What Are The 5 Principles Of Financial Literacy

Five principles of financial literacy for families. I love this conversation, and it is near and dear to my heart because when I got pregnant with my son, Logan, January 1999 is when I knew I'm like, I'm going to be a single mom. So I got to figure this out in a very different way. Having grown up in a very traditional farm family, which is most of you probably grew up in a very traditional family, and no one talked about money. And I'm not blaming my family. I'm just saying nobody talks about money still today. It's shocking to me how many people are even in their 50s, 60s, 70s and still haven't trained their 20 or 30 or, you know, teenage kids anything about money, but they have amassed money and they're going to give it to uneducated kids. Makes no sense. You should have brought your kids with you. But should have, could have, would have, you didn't. So what do you do now? I'm going to talk about five principles of financial literacy. So I'm going to actually read them off. So write them down. Number one, the pivotal role of parental guidance in financial education. I am 100% believe you do not have the school system do this. You do this. It's your family. It's your legacy. And I have a whole process of how to teach legacy families. Number two, it's a lifelong journey. Business and wealth building is every day. If you think about it almost every day, you are spending money on 10 to 20 items. You're buying coffee. You somehow pay your rent or mortgage. You pay for gas. Somehow your car payment is getting paid. Your insurance is getting paid. Your cell phone bill is getting paid. If you add all that up, you've done those consciously as business deductions or you have just casually done them. Third principle, cultivating an entrepreneurial mindset, right? For wealth creation, because here's the difference between entrepreneurs and employees. Employees make spend, make spend, make spend over pay taxes like it's a norm. Entrepreneurs, we make, we invest and we forecast. So we are using all what you would use as life expenses and we're putting them as business deductions. Number four, the necessity of applying financial knowledge in your real world scenarios. Like how do you understand financial knowledge and go buy real estate, go buy a company, actually apply this so you understand it. See, my job is to advocate for you and your family that you know enough about it that you can lean in and behave appropriately. A lot of you have never been taught your actions around money or business. And the last one is the strategic use of credit and debt as a financial tool. And I have a lot to say about that. So this was a big one. So get a pen and paper, just parental guidance and financial education. It is your job. So get serious. I don't care if your kids are in their 20s, 30s, they're older, they're younger and you haven't had any, but you might be thinking about it. It is your job, not the school's. The school's job is reading, writing, math, science, you know, the basics to get them through what I call the life skills, just the core skills. It is not to teach them business and finance, although it could. And there are some schools who say they do. They're really, really substandard curriculum. So as I look at them, I'm like, you're kind of teaching the Dave Ramsey, Susie Orman stuff, which is go to school, get a good job, you know, get more, park your money in a 401k and hope to God the whole thing works out. It's not what legacy families do. We never pay our kids an allowance. For example, we have them design their own paycheck. If you haven't got my bestselling book and award winning book, it's not just bestseller. It's got two massive awards, the best personal finance and business book of 2022. It's makeyourkidsmillionaires.com. When you buy it from my site, you're going to get a $1,500 bonus of never pay your kids an allowance. How do you actually bring this entire conversation as a parent into your home? Like, I love games. That's why I have the millionaire maker game. Before I designed my own game, I was a master distributor of the cash flow game. Before the cash flow game, I played Monopoly all the time. So if you have to start at the baby game, Monopoly, and then grow up to cash flow, and then you grow up to the millionaire maker. Put this YouTube channel in their hands. Anybody fiving up, I've made this channel family friendly. But talk about money. Even if you just did the YouTube channel, which is my intention, like you sit around the dinner table or breakfast the next morning and say, OK, what's one thing you learned from Laurel, the millionaire maker, Laurel, however you want to refer to me? What'd you learn from our channel? What are we going to do as a family? And you start talking about how you make money, how you're looking at a real estate deal or a stock deal or buying a company. How do you look at this in a very different way and have a conversation? You have to lead it. Because guess what? Why would you amass any level of wealth, even a hundred thousand, if you're going to leave half of it to the state in