CASH KID

This episode launches season 2 of the Ca$h Kid Podcast. We need to build our knowledge to create smart financial habits. That’s what this season of the Cash Kid podcast will be all about. How to build "Super Financial Literacy Skills." What are students lacking? How does always using a debit or credit card affect our financial habits? Find those answers and more from a high school teacher who works to teach financial skills to juniors and seniors. Learn more about your ad choices. Visit megaphone.fm/adchoices

Super Financial Literacy Skills

“Mr. Buffet, how can I make 30 billion dollars? 

Start young.”

https://www.youtube.com/watch?v=fErzHbEiQIs

That’s Warren Buffet speaking at a conference years ago. Start young he says. 

Wise advice from a man who bought his first stock at age 11.

But to start young, we need to build our knowledge to create smart financial habits. That’s what this season of the Cash Kid podcast will be all about. How to build Super Financial Literacy skills.

And today, it starts with an interview with a high school teacher who works every day to do just that. I’m so excited to start this new season and new journey with my fellow cash kids. The Cash Kid podcast is underway.

Intro tease:

So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday. Here you go, sweetie. Thanks, Grandma.

Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.

Time to learn how to be a cash kid.

Joining me today is Mr. Ryan Halla. He’s a business and personal finance teacher at Vestavia Hills High School in Alabama.

Welcome to the show Mr. Halla.

Ryan Halla: Thank you. Good to be on!

Cash Kid:  First, tell us a little bit about yourself.

Ryan Halla: I’ve been a teacher for a long time. Graduated from Vestavia Hills in 1992. I played baseball at Auburn after that and then played baseball a little while after Auburn. Got into teaching and coaching when I was about 29 years old. Been doing it ever sense. I’ve got two kids. I've been married for 25 years and.

Cash Kid: Okay. So what led you to wanting to teach people personal and business finance to high schoolers?

Ryan Halla: Well, it actually kind of chose me. One thing led to another, and I ended up getting into the business curriculu. Which I have found to be very useful and very enjoyable. Because I'll be honest with you, a lot of things in school I   necessarily say I use today, but I same thing I tell all my kids as far as personal finance goes that they will definitely, definitely use that at some point in their lifetime.

Cash Kid: Do you remember what kind of financial literacy material, if you had any or found or given when you were growing up?

Ryan Halla: The only stuff I remember when I was a kid was we counted the paper nickels and the paper pennies and things like that. But as far as true financial literacy, I really don't recall. And I don't want to insult any of my teachers because it was a while ago, but I don't recall ever going over that.

Cash Kid: Also, about your thoughts on what type of financial literacy is needed in schools today and when you should it start being taught.

Ryan Halla: I think basic financial language, as far as, you know, checking accounts and savings accounts and things of that nature, I think that should begin in middle school. Then I think as you progress and you know, because I have a bunch of I teach a bunch of juniors and seniors, they all have jobs. They get real paychecks. So I think at the end of the day, when they get to be maybe a sophomore, you start talking about actually taxes.

And, you know, taxes is not fun to talk about anyway. I'm not trying to insult any CPAs, but they I'm not sure income taxes which I’m talking about as far as what comes out of their paycheck you know the FICA taxes and and the state and federal tax is probably discussion and I think they can all use, you know, savings account discussions and checking account discussions. A lot of my kids don't know the difference when a debit and a credit card.

Cash Kid: Yeah, we're going to cover that soon in an upcoming episode.

Ryan Halla: Uh, good!

Cash Kid: Would you say there's a lack of financial skills taught in schools, and if so, why?

Ryan Halla: I'm going to say, no, there's not, because I'm teaching it. I would say that I don't really know other people's curriculum, but I do think that as far as Vestavia goes we do a pretty good job of maybe introducing it to them. I think it's I think it's funny, though, because I think a lot of kids don't really understand and having taught for a while, they're like anybody to know they don't understand something. So I think a lot of times they just kind of sit there and pretend like they understand, but they get out in the real world and it's pretty obvious they don't understand.

Cash Kid: What are ways parents can get involved to teach these concepts?

Ryan Halla: I think parents can just kind of mimic the correct behavior. I know correct is a vague term in this, but I think they can just mimic and show the kids. I mean, kids understand more of what they see than what they hear. So I think if you can tell them and I think sometimes, you know, people with means, I think the hardest thing is to tell a kid, no, kids don't really have a concept of of financial skills because they've just always had.

And then when they get out by themselves, they don't really understand where the money went. So I think just just talk and sit down and have a conversation with them and say, and I'm old school. I think allowance is a good idea. I don't really care how much the allowance is because it teaches them the basic concept, basic skills of how to save money, how much things cos. Because also, whether people believe it or not, our main our main purpose is to be an educated consumer in this. You know, we understand how much milk should cost. We don't pay $20 from milk. I think when kids get an allowance to learn that at home, I think they're better suited when they get out in the real, quote unquote, real world.

Cash Kid: What do you find your students are lacking when it comes to financial literacy today?

Ryan Halla: I think taxes is a foreign concept, every single one of them. Because I've asked that question, I said, how many of you have gotten a paycheck and a lot of them raise their hand. I said, be honest with me. How many of ya’ll were shocked and stunned by how much was missing? And they all were. And that's common. Most people are like that when they get their first paycheck.

But I really think that just I mean, it's a basic overall concept of, where money comes from. I mean, I've had kids that thought that when you took money to a bank, you had a vault of your own, that they took your $100 when you deposit put it in there. And then when you went back a week later, they went back to that same vault, gave you that same $100.

So I think maybe an idea of how it works and what banks actually do with that money and how to access money. I mean, there's a lot of things there. There's a lot of things that that need to be discussed.

Cash Kid: What can be done to help instill greater financial knowledge to the next generation.

Ryan Halla: If every kid could listen to this podcast and hear my voice, then that would make everything better. I'm just kidding.

Cash Kid: Hahaha… I’m good with that!

Ryan Halla: Okay, let's go.

Ryan Halla: I just think what I said. And I think parents can get more involved and I think kids need to get more bored. We seem to push a lot of the lot of the blame on parents or schools or whatever it is. But if the kids not willing to be involved or get involved too, in their own learning, then it's really kind of pointless.

So I think we've got to figure out a way to get the kids involved and understand that the concepts that they're learning about the financial literacy is because people will talk to you about anything else in the world other than money. Nobody likes to talk about their own money and what they do with it. So I think when people are like that, there is no conversation going on about it.

And I think that I think I really think the parents and families could get involved more and have an understanding.

Cash Kid:

What is your goal for your students when they leave your class?

Ryan Halla: I think I think just have a basic understanding. Basically, if they go out in the real world, they can understand that what's what their paycheck looks like. They can understand how much things cost because like a lot of times people have no concept of how much the grocery store, especially nowadays or how much how much gas costs because they have mom or dad or aunt or uncle or grandfather or whoever it is, credit card and they just run that credit card.

They don't understand that they just paid $65 for gas. So, just a basic understanding, really very basic understanding of how much things cost, where they can put their money. We touch on investments, but that to me is kind of advanced financial literacy. I think basic is just just managing your money. I just really I don't want any of them to struggle with money is really my goal.

Cash Kid: Are there any books that you can recommend to your audience, either for parents or kids to continue their further knowledge?

