Don’t Let Wealth Skip a Generation – Episode 410

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[00:02] Hello, partners, and welcome to the podcast. Today, we’re going to be talking about not letting wealth skip a generation. And I’m going to lead with a quote, and then we want to hear from you, Kim, but the quote is, the Chinese proverb rags to rags in three generations says that family wealth does not last for three generations. The first generation makes the money, the second generation spends it, and the third sees none of the wealth. Have you seen that as well, Kim? Yes, and I think the actual Chinese version of it is rice patties to rice patties. Ooh, I haven’t heard of that. Well, we know rags to rags is in the U.S. for sure, and it may also be in Chinese, but I believe that somewhere I have a blog post that some research was

[00:52] done on this subject, and it’s rice patties to rice patties is another way that they say it. It’s the same message. Ooh, that’s interesting. So first, let’s zoom out and understand why does this happen? And then we can go through the mechanics and then hopefully at the end of our conversation, we’ve created a solution. Awesome. So why does this happen? Because financial education is not prevalent in the high school and college arena. If there is any financial education taught, it is how to trade stocks, which is interesting, but not really helpful. And us as a society, us parents, I include myself, don’t always do a good enough job because we didn’t have the training ourselves of training the next generation. And so you have an entire two sets, because I do

[01:52] think that this was done in the early 1900s in United States of America, but you since then have two sets of generations that are two generations, I should say, that have come and gone without good financial education, without good training. And I saw a quote the other day, how can I manage a million dollars if I can’t manage a thousand dollars? That’s a good quote. That’s how most people are these days. They don’t know how. Yeah, that’s so true. Now, you mentioned it’s, you know, in the school system, you know, they don’t teach it. And if they do, that’s maybe stocks. And, you know, families, would you say from experience of clients that you’ve spoken with, would you say the majority of clients have at least taught some of it? Or is it that they’re

[02:44] overwhelmed, or they just don’t know where to start, so they abdicate all the responsibility? They maybe unknowingly abdicate all the responsibility. And I think problem number one is they don’t know what to teach. They don’t know how to teach it. Then you add all the emotional elements of money. And you tie that in with the typical parent to now adult child emotions. And it’s the literally the most difficult thing possible. And yet, I’m going to propose it’s the most important thing possible. I was talking to somebody about a year ago, they had like a 30 year old daughter that they were still paying rent for. So not only are they not they in general, not teaching the adult children anything about money, they are

[03:38] disabling or enabling is probably the word, but it’s disabling. They’re enabling their children by supporting that kind of behavior financially and in other ways, and then not teaching on top of it. I mean, it’s just a really sorry state that us Americans are Yeah, it is. Now, you know, here we are on this podcast. And, you know, one, I think we’ve seen from the reviews and from the user emails, that there are families that listen to this show as they’re driving in the car, maybe it’s on a smart device as they’re cooking dinner. What are some of the things that we hear on on this podcast can help families, you know, give them that stepping stone so that they begin to teach this? Well, I love this question. And it’s interesting, because

[04:26] just last week, my husband Todd Langford of truth concepts and I shared our normal three day truth training. We had about 17 people in the room and about 10 online. And seven of the 17 were not from our industry. They were there for financial education. And so it is a goal of mine that the financial education that we teach at truth training will become more available to our clients to use with their children. So what can we do right now until we do a better job of creating curriculum for our families? Todd and I, with some additional writing help have pieces and parts of that education out in the marketplace already in the form of YouTube videos in the form of books on Amazon, which are also available as audio books, and in the form of

[05:33] numerous blog posts, both at partners for prosperity calm as well as at truth concepts calm, what we don’t have, though, is somewhat available inside our newest book called perpetual wealth, when depending on you, and your listening schedule, it may already be out on Amazon. So to back up, we don’t have a great like here’s what you do to train your children step 123. However, inside perpetual wealth, we do have some of that material, but it’s a little bit more designed towards the adult children that have the capacity for the higher level of earnings. Spencer, I think you and I have done some other podcasts on the children that are more in middle school and high school. What was interesting about this last truth training

[06:22] is that we had four that four people that were under the age of 21. We had a 21, a 20, another 20, and then a 15 year old. And so it is absolutely my goal. And this is what we’re trying to do inside the prosperity economics movement to recreate that three day truth training, which is designed to be for advisors into some type of curriculum that could be for an eighth grade reader and above this is an old, old Robert Kiyosaki line. He says, I’m not a best writing author. I’m a best selling author. And the reason that Robert and so his quote continues, the reason that I am a best selling author is because I write for an eighth grade reading level. So as an example, like our busting the interest rate lies book, I wrote that with a high

