How to Raise Rich Kids: Money Lessons Every Parent Should Know

What does it actually mean to raise a "rich" kid and is it even about the money? This week on Get Rich, Molly sits down in-studio for the very first time with Sarah Megginson, author of How to Raise Rich Kids: Build Lasting Wealth for Your Children, for one of those conversations you'll want to share with every mum in your life.

Sarah is a parent of three who has spent years thinking about how to give kids a healthy, confident relationship with money and the result is a book that's as much for parents as it is for their children. Because here's the thing: the money messages we heard growing up? They're still running the show for most of us. And the way we talk (or don't talk) about money around our kids is shaping their financial future right now.

Whether you're a mum, a dad, an aunty, a godparent, or someone who's just trying to unpack their own money story, this one's for you.

In this episode, you'll learn:

• Why "we can't afford it" can do more harm than you realise and what to say instead
• How to involve your kids in real money decisions at every age (without the stress)
• The government co-contribution super hack that could turn $20 a week into nearly $300K for your teenager
• Why pocket money works better with a points system than straight cash
• How to talk to your kids about what you earn and why Sarah is completely open with her three children about the family finances
• What the three sections of How to Raise Rich Kids cover and how to use it based on your child's age
• Why buy now, pay later is changing kids' relationship with money and not in a good way
• The difference between raising wealthy kids and raising kids who are free to choose their own life

Perfect for: Australian mums with kids of any age, anyone who grew up in a household where money was stressful or off-limits, and women who want to break the cycle and give the next generation a better start.

The biggest takeaway? Rich isn't about how much money your kids have, it's about giving them the choices, confidence, and foundation to build the life they want. 🎧

  

CHAPTERS

00:00 - Introduction: The Money Stories We Inherit and Why They Shape Us Forever
01:32 - Meet Sarah Megason: Why She Wrote How to Raise Rich Kids and Why Now Is the Time to Read It
02:54 - Buy Now, Pay Later and the Danger of Raising Kids in a Frictionless Spending World
04:28 - How to Involve Your Kids in Real Money Decisions at Every Age (Including Family Holidays)
05:43 - "Turn the Lights Off!" — Why Giving Kids Context Around Money Changes Everything
06:43 - Why "We Can't Afford It" Can Do More Harm Than Good — and What to Say Instead
08:50 - What "Rich" Really Means: Sarah's Definition That Has Nothing to Do With a Silver Spoon
09:56 - Why Financial Education in Australian Schools Is Inconsistent — and What Parents Can Do About It
12:12 - Inside the Book: The Three Sections of How to Raise Rich Kids Explained
13:52 - Ditching the Finance Jargon: Why Plain Language Is the Key to Better Money Conversations
15:01 - Pocket Money and Chores: Should Kids Have to Earn It? Sarah's Points System Explained
16:36 - Cash vs. Digital: Why Sarah Still Pays Her Kids in Cash in a Cashless World
17:57 - Teaching Kids to Invest: The Government Super Co-Contribution Hack That Could Grow to $300K
20:16 - It's Never Too Late: How a $5-a-Week Habit Turned Into a $3,000 Gift for an 18-Year-Old
21:15 - Where to Get Your Copy of How to Raise Rich Kids

 

RESOURCES FROM THE EPISODE

📖 Book
How to Raise Rich Kids: Build Lasting Wealth for Your Children by Sarah Megason
Available at all major bookstores, online book retailers, and airport bookstores.

 

CONNECT WITH SARAH MEGGINSON

LinkedIn: https://www.linkedin.com/in/sarah-megginson-857a2717b/
Instagram: https://www.instagram.com/moneymargarita/
Instagram: https://www.instagram.com/howtoraiserichkids/

 

CONNECT WITH LADIES FINANCE CLUB

Buying a property? Need Financial Advice? Time to sort the Will? Let us help connect you with an awesome woman in finance! https://directory.ladiesfinanceclub.com/
Join our free Facebook group - Ladies Finance Club Money Chat
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Newsletter: https://www.ladiesfinanceclub.com/newsletter23

 

TAKEAWAYS

SOUND BITES

"The culture of spending is so fast and frictionless."

"Money gives you choices and opportunities."

