“As long as this [investing] is part of an education process, I want that education process to happen in my house. And I want their first […] big win or loss, which is going to happen if they’re investors, I want it to be earlier on when they’re still in my house with a small amount of money, and we can talk through that.”
— Evan Wilson
Returning guest Evan Wilson joins host John Lanza to talk about how his allowance system has evolved since his initial podcast appearance five years ago. He discusses helping his kids become savvy investors by adopting an ownership mentality, thinking about risk on the money-smart journey and wanting his kids to experience investing ups and downs when they are young. Evan and John also address leveraging compound interest, building wealth, starting the money conversation early and transitioning from money jars to debit cards.
Evan Wilson is the founder and general partner of Wilson Investment Partnership. There he invests in great companies, especially those that put customers first. Before becoming a full-time investor, Evan was a research analyst and CFO. For seven years he also co-hosted The Money JAR Podcast by Junior Achievement, which focuses on the intersection of kids and money. Evan is a husband and father of two who lives in Portland, Oregon.
Links (From the Show)
- Connecting with Evan
- Evan’s first Art of Allowance Podcast episode
- Money-Smart Mentions
- Junior Achievement‘s The Money JAR Podcast
- Investor Peter Lynch
- This edition of John’s “3 Ideas to Share & Save” newsletter mentions Jason Zweig’s “mad money” concept.
- David Owen’s podcast episode
- John’s short essay on the Breakthrough Allowance
- John Rothchild’s book on Shelby Davis, The Davis Dynasty: Fifty Years of Successful Investing on Wall Street
- Our compound interest infographic
- A video short of Morgan Housel talking about Warren Buffett
- George Clason’s book, The Richest Man in Babylon
- Thomas Stanley and William Danko’s book, The Millionaire Next Door: The Surprising Secrets of America’s Wealthy
Show Notes (Find what’s most interesting to you!)
- Evan’s money “interest” (Get it?) centers on bringing companies, the stock market and investing into the family. [3:53]
- The evolution of Evan’s allowance system [5:18]
- The impact of investing on the Wilson family’s money-smart journey [8:21]
- Understanding risk: what’s “safe” versus what’s “best” for your kids [9:44]
- How a McDonald’s drive-thru can help you start the investment conversation with your kids [12:40]
- Jason Zweig’s “mad money” concept [15:28]
- The crypto conversation [18:50]
- Drawing the line in terms of allowance [22:18]
- Evan’s concept of “useful constraint” [25:43]
- Thinking about spending at the family level [26:48]
- Two Money JAR Podcast learnings: talk and talk soon [27:49]
- The hockey-stick approach to compound interest [31:18]
- Evan’s inspiring investing philosophy [34:37]
- How Evan’s parents’ lack of interest in investing informed his journey [37:18]
- A bit on Warren Buffett and Charlie Munger [39:05]
- You might want to think beyond index funds. [42:18]
- Why Evan hopes his daughter loses her debit card [47:01]
- Feeling comfortable talking about money [49:02]
- Evan’s best investment of time or money [49:13]
- The Wilson family mantra [49:28]
- “Starting young is more important than how much.” [49:51]
- Two familiar money-smart book recommendations [50:13]
- Incentivizing reading and buying books [51:37]
- A textbook pricing PSA [52:49]
- Celebration through conversation [54:18]
If you liked this episode …
Need more advice on investing with your young child? On his episode of The Art of Allowance Podcast, financial psychologist Brad Klontz details how he introduced his seven-year-old to the stock market. Stream his strategies beginning at 10:05. Also, Brad’s thoughts on why an initial investing big win could be a problem mirror Evan’s concerns.
Interested in introducing your tween or teen to investing? Samantha Paxson, the Chief Experience Officer for Co-op Solutions and a mom to an eleven-year-old, discusses long-term versus short-term investing during her appearance on the podcast. Tune in at 39:55 for our conversation with guest co-host Robin Taub.
Want a counterpoint to Evan’s affinity for individual stocks? Popcorn Finance Podcast creator and host Chris Browning outlines his “boring is better” approach to investing during his Art of Allowance Podcast episode. Listen in at 7:11 or stream the corresponding video short.
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