Lunch With Sandy
Welcome to the "Lunch With Sandy" podcast, where we serve up candid conversations seasoned with humor and insight. Join us as we delve into much-needed discussions, sprinkled with our unique sense of humor. On the menu, you'll find a variety of topics, from conflict resolution to navigating tricky questions with grace. We also explore current events, sharing our perspectives on the everyday trials and triumphs. So pull up a chair, grab a plate, and enjoy the feast of conversation.
Lunch With Sandy
From Allowances to Assets: Teaching Kids Financial Literacy
Ever wonder how to secure your child's financial future in a world where piggy banks are replaced by digital wallets? That's exactly what we're unpacking in this newest episode of Lunch with Sandy, where we're serving up a hearty portion of financial wisdom. Our conversation takes you through the journey of instilling the value of a dollar (or cryptocurrency, if that's your jam) from the sandbox to the boardroom. With our nearly two decades of marriage as the backdrop, Sandy and I don't shy away from mixing in personal anecdotes with hard-hitting advice, revealing how our own daughters are learning to navigate the economic waves with savvy and grace.
Today's chat isn't your typical lecture on savings accounts and budgeting - although we've got plenty of that too. We introduce our fresh-off-the-press segment "I Got Something to Say," where we let our hair down and get real about the frustrations and triumphs of property management. And it's not all about the Benjamins; we delve into the significance of relationships and communication, especially within a marriage, as foundational pillars of any solid financial strategy. With each story and strategy discussed, we're peeling back the layers on what it means to truly prepare our kids for the financial realities of adulthood.
As we wrap up this episode, our hearts are full with the hope that our shared experiences and the insights we've gathered will inspire and empower not just our daughters, but also your children. Guiding the next generation through the intricacies of investing, real estate, and the responsible use of credit is more than a lesson; it's a legacy. So, pull up a chair and get ready to be informed, entertained, and perhaps even a little challenged, because this is one family table where the conversation about money is anything but taboo.
In a relationship, when is honesty not the best policy? How do you balance what you want versus what you need, and is there something you need to say to your spouse but can't find the right way to say it? If so, then you're in the right place. This is the Lunch with Sandy podcast. With nearly 20 years of marriage under their belts, Terrance and Sandy Jackson discuss a range of topics, provide valuable insights on relationships and talk about the conversations married couples need to have. So what does lunch have to do with all of this? Well, it's a metaphor for how these conversations originally started. Speaking of conversations, let's get one going. Here's your hosts, Terrance and Sandy.
Terrance:Welcome to another episode of the Lunch with Sandy podcast, where we delve into different topics and give you perspective from two people who've been married for a very, very long time. I'm Terrance.
Sandy:And I'm Sandy.
Terrance:And today we're going to be continuing the conversation that we started during the last episode about preparing your kids for the future, more specifically, teaching them financial literacy. But before we do that, there are two things we got to get out of our way. First we want to make sure that we let everyone know to follow us on your favorite podcasting app and to also follow us on social media at lunchwithsandycom. In a second and most importantly, we got to get to that point of the episode where we ask the burning question how's Sandy?
Sandy:Sandy's here wondering if other people who have been married longer than us are offended when you say a very, very long time.
Terrance:Well, listen, if they're offended, then I'm going to say to them this is about me and you.
Sandy:I said, I feel like you've been married to me for a very, very long time. I don't know how I should be taking that.
Terrance:I'm still here, ain't I? It's the thing Listen time is relevant. Time passes different for everybody else. When I say a very, very long time, you're thinking it from the negative connotation. What I'm saying is I put work into this game. I've been in it for a minute. I know what I'm talking about. You know what I mean. I'm an OG when we talk about this here. That's what I'm talking about. If you ain't been married for a long, long, long time, put some respect on my name. Okay, now.
Sandy:Now that we've cleared that up.
Terrance:Now that we've cleared that up. Sandy always tries to come at me like that. Now that we've cleared that up.
Sandy:I do not always try to come at you like that.
Terrance:I'm going to change the game up as we grow and things change. You know I have these different segments and I used to have a segment and you just now finding out about this. I used to have a segment where I would first it was shining the light on and then it was bringing into the light One of those. But I'm changing all that now because you know what, sometimes maybe I want to go a little dark, like you do. So, rather than that first section being bringing into the light or shining the light, when we try and put something into the closet.
Terrance:Listen. There you go, Listen. No, the name of that new segment is going to be I got something to say.
Sandy:Okay.
Terrance:Because it's more of a general statement and you can look at it from. I got something to say. Hey, listen, I got something to say and I want you to hear.
Sandy:I'm sorry. When do you not have something to say?