Ryan Halla: Um, one book does come to mind. It's by everybody's favorite self-help guru, Tony Robbins. It's called Money Master the Game. And the main concept he likes is that he talks about his three buckets for investments, and those are there's security of growth. And then a dream bucket and how you move money to each one of those buckets and you fill up one before you fill up the next one because once your security that's kind of emergency fund as Dave Ramsey would say in your growth bucket that's kind of retirement future car whatever you try to save for once those are filled, then you move on to that drain bucket of, you know, if you want to go on that dream vacation, whatever it is. But his language is is pretty simple to understand. I think the book  certain parts of it very helpful.

Cash Kid:

Mr. Halla do you find there’s this generation shift where there’s less cash and never physically seeing the money?

Everything is just like in the cloud, basically and how they can affect money management for this generation.

Ryan Halla: Correct. Correct. I mean,  cash is I always tell my kids, I said, if you can get cash out, get cash out, because cash is easier to see it go down. Like, you know, if you've got a lot of cash in your pocket and that wad starts getting smaller, you understand, Hey, I've spent some money. But if I'm using a card, I don't ever see especially a credit card, because then you're like, well, I still have money in my account.

And I have I spent money. So I don't understand. You know, there's I try to throw a lot of statistics at my kids and, you know, statistics like 56% of all Americans have less than $1,000 in savings. And half of those 56% have less than $1,000 that they would need if they had $1,000 expense. So what that leads to is a constant, constant state of borrowing.

And I'm not going to bark like Dave Ramsey and say that all debt is terrible, awful, no good. But I do understand the concept that if I can't pay a bill and I need to go borrow money or use a credit card to pay that bill, what am I going to do next month when I've got a new bill and I couldn't pay it?

And then it becomes a snowball. It just becomes a bad situation. And that that I guess to answer the previous question, I said that is kind of, what I would like my kids to understand. But I do think that that just swipe your cards because how many times does it say, hey, you know when I was a kid, your mom would say, hey, go get this for me and she would give you $10. Well, you were like, man, if I only spend five, I could keep five. But now the parents are giving them their card. Say, hey, go get it. And now the kid's going in there buying a Coke, buying some chips, and buying some gas with no concept of what that cost because it was on a card.

They didn't see the number. They didn't pay attention to it. They just put a PIN number in and moved on.

Cash Kid:

Yeah, great points.

Um, is there anything else we haven't asked you that you would like to share with our audience?

Ryan Halla: No, other than I think this is a very great concept to have somebody who is in your position to talk about this, because I think that when kids your kids talk about that's a little different than hearing a 50 year old man talk about, well.

Cash Kid: Well, we agree. That’s why we started this podcast to help my generation get financially smart early because there's are definitely opportunities for kids now to start investing and saving earlier.

Mr. Halla, we appreciate your time and expertise. Thank you for joining us on the Cash Kid Podcast and boosting the financial knowledge of fellow Cash Kids everywhere.

So many great topics and interviews to come. Remember to visit our website at cashkidpodcast.com, leave a review wherever you are listening from, and follow us on Instagram. Cash Kid Out!

What's next for the CA$H KID Podcast? Listen in as he wraps up season 1 and talks about where we are headed next. There are lots of topics to cover with this podcast and we want you involved. You'll hear ways you can be engaged and always know what's happening with the CA$H KID Podcast. Learn more about your ad choices. Visit megaphone.fm/adchoices

What’s Next for the Cash Kid Podcast?

Hey Cash Kids!

First off, I huge thank you for joining this podcast and helping us grow this audience. In just the first season of the Cash Kid Podcast, we’ve watched this audience grow daily. It’s got friends and family I know talking about their finances more and asking questions to make better financial decisions. I’m learning along with you and so glad you are here with us on this journey.

This episode will mark the end of the first season of the Cash Kid Podcast… but no worries! A new season will start in just two to three weeks. Where are we headed? That and more of my thoughts on this podcast and it’s future…, coming up. The Cash Kid Podcast is underway.

Intro tease:

So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday (Here you go, sweetie.) Thanks, grandma.

Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.

Time to learn how to be a cash kid. (cash register)

First, let’s rewind (tape rewinding effect) and talk about how this podcast even got started.

I was given an assignment in school to create a passion project. Many of my classmates were doing fundraisers, or creating websites to share knowledge about a non-profit or health issue. But I knew what my passion was… the stock market and investing, so I wanted to create a podcast. My teacher said I would be the first to create a podcast from this project.

I came home and told my Mom.. and in full disclosure, I knew I had the materials to create a podcast. You see, my Mom is a full-time voice-over talent and we have a sound studio in our home. When I told her what I wanted to do, she said great… but in her mind, I think she was panicking a little.

Mom: I wouldn't say I was panicking. I just saw myself getting a lot less sleep.

We set out to create 4 episodes. And if you go back AND review the first four you’ll see I started out talking first about the stock market because well, that’s what I’m passionate about. We got great feedback and my teachers, friends, and family encouraged me to continue it. So, we met with a podcast producer to get some guidance and we’ve been growing the podcast ever since. We have so many plans and topics we feel we can cover. From financial literacy terms, what jobs can kids do to make money, how to get your first job, scholarships, and of course how to start investing early. It’s my goal to help my generation, Gen Alpha, to be the smartest financial generation ever. I mean, why not?!  Think of how many problems that could solve.

But I’ve also learned from adults talking to me about the podcast, they are finding the information useful as well. I’m grateful for all listeners, young and young at heart.

So, if you haven’t yet, please go back and start from episode 1 and listen in. This first season we touched on a little bit of everything from the stock market, budgeting, investment advice, the type of spender or saver you are, and interviewed three other fellow “Cash Kids” on how they're making money.

In season two, we plan to start breaking it down and we feel the best way to do that is focus on financial terms… that frankly, many adults don’t even know or understand.

As we move into season 2 though, I wanted to communicate ways to be engaged and never miss out. 

First, if you haven’t already visit us at cashkidpodcast.com. All episodes are posted here. You can even read the transcripts for each episode. Find contact details for our guests. And be sure to sign up for our mailing list for alerts when new episodes are released. 

Also, creating a podcast isn’t free. If you’d like to support the growth of this podcast, there is an option on my website to buy me a coffee. These funds will help us continue to grow the show and are most appreciated!

And most important, you can leave a review or feedback right on our website.

Plus, follow the Cash Kid Podcast on Instagram. We post new content weekly to know what’s going on. 

The same for YouTube. We actually have some teachers already using the YouTube videos of each episode to play for their students. This is so exciting to hear!

And most importantly, listen in each week. The Cash Kid Podcast is on all major podcasting platforms like Apple Podcasts, Spotify, Google Podcasts, etc. And whatever platform you choose, please take 3 seconds after listening and rate the podcast. This helps boost our ratings and reach a larger audience.

Well, that’s a wrap on season 1. Just remember, anyone can be a Cash Kid, you just have to learn how to become one.

Cash Kid, out!

Disclaimer:

The information presented represents the views and opinions of the guests. This show does not intend to provide personal investment advice through this podcast. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids, definitely your parents first before investing.

