#165 The Next Generation of Investors: Conversations With Kids About Money

Hey, everyone. Hope everyone is having a great week. This week is going to be a little bit of a different podcast. I'm going to do a little interview of some people that are very important to me in my life, my two kids. One of the questions I get often is, how do you speak to your kids about money? I think they're specifically talking about me. I actually don't know if it's anything super intentional, but I actually thought the best way to find out is to hear from my kids themselves and see what they've learned just by being in my world talking to me. So stay tuned, enjoy. Welcome to the Passive Income MD Podcast, where we talk about creating your ideal life through multiple streams of income. If you enjoy hearing about this stuff, make sure to hit subscribe. Now let's get on with the show. All right, so I have my two kids here. I'm going to call them E1 and E2. E1, can you say hello?

Hi.

How old are you?

Nine.

Okay. E2, how old are you? Say hi.

Hi.

And how old are you?

Seven years old.

Okay, so I'm going to ask some questions to you. Okay. Iwan, what does money mean to you? Meaning? Like, how do you explain what money is?

You work hard and, like, you get it. You use it helping people, like families and for people and stuff. And not for clothing stuff. It's like just aside. I want stuff.

Well, let me ask you, how do people make money?

They work hard. That's what I just said. And being nice.

So if you're nice and you work hard, you're going to get money?

Yeah.

Let me ask you, you have a job, though. You have to have a job, a.

Good job, and you have to go to school.

All right, well, let me ask you two, E2, seven years old, what does money mean to you? Like, how do you explain what is money?

I grew up and I don't know what actually, how you spend money.

Well, what is it? What is money? What do you use money for?

Buying stuff.

Okay, what kind of stuff?

Like, not toys, like, stuff of, like, books and computers or phrases.

All right, well, you too. How do people make money?

By working hard and trying to do their best at work.

Has there ever been a time when you earn money?

Fundraisers.

Okay, Fundraisers? Yes.

For school.

Fundraisers for school. How about other times that you've made money or earn money?

Oh, I went on Girl Scouts once. We went around with, like, this little car. It was when I was littleer. And then we, like, sold cookies and stuff. I got about, like, 10 or $5.

That's impressive. How'd you feel when you got that money?

I had to give it to the Girl Scouts. I'm proud of myself because, like, I helped a little bit.

Oh, okay. Now how do you make any money at home? So you can get some of the things that you want?

Allowance.

Okay, well, how do you get your allowance?

Well, there's this little, like, chart that we get, like, every week. We have to, like, do certain stuff, and on the chart, we get stars if we fill in that stuff, if we do that stuff, and basically each one is, like, half a dollar.

Has it been a time when you made some money?

I made some money at New Year. I got money at New Year.

You got money in New Year's. How'd you get money in New Year's?

Red envelope.

Oh, and red envelopes. Okay. Okay. I think people that are part of the Asian, Chinese culture probably understand that. Okay, so how do you save money? Yuan.

So I have three jars. One is called Give. I, like, split all my money into three parts and then put one third of it into the give section and then one third of it into the save section and then one third of it into the spend section. We're still working on that. And then that's how, like, I save, give, and spend my money.

But why is it important to save your money?

Because you have to save it for college and stuff.

Okay. Why not just spend it all?

Because then I have no luck.

How about you? How do you save money?

I save money because who knows if I need it? So I'll just gather a lot of money. So if my family needs it, I'll just give.

If I need some money from you to borrow some. I can borrow some?

Yeah.

All right. Well, thank you. Borrow but not keep.

Yes.

Okay. All right, Gotcha. All right, so. So let me ask you guys a question. Have you ever heard of something called investing your money?

You have to spend to get money. You have to save money. That's basically that. Yeah, that's. I think.

What do you mean, save money to get money? What does that mean?

Spend money to get money.

Okay, so you got to spend money to get money. What's. What's an example of something where.

Okay, okay, please. Thank you. You have to spend money to start a company like my dad's. The hopes of the company is, like, you get more money that when you spend more than you spend, like.

And then, like, is there risk there?

Yeah, you have to keep it safe or, like, risk it all and get more.

Okay, well, why would it be worth.

That risk because you have a chance to like help people and stuff and like get more money, I guess.

Okay, how about you? What do you, what do you think it means to invest money? Have you ever talked about this? No, I think we have. But what do you think that means to invest money to get money and.

Save and all that stuff? I think you said, what do you think you think it is?

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Like it's like pretty important because if you don't invest your money to the right place, you can lose somebody.

So how do you think somebody should decide how they want to invest in something or not?

You have to be trustworthy and stuff.

So how do, how do you decide if somebody's trustworthy or not?

You're friends with them.

Well, you're friends with them. Okay. So you get to know them.

Everyone's famous about them. So probably, yeah.

How about you? How do you think you decide if you want to invest in something or not?

If I was a grown up and lots of money, it cost a lot of money to do a job and I would spend it because we would get money by the time that's investing.

Oh, so you say that if you had money you would just spend it because you know you're going to make more money later. Is that guaranteed? So you would you just spend it all? Okay, so what do you do? Do you just save all your money? Do you spend it? What do you do? How do you Decide how much to save and how much to spend.

I spend what I need to spend.

How important do you think it is for families to talk about money together?

Not really. What?

It's not really important. Why do you say so?

Because, like, they would talk about it later in life. You don't need to talk about it at this age, I guess.

You don't think so?

No. But maybe at night.

Do they teach you about the stuff in school?

No.

How important do you think it is for families to have good control of their money?

