Financial Advisors React to the Most Spoiled Teen Ever!
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- เผยแพร่เมื่อ 10 พ.ค. 2022
- Financial Advisors React to the Most Spoiled Teen Ever!
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When I was 12, my parents took me to the bank to open a savings account. Interest was paid out quarterly. The first quarter, I got one cent in interest, and I thought it was the coolest thing ever.
🤤🤤😂😂😂
In Canada CDs are called GICs. They also have "Market Linked" GICs which you can't lose money on it, but at the cost of a capped return. My parents convinced me to buy one as a kid. It was a 3 year GIC. Turns out, the market did gangbusters during those 3 years and I reached the cap of 25%. So for a 3 year locked in investment, I got a 25% total return. That is what started my investing awakening.
I remember learning about interest and thinking that was the coolest thing! I thought about it and realized that one day, if I saved enough, I could live on the interest.
Now, of course, I realize that you need to invest, but that initial realization was key to me taking the path towards FIRE.
Bo tapped out, he couldn't take any more
An unlimited credit card AND a $5,000 allowance? I'm speechless. I'm only about 2 minutes in and holy cow
Brian, your example with your daughter buying a car reminded me of what my parents did. My dad helped me with the initial down payment on a used car, but I had to pay the entire monthly payment and insurance. Approx two years later it was paid off because they didn't tell me they were making a second payment each month until they handed me the title. So many money/parenting lessons I value and plan to use with my son. He's 9 and is quick to turn off the water or lights saying "every penny counts" -- I must be doing something right. 🙂
I read a great parenting book when my kids were young. The takeaway message was that a lot of parents spoil their kids when they are young because they’re cute, cuddly, or any of the other myriad reasons parents rationalize. These spoiled kids then grow up to be not so cute teenagers. Parents then try to impose limits and discipline to someone who’s never experienced it in their lives. And then parents are surprised when the kids don’t listen?
I worked in high net worth insurance and I remember one 25 year old girl that had a yacht in Miami and another in Italy and under occupation she wrote "socialite" on the application.
Because of YOU GUYS, my 12 year old daughter, who is a newly minted babysitter & catsitter, has opened a roth ira this year and she is just getting started. I am betting by the time she is 18 she will also have 5 figures in her roth, which is crazy cause that's how much I have now!!!!
How wonderful. She will FIRE.
How is she even eligible for a Roth?
@@awesome9174 she has a cash job and we will be doing a 1040ez with her. as long as you have earned income, you can put that income in a roth ira. i mean she doesn't even pay taxes cause it's very low so far, but the income is reported. if you have income really low, you can skip reporting too, i think if it's below $600 bucks annually or something.
I think the question is more how is she eligible to have earned income. I thought children weren't able to work until 14 or 15 or something
@@porsche9302 kids can work, each state has child labor laws that just restricts number of hours and what kind of work they can do.
Great video! Haha, I am in late 20s now and I still feel a huge generation gap from the kids in early 20s, so I can only imagine how it feels for you guys.
Well, one thing I do want to mention is...
I have seen Porsche, Lamborghinis, Maseraties, Ferraris during my college years. Dozens of them each, driven by the students.
It was a very weird dynamic to have couple of my friends driving brand new Mercedes SUV or S-Class when they were 20~22.
A lot of international students from Asia had extremely wealthy parents and were just spoiling the heck of their children.
Couldn't really tell them that they wouldn't know the value of a dollar because they DIDN'T have to know...
Their parents had successful businesses overseas and already pretty much "made it".
Some of my friends' friends were inheriting millions of dollars right after college.
I was walking, taking the public transportation or riding bikes....
To each their own I guess...
It is a very different world today then when I grew up in the 80's. I would give my parents a C Grade on financial education for me and my siblings.
The thing they did right was have an allowance system. My dad would review our performance as "employees" every month and me and my siblings got paid according to our job performance. We could get money deducted for things like "fooling around" too much. We got paid around $1.50 a week. Now that's a laughable figure today. The point is that I learned the value of money because I had to earn some of my money based on my performance.
Our tooth fairy started with 25c/tooth and progressed per tooth (2nd tooth - 50c, etc) and 1 book. The book was always a highlight
I'm 45 and don't have a $5000/month spending allowance.
I'm here and I learned a lot of the things, but my parents did very few of the things they mentioned except for modeling good habits. I will say that my best friend and I have a saying after a couple situations with others that one of our goals in life is to always live so that we can order a soft drink at dinner if we want.
The best skill you can learn as a parent is saying "no" to your child.
I want to see you guys react to the "Born Rich" and "The 1 Percent" documentary.
My uncle used to take me to Big Boy for the breakfast buffet. He would never let me order a glass of milk, since it cost more than a gallon from the store. To this day, I rarely order drinks out since they have some of the highest margins. This is of many things I learned in my family about the value of money.
