BABL 017: Rob Pivnick on Raising Money Savvy Kids

Rob Pivnick on Raising Money Savvy Kids

Rob Pivnick is Associate General Counsel for a major investment firm with a passion for educating young people about money. Our connection was made through some financial education contacts that have promoted each of our books. Because we’re in the same space, I thought Rob would be a fantastic addition to the Build A Bigger Life Podcast interviews.

 

Rob is passionate about two things:

  1. Negotiating
  2. Financial Literacy

 

Pivnick wrote a book called What All Kids (And Parents Too) Should Need To Know About Investing. It’s a very simple way to explain investing to kids, a product of Rob’s desire to teach his kids about investing in the market.

 

Around 7:00, we discussed the philosophies around allowance, how to pay kids for chores done, and what kids should be responsible to pay for. Rob suggests having kids paying 10% of the fees to sports and activities that they’re a part of — it puts skin in the game and keeps them from making excuses about why they don’t want to go to practice, or play in a tournament.

 

At the 11:00 mark, Rob and I discuss investing in real estate and his general feelings about investing in R.E. His advice is trying to time the market is not a great idea, but if you’re looking at real estate as a long term play, it’s a great opportunity to create long term income.

 

The act of knowing you can save and saving a quantity of money is important, and Rob says that there is the business of making wealth and the business of growing wealth. Both require different skills. (15:00)

 

Around the 17:00 mark, Rob talks about his opinion around kids going to college and the investment thereof. “If you’re playing the odds, it’s a smart bet on yourself.”

 

Rob’s kids started the financial education process with his kids early on — as early as 6 years of age. It was about educating them along the way about where their money was going, having conversations every time they made a deposit, invested in the market, etc. (22:00)

 

There is a general idea that there is a family budget in Rob’s household. When the kids say they want something because their friends have it, Rob and his wife will suggest to the kids that “it’s not in the budget”. To the point that the kids now request things they want go in the budget!

 

Mentioned on the show:

Smart Couples Finish Rich by David Bach

Harry Dent — a student of economic cycles

 

Books recommended by Rob:

A Random Walk Down Wall Street by Burton Malkiel

The Prince by Macchiavelli

Any Historical Fiction

 

Find Rob’s book on Amazon HERE.

Or for bulk buys of the book check out: www.whatallkids.com
I hope you enjoyed the interview!