All

Adults

Kids

Teens

Age 15

Adulting 101.

0:00 / 0:00

Your 15-year-old’s life is starting to get hectic. With the demands of high school ramping up, university or college looming in the not-so-distance, and a busier social life, your kid may be interested in making some money of their own. It’s a great time for a part-time or summer job, and an excellent time to build the skills for both.

Start Here.

First though, value. At 15 — with pressure to fit in AND grow up — understanding value can get complicated. This is the age when clothing and taste can start to dictate acceptance. Your kid may want money to buy whatever they’re seeing around them at school, and while they can do what they like with their money, it literally pays to get clear about a few things.

As your kid’s thinking about where to work and what to do with their time, find ways to encourage them to look at what they value in their life. Whatever the answers — family, pets, friends, trips, home, the environment, their Xbox — how many of the items on their list cost money?

It’s an obvious takeaway, but one that can use a refresher from time to time. Money doesn’t always equal value.

Translate that into the workforce, and choosing a job you love over one that pays more, for example, might connect value to your values. Similarly, the tradeoff of a lower salary for work you care about (and actually enjoy), or a healthier life balance, may not feel like a tradeoff at all.

Money is a tool, not an end point. Instill this in your 15-year-old, and you’ll give them one of the most valuable guides to life.

Get This.

Sitting down with your kid to talk about how to write a CV, fill out an application form, and ace a job interview are skills that will benefit them for decades. And once they’ve gotten the job (thanks to your excellent tutelage), prepare them for the deductions they’ll see on their pay cheques. They can come as a big surprise. Your kid may think working 10 hours at $10/hour may net them $100. Alas, as we wise, experienced ones know, it does not.

Research shows that students who work more than 15 hours a week are more likely to drop out of high school, so try to make that the max. Your kid may have to learn how to set boundaries with a boss who’s asking for more time. It’s good practice for a healthy work/life balance. Working is good. But so is not working. Learning how to healthily hit the balance is key to happier living.

Keep Going.

While it’s tempting to help them get out of bed to actually get to their jobs, experts agree that you pretty much have to leave your teen to it, or risk enabling bad habits. Agony, we know (but so is a world filled with 20-somethings who need their parents as an alarm clock). Let them make mistakes. Let them be late for work or double book themselves, so they can learn the consequences. As always, be a guide, offer advice, and help them when they need it. But let them also learn about adulting on their own.

#age15 #Financial Literacy by Age #interviews #investing #job #money #saving #stocks #summer jobs #value #work

All

Adults

Kids

Teens

Age 16

The one where they get a car.

0:00 / 0:00

Not every family owns a car, and not every kid is ready to get behind the wheel. But in most places in the U.S. and Canada, 16 is the magical age when the person who was once your baby is legally allowed to drive.

We are as frightened by this prospect as you are.

Start Here.

Let’s start with the budgeting piece. If your 16-year-old is cutting out Aston-Martin pics for their vision board it’s a great time to remind them that at no point should transportation ever take up more than about 15% of a monthly budget.

Get This.

If your kid is vying to borrow the family car, leverage the teaching moments for all they’re worth.

Charge them for car insurance. Your kid is a new driver and, let’s face it, you’ll think they’re a menace behind the wheel until they’re 50. Charge them insurance to help get them accustomed to costs associated with owning your ride, to insure your peace of mind, and to help ease the sting of your premiums going up now that you have a teen driver in the house.
How much do you spend for gas and routine maintenance? Will your teen pitch in for gas?
How much are your monthly car payments? Do you own or lease, and what are the advantages of each? If you have a car loan, how much will you end up paying in interest over the course of the loan? Maybe your teen can cover the interest.

Keep Going.

There are a lot of household costs that start to pile up at 16 — food for ravenous appetites, higher insurance costs, clothes and sporting equipment. If you think you’re doing your teen a favour by shouldering it all, Jerald G. Bachman says maybe not.

