The “Wait and See” Phase for Gold is Over

The “Wait and See” Phase for Gold is Over

Notes From the Field By James Hickman (Simon Black)  February 6, 2025

In the year 1025, the Byzantine Empire stood at the height of its final golden age.

Basil II had just died, leaving behind a vast and wealthy empire stretching from Southern Italy to Armenia.  At the heart of its economy was the solidus, a gold coin that had served as the bedrock of Mediterranean trade for centuries. Merchants from Venice to Baghdad had so much confidence in its purity that the solidus became the primary currency for international trade as far away as China.

And this ‘reserve currency’ status allowed Byzantium to project economic power far beyond its borders.

But as the empire declined, so did its currency. Successors debased the solidus to cover military costs, mixing in copper and silver until it was barely recognizable.

By the late 11th century, merchants could no longer rely on the Byzantine government to maintain the purity of the solidus... so traders turned to a new, up-and-coming alternative: the Venetian ducat.

This pattern has repeated itself for thousands of years: reserve currencies come and go, and are eventually displaced by another.

Before the solidus, Rome had set the standard with its denarius, but centuries of inflation and political collapse led to its demise.

After Venice, the Spanish real de ocho became the world’s preferred trade currency, thanks to galleons loaded with New World silver. When Spanish power faded, the Dutch guilder took over, only to be replaced by the British pound sterling, which reigned until two world wars left Britain financially exhausted.

Even the US dollar, during its first two and a half decades as the global reserve currency, was based on gold, until in 1971, the dollar was removed from the gold standard.

The whole concept of fiat currency (i.e. paper currency which relies entirely on trust and confidence of the issuing government) holding coveted reserve status is a new phenomenon.

That means trusting the largest debtor in the history of the world, trusting the US financial system, abiding by the US government’s regulations, and dealing with the whims of their central bank—despite its mismanagement, soaring debt, and reckless policies.

So much can go wrong. And at some point in the future—whether years or decades from now—the US dollar will lose its status as the world’s reserve currency.

No currency has ever held that title forever, and it’s naive to assume the dollar will be the exception.

When that moment comes, future historians will look back in astonishment, wondering how it lasted as long as it did. Because a system built entirely on trust can only survive as long as that trust remains.

And for most of this century, the US government has proven time and again that it cannot be trusted.

We explore this topic in depth in today’s podcast, and discuss how and why gold will be the beneficiary of the dollar’s loss.

We also discuss:

• The short term “wins” possible by using tariffs as a political tool

• The long term damage to the dollar done by threatening allies

• What could replace the dollar as the global reserve currency

• The benefits of holding physical gold (for individuals and central banks)

• Investments that offer exposure to gold’s upside, without paying all time highs for physical bullion

We also mention a gold company that we are profiling this month for subscribers to our investment research newsletter, The 4th Pillar, which focuses on real asset investments.

You can listen to the podcast here.

(For the audio-only version, check out our online post here.)

To your freedom,  James Hickman  Co-Founder, Schiff Sovereign LLC

https://www.schiffsovereign.com/trends/the-wait-and-see-phase-for-gold-is-over-podcast-152055/

How to Buy Gold at Just $1,500 an Ounce

How to Buy Gold at Just $1,500 an Ounce

Notes From the Field By James Hickman (Simon Black)  February 5, 2025

In the late 1990s, the Internet was brand new... and sizzling hot. And most people thought it would bring radical change to the world, practically overnight.

This is a common theme with disruptive technology. Enthusiasts often overestimate the impact of new technology in the short run, and underestimate its impact in the long run. Such is the case with AI today.

But the euphoria over the Internet in the 1990s compelled investors to pour money into Internet startups— companies with no profits, no cash flow, and no real business model.

In fact, a joke emerged from this era which perfectly described many of these infamous dot-coms: “We lose money on every sale, but we make up for it in volume.”

But it didn’t matter. Dot-coms were the meme companies of their day. And even the most ridiculous businesses that claimed to have anything to do with the Internet commanded outrageously high valuations.

Meanwhile, actual real businesses that didn’t have anything to do with the Internet, like boring old ExxonMobil, were completely ignored by investors.