"Start superannuation early for massive long-term growth."

 

TRANSCRIPT

[00:00:00] Hey, thanks for joining us back for another episode of Get Rich. Love to have you back listening to the show. So when do we learn what money means? Is it the first time we're told we can't afford it? The first time we hear our parents arguing about bills? Or maybe it's those moments that don't seem important at all, the comments we overhear or the habits we quietly copy, the beliefs we inherit without even realizing it.

[00:00:26] Because this is a thing. Long before we learn how to budget, invest, or build wealth, we've already formed a relationship with money, and that relationship often follows us for the rest of our lives. No biggie just the rest of our lives. So what if raising financially confident kids isn't about teaching them to save more?

[00:00:44] What if it's about changing the conversation we have around money altogether? This week on Get Rich, I'm joined by the gorgeous Sarah Meggison, author of How to Raise Rich Kids. Together we're chatting about the money stories we inherit and the ones we're passing on, and how to raise children who see money as a tool for freedom rather than a source of fear.

[00:01:05] We dive into a heap of practical strategies, but also the one I love, 'cause I didn't actually know this, is a government super hack that could grow into nearly 300,000 for your teenager, and it's so simple to do. But at the end of this conversation, I really do believe being rich isn't about how much money your children have.

[00:01:23] It's about giving them the confidence, the choices, and those foundations

[00:01:26] to build a life that is truly their own. Let's get rich.

[00:01:32] This is such a special episode because we have live in studio. We've never done a live in studio. For the first time ever, we've got Sarah Meggison, and she is talking about her new book, How to Raise Rich Kids.

[00:01:44] So if you're watching the YouTube of this, you'll be able to see the book. If not, we'll make sure we pop lots of links in the show notes. Welcome to the podcast. Thank you so much. I'm so honored. I had no idea I was your first. You've got such a beautiful setup. I assumed- ... you had lots of people in here, so this is great.

[00:01:59] Not at all. So your book, How to Raise Rich Kids: Build Lasting Wealth for Your Children.

[00:02:05] Mm. Why

[00:02:06] this book, and why now?

[00:02:07] Oh, two great questions. This book because I'm a parent myself. I have three kids age 10, 13, and 15, and I'm- the eldest especially, she's gonna get a license soon- Wow ... and just join the real world.

[00:02:19] And so I've been thinking for the last few years about the things that I wanna teach her and what I want her to know as she goes out and explores the world for herself, and that led me to think about other parents would probably have that similar thing, that similar thought of like, "What do we do?" And I've been doing things like pocket money, and my kids help me with grocery shopping and stuff.

[00:02:38] Yeah. We do it online together, and I've been doing those things, and I thought, "There's actually probably some stuff in here I could share with other people." And why now? I think now more than ever is the most expensive time that it has been in yonks.

[00:02:54] Yeah.

[00:02:54] That's the official term. Yeah. But it's so expensive, and I really think that the culture these days of spending is so fast.

[00:03:04] There's no friction in it, and there's buy now, pay later.

[00:03:06] Yeah.

[00:03:07] So we're setting people up to spend money they don't have on things they don't need, and to shop when they're broke.

[00:03:12] And to make it so easy to do that as well. Yeah. Like, it is so easy to open a buy now, pay later.

[00:03:17] Yeah.

[00:03:18] Wild

[00:03:18] And you can use it for things like a burger, Uber Eats, you know, like things that are so disposable.

[00:03:24] And we've just completely taken friction out of spending, and I don't necessarily think it's a good thing, and I think it's really hard for kids and teens and young adults to understand that real value for money the way we did. Yeah. We had actual cash, you know?

[00:03:36] Yeah.

[00:03:36] When I was a teen and in my early 20s, I had to go to the shops.

[00:03:40] Yeah.

[00:03:40] We didn't have online shopping back then. But that made it easier to budget and stick to a budget- Yeah ... and not overspend because I couldn't. Whereas now we are inundated every day with text messages, and emails, and social media advertising. God. And there's just so many opportunities to spend. So I really wanted to put together a bit of a framework to help parents educate their kids, and my hope is that parents in reading the book will pick up some tips for themselves as well.