Bachman, a University of Michigan professor and an expert on behavior during the transition to adulthood cautions that kids who have cash to splash around on non-essentials while parents cover the basics can fall prey to “premature affluence”. It’s an inaccurate experience of the world that can really chip away at a young person’s financial literacy. Financial literacy actually deteriorates if it’s not put into practice, so get practicing. Have your teen find ways to contribute to household finances, their sports equipment, or their investment account.

We particularly like Option Three.

#age16 #budget #economics #Financial Literacy #Financial Literacy by Age #interest #investing #money #parents #spending #Teens

All

Adults

Kids

Teens

Age 17

Your birds are getting ready to fly.

0:00 / 0:00

Your kid is probably eyeing the real world with envy, counting the days to living the dream of renting a split bachelor in a 12-story walk-up. Use this time to casually LARP their future, so that once they’re out on their own, they’ve given life on their own some thought.

Start Here.

Budget. If you and your kid dislike this word as much as we do, find something that feels more motivating and empowering. They’re stepping into a powerful period of possibility in their lives. Their view of money should reflect that, even while they’re living on very little.

A Spending Plan keeps the focus on planning for spending, rather than restricting it.
A Financial Plan can include plans for the future as well as the present. Bonus: It sounds fancy.
An Expense Tracker can help track money going out. So, as your teenager gets used to new bills and financial realities, they’re less likely to be eating Cup Noodles at the end of every month for the rest of their youth.

Keep Going.

What are the things they’ll need to pay for once they’re on their own? Maybe they’ve forgotten to include the gas bill, the electric bill, or the grocery bills, in their back-of-the-napkin calculation of the rent they can afford. Help your kid establish a spending plan, and get focused on the things that are easiest to forget – bills, a rainy day fund, lease payments, car insurance or a subway pass, and food/vet bills for a pet if they plan to adopt one. (Build this last item into your budget too, in the event said pet is dropped off on your doorstep in a basket…)

It’s a good time to talk about short- versus long-term financial planning. Your kid’s Wealthie account, for example, is a long-term investment. But, if they’ll soon need money for rent and other short-term expenses, they may want to consider “money market” investments such as GICs and term deposits to provide some light interest.

Get This.

Which brings us to life itself. Humans adapt. When we make more (or less) money, we tend to expand or shrink into our new circumstances accordingly. Setting a benchmark of up to 15% as a constant investment goal will help to keep things on the level. Of course, life creeps up.

It’s a low-stakes time to lay down some gentle boundaries that will help your kid understand how life’s going to change once they’re living on their own. Walk through what might happen if the semester-long budget, for example, gets blown in week two.

Are they setting money aside for spending? Is it a good time to pick up a gig for a few extra bucks? If you’re having these conversations with your kid, then we’re confident they’re a financially literate wizard at 17.

Now, let them have the experience of walking into a job interview and crushing it.

#age17 #budget #economics #Financial Literacy #Financial Literacy by Age #interest #investing #money #parents #spending #Teens

All

Adults

Kids

Teens

Age 18

Wherever you are, this is a milestone. Congratulations.

0:00 / 0:00

Let’s take a moment, because friend, you have ARRIVED! Maybe you’ve listed the bunk bed and you’re turning their room into an art studio. Maybe you’re trying to bribe your kid into living with you for the rest of their life. Wherever you are, this is a milestone. Congratulations.

Take credit for your epic parenting, and now immediately teach your 18-year-old the basics of credit.

Start Here.

Credit can be confusing for a young person. If it’s not explained well and early, it’s the kind of thing that can spiral, fast. Have a conversation with your kid about credit now, so you can quietly take credit for their good habits later.

Explain it. Credit is the ability to borrow money now with the promise/guarantee you’ll pay it back later. Credit isn’t free. It comes with interest, and that interest is usually determined by how good your kid’s credit is. We’ve really come full circle.

Interest is the cost of using credit. Interest is great when it’s helping to grow your savings. It’s a drag when it’s working on your debt.

Credit cards can help keep your kids safer while shopping online. They are helpful in an emergency. Aaaand, they can give young adults a false and immediate sense of wealth.

