How to catch my 22 y.o.'s attention about ER???

[Calgary_Girl]

I would say talk to your children about FIRE if they truly show an interest in it (without their eyes glazing over) .

As for myself, I was always interested in FIRE and I opened an RRSP (Canadian equivalent of a ROTH) when I was 17 .

 

[kombat]

I opened an RRSP (Canadian equivalent of a ROTH) when I was 17 .

Minor point of order: The Canadian equivalent of a Roth IRA is the TFSA. The closest equivalent to a 401(k) is the RRSP (although it doesn't need to be employer-sponsored).

I tend to agree with the old adage that you can lead a horse to water, but you can't make him drink. I think setting an example is the best approach, and if they express an interest, be ready with reading recommendations. Encourage questions, and focus on how much more relaxing and enjoyable life is, now that you're FI.

 

[Jay_Gatsby]

Minor point of order: The Canadian equivalent of a Roth IRA is the TFSA. The closest equivalent to a 401(k) is the RRSP (although it doesn't need to be employer-sponsored).

I tend to agree with the old adage that you can lead a horse to water, but you can't make him drink. I think setting an example is the best approach, and if they express an interest, be ready with reading recommendations. Encourage questions, and focus on how much more relaxing and enjoyable life is, now that you're FI.

To add to this wisdom. Keep an open line of communication regarding money. Most importantly, do not be judgmental about spending. If your son doesn't affirmatively ask for advice, you can occasionally offer some advice using the phrase "Do you mind if I make a suggestion?" Then follow up with your advice - being careful not to criticize the choice your son initially made - and closing with "but it's your money and I'm sure you'll do what's right for YOU." Essentially, a soft-sell that allows your son to come to the conclusion on his own.

 

[kaudrey]

As my dad did with me, you can talk about investing and saving for a rainy day without going right to an ER discussion. Starting the savings habit at soon as you are in the working world is something every 22 year old should be taught, IMO, even if there isn't a defined long-term goal. Also, since he asked you, he is obviously open to the conversation. Good for him, and you!

As soon as I graduated college, my dad told me I should invest as much as I can in the TSP, and save outside of it for emergencies. Of course, my parents lived their whole lives below their means, and it rubbed off on us kids, so it wasn't really an issue. I opened a Schwab account at 21, and I've been investing in that and the TSP for 20 years. At 21, I wasn't thinking about where I would be at 41, but I knew that saving consistently would give me a level of financial security that was important to me.

 

[Rustward]

The great irony, of course, is that you have to be extremely diligent, disciplined and hard working to become a self-sustaining lazy person. I'm sure there is humor to be found in that statement, somehow... I'll let you know if I see it, 25 years from now.

Maybe I'm weird, my GF tells me that my mind has aged twice as fast as the rest of me...

... and 25 years from now if she is still telling you that your mind has aged twice as fast as the rest of you . . . you will realize what a compliment that is.

 

[Jay_Gatsby]

... and 25 years from now if she is still telling you that your mind has aged twice as fast as the rest of you . . . you will realize what a compliment that is.

Funny, but I take his gf's statement as a bit of a warning - don't focus so much on FIRE that you forget you're young and can pretty much do anything at age 25. While its wise to save, being spontaneous (e.g., whisk her off on a romantic trip, but don't tell her where she's going) will keep her far happier than knowing that you'll be able to retire early.

 

[SunGuy]

23 myself.

Been interested in finance as a lifestyle ever since I started working 5 years ago.

Had to stop school and work for a few years only, but will be able to start up at least part-time schooling again this fall.

Have slow progress since I have to pay for classes myself.
But hopefully will be able to get into a job that will offer help to go school etc.


I want to be a financial advisor, and specifically in addition to other degrees receive the Registered Investment Advisor designation.

I am the only person IRL my age that I have ever met really that is interested in this type of stuff.

I enjoy talking with old people about this stuff, and I get a kick out of them being blown away by the fact that I like this stuff as a high school student(when I first started talking about this stuff).

Most of the middle-aged people I know besides my parents don't have much to speak of in terms of retirement accounts etc. But to their credit most of them do not have debt.

This subject is a very foreign thing to most Millennials (20-somethings)
but is something that they need to take very seriously.

I try to tell most of them to consider Social Security as something they will just talk about as a part of their kids history books, and to not count on any help.

I also try to help them understand the importance of using their youth and time they have as well as the vast resources within the Internet to aid them in learning what they need to do.

I have helped many start investment accounts/IRAs.

I tend to recommend Sharebuilder since it is the one I use, but most of it is just a way to show them the benefit of starting account and keeping up with the discipline of investing.

Even though most don't want to do much now, I have hope for them that they see the problems within the economy/political happenings and will seek more out as they get older and more established in jobs.

They have all expressed the desire to seek me out over the years to help them put their money to use and help them with where to go etc.

I don't really want to be the one personally handling their accounts, as I do not wish to jeopardize our friendship. But will help them get great help.

 

[Joshua]

I am not sure what you can tell someone that will have any solid outcome. When I was a teenager, I was already fired up about saving, investing, buying vs. renting, income streams, etc. And then... life happened, and bit by bit I drifted away from that until I was paying 1/4 of my pay every week just to extend the due date on pay-day loans until next week... when I'd pay another chunk of money to extend them again...

Then I got a better paying job, ditched the loans, and started it all over again with credit cards. Hundreds of dollars a week went down the drain paying interest and penalties on stuff I had bought months ago. I couldn't even remember what the debt was for, but I still had to cut a check to pay off just enough to get by until the next month. Anytime I made some headway on our debt, an "emergency" would come up, and we would promptly max out all of our credit again.

Why did it happen? It's not because I lost the desire to have money! It's not because I had a head injury and forgot how to do compound interest calculations or how to work out a savings plan on an Excel spreadsheet. It happened because, somewhere down the line, I decided that I was a worthless person who had to buy the affection of others or risk being alone for all my life.

Deep down, I always knew it was the wrong thing to do, but that just reinforced my negative outlook - after all, who but a REAL screwup keeps doing something wrong when he knows better? That HAS to be the sign of a loser... so I guess I better keep paying for all this stuff I can't afford to distract people from just how big a loser I am...

It was impossible to say "no" to people. What if they didn't like me? What if she left me? What if...? What if...?

Despite all my hard earned knowledge from my teenage years, gathered from reading investment books and making an almost fanatic study of internet sites like this one, I ultimately failed to put any of it to effective use.

So, knowledge doesn't always do much good, no matter how much of it you have or how early in your life it comes to you. You have to have the strength to use it, too, and not fall into the cycle of self-defeat that other people, who have no cares about the future, will do their best to drag you into.

 

[Luckygem]

Wow, great advise from everyone. It's good to see that you seem to be advising your kids on their finances at an early age. I'm sure they will thank you for it later.

 

[Eager Beaver]

So, knowledge doesn't always do much good, no matter how much of it you have or how early in your life it comes to you. You have to have the strength to use it, too, and not fall into the cycle of self-defeat that other people, who have no cares about the future, will do their best to drag you into.

Your statement really speaks to me. I tend to operate under the assumption that my knowledge will lead to resolve when times are tough, no matter what happens. Stories such as this, coupled with some of my own prior mistakes, make me less confident that this will be the case.

Indeed, I doubt my resolve without the support of those closest to me and without a potential support group for consultation when things don't go my way. To that end, I feel very grateful for this board. I trust many members here to know the right path.

I agree, knowledge itself is nothing without resolve and a backup plan. Parents can teach the first, life will eventually teach you the value of the second.