There are lots of ways for kids to make some cash. In episode 14, we interview fellow "Cash Kid" Ella Kate about her bracelet jewelry-making business, Bracelets by EK. Hear how she turned a hobby and turned it into a money-making idea. Learn more about your ad choices. Visit megaphone.fm/adchoices

A Jewelry Making Cash Kid

Welcome back to another episode of the Cash Kid Podcast. I love these types of episodes where we get to bring in a guest who is another fellow cash kid. Today, we’re spotlighting a kid making cash from making jewelry. Her story, coming up! The Cash Kid Podcast is underway.

Intro tease:

So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday (Here you go sweetie.) Thanks grandma.

Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.

Time to learn how to be a cash kid. (cash register)

Joining me today is Ella Kate Miller. Ella Kate is an 8th grader who took an opportunity and turned it into a jewelry making business. That’s why we consider her a fellow “Cash Kid.” 

Welcome to the show Ella Kate!

Cash Kid: First off, tell us a little bit about yourself.

Ella Kate: My name is Ella Kate Miller and I’m 13 years old. I go to Pizitz Middle School and I’m in 8th grade. I also play basketball and volleyball.

Cash Kid: That’s cool so uh please, tell us about your business.

Ella Kate: Yeah, so I make bracelets. They’re similar to a business called Enewton. There’s a wide variety of bracelets that I make.

Cash Kid: What gave you the idea to start making these bracelets?

Ella Kate: During Covid I made some lanyards and I sold them so you could use them for your mask. And I had some beads left over so it gave me the idea to make bracelets during the summer.

Cash Kid: How did you learn to make them?

Ella Kate: So from those lanyards they gave me the idea. And they gave me some practice. I also made some little cross bracelets for my grandmother to start off the business so I could get used to using the beads and things like that.

Cash Kid: What influenced you to make this type of style bracelets?

Ella Kate: Yeah, so a lot of my friends have had these little colorful beads with gold accents and things and so I starting making those at first. And I did pretty good with those. And then I started using like gold beads and crosses and those got really popular so I just kept on doing what people kept on ordering.

Cash Kid: Where and how do you sell the bracelets or jewelry you make?

Ella Kate: I make them in my house and then I take pictures of them and then I post them on Instagram. My mom does it on Facebook too. At first, I like texted my friends and they would just tell me what they wanted. But you can also find some Mountain Brook Spartan ones at Smith in Mountain Brook Village.

My Mom is friends with the owner and she really likes them so she was like if you can make me some. I made her about 18 I think. So you can find them at Smith’s Variety in Mountain Brook Village.

Cash Kid: What are you future plans with this business? Would you like to sell them in more stores in the future, or maybe open an Etsy shop?

Ella Kate: I think for right now I would like to keep it small because of how busy I am. But, maybe an Etsy shop in the long run would be cool.

Cash Kid: How much time do you spend on your business?

Ella Kate: Probably around one to two hours a day or more. It doesn’t take me too long to make the bracelets but that helps me a lot for school and sports after school.

Cash Kid: How do you advertise your business?

Ella Kate: So I have as I said my Mom runs my Instagram. It’s called bracelets by EK. And I just post it on there and my Mom kind of repost it on Facebook. 

Cash Kid: So is there like a kit you buy or something to give you the materials for the bracelets?

Ella Kate: So I usually buy the beads on Amazon. I think most of all of them are from Amazon. And some cross bracelets that I make, the little cross beads are from Etsy.

Cash Kid: What have you learned from running a business like this at a young age?

Ella Kate: Definitely just stay organized because it’s very hard to know whose bracelets are whose and where things are on my desk. And it’s hard to find what I want when my desk isn’t nice and clean. But I also have like a notes on my phone of who hasn’t paid and who has just so I know and it helps me a lot.

Cash Kid: What advice would you give to other kids thinking of starting a little business of their own?

Ella Kate: I would say make sure you know what you are going to do and have lots of products so you are prepared. And again, stay organized and be ready cause you might start off strong and have a lot of orders right off the back. 

Cash Kid: Do you have plans for the money your making?

Ella Kate: I’m ultimately trying to save it because I have a little jug in my room that I like to save for and it’s probably going to be for a car in college and stuff like that. But I also I love shoes. But most importantly I give some to the church every two weeks I give a good portion to the church. 

Thanks Ella Kate for your example of being a Cash Kid and we wish you the best in your business ventures. Again, be sure to follow her on Instagram at braceletsbyek. Remember, anyone can be a cash kid, you just have to learn how to become one. Ella Kate, is doing just that!

(music)

That wraps it up for today’s Cash Kid episode. Be sure to visit me at cashkidpodcast.com for new episodes, follow me on Instagram, or my YouTube channel. If you go to my website make sure that you subscribe to the mailing list so you can receive emails when a new episode comes out. That's it for today, Cash Kid out!

Disclaimer:

The information presented represents the views and opinions of the guests. This show does not intend to provide personal investment advice through this podcast. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids, definitely your parents first before investing.

Today, I will be talking about the difference between a natural spender vs. a natural saver. Which one do you think you are? Find out that and more in episode 13 of the Cash Kid Podcast. Learn more about your ad choices. Visit megaphone.fm/adchoices

Saver or Spender?

Hey Cash Kids, welcome to the Cash Kid Podcast. We love how this audience is getting so engaged and tuning in each week. I wanted to make sure you knew to check out our new website, cashkidpodcast.com. You can read through transcripts there, listen to episodes, and get helpful links about things we’ve discussed, like the stock market game in episode 8. 

Alright, a couple of episodes ago we went over the 4 different types of spenders. I said then, we would dive deeper into this topic. If you didn’t catch that episode, be sure to go back and listen to episode 9, “What Kind of Spender are you.” Today, we want to break it down further to find out if you are a “natural spender” or are you a “natural saver.” We actually develop these traits early in life and being either of them is not wrong. But understanding what type you are, can help you to recognize your strengths and weaknesses in finance, and set you up for better financial success. So, let’s get started. The Cash Kid podcast is underway!

Intro tease:

So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday (Here you go sweetie.) Thanks grandma.

Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.

Time to learn how to be a cash kid. (cash register)

So everyone in life is either considered a natural spender or a natural saver. Now normally a natural spender would be somebody that if they get some money, they'll go out and spend it right away on something they really like. I mean, they like to spend money and get new things. A spender is more carefree with their cash. They  like to live in the moment and spenders just get more pleasure from spending. Think of it like this on a kid level. Let’s say you are at the ballpark and  your Mom gives you five dollars to go to the concession stand. She didn’t tell you what to get. A spender sees that $5 as all his and ready to spend in this one trip to the concession stand. They’ll walk away with lots of loot… but zero cash left over. 

They lived in the moment to take advantage of the opportunity to spend. A negative side to being a natural spender is impulse buying… like seeing something you like in a store, not thinking much about the purchase and buying immediately. Sometimes spenders also spend just for the desire to keep up with others. You know the saying, “Keeping up with the Jones.” Well, the Jones may be in debt too…so, just remember that. 

Spenders also though are usually more giving. They aren’t so wrapped up in their money that they aren’t willing to quickly give to help others. They see a need and like to fulfill that need to help others. They also are usually the ones who seek more fun and see the value in spending the money to make memorable trips to walk away with memorable experiences.

(music transition)

Then there's a natural saver.  This type will normally save up their money until they need something. While spenders get more pleasure from spending their money, savers get more gratitude from saving it. They are usually more patient and responsible. So, back to the example of your Mom giving you five dollars to go to the concession stand. The saver may only spend what they need and keep the rest for later. (Because I’m not giving my Mom back change unless she ask, right kids?!)