Exxon was a great example because oil prices at the time sat at a modest $30 per barrel, and most people simply assumed that oil would stay cheap forever. So Exxon traded at just 11 times earnings, generated over $17 billion per year, and even paid a healthy dividend to the shareholders who had the foresight to own it.

Common sense eventually prevailed, and all of the pie-in-the-sky dot-coms went to money heaven. And the real businesses, like Exxon, survived the hype cycle and prospered.

Today, there are plenty of super sexy businesses which have become incredibly popular with investors. A lot of them are really overvalued.

And just like Exxon back in the late 1990s, nobody is paying attention to other profitable, extremely undervalued, real asset businesses.

Personally I think oil could get a lot more expensive from here. And there are some really undervalued oil companies to consider, just like there were in the 90s.

But the really obvious example I want to talk about today is gold.

Gold is still hovering near its all time high. And as we’ve discussed many times before, there are a number of catalysts which could drive the price much higher from here.

There has already been a coordinated effort by several countries to de-dollarize.

BRICS— Brazil, Russia, India, China, and South Africa— hold conferences explicitly discussing how to move away from the US dollar. And both the amount of global trade in dollars, as well as the share of American dollars held as reserves by central banks, has been steadily declining.

Central banks and foreign governments own trillions worth of US dollar reserves. And the reason the gold price reached this all time high, is because those foreign governments and central banks traded a tiny percentage of their dollars for gold.

That additional demand was enough to send the gold price soaring to almost $3,000.

So if this anti-dollar trend continues—or even accelerates— we could see $5,000 or even $10,000 plus gold.

These foreign governments and central banks, however, only buy physical gold. They do not buy shares in gold companies.

So while the gold price is near its all time high, gold companies are trading at ridiculously low levels.

Here’s a great example.

The company that we’re profiling in the upcoming edition of our investment research newsletter, The 4th Pillar, is one such undervalued gold business.

It’s a mining company with outstanding properties and a fantastic long term earnings horizon. It operates in an absolutely tier-one jurisdiction with minimal geopolitical risk— i.e. not the Congo or Nicaragua.

Its balance sheet is pristine with no debt. Yet they have a very strong cash position.

Due to their operating efficiencies, their production cost is quite reasonable at around $1,500 for every ounce of gold that they mine.

Yet the market is valuing them at a low, single digit multiple.

I would encourage you to check out our research to find out more.

I think it’s well worth the price of a subscription— especially because right now we’re having a limited time promotion on The 4th Pillar.

The full report on this particular gold company will be sent to 4th Pillar subscribers over the next few days.

To your freedom,  James Hickman   Co-Founder, Schiff Sovereign LLC

https://www.schiffsovereign.com/trends/how-to-buy-gold-at-just-1500-an-ounce-152049/

10 Money Questions I Was Too Embarrassed To Ask

10 Money Questions I Was Too Embarrassed To Ask | Biggest Finanical Mistakes | How To Increase Earnings

Last Updated: August 16, 2022

At age 18 I took out a HUGE college loan… and wasted the leftover money on beer.

At age 19 I got my first credit card… and promptly missed the first payment.

At age 22 I bought my first truck… with an insane interest rate.

Now you may have been born with a degree in finance… but I wasn't – I had to learn everything through the school of hard knocks.  And I was too embarrassed to ask for help.  If I could go back and tell my younger self what to ask… these would be the 10 questions.

1. Am I Being Greedy?

Some of you may think you’re “obligated” to spend. It’s rooted in a belief that saving equals greed. You justify splurges as redistributing wealth. I’m afraid this mindset is warped. Spending less doesn't mean stealing from people don't earn as much as you.

Take my company for example. All the wealth tied to RMRS comes from the value I’ve created. My readers and subscribers find value in the 2000 articles, 700 videos and 200 infographics that my company has made. Advertisers see my content as platforms to promote their products. This value literally comes from nothing. And it's unlimited.

The answer:

No. There’s nothing wrong in finding alternative ways to earn. We must remember that many self-made millionaires these days created value out of thin air. No one was forced to buy their products. People valued them.