Let’s face it, credit cards can feel like free money. So, some helpful ground rules to share with your 18-year-old:

#1: If you can’t afford it with cash, you can’t afford it on credit.

#2: Pay your card in full and on time, every month.

#3: There are no other rules. Except for this one: don’t spend more than 30% of the maximum your card allows. Everrrrr.

Now there are no other rules.

Keep Going.

Used properly, a credit card helps to build good credit, and a good credit score makes life easier.

Credit scores are considered in the approval of loans, phone contracts, rental applications, mortgages, insurance. They are looked at by employers. They impact the interest rates offered on loans and car leases. A low credit score, or no credit score at all, makes life harder and, often, more expensive.

Get This.

Credit cards make it easy to spend money. Studies have shown that people will spend up to 100% more when they buy with credit and not cash.

Remember the Rule of 72 we covered when your kid was 13? Well, The Rule works for debt too. With the average credit card interest rate hovering at around 17 percent, it takes a credit card company only four years to double the money they’re squeezing from your kid.

So, choose wisely! There are lots of good credit cards for first time users. Sites like creditcards.com and ratehub.ca will direct your 18-year-old to low interest or cashback cards with no annual fees. Some cards will promise free perks and rewards. Before your kid inhales the air miles, have them look up the APR (the Annual Percentage Rate) and the annual fee on each of the cards they’re considering. These are two separate fees. And there are more. When it comes to credit cards, free… is relative.

But speaking of free, take a look at your glorious 18-year-old! They’re ready for the world and, thanks to your nudges and planning, they’ve got a nest egg that’s ready for them.

Take a moment to look at what you’ve built together. And then put the fear of a mother into them and ensure that they NEVER TOUCH THAT MONEY!!! Keep it growing.

We’re kidding. Sort of. This is the beginning of the rest of their lives. And now, thanks to you, this, and them, they’re ready for anything.

XO.

#age18 #credit #Financial Literacy #Financial Literacy by Age #interest #investing #money #parents #spending #Teens

All

Adults

Kids

Teens

Inflation’s Hitting the Tooth Fairy

My six-year-old just mentioned that her friend got $20 from the Tooth Fairy. Is that the going rate?

0:00 / 0:00

Twenty bucks is nearly four times the national average, which hit an all-time peak in Canada this year at $5.99. It’s possible the Tooth Fairy was feeling generous, but equally likely she forgot to make change before flying in.

Given the predictability of this particular payday (20 teeth over about six years), tooth loss is a great opportunity to talk about, you know, fiscal responsibility. Sound about as fun as oral hygiene? Okay, we get you, but the tooth fairy really is a good way to table topics like saving and investing, even inflation (the rate of increase in prices over a given period of time).

Let’s look at the numbers: 20 teeth x 5.99 = $119.80. Your child’s mouth is building an empire, so it’s as good a time as any to talk about what that money could do over time.

Delta Dental is an American insurance company that has been tracking the tooth fairy’s financials since 2001. It turns out the amount kids find under their pillow is a good barometer for the overall economy. Your average baby molar fetched more in 2006 than it did in 2008 following the economic downturn. And the fact that rates are higher than ever this year is an encouraging sign of post-pandemic recovery. Another principle at play is what’s known as income elasticity of demand. This is the idea that when people (or fairies) have more money on hand, there are certain things they tend to splurge on disproportionately. Children are one of these items.

So while the TF’s feeling generous, take advantage of a happy time and a teachable moment—while it lasts. One columnist recently argued that given the terrible hours, unsafe working conditions, and non-existent travel budget, the Tooth Fairy may be ready to join The Great Resignation. Who could blame her? She’s an essential worker who doesn’t even get dental insurance.

#Financial Literacy #investing #kids #money #savings

All

Adults

Kids

Teens

The Business of Memes

Fast reads on things kids care about, or cared about, or may care about again.

0:00 / 0:00

Meme stocks as an asset class? Nice work, Reddit.
“Meme fashion” label Pizzaslime makes fast fashion look slow. They’re doing brisk business selling wearable internet culture to Gen Z.
Want to create a meme for the ages? According to one prof, there’s a formula for that.

