1. Teach Kids Smart Money Habits Early

According to Ric Edelman, the best time to start teaching money management is when your kids are young. Use a simple system: if your child earns or receives money, split it into four parts:

Spend a little right away (for fun)

Save a little for a big goal (like a bike or tablet)

Give a little to charity (to instill generosity)

“Tax” a little (to mimic real-world income taxes)

Here’s the twist: that tax money isn’t really gone. You secretly save it in a high-yield account for a future expense like college or a first car. It’s a clever way to teach responsibility while also funding their future.

2. Maximize Your 401(k) But Don’t Stop There

Ric reminded viewers that participating in your workplace 401(k) up to the employer match is the bare minimum—you should aim to contribute the maximum allowed if you want real retirement security.

But don’t stop at retirement accounts. Saving outside of a 401(k) builds flexibility and helps you reach other goals. Historically, the S&P 500 has returned just under 10% annually since 1926. So, if you’re diversified and patient, compound growth will reward you. Just don’t assume 12% returns. Ric recommends planning around 6%-9% to stay grounded.

3. Should You Refinance Your Mortgage? Maybe

A caller asked if refinancing a 15-year mortgage to a 10-year term makes sense. Ric countered with a surprising suggestion: consider refinancing to a 30-year term instead. Why? Lower monthly payments = more cash flow. That extra cash could be invested for 10-15 years and potentially grow faster than your mortgage savings. You can always pay the loan off early if you want but this way, you have options.

4. Choosing the Right Financial Advisor

Ric was blunt: “Your advisor isn’t there to beat the market. Their job is to help you reach your goals.” That means your advisor should ask about more than just investments. They should understand your income, debts, risk tolerance, and long-term vision.

If they’re focused only on recent performance or pitching high-commission products, that’s a red flag. You need someone who can guide you on everything from taxes to mortgages to employee benefits.

5. Cash Value Life Insurance? Not for Everyone

One woman called in about her 22-year-old son’s $10,000 in cash value from two whole-life insurance policies. Her advisor recommended using it to buy a universal life policy worth $180,000.

Ric’s reaction? Fire the advisor.

Why? Her son doesn’t have dependents, so life insurance isn’t a priority. That cash should be invested in mutual funds or ETFs instead, where it can grow without the hidden fees and commissions that come with permanent insurance products.

6. Michelle Singletary on Tough Love and Gratitude

Michelle Singletary, personal finance columnist and author, shared wisdom from her grandmother, who raised five grandchildren on a $13,000 income. No debt. Bills paid on time. Mortgage-free by retirement.

Michelle enforces the same financial discipline with her kids limiting their clothing budgets, teaching them to save, and refusing to fund entitlement. “Live on less than you make,” she says, “and you’ll always have peace of mind.”

7. Entitlement Culture Is Costing Us All

Michelle warned that the need to “keep up” with others clothes, tech, cars leads to overspending and dissatisfaction. The solution? Shift your mindset from scarcity to gratitude. Instead of striving for more, appreciate what you already have.

This isn’t just about budgeting it’s about finding contentment and raising kids who aren’t caught in a cycle of consumerism.

8. Don’t Fall for Debt Elimination Scams

Desperate to get out of debt? Ric warned against companies offering quick fixes. If a firm promises to wipe out your debt fast or charges upfront fees run.

Instead, turn to trusted resources like nonprofit credit counseling agencies, some of which are listed on truthaboutmoneytv.com. Debt is real, but with patience, planning, and trustworthy help, it’s manageable.

Bottom Line

Whether you’re just getting your kids started with money or rethinking your own retirement strategy, the principles shared in this episode are timeless: save early, spend intentionally, and stay skeptical of flashy promises. From teaching taxes with allowance to choosing the right advisor, Ric Edelman and Michelle Singletary showed that financial wisdom isn’t about being flashy it’s about being prepared.

All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.

Neither Edelman Financial Engines nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.

The post From Piggy Banks to Portfolios: Ric Edelman’s Guide to Financial Habits for Every Generation appeared first on ROI TV.

The Hidden Challenges of Wealth

Raising children in a financially secure household presents a unique challenge: how do you teach the value of hard work when the struggle to survive is removed? Many wealthy parents find themselves manufacturing adversity—making their kids earn things others might receive for free in order to instill discipline, gratitude, and financial literacy.

Today’s financial landscape also looks very different from 20 or 30 years ago. With easy access to credit, one-click purchasing, and curated lifestyles on social media, today’s kids face a whole new world of instant gratification and comparison. If not managed intentionally, these influences can leave children unprepared for financial independence.

Building Financial Resilience in Children

Teach Gratitude: Helping kids recognize and appreciate their financial advantages fosters humility and a healthier relationship with money. Gratitude can be taught through conversations, family volunteering, or simply modeling appreciation in daily life.