Terrance:This is when I really have something to say and I see that was a shot, but I'm going to let that slide.
Sandy:Shots fired Bang bang Do you have something that you want to say no, I got something to say.
Terrance:I am tired of having to deal with the look on Sandy's face when I tell her this work that has to be done over at the apartment house. When you have property, sometimes you got to deal with the problems and expenses that come along with it and the look on her face always says I don't want to do that.
Sandy:No, that's not what the look is. The look is more thing. Why is it always happened at the most inconvenient time?
Terrance:When I say what the look is, I'm defining what it looks like to me. You can't see through my eyes. You might not be giving off that message, but that's what it looks like to me, and I asked you if you had something to say. You said no. So this is my time. I got something to say. She always does that.
Sandy:I got something to say.
Terrance:Go ahead. What's on your mind?
Sandy:Why are you always trying to battle with me?
Terrance:Anywho, let's get to what's on today's menu, because we can go back and forth for a very long time. We start talking about this. So last week actually the last.
Terrance:Well, we've been married a very, very long time yeah, it's been a very, very long time. The last episode and the last couple of episodes we've been kind of steering towards looking at how to better prepare our kids for the future. As you know they may not know we have three daughters and I constantly think about the current economic environment actually more than just the economic environment the state of our country as a whole, the state of the world as a whole, and I always think about what advantages I can provide to them in the future, based off the challenges that they might have to face. And so last week we talked about some ways to prepare them for the future and we left off with the topic of teaching them financial literacy, and I didn't want to get too much into that because I think we were already over. I don't want to say over, because however long the episode is, the episode is, but we were. It would have taken too long to add that in to that episode, so we decided to do a separate episode specifically for that.
Sandy:Yep. Yeah, I was wait, you notice, no, I don't want to say like you know, try to be cognizant of people's time right. People don't want to listen to us for hours and hours.
Terrance:No, listen. Well, that's listen. This is your opportunity. Yeah, you got something to say, say it. We've gotten past that point of the show. You know what I mean. But we are having a conversation as a back and forth. But if you got something to say, say it, as long as it relates to the topic ahead, okay.
Sandy:I got plenty to say, but we don't get started.
Terrance:Well, so let's get started. So I want to start by what I mean when I say financial literacy, and I think it's important for me to define what it is I'm talking about. There's a term, and a lot of the stuff falls under the term financial literacy, but when I talk about financial literacy, I'm talking about teaching your kids to plan, be responsible and be resilient financially. So the question becomes and actually, before I ask that question, do you have a problem with that definition? Let's bring Sandy into the conversation.
Sandy:No, I would just say that I think it's important to just also for them to understand, kind of like, the inner workings of money too. You know, it just makes me think about some recent conversations I've been having with Lexi, with her wanting to learn more about, like the stock market as well. So I think it's yeah, you know how to be responsible, how to use your money, how to save, but also learn about broader aspects when it comes to opportunities and money. That is out there, that's all.
Terrance:So, getting back to what I started saying before, I gave Sandy the opportunity to chime in on that definition. How do you do that? So we've come up with some basic considerations that you should think about when you're planning on teaching your kids financial literacy. And the first one and I think this is important start early with the basics. When you think about it and you start thinking about, okay, well, this is some heavy stuff. Particularly when they're young, it might seem like it's heavy, but the sooner that they start to grasp those concepts about understanding the value of money and budgeting it, the easier it is. Because what happens is if you don't start that young and they start to one ask for money or ask for things, or they get money and there's no guidance or framework on what they should do with it, and again you might think that because they're so young, there shouldn't be. But it gets harder as they get older because you haven't start to build in those habits. So I would say start early with the basics.
Sandy:Right. So I think there's two ways to do that. So one, just even having conversations with each other in front of your children. You don't have to get too far in depth, but see them conversating, because early on what they do is mimic you, right.
Terrance:It's more than anything.
Sandy:that's how they learn. So having those conversations in front of them to some degree, I think, is helpful. And then, like you said, having them start learning about the value of money and budgeting. Oftentimes they're given cash for various reasons birthdays, holidays, any major milestone, like we're Catholic. So you got first communions and things of that nature, sitting down with them and being like, okay, this is how much money you have, this is what we're gonna save, this is what you can donate, and kind of go from there.
Terrance:Yeah, and that's important. And the other thing that we wanna make sure we mention is teaching them responsible spending. It's okay for them to wanna go out and buy the new toy and things like that, and their kids are gonna wanna do that. But again, the sooner you start to introduce these concepts to them, the easier it's going to get as they get older, because if it's introduced to them when they're younger, as they start to get older that becomes the norm, and now it's practice and that stuff is instilled in them. So the other thing you wanna consider doing, what you should do, is open a savings account and when you open the savings account, take them with you.