Read on…

***

The craze around the trading of “meme stocks” GameStop and AMC Entertainment has largely fallen out of mainstream news, but Reddit’s still chasing the highs. And so, it was just a matter of time before MEME ETF hit the scene. MEME launched this December, thanks to Roundhill Investments, purveyors of specialty ETFs such as the Esports & Digital Entertainment ETF, NERD.

With subreddit WallStreetBets 10x-ing in 2021, social investing is here to stay, even if MEME’s performance is on the decline…for now.

So, should you “buy the dip” on MEME? It’s very early. The fund rebalances bi-weekly, and focuses on stocks “that are both highly shorted and subject to increased retail sentiment”. In other words, if you love roller coasters, this could be a love match. No matter what, it’s bound to keep you calmer than trying to keep up with what’s trending on Reddit.

Nasdaq.com | Sept. 4, 2021

•

The two millennials behind “meme fashion” label Pizzaslime have made millions selling merch to people interested in wearing internet culture IRL, reports Insider. Their wares reference nerdy-cool things like Elon Musk tweets about meme stocks (“Gamestonk!!”) and that endlessly remixed photo of a mittened-out Bernie Sanders. Commenting on Pizzaslime’s runaway success with Gen Z, one fashion expert said “What matters to younger consumers is what captures their attention and has the ability to spread like wildfire across social networks — and this is exactly why meme fashion is so popular.” We’ve seen plenty of articles in recent years bemoaning how Gen Z has killed the fast fashion propagated by millennials. Perhaps the younger generation has just put a new spin on it — one somehow both faster and more enduring at once.

Insider | May 16, 2021

•

Speaking of enduring, what is it that gives some memes such incredible longevity, despite the “here today, gone tomorrow” reality of internet culture? Speaking to Forbes, Leilani Carver, a professor of strategic communications, says that since older memes are better known, more people “have the necessary subcultural knowledge to interpret/understand the code and ‘get’ the meme.”

In the age of the Remix, everything old is new again. We’re into it.

Forbes | Aug. 30, 2021

#Financial Literacy #investing #kids #money #spending

All

Adults

Kids

Teens

The Cost of Being Batman

Running the numbers on this Caped Crusader.

0:00 / 0:00

Yes, Batman’s got a lot to juggle, keeping Gotham safe from the Riddler and Penguin. But, that’s not all that’s on his mind. Like any business titan, running a multi-billion dollar enterprise while moonlighting as a caped crusader, Batman’s got to stay on top of his budget.

Wealthie looks into the BatWallet to investigate how this superhero stays in the black.

$13.04 billion: Total net worth

Ten years ago a group of econ students (and obvious DC Comic fans) at Lehigh University estimated Batman’s wealth at 11.6 billion USD, ($13.04B in today’s dollars). It’s mostly the result of inheritance after his parents’ brutal murder. But, B. Wayne deserves some credit, too. He’s put his money to work at Wayne Enterprises. Being mega wealthie is actually Batman’s superpower. He doesn’t have superhuman strength, x-ray vision, or even spider powers. He just knows how to make every buck count.

$137 million: Market value of Wayne Manor

Bruce inherited his 42,500 square foot, 11 bedroom, luxury lair from his parents when they died. Since then, it’s been destroyed several times by various enemies.

Without considering the costs of all those rebuilds, here’s what Batman budgets annually:

$1.6M: annual upkeep

$37,000: property taxes

$27,000: house insurance (and that’s monthly!)

$41,250: The Batsuit

This is what the costume worn by Michael Keaton in Batman Returns fetched at auction. If you’d prefer a functional memory cloth polymer cape (the kind that stiffens to facilitate flying from building to building), that’s going to set you back $40,000 on its own.

$11, 588, 928: Annual life insurance policy

It’s not cheap being a batguy in the big city. According to Vantis Life, a US insurance company that scores factors like dangerous situations, exposure to firearms, and alcohol consumption, Batman is one of the most valuable clients in Gotham or anywhere.