[00:04:04] Yeah, absolutely. Oh my God, I love that. So much to unpack there. But I reckon let's start with actually raising good kids. So you mentioned a little bit, like you do the shopping, you bring your kids into that conversation. 'Cause I think it's so important that we are having money conversations with kids from a young age, and we're not doing it behind closed doors, making it like this is

[00:04:26] an adult thing

[00:04:27] only.

[00:04:28] Yes. So how else do you involve your kids in the conversation of money?

[00:04:32] Yeah. It probably won't surprise you that we talk about money all the time and always have. And our kids are involved in a lot of our decisions. So if we're going on a holiday, we'll talk to them about the options and say, "We're looking at going.

[00:04:45] We can spend a week in Fiji or we can have three holidays in Australia this year." Mm. "Where we go to Sydney and to Melbourne and to Brisbane. So which one's that's gonna cost about the same? Which would you prefer?" And when we went to Europe last year, there were lots of decisions, 'cause Europe is crazy expensive.

[00:05:03] Oh my gosh. So expensive. And it was our first time ever going, so we wanted to squeeze in as much as we could. Yeah. But there were lots of points where we would say to them, "It's gonna cost us, like, as a family of five-" Yeah ... "$700 to do this activity. Would you prefer to do this one or that one?" Right. And just get them involved in understanding- Mm

[00:05:19] context of money. Around the house, you know, I'll say, I remember being a kid and my dad saying, "Turn those lights off," and-

[00:05:26] Same ... "

[00:05:26] Get out of the shower." Yeah. But I didn't really know what it meant. Yes. Like, I just knew life was expensive, but why? So now I will say to my 10-year-old son, "Get out of the shower.

[00:05:35] It costs a lot of money to heat up the hot water. You've been in there eight minutes. Get out." And it just provides context. Yeah. Because if we don't share it with them, they make up their own stories.

[00:05:43] Yes. I always have this conversation now as an adult. My dad used to get, like, classic Boomer dad. Like, "Turn those lights off."

[00:05:52] Yes. Like, used to get so angry about the lights. Yes. But what I didn't realize was he was going, "That's money I've been working really hard for." Yeah. "And by you turning on the lights, you're showing me that you're not appreciating it." Now, like- Mm ... 10-year-old Molly did not obviously- Yes ... put those, link that together.

[00:06:07] But I was like, how do you sat down and explain that? Or have you just said, like, "Let's turn this into a bit of a game. If we can reduce-" Mm ... "the power bill-

[00:06:15] Mm ...

[00:06:15] by 10%, either you get that money or we're gonna get a treat." Like, I think there's- Oh, that's such a

[00:06:20] good idea ...

[00:06:20] ways that you can actually, like, I love that you're actually explaining-

[00:06:24] Mm

[00:06:24] why that is a problem.

[00:06:26] Yeah, and we talk to them about everything. I talk to them about, they know how much money I earn, how much their dad earns. Yeah. They know how much our life costs. Yeah. You know, they're kids, so I say to them, "Please don't share this outside of the family."

[00:06:39] Yeah, yeah,

[00:06:39] yeah. But, but it's just for us to have those conversations where they have context.

[00:06:43] I know for me, I grew up in a house that was, we didn't have a lot of money. Mm. We were always stressed. And all the stories I heard about money was that it's stressful and hard to come by, and- I kind of internalized, if I don't have enough money, life is stressful. Yeah. So I was really determined with my kids to be as open as I can, and, um, also mindful of how I talk to them, 'cause I grew up hearing a lot of, "We can't afford it."

[00:07:07] Yeah. "We can't afford it. We can't afford it." And we genuinely couldn't afford it. But I think if m- that really instilled in me this idea of scarcity- Yeah ... and that money's hard to come by. Yeah. And if you're in that situation and you can't afford it, there's just other ways to involve your kids in that conversation.

[00:07:23] Yeah.

[00:07:23] Because what that did for me was made me think that life is expensive and we're a bit risky. Yeah. Like, things are a little bit unsettled. Mm-hmm. I didn't feel super secure.

[00:07:32] Mm.

[00:07:33] Whereas if my parents had had the language to say, "We don't earn heaps more. Like, the money we've got covers the bills." Yeah.

