, Uncle? Yes, it could be if you know your numbers, okay, and you're smart. So I want to see some of those comments. Okay, go ahead and comment. I'm going to grab my See who's commenting here. Okay, Home Depot. Somebody Noah said Home Depot. Very good, Noah or Noah's kids. All right, let's see here. Rue said accountant, fish and game officer. Bridget said that fishing. You know what's interesting, Bridget, is when I was in high school and they talked about what your future career. would look like. And that's what I thought, that I would go into like fishing game. It's kind of fun. Spotify and music streaming for your oldest son. Holly, that's really cool. Okay, Ryder on the Big Island said construction company. And I think you want to own the construction company, right, Ryder? Not just work for them. Very good way to think. Amazon. Skip grocery store app. Oh, very cool, Becky. Matt D. Hart, he wants to be a ninja. Very good, you do that. Kelly Roca, your kids want to own a self-storage business. So that kind of combines the two things, right? So it's, it's an, it's an asset because it's real estate, right? And it's also a business. So you have, you have 2 different things going on there. Very good. Nail salon. Very, very nice. Real estate investing. Oh, Kapua on Kauai. Baseball batting cage and a kids workout center. Yeah, you can charge a little membership and the kids can come and you help kids and at the same time you can earn a little bit of money. The Beeman kids, software developers. Yes. As you become a good software developer, call Uncle Alan. Uncle Alan always needs needs good software developers. All right, Valerie, I hope to work at a sports training center. Valerie, your kids, that'll be cool. Canyon Lighter, whatever that is. Car wash. Okay, so I think, Holly, your son wants to own the car wash and not work there. And we actually have some of our students that are on today, they're from Kauai, they started a car wash. They start 2 of them called suds. Really cool place. Target stock. Oh, cousin Lay, Keely wants to be a stocker at Target. Very cool. Stalker. Wow, very awesome. All right, I'm gonna take a couple more. Kelly's kids wants to own a construction company. NFL football player. Very Very cool. Tua, oh Tua, you want to be a police? We need good police officers. Okay, teacher, animation studio. Wow, you guys have a lot of, a lot of good stuff here. Rachel's kid wants to be Batman. You know, when I was growing up, Rachel, tell your son or your daughter that my dad always said when I grew up I wanted to be a fire truck. Not a fireman. I wanted to be a fire truck. I think I'm getting there. House inspector. Wow, you guys are awesome. You guys are— animal rescue. I love, I love all this stuff. You guys, you guys are great at putting this down. Okay, so now what I want you to do is I want you to think about this. Okay. To increase your chances of getting a really good job, which will pay you more, right? Have more income. To increase your chances of being a very successful business owner and to increase your chances of buying the best assets that produce the amount— the best income, right? Money in. You know what that takes? It takes a couple things. Being smart, right? If we're smart kids, if we learn as much as we can, right, we're going to be smart. So we— so companies want to hire for their jobs like the smartest, hardest working people. So if you're smart, and I know all of you are hardworking because your parents are setting a good example for you, then you're going to get the shot at the better job. And if you're smart, right, if you're smart, then you're going to get the chance at being more successful in business and working hard. And then if you're smart, you're going to find the best investments to buy to produce that income. So that is why I go back to the education, right? Being academics, academically smart, financially smart, having some street smarts, and then you work really, really hard, this gives you the chance to be very, very successful. Okay, so remember that, kids. All right, now just in closing, okay, just in closing, I have some financial projects for you. We're not calling it homework. It's called a project. I have 3 things for you, so I want you to write this down. Okay. First financial project is I want you to research 3 different jobs, 3 different jobs that you would consider for a future career. Okay. So when you, when you research it, get your notebook out, you're going to think, okay, what industry is it in? What do they do? What does this job entail? What type of education do I need to get into that job? And then at the end, you look at how much they pay, right? Because if you're not— if it's not going to get you excited, then why do it? Just, you know, probably shouldn't do that. Find something that you're going to like, you're interested in, and then the pay will come towards the end. And then you can write down pros and cons, right? You ever done that before? You have a sheet of paper and you draw a line down the middle. On one side you have pros and the other side you have cons. So pros means what are all the things that you like? What do you like about the job? Okay, those, those are pros. Cons are what don't you like about that job? And you write that down and you have those for the 3 jobs that you could see yourself and