Everyone over the age of 22 knows the hit song by the Barenaked Ladies. In the song they discuss all the things they would buy with a $1,000,000. Most of it is goofy stuff like a llama or an emu, Dijon ketchups, and a tree fort in the yard. I was in the car with my kids the other day and the song came on the radio and my 11 year old daughter said I love this song. I asked her where she heard it and she said I listen to it from the iTunes library. (Note to self be careful what you download into the iTunes library!)
It led to an interesting conversation about how you actually get a $1,000,000. To an 11 year old a $1,000,000 seems like an insanely huge number. To a large majority of the US population the idea of having a $1,000,000 is impossible to comprehend. I began the conversation by saying that it begins by living on a budget and spending much less than you earn. Then once you have some money saved you do it over and over again. Then when you have some money saved you can invest it and over time it should grow through this amazing thing called compounding (More about this in a Future Post). If you do it for long enough you eventually have a $1,000,000 saved. This is how most of my clients became millionaires. They lived on less than they earned, invested the difference and after a long enough period of time they had a $1,000,000. Compounding is your friend.
My son said well that sounds easy enough. I love the innocent minds of children. They can teach us so much. I said it is actually really hard and requires a lot of discipline. We also discussed the power of starting the road to a $1,000,000 at an early age. The earlier you start to save the more likely you are to be able to accomplish it.
Then we got back onto the song and I asked them what they would buy if they had a $1,000,000? My sons answer was a classic for every 9 year old boy:
Well with a $1,000,000 he could get his Lamborghini, but a $1,000,000 won’t buy much ownership of an NBA team not even the Atlanta Hawks. I’m hopeful as they age the lessons I am teaching them will help them to develop good money habits. I encourage them to dream big but they need to understand that it requires a lot of work to accomplish their goals whatever they may be.
What money habits are you teaching your children? The lessons they learn now will help form how they view money as they get older. Have honest conversations with your kids about money. Try and make it fun. Ask them what they would do with a $1,000,000. What would you do with a $1,000,000? Do you have a plan to get to your $1,000,000? If not we are here to help you develop a plan.
Too spark a little creativity in what you would do with a $1,000,000 here is a video from the Barenaked Ladies singing their hit song.
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Until next time best wishes
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.