[00:07:39] "We don't have heaps more than that, so we can't have ice cream, and we can't do that activity. But we can, like, once a month, so we'll work towards it," whatever. Yeah. Just a bit of context Would have helped.

[00:07:49] Yes.

[00:07:49] And I think we try to protect our kids from money stress- Yeah ... by not talking to them about things.

[00:07:53] Yeah. But they pick up on

[00:07:55] everything. They're sponges.

[00:07:55] They are.

[00:07:56] And I love that. And, and from what I'm hearing as well, it sounds like your kids are gonna be going, "Okay, money gives you choices. Do we do this or do we do this?" Yes. Which is such a positive- Yes ... association with money. Because I, and I write this in the book, his name was Andy Griffith, and he had gone and spoken around Australia to all these different schools, and he said, no matter what state, what city, what, like, demographic, he'd be like, show a pile of money on a screen and be like, "Call out what words you associate with

[00:08:27] this."

[00:08:27] Mm.

[00:08:27] And it was always, like, bad, evil- Greedy ... negative, greedy. They're- Yeah ... selfish. You know, and then you... And then he said, like, never was there the words of, "It's opportunity." Mm. "Smart. It means it's success." Mm. "It's freedom." So it's interesting that a lot of the, I think a lot of the messages people, kids get at home, it's not those positive money-

[00:08:48] Absolutely

[00:08:49] associations.

[00:08:50] And you raised the C word there, my favorite C word, choice. Yeah. And that's what it's all about. So I deliberately called this book How to Raise Rich Kids, which is quite a contentious title. Yeah. It's d- designed to be provocative. Yeah. Because it's not about raising children with a silver spoon in their mouth.

[00:09:05] Yeah. My definition of rich is a family where your kids have choices. Yeah. They can go on adventures, and they can chase opportunities, and they have the freedom to be curious, knowing they've got a financial foundation behind them- Mm ... to catch them when they fall, because that's what I want for my kids. I don't actually want them to be wealthy.

[00:09:23] I mean, great if they want to be, but I want them to have a really good understanding of money- Mm ... so that whether they're earning 10 bucks an hour or 1,000 bucks an hour, they know how to put that money to use to build the life they want, you know? They might decide to go be a, you know, to teach English in Bali and live off $12 a day.

[00:09:41] Yeah. Or they might wanna be a CEO in New York. Like, whatever they want, I want that for them, but I want them to be able to explore and figure that out.

[00:09:48] Yeah. So important. Such a good life skill-

[00:09:51] Yes ... that

[00:09:51] you're, you're teaching them, 'cause they're not really learning it at school. Or are they starting to learn it at school?

[00:09:56] They, it's very inconsistent. My daughter's in grade 10, and she's doing a business certificate, so they learn a bit in that, and in the economics classes they do, but it's certainly nowhere near streamlined. I hear from some parents who say, "My kids are learning X, Y, Z at school." So it's very inconsistent at the moment, and there's lots of groups trying to do great things.

[00:10:14] Yeah. But we don't have, I think we should have a primary school and a high school curriculum- Yeah ... that is- That specifically teaches this. At the moment, the burden usually falls to the maths teachers- Yeah ... to pick it up.

[00:10:26] Which is not their job necessarily.

[00:10:28] Yeah. It's where the natural fit is because it's numbers, but I think there should be a, a life skills-

[00:10:34] Yeah

[00:10:35] l- like line of curriculum.

[00:10:37] Like life, yes, a life skills. And I would like to add a couple of other things in there.

[00:10:39] Yes, it's not just money.

[00:10:40] I'd like to add alcohol, good relationships.

[00:10:43] Yes, social skills.

[00:10:44] Social skills.

[00:10:45] Um, cooking. Yeah. Like the basics of, my kids, not my little one, but my 13 and 15-year-old, they know how to make a basic pasta, mac and cheese, some avocado on toast with poached eggs.

[00:10:57] Like, they've got this repertoire-

[00:10:59] Yeah ...

[00:10:59] at, as teenagers, and I think of how many people I know who don't cook And it's not because they're lazy or, you know, they just are like, "I've never learned. I just don't know how to cook." And most people, if you know how to fry onion in oil- Yeah ... and add some garlic, that's the base to- Makes-

[00:11:16] 90% of dinner.