[07:23] schooler in mind, yet it needs a beginning and an end. It’s a really good middle, but it needs a beginning and an end. And so we will keep doing the work to create or recreate the material in a way that it is step one, two, three, that you could start at about eighth grade and have a full curriculum to do financial education for your family. And it’s going to start with that perpetual wealth book. You know, perpetual wealth is a thorough book that is I mean, it’s a large, you know, compilation of years and years of teaching, then and I can’t recall the quote, you may know this offhand, but the quote is, if I had more time, I would write you a shorter letter. And so there’s something in that mastery level, where you know,

[08:22] you’ve taken all of these different books you’ve written blog posts, these podcasts, and you’ve now condensed it down into this book. Yet I think that there are a lot of people that are still hungry for saying, Oh, man, like, how can we just hand something more to the children? And maybe the answer is, you can’t really hand it, like, you have to put in that work in that time. I think that’s really accurate, because money is something that is not natural to us, like the math of money is not grade school math, it has something called time attached to it. And time value of money is one of the hardest things in the world for people to get their arms around financial advisors included. And so I think

[09:10] because there’s time value of money as an economic concept, it takes time to learn said time value of money. And we’re just going to keep doing the work because this is what it takes. I agree with you 100%. I don’t think you can sit down and have one conversation with your children, and expect that to land. But you can start with some basic things. And again, Spencer, maybe we can reference some of the prior podcasts that we’ve done on it. But I think the most important thing in the whole wide world is the ability to save, to understand what savings as a verb is, to understand what savings as a noun is, to have the delayed gratification that is so difficult as a human being. And we’ve actually

[09:53] got somebody right now that has reached out to us that has helped people in the physical realm. So like with health and working out and eating well, which I think we could all identify as the second hardest thing to do to get good results in, right, as a human being is our health. And so I’m, I’m hopeful that maybe this is the one that can help us take some of our material and create that curriculum. So the perpetual wealth will be a really good start. It’s our first book in hardback. So I’m super excited about that. We will have an audio version thanks to you and your capacities in the AI world, artificial intelligence. And then furthermore, we are creating a video series that will go with it and a workbook. And

[10:43] so your question is helping me make sure that that workbook is something that will have step one, two, three for financial education for your family starting at the eighth grade level. And I know we’ve got some things that you can do prior to that. And I’m so looking forward to making that available and helping not only our clients, but all of our listeners and beyond with this subject, because it is something that must get raised to the top of the list of things that you handle as a parent. And if you’re already a parent, that we acknowledge that we as parents typically don’t have good financial education either. So let’s go through this education together, make it a family event and learn alongside your adult children

[11:38] and possibly your grandchildren. You know, those, you know, very well said, as we are wrapping this episode, there’s something profound about what you said. And I kind of want to just want to take a moment and unpack it, which is you focused on the savings, but you really focused on principles that are going to last forever. Whereas a lot of people that are new in this world, or maybe people, and this goes from both sides, be it a new instructor, or it could be a new student, often is focusing on the shortcut, or they’re focusing on the things that maybe the secrets or the hacks. But the people that have actually cracked the code are the ones that realize that it’s long term principles that make a difference in an impact.

[12:32] Very well said. And I love that eons ago, we created seven principles of prosperity. And so our seminal book on that subject is called Busting the Financial Planning Lies. And it’s such a part of me that I forget to talk about it and forget to highlight that those principles are so valuable and so timeless and so workable. And I, you know, I wrote them down on a piece of paper, but I didn’t create them. They exist since biblical times. So thank you so much for bringing that up. I honor those principles and I love that you identified them, even though I forgot to talk about them. Yeah, no problem. So for you listeners, if you’re wanting to understand those principles more, just go to the website

[13:19] that partnersforprosperity.com and then for your individual families, if, you know, maybe there’s certain principles that we’ve talked about on the podcast or different pieces that you’re trying to work through in figuring out how to make sure that wealth goes to the next generation and further and further. Send an email to hello at partnersforprosperity.com. And those questions could be answered on the podcast or if it’s something private, just send it in to hello at partnersforprosperity.com and then Kim and someone on the team can help you out. Does that sound like a plan? It sounds like an awesome strategy. There, yes, correct. I love how you, yes, there we go. The language with that. Listeners, you will understand

[14:08] this as well. Kim picks up on everything and that attention to the correct detail makes all the difference. Thank you, Kim. Thank you for listening to the Prosperity Podcast. To take control of your money and have it work for you, visit us at partnersforprosperity.com. If you liked this episode, make sure you subscribe and leave a review.