Smart, not Spoiled: The Seven Skills to Master in Childhood with Chad Willardson | PoP 653

A photo of Chad Willardson is captured. Chad Willardson is the President and Founder of Pacific Capital, a financial management business based in Corona. Chad Willardson is featured on Practice of the Practice, a therapist podcast.

How comfortable are you talking about money with your children? Have you heard of opportunities spreadsheets? Why is generosity an important principle to teach your children?

In this podcast episode, Joe Sanok speaks with Chad Willardson about how to equip your children with strong financial principles.

Podcast Sponsor: Pillars of Practice

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Meet Chad Willardson

A photo of Chad Willardson is captured. He is a financial advisor and founder at Pacific Capital. Chad is featured on Practice of the Practice, a therapist podcast. Chad Willardson is the President and Founder of Pacific Capital, a financial management business based in Corona. He is a certified member of the National Ethics Association and serves clients as a Certified Financial Fiduciary®, entrusted to manage money for families and businesses. Before founding Pacific Capital, he spent nine years at Merrill Lynch where he ranked in the top 2% of over sixteen thousand financial advisors nationally.

Mr. Willardson has been featured in the Wall Street Journal, Forbes, U.S. News & World Report, Investment News, Yahoo Finance, Inc., NASDAQ, NBC News, Entrepreneur Magazine, and the California Business Journal. “He is also the best-selling author of two personal finance books, “Stress-Free Money” and “Smart, Not Spoiled.”

Visit the Pacific Capital website and connect with them on Facebook, Instagram, Twitter, Youtube, and LinkedIn.

Connect with Chad on Instagram and LinkedIn.

In This Podcast

  • The Seven Skills to Master in Childhood
  • “Learn to earn”
  • “Invest early and often”
  • “Talking taxes”
  • “Giving generously”
  • Chad’s advice to private practitioners

The Seven Skills to Master in Childhood

1 – Invest early and often

2 – Borrow wisely

3 – Know your cashflow

4 – Talking taxes

5 – Learn to earn

6 – Protect who and what you care about

7 – Give generously

“Learn to earn”

Create a spreadsheet of opportunities that is age-based, depending on how old your child is.

The spreadsheet of opportunity has various household tasks, and even neighborhood tasks, that have points associated with them. The kids get to decide how much they want to do, and how many points they want to earn, and they can redeem the points for money. (Chad Willardson)

Children can redeem these accumulated points for:

  • money
  • extracurricular activities
  • rewards

This opportunity spreadsheet puts the responsibility on them. They have a chance to decide how much effort they want to put in.

If the children want to earn money or receive a new gadget, they understand that they have to put in the work to earn that reward, and then they can appreciate that their hard work paid off.

We have some blank spaces on the spreadsheet that say, “see a need, fill a need”. [The kids] can come to mom and dad and say, “hey, I see that we might need this kind of a project done. I think it’s going to take me three hours, and I think the value should be $25”. We’ll negotiate back and forth and I think that’s a great business experience for them. (Chad Willardson)

This mindset encourages them to look for solutions instead of waiting to be told what to do.

“Invest early and often”

Teach children the value of investing at a young age because it will pay off so well for them as they get older. Chad recommends that any child older than 10 years should open a Roth IRA account.

Entrepreneurs can “hire” their kids into their company, put them on their payroll, and have them work towards a 401K.

This gives great tax benefits for the entrepreneur and great lessons for the child about working, earning, and investment.

Investing is just delayed consumption. Teaching these kids that they don’t have to consume everything they earn instantly and that they’ll have much bigger benefits. (Chad Willardson)

Investment teaches patience, delayed gratification, and how to work with a growth mindset.

“Talking taxes”

You pay taxes on any transaction that you make, so in some ways, it is your biggest expense. Giving your child a basic understanding of what tax is can be beneficial to them.

When they are old enough, sit down and go over what tax is on a paystub, and do your tax returns with them so that they can begin to familiarize themselves with the concepts.

“Giving generously”

Children are growing up in a comparison world nowadays due to social media and consumption.

Teach kids from a young age that you share, give, and help those around you, and that the world has a base in kindness and giving, not just in gain.

Get kids involved in charitable work in the community. When traveling, take the children with you for a day or a half-day of charitable work in the new country that you are in.

Instill the value of giving and the abundance mindset, your children will have a healthy relationship with money that will last them forever.

Chad’s advice to private practitioners

Money can be stressful if you are not prepared and not intentional. Be clear-minded with what you want so that you can make a positive impact.

Books mentioned in this episode:

Useful Links mentioned in this episode:

Check out these additional resources:

Meet Joe Sanok

A photo of Joe Sanok is displayed. Joe, private practice consultant, offers helpful advice for group practice owners to grow their private practice. His therapist podcast, Practice of the Practice, offers this advice.

Joe Sanok helps counselors to create thriving practices that are the envy of other counselors. He has helped counselors to grow their businesses by 50-500% and is proud of all the private practice owners that are growing their income, influence, and impact on the world. Click here to explore consulting with Joe.

Thanks For Listening!

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