2. Can I Afford This Or That?

You receive your month’s pay and feel good. You’re tempted to spoil yourself – perhaps with that motorbike you always wanted? I know you’re checking your balance in the bank. That’s the wrong question to ask.

Obviously most of us would love a nice house and other luxuries. But now’s the time to focus on delayed gratification. It’s not whether you can afford the item in question. It’s really about thinking long-term – seeing more important things ahead.

The answer:

No. Replace the original question with “Could I afford it if I were to pay cash?” This helps you save and set aside money through every “No” that comes about. There’s no need to overthink. It’s automatic. You’re better off with a similar item that's used/secondhand for the meantime.

3. How Many Credit Cards Should I Have?

If you’re part of the majority who struggle with credit card debt, think about it. Wouldn’t life be easier if you didn’t have that many cards? Especially those with high-interest rates?

The desire to save is one thing. Making it happen is a whole different deal. You have to get rid of the obstacles. Less is more.

The answer:

To each his own – it’s you who knows how many credit cards you need to manage your money responsibly. The ideal cards only handle payments when debit cards aren’t accepted. They’re tools for convenience, not for impulse buying. I personally stick with just two.

https://www.realmenrealstyle.com/10-money-mistakes/

https://www.youtube.com/watch?reload=9&v=8n14tPHfHcA&feature=youtu.be

11 Things That Make Your Home an Easy Target for Burglars

11 Things That Make Your Home an Easy Target for Burglars

By Wyatt   May 24, 2024

You might think you are taking every precaution to protect your home and make it as burglar-proof as possible, but guess what? There are things about your home than transform it into a beacon for thieves. And it’s not only about the things that burglars steal, but the risk your family is put at, as a break-in can cause quite an emotional havoc.

With summer just around the corner and people leaving on all sorts of holidays, security experts recommend upping your game in terms of home security measures. That being said, here are 11 things about your home that turn it into an easy target for burglars and some tips on how to make sure intruders stay off your property.

These things attract burglars like flies!

A Dark Home

Many things happen under the cover of darkness. Illicit things in particular. Thieves rely on darkness to hide their illegalities so a dark home is just what they need for that.

To make sure intruders steer clear of your property, keep porch lights on and install motion-detector lights around your house. This will prevent them from trying to find a way in, like an open window. For extra safety, security experts also recommend timers on interior lamps to trick potential burglars into thinking someone is inside.

An Empty Driveway

A vacant home is an open invitation to thieves. But do you know what else spells “Open”? An empty driveway. When there are no cars parked on the driveway, it means there are no people inside the house. In other words, your house is open for grabs.

“In addition to security cues like alarm systems, burglars look for what’s referred to as ‘occupancy cues,’ giveaways that tell them whether you’re home,” warns security and intelligence professional K. Campbell, principal at Blue Glacier Security & Intelligence LLC. “If you go away for even a few days, such as for a long weekend, your home might lack occupancy cues.”

To avoid such situations, ask a family member, neighbor or friend to park their vehicles in your driveway when you’re away, especially if you’ll be missing for a longer period of time.

Unlocked Windows And Open Drapes

Once you’ve picked their interest, burglars will start trying to find ways to get inside your house. Firstly, they will check for the easiest ways in, namely unlocked windows. Therefore, make a habit of closing and locking all windows on the ground floor, whether because you’re going to bed or leaving your home. Second floor windows should also be checked, as they can also be reached by intruders.

Another thing you should do for extra protection is to close the drapes. This way, burglars will not be able to take a peak and discover any expensive objects you might have on display.

Overgrown Lawn And Landscape

A place that seems neglected may be an indication that its inhabitants are not spending that much time there. This means that burglars will have no problem finding the right time to sneak inside for a “free shopping” spree.

TO READ MORE:  https://thehometeam.tv/1088/yahoo/1117354/20006/target-for-burglars/9/

This Trade War Might Be The Straw That Breaks The US Dollar’s Back.

This Trade War Might Be The Straw That Breaks The US Dollar’s Back.

Notes From the Field By James Hickman (Simon Black)  February 3, 2025

It was early spring in the year 1171 AD when Byzantine Emperor Manuel I Komnenos decided to go to war against his much smaller ally-- Venice. And the historical record shows that it was a really bad idea.