a probate court because you weren't set up right? And most of you paid in taxes. And then your kids are uneducated. They'll sell it all off. They're going to spend it all. And everything you did in your lifetime will be gone in one generation. Pretty typical. Parental guidance and financial education starts with you and starts with you reading all my books, being on this channel five days a week. So subscribe right now. Click that notification button. And I want you here every day with you and your kids. Now, the second principle is just the lifelong journey of financial literacy and just wanting to learn. So it's being a learner. What'd you learn every day? What are you doing every day to shift? How are you becoming better at it? You're not competing against side by side people. You're competing against yourself for your personal best. I'm always asked that question. When's it enough, Laurel? It's been enough for a year, probably over a decade. It's been plenty. It's not about that. It's about I've been given a gift. You all have a gift. I bring it to you. And that is to teach financial literacy and to change this conversation with money and bring it in your household. So every year you should have a mentor and a coach. Now, we have a lifetime program. You can hire us once. But there are a plethora of coaches and experts in our community. So you're all aligned to the same philosophy of growing in millionaire status or multimillionaires as you do this. But you have to lead the pack. You never want to go on vacations, for example. You want to go on business trips. You want your kids to be involved in the business trip. How can they help plan? How can they start seeing the home economics? What's it take to even live in a household? They should be learning this in their teenage years from you. What does it cost for rent and a mortgage? What's it cost to have a utility bill? What's it cost to have this little phone? What's it cost to do all this? And don't be their bank where they're just like, Mom, Dad, I need 20 more bucks. That's never, never a conversation in our household. So you being committed is their first step to leading them. The third principle is having an entrepreneurial mindset. So instead of living paycheck to paycheck, I want you to become unemployable. I've been unemployable since 1996 when I left Chevron and I was partially employed, partially contracted, went total contract and then went to the Rich Dad Poor Dad team to be the master distributor of the game. Did that through my own company. I didn't work for them. It was a company to company relationship through a contract. And we rolled. And then as I became pregnant and a single mom in 1999, I got another LLC. I got my C Corp. And I started jamming and got a trust and started to prepare to be a single parent and to do this very differently. So I've been unemployable for a very long time. Those of you that are employed and we need you employees, military, firefighters, medical. There's a whole bunch of you. We need you to be employed. That doesn't mean you can't have an entrepreneurial venture. Side hustle. Cash machine is what I call it. So think about what else could you do with this brilliant skill set you have to make more money? You can all do something to make more money today. It's all here. It's not organized in a way. I always say what you're lacking from being an employee to an entrepreneur is your team and your system. You're living employee life, not corporate life. In the description below, I'm giving you two tickets to our Millionaire Intensive. If you have a whole bunch of people, just call into our office and say, I have six kids, my wife and I or my partner and I, and I want to go to this event all for free. And just start learning. Immerse yourself in being an entrepreneurial learner. I have been mentored since I was 17 years old. That was just a minute ago. And I've had mentors ever since. I still attend the events and the masterminds that I need to to stay in front of my community, which is all of you. What are you learning every day? What are the new trends? What's the economy doing right now? We're in the biggest recession. You're not feeling a lot of it right now. You're going to feel it fast. As these caucuses go through, the presidential election gets closer. The market has been propped up by such false printing money and devaluing the U.S. dollar. I mean, it's going to correct. It always does. It always will. Many of the real estate markets are correcting right now. You're starting to see that. You're starting to see a variance of a few drops in the interest rates. But inflation is not going away. You know why? Because everyone raised the wage. So with wage inflation, you can't now take away the salary. So what do people do? They put it all into the price to the consumer. The consumer is paying for all those additional wages. The chances of inflation coming down and prices coming down are very slim, and it's going to be a long walk. So you got to prepare. So, again, being entrepreneurial and thinking, how do I control my household is what I want you thinking about. And then