would be excited about in your future. Okay. The second financial assignment for you, and we're going to make sure you get this done by next week Tuesday, is I want you to write down and research 3 businesses that you'd like to start and own. Okay, so if you think about it, maybe you have an idea already. Some of you already have an idea in your head, and some of those ideas will come later. Write those down. I mean, you might you might want to start an online company that sells surfboards, or you're gonna you're gonna do this. Write those business ideas down. That's those are always great to have to let your mind flow. Be creative. Okay. How do you how do you figure it out? Well, I don't know if you ever watched the the show. It's it's kind of old because my my kids would watch it. It's called Robots, and in Robots they say. Find a need, fill a need. And that's how you start a business. Find a need, fill a need. Very simple. So think about 3 businesses that you'd like to start or own, and that's your second assignment. Your third assignment is going to be researching 3 investments, 3 different types of investments that would, would be really good to own, right? Like if you, you're driving down the street like, Mom, Dad, I want to own that building one day. Okay, or I want to own this strip mall. I like to own some land. I like to own, you know, 1,000 shares of Apple. I like to be able to own these businesses, right? So I want you to research 3 that kind of speak to you, right? Things that you're excited about and try to find out as much as you can about them. Research that and you can do the pros and cons thing. Remember, very simple. pros and cons, what you like about it, what you don't like. You can do that for all 3 categories. Okay, so those are the assignments, and I'm going to check with you next week when we come back. But in closing, I want to make sure I give you my book. Okay, for all the kids that were good, here's my book. Okay, so to download my book, you just got to go to alanakina.com. A-L-A-N-A-K-I-N-A dot com. There is no space in, uh, in the middle of the name. So alanakina.com, you can download my book for free. And in there, there's a lot of resources. It's easy to read. Look at how skinny that book is. And the words are really, really big on it. And the digital version is easy. It has a lot of like videos and things of that sort. Okay. So that's number one. Um, the next is, uh, Next week Tuesday, okay, back at the same time, 8 AM Hawaii, 12 noon Mountain, that's 2 PM Eastern. Lesson 2 is going to be on what we call the 3 S's of money. The 3 S's of money. I'm going to share with you how to make— my kids made these drawers to cover the 3 S's of money. The 3 S's are money we spend, money we share, and money we save. Okay, so we're going to talk about that. I'm going to show you how to make these things and how to put that to use in your life. Okay, so that's next week, Tuesday. Now I'm going to be going live in about 20 minutes on, on my personal Instagram. I'm going to do this again for all of our Instagrammers that are not on Facebook. You're welcome to join me if you want to listen to this lesson again. It's just on my personal Instagram, which is Alan_Akina. And we'll be doing that at 1 PM Mountain, 9 PM— excuse me, yeah, 1 PM Mountain, 9 AM Eastern. Okay. So, so with that being said, if you like this lesson today, kids, go ahead and share this with a friend, family members that weren't able to get on, tag somebody in on the post that I have. Okay. Leave a comment. Let me know before you leave here what you like, best about today. And we'll try to improve this every week. Uncle Alan is going to work hard to get better. And we got a lot of fantastic lessons for you. We're going to have exercises that you can do with your family. In fact, those 3 financial projects I gave you, have your family jump in there and do this with you. It'll be really good to sit down at the kitchen table and get some creativity going. And let's really think outside the box since we can't get outside. Let's Think outside, okay? And and I'm hoping this was was really good for you. So please leave your your comments. Any feedback would be helpful on how we can improve this as we try to improve the lighting and the sound and the the video footage. But I just want to make sure that you're good, and you can see the board of everything we covered here. Okay, the ABCs of money lesson one. There's your three income sources: money from a job, money from business, investment income. And there's a secret tip, right? Start with a job, take your money to start a business. You take that profit from your business to buy investments or vice versa. And then here's the formula. Okay. I remember my things right here. Education, academic plus financial equals major, major success. And money is a game. Okay. Don't forget that. So, so please leave me any comments that could be helpful to make this live broadcast better because I'll be doing— I think I have 9 of them. I have more lessons planned. I have so much I want to teach. I just can't get it all in in the month of April. So anyway, thank you all for your comments. Anything that we need to close with, Kiani? Any questions? Okay. All right, kids, be safe, be healthy, listen to your parents. God bless you all. Thank you, and I'll see you next week.