Sandy:Mm-hmm.
Terrance:You talked a second ago about when they get the money, basically splitting that money up. When you have a situation when you open up a savings account and then you encourage them to say, okay, well, when you get some money, you wanna take this amount, whether it's a certain amount, whether it's a percentage, and you want to deposit that when it's from any type of holiday gift or one of those things. That goes a long way. Again, you're teaching them good habits while they're young.
Sandy:Yeah, no, definitely, and I kinda kicked myself. I feel like we're a little late in the game with A-Lot 100%, 100%, but we're working on it.
Sandy:But the fact that she now has her own account, which comes with the debit, and it has a savings component to it. Now it's I feel like we're really having more of those conversations, because even going into this holiday season, she wanted to purchase gifts for people, so then it was having the conversation with her. Okay, well, how are we gonna handle this next year? This is how much you need to save per week to get you where you wanna be, to be able to afford certain Christmas gifts by the time Christmas rolls around. And get next year. But yeah, so unfortunately a little late, but at the same time, she's still only 13,.
Sandy:I feel, like we caught her too far.
Terrance:Yeah, and I wouldn't say unfortunately. I mean, I think it would have been easier if we started earlier. And you're right, she's 13. And so the one thing that is hitting her now, because we've just started having these conversations so last week we went to the hockey game and obviously I took her out to her and her friend out to dinner. Then they wanted to go to the candy store, and then we went to the hockey game and they wanted to go to the concession store I mean to concessions and when she wanted to go to the team store afterwards I told her how much I had spent before we even got to the team store and the look on her face was, and so now she's grasping with that. I think that it would have been easier for her to understand. Or when she started talking about okay, well, here's what I wanna do.
Sandy:Yeah.
Terrance:Priority would have taken place and she could have said okay, well, I know, if I do this, I'm not gonna be able to do that, and so on and so forth. But with that in mind, I think it's also important and this is something that I've been trying to work on is teaching kids budgeting skills. I've been trying to work with her on this and I've pulled a couple of worksheets and it's just something that it's easy for them. It's gonna be easier for them if you have something that they can actually look at and it says, okay, well, I've received this amount of money.
Sandy:Yeah.
Terrance:Looking at my budget sheet, my worksheet or whatever you wanna call it. I have to take this much and I gotta put it in the savings.
Sandy:Yeah.
Terrance:I gotta take this much. And when I say savings, I think it's good to look at savings from two perspective Short-term savings and long-term savings. Yeah, that short-term saving is okay. Well, I know I wanna get this and I don't have enough money for it, but if I save up this much over this amount of time, I'll be able to get X, whatever, and then you have that long-term saving where you're putting that money away for something that you may want, that you don't know that you want, that's in the future, and then you have your spending cash. But I think it's important that you start early. But at the same time, by starting early, I think you need to start simple. So, whatever you give them, whatever worksheet you're working with, make it simple enough so it's easy for them to understand. So now they're not in a situation where they're frustrated because they gotta do all this math and they gotta figure out all this complex financing finance stuff when they just wanna go and buy a toy from the store.
Sandy:So in today's context too, I think it makes it a little difficult. I think, like you said, with this seeing one with the older girls, I think we also had more of our own budget where with Aila it's kind of been like free for all she gets it in allowance, but we still pay for pretty much everything that she wants. Right, and now we're switching that around. That's the benefit of being an only child, and it's not so much that she's an only child.
Terrance:But the age gap is so different and she's the only kid at home.
Sandy:It's the age gap. We're more established financially and everything, so in that respect it just comes easier for us now, and hence that's trickled down to her as well, where the older girls, they didn't have that ability, and then the other pieces back then it was just street cash, you know.
Terrance:Yeah.
Sandy:So it's easier, like you said, visually to see. Okay, well, how much do I have saved, how much you know? Now it's via, you know, apps and debit cards is what she's using predominantly.
Terrance:Even from the cash perspective. This is why I say it's important to teach kids the value of money early. Half the time she doesn't know where her wallet is with all that cash. I know where my cash is she knows where her debit card is.
Sandy:She does, she does At all times at least, even though she forgot her pin number the other day but you know she always forgets that pin number, but anyway. But I think it's actually a wonderful account and you know I don't work for Chase, but shout out to Chase for developing that. You know child checking and savings accounts that they have. That makes it easier for them.
Terrance:You can actually pay her for a lot, and now is there an app for that. Yeah, does she have access to the app to see?
Sandy:That's good yeah, and you can reward them for doing chores.
Terrance:That's cool, listen, I mean. So now.
