Manage episode 271702241 series 2514838
Today we are talking about teaching your children financial independence, teaching them how to manage their money, and teaching them about what money means.
Our guests today are Doug Nordman and Carol Pittner. A father-daughter team who wrote a book on this topic. Doug Nordman served for 20 years of active duty in the U.S. Navy's submarine force and retired in 2002 at the age of 41. He and his spouse, a retired Navy Reservist, reached financial independence in 1999 on a high savings rate. Carol Pittner joined the Navy on an ROTC scholarship. She and her active-duty spouse are rapidly approaching financial independence on a high savings rate, and they've just started their own family!
[00:01 – 04:52] Opening Segment
- I talk briefly about great values that await you in this episode
- Let's welcome our guests, Doug Nordman and Carol Pittner
- Doug and Carol talk about their background
[04:53 – 16:22] Raising a Financially-Savvy Family
- We talk about their book, Raising Your Money-Savvy Family For Next Generation Financial Independence
- They discussed their inspiration for the book.
- Start teaching your kids how to manage money. The earlier you introduce the concept, the better the results.
- Teach them about taxes when the moment that they need to know about it emerges.
[16:23 – 28:53] Raising the Younger Generation
- Carol talks about the things she would do differently in raising a child compared to her generation
- The younger generation is getting better at writing books about money
- Giving your kids the responsibility of being grown-ups is one way to motivate them to learn about money
- Carol reflects on all the lessons she picked up since she was younger
[28:54 – 37:26] Educational System
- Set expectations to your kids that they will be paying for their college (if not all, some of it) to raise awareness and learn how they will manage that.
- Doug and Carol share some tips and strategies to teach your children
[37:27 – 52:52] Closing Segment
- Quick word from our sponsors
- What is the best investment you've ever made other than in your education?
- Doug: "Marrying my spouse."
- Carol: "Having that good investment in my spouse and having that good investment in our marriage."
- What is the worst investment you ever made?
- Carol: "Trying to figure out what kind of insurance I need."
- Doug: "My worst investment is that I'm an angel investor."
- What is the most important lesson that you've learned in business and investing?
- Doug: "Business is all about cash flow." The most important lesson to financial independence is a high savings rate
- Carol: "Just get started." Stop sitting there and thinking about the what-ifs and to actually go and make the what-ifs.
- Connect with Doug and Carol. See the links below.
"The earlier you start talking about this [managing money]. The more prime do they are to catch on and start doing something with it." – Doug Nordman
"The best way to make money is to have a long-time horizon." – Carol Pittner
"It's a two-way street when you're talking about money with your kids. It's not only what the parents want to teach the kids, but it's also about the reception of the kids themselves." – Carol Pittner
- The First National Bank of Dad by David Owen
- The Simple Path to Wealth by J.L. Collins
- The Millionaire Next Door by Thomas J. Stanley
- The Motley Fool Guide to Investing for Beginners by The Motley Fool
- Your Money or Your Life by Vicki Robin
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