What's up guys? Thank you for watching this YouTube channel. This is a phenomenal episode,
but before we get into the episode, do me a favor and smash that subscribe button right now so you
can get notifications of all the great stuff that we're up to. Justin, like I said, this is a great
episode. What do they have in store here? We have an incredible special guest today.
Matt's son joins us to talk about how he thinks about money. Saving, spending,
investing. It's incredible, such a great story. Loved having him on the show today.
It's a great show. For anybody out there that is a family person with kids, or has young kids in
their circles that want to teach about investing, this is the episode for you guys. Check it out.
What is happening YouTube? This is Matt Faircloth. Welcome to the Mentorship Monday show,
and here to help me carry the load is my man, my partner in crime, the Justin Fraser, come
on in. Let's get going with today's question. The question is about educating our children on
financial literacy, real estate investing, money. Your son is a few years older than mine. And so,
there he is. Zach himself. Zachary, how are you today?
Doing good. Doing good. My question is for
both of you guys, because I want to know about how you guys talk about money in your house.
Wow. Do you get an allowance?
Yeah. Okay. And do you
have to do something for that allowance? Do you have to work around the house?
Yes. Making it all up,
right? He earns money, but he does not get money for doing nothing. You have your,
what do we call them? Like what's it called when you set the table? It's your obli...
...Gation. It's an obligation.
So he has his obligations on stuff that he has to do no matter what, that he doesn't
get paid for it. Because we're not training ourselves to have jobs on just doing something,
doing a thing and getting money for it. But Zacky does earn money. So what are some of the ways that
you've earned money from mommy and daddy? I have to clean the whole basement for $10.
That's a good deal. Did you and daddy negotiate that?
Yes. Yeah, you wanted 20, and I offered you a dollar,
and we met at 10. Fair enough.
What are some other ways that you've made money in the past? Have you sold stuff before?
Yes. I had a yard sale. I sold some of my stuff. I made like a hundred during that.
Wow. And we are working on
some projects with Zachary where he can earn money through learning. He watched a video series
on being kind to other people, and in exchange for watching the whole thing and then sitting
mommy and daddy down and telling us about what he had learned, he got five bucks.
That's great. Not five bucks, dad.
What did you get? I got three.
You got three? We're going to increase your rate here. [crosstalk 00:02:51]
Do you remember anything else? Because there's a lot of people watching. They want to do stuff with
their kids so they can teach your kids the ways your kids can earn money, that are either your
age... How old are you? Seven.
Seven. So Zack, you're seven. You might remember. It's been a while, but my son, James,
he is almost four. So is there anything that you think that he could do as a four year old boy
around the house that he could earn some money? Probably set the table. That's an obligation for
me, but since he's younger, set the table, That's a really good one.
One. And maybe put his clothes on. Oh, okay. That's a good one too.
Put his clothes on by himself? Yeah. With no one helping.
Those are good ideas. Those are really good ideas. Thank you.
Or make his bed. Even better. I love that
one. So what do you think is a fair rate for me to pay James if he is going to set the table,
and get dressed, and make his bed? So he'll probably get 10 for making his bed.
10 dollars for making his bed? No, three, three, three.
I was just thinking like a quarter. What are you talking about?
Three dollars, maybe a week. Maybe if we do it for a week.
For a whole week. Yeah, three for a week.
I think that's a fair price. Good idea.
I can do that. We could do that. Can we tell Mr. Justin real quick about
what we do with money? That was going to be my next question. Yeah.
Do we just buy lots of toys? No.
No, what do we do? This is what you do with money.
Spend, give, save, and invest. Spend, give, save, and invest. I'm
learning a lot from you. So let's talk about that. So tell me about each of those four things.
Spend is like get yourself one toy. Save is like, put some money in your bank account like save up
to buy a house or something that you need. You don't need a toy. And you give money.
Why? Because some people don't have money.
Yeah. And then what's the last thing you do? Invest. Remember you said invest,
right? So what does that mean? Invest means... So there was a seed story. Like
if you watch the seed story... [inaudible 00:05:29] spending
the seeds is like- So you plant a seed in the ground.
Then it grows to more seeds. Well, let's start from,
let's say I got a handful of seeds, right? So me spending them is like, what with the seeds?
It's just getting yourself stuff with the seeds.
No, it's with me eating them. I can eat the seeds. Right? Me saving the seeds is like what?
Putting them in the fridge. Putting them in the fridge.
Me giving the seeds is like, what? Giving them so [crosstalk 00:06:07].
Can eat them, or... Do whatever they want with them.
Right. They could eat them, they could save them, or they could plant them too.
And planting and investing is like taking those seeds and planting them in the ground to where
they grow into lots, more plants and produce a lot more seeds, so that I can then go and eat them,
save them, or give more of them away. And your seeds are going to make
more seeds when you plant them. Mm-hmm (affirmative). So that's invest.
That's awesome. So like, if you have some money. What would
be an investment you could make? Do you know? I could probably get... I don't know.
You could buy a house. Yes. You could buy stock.
There you go. The biggest thing about an investment, is that it does what?
Yeah. If you get a job, you'll get more money. Then more money, then more money. If you get a
job. But money is just a tool. You don't get obsessed with money. It just gets you things.
Don't get obsessed with money. Right. It's just a vehicle.
Don't do this. Hey I got money. Don't do that. You know firsthand not to do that, right?
So have you guys spoken about ways that Zachary can do some investing at seven years old?
We have talked about that. We have not done it yet. We haven't used it, but I've set up a
Robinhood account for stock trading with him, because he knows that he has a bank account and
like birthday money, and first christening money from his grandmas and stuff like that.
We don't let him have those checks. We just deposit it in his account.
So he has money in his account, and eventually, Zachary and I want to go
into Robinhood because I downloaded the app and just buy some stocks with Robinhood.
Now Zachary knows that he can buy companies. And the conversation we're going to have
at some point, we're going to start talking about companies that make things that we like. What are
some companies that make things that we like? Then we want to buy some of those companies-
Amazon. Every day, right?
Lego company. Good choice.
What kind of car does daddy drive? Car company.
No, what kind of car does daddy drive? A green Jeep.
[crosstalk 00:08:37] So we could buy Jeep, right? We could also buy food companies. What you do is
you buy companies that you know make good stuff that we can use. Here's another good one. What's
this thing called? Batteries.
You think we'll always need batteries? That's called Duracell. That's a company we can buy. We
can buy a stock in that company, Duracell. The company that makes a lot of the
videos that we like. Disney?