As I watched the Cardinals go 1 for 12 with runners in scoring position and hand game 5 of the World Series to the Rangers last night (not that I’m mad about it or anything!), I saw a pretty awesome commercial. It showed how a father created a Gmail account for his daughter and sent emails to this account as a way to chronicle her childhood.
The idea is that one day he will give her the account and she’ll have years full of memories. Here’s the commercial if you haven’t seen it:
It got me thinking; what would I send to my theoretical future child? Sure there would be pictures and home movies, but what else? Here’s what I’d do:
Financial Advice for My Future Kids
Make More than You Spend – It’s pretty simple. Make more money than you’re spending and you’re gonna be alright. Maybe we are talking about getting a $5 weekly allowance and spending just $4 on baseball cards and bubble gum. Or maybe we’re talking about making $100k a year and spending $90k as an adult. The principle doesn’t change.
Always Pay Your Bets and Debts – My mother taught me early in life that I need to pay up when I lose a bet. It was so hard to give Joseph Carmichael $1 back then, but that moment ingrained a fundamental principle into my soul — people deserve what they earn. Whether you lose a bet or take out a loan, you made a promise to pay and need to live up to your word.
Make Saving Money a Habit – I will strongly encourage my kids to put a portion of whatever money they get (allowance, birthdays, babysitting, etc) into a savings account. I’ll also let them use that account when they really want to buy something. They should understand early that saving up for something and paying cash is the best way to buy anything.
Dad’s Money is not Your Money – I can’t stand when children expect things (aside from food and shelter) from their parents. It can create an entitlement mentality that can be very hard to overcome as an adult. My kids will know that they get what they earn; not what they want.
There’s Nothing Wrong With Working With Your Hands – I will not even pretend to know what the higher education landscape will be in the next 18+ years, so I have no idea what will change between now and then. I do know that I will NOT raise my children to think they must go to college to be successful. If my kid wants to be a carpenter, then he can be a damn good one and make a damn good living. I’d be just as proud of my kid the plumber as I would be of my kid the lawyer. Contrary to what most kids are told, not everyone is made for college.
Do You Have Advice For My Future Kids?
I’d like to think I have all the answers, but I’m smart enough to know I don’t. Whether it be financial advice or anything else: what would you tell my kids?
Kevin McKee is an entrepreneur, IT guru, and personal finance leader. In addition to his writing, Kevin is the head of IT at Buildingstars, Co-Founder of Padmission, and organizer of Laravel STL. He is also the creator of www.contributetoopensource.com. When he’s not working, Kevin enjoys podcasting about movies and spending time with his wife and four children.
Always remember, no matter how bad you think you have it, there is always someone worse off than you. So give to others whenever you can. Whether that is a weekly donation at church or dropping your spare change in the red kettles at Christmas, make giving to others a habit.
Thats some sound advice kevin. I like the “earn more than you spend” portion. Applies everywhere. I’d tell your kids that big purchases or trips will be more fun if they save up for them than if they spent money that they didnt have.
Make sure you are the financial role model for them.. Children learn more from watching their parent than what theri parents say.
Good advice Kevin. These will build a strong foundation and the kid should do all right. 🙂
I wish I was given similar advice when I was a kid. No, I had role models, and not the good kind. Mine spent everything they earned, plus more.
It is sad how many parents are bad financial role models for their children. I was fortunate enough to have great role models growing up and I am now reaping the benefits of this with my good decisions as an adult.
Warn them well in advance that credit cards are to be used occasionally (if at all) and paid in full each month, before they’re bombarded by hundreds of offers for “free” money the minute they turn 18. I wish I had had that drilled into me, perhaps then I wouldn’t have been swayed by all the shiny credit card offers on campus. 99% of 18-year-olds cannot be trusted with a credit card, even if the limit is just a few thousand dollars.
Take your kids to a garbage dumb and/or landfill at an early age. Tell them that most material things, items that seem to hold a lot of value to us at one time, end up at a place like this, to try to reinforce the importance of perspective. Material things can be fun, but there are MUCH MORE important things in life.
Monies and Material Possessions are not the best things in the world. There is Love and Care from Parents. Love that is nurturing, unconditional, patient and knows right over wrong. Care that comes from the heart that touches the child’s being. We could always wanted Best for our children but let us lead them to the way how to get this better in all Good Means.
I love this commercial! I always get so weepy at the end. I’ve been surprised as I’ve gotten older and seen more of the world at just how well off you really can be without a degree. And people in these fields seem to be doing a lot better in the current economic climate than recent grads with thousands upon thousands in debt and no way to pay.
Kevin thanks for the video, although I may not be as organized as the dad on the video. I think the best sound advice I can give to my children is DON’T buy into the “go to school, get good grades, get a good job and you’ll be set for life” philosophy. I followed that advice and it only got me broke. My parents followed that advice and they will also end up broke when it’s time for them to retire. Just like many people you see on tv who tried to do the right thing save and still not able to retire a good life.
I would change the last to “get a good job temporarily and look for a way to be financially independent so you can enjoy the rest of your life”
Read Robert Kyosaki’s Rich dad Poor dad book. And find the rich dad who will teach you. You may find out that the people who wants the best for you may be giving you the wrong advice just because they don’t know any better. I don’t get paid to advertise his book I just think its the best 3rd grade level personal finance book on how be financially independent.
If you want to know a way to be financially independent shoot me an email.
What a cute, cute commercial. Like femme frugality, I was also getting weepy at the end. I’m a sucker for sentimental movies/shows/commercials.
Oh man, the commercial’s so sweet! I’d love to do that when I have a kid of my own.
Thanks for sharing the video..Love that is nurturing, unconditional, patient and knows right over wrong.
Don’t Look Down on Those Less Fortunate Than You — When you see or hear of someone who is down on their luck — whether they’ve been out of work for a long time, or sick, or in debt or foreclosure — don’t be too quick to jump to conclusions about their circumstances without knowing all the facts. It’s easy to wag your finger and say, “It’s your own damn fault!” but it’s not always true, and for all you know, that could be you some day. Keep this in mind instead Fitzgerald’s advice from “The Great Gatsby”: “Whenever you feel like criticizing any one, just remember that all the people in this world haven’t had the advantages you’ve had.” Or as Hamlet said to Polonius: “Use every man after his desert, and who should ’scape whipping? Use them after your own honor and dignity. The less they deserve, the more merit is in your bounty.”
Great list of advice! I would also add that it is beneficial to get in the habit of tracking your expenses. It is easy to justify all sorts of things until you actually see the numbers in black and white. It makes you more accountable for your actions.