Sandy:Talk about like young age and stuff like that. Yeah, you know, we never had that. You know, for us it's like your allowance is because we're a family unit and we work together.
Terrance:Yeah.
Sandy:You don't get paid for vacuuming.
Terrance:We ain't got no allowance. But listen, here's the thing. I don't know if they have that, but let me ask you this question Do they have a budgeting aspect of that app? Because that would be great.
Sandy:They might. That's what we really, you know she's only had it a short period of time and you know I it's not where I used to do in most of my banking. So I haven't really like looked into that.
Terrance:but yeah, we should look into that. Yeah, all right, let's get back on track. So another thing, and you mentioned this earlier when we talk about teaching your kids financial literacy, have conversations not just between the parents but with the kids and talk about the economic reality of things. The thing is, when you talk about certain things, particularly financial things, the age of the kid is going to come into play. Right, they have to be able to understand it. But you want to have conversations about whether it be Inflation and I know some of this stuff sounds heavy, but you got to find a way to make sure that the kids understand that there are different things that affect yeah you financially.
Sandy:Well it's. It's funny because even just going to the store and reminding a la that there's tax, yeah, she's like, oh, this is $30. I have $30 and I'm like, well, you don't have enough because you have to account for tax, you know. And then somehow, I think in that conversation you can also talk about inflation. Oh, yeah, you know like it costs 30 bucks today, but that doesn't mean six months from now it's gonna cost $30.
Terrance:Yeah, the goal is, as they get older, you want to be able to teach them to adapt to those economic changes. It's not constant today, your dollar might be able to get you this, tomorrow it might not. Yeah, and the sooner that we can begin to teach them that, the better off they're going to be, because, again, it's all about what you have in your bag and when your bag. I'm not talking about the money. I'm talking about, up here, the knowledge that you actually have. That's gonna make it easier for you to navigate as they actually get over. And the one thing that we got to remember, too is you know I keep saying you know they're kids, they're kids and they're young. Kids are smart. Yeah, you know they. They have the potential to Take in all this information, and they might not understand it on the first go round, but as the more time you have conversations with them, they're gonna pick it up.
Sandy:Well, even when you were just talking about a little while ago, the short-term and long-term savings, right, like that's a perfect opportunity to also say okay to your point, this cost this today. But you know, depending on how long it takes you, the price can rise and rise Can rise and fall. So you want to account for that, right, you know so. So that's also something. I think that's like a good opportunity to have the conversations kind of simultaneously.
Terrance:Yeah, this next one is something that I've been trying to do with the kids for a while and my effort hasn't been all that it should be, and it's hard when the kids are older, but Getting or pushing your kids to explore and this obviously comes along as they get older to explore Non-traditional thinking we, when we start talking about being able to generate income, exploring their interests, helping them understand that, you know there's value in creativity, you know there's this value in innovation, there's value in being able to adapt. When you talk about whatever the work workforce is, there are so many opportunities to generate income outside of the Traditional way of actually doing it in the traditional way. Talking about go to school, graduate, you know, get a nine to five and and that's your life.
Terrance:Yeah you know, when a kid has a particular skill set, I mean I'll use a las, a perfect example her and Shayna. They're incredible artists. Yeah you can. You can create something and Send it to one of those. What is a Print shops or whatever. Yeah, put it on a t-shirt or whatever, and there's so many different ways that you can actually generate income and there's nothing that says that you have to wait till you graduate high school or college Before you start to explore those things.
Sandy:No for sure. I am actually a little jealous because the the drawing Jean skipped over me, way over you, which is kind of funny at times, because they was like can you draw me this? I was like I have no idea how to join you, it's easy and.
Sandy:I'm like, if it's easy, then you draw like, because it is not easy to me, I can give you a stick figure. But yeah, to like. Everybody's even looking for creative t-shirts and things of that nature. Right, and by having that ability, you could really do something with it.
Terrance:And they have all these sites where you can create artwork and then sell your artwork to that site and then they'll use it for Non-rule, I mean for royalty-free stuff and things like that. So there's a market out there. There's a market out there for how do you want to call it? I don't want to say contract work, but you know, like fiverr in those places where you can do project-based work and Someone pays you for it, and so those are the type of things that you want to at least Let your kids know that it's okay to start thinking like that yeah changing the thought process or not necessarily changing it, but letting, letting them know that there are options out there that you don't have to be stuck to.
Terrance:This is this and only this right now.
Sandy:Yeah, exactly like. Think outside the box sometimes. There's a lot out there on the web these days.
Terrance:Yeah so I'm gonna let you. I'm gonna let you take the next one, because you were just talking about this with you said Lexi called you the other day.
