How To Make Your Kids Rich This Holiday Season

Summary

Podcast Summary: The Candy Valentino Show Episode: How To Make Your Kids Rich This Holiday Season
Release Date: November 21, 2024
Host: Candy Valentino
Network: Cumulus Podcast Network

---

Introduction

In this insightful episode of The Candy Valentino Show, host Candy Valentino delves into strategies parents can employ to foster financial wealth in their children starting from a young age. Tailored for founders, investors, and entrepreneurs, the discussion centers around practical financial habits, investment strategies, and budgeting techniques to ensure children are financially savvy and set up for long-term success.

---

Key Topics and Discussions

1. Financial Gifts Beyond Material Presents

Candy emphasizes the importance of gifting financial wisdom over physical items. She suggests teaching children to be investors rather than mere consumers.

• Quote:
  "All of the wealth habits that make us rich in our lifetime are not things that we are actually taught. Kids will catch things in your environment."
  (01:30)

Strategies Discussed:

• Investment Over Consumption: Encourage children to invest a portion of their allowance or gifts instead of spending it all on toys or gadgets.
• Initiating Conversations: Start financial discussions early to instill the right mindset.

2. Custodial Roth IRA

Candy introduces the concept of a Custodial Roth IRA as a powerful tool for long-term wealth building for children.

• Quote:
  "When they turn 18, they will have over $2 million when they go to retire."
  (02:17)

Key Points:

• Early Investment: Parents can set up a Custodial Roth IRA for their children even before they turn 18.
• Start Early: Investing from birth can significantly compound over time, leading to substantial retirement funds.
• Alternative Options: For those unable to set up an IRA, high-yield savings accounts or apps like Acorns and Greenlight are recommended to teach investing basics.

3. The 50-25-25 Rule

Candy outlines a practical budgeting method to teach children money management.

• Quote:
  "50% they can spend, 25% they invest, and 25% they give away."
  (03:25)

Breakdown:

• 50% Spend: Allow children to use half of their money on personal desires, fostering autonomy.
• 25% Invest: Encourage investing a quarter into stocks or other investment vehicles, promoting future growth.
• 25% Donate: Instill a sense of gratitude and social responsibility by allocating a portion for charity or contributions.

4. Legacy of Wealth Through Financial Education

Candy discusses building generational wealth through continuous financial education and disciplined habits.

• Quote:
  "The biggest gift you can give your kids is for them to understand finances so that they can make good decisions."
  (06:39)

Essentials:

• Financial Literacy: Teaching kids the basics of personal finance, including earning, saving, and investing.
• Income Management: Emphasizing the importance of increasing income while controlling and reducing unnecessary expenses.
• Investment in Assets: Encouraging investments in cash-flowing assets to move away from trading time for money.

5. Budgeting During the Holiday Season

As the holiday season often leads to overspending, Candy provides actionable tips to maintain financial discipline.

• Quote:
  "Get a budget, get really clear and identify what you're going to spend."
  (08:10)

Tips Provided:

• Clear Budgeting: Establish and adhere to a strict budget to avoid overspending.
• Prioritize Gifts: Consider collaborating with family members to pool resources for significant gifts rather than individual purchases.
• Permission to Decline: Grant parents and guardians the authority to decline certain gift exchanges to alleviate financial pressure.

6. Building and Maintaining Wealth Habits

Candy underscores the importance of consistent financial habits in achieving and maintaining wealth.

• Quote:
  "Wealth is a habit. So once we have more money, we know that whatever we did with a little bit of money are the same habits we are going to develop when we have a lot of money."
  (06:39)

Core Principles:

• Consistency: Regularly practicing good financial habits leads to long-term wealth accumulation.
• Early Start: The sooner these habits are ingrained, the more significant their impact over time.

---

Additional Resources and Recommendations

Books and Publications

Candy recommends her book, The 9% Edge: Life Changing Secrets to Create More Revenue for Your Business and More Freedom for Yourself, for those interested in deeper financial strategies. She also mentions Wealth Habits as a foundational text for individuals without a business.

Podcast Availability

For free financial advice and weekly insights, listeners are encouraged to subscribe to The Candy Valentino Show available on all major podcast platforms and YouTube.

---

Conclusion

In this episode, Candy Valentino provides a comprehensive guide for parents aiming to secure their children's financial future. By focusing on investment education, practical budgeting rules like the 50-25-25 rule, and fostering consistent wealth-building habits, Candy equips listeners with the tools necessary to cultivate a legacy of wealth and financial freedom for the next generation.

Final Quote:
"The biggest gift you can give your kids is for them to understand finances so that they can make good decisions."
(06:39)

Listeners are encouraged to implement these strategies during the holiday season to not only enjoy the festivities but also set their children on a path to lasting financial success.

---

Stay Connected:
Follow Candy Valentino on all social media platforms @candyvalentino and subscribe to her YouTube channel for more episodes and financial insights.

