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Hack Your Wealth

As a lawyer / engineer / MBA, how can you achieve FIRE (financial independence, retire early) rapidly to quit the rat race, pursue your passions, and live life on your own terms? Andrew Chen – founder of the Hack Your Wealth Blog and lawyer, financial expert (CFA graduate), and tech industry veteran – shows you strategies and tactics to (1) earn, (2) save, (3) invest, and (4) protect as a high earner so that you can build massive wealth and create a portfolio that’s a FIRE machine. Through solo lessons, expert interviews, and side hustle profiles, you’ll learn about tax strategies, retirement account optimization, asset allocation & rebalancing, passive income (real estate investing, side hustling, online business, digital nomading), family finances (e.g., strategizing college education costs), travel hacking, estate planning, and career transitions. Andrew podcasts about the big picture concepts, then adds step-by-step implementation guides downloadable from the Hack Your Wealth website to help you FIRE strategically, methodically, and rapidly.

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Teaching your kids about money and financial independence

September 21, 2021 • Andrew Chen • Episode 80

#80: Teaching kids about money isn’t easy, but it’s crucial if you want to boot them off your payroll after they graduate from school.

But while financial literacy is good, helping your kids build the mindset and momentum to achieve financial independence is even better.

It requires that they internalize (and value) aggressive saving, investing, and compounding…not just living within their means.

That’s why I was so excited to chat this week with Doug Nordman and Carol Pittner, father and daughter co-authors of a new book on how to teach next-generation financial independence.

We discuss:

Why it’s important to let kids make their own financial choices (and mistakes) when the stakes are low
Why letting your kids buy “One Special Thing” per shopping trip is an effective teaching strategy
Why you might want to pay your kids for jobs, but not chores…and the difference between the two
Why it might not be a good idea to pay your kids for getting good grades, and what you can do instead
Why “profit sharing” is an especially powerful strategy to teach kids about savings and frugality
How to create a “kid 401k” to teach your kid lasting lessons about compounding and long-term investing
How to incentivize your kid to contribute to a Roth IRA early on
How to handle the question of “how rich are we?”

Check it out here:

https://hackyourwealth.com/teaching-kids-about-money-financial-independence

What strategies do you use to teach your kids about saving, investing, and compounding? How are you helping them learn about financial independence, if at all? Let me know by leaving a comment.

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Intro/Outro: Old Bossa by Twin Musicom.