This week, we are beginning a new blog series on Personal Finance Writers who inspire us. Andrew Hallam is our first honoree. His book Millionaire Teacher (Nine Rules of Wealth You Should Have Learned in School) has been a recommended read ever since it was published in 2011. On a teacher’s salary, Mr. Hallam amassed over a million dollars before his 38th birthday. When he couldn’t find a book to answer all the questions his friends and colleagues constantly asked him (about the path to financial security), he wrote one himself.
Use the greatest investment ally you have.
Aside from restating the well-known fact that you can’t spend more than you make and expect to achieve financial peace of mind, the most relevant rule Andrew discusses for our purposes (teaching kids to think before they buy), is to “Use the greatest investment ally you have”. What’s your greatest investment ally? Time. Get rid of your debts, and then start saving and investing as early as you possibly can. Our hope is that today’s school-aged children will be able to invest much earlier than their parents because they’ll be able to avoid typical early financial pitfalls, like punitive lifestyle and student debt.
Life is a series of trade-offs and choices.
By illustrating how consumer choices today (like not buying new cars) can positively or negatively impact your future bottom line, Andrew hopes to inspire readers to make early, frequent, sound financial decisions. Our categorization of thinking before buying as the A-B-Cs or 1-2-3s of financial literacy is perfectly aligned with this focus on developing good habits early.
One way we’re helping parents accomplish that goal is by being realistic about when kids are most interested in learning about money, specifically how to spend wisely. Because we’re parents, we know that most kids are “all ears” when they want something—and we also know that they are on their phones often. So, we made sure kids could calculate the DIMS SCORE® for possible purchases on their parents’ smartphones in about three minutes to allow for “just-in-time” wise spending lessons.
Are you wondering if you can get your kids into the habit of thinking before buying? The next time, they ask, “Can I get these high-tops?” Ask them what the cost-per-wear will be. The DIMS SCORE® Calculator allows them to figure that out, as well as other helpful metrics, right then and there.
Get comfortable countering people’s assessment of your choices.
Mr. Hallam advocates investing in stock index funds with low fees and then preparing to counter financial adviser objections to those funds. It seems to us that kids who grow up spending with a plan will be game-ready to do exactly that.
What has to be one of the best gifts a young person could ever get? We think it’s the habit of spending just a little bit slower. As Mr. Hallam knows, even parents who aren’t educators can help their kids become financially literate adults—maybe even millionaires!
If you want to join them, learn more by clicking on the blue or green buttons below.
Child Development For Parents For Teachers Inspiring Financial Writers