$1.5MM: Salary for Alfred Pennyworth

The starting salary for a butler is around $30/hour. However, the highest paid butler on the planet — a guy named Gary Williams, who works for a billionaire in Miami — rakes in a reported $2.2 million a year. Keep in mind that Batman’s right hand has a fairly extensive job description, and some top shelf job experience. Alfred’s LinkedIn page includes stints with British spy agencies MI5 and MI6. He spends as much time supporting his boss in special ops as he does delivering tea. He’s also been on the job since Bruce was seven, so we’ve factored in a few substantial raises.

$12.3MM: Estimated Price to Buy the Daily Planet

That’s right, Batman is technically Superman’s boss, having bought the newspaper where Clark Kent works as a bespectacled reporter. It wasn’t cheap (and print media is a risky investment these days). But the cost of owning the competition: Priceless.

Financial advice from Batman’s nemesis:

“If you’re good at something, never do it for free.”

– The Joker, ‘The Dark Knight’

#Batman #budget #economics #investment #wallet

All

Adults

Kids

Teens

The Business of Gaming

a cheat sheet for what matters (maybe) to the kids in your life.

0:00 / 0:00

Young gamers can now add “e-sports athlete” and “digital content creator” to their picks for Career Day.
The pirated games your kids are playing could end up costing you thousands.
And, happily, video game violence appears to be on the decline, as, for the moment, is gaming itself. Impossible to believe?

Read on…

***

According to the NY Times, “e-sports is now the fifth-most popular future job among South Korean students”. South Korea’s elite gamers draw big salaries and celebrity-level sponsorships, but South Korea’s universities offer no athletic scholarships for the pursuit, shrinking opportunities for committed young gamers working to go pro. Enter… the USA. In 2019, California-based company Gen.G launched The Gen.G Elite Esports Academy, to give serious gamers a pathway to an American high school diploma and a chance to apply for e-sport scholarships at American universities. Gen.G charges $25K a year, and works to help “more young gamers find jobs” — while also building a pretty solid talent pipeline for themselves.

NYT | June 19, 2021

You know the old adage: if something is too good to be true, it probably is… CNBC reports that “malware is being hidden in free versions of games like NBA 2K19, Grand Theft Auto V, Far Cry 5, The Sims 4 and Jurassic World Evolution”. Parents should be on the lookout for their kids acquiring games from these pirate sites — aside from being, you know, a little bit criminal, these bootleg programs may “quietly use the computer’s processing power to mine cryptocurrencies for… hackers”. It’s a multi million dollar enterprise, so if the pirates are paying you, have at it! However, if hackers are jamming your processing power and paying zero doge for the privilege, it may be time to start budgeting with your kid for the real stuff.

CNBC | June 25, 2021

The Financial Times reports that video games are becoming less violent. “A study of [last] month’s E3 trade event … found that 33 percent of the games shown at the event contained no violence, almost double the number identified in 2019.”

Financial Times | June 29, 2021

#business #esports #gaming

All

Adults

Kids

Teens

#KIDSTHESEDAYS Part 3

Zen Wants to get PAID!

0:00 / 0:00

For many kids, an allowance is the first, sweet step toward financial freedom. Of course, in a digital world, money has many forms, and it can be tough for kids to keep it straight. How does money get onto a debit card? How much is “a lot” of money? And, of course, HOW DO I GET MY FREE DOLLAR?

If we had a nickel…

The bottom line is, conversations about money can be easy and stress-free, and the easiest way to make that happen is to Start Early. How do your kids feel about money? Are they interested in earning it? Do they know what it looks like??

We like that Zen has a plan. Ask your kids about their plans, and let us know what you hear!

#allowance #debit card #dollar #financial freedom #Financial Literacy #financial plan #money #plans #value #zen

All

Adults

Kids

Teens

#KIDSTHESEDAYS Part 2

Kehero Talks Value

0:00 / 0:00

What we value influences how we think about and spend our money.