Transcript

[Progressive Insurance Ad]

This episode is brought to you by Progressive Insurance. Fiscally responsible financial geniuses, monetary magicians. These are the things people say about drivers who switch their car insurance to Progressive and save hundreds. Visit progressive.com to see if you could save Progressive Casualty Insurance Company and affiliates. Potential savings will vary. Not available in all states or situations.

[Host]

Welcome to the Candy Valentino show, the podcast for founders, investors and entrepreneurs where we have honest conversations about what it takes to grow your business, build more wealth, and create financial freedom.

[Co-Host]

So this Christmas, you may be wondering how you can give your kids a little something more than a gift to unwrap.

[Candy Valentino]

Now we're talking about how to make your kids rich or at least add a little bit more money to their pockets, Right? So here to share her top tips with us this morning, business growth expert and Author of the 9% Edge, Candy Valentino. Candy, good morning to you. Thank you for being here.

Good morning.

[Co-Host]

Thanks for having me.

[Candy Valentino]

Sure thing.

[Co-Host]

So what are some financial gifts we can give our kids or maybe grandkids this Christmas?

[Candy Valentino]

Great. So first off, it's really important to understand that all of the wealth habits that make us rich in our lifetime are not things that we are actually taught. And kids will catch things in your environment. So making sure that we teach our kids how to be investors and not consumers, making sure that they understand that they don't necessarily want that latest toy, it might be better to invest in the stock. And we can talk about some examples of that. But the very first thing to do is making sure that you are having these great conversations with your kids because they are picking up what you're talking about. And we can get into the 50, 25, 25, or whatever other pieces of information that you want. But it first starts with the conversation.

Okay, so let's dive into this one a little bit more and we'll get to the 50, 25, 25 rule here in just a second, Candy. But talk to us. There's something called custodial Roth IRA or IRA ira. What is that?

Of course, the custodial Roth IRA is something that you can set up for your kids even though they're not 18. So a traditional Roth IRA you need to be 18 to contribute into, but parents can set up a custodial Roth ira, meaning that you can start investing for your kids the day that they're born. You can start putting in money. If you have a business even you can put your kids on payroll, you can take that income out and you can start investing it. And we have found over time that if you start this, even if you don't invest another dollar into this account, when they turn 18, they will have over $2 million. And just basic rates of retirement, they will have over $2 million when they go to retire. So that's a tactic that parents can do now, especially if you're a business owner, that you can start maxing that out and open up a custodial Roth ira. And if that doesn't work for you, you can still start with a high yield savings account and start stashing that cash in there and then of course moving it over and setting it up and forgetting it. There's great apps like Acorns and other different things that you can set up for your kids. Greenlight in order to help them start investing and developing that discipline at a young age.

[Co-Host]

Oh yeah, okay, so what is the 50, 2525 rule?

[Candy Valentino]

This is something that everyone can implement right away and it teaches kids how to live with money when they're adults. Because as much as we would love to keep 100% of every dollar that we earn, nobody gets to do that. So the 50, 25, 25 basically says if your kids get $100 for Christmas or your birthday, that they can only spend 50% of that, that 25% of it they need to invest. So if they really like, if your daughter loves frappuccinos at Starbucks, you know, maybe she gets to spend 50% of that how she chooses, but 25% she's going to invest in whatever that she chooses. It may be McDonald's, it may be Starbucks, whatever they're into. And then 25% of that, you're going to give them the gift of understanding, contribution because there is a huge tie with wealth and contribution and making sure that they have gratitude for what they have, that they are donating to a charity that they care about or maybe their church, and making sure that they understand the gift of contribution and how that will set them up for success in their adult life as well. So 50% they can spend, 25% they invest and 25% they give away.

[Co-Host]

I like that.

[Range Rover Ad]

What makes a leader? It's a tough question, but one thing's for sure, a true leader leads by example. And a true leader takes risks too. They plunge into life with determination. For those who lead by example and who approach life with a palpable passion, there's the Range Rover Sport. Each Range Rover Sport model offers a dynamic, sophisticated take on sporting luxury. The Range Rover Sport offers focused on road performance and world renowned off road capability with industry leading features like adaptive off road cruise control that monitors ground condition and acclimates to the present terrain. Agility, control and composure are achieved with dynamic air suspension and adaptive dynamics. Reduces unwanted body movements to deliver smooth and composed handling. True sophistication and excellent maneuverability, all in a seriously stylish package. Sophisticated refinement meets visceral power in the Range Rover Sport a new dimension of sporting luxury Build your Range Rover sport@land roverusa.com.

[Progressive Insurance Ad]

This episode is brought to you by Progressive Insurance Fiscally responsible financial geniuses, Monetary Magicians these are the things people say about drivers who switch their car insurance to Progressive and save hundreds. Visit progressive.com to see if you could save Progressive Casualty Insurance Company and affiliates. Potential savings will vary. Not available in all states or situations.

[Host]

Want to shop Walmart Black Friday Deals First? Walmart plus members get early access to our hottest deals. Join now and get 50% off a one year annual membership. Shop Black Friday deals first with Walmart plus see [e-mail] Bend Invest Giveaway okay.

