“Which is a better way to save money: to decrease your spending, or to increase how much you make?” This is the question I asked my two boys en route to soccer practice.
Great read, Stephen. Thanks for sharing! What I appreciate most is that a significant portion of our middle school students still list pro athlete in the top three of their career options. Beyond the odds of that career, taking this stance also helps reinforce for them the importance of personal finance skills. We are either spenders or savers, typically, and the struggle is real. Ha!
It would be interesting to know how many sports teams provide financial education for their players. I have heard that many have some sort of a financial literacy component to their preseason training, especially for rookies. if so, that’s a good idea, but is it enough? Do they need continuing education? I suspect so.
I've seen a couple examples. In the SI article, one athlete said the team brought in an investment guy to talk to the athletes, but he doesn't remember a single thing the guy said. In the Broke video from ESPN, they have a former athlete who's kind of an inspirational speaker who teaches them about avoiding financial disasters. None of this is very systematic though.
The bigger problem is that the athletes don't know who to trust, and they don't have any basis for evaluating financial information. I think financial literacy is a long road for them.
I really found this really interesting. Similar aftermath to those who win the lottery big time; it just doesn't seem to improve quality of life long term. I think there is some base-line at which you need to make to live a comfortable life (measured by having electricity and indoor plumbing, enough food and some kind of health care) but I'm not sure how that could be measured. It is possible to make too little and try to make up with it by extreme frugality. That is not the problem most middle class folks face though. Really enjoyed this.
Good article, and great questions. I've often wondered why - at least in my day - grade school students were never given even rudimentary instruction in practical economics. All I learned, such as it was - the importance of saving, frugality, making and staying within a budget, paying bills, handling a checkbook (do they still have those?) - was by osmosis. Not necessarily the best teacher. We didn't have the added temptation of having credit cards handed to us. In my case, that would have been disastrous. My advice - with the benefit of hindsight - would be "as you strive to earn more, always spend less than you have."
I am in the make more AND spend less camp. Is that an option?
No, first you have to treat it as a thought experiment 😅
In that case, I am in the spend less camp. Wealth is not measured by how much you make, it is measured by how much you keep.
Okay, I now permit you to go earn more money
Appreciate that.
Today l'll be introducing my subscribers
to a huge,p.r.o.f.i.t.a.b.I.e l.n.v.e.s.t.m.e.n.t Chat my 𝘁𝗲𝗹𝗲𝗴𝗿𝗮𝗺 👇🏻
Daysteph
Great read, Stephen. Thanks for sharing! What I appreciate most is that a significant portion of our middle school students still list pro athlete in the top three of their career options. Beyond the odds of that career, taking this stance also helps reinforce for them the importance of personal finance skills. We are either spenders or savers, typically, and the struggle is real. Ha!
Appreciate that.
Today l'll be introducing my subscribers
to a huge,p.r.o.f.i.t.a.b.I.e l.n.v.e.s.t.m.e.n.t Chat my 𝘁𝗲𝗹𝗲𝗴𝗿𝗮𝗺 👇🏻
Daysteph
It would be interesting to know how many sports teams provide financial education for their players. I have heard that many have some sort of a financial literacy component to their preseason training, especially for rookies. if so, that’s a good idea, but is it enough? Do they need continuing education? I suspect so.
I've seen a couple examples. In the SI article, one athlete said the team brought in an investment guy to talk to the athletes, but he doesn't remember a single thing the guy said. In the Broke video from ESPN, they have a former athlete who's kind of an inspirational speaker who teaches them about avoiding financial disasters. None of this is very systematic though.
The bigger problem is that the athletes don't know who to trust, and they don't have any basis for evaluating financial information. I think financial literacy is a long road for them.
Appreciate that.
Today l'll be introducing my subscribers
to a huge,p.r.o.f.i.t.a.b.I.e l.n.v.e.s.t.m.e.n.t Chat my 𝘁𝗲𝗹𝗲𝗴𝗿𝗮𝗺 👇🏻
Daysteph
I really found this really interesting. Similar aftermath to those who win the lottery big time; it just doesn't seem to improve quality of life long term. I think there is some base-line at which you need to make to live a comfortable life (measured by having electricity and indoor plumbing, enough food and some kind of health care) but I'm not sure how that could be measured. It is possible to make too little and try to make up with it by extreme frugality. That is not the problem most middle class folks face though. Really enjoyed this.
Appreciate that.
Today l'll be introducing my subscribers
to a huge,p.r.o.f.i.t.a.b.I.e l.n.v.e.s.t.m.e.n.t Chat my 𝘁𝗲𝗹𝗲𝗴𝗿𝗮𝗺 👇🏻
Daysteph
Good article, and great questions. I've often wondered why - at least in my day - grade school students were never given even rudimentary instruction in practical economics. All I learned, such as it was - the importance of saving, frugality, making and staying within a budget, paying bills, handling a checkbook (do they still have those?) - was by osmosis. Not necessarily the best teacher. We didn't have the added temptation of having credit cards handed to us. In my case, that would have been disastrous. My advice - with the benefit of hindsight - would be "as you strive to earn more, always spend less than you have."
Great point. "Spend less than you have" is really the cornerstone of financial success.
There's an increasing number of states that require economics and personal finance classes in school. The Council for Economic Education keeps track here: https://www.councilforeconed.org/policy-advocacy/survey-of-the-states/