The Byzantine Empire was still a vast and powerful state by the late 12th century. But it was becoming obvious to anyone paying attention that they were in serious decline.

The Byzantine treasury was almost always empty. Imperial debt was piling up left and right. Byzantine borders were constantly being invaded by Muslim hordes. And the imperial coin-- the gold solidus-- was beginning to fall out of favor as the dominant currency for international trade.

Perhaps most importantly, there were a great deal of inexperienced or incompetent Emperors who stood by and did nothing while adversaries exploited imperial weakness.

One bright spot in Byzantine foreign relations was with the Republic of Venice; and over time the two cultivated a strong friendship, and enjoyed significant trade and military cooperation. When the Byzantine Empire went to war, for example, Venice would often provide naval and maritime logistics support.

Trade was so strong between the two, in fact, that thousands of Venetian merchants moved permanently to Constantinople.

But it all came to an end in March of 1171. The Emperor very suddenly changed his tune on Venice and started viewing them as rivals who were taking advantage.

To be fair, Venice was definitely a rising power at the time. But they were a pipsqueak compared to the size and strength of the Byzantine Empire… and the Venetians in no way wanted a conflict. They got one anyway.

That spring, Emperor Manuel imprisoned as many as 10,000 Venetians in Constantinople. He also confiscated their assets, properties, and businesses.

The ruler back in Venice (coincidentally known as “the Doge”) tried to negotiate a peaceful, diplomatic solution. But in the end, a war between the two broke out. And while direct military conflict was quite limited, the economic and trade warfare seriously wounded both powers.

In retrospect the long-term consequences were clear: the Byzantine Empire lost a supportive ally, essentially pushing Venice into the arms of Western European powers. The Empire also never quite recovered the lost trade and economic opportunity costs from the war.

That’s because all war-- whether a shooting war or trade war-- is expensive. There are very, very few instances in history in which a nation benefited from prolonged war. In fact, the last guy to consistently wage ‘profitable’ wars was Napoleon… and he understood the key was to end it as quickly as possible.

Maybe that’s the strategy in this new trade war today. Maybe the whole idea is to show people that you’re not afraid to make good on your threats… to show that you’re not bluffing… and that everyone should run to the negotiating table immediately.

Perhaps. But it’s been well-documented that a long-term trade war, i.e. tariffs on goods imported from Canada and Mexico, will be incredibly expensive. Canada sends energy to the US. Mexico sends food. If there are two things that US citizens don’t need to become more expensive, it’s food and fuel.

The rough calculations show that American households will pay a few thousand dollars per year more. Most people can’t afford that, nor are they particularly inclined to try.

The optimists say that America doesn’t need to import any of that stuff, and that “we can produce everything we need at home”.

OK, that’s sort of true. The US has the capability to produce almost everything if it really had to. But to borrow from the great philosopher Chris Rock, “You could drive with your feet if you really had to. But that don’t make it a good f***ng idea.”

Every country, every economy in the world has a finite amount of resources-- workers, raw materials, capital, land, etc. And in a free market, those finite resources are put to their best and highest use… because that’s what generates the most profit, i.e. the most wealth and prosperity.

No one puts resources to work making socks and underwear if they could put those same resources to work developing disruptive technology. And the US economy has that option-- producing goods and services of extremely high value (including technology).

This has been a key driver of wealth in America.

But suddenly having to divert limited resources to something less valuable consequently means… less wealth and prosperity. Bottom line, trying to produce everything at home requires misallocating economic resources into less profitable, less prosperous industries.

And the opportunity cost of doing that cannot be overstated.

There’s another, even bigger problem, though.

The US dollar is already in trouble. Plenty of countries have already started to line up against the dollar; and as we’ve discussed in the past, foreign central banks have started ditching the dollar to buy gold instead.

This is a big problem for the US government; the Treasury Department desperately needs foreigners to keep funding America’s massive budget deficits. And even if the budget deficits miraculously disappear, America still needs foreign nations to hold on to the US government bonds they already own.

Threatening (and then actually following through) with tariffs will only make foreign countries less inclined to own US dollars.