Sandy:Yes, lexi has been right trying to learn more about her account. So that's actually something that we also did when the girls started working and they started working pretty young.
Terrance:Lexi started pretty young. Yeah, you just shana didn't start that young.
Sandy:Well, what was shana? 16 like see 14?.
Terrance:Was shana 16 or she?
Sandy:17? Yeah, I think it's my 16.
Terrance:Yeah, Lexi started a 14. Like they actually had a two-year jump.
Sandy:Yes, but when they did start working.
Sandy:So not just a savings account, we also opened up an IRA for each one of them and had them put away a specific portion of their Earnings right into that IRA, because you can do that, yeah, and they age, that, your child is working, they're eligible for that. So I, we made sure to get the jump on that right. And so now Lexi has some money saved in her IRA and also from working or 401ks, and now she's trying to learn more about, you know, investing and how does she? How does she do that? Which is kind of funny because I think Lexi thinks very concrete, like how am I selling and buying this stuff I'm not getting, but you know. So she's trying to really understand that and I you know that was probably an opportunity to is to show them you know, kind of like sit down with them and be like go over the basics, yeah over the basics and like this is how stocks work, this is how mutual funds work, how bonds work and and everything.
Sandy:And you know they could even Because we did open up their account so young they could have actually, you know, had that conversation To where be like, okay, well, what do you want to buy?
Terrance:Yeah, we could have had a conversation.
Sandy:I mean how you know, to the point them, the price rises and falls and moves with the market right, and that's very important.
Terrance:So two things. One, what you said was very important, it's important. You know you want to start talking to them about the basics of investing, but you also want to explain to them the risk and reward factor. Right, the market rises and falls and when you look at it, you typically don't want to look at it from the short-term perspective and let's, I mean, unless there's something that you really you're talking stocks you want to get in and in and buy low and and sell high, but they're not it. You know, when you talk about your kids from that perspective, that's not the game that you're playing, right, you're playing a long game.
Terrance:So, having the conversation with them about you know how the market market rises and falls and and that's and that's normal. Now, last thing you want them to do is oh, you know, we bought at this and here it is not a, I'm losing all this money, no, this. The second thing is you know, I think teaching them the basics of investing, particularly now, is so important, because when you talk about what used to be the American dream and we're gonna do a whole episode on what that means but real estate had always been a big part of that right, and at one point it was. It made a lot of sense to buy real estate and I'm not saying it, it never will again. But the value right now is not what it used to be.
Sandy:Yeah, trying to get in right now.
Terrance:Yeah. So I feel so having that avenue Because when you, when you talk about purchasing real estate, it's technical, it's an investment, it's a different type of investment, but it's an investment. Having that option and playing that long game, I think the potential, I feel the potential gains there outweighs what you would possibly able to get right now at real estate.
Sandy:Well, it's funny, because so we're just talking about the market and then we actually started this conversation with you telling me that we had to spend money, and the look on my face. I think having those conversations do with your kids because, yeah, real estate is still a good investment opportunity but, make sure that they recognize like well, when you're the landlord there's things that go in the way.
Terrance:You said something very important. There's one distinction there, right, from that perspective, you're talking about real estate as an asset, and that's what I'm talking about Real estate as an asset, as long as it's an asset and it's generating revenue, that's fine. On the opposite side of the fence, when it's not an asset and it's just debt, it's not generating any income, and I don't know why. I can't think of the word for it right now, but this is not a fight. Well, actually it's financial literacy. But anyway, then that's the area where it's not so attractive right now.
Terrance:If you can, I had this conversation with someone the other day I thought it was someone at work and we were talking about real estate from an asset perspective and it was like, well, you're gonna pay this and I'm like it doesn't make a difference what you're gonna pay from an asset perspective, is it gonna generate revenue for you? Right, yeah, as long as it's generating revenue, that's fine. Don't care what the cost is, because you're going to be making money. That's where you gotta get past it, and that's a conversation we can have with them, and before we get too sidetracked, I'm gonna stop there, cause it's funny to your point too, like the whole mortgage situation and budgeting.
Sandy:Don't always buy a house that the bank approves you for. You have to really look at what you can afford.
Terrance:Yeah, and also it's tough having those conversations. But when you talk about financial literacy you're talking about when I talk about it, I'm talking about the stages. Right, so you start young, but your kids are gonna be your kids and they're never too old for you to give advice to them. Whether or not they take it is something completely different, but again, you still have the opportunity to provide them with that tidbit of information Right.
