3 Ideas to Share and Save – 037

Memo from the Chief Mammal Header

“Working to help parents raise money-smart kids.”

Hello!

I’m excited about this installment of 3 Ideas to Share and Save. It’s chockablock with content. 😊

We have a loose travel theme on tap this week. First, we’ll jet up to Toronto for my conversation with Robin Taub. Then we’ll pull back for a global look at what makes us crappy investors. (Hint: We’re human!) Lastly, we’ll head home for a podcast you might find helpful. ✈️🌎🎧

— 1 —

A Wise Canadian CPA: Robin Taub returns! I really enjoyed my first conversation with this author and professional speaker who describes herself as “not your typical accountant.” So when I learned about the publication of her new book, The Wisest Investment, I knew: 1) I had to read it and 2) I had to invite her back on the podcast to chat about it.

We cover a lot of useful ground in Robin’s new episode, including the dangers of compounding (Yes, you read that right!), why an allowance is your child’s money (and why that matters), examples of good and bad debt as well as those important budgeting terms — gazintas and gazoutas (which you might remember from this newsletter).

Also, I couldn’t miss the opportunity to ask Robin what she thinks is the main difference between Americans’ and Canadians’ perspectives on money. Listen below for her answer.

— 2 —

Dumbcoin: No, this isn’t the latest crypto investment rage. It’s my clickbait-ish way of getting you excited about my newest essay, “We’re All Born Stupid Investors.” I wrote this piece to address a question I hear often: How do I introduce my child to stocks if I’m not exactly Warren Buffett? (Spoiler alert: No one else is!)

FWIW, being a crappy investor might just be clear evidence of humanity. Meatsuits like us come preloaded with behaviors driven by biases, and these biases lead us down questionable paths. We need help to think properly about our financial futures.

I hope this essay will help you go easier on yourself and give you the confidence to have an investment conversation with your kids when the time comes. And those mistakes that are haunting you? Those are exactly the kinds of things you can (and should) share with your children.

— 3 —

Come Together: Parents must work together to construct a strong foundation from which they can begin to build a program to raise money-smart kids. Kids, of course, seem to be masters at finding the cracks through which their own intentions can flow.

These intentions can lead to situations as troubling as a shopping trip replete with utterances of “Don’t tell Dad,” or “Don’t say anything to Mom.”

They can be tamer as well. For instance, my wife or I would occasionally pay for something normally covered by our daughters’ allowances. These acts of goodwill turned tricky if we later discovered we didn’t agree on the purchases. We eventually got fairly good at checking in with each other before consenting to monetary outlays, and we fortunately see eye-to-eye about most things money-related.

Yet a common question I face is, “How can parents reconcile money incompatibilities?” While searching for an answer, I discovered Ramit Sethi’s new I Will Teach You To Be Rich podcast. If spousal money conflict is an issue you’re facing, then please click on the link above to peruse the episode titles. I’m confident you’ll find a relevant, helpful topic.

Because my wife and I both really liked Sethi’s book of the same name, I had high hopes that he would bring his candid and sensible approach to money to the podcast.

Boy, did he deliver, like when he counseled Calvin and Chantha in Episode 3, “My husband is going broke, but he won’t let me help.” He expertly dug into why Calvin operated from a position of scarcity and uncovered the underlying issues that Calvin needed to recognize were impacting a relationship with Chantha.

Sethi’s insightful questions opened Calvin’s eyes to the money scripts operating unconsciously in the background. He also provided a context for how Calvin and Chantha could begin building a more effective financial foundation together. This will of course be essential if they become parents.

(Want to know more about money scripts? Listen to my podcast episode with financial psychologist Brad Klontz, who coined the term with his dad.)

Sethi opened my eyes to an important perspective: There aren’t easy answers to questions of incompatibility. Real work needs to be done to address the money scripts we often don’t realize are running in the background. In fact, it’s only by raising more questions that solutions will materialize.

Until next time, enjoy the journey.

John, Chief Mammal

P.S. Please consult with a financial or investment professional before engaging in any decisions that might affect your own financial well-being.

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