[00:11:17] Yeah. So we were actually homeschooled for a year, and mom took us out of school, and we traveled the world. And then- Oh,

[00:11:23] wow ...

[00:11:24] we learned so many of those life skills- Yeah ... that I just assumed we would have our mom's cousin teaching us sewing, and then we'd have cooking days, and then we'd do- Oh, wow

[00:11:32] all the different things. But yeah, you-- I do forget sometimes that unless someone's gonna teach you- Yes ... those skills, you're not gonna just know.

[00:11:38] So it's very inconsistent, right? If you're lucky enough to have an auntie that sews or- Yeah ... a parent that teaches you- Totally ... great. Or

[00:11:44] has good financial habits to be able-

[00:11:46] Yes

[00:11:46] to teach

[00:11:46] you, they've gotta have their good habits to

[00:11:49] start with. Exactly. Exactly, and that's what my hope is with my book is that w- parents will read it, 'cause we always put our kids before ourselves. Yeah. As you know. Yeah. We will sacrifice our own food and our own sleep and our own wellbeing to set them up.

[00:12:02] So that's why I kind of chose this angle as well, to try and reach parents to set their kids up, and then maybe they'll see a few things along the way that can help them put their finances in a better position.

[00:12:12] Fantastic. So reading through this book, what are some of the topics you cover?

[00:12:16] Well, it's, it's w- kind of separated into three sections.

[00:12:19] The first section is a whole deep dive into money mindset, but don't let that put you off. I know that can sound woo-woo.

[00:12:26] Love it.

[00:12:26] But it- It

[00:12:27] all starts with money

[00:12:27] mindset ... it all-- it does. Money is never about money. Yeah. It's about our emotions and our emotional connections to money. So we explore some of that and how the things you say or don't say around your kids can impact them in positive and negative ways.

[00:12:39] So it's just a really kind of interesting exploration. The second section is all divided into ages. So we have under fives, five to 10- Great ... 10 to 15, 15 to 20, and then it's like those are the sections for each of those children, what you could invest in- Mm-hmm ... how you could approach pocket money- Yeah

[00:12:55] age-appropriate conversations really designed for those age groups. And then the last section is a deep dive into every different investment type because I definitely feel like a lot of financial language is really gatekept. So when the federal budget was announced a few weeks ago, I saw someone, or I think I got an e-newsletter from someone, and they said, "Well, we're seeing a move from tradit- a, a flee from traditional equities."

[00:13:18] And I was like, that's just- What? ... what does that even mean? Like, traditional equities is just shares. Yeah. Just say shares.

[00:13:25] Traditional companies.

[00:13:26] Yes. Like, just cut all of that extra stuff

[00:13:28] out. Oh my God, they love a bit of jargon schmargon.

[00:13:30] They love it. It makes them feel smart. And when we have an RBA rate decision, everyone's talking about basis points and- Oh, I hate a basis point

[00:13:37] downward pressure and upward pressure and headwinds, and I'm like, the average person doesn't know- No ... what any of this stuff means. Like, what does that mean for my mortgage? So- Yeah ... I've broken down every investment type into just really simple, easy to understand- Examples.

[00:13:52] So good and so needed.

[00:13:53] Yeah. I

[00:13:54] wanna

[00:13:54] I used to hear about ETFs, they're like, "It's a vehicle." Mm. I'm like, "Please do not use the word vehicle."

[00:13:58] Yes. It's a structure. It's a structure. Okay? What I say for ETFs is imagine you've walked into a supermarket. Mm. A share is a banana, and an ETF is you've got your basket and you've put 50 different groceries in.

[00:14:10] Yep, we do that. That's the difference.

[00:14:12] I use the favorite chocolate box analogy.

[00:14:15] Mm.

[00:14:15] Which is now taking off. I see it everywhere now. I'm like-

[00:14:18] Oh,

[00:14:18] really? ... "Excellent." Yeah, I'm like, "Great, guys." But yeah, lots of different chocolates in the one box. Yeah. Lots of different companies in the one unit. But it's so important I think to that language.

[00:14:27] 'Cause I know basis points, I'm always like ... Even me, I'm working in this- Yeah ... in this, um, in this, like, sector and I'm like, "Oh, God, what's a basis point again?"