Savers really think about a purchase. They may ask questions like, “Will I really use this? Is this really the best price? Maybe I should wait until it’s on sale. Will this be a wasted purchase?.” Spending money for them may create fear and sometimes they forego spending on things they actually need. They’ll do without that vacation, or new clothes just for the sake to have more saved away. A saver is also usually not as generous with their money.

But savers, usually have the most money saved up for retirement and live below their means. 

Now, again, it's not wrong to be either of these type types of people, so if you're a parent listen to this and thinking, “Oh no my son's a spender. He'll never have any money in his life because he’s a spender.” Don't worry! You can help guide them to make wiser choices. Recognize the personality trait early can be a really big step in order to achieving financial goals. Learning to be a wise spender can include learning how to save at the same time.

Also if you have a natural saver, then you need to teach your saver how to still spend money because spending money is a necessity in life.

This makes me think of an activity we did at my elementary school. We would hold what’s called “Market Days.” For market days, we would have to create something to sale or sale a service that our classmates could buy. We were each given a certain amount of money to spend each market day, plus any earnings we made. You could see some clear personality traits emerge from these market days of recognizing who is a spender and who is a saver. Some kids would make some cash and then go and spend it all buying up every game or handmade treat or toy they could buy. While others were focused on doing the most business and walking away with having the most money at the end of the day. I didn’t think about it at the time, but these activities started to show us students what type we are, and recognize it.

But again, as we’ve discussed, there are pros and cons to both sides here. As we grow up, our personalities are forming. But as they are, I think it’s a good practice to recognize these personality traits and guide us into making wise choices. Let’s form good habits now to carry with us. Remember, anyone can be a cash kid, you just have to learn how to become one.

(music)

That wraps it up for today Cash Kid episode. Be sure to visit me at cashkidpodcast.com for new episodes, follow me on Instagram, or my YouTube channel. If you go to my website make sure that you subscribe to the mailing list so you can receive emails when a new episode comes out. That's it for today, Cash Kid out!

Disclaimer:

The information presented represents the views and opinions of the guests. This show does not intend to provide personal investment advice through this podcast. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids, definitely your parents first before investing.

Want some advice? You'll find it in this episode where we interview Financial Advisor Jon Cunningham on best practices to teach kids financial skills and tips to start investing early. Don't miss out! This episode is especially great for parents and kids to listen together. This is a two part series so stay tuned! Learn more about your ad choices. Visit megaphone.fm/adchoices

Advisor Advice Part 2

Welcome back to another episode of the Cash Kid Podcast. If you haven’t already, be sure to visit our website at cashkidpodcast.com for more resources and links to past episodes. Follow us on Instagram as well. Today, is part 2 of our “Advisor Advice” interview with financial advisor Mr. Jon Cunningham. If you missed the first part of my interview with him, definitely go back and listen to it first. So much great advice… and he’s got more to share.

The Cash Kid Podcast is underway.

(music)

 Intro tease:

So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday (Here you go sweetie.) Thanks grandma.

Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.

Time to learn how to be a cash kid. (cash register)

Alright, let’s jump right back into part 2 of our interview with Mr. Jon Cunningham.

(music)

Cash Kid - So what are some ways that kids can learn about personal finance in the stock market?

Jon - Yeah, another great question. You know, I think it's very important someone once told me to always preserve precious capital. And so as you're working as a young person and you're working hard and you're sweating outside maybe mowing grass or doing chores for your parents, the last thing you want to do is earn that money and then lose it.

So it's important that you really understand how investments and how the stock market works before you just put money in an account and buy a stock and hope for the best, right?  

Cash Kid - Definitely.

Jon - You know, even when I was in high school, we had a stock market simulation game. And so there are programs out there that will basically give you plain money. So it's not real money. You're not subjecting your own money to risk, but you're buying stocks with this, you know, fake money and not real stocks. But it's a way to simulate how stocks work in the buying and the selling of stocks and researching them without putting money at risk. So that's an easy and safe way for a young person to really understand and learn the market without actually subjecting their money to risk of loss.

Cash Kid-   Yeah. In our previous episode we've talked about what is the stock market game. And so we talked with one of my teachers that introduced that to me. 

Jon - Oh cool. 

Cash Kid - That's how I learned about the stock market. And so that's what our previous episode was about.

What are some ways kids can start earning, saving and investing their money?

Jon -  Yeah, this is going to require a little bit of involvement from from Mom and Dad. But until you reach the age of adulthood, you really can't open an investment account without the involvement of a parent or guardian. So their accounts called up UTMAs Uniformed Transfer of Minors Accounts, and these are accounts that are owned by a guardian or a parent for your benefit.

And money can go into these investment accounts and certainly can be invested for your benefit. However, the parent owns this account, so the funds have to be used for you and for your benefit and someday would have to be transferred to you when you became an adult. So this would be a safe way. I'd say safe. This could be a way to open an account with parental oversight that you can invest some of your money in the market that eventually could be for your benefit.

Cash Kid -  Yeah. Do you think there are any, like, jobs out there that kids could do?

Jon -  Oh, absolutely. I mean, I have three kids. I love it when they work for me. And I think I think oftentimes kids try to find creative ways of forming a business early, whether it be mowing grass or everything from that to pressure washing, things like that. And oftentimes it's tough to find prospects. It's tough to find customers. It takes time and energy and money and overhead to to make that income. When oftentimes you can find things in your own backyard that you can do for your parents that they would really appreciate and also be willing to pay you some money to do it. And so certainly, I think it's a good thing for kids to have chores and allowances, but then also to work for for that money.

So that could be something you talk to your parents about and say, hey, I want to make, you know, $25 a month, you know, what can I do around the house to make that kind of money? And I'm sure, you know, most parents would be happy to oblige.

Cash Kid -  Yes. 

Now, I assume you would agree that parents can play a big role in the financial success of kids. I mean, kids are always thinking of a way to pick up spending habits. What ways can parents be involved in helping set their kids on a healthy financial path?

Jon -  Yeah Cash Kid another great question. One of the biggest issues with with our economy right now is just that more with the amount of student loan debt that's out there. To understand what a student loan is, when a young person wants to go to college and they don't have the the cash or the resources to pay for tuition, room and board and all those types of things, they'll go to lending and lending institutions to get a loan to cover those costs.

And often time, oftentimes interest and payments are deferred on those loans until that person graduates. So the risk associated with that is the student goes to college, incurs this debt and they graduate and number one maybe they can't find a job or they can't find a job that pays enough money for them to cover the student loan debt, plus all their other living expenses that's out there. 

So part of the way that parents can help their their kids be on a on a good financial trajectory is to make sure that they're making little decisions early on in their children's lives by setting money aside in a college related accounts like 529 plans or or other investment accounts that are earmarked for for their kids college.

So with some of the listeners that you might be having here,  a question could be you know, what can I be doing to set money aside that could help my parents pay for my college someday? Or maybe it's, you know, what can I be doing to do really well in school that I get what's called a scholarship and some of my tuition might be covered and all that could be helpful and ways of setting yourselves up financially for the future.