the fourth principle is the real practical application of the knowledge. So you can be here on YouTube. You can read all my six books. You can consume yourself and then still behave like you did before. I call those inherited behaviors. So you have to say, what are the behaviors? From where do you live? I live in the Lake Tahoe, Nevada area. I grew up on a farm in Nebraska. Why? And my family constantly says, when are you coming home? I said, I'm home. I've been in Lake Tahoe area since for over 20 years now. Why? I love it. I love the mountains. I love to ski as much as I can. I love the water. I love the dry air. I love where I live. I only own one property here. Well, actually, some land and other things, but like in real real estate. And I invest in the Midwest. Why? Because I love those markets. Oklahoma is my millionaire market. I have Oklahoma, Texas, Kansas, Missouri, Nebraska. I mean, I have real estate everywhere. Why? Because I love it there. Gas and oil. I have tons of other asset classes. So as you think, put it to work, you can't just say you want to learn it. You have to do it. And the only way you're going to learn to do it properly and avoid costly errors and get there quicker is by mentoring and coaching. And I'd love to mentor and coach you through this. I've had mentors and coaches teaching me. How do you apply it? Like, I didn't know how to buy companies. And around 2005, 2006, I said, well, then I got the real estate code cracked. I've been a millionaire in real estate, millionaire in gas and oil. I want to go buy companies. So I bought a pizzeria, some laundromats, hair salons, nail salons. I flipped most of them, just fixed them and flipped them, just like real estate. But who taught me that? Some amazing mentors. So, again, you've got to be immersed in this is a lifestyle. It's not a program. It's not something you're going to do. It's how wealthy people live. See, a lot of you just kind of do this, you know, I call this inherited behaviors. You do it how your family taught you and you haven't decided to shift and you're not going to go back and convince them to go with you. They're not coming. Now, once you become successful, they'll come along. That's the irony of it all. But convincing them is not going to get there. And then you just stay stuck because you can't get your family to come. I did this all by myself and I ran. So, again, I need you here every day with your family subscribing to the channel. The last thing before I leave this is the practical use of the real knowledge, meaning we don't budget. We forecast. You're going to live corporate life. So minimum, you're going to have one entity, maybe two or three entities, corporate structures and you. So then who pays for your phone? You don't because now you have a business deduction. So if you don't have a company, you can't write this off. You can't write off your vehicles. You can't employ your children. There's so many things you're not taking advantage of because you don't know what you don't know. And if you don't get help and lean in and apply the knowledge, you'll never know. And you'll just walk off the planet and give more inherited crappy behaviors to your next generation. So, again, if there's any topics you want, I want you in the comment bar. I want your five days a week. Subscribe. Hit that notification button. Please listen to it. The last fifth principle as we wrap up this conversation, which is a big one, is credit and debt. So debt is a cost of money. That's it. So you can get cheap debt, two, three, four percent debt, and you can get paid interest on 12, 15, 20, and you could get paid interest. So you're either paying interest to someone else or you're getting it paid to you. You say, well, how do I get on the right side of that equation? Well, first of all, you need to get out of your bad debt at some point. Right. I'm not a fan of bad debt. I'm a huge fan of good debt. Good debt is debt. You can arbitrage. That's what I mean. If you can get three percent debt, invest it for making investments. So say you go out and get $100,000 in debt and you get three percent, you can invest it at 15. You're arbitrary. Your spread's 12. You made 12 points on that. You made $12,000 just printed by being in debt. See, your debt concept is completely wrong because you've been taught you should live debt free and you shouldn't have credit cards. Nothing's further from the truth. Go to my search bar, look up credit cards as investment cards. You're going to have a heyday of hours and hours and hours of listening to how to do debt and credit right. I'm a huge fan of it. Use properly. It will create a millionaire in a year. It is not difficult. It is extremely different and you've got to manage this thing that goes on here around your psychology around debt and your behavior around debt. So not led, you're going to end up in a lot of problems. If I'm leading you, you're going to end up really rich. Your choice. If you have any questions about these five principles or anything that I talk about, go to askLaurel.com. A-S-K-L-O-R-A-L. Ask a question, make a request. We'll be back tomorrow.