Secretary of State Marco Rubio even admitted this weekend that within five years, “there will be so many countries transacting in currencies other than the dollar that we won’t have the ability” to impose sanctions or tariffs.

Less demand from foreign governments and central banks to own US dollars ultimately means higher inflation and higher interest rates across the board-- including higher mortgage rates. So more expensive food. More expensive fuel. And more expensive housing.

Again, this trade war might be a ploy designed to force everyone to the negotiating table… and perhaps they expect it will be over in a matter of days or weeks. But that’s a risky assumption.

A century ago, the ‘experts’ back in 1914 assumed that World War I would be over in a few months, and that the troops would “be home before the leaves fall from the trees” (according to what Kaiser Wilhelm of Germany reportedly told his soldiers departing for the front line).

This, too, may be long and costly. But even if it's short, declaring war on your own ally could easily create lasting consequences for America by accelerating backlash against the dollar.

To your freedom,    James Hickman  Co-Founder, Schiff Sovereign LLC

https://www.schiffsovereign.com/trends/this-trade-war-might-be-the-straw-that-breaks-the-us-dollars-back-152034/

This Will Likely Be A Really Big Deal For Gold

This Will Likely Be A Really Big Deal For Gold

Notes From the field by James Hickman (Simon Black)  February 4, 2025

Well that was fast.

The smoke had barely cleared on the opening salvo of the Great North American trade war, when all sides called a truce to talk out their differences.

Just as we wrote yesterday, this is exactly what I was hoping would happen. In fact, in a Zoom call that Peter and I had Friday with our Total Access members, we predicted this outcome: that the trade wars were just an elaborate show to demonstrate to the world that America is willing to make good on its threats, and force everybody to the negotiation table.

There may be some short term benefit that comes from this. But as we said yesterday, there will likely be some long term consequences and here’s why:

According to Federal Reserve data, there will be roughly $28 trillion worth of US government bonds maturing over the next four years, i.e. now through the end of 2028.

That’s more than 75% of the government’s $36+ trillion national debt.

This is an absolutely staggering figure, averaging $7 trillion per year for the next four years.

And remember, we’re just talking about the existing debt that is set to mature. It doesn’t even include new debt that has to be issued over the next four years, which could easily be another $7-10 trillion.

This is an enormous problem for the Treasury Department, because they clearly don’t have $28 trillion to repay those bondholders.

Now, usually whenever a government bond matures, the investor might simply roll the proceeds into a new government bond. In other words, the old bond matures, and the investor puts the entire principal and interest into a new bond at whatever the higher interest rate is today.

This alone is going to cost the government a lot of money, because most of the bonds that are maturing over the next four years were originally issued 5, 10, or even 20 years ago, when interest rates were much, much lower.

So let’s do the math: if the government issued $28 trillion in the past at an average interest rate of 3%, but now they’ll have to refinance all that debt at a new rate of 5%, then effectively they’ll be paying an extra 2% per year.

That’s almost $600 billion in additional interest EACH YEAR on top of the $1.1 trillion interest bill that they’re currently paying. But even that might be wishful thinking.

And the reason why is, if you look at America’s public debt, the investors who buy those bonds are split pretty evenly between US entities (the Federal Reserve, American companies, US individual investors) and foreign investors (foreign government, central banks, multinationals).

This is critical to understand: the Treasury Department relies very heavily on foreigners to buy US government bonds and help fund the national debt.

At the moment, most countries around the world have to buy US government bonds simply because the US dollar is still the world’s dominant reserve currency. So they are essentially forced to hold US dollar assets, and Treasury securities are still the most liquid US dollar assets in the world.

Yet for the past several years there has been a significant movement underway by a number of countries to engage in trade and commerce without using the dollar. And this movement is growing.

I mentioned in my letter to you yesterday that the brand new Secretary of State Marco Rubio acknowledged this over the weekend, suggesting that the dollar’s dominance could be seriously diminished within five years.

Facing the constant threat of sanctions and tariffs will only motivate Brazil, Russia, China, India, and even many countries in Europe, to accelerate their diversification away from the dollar, and away from the United States.

The natural beneficiary of that trend will be gold.