It’s no different for kids.

Talking about value, values, and even self worth, can give parents and kids an opportunity to imagine what a “rich life” might look like, regardless of the amount of money you have.

##kidsthesedays #bacon #money #text #value

All

Adults

Kids

Teens

Your Kids Know More Than You: NFT Edition

The ABCs of NFTs.

0:00 / 0:00

Just when you thought you had a handle on cryptocurrency, there’s a new frontier — non-fungible tokens (NFTs). NFTs are, suddenly, everywhere, and the term sounds like it requires a Master of Econ to understand it. Don’t panic. You’re already pretty familiar with fungible goods, since the most common one is money. A $20 bill or a Bitcoin is fungible, Picasso’s “Guernica” is not.

Are we having fungible yet?

Fungibility, which sadly has nothing to do with mushrooms, refers to any good that is mutually interchangeable with another. A $20 bill has a fixed value, and it’s functionally identical to all $20 in that currency. Shares in a company are fungible — a share in GameStop is the same as any other share in GameStop. Commodities work in the same way: the market agrees on the price of a barrel of oil or an ounce of gold, as long as it meets a “basis grade” standard. Regular cryptocurrencies are fungible tokens (FTs): Bitcoins are digital, but all have the same value.

Contrast this with your child’s crayon drawing attached to your fridge: could you exchange that for a precise dollar amount? Maybe Grandma would buy it… if the price were right, but your bank almost certainly won’t, as that (charming) doodle is non-fungible. It’s a unique artifact with no set value, and it’s not intrinsically interchangeable with other works or assets.

Welcome to the NFT party

A non-fungible token is a digital object that’s one of a kind. The ownership of the object is traceable, standardized through the same blockchain technology that enables cryptocurrencies. (A blockchain is an impenetrable ledger of transactions shared across a network, allowing users to store both cryptocurrencies and NFTs in a secure digital wallet.) This technology enables users to officially “own” an image, video, or even a tweet. Although someone can still take a screenshot or otherwise copy your prized piece of multimedia, they won’t have the unique code that proves it truly belongs to them. Since these things are one of a kind, they’re worth exactly as much (or as little) as someone else will pay for them.

So which kind of token is better?

There is no right answer to this. Cryptocurrency fungible tokens (FTs) fluctuate in value, but at least that value is universally agreed upon. At any given moment, an Ether is worth as much as an Ether, nothing more or less. This makes FTs liquid, since you can easily sell them, and it makes them (reasonably) reliable, since you can know their current worth.

NFTs are tougher to value. Because they’re unique, it’s difficult to know the market value until you try to sell one. Of course, uniqueness signals scarcity, and that scarcity is driving demand, with year over year growth up 38 060%.

So, is this a bubble or a wise investment? If the Cryptopunks know, they’re not saying.

We’re happy to watch from the cheap seats.

#crypto #investing #kids #money #NFTs

All

Adults

Kids

Teens

Always take the doubling pennies

Exponential growth starts small but picks up speed fast!

0:00 / 0:00

When Soren Wheeler was a kid, his father stumped him with this exponential growth model:

“He would say, I want you to mow the lawn every day for the next month, and I’ll either give you a million dollars to do that, or I’ll give you a penny today, and two pennies tomorrow, and four pennies the next day, and so on, for a month.”

Wheeler once told this story on Radiolab, the science podcast he helps produce. His response then was the same any kid — and really anyone — would have: Take the million!

But if you go with the pennies, you’ll make nearly $20 million dollars for a month of yard work. The lesson Wheeler remembers: “Things can turn out way bigger than you think.”

Exponential growth model in a nutshell: Things can turn out way bigger than you think

His advice became particularly relevant a year ago, as we all become armchair epidemiologists, obsessing over how a virus might spread. It is also why compound interest is famously called the seventh wonder of the world. Exponential growth starts small and picks up more speed than we can literally imagine.

So, the best course of action: Start Early. Take the doubling pennies. Get a bigger piggy bank.

#chores #exponential growth #highlight #lessons