“Working to help parents raise money-smart kids.”
Hello, friends!
I just returned from San Diego, where I delivered a talk about how important it is for financial institutions to understand how our brains work when it comes to money.
For example, I explained how we’re often not even aware of the desires that are fueling our quests for stuff. Read on to find out more!
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Chasing Carrots: My newest short essay addresses mimetic desire, or the concept that much of what we covet is fueled by seeing what others around us like instead of by considering our own intrinsic wishes.
Figuring out what it is that we actually want is at the heart of mindful money empowerment, by which we use money as a tool to further our own fulfillment.
Warren Buffett’s wise partner, Charlie Munger, identifies one of the dangers of proverbially “chasing carrots”:
“I’ve heard Warren say half a dozen times, ‘It’s not greed that drives the world but envy.’ […] You can give someone a two-million dollar business and they’re happy until they see the next guy got 2.1 million and then they’re miserable.”
While Munger is talking about one business founder’s being sick with envy about another’s success, he could just as easily have been addressing me when I desperately wanted an expensive Movado watch. I only later realized that my desire was fueled by my friends and colleagues who were sporting similar pricey timepieces. Naturally, I wanted one too.
The problem with this envy game is that we quickly return to our baseline emotional state after the dopamine hit of any purchase wears off, which it invariably will. So because of this kind of pursuit, there will ALWAYS be more items we need to acquire.
One solution I propose is that we might focus on wanting what we already have instead of desiring what we don’t.
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Back to the Metaverse: I shared my conversation with tech guru and metaverse expert Brett Wooden last week. So I thought you might enjoy one of our discussion’s highlights. In this short snippet, Brett reveals opportunities to bring money smarts to the metaverse:
While we didn’t settle on exactly what form this might take, I plan to continue my conversation with Brett. Also, I would love to hear any ideas you might have about leveraging the metaverse in a way that can help our kids learn money smarts where they already are.
And remember, our definition of the metaverse is less about immersive headsets, like those in Ready Player One, and more about the worlds our kids already inhabit, like Roblox.
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Ask Me Anything: I will join our long-time partner, Louisiana Federal Credit Union, to answer questions in their Helping You Get There™ live series. Tune in via their Facebook page at 1:00 pm PT this Wednesday, April 26th, to participate.
Any question is fair game!
👉🏻 Want to know how to get started if you’re late to the allowance game?
👉🏻 Is your son’s room full of stuff he doesn’t use, so you’re looking to turn off the spending spigot?
👉🏻 Not sure how to handle the money piling up in your daughter’s Share jar?
As the title of this section suggests, you can really ask me anything. I’ve participated in this event with Louisiana Federal Credit Union for the past few years, and parents never cease to surprise me with interesting inquiries. You’ll get good value — and your questions answered — from this 30-minute session.
I hope to see you there.
And as always, 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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