Very, very important. Otherwise I would be sad.

Okay, you might be sad, but what does that mean for those families?

They would also be sad. They don't get the stuff that they need. Like, we get this stuff that we want. Well, they don't even get the stuff that we. That they need. Like, really sad. So I want to help. I want to go to Africa one day.

Okay. What would you. What do you want to do there?

Cheer up and give money, I guess. Okay.

All right. Well, that's a good goal. Do you have any other goals? Like, what are some of your big goals when you think about money and dreams around that?

I want to be like you.

All right. Why is it important to be like me?

Because you have a bunch of important stuff. You help your family live, like, without, like, the money, then we would be dead.

How important do you think it is to help people with, but especially when.

It comes to money, it's very, very important because you have to treat people the way you want to be treated. Like, if you were them, you would want people to come help you. Right?

That's true. How about you?

Very important.

What do you mean by that? Why is it very important?

Because we have a lot of money and people over there don't have money, so we can help them.

Well, first of all, how do you know how much money we have?

Because you tell us. Oh, we have a. Like you get, like, buy us socks and stuff.

Like, oh, so how about you guys? Socks. So you can tell we have a lot of money. Okay. All right. What do you think it means to be rich?

A lot of money? Yeah, like a lot of money. But like, a good kind of rich means, like, you are rich but are, like, really nice, like my dad, or rich and not nice. You have no friends, but you have rich. Just like the. Would you rather question. Would you rather have ultimate money or ultimate friends?

What would you choose?

Probably have more friends because, like, you can't buy friends.

That's true. That's true. I'm glad you Knew that you can.

Like, get money by working hard. You'll be rich. Yeah, basically. And then, like, you can't buy friends.

All right, so I have a big question for you guys. What is passive income?

Passive income is basically, you know, how, like, we have to work hard, like, like hard, like, to get the money. It's basically like where you have to not work as hard and maybe get the money still.

I guess what, what are some ways you can make passive income, like.

Working at home or something? Like, you don't need to go out and then, like, do all this stuff. That's what you do.

Why is it important to make passive income, you think, versus just regular income where. Where you work a lot.

If you work just regular income all day, every day, you would be all tired out. You won't have that much fun. And then life is, like, about fun, but also being safe and stuff. You know, It's. You need to have, like, fun. So if you did passive income, you would have more fun and you wouldn't be so tired.

Well, when people ask you, what does your dad do? What do you say?

He runs a company.

You don't say he's a doctor because.

You'Re not a doctor anymore, silly.

Well, I'm always a doctor.

No, you're not. No, you're not. Okay, I'm not anymore.

Well, I. I went to school for it, and then I trained for it and I practiced for many years. Maybe I do less of it now.

Less? You mean you do none? Like, for like two years you haven't been doing.

It has not been that long. So let me ask you, though, why have I worked less in the hospital?

I spend more time with family.

That's right. Okay, so you understand that. Okay, have you guys read any sort of books or anything like that on money?

That book that you. That your friend gave you, it's called Reach for the Stars. It's about this girl who, like, invests her money. No, not invest, like, saves up her money and then, like, gets allowance and stuff for a telescope she really wants.

Oh, do you like that book? Yeah, that's a great book. It's called Reach for the Stars by her name is Dr. Michelle Chodorado. I love that she's writing books for young kids about learning and to invest and how important money is. Yeah, that's one of my favorite books around investing. And it sounds like you guys love that book too, right?

Yeah.

So let's try to end with this. I have a question for you guys. What kind of advice would you give to Other parents, if they're wondering how to best talk to their kids about money. What are some things that you've learned have worked best for you guys on.

The way to school? You talk to them about like their job and how to, how like the money works and explain if you answer their question, they won't be so not interested in money.

How about you? What kind of advice would you give other parents for how they can talk to their kids about money? What's, what's worked for you?

What I would is I will go there and tell them about money and teach.

So do you guys think it's important that we talk about money?

Yes.

All right. Well, there you have it. I think I learned a lot from this. I hope you did too. I learned a lot about what might actually goes on in my kids heads when it comes to money. Obviously I have a lot of work to do. I still have to continue to teach them, but at least the conversation, we've actually gotten it started before. I hope you've enjoyed this. This was a lot of fun for me. Is that fun for you guys? Oh, you guys want to do another one sometime in the future? Okay. Yes, and now, but okay, we'll talk about that. In any case, hope you enjoyed that. I wanted to give you a little peek into my life as a dad. As a father, obviously I have a lot to continue to do and learn and to help my kids grow into this. Hope you enjoy that. Have an amazing week everyone. Thanks. Bye. Ready to level up your real estate investing and entrepreneurship game? Well, join us at pimdcom, the Physician Real Estate and Entrepreneurship conference happening live in Los Angeles on September 21st through 23rd. By attending in person, you're gonna get exclusive access to expert speakers, panel discussions and the opportunity to connect with like minded high achieving professionals like yourself. This engaging event, it's packed with amazing content, workshops and networking opportunities. Now this year, you're gonna have the opportunity to choose from two different tracks. Focus on real estate investing or entrepreneurship, or do both and learn from seasoned professionals through mastermind sessions and coaching opportunities. Now you'll gain valuable insights on how to achieve financial freedom and walk away with actionable plans to help you achieve your goals. So don't miss out on this incredible opportunity to level up your financial future. Register now at PIMDCON. That's PIMD c c o n.com for your in person ticket. And let's take your real estate investing and entrepreneurship game to the next level. Thanks so much. Bye.