Sandy:So that's what I mean, Like every stage of theirs is going to give you the opportunity to have a new financial literacy conversation with them. It starts young but it doesn't stop like. Shane and Lexi are 25 and 27 and they're gonna start getting into the point where they do wanna start buying their own home. So now it's having those conversations with them. It's moved on from okay, how much are you going to save and what are you saving for? Versus now. It's still pretty much the same, yeah it is.
Sandy:But now you have the component of okay, well, now you also have to borrow money, because, right, because there's no way that you can just cash out and afford a house and then you know with them working when they come out of college and everything, and even before then it's the importance of a 401k, because the early you start, even if it's a small amount, is going to be more compounding than if you start later with more, so having them understand that too was, I think, also very important.
Terrance:Yeah, and you know we talk about the range. This next thing you should consider you wanna start early, and it's more about instilling something in the kids so, when they get to the point where they're at a specific age, they can start building using the tools that you provide to them, and that is instilling in them a strong work ethic, because in order to actually make money, you're going to have to be able to put some work in, whether it's for someone, for yourself or whatever. And I think there's some ways to do that when they're young, right, I think, before they actually reach the age where they actually can work volunteering, internships and then ultimately a part-time job at some point where, again, they start early and they start building that work ethic early on. I think, from what I've seen, a lot of that has gone away, in particular places building that strong work ethic.
Sandy:Yeah, well, even though-.
Terrance:And I wanna say I'll put a timeframe on it. I've seen less of that since COVID. That's what I'll say. That's the statement that I should have made.
Sandy:Well, and even the volunteering aspect. I think it's very important that people recognize giving back regardless, that there's always somebody out there who has less than you.
Terrance:Yeah.
Sandy:I think that is so important because it does keep them, I guess, grounded when you're thinking about money. Listen, it's not just about your money saving for you. There's other people out there too.
Terrance:Yeah, and one caveat with that, and I shouldn't use the term caveat. There's one thing that I learned about that You're right, and we're involved with a number of different things, but instilling them that it's not about what someone else's story is. It's about you helping those who are less fortunate. Don't always think about what the story is. I've had to come to learn this because I remember at one point, if I saw someone and they were asking for money or they were looking for something, I don't know what this person's story is. They're probably gonna do this, they're probably gonna do that but it's not about that.
Sandy:Yeah.
Terrance:If I have it in me to give to someone, what does their story matter to me? Whatever they're gonna do with it, they're gonna do with it. I'm giving it out of the kindness of my heart. I'm giving it because I feel that someone is less fortunate and I'm in the position to give it. Just give it.
Sandy:Yeah, that's one of the reasons why I also started carrying around gift cards.
Terrance:That's not a bad idea, you know if you're concerned about that.
Sandy:You know what are they gonna go spend the cash on?
Terrance:That's not a bad idea. Well, if you give them a gift card, they gotta go to that store, Listen so we're gonna get back on track, but Sally's changing the game right now for me. I gotta get some gift cards.
Sandy:Right. So, yeah, I think you're right, I think, having them also just kind of be realistic, honestly too. So not just promoting the work ethic, but also keep them in reality. Yeah, it's important, like you know. Do you really wanna spend you know X amount of money on that new iPhone, whatever it is? You know what I mean? Because it's not gonna last forever.
Sandy:It ones it breaks, it breaks you know, and you just spent this chunk of money. So I feel like that one is also important because you know with the kids there they always want the newest, the nicest thing, and sometimes that's not realistic.
Terrance:Yeah, no, and that reality should be based on two things credit and debt.
Terrance:Listen, when you have the opportunity, you really wanna start to have a conversation with your kids about the importance of a good credit score.
Terrance:Yeah, at the same time, when you have that conversation about the credit score, you have to have a conversation about that word debt. Yeah, nothing is free. The more you put on that card. When you get to that spot where you get the card, you're going to have to pay it and if you don't pay it, it's going to affect your credit and that credit is going to follow you. So when you get to that point where there are things where you wanna do, you're gonna be hindered. If you haven't practiced balancing your credits and your debits or maintaining a good credit score and keeping your debt low, it's important that they understand that you're going to have to pay for that stuff. And I think all of that goes back to, early on, explaining the value of money and the dollar and all those things and putting those pieces in place, because it's all a puzzle and there's different pieces to it and you wanna make sure that you're covering those different pieces.
Sandy:Oh, definitely, I feel like you know, when I came out to the world, when I came out to the world.
Terrance:Is this something I should know Came out into the world? I?
Sandy:said, you know, as somewhat of an adult, I really hadn't been taught that in my credit card debt, you know, skyrocketed, you know, and I feel like that was one of the things that at least we got ahead of with the girls.
Terrance:I do remember those conversations when they started getting the stuff in the mail about a credit card.
