Lessons From Episode Six
Children are a perfect conversation starter when Pauline and Terence meet Haizel and Bruce in episode six of Money Matters by Impart Media. Connecting with strangers is hard; having real conversations with strangers about money is even more difficult. But parents love talking about their kids, especially with other parents. And every parent wants the best for their children—including a healthy financial future.
From building generational wealth to making smart financial moves, the two couples find plenty to talk about. If you're a parent, you'll relate to their concerns and desires—and find plenty of opportunities to laugh out loud. Watch Episode Six
Build Generational Wealth: Give Your Children a Head Start
Building generational wealth isn't just for families with a long history of riches; it's for all of us. The first steps? Talking to the next generation about money and setting them up for a debt-free (or minimal debt) adulthood.
At five years old, Pauline’s and Terence’s daughter, Grace, was cast in an acting role for a movie. And she made a lot of money. Pauline and Terence want to give Grace a head start in the world by investing her money wisely and teaching her about building wealth from an early age. They begin by including her when they open a savings account in her name.
Like Pauline and Terence, Haizel and Bruce are passionate about teaching their children about money and giving them opportunities to build generational wealth. Haizel shares that they invested in their children’s 529 plans when they were little. And the family has nearly reached their ambitious goal of paying 50% of their teenagers’ college tuition—which will help their children get out of debt and build wealth earlier in their careers.
Become a Financial Role Model: Make Smart Financial Moves
Both of these couples are wonderful role models for their children. It's not just the fact that they're becoming financially savvy that sets them apart—it's their openness to learning and adapting to new financial information. Terence, for example, is motivated to make extra payments on his mortgage each month to reduce a 15-year payment plan—and who wouldn’t want to pay off their house as soon as possible? But it’s not as simple as it sounds. Cris, their financial advisor, points out that a house is not a liquid asset and, if the couple ever needs some extra cash, they wouldn’t be able to take it out of their home easily. Since a 15-year mortgage plan is already aggressive, he recommends that the couple put their excess funds into a 401(k), savings account, 529 college fund, or life insurance. Having a balance of liquid and non-liquid assets is key to building lasting (and flexible) wealth.
Pauline and Terence stay receptive to the new information Cris presents—and their subsequent financial moves will generate more wealth for them.
Transformation: Talking About Money Generates Action
While Haizel has been pushing Bruce to face their money challenges and start talking about their finances, Pauline and Terence have never been comfortable talking openly about money. And yet, both couples are rethinking the money taboo: they all express that recent conversations led to financial breakthroughs and new ways of thinking about money and life.
They talk about preparing their kids for a healthy financial future and how uncomfortable it is to talk with strangers about money. And they reflect on their experience working with financial advisors while cracking up over jokes about life insurance policies. By the end of their conversation, the two couples discover they have far more in common than the circumstances that separate them.
Haizel sums it up well: “It sounds like we’ve all learned to just get it done," she says. "If you have an idea for doing something, just do it, and don’t let fear overcome the process. Just get it started and the process will develop as it goes—but just do it.”