[Candy Valentino]

So those are the three areas there and I love that because I think when you start at a young age, like you said, those things carry when you make sure that you're instilling that in them. So when we talk about a legacy of wealth though, look money. I feel like everywhere right now is tight and everybody's worried about it. So how can people candy leave a legacy of wealth for their children?

Well, it really goes into financial education, right? Because we can only we can make more money, right? We Can Personal Finance 101. We increase our income, we reduce our expenses and we bridge the gap in order to start to invest more. Because until we start to invest in cash flowing assets, we will always be stuck trading time for money. That's how the generational wealth The Forbes rich purchase 400 have really set themselves up in their family up. So if you're not in a position where you have a high net worth in order to leave your kids a lot of assets, well then the best gift that you can give them is them understanding hard work. That they understand the value of a dollar, that they understand contribution. They understand how to invest into their future. Because if you can't invest 15% of what you're earning right now, you're actually robbing from your future and you're overspending. It's the number one litmus test that we can tell if somebody is overspending. So the biggest gift you can give your kids is for them to understand finances so that they can make good decisions so they don't get into credit card debt, so they don't buy brand new cars that they can't afford. That is what's going to help them set them up for success. So because wealth is a habit. So once we have more money, we know that whatever we did with a little bit of money are the same habits we are going to develop when we have a lot of money, it's just going to be amplified. Which is why you want to invest now and donate now as well.

[Co-Host]

Oh, that's great. And I feel like we're into that season right now, heading into the holidays where we all kind of overspend, we panic. Buy any tips to help everyone in the family out?

[Candy Valentino]

Yeah. So, I mean, one of the things that I have found that has helped a lot of families is making sure that you get really clear with your budget. Sounds super boring, but the boring stuff is actually what works in personal finance. So get a budget, get really clear and identify what you're going to spend. Also, because a lot of people are really struggling right now. It's very real. Cost of goods are up all over and people don't have enough money to just pay their normal bills. They're depleting any savings that they had just to put food on the table. So make sure that you know that you can have permission. I'm going to grant everyone here permission. Every female that's watching that has a little bit of guilt about this, or even dads that have some dad guilt. You do not need to participate in every gift exchange. Every single thing that you do, you can say no. Because the thing about finance is we have to be willing to say a no to a few things now so that we can get the ability to say yes to a lot of things later. So you may not be able to say no to everything. But another thing to think about is can you pull your money together? Can you work with maybe the grandparents or the aunts and the uncles and actually go in on one gift together as opposed to everyone buying gifts? Something we do in my family, the aunts and uncles don't buy the nieces and nephews gifts because their parents do and the grandparents do. And all it is is just exchanging all of these gifts. So we just made a decision. No one's going to do that. The parents and the grandparents do. It takes off a lot of pressure, makes the holidays a little more fun and you don't have to blow your budget in the process.

[Co-Host]

Yeah, that is great too. Great, great ideas.

[Candy Valentino]

I know. I have learned so much in this. I hope everyone else has too because I always say I'm going to get better about my finances each and every year and I feel like a lot of us do and we just keep putting that off. Candy, before we let you go, I feel like we can learn a lot more from reading your book to 9% edge. Tell us a little bit about it, some of the financial advice you give us and where we can find it.

Yeah. So if you don't have a business, wealth habits is my first book. If you do have a business, small business, or you want to start one, the 9% edge is the life changing secrets of how to create more revenue and how to create more freedom. So anywhere books are sold. And of course I also have a podcast, the Candy Valentino show. If you are in a financial position that you can't do some of these things or you can't even purchase a book right now, download the podcast. I give free advice every single week, Mondays and Thursdays, that you can just consume on topics just like this. How to make more money in your business, in your life, and really how to create that rich life.

[Co-Host]

This has been a great conversation. Katie, thanks so much for sharing this with us.

[Candy Valentino]

Oh, thanks for having me.

Yes, we appreciate it. Thank you.

[Range Rover Ad]

Hey guys, thanks for tuning in to this episode. And if there was something that you loved or you had a specific takeaway, share it and tag me at Candy Valentino. And if you haven't already, grab a copy of my latest book, the 9% Edge Life Changing Secrets to create more revenue for your business and more freedom for yourself. You can pick it up anywhere books are sold, Amazon, Barnes and Noble or your local independent store. And once you do, head over to 9% edge.com and claim $1,500 in pre order bonuses, including a chance to join me on this very show. Thanks so much for tuning in and spending this time with me today, guys.

[Candy Valentino]

We'll see you next time.

[Host]

Former Navy seal Sean Ryan shares real stories from real people from all walks of life on the Sean Ryan show. Former U. S. Navy admiral Tim Gallaudet. How did you get involved in this whole UFO thing?

[Guest]

One day I get this email on the Navy secret network. If any of you know what these are, tell me ASAP. F18 pilots captured video of this UAP Zorchin over the water. Just a little round sphere. And so I knew right there that was something not ours.

[Host]

The Sean ryan Show on YouTube or wherever you listen.