Sandy:You ain't getting no credit card, yeah, right, so you know. And then to your point. And then also then to teaching them good behaviors with credit cards, right. And then comes, like the mortgage situation and sometimes the underlying costs of even a mortgage, like if you can't put the full down payment, like they gotta consider that, you know. And it's not just hey, I can afford this much money, it comes bills.
Terrance:Yeah, well.
Sandy:Utilities and things of that nature. I think it was actually good for the girls when they were in college and they were actually living off campus.
Terrance:Yeah, you said this earlier and this plays into that children model behavior. So you wanna have conversations with them about your financial responsibility. You want them to see your management skills when you start talking about budgeting and making sure that, from a financial perspective, you're a role model. Yes, because then when they see you do that, then they understand okay. Well, that's what I should strive to be doing. I remember when Lexi first came to us.
Sandy:I was gonna say, yeah, I'll let you have it. Lexi, I was thinking about it too. You could have it. You could have it, kid, after my own heart and this respect. When she was ready to move out on her own, she showed me her Excel spreadsheet.
Terrance:I'll tell you something. I was impressed by the fact that she came with an Excel spreadsheet and she had everything budgeted out. I gotta say, man, it was. I know there was nothing you could Wow.
Sandy:it was just like her mother.
Terrance:And on a flip side, Shayna was just like yeah, I'm moving out no spreadsheet, Right, I even asked Shayna like do you have it?
Sandy:Like she's, you know, I'm just like yeah, I got it under control.
Terrance:But, like you know, lexi had the Excel spreadsheet, just like her mom, remind me to do this because, again, here's the thing we need to have a conversation with Shayna, and I'm gonna tell you why Because Because she hasn't talked to me about her 401K.
Sandy:She hasn't talked to me about an Excel spreadsheet. Well, that and the other thing about it is part of the situation that we have her in.
Terrance:I've had this thought the other day. I wanna see a specific amount of that money going somewhere.
Sandy:Oh, and that's what I was also gonna say about being realistic. It's not just realistic with the cost and stuff, being realistic with yourself.
Announcer:Oh yeah.
Sandy:So, like both Lexi and Shayna would give me money to put away Cause they knew if they had it they would touch it.
Terrance:Do they still do that.
Sandy:No, okay, they're much better now. But you know, like early adulthood, well, they're still cutting early adults. But you know what I mean? Yeah, in college they would have me like just put money away for them that they couldn't touch or see. Yeah, but they know I had it for them so that this way they wouldn't, you know, fall culprits.
Terrance:Wouldn't burn a hole in their pockets. Yeah.
Sandy:That's what it is Exactly.
Terrance:So it's funny. This next consideration. It's funny because we had one of these. You wanna have a conversation with your kids about having an emergency fund, right, and the purpose for that is what it sounds like. You know you can't plan for emergencies, right? So when you start talking about budgeting, you wanna make sure that you're putting a little bit off to decide for that one thing that you don't know that's gonna happen, but it's gonna happen. So you're prepared. We're talking about we started it off when I said I have something to say and we're talking about the apartment house and we had a large emergency fund and it wasn't so much an emergency that we used it for early in the year, but it was something that we wanted to do for the kids.
Sandy:Yeah.
Terrance:And so we used that money to take care of a situation over there, and now we got an emergency and emergency fund and the emergency fund has been depleted.
Sandy:Has been depleted, so hence the look on my face was like man, this is bad timing.
Terrance:It's important to educate them on, you know, understanding the reality of there are gonna be some things that you can't plan for, but you should plan for those things that you can't plan for. Right it's that it didn't sound like it makes sense, but it makes sense. You wanna have put a little money away. Put a little money away for those emergencies that may come up that you did not plan for.
Sandy:Yeah, cause you never know when.
Terrance:Cause you never know when or how much, and that's the thing. Or how much? But and I'm not saying you gotta break the bank, no, you start putting a little bit off and as long as you continue to do that it's going to grow.
Sandy:Don't touch it. Don't look at it. Don't touch it, don't look at it.
Terrance:Pretend it's not fair Give it to your mother so she can put it away and you know you feel it's gonna burn a hole in your pocket. Exactly, put that money, put the have conversations, teach them about creating an emergency fund and putting money away for those incidents that you can't plan for.
Sandy:Right and kind of really thinking about the wants and the needs, cause you're right, you know. Oh, my emergency fund has gotten up to this much.
Announcer:Yeah.
Sandy:Maybe I should just go treat myself for vacation, cause you know my mental health is an emergency status right now. But but you know, you know sometimes, like I said, the realistic aspect of it, and is it a want versus a need? Kind of keep all of that into consideration when you're having some of these budgeting conversations.
