Talking With Strangers About Money

Lessons From Episode Four

Money Matters by Impart Media Image of father, daughter, and mother having a positive discussion about money

We left off with Cheyenne and Marco wanting to buy their first house in Episode 1 and Bruce and Haizel committing to a budget in Episode 3 of Money Matters by Impart Media. Episode 4 presents a fun twist in which these households—who have never met before—mingle in a surprise chat about their finances.

Talking about money with family is a fantastic start to any healthy financial future—but talking with someone outside your household is taking it to the next level. Confidence in your knowledge and planning can take you far, but don’t underestimate the value of an outside look. Here are just a few things you can get from talking with peers about your financial challenges and goals.

Find Things You Have in Common

These households immediately bond over the absence of money talk in their houses growing up. Their parents didn’t have savings, and what they did have, they kept on hand. Both couples are new to making investments, and though they had just started dabbling in things like mutual funds and cryptocurrency, they have a lot of knowledge to exchange.

Talk to Kids about Dough & Debt™

Both couples agree on the importance of teaching kids about money early on—and not treating it like a taboo subject. Haizel points out that most parents say that the “birds and the bees” talk is important but that we often neglect the “dough and debt” talk. It’s common to ask children what they want to be when they grow up, but the conversation prematurely stops there—it’s crucial to prepare them for an independent life, both in their life’s mission and finances.

Get Tips for First-Time Home Buyers’ Programs

Cheyenne and Marco share their experiences looking at potential houses within their price range and how none of them were right for their family. When they considered the types of houses they would want, they were out of their price range. Cheyenne said they went home feeling deflated.

Though it was a disappointing realization, Marco says that it gave them a better idea of where they are financially—and it’s helping them reevaluate their goals. Jerel advises them to focus on building their emergency fund first before putting a down payment on a home.

Bruce, who works in real estate, says there are also first-time home-buyers programs they can look into for assistance. Some even offer a grant for a down payment on a home—and if the household lives there for at least five years, the grant doesn’t need to be paid back.

The programs are never ongoing because they’re constantly changing, but they’re always available. Checking with your bank or with the US government are great starting points.

Added Bonus: Learn about the Stock Market

Meghan Rabuse from Family Finance Mom offers an introductory lesson about investing in the stock market. She describes the stock market as a “financial grocery store where all publicly traded companies are available for sale through securities through stock.” A single stock represents a piece of ownership in a company.

To participate and invest in the market, you can either buy individual stocks or buy into investment funds, in which your money is pooled with other investors to buy stock. She stresses that the longer your money is in the market, the more you can make. In her experience, most people hesitate to invest because they’re afraid of losing their money—however, the stock market has consistently trended upward, even through the Great Depression. In the long run, investing your money for the long haul is a safe bet for good returns.

She also mentions the three major stock index funds: the S&P 500, NASDAQ, and DJIA. Learn more about them in the Hive Wealth app in the posts dated May 20-27.

It Takes a Village to Raise Your Wealth

By the end of their conversation, both couples were pleased with the outcome and felt like a weight had been lifted (the money taboo must be pretty heavy!). Having these talks with your partner or your children is one thing, but it has an extraordinary impact when you share knowledge and insights with another household.