Assign Chores and Responsibilities: Giving kids age-appropriate responsibilities at home helps them understand the value of work and contribution. This sense of accomplishment becomes a foundation for future self-reliance.

Say “No” Sometimes: In a world where saying “yes” is easy, saying “no” is powerful. Boundaries teach kids that money is finite and not every want can or should be fulfilled immediately.

Practice Patience: Teaching kids to wait and save for something they want builds critical skills in delayed gratification—an important trait for long-term financial success.

Let Them Face Disappointment: Shielding children from setbacks robs them of the opportunity to grow. Allowing them to experience disappointment builds resilience, emotional intelligence, and confidence in their ability to overcome challenges.

Strategic Parenting for Financial Literacy

Parents must strike a balance between providing support and allowing natural consequences. Avoiding the “snowplow parent” trap clearing every obstacle in a child’s path helps them become adaptable and financially independent adults.

You don’t need to give your kids formal finance lessons to raise money-smart children. Small actions go a long way:

• Create “no spend” months.
• Talk about budgeting for vacations.
• Let kids earn money for extras.
• Involve them in charitable giving decisions.

When kids learn both the tactical (how money works) and emotional (why it matters) aspects of finances, they gain the tools needed for long-term success—no matter how much money they start with.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post Raising Financially Resilient Kids in Wealthy Families appeared first on ROI TV.

2. Teaching Kids About Money Early
Children can begin learning financial principles as early as age three. Ric recommends introducing money through fun, hands-on experiences like counting coins, reading picture books about money, or using supermarket trips to explain choices and budgeting. Giving children allowances segmented into categories like spending, saving, giving, and taxes helps instill real-world financial habits. For instance, withholding a portion of their allowance as “taxes” and saving it toward a long-term goal (like a car) teaches deferred gratification and responsible money management.

3. Embracing Global Investment Opportunities
Investing internationally is a smart way to diversify your portfolio beyond U.S. markets. Ric pointed to BRIC nations (Brazil, Russia, India, China), as well as Western Europe and Japan, as opportunities. You can invest abroad via individual stocks traded as ADRs (American Depository Receipts) or through ETFs and index funds that represent foreign economies. However, be mindful of sovereignty and currency risks. Depending on your financial profile, international investments might make up 5%-20% of your total assets.

4. Avoiding Variable Annuities in Retirement Accounts
Variable annuities often promise guaranteed income streams but come with high fees and tax redundancy when placed inside retirement accounts like IRAs or 401(k)s. Ric cautioned against this strategy, especially for younger investors like 30-year-old Mike. Tax-deferred accounts already provide growth without taxes until withdrawal, making annuities unnecessary and costly. Long-term market investments typically offer better growth potential with fewer fees.

5. Why Life Settlements Aren’t Worth the Risk
Life settlements involve buying life insurance policies from individuals, betting on their life expectancy to collect death benefits. Ric strongly advised against these investments, calling them controversial and morally questionable. They’re not only risky but can distort actuarial data and raise premiums for all policyholders. Many states have already banned the practice due to ethical and financial concerns.

6. Financial Wisdom from Nolan Ryan
Baseball legend Nolan Ryan shared insights on his shift from athlete to executive with the Texas Rangers. Managing a Major League team introduced new challenges—especially balancing rising player salaries with team sustainability. He encouraged athletes to think beyond their playing years, seek financial advice early, and reduce off-field stressors that could affect performance. His message: take advantage of unique income opportunities now, but plan responsibly for the future.

7. Making Professional Sports Affordable for Families
Nolan also addressed fan affordability, noting the Rangers’ commitment to keeping baseball accessible. Programs like kids’ free admission, dollar hot dog nights, and family discounts help ensure that fans of all backgrounds can enjoy games. It’s not just about tickets—it’s about delivering a full, satisfying experience.

8. Lease Smart: Negotiating Car Features
Ric reminded listeners that leasing a car means renting, not owning. Unfortunately, many buyers overpay by not negotiating the cost of extras like GPS or Bluetooth, even though they won’t own them at lease-end. Always negotiate the total cost of the vehicle with options before agreeing to a monthly lease price. This ensures you’re not paying full price for features you’re essentially borrowing.

Takeaways

From teaching kids about money to investing internationally and rebalancing portfolios, smart money management requires awareness, discipline, and continuous learning. Avoid high-fee traps like variable annuities in retirement accounts and steer clear of morally ambiguous investments like life settlements. Instead, focus on proven strategies for wealth creation, financial education, and smart spending.

All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.

Neither Edelman Financial Engines nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.

The post Smart Financial Strategies for Building Family Wealth appeared first on ROI TV.