“Working to help parents raise money-smart kids.”
Hello, friends!
Before we dive into our Labor Day edition, I need to correct an error in last week’s newsletter. When describing how to use the Rule of 72, I told you to divide the expected rate of return by 72.😳 Of course, it’s the other way around. You divide 72 by the rate of return. The example I used was correct.😅 Thanks to my mom for noticing that error.
With that off my chest, I want to share my Labor Day gift with you: Three podcast guest perspectives about whether our kids should work, and if so, when.
I hope you find these “3 Ideas to Share & Save” useful.
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True Trae’s Daughter Isn’t Lying…Around: Trae Bodge is a consumer expert and parent who joined me for a conversation just as her daughter was transitioning from camp summers to work summers. With her daughter no longer interested in camp-hopping to occupy her summer days, Trae, like many of us, was very matter-of-fact about her daughter “not lying around all summer.” She needed to get a summer job.
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School Is Your Job: With both his kids out of the nest living productive lives, David Owen brought unique insight to the “kids and jobs” conversation. While he agreed with Trae about the importance of summer jobs, he questioned the value of work during the school year. To the extent a family’s finances allow, Owen feels the opportunities school provide (e.g. sports, activities, clubs) are much more valuable than lessons a kid might learn through “a crappy job.” While you might not agree with Owen’s perspective, I think his view is worth a quick listen.
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Encouraging Entrepreneurship: James Robert Lay is a successful entrepreneur raising four kids. He doesn’t believe in allowance and chooses instead to encourage entrepreneurship in his kids as well. While it might seem odd for the author of The Art of Allowance to include Lay’s perspective here, my goal in this newsletter is to help you raise money-smart kids, and that goal includes sharing different points-of-view to help you create a system that works for your family. Because, of course, no one knows your family better than you.
While I’m in total agreement with James Robert about encouraging entrepreneurship, you won’t be surprised that I disagree with him about allowance. In fact, our conversation prompted me to record this recent podcast short to offer some further perspective on why avoiding an allowance, particularly for young kids, might mean missing important learning opportunities.
Enjoy your Labor Day. And, of course, 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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