Terrance:Yes, yes. And so, lastly, this is the last point, or the last consideration that I think that you want to keep in mind. You know we talked about the fact that this information is not something that you just start right. You know, when they're young, you know you want to encourage them to look and learn about the financial trends that are happening, because they change. And if they can learn to learn and by that making sure that, when I talk about learning, I always say every day is an opportunity to learn you don't just stop learning. You wanna be mindful and keep looking at the trends that are happening around you, and what that does is it allows you to adapt. And so, from a financial perspective, if you need to shift what it is you're doing, the only way you're gonna know you need to shift is if you're paying attention. So you wanna teach them to pay attention to those financial trends and learn what they can, and when they have the need to shift or adapt, then they're in a position to actually do so.
Sandy:Well, and that's also good to also consider while they're in high school. Obviously, you want your parents, not your parents you want your children to get into a career that they're gonna enjoy and love, because that's gonna be their career, not that they can't change it later but you know what I mean. So kind of like help guide them too into what makes sense, cause you know, a cobbler, these days you're really not gonna find too many career opportunities.
Terrance:I got some shoes that needs to work and that's a true story.
Sandy:You know, like, let me tell you, I'm grateful for the one that we have still near us, cause they sewed up my boots recently, but at the same time like what's the career opportunity for you if you're going into something like that?
Terrance:Yeah. So the one thing that I will say is and it's in regards to that is there's an upcoming episode where we touch on that a little bit. But that's why it's important to be a lifelong learner, because you may wanna do something today and tomorrow if that's how you earn your money financially and you're not able to do that, you have to pivot or you may change your mind, and that's the thing. It's never too late. My whole thing is it's never too late to change. I mean, it's too late when you're six feet under. That's what it's too late.
Sandy:So again, but no like that's what I mean, Like having those conversations help guide them. Like okay, well, okay, you wanna be a cobbler, but you know. Don't kill the cobbler dreams no don't kill the cobbler dream, but like what's something else that is similar, I just I don't know why she has such a problem with cobblers. Because it just makes me think of the one that we have still close to us and I'm thankful for it, but you don't see them out there anymore.
Announcer:You know what I mean.
Sandy:We're in a fortunate position, but at the same time, I don't know how many there actually are, cause somebody was very surprised when I was like, oh yeah, we have one over here.
Terrance:That was surprised.
Sandy:But anyhow.
Terrance:I was very surprised.
Sandy:It's having those conversations Okay, well, what is it that you like about it? What is it that we can find that's similar, that's using those similar skill sets, but maybe a little bit more in today's age? Yeah, you know.
Terrance:Okay.
Sandy:But no, I'm not trying to kill the cobbler dreams. They should have more cobblers out there, cause apparently we're the lucky ones that have one in our town.
Terrance:All right. I think, now that San Lee has completely destroyed anyone's want to be a cobbler, we're going to wrap this up. As a parent, you know I'm always thinking of what's to come and what challenges are going to actually be presented to. You know my kids and thinking that I always try to imagine the best way to prepare them for those things. One of the ways that you can begin to prepare your kids for the future is having conversations with them and teaching them about financial literacy. Keep this in mind, though I mentioned this earlier Learning is not a destination.
Terrance:That education process should be ongoing. Ultimately, they're going to get to the point where they're going to have to educate themselves about what they need to do in those situations. But while you have the time, start to take the time and teach your kids about financial literacy. It's going to do a couple of things. It's going to help them navigate the complexities of the economy with confidence and resiliency. Now, now that we've learned all about financial literacy, it's time for my reflection of the week. You ready for this, sandy?
Sandy:I don't hide my feelings from my face, apparently.
Terrance:No, but I'm not looking at your face right now. I'm looking at that bottle right there. I won't say what it is. Here's my reflection for this week. Small acts of kindness have the power to create ripples of positivity. Today, be intentional about spreading your kindness. I had a conversation yesterday with Greg, who I work with, about the power of positive thinking, and he came in and chewed a form. He had a problem with traffic and I told him. I said you're only looking at traffic from the negative perspective. And he looked at me. He's like what do you mean? I said you have so many opportunities while you're sitting in traffic. You just got to think positive. You can ponder all the thoughts that you have about what is it when you look up at the stars. Why is it that this operates this particular way? The point that I was making was if you think in the negative aspect of your situation, the rest of your day has the potential to be negative, but if you look at the positive side, you're gonna be positively in a better mood.
Sandy:Positively.
Terrance:Yes, and, with that being said, we would like to thank you for joining us on the Lunch With Sandy podcast. Be sure to follow us and leave feedback on your favorite podcasting nap. Until next time, stay well.