But then also to I think it's important for parents just to be good examples and show good stewardship and be good stewards of the cash flow and educate kids on just simply what's a credit card mean or what's a checking account, and then what can we be doing to ensure I'm building a good credit score, even at a young age. Just kind of having transparent conversations like that I think are really important.

Cash Kid -  Yes. So, um, I'm sure you tell this to your partners in a lot of like work that you do. So when you educate others about early investing, why do you think early investing is important?

Jon -  Well, that's a great question. So I was prepared to answer that one. So yeah, when you look at the cost of waiting and waiting on investing, it's very expensive. So take an example of a ten year old child that says, hey, I have $600 a year or $50 a month that I want to invest and I'm going to invest that money and hopefully earn 6% growth for the next 55 years.

So you're looking at starting at ten years old to age 65 to 55 years. Guess how much money that person has in 55 years? They have $236,503. So they started at age ten and saved the exact same amount between age ten and age 65. So now let's fast forward and say, hey, a 15 year old says, Hey, I want to do the exact same thing.

I want to set aside $50 a month or $600 per year for the next 50 years until I'm 65 years old. Guess how much money that person has? They have $174,201.54, assuming they can make 6% every single year. The cost difference of a little over $62,000. So you see there's a significant cost to waiting and delaying, saving and investing at a young age.

Now, there's not many ten year olds that can set aside 600 bucks a year. You know, consistently. That's a lot of work and that's a lot of chores. And and that's understandable. But just that exercise shows you that it's very important to start early, especially when you get out of college and you start making an income to really begin diligently saving and setting money aside for the future and not delaying because it is expensive.

Cash Kid -  Right? So what age would you say somebody could start investing?

Jon -  Well, really, it could it could start at any time with the assistance of Mom and Dad or guardian. But typically you have to be at age 18 to open an account by yourself and have an account individually owned by by just yourself. So you have to be 18 years old to have your own account. But again, going back to the previous point, you can open what's called UTMA with the assistance of Mom and Dad.

Cash Kid -  Right. So what resources would you suggest about researching companies to invest or find an advisor like yourself to get help?

Jon -  Yeah, that's a great question. You know, oftentimes if you just simply ask your Mom and Dad say, hey, you know, do we have a financial advisor? And chances are they're going to say yes. And oftentimes they'd be happy to talk to people like you Cash Kid and your little listeners for sure, especially if they have good questions. So I think that's step one just to kind of say, hey, is there an existing relationship that I can take advantage of and ask them questions, number one.

Number two, if that's not available, you know, Google Finance is something that's a great tool. You can go on and check any stock and you can see all the publicly offered information like revenue and expenses and have it done all of these types of things for the marketplace. So Google finance is a very good and free resource to research and look into the stocks that you have interest in.

Cash Kid -  That's it for today. We appreciate your time and your expertise. Thank you for joining us on the call today and boosting the financial knowledge of the fellow cash kids everywhere. Remember that anybody can be a cash kid. You just have to learn how to become one.

Jon -  Thanks, Cash Kid

(music)

Thank you Mr. Jon. Wow, I’ve got some more homework to do for sure as I learned a lot from Mr. Jon and excited to think of the payout to investing early and knowing how to be financial smart early in life. More great interviews like this one in future episodes. Remember to visit us at the cashkidpodcast.com for more helpful tools, information, and past episodes. Cash Kid, out!

Disclaimer:

The information presented represents the views and opinions of the guests. This show does not intend to provide personal investment advice through this podcast. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids, definitely your parents first before investing.

Want some advice? You'll find it in this episode where we interview Financial Advisor Jon Cunningham on best practices to teach kids financial skills and tips to start investing early. Don't miss out! This episode is especially great for parents and kids to listen together. This is a two part series so stay tuned! Learn more about your ad choices. Visit megaphone.fm/adchoices

Advisor Advice Part 1

Welcome back to another episode of the Cash Kid Podcast. If you haven’t already, be sure to visit our site at cashkidpodcast.com for more resources and links to past episodes. Follow us on Instagram as well. We are so excited to continue to see this audience grow. It’s my belief we can help build a generation of cash kids that’s know how to manage, invest, and grow their money. And our guest today, will give us some tips to help get us there. 

The Cash Kid Podcast is underway.

(music)

 Intro tease:

So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday (Here you go sweetie.) Thanks grandma.

Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.

Time to learn how to be a cash kid. (cash register)

My guest joining me today is Mr. Jon Cunningham with Cunningham Financial Group. Mr. Cunningham, or Mr. Jon, as I like to call him, is a financial advisor and considers his clients, partners in creating financial success. He has also been super helpful in answering some of my questions about the stock market and finances. So we're going to cover a few topics with him about how kids can prepare to invest later and be smart investors.

Cash Kid - Mr. Jon, welcome to the show.

Jon - Thanks for having me.

Cash Kid -  First off, tell us a little bit about yourself.

Jon -  Sure. Well, first, just personally, my name is Jon Cunningham, and I'm married to my wife, Ann. And we have three kids, Wes, Grant,  and Charlotte, and actually one on the way that's due sometime in October. Professionally, I'm the managing member of the Cunningham Financial Group. We began in August 1st of 2011 and have grown the practice ever since.

We have locations in Birmingham, Alabama, and in Florence, Alabama, and just outside of Nashville and the town Murfreesboro, Tennessee, and presently have about a little over 2000 clients throughout the country. And we're licensed in about 29 different states. So it's a great practice.

Cash Kid - That's great. So what led you to having a career as a financial advisor?

Jon -  Yeah, you know, it's something that I always had an interest in, whether it be everything from just earning money to saving it to investing. And I always had an interest in the stock market. And actually what's interesting, I entered in college hoping to be an accountant and was an accounting major initially and quickly realized that was not the area of finance that I really wanted to focus.

You know what's funny? It took a class with a a professor, he’s my favorite professor. His name is Dr. Moron, actually, but a fantastic teacher and and taught me to really love and understand numbers. And so from there I wanted to focus on finance and so quickly took on multiple internships with multiple firms and in different areas of focus and quickly began actually growing the client base as an intern with the company in my junior year of college.

Cash Kid -  What do you think is the biggest misconception for adults in managing finances?

Jon -  Yeah, that's a great question. What I kind of find with working with prospective clients and really adults is they look at their 401K as similar to what's called a pension plan. And so people like my parents worked for companies and then their parents worked for companies and they worked at companies like Alabama Power for ten, 20, 30, 40, 50 years.

And that generation of client an employee had what's called a pension plan. And what that basically means is if you're going to work for a company for your entire career and when you retire, you have a pool of money and a pension that's going to pay you an income for the rest of your life no matter how long you live.

And that gave retirees a lot of peace of mind. Well, those plans aren't necessarily available or not as often available to people that your parents age or even my parents age. And they have what's called a 401k, which is an investment account that's provided by by most employers. And it's just a employer sponsored plan that provides an avenue for an employee to save and invest money for for retirement purposes.

And often people look at that and they think, hey, this could be like my pension. I'm going to put money in this plan and I'm going to save money my entire career. And whatever's there is going to last the entirety of my life. But oftentimes there's not quite enough. And often, too, they forget about taxation because all that money that you put in a 401k, you've never paid taxes on that money before.

But when you pull it out in retirement, that's when you start taking the tax and paying taxes on withdrawals as you're spending down that money for retirement. And oftentimes there's not enough money there to last a lifetime.