We’ve written about this extensively. Gold rocketed to an all time high last year because central banks, and foreign governments, were reducing their dollar holdings.

And think about it. If you’re a foreign central bank and you have $100 billion of US government bonds that are about to mature, what are you going to do?

Are you going to reinvest that entire $100 billion back into a country that might already be threatening you with economic penalties?

Or do you quietly let the treasuries mature, take the money, and find someplace else to invest that $100 billion?

A lot of foreign governments and central banks are going to be giving serious consideration to option two.

But they are going to have to invest that money in an asset that, like US dollars, is widely accepted, and has universal value and marketability around the world.

Gold is one of those assets. And that’s why central banks have been buying so much of it for the past couple of years.

I think there’s an obvious case to be made, given the prospects of tariffs and further trade wars, or even just the threats thereof, they are going to keep buying gold and send the price even higher.

So if you’re interested in hedging against future risks to the US dollar, gold makes a lot of sense.

But on a final note, I’ll point out as I have in the past, that foreign governments and central banks buy gold. They do not buy shares in gold companies.

And right now there is a bizarre financial paradox in that gold is at an all time high, but thriving, profitable businesses which produce gold are trading at absurd discounts.

And we’ll talk about some examples over the next few days.

To your freedom,  James Hickman   Co-Founder, Schiff Sovereign LLC

https://www.schiffsovereign.com/trends/this-will-likely-be-a-really-big-deal-for-gold-152041/

6 Tips To Save Retirees From Financial Disaster

‘Automatic Millionaire’ David Bach: 6 Tips To Save Retirees From Financial Disaster

Ellie Diamond  Sun, February 2, 2025   GOBankingRates

Money expert David Bach, author of “The Automatic Millionaire,” has dedicated his career to helping people achieve financial freedom. His philosophy centers on making smarter money decisions that keep your assets safe.

1. Save More as You Get Older

When CNBC asked Bach in 2018 how much money people should have in retirement savings, he pointed readers to Fidelity Investments’ age-based roadmap. This guideline suggests that a 30-year-old should have one year of their starting salary in savings, then twice their starting salary by age 35.

If you increase that goal by a factor of one every year, you’d have eight times your salary by age 60. Your final goal, Fidelity states, is to have 10 times your salary in the bank by 67.

Bach called this a general guideline, but warned that your target shouldn’t be lower.

2. It’s Never Too Late

As a money expert, Bach has spoken to people whose savings are far below goals like Fidelity’s. Whatever your circumstances, he said, “It’s never too late to start investing, and the best time to start is now.”

His first recommendation is to increase your retirement plan contribution and participate in a 401(k) match with your employer if one is available. The goal is to gradually save 10% to 15% of your income, or more if you need to and are able.

3. Spend Only on What You Value

In his book “The Latte Factor,” Bach wrote about the power of intentional spending. He teaches people that by paying attention to what they spend their money on, they can waste less and save more.

It’s not about giving up the things that bring you joy, he said. It’s about knowing where your money goes and avoiding spending on things that don’t match your values.

TO READ MORE:  https://finance.yahoo.com/news/automatic-millionaire-david-bach-6-140037796.html

7 Mental Money Traps That Keep You Poor

7 Mental Money Traps That Keep You Poor

Crystal Mayer   GoBankingRates

A recent study shows that over 60% of Americans are living paycheck to paycheck. If you are like one of the millions of people struggling to find financial stability, you might be stuck in the wrong mindset. Avoiding certain mental money traps can help you adjust your spending and start saving for your future.

Creating a budget and sticking to it can help you achieve your financial goals, but you will also need to rethink how you spend money. Prioritizing your spending can help ensure that you have money left over each month to invest. If you are tired of seeing a miniscule balance in your checking account, reconsider these 7 mental money traps that keep you poor.

You Need To Spend Money To Make Money

You have likely heard the old adage, “you need to spend money to make money.” While this may be true for startup businesses, it isn’t a good mindset for most people.

Many people feel that they need to live a specific lifestyle, spending well more than they make to give the perception that they are wealthier than they are. Overspending will only leave you frustrated and won’t help you make money.

