Book Review: Barefoot Investor for Families
An excellent guide for parents on how to instill money smart skills
Scott Pape, the Barefoot Investor is legendary for his ability to connect with young people and now their parents. He brings families together through a simple method of engaging with the basic principles of money management for children.
It is not often that I review a book about finance, which has me in side-splitting laughter as I read a passage to my husband. Now I am not going to spoil, Scott’s thunder, but do pay attention to what he has to say about child-targeted bank accounts. It’s a real “eye-opener”.
I have been a fan of Scott Pape, the Barefoot Investor since I saw the first episode of the CNBC TV show Barefoot Investor about 10-years ago. After watching just one show I knew this young man had a gift to connect with the younger generation and encourage them to respect their money and use it to improve their financial well-being. He really knows how to send the message about good money management skills. These are skills which will stay with them for the rest of their life. Regardless of how much your child is destined to earn in life, instilling these values will ensure your child will always be financially secure.
I don’t think there is anyone who does not know about Scott’s “Mojo Money” – certainly the kids do.
I purchased Scott’s first book, Barefoot Investor, when it was first published and have followed the journey this young single man has taken through to now; where is married with three children and still imparting his wisdom through books, radio shows, and newspaper columns.
To all parents, I say, the greatest gift you can give your child is the ability to understand and manage their money. Many of you will be thinking, “but I can’t manage my own money, let alone give advice”.
That’s OK. The Barefoot Investor will give you some simple guidelines for your children and along the way you too, are most likely to see how to manage your money in a new light.
The Barefoot Investor will introduce you to a 3-minute a week system, where you as a family will have a Weekly Money Meal Night. This is a very precious time where you as a family take time to discuss all types of topics so that your children absorb the culture of sensible money management. They will learn by your example.
The Barefoot Investor will introduce his Barefoot Ten. This is a list of 10-things you must ensure your child does before they leave home. With having attended to each of these, you can wave your child goodbye when they leave home, knowing they have the skills to manage their money and live financially successful lives.
The great thing about what Scott has to say is:
It is not ‘rocket science’ – just common sense.
Your child does not have:
- to go to the best private school,
- have the best grades, or
- the highest paying job.
What they have is Time.
By starting at age 15, when every child should get their first part-time job, they will be hundreds of thousands of dollars better off financially than their peers. Having a 10-year jumpstart on their peers is the key.
With the Barefoot Investor’s help, you can ensure your child has $500,000 more in their Superannuation Account when they retire. You simply must get your child to take 15-minutes to set up their Superannuation Account correctly. The good thing is that they can have this extra money, without contributing one extra cent. They just need to see their superannuation is invested in the best account for them.
This type of advice is priceless.
Scott has some classic statements about money. My favorite is:
The aim of credit providers is to turn your money into theirs.
As a parent, you can guide your child through the pitfalls of credit and instill a policy of saving for what they need.
Yes! You can teach your child how to:
- save for that car
- save for that “Gap Year” and most importantly
- save for that “Home Deposit”.
Not one cent of your child’s hard-earned money will be wasted on loan interest. In addition, he will guide you through the maze of the best type of high-yielding, no fee, savings account.
Most young people see home ownership an “impossible dream”, but with your guidance and using that important ingredient, “Time”, your child will have their own home sooner than you ever thought possible.
Here at Financial Mappers, we believe:
Financial advice should be affordable and accessible to all.
The first step for you and your family is read and follow the recommendations in this entertaining book, “Barefoot Investor for Families”
Disclaimer: Financial Mappers does not have an Australian Financial Services License, does not offer financial planning advice and does not recommend financial products.