Cash Kid -  Do you think some of the trouble is because they don't know where to start or they weren't taught financial skills at a young age?

Jon -  Potentially, Yeah. I mean, it's one of those things that kind of go to that point about older generations. There's not always been a lot of transparency when it comes to comes to finances. And oftentimes older generations didn't discuss even how much money they made or what a credit card was or what a checking account was or what a credit score and all those types of things.

So I think oftentimes what I kind of see is most clients just weren't taught at a young age, just the basic principles of of finance. So I think that can play into it for sure.

Cash Kid -  Yes. So what are your thoughts about the importance of kids being presented and taught more financial literacy at a young age?

Jon -  Yeah, that's a great question, Cash Kid. I think it's very important for for kids at a young age to form good financial habits and to form muscle memory. What I mean by that is when you look at the amount of money that you might be bringing in, whether it be from your allowance or it might be from a lawn business or some sort of employment where you're making an income. It's really important to look at that income in different categories because you worked really hard for that money.

And it's important that, you know, some of it spent for fun. You know, you're going to enjoy life. I'm going to go to movies or ballgames or go out to eat with friends or whatever. So a portion of money should be earmarked for for spending. But then, of course, some should be earmarked for for giving, you know, at your local church or charity.

A portion should be set aside for savings for a rainy day for the future. And then also a portion should be set aside for investing. Those four categories giving, saving, investing and spending. You know, those are the same categories that you're going to live within as you age, just as you get older, hopefully you're making more and more money and you have bigger pools of money to work with.

But I think if you can form that habit, even at your age, that those are qualities and traits that will be transferable throughout life.

Cash Kid: Great advice Mr. Jon! We’re going to pause our interview there for today as he had such great tips to share, we had to split it between two episodes. We try to keep our episodes shorter for our audiences attention span….uh umm… no offense, I’m speaking to myself too…hahaha.

(music)

Alright, that wraps up this episode. Part 2 of Mr. Jon Cunningham’s interview in our next episode. He’ll discuss ways you can help kids start investing now. Don’t forget to check out our website at Cashkidpodcast.com and follow us on Instagram. Cash Kid, out!

Disclaimer:

The information presented represents the views and opinions of the guests. This show does not intend to provide personal investment advice through this podcast. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids, definitely your parents first before investing.

https://www.cunninghamfinancialgroup.com/

Want to meet another fellow "Cash Kid?" In today's episode, we'll meet George Cochran and learn how this Cash Kid started his own dog sitting business. Learn more about your ad choices. Visit megaphone.fm/adchoices

A Cash Kid Dog Sitter

Hey you guys it’s Cash Kid here. Today, your going to hear from another fellow cash kid who started his own business at just 9-years old! He took a passion and turned it into making cash. 

An interview with him, coming up. The Cash Kid Podcast is underway.

(music)

 Intro tease:

So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday (Here you go sweetie.) Thanks grandma.

Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.

Time to learn how to be a cash kid. (cash register)

Joining me today is another fellow Cash kid, George Cochrane. George runs his own dog sitting business and is having quite the success. We are here to learn more about him and his business. That's why we consider him to be a cash kid. George, thank you for joining us on the show. First off, tell us a little bit about yourself.

George - I'm the oldest of four kids . They names are Billy, Johnny and Marianne. I was born in Vestavia, Alabama. And yeah, I've been running George's Pet Business for around three years now. We started around COVID, and we've only gone up from this point. 

Cash Kid - What type of business are you running?

George - You probably got it from the name, but I run a pet sitting business where I only charge $10 a day. This idea helps customers who kind of probably want to save money for their trip and don't want to like, we charge like $100 a day for the vet and stuff like that, you know?

Cash Kid - So, what gave you the idea for this business and why did you feel it was a need that others would want?

George - I love dogs. I've wanted one for as long as I can remember. But right before COVID, it seemed like my family was not going to get one anytime soon. So I decided to create George’s Pet Business to be able to take care of something that you love and also be able to make a little money off of it. So, we started off charging only $5 a day, but we got so much more popular and so we started making it $10 a day. But still, that's a really big step down from the cost of the vet.

Cash Kid- So how did you get your first customers?

George -  Oh, well, some of my mom's friends, they were going out of town and they had a lot of kids and so they'd probably have to spend a lot of money, meals and stuff and all the stuff you get on vacation and stuff. And they didn't want to waste their budget on going to the vet. And so my mom texted them and told them about George’s Pet Business.

Cash Kid -  Okay, so how do you advertise your business?

George -  So sometimes I'll go on like iMovie or Cap Cut and make like thirty second long ads and put them on Instagram.

Cash Kid -  Yeah. So do you get help running your business?

George  - Yes. Sometimes my siblings and my parents help play with or walk the dog in the early morning, but usually it's my parents who have to walk the dog at like the middle of the night. So, sometimes I'll give them some of the profit. My siblings don't care. They just love to play with dogs and stuff.

Cash Kid -  So, um, where would you like to see this business go?

George -  Oh, I would love to learn to, like, trained dogs and have, like, a training school and be able to charge, like, still, like, $20 a day to teach them how to sit and go to the bathroom outside and all that stuff.

Cash Kid - Yeah. So what brings you the greatest joy at running a business as a kid? Like taking care of animals, the money, etc.?

George -  I love taking care of different breeds of dogs, and that's pretty much it. You know and earning money so I can save up for stuff.

Cash Kid -  Yeah. What advice would you give other kids about how to start a business like this?

George -Yeah, this is important. Do not overprice anything. Trust me. If an adult is coming to you after trying to go to the vet and stuff it means she's burned out from spending so much money charge like $5 to $10 a day like I did. Trust me. Don't overprice it.

Cash Kid -  Okay. What do you feel you've learned from a young age about running a business?

George - I think it's important to, like, know your customers and make them feel comfortable that they're, like, dropping their dog off at your house for, like, a week or so. Yeah. Just make your customer feel comfortable.

Cash Kid - How long would you like to keep doing this as a kid?

George -  I mean, I just want to do it as long as I can because I had so much fun with it and we're still just growing and stuff, so we don't want to stop yet.

Cash Kid - Thanks George for joining us on the Cash Kid Podcast. And good luck growing your business and passion to take care of dogs.

(music)

Well, there you have it. Another way a kid is making cash. Do you know a Cash Kid in your area? We’d love to feature them on the podcast.  Write to us at [email protected] to tell us about their business and we’ll feature them on a future episode.

That’s wraps up today’s episode. We have so much planned so stayed tuned. Cash Kid, out!

Disclaimer:

The information presented represents the views and opinions of the guests. This show does not intend to provide personal investment advice through this podcast. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids, definitely your parents first before investing.

In this episode, I will talk about different types of spenders and what does different types of spiders do. So, you can discover what type of spender are you? Learn more about your ad choices. Visit megaphone.fm/adchoices

What kind of spender are you?

Hey cash kids welcome to the Cash Kid Podcast. Today we're going to talk about what kind of spender are you. How can the type of spender you are affect your financial path? We’ll explore this, coming up. The Cash Kid Podcast is underway.

(music)

Intro tease:

So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday (Here you go sweetie.) Thanks grandma.

Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.