[00:14:36] Yes. We don't need to be speaking like that. We're not mathematicians. Like, there is a technical difference between a percentage point and a basis point.

[00:14:44] The average person doesn't need to know. They just wanna know, is my mortgage gonna get more expensive- Yeah ... and by how much, and what can I do about it? So-

[00:14:51] Absolutely ...

[00:14:51] I really try to make things as simple as possible.

[00:14:54] Great. And I would love to know, what is your opinion on pocket money? Do kids have to work for their pocket money, or should they just be given it?

[00:15:01] I think they should be working for it. Yeah. The, uh, there's so many different schools of thought here, and I explore a few of them in the book. But some parents believe that kids should do certain contributions without money. Like, you know, we all eat in the kitchen, so we should all be washing the dishes and things.

[00:15:15] And I, my hat is off to those parents who can motivate their kids, but I found that to be an uphill battle. So we have always incentivized our kids. There are certain things, like they've gotta make their bed and, you know, they've gotta put their washing out- Yeah ... and stuff. Stuff that they do to look after themselves.

[00:15:28] But chores for the rest of the house, we pay them- Yeah ... for their contribution. We gamified it from a really young age. Yeah. So we have a points system- Yeah ... on the blackboard in our kitchen, and they earn points for chores. Oh, nice. So that's more motivating for kids than money. They don't really understand money.

[00:15:43] But earning points and trying to beat their sister, they understand that. So we do points for chores, and they earn points for things like feeding the dog, to unsacking the dishwasher, resacking the dishwasher, bringing the washing in, just all of those- Yeah ... normal household tasks. And everyone has a different strategy.

[00:16:01] Some people will be like, "I'll give you $10 a week, but you've gotta feed the dog every night- Yeah ... and take the bins out," or whatever it might be. And there's no right or wrong, it's just a matter of finding what works for you and what motivates your kids. Yeah. And for me, I found points have been the most effective strategy.

[00:16:17] Yeah. So that's worked for us,

[00:16:19] so we'll keep going with it. Love it. And as far as, like, giving pocket money to kids, the actual vessel that you're using- Mm ... are you using one of these online bank accounts, or do you use, like, tokens? I know some people-

[00:16:31] Yeah ...

[00:16:31] will use, like, fake money, and then they replace it with, like, the real money.

[00:16:34] Yeah. There's so many ways to do it.

[00:16:36] Yeah.

[00:16:36] And we do a combination. So we have a high interest savings account for each of our kids- Yeah ... in their name. I think that's a really good thing for parents to do, is to actually take your child into the bank too, and do it. Yeah. Like, it, it's kind of just getting them exposed to the idea of, in their head now, they understand the bank that they went to- Yeah

[00:16:54] is where their money is. Yeah. And it just, we need to try and create tangible moments because everything's so digital.

[00:16:59] Yes, I know. Um, I was speaking to a lady, and she's like, "My kid thinks the ATM is a magic machine."

[00:17:03] Yes.

[00:17:04] A, a magic money machine.

[00:17:06] Yeah. And credit cards are free money. I took them in to get their first account, and they have that account for their savings, but pocket money we pay them cash.

[00:17:16] My eldest is almost 16, so now she will often get her pocket money and she'll say, you know, "I've got..." She'll maybe- Save a bit of it, she's got $50, and she'll say, "Can I give you $50 cash and you put it in my account?" Yeah. Because she's much more likely to spend using her card. But we still pay every time with cash-

[00:17:32] Yeah

[00:17:33] because I think it's important to try and get them to understand what cash is.

[00:17:37] Yeah. '

[00:17:38] Cause it's, it's

[00:17:39] also digital. Cash in a cashless society. I know.

[00:17:41] Yeah. Sometimes it's convenient. Yeah. My middle daughter was at the movies. Well, she was at the shops yesterday, and she was like, "I wanna go to the movies.

[00:17:48] Can you transfer me some money?" And that was convenient, but, you know, I would trade that convenience for a little bit more friction any day.

[00:17:57] Yeah. Absolutely. And is there anything in the book about teaching kids to invest?