Almost all money experts agree that the key to wealth is investing. If you want to stop living paycheck to paycheck, take a look at your non-essential spending and start investing. Even small investments can pay off significantly over time.

Retirement Is Far Away

Many young people fall into the trap of thinking that retirement is far away so they don’t need to worry about it. Unfortunately, waiting to start saving for retirement can cost you big. Fidelity Investments recommends that you have at least 1x your salary saved by the time you are 30 and 3x your salary by the time you are 40.

The longer you wait, the less likely you will have the money you need when you retire. The good news is that even if you haven’t started saving, you can start now. The best way to go about it is by meeting with a financial advisor. Make sure you are also taking full advantage of your company’s 401(k) matching if they offer it.

You’ll Be Happy If You Buy Something

https://finance.yahoo.com/news/7-mental-money-traps-keep-120044792.html

7 Experts Share Their Best Money Advice for Kids

7 Experts Share Their Best Money Advice for Kids

Financial Pilgrimage

There are a million things to worry about when raising children. Often, teaching our kids about money doesn’t rise to the top of the list. If your kids are anything like mine, they care about video games, dolls, sports, and many other things.

There is a push and pull when raising money-smart kids. As parents, we want to provide our kids with the best life. Sometimes that means giving them the toy we always wanted as a kid but could never afford. It feels terrific when your kid is happy.

The hard part is thinking through the downstream impacts of giving them everything they want. Handing everything to them will make it challenging to appreciate hard work. How will they learn to appreciate how fortunate we are to live in the United States of America, one of the wealthiest countries in the world? How do we teach them there is more to life than material things?

I’m not sure I have found the correct answers to these questions. Or at least I am still trying to figure them out. I turned to money experts on Twitter to share their best advice for kids. The responses were excellent, and I took a few notes as a parent. So read on for money advice for kids from seven personal finance experts.

7 Experts Share Their Best Money Advice for Kids

Lesson 1: Make Their Money Work For Them

This article from the Interesting Dollar shared a great idea to use birthday money to demonstrate the value of interest. By gifting $300 a year for birthdays (between parents, grandparents, and aunts/uncles), you could demonstrate the growth provided by interest over a relatively short period. This simple exercise can help teenagers delay gratification and better understand how interest works. Below is an excerpt from the article.

“I did the math and thought that if they received $300 a year from age 10 to 17 and 8% interest, they would receive $2,592 on their 18th birthday. Then, each year they would receive the interest check on the balance in the account.”

Lesson 2: Embrace Minimalism

So much of what makes a person successful with their finances as an adult is being intentional. A high income helps, but many people make a lot of money and still live paycheck to paycheck. I love this article from One Frugal Girl about her conversations with her children. It’s not necessarily about depriving your kids of toys but getting them to be thoughtful about why they want something.

“I want them to learn how to use their imaginations to prevent boredom rather than depending on a room full of toys.“

Lesson 3: Use Money to Buy Your Time

 TO READ MORE: https://financialpilgrimage.com/money-advice-for-kids/

6 Life-Winning-Lessons From a “Who Wants to Be A Millionaire” Contestant

Who Wouldn’t Want to Be a Millionaire: 6 Life-Winning-Lessons From a “Who Wants to Be A Millionaire” Contestant

By Financial Imaginer

What would you do if you received a $ 1 million jackpot? How does it actually feel to receive a windfall? What to do with it and how could it impact your life in the short, medium and long run?

Let’s first think about what you could possibly do with a large financial windfall?

– splurge (Sir? The Lamborghini in same gold as the Maybach?)

– take a sabbatical and travel to exotic locations, sipping martinis all day long

– travel to Vegas (all or nothing)

– re-invest in lottery tickets

– buy a house and/or pay-off your mortgage

– invest all into Vanguard ETFs and draw an annual $40,000 forever (Trinity study, 4% withdrawal rate)

– keep calm and carry on

Here’s what a Financial Imagineer would do with a $ 1 million windfall:

Keep calm and carry on!

Keep calm and carry on!

You find this hard to believe?

Looking through all the above options, this clearly appears to be the most boring choice. But hey, I’ve got a rather personal story for you guys today. Let me explain.

Once upon a time, I won a windfall myself.