I don't know if depriving your kid of a safe and reliable vehicle is the best way to teach them about money. If i could afford to give them something safer i would probably do that and find another to teach them about money. Maybe make them pay a portion or the insurance or get a job. If they are a brat sure i get it. Tough lessons. But if they are well adjusted and writing hard i don't think i won't skimp out on a safe reliable car. When the 12 year old car breaks down how do they get to work. Fixing that car becomes more expensive than buying a slightly more expensive but more reliable car at the start. You can always take the car away if the kid doesn't hold up their end of the bargain. That will teach them real quick. 😂
Exactly. I’ve always found it puzzling too that I come from a culture (and this might sound familiar to a subset of fellow folks from non American family cultures) where the parents supported the kids to a later age (and admittedly in the past the kids would be the retirement plan, but seems there’s a transition in this generation, at least among the subset where the kids grew up in the US and perhaps more globally in general), and the kids seem to have their shit together when they’re thrown into the “real world” and are on their own financially once they have jobs. Among the people I know, including some less well off than me, the kids weren’t necessarily even encouraged to get formal jobs so they could focus on their academics (although some did have to babysit their siblings while the parents ran the family store or whatever), but I’m pretty sure we all had general financial literacy by the time we became adults and were financially independent after college / grad school.
Granted, I don’t know anyone from that subset who had student loans (particularly predatory ones) or things like that (or they had parents who were also educated enough to help navigate that), so they didn’t have what I’d view as “financial complications” that could unknowingly trip them up, but the point is that I definitely view some of their approaches and suggestions as a little extreme and unnecessary to teach the value of money and whatnot (even though I have observed for myself, for eg. Comparing a pair of siblings where the younger grew up with more than the older, and the difference in how they value money). A new and safe car (versus a clunker) for heck even myself, much less a hypothetical kid, would certainly be high priority. Not to pull the “I was spanked and turned out fine so spanking is fine”, but it does get me curious about the way children from what Americans might view as “more spoiled” cultures seem to learn what they need to by the time they need it.
. Aside from having some generous grandmother's who would throw me a 20 just for getting a A on a test once in a while. I was never spoiled by my parents aside from my dad giving me a dollar for candy here and there when I was 10, I was never spoiled. Didn't even get money from my mom for my birthday. I accepted whatever they were willing to give me and when I got to working age, if I wanted a extras I had to work and pay for it. Too many parents think they had "nothing" when they were young and don't want the same for their children and spoil them rotten. Then they become assholes at the wonderful age of 15 to 18
We teach our children to save 70%, spend 20% and give 10%.
I make my son drink water sometimes purely because of the health factor lol
Water and soda are almost the same price unless is tap, so financially is insignificant
words to live by --- the tooth fairie does what the tooth fairy wants ..... oh, ROTFL
I guess i am somewhat worried that business people raise business people --- and you don't need an academic interest to make money ----- a CPA degree is great for fallback (entry - level + plan b) and i used some accountancy courses to get my first job ---- but i also had an intense desire to apply math & audit theory to manufacturing software development --- a different direction. I got the desire to learn what is now STEM by 'being good' in biology, chemistry & math..... Not getting a job -- my job was to do well in school!!! Have you been able to balance that direction or do your children have no interest in 'academics'?
aww, she'll be fine till she hits about...36, and then she better hope she's latched onto someone rich.
Lol
I'm 33 and do receive some minor support from my parents, but I don't consider myself to rely on them. For example, they do pay for my cell phone line, but it's a $10/mo legacy line. I have the ability to pay for my own phone if needed, but it doesn't make much sense to change the legacy plan when it's so inexpensive. I share my HBO, they share their Netflix (we'll see how long that lasts). I'd reimburse them if they ever asked me to, but I think they like helping me, as small as it is. My mom also deposits $5 of every paycheck into my savings account, something she's done since i was little and she says she doesn't want to stop. Compared to my 31-year-old sister who just moved into her own home 1 year ago, I think I've been very independent. I've lived 4 hours away on my own since I graduated college. I had 4 days between dorm move-out to apartment move-in. They helped me buy my first car by giving me half of my monthly payment each month. I took those payments while my loan was active, but I didn't need it and paid my car off 3 years early. They also kept me on their insurance plan the maximum amount of time so I could keep more of my paycheck when first starting in the workforce (and i have 2 younger siblings so they had a family plan anyway), but that's long since passed. I'm extremely grateful for the help and support of my parents. They had the ability to help me and wanted to do it. I never demanded it or even expected it. According to that study, I would not be "independent" of my parents because they pay $10/mo for my phone line. I disagree. I've lived on my own in a different city for 12+ years and have navigated all my own budgeting and bills as an adult. So my parents do some little things for me still? They're minor things I could completely afford on my own. But I think helping (which goes both ways) is just part of being family.
You don’t have to defend yourself so much. And I have no idea how the study was conducted, but I don’t think many (if any) of the adults cited as having support from their parents was to the tune of $10/mo. That would be a silly/worthless study. I believe you are the only one lumping yourself into the category of supported by parents.
@@damagedgoods0727- I read an article on the survey. One of the questions about whether parents financially supported their adult children was regarding paying their bills, and cell phones were included in the list. Maybe I'm too defensive, but my parents do pay my phone bill.