[00:18:02] Yes. Yes. Okay. So there's actually a whole section about superannuation and kids.

[00:18:06] Mm-hmm. We can start a lot younger than we perhaps-

[00:18:09] Yeah ...

[00:18:09] think. And I'll give just a really basic example. If you were to... There's a thing called the government co-contribution Where if you earn under, at the moment it's about $47,000 a year, for every $1,000 you put in, the government will match you 500 per year.

[00:18:26] So if you do that with your kids for five years, say from age 15 to 19-

[00:18:29] Yeah ...

[00:18:30] and you put in $1,000 a year and the government gives you another 500, that means you've invested $5,000 in your super.

[00:18:37] Wow, so there's no age limit on that?

[00:18:38] No.

[00:18:39] Be like after they were 18.

[00:18:40] No.

[00:18:41] This is such a good tip.

[00:18:42] Yeah.

[00:18:42] Wow.

[00:18:43] It, it's any age as long as they're earning income.

[00:18:46] But the rules are it's gotta be 10% must be income. It can't be just, like, interest- Yeah ... or investment. But my daughter, we started it with her when she was 14 and got her first job.

[00:18:56] Yeah.

[00:18:56] So as soon as they're earning an income you can do it. And I worked out that that five years, you put it in for five years, assuming they're teenagers and they're earning under that threshold.

[00:19:05] Which most of them would be.

[00:19:06] Most of them would be, yeah. So you've put in 5,000, the government's tipped in another two and a half. By the time 40 years have passed, so say they're about 60-

[00:19:16] Yeah ...

[00:19:17] that will have grown to around $300,000. Yeah. Assuming 9% annual returns- Yeah ... in your super. A

[00:19:23] power of compounding return.

[00:19:25] Yes. And I think even if that's all you do, that's $20 a week for five years. If that's all you do for your kids, you at least know you've got that little pot of wealth for them down the track. It's incredible. Yeah. And so there's lots of different examples like that through the book that are about how you can set them up to learn about investing, how you can learn about it, how you can do things together, do things separately, set different goals, you know, 'cause that's a long time away.

[00:19:52] You might want a different goal that's something they can access when they're 25 or 30. How you might want them to help them get into the property market. All of that kind of stuff. Yeah. '

[00:20:00] Cause I do meet, um, women and they're like, "I wanna invest for my child because I've left it too late." And I'm like, "You haven't left it too late."

[00:20:07] Yes. No. But both do it at the same time. Yes. Like, yes, you might choose different things you invest in- Mm ... or different risk levels, but you're never too late to start investing.

[00:20:16] I, uh, couldn't agree more. And I think one of my good friends, we've been friends for years, so she's been doing this stuff for years, and she just told me last week that she'd been putting $5 aside every week for her godchildren.

[00:20:30] Yeah.

[00:20:30] Um, she's got four godchildren, so it's $20 a week outlay for her. And her eldest godchild just turned 18, so she'd been putting that $5 aside in a high interest savings account. And she was able to give him $3,000 for his 18th. Wow. And he is just over the moon and, and her kind of, her guidance with it was, "You can have this, you know, this is a gift for you, but I'd really like you to invest with it.

[00:20:53] Like do something with it." And she said they've now really bonded over it because he's got an investment platform and he'll text her and go like, "Hey, I'm thinking of putting some money into this one. What do you think?" Yeah. And it's like the gift of money, but also the gift of education- Yeah ... and getting people, getting kids really excited about what's possible.

[00:21:09] Yeah. Oh, wow.

[00:21:11] Yeah.

[00:21:11] Fantastic. I

[00:21:11] love it. I know. It was like, I got goosebumps when she told me.

[00:21:15] Aw. So where can we get ourselves a copy of How to Raise Rich Kids?

[00:21:19] Well, if you're lucky enough to be traveling, you can grab it from the airport.

[00:21:23] Love that.

[00:21:23] But it's also in all bookstores, and you can get it online at all the online book reail- retailers too.

[00:21:30] Fantastic. Thank you so much for coming on the pod. Thank you for having

[00:21:33] me.

 

KEYWORDS
 Australia, money education, raising rich kids, financial literacy, parenting, investment, superannuation, money mindset, financial independence, kids and money, financial literacy for children