Time to learn how to be a cash kid. (cash register)

Now there are many kinds of spenders (payout coins sound effect). There's a natural spender that likes to spend money often but only spend money on things that matter. There's a careful spender that thinks very carefully about whether it was a good option before they buy it. And there's a rare spender and they don't spend money often. They normally save money until they really need it. And then there's the big spender. This person spends money on things that they don't even need but they just do it so they look cool and maybe they just want it.  

(sound effect - Big spender here….show me the money, yay! -Andrew voice) 

Haha, first off let's talk about the natural spender. The natural spender may enter a store and immediately tries to find something to buy.  But they’ll only spend on something that matters to them. A natural spender is still careful though, on what they spend. Many times natural spenders are generous, thoughtful, and ready to spend to take action on something. These people are normally good income makers.  They can provide for their families and they spend money in useful ways. 

Now we're going to talk about the careful spender. This person really thinks before they buy something and they weigh all the options before spending. They don't mind waiting for a sale to happen on a product that they really want. This person takes time looking through the store for discounts and coupons.  When they get a deal they go in and they try to get alot of it before the price rises back up. These people spend money but not very often. 

(music)

Now we're going to talk about the rare spender. These people they don't spend money very often. They would rather save money for when they really need it like if a car breaks down or they have a home repair. These people usually can go to the grocery store and they only pick out things that they really really need sometimes. So, they aren’t the Target shoppers who go in for one item and come out with 20. (sound effect - What just happened? - Mom)  

A rare spender won't even go out and spend that much money. They normally ask friends if they can borrow something or use it instead of using their own money.

Now we have our big spenders. (coins, cash registers - money music) These people they'll go to a shop and they'll just buy a ton of things even though they don't even need half the things they buy. They have luxurious houses. They have the latest iPhones. These people normally make a lot of money and they have a ton of money to spend.  But also spending this much money can be a bad thing sometimes if they don't set enough money to save or invest.

(music playing under next section)

It’s actually not wrong to be any of these types of people. In a later episode, we’ll explore this more on being a natural spender vs. a natural saver. But recognizing the type of spender you are early can help you to set good financial habits in place to control your spending. 

That’s it for this episode. Be sure to head over to the CashKidPodcast.com for more help resources and past episodes. Follow us on Instagram as well. Cash Kid, out!

Today we're gonna be talking to someone that introduced me to the stock market. Also we're gonna be talking about the Stock Market Game from my former teacher Mrs. Abbott.Link to Stock Market Game Link to state specific resources and links to register. Learn more about your ad choices. Visit megaphone.fm/adchoices

Welcome back to another episode of the Cash Kid Podcast. Today, we’re going to talk about how to buy and sell stocks, but never lose a dime of your own money! That’s right. One of my former teachers is going to tell us how. That and more coming up. The Cash Kid Podcast is underway!

(music)

Intro tease:

So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday (Here you go sweetie.) Thanks grandma.

Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.

Time to learn how to be a cash kid. (cash register)

Kids today love to play online games. (Mario music sound effect). But in this episode, we’re going to talk about how you can use $100,000 to buy and trade stocks with no regrets. That’s right! It’s known as the stock market game. It’s how I first learned about my love of the stock market… and I never lost a penny of my own money.

So let me introduce our guest and my former teacher Mrs. Amy Abbott to the show, to explain how it works. Mrs. Abbott was one of my teachers and during the school year we did something called The Stock Market Game. We’ll provide links to the game and more on our website at cashkidpodcast.com. I’m excited to have her join us for this episode to talk about the stock market game. And, I guess you have her to thank for what led to this podcast.

Cash Kid -  Mrs. Abbott, thank you for joining us today. First off, tell us a little bit about yourself.

Mrs. Abbott - Hey Cash Kid, thank you so much for having me on today. Like you said, I am a teacher. I teach 4th and 5th grade gifted students here in Birmingham, AL. I’m a wife and a mom. I have two girls who are ten and five. 

Cash Kid - When did you learn about the stock market game and why did you feel it would be a good idea for students?

Mrs. Abbott -  So, I actually learned about the stock market game when I was in fifth grade because I played the stock market game as a student. But back then it was not digital like it is today. So, I had to bring in my dad's Wall Street Journals , the actual physical newspaper, and I'd bring a big stack of them in for the week and we would spread them out around our classroom. And then we had to look through all of those ticker symbols. We couldn't just search for the one we wanted. We had to search through and find our company and see how it had done for the week. So we kind of just check that once a week. It wasn't like a daily thing and I loved it. I still remember that as an adult, and I thought it would be a great fit for my students because it's such a real world simulation. It teaches real life problem solving skills and just so many valuable life lessons for the future.

Cash Kid -  That's great. So how long have you been presenting this as an option for students?

Mrs Abbott - So I think that I first started presenting this as an option probably the first year that I started teaching Gifted, which was in 2006. That was about 17 years ago. It's been around for a long time.

Cash Kid - How does the stock market game work?

Mrs. Abbott - Okay, so the stock market game is a ten week online trading experience. Students begin with a fictitious hundred thousand dollars that they can use to purchase stock bonds and mutual funds. They can make any number of trades with their funds. And then at the end of the ten weeks, the program sees whose portfolio is the most valuable and the most valuable portfolio at the end of ten weeks wins for their division. It's open for grades four through 12.

Cash Kid - What do you feel your students learn from participating in the stock market?

Mrs. Abbott -  All right Cash Kid I could go on for a long time about this because I think the students learn so much. You know, they're learning a lot of economic and financial principles. They're learning to work with real world variables. So like actual changing prices, they're working with a changing market. They're learning how current events can impact the economy. They're also learning about how companies get started and how a company can go public and grow.

They are learning, you know, teamwork, computer skills, critical thinking, problem solving. And another thing that I think is great is they're learning some valuable lessons about how to handle adversity and how to adjust and adapt when things do not go as planned. Because Cash Kid did your stocks always do as well as you had hoped?

Cash Kid - Uhhh, No.

Mrs. Abbott - What did you learn from playing the stock market game?

Cash Kid - Well, I learned that the stock market like you doesn't have a 100% chance you’ll gain money every single day. It's up and down. There's always risk. And like it's a great way to actually tune your financial skills. Sure it helps you learn how to budget and stuff like that, but it's a great experience to learn how to invest and know what companies wouldn't be as risky and other stuff like that.

Mrs. Abbott - Yeah, I forgot to mention we're talking about how the game works, that even though the money is obviously not real, we are using real time pricing. So you're looking at the actual prices of companies making trades based on real time pricing. So that's an important thing. I forgot to mention.

Cash Kid - Do you know how schools get access to use it or how individuals can play the stock market game?

Mrs. Abbott -  Yes. Okay. So all you have to do is go to stock market game.org. That's all one word stock market game.org. And then find your state. So, for example, we play the Alabama stock market game, but it's all run through the same website. It is open to anyone in grades four through 12. It is $15 per team and I think you can have anywhere from 1 to 5 people on your team.

They also offer scholarships. So if you can't pay the $15, they're very willing to help you with that. And schools get a discount. So the more teams you have, the cheaper it is. And you can play as an individual as you want to. I actually tested that out last night. I tried to sign up my daughter and it looks like anybody can sign up. You just need an adult to help you register. And it looks like now they're offering three sessions. So there's actually a summer session from July to August, and then they'll take a break and then do a ten week session, usually kind of like around mid-September through December, and then again kind of in the spring, maybe February to April or May, somewhere in there.