I wanted to be a Millionaire.

We write the year 2001, my most crazy side-hustling days: During daytime, I was usually studying business administration and economics. Frequently, after sundown, you’d find me baking up to 200 pizzas each night at the first pizza home delivery franchise in my hometown. Saturdays, you’d find me advising clients at a bank counter and Sundays I’d be running the local polling station in our village.

Some wondered if I’d ever catch some sleep.

One evening, I was sitting on our couch watching the Swiss edition of “Who wants to be a Millionaire” on TV3. Somehow, none of the contestants ever seemed to make it past the first 10 questions. It got boring and frustrating. It quickly became painful for me to keep watching. I knew and appreciated the show from abroad and generally liked it because you usually learnt something while watching – infotainment. The entertainment value of the local version was rock-bottom. This tickled a nerve.

Instead of applying the ordinary way, I sent a feedback letter asking them to invite more suitable candidates in order to improve the infotainment value of their show. Little did I know that my written rant would be read and acted upon. Before I knew it, we – my then girlfriend and myself – got invited to participate as contestants at the TV show “Who Wants to Be a Millionaire”.

Turn sound on, click “play” and listen as you read on!   https://www.youtube.com/watch?v=OYVAxLJE1ww

TO READ MORE: https://www.financial-imagineer.com/who-wouldnt-want-to-be-a-millionaire-5-life-winning-lessons-from-a-who-wants-to-be-a-millionaire-contestant-for-anyone/

The ‘Hermit’ Savings Rules & 8 Frugal Tips for Today’s Economy

The ‘Hermit’ Savings Rules & 8 Frugal Tips for Today’s Economy

Cindy Lamothe   Fri, January 31, 2025   GOBankingRates

When your personal finances combine with your personal space, your spending habits and savings account might be working a bit more harmoniously too. Consumer practices across the world have been altered significantly over the past few years — for obvious reasons and otherwise — in what economists have dubbed “the age of the hermit consumer.”

 “For ‘hermit’ consumers, it can be really easy to make impulse purchases and overspend because of how easy and convenient shopping online is,” said Carter Seuthe, CEO of Credit Summit Consolidation. “Something that can be helpful to maintain a more frugal budget is just to define your expectations and priorities when it comes to the amenities you have.”

Whether it’s how you approach your visit to the grocery store or price-matching your favorite online retailers, the how, when and where you swipe your credit card has simply changed. If you embrace the hermit lifestyle and prefer your saving and spending to be done in a vacuum, below are some expert frugal living tips to thrive in today’s economy.

Embrace a DIY Mentality

“DIY is my new favorite hobby,” said Andrei Vasilescu, co-founder and CEO of DontPayFull. “It’s cost-effective, and YouTube is a great teacher. About 50% more people are getting into DIY now.”

Syed Lateef, business coach and CEO of SyedBNB, agrees. “We can all see it,” Lateef said. “The focus has shifted towards a more home-oriented lifestyle, and I can personally say that more people are embracing do-it-yourself (DIY) activities.”

He said this is a good thing because mastering basic skills for home and car repairs can lead to considerable savings. Simply put, it’s better to invest your time than a third of your paycheck every time you need some general maintenance or repairs done.

“Nowadays, the hundreds of online tutorials and resources makes it easier than ever to learn and perform these tasks ourselves,” he said, “reducing the need to hire professionals.”

Save Money by Cooking at Home

“The driving force behind the hermit economy isn’t entirely clear,” Lateef said. He said it could be due to the lingering hesitation for close-contact services, the increase in remote work or a shift in social values. Instead of dinner and a movie out, you can now meal-plan and binge on your favorite streaming service.

“What’s obvious, though,” he said, “is that consumers are now more inclined to spend on home-centric activities.”

As a result, he said, many followers of the FIRE (financial independence, retire early) movement have come to realize that frequent dining out can be quite costly. So, frugal individuals are embracing the art of cooking at home, experimenting with budget-friendly and nutritious meals.

He added, “Hermit consumers save money but also encourage healthier eating habits.”

TO READ MORE:    https://www.yahoo.com/finance/news/hermit-savings-rules-8-frugal-140043078.html