Cash Kid - Yes. Okay. So what have you learned from watching your students play this game?

Mrs. Abbott -  So I love watching my students learn new things. I love seeing them find their passions like the Cash Kid. And I have also learned that kids make great investors.

Cash Kid - Do you feel more financial advice would be beneficial to students?

Mrs. Abbott - I do. What do you think of Cash Kid?

Cash Kid - I think it would be amazing. I recently saw this Instagram post my mom showed me and it was 35 years ago if you invested $100,000 in the S&P, it will now be worth $1,000,000. But if you waited just ten years, it would only be $300,000. And so in just ten years, you can make a $700,000 difference.   

Mrs. Abbott - Yeah.

Cash Kid -  Yeah, It's really important to start as kids.

Mrs. Abbott -  I agree. And I think that kids just need to be learning personal finance skills in general. You know, when you grow up and graduate and go away to college, you might have a lot of booksmarts, but you might not know anything about how to manage your money or invest or grow your money. So I definitely think it's something that we should be teaching kids.

Cash Kid - Yes. And what advice can you give other educators about the stock market game?

Mrs. Abbott - My biggest advice to other educators is just give it a try. Don't be intimidated if you don't personally know how the stock market works and how to do all of that. Just get in there and try it. Set yourself an account. You can play the game alongside your students and learn with them. And I think that doing that is the best way to learn.

 So just get in there and try it. It's not real money. So if you lose all your money, it's okay. It's a good learning experience. Cash Kid don't you think that you learned the most just by getting in there and playing the game?

Cash Kid - Definitely. I was able to see how real trading actually worked and how news affects the stock market. It was self-explanatory once you got on there and you could learn a lot from it.

Mrs. Abbott -  Yeah, I agree. So I do a little prep work because my students are so young. The older kids might already know some of the stuff we do, but we talk about how companies get started, how they go public. But the most learning really happens once the game gets started and they just get in there and do it.

Cash Kid - Are there any other things you would like to share?

Mrs. Abbott -  I mean, I really just am a big fan of the stock market game. I think it's a great program. They have so many tools for educators, so when I log in as a teacher, they have a wealth of resources for me. So they've got lesson plans, they've got articles, they have tips. So there's all kinds of things for adults as well as just how to guide your students into playing the game.

And I just think they can learn so much. Look at the Cash Kid. I mean, we can thank the stock market game for this awesome podcast. I'm so proud of you.

Cash Kid - Thank you.

I would say if you're thinking about it, do it. Just don't think like, o h, no, but what if it doesn't go so well? Well, it doesn't matter if it doesn't go so well. The money's fake and it's a great learning experience, So I would do it. No matter what.

Mrs. Abbott - What about teachers that are thinking about trying it, but maybe they think it's too hard.

Cash Kid -   Oh, no. Just do it like I. I would love for other teachers to be able to learn because it would be very beneficial for other kids.

Mrs. Abbott - 

Now, Cash Kid. I have a question for you.

Cash Kid - Yes.

Mrs. Abbott -  Are you still investing with fictitious money or have you moved on to the real thing?

Cash Kid - I've moved on to the real thing.

Mrs. Abbott -  That's what I thought. That's what I thought. Yeah.

Well, thanks for having me on today.

Cash Kid - Oh, thank-you Mrs. Abbott.

( a little pause a music starts up)

Teachers. We truly have them to thank for so much. 

(music)

Well, there you have it! How to play the stock market and never lose a penny of your own money. Visit the cashkidpodcast.com website for a link to the stock market game and state specific rules for the stock market game and links to register.

We have so much more planned for this podcast so stay tuned. Thank you again for listening. Cash Kid Out!

Disclaimer:

The information presented represents the views and opinions of the guests. This show does not intend to provide personal investment advice through this podcast. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids, definitely your parents first before investing. 

Link to Stock Market Game

Link to state specific resources and links to register.

Today I'll explain the needs, loves, likes, and wants budgeting practice. Learn more about your ad choices. Visit megaphone.fm/adchoices

Needs, loves, likes, and wants

Hey you guys it’s Cash Kid here. Back again with another cash kid podcast episode. Today, we’ll be talking about your Needs, loves, likes, and wants. This is a concept many use when it comes to spending. It’s like a checks and balances tool.  But, more about this coming up. The Cash Kid Podcast is underway! 

So you’ve got some cash. Maybe from an allowance, or that money your grandma gave you for your 7th birthday. Here you go sweetie. Whoa, Thanks grandma!

Whatever it is, what are you going to do with it? Spend it, hide it away… or maybe invest it? Let’s start learning how to make that money grow.

Time to learn how to be a cash kid. (cash register)

Do you need it?

Do you love it?

Do you like it?

Do you want it?

These are four simple questions you can ask yourself before spending any money. 

It’s a budgeting practice called needs, loves, likes, and wants. This method helps remind you to be more mindful of your spending and help you spend less.

(01:53)

So, first is “needs” which is pretty simple. 

That’s my Mom listing our needs, like groceries so we can eat.

A "need" is something that will help improve your health like food and water or will provide safety like clothing and shelter. Now when I say clothing I’m not talking about some super cute designer dress or some $100 shorts you’ll use at the gym. This “Need” concept should be the first question you ask yourself. “Do I need this… Will this help improve my health or keep me safe?” These are questions you can ask yourself.

(2:32)

Next we have our "loves." A love is something that will provide long term enjoyment like 6 months or more. Now a video game console like a switch or Xbox will last you a long time as long as it doesn't break. But a game for it might be a "like." More coming up. 

(music)

(3:09)

Ok, that brings us to the question of “Do you like it?”

A "like" is something that brings you short-term enjoyment. For instance, we like to go to the movies, or we like to go to the beach every year. 

Now, recently around the time we released this episode, the new Zelda game came out called The Legend of Zelda: Tears of the Kingdom. This is an example of a like. Likes are simply things that give you joy in the moment.

Sometimes we get too wrapped up in our likes and over spend. So, it’s good to stop and ask, “Do I like it?” before buying it.

(3:42)

And that brings us to our last question, “Do I want it?”

Well, let’s be honest, as kids… we “want” a lot of things. We’re always asking our parents for something we want.

(Child reading his list of wants.)

That’s my little brother last week telling my Mom his new wants list. We’re not even sure if some of those things exist, but it’s a good example.

A want provides temporary satisfaction. Like that candy bar you just bought at the concession stand or splurging on a new pair of shoes you saw and thought were cute, when you already have five other similar pairs. Wants basically amount to spending without thinking much about it. Be careful with your wants… they can drain that bank account fast.

(music break)

So, that’s wraps up our discussion on our needs, loves, likes, and wants. Just learn to recognize how you spend your money and slow down to ask yourself those questions before you spend that hard earned cash to make sure it’s worth it.

Thanks for listening. Be sure to subscribe, leave a rating, and come back for more helpful tips and interviews with experts. Cash Kid, out!

Disclaimer:

The information presented represents the views and opinions of the guests. This show does not intend to provide personal investment advice through this podcast. This content has been made for informational and educational purposes only. To make a full and informed investment decision, we advise you to speak with a financial advisor and for kids, definitely your parents first before investing.