#220 - How To Make Your Kid A MILLIONAIRE

Five books on money that will help you turn your child into a millionaire. Book number one. My dad came home once with a big wad of cash. He dropped it on the table and he said, hey, guess how much money's in there? My day back then, there was no easy way to invest in stocks. There was no fun apps like there are now, which I'll share with you in a second. To help your children become millionaires early is Sales is how you make money. Sales, sales, sales, sales, sales.

And sales in most families is a dirty word. What are the five steps I'm gonna teach you right now to then teach your children or do with your kids for them to literally become a millionaire? I'm Lloyd James Ross, seven figure investor and entrepreneur and I've helped thousands of business owners and professionals turn financial stress into success. If you're stuck in old money habits, overwhelmed

by investing or unsure where to start, this is for you. I'll give you the mindset and strategies to take control, grow your wealth and achieve financial freedom. It's time to make your money work for you. You watch your kid grow up and a thought crosses your mind. Will they struggle with money like most people? You want to have financial security to avoid paycheck to paycheck traps, but no one ever taught you how to build wealth young.

And you look around, some kids inherit businesses, investment portfolios, and financial headstart, while others spend decades trying to figure it all out on their own. The difference, their parents set them up early. Most people assume you have to earn millions to raise a millionaire. But the truth is, it's not about how much you make, it's how much you

use your time to compound your skills and money. The wealthy plant the seeds early, investing in assets, setting up tax free accounts, teaching their kids about how money actually works. Meanwhile, the average parent tells their kids to save money, but never really showing them how to make it or grow it because they don't know themselves. They send them to school where they learn how to do algebra and history, but nothing about investing

money or wealth creation. So the kids repeat the cycle starting from zero instead of leveraging what time and smart investing they could have, right? So here are eight ways You can educate your children about money. But stick around because after this, I'm going to show you exactly how you can make them a millionaire in five simple steps starting today. All right, so let's go through the eight ways of actually helping your kids learn about money. All

right. Way number one, you've got to talk about it. You can't make it a taboo topic. I remember one time at our place, my dad came home once with a big wad of cash. He dropped it on the table and he said, hey, guess how much money's in there? And he may have sold one of our cars or something like that, but he took it in and he showed us it by dropping it in front of us. And we kept saying, oh, I bet there's a million dollars there. We're only kids. It's this

or that or that. And it was like 12,000 bucks. But it was like money was there and it was okay to talk about it. And he would often ask me on walk, you know, what do you what do you want to be when you grow up? Who do you want to become? And so I would say things like a big hotel manager of a chain is like, yeah, that's awesome. We knew about money. It was not a taboo topic. And it was talked about a lot. So the first step

is to really talk about it, bring up to the surface. It's totally it's much better to talk about it than hide it. Because money is a skill, and if you don't talk about the skill, you won't get better at it. So I do remember, you know, most people grow up in households where they say, money doesn't grow on trees, money is the root of all evil, money doesn't buy happiness. Where in my house, it was like, my dad used to say to me when I was growing

up, you know, money makes you handsome. It's not the only thing, but it's way out there with oxygen, and some funny quips like that. So, you know, money was always on topic, and it was never off topic. It wasn't in our faces by all accounts, and it wasn't like the be all and end all, but it just definitely wasn't taboo, all right? The second way to help your child learn about money is of course, them reading books on

money. You don't read the books on money. then they're not gonna read the books on money because children will do 100% of what you don't do and 50% of what you do do. So if you're reading books, there's at least a chance they're gonna say, hey, what's that book about? Or if they don't listen to you, which is probably common, give the book to a neighbor or give the book to someone else they respect and they'll listen to and then let them give them the book. So it's not you,

okay? It's called the neighbor principle. A kid will listen to their neighbor before they listen to you, right? So get the neighbor to give them the book instead of you giving the book on money. Some of the cool money books that I read early, I mean, I learned about money from a grade 11 English teacher, Mr. Barber. I talk about it in that book there. He actually was the one that told me about books like Rich Dad Poor

Dad, Richest Man in Babylon. I was in grade 10 or grade 11 English class and he said, gentlemen, When you leave school, make sure you read these two books. And what's really awesome about that is the co-author of Rich Dad Poor Dad, Sharon Lecter, has endorsed our brand new book, Become Time Rich. And so that's super exciting. So thinking about school when I learned about the book she wrote, and now she's endorsing this book here. It's been this awesome journey, but I

wouldn't have got there if I didn't learn about it for my grade. 11 English teacher, Mr. Barber, so if you can be Mr. Barber or get someone to be Mr. Barber for them that will really help them learn because there's no other way to do it. They're not going to teach you in school, okay? So maybe give them my podcast link. Send them to my YouTube channel so they can learn from me. I'd love to pass this wisdom on to them if they're not going to listen to you,

all right? So way number three to help kids learn about money is much like kids, we learn the same way, but definitely at their age they learn it a lot faster if they play games. Games are the most effective way for the brain to learn. So, I remember growing up, my dad and mom would always play, well, my mom didn't like to play as much, but my dad loved to play. It was Monopoly, right? And my mom used to always say, well, your father just goes and gets Mayfair and Parkland and

lands on it and everyone goes broke, except for him. So, he used to love playing Monopoly. He was always the one to beat. And playing those games early was fun because it made accumulating wealth fun. And so you can play Monopoly, but also what you can do is you can go and grab the board game Cashflow. And the story behind that game is Robert Kiyosaki, he actually developed the board game Cashflow after being a coach for a program called Money & You.

And he developed the game and it wasn't selling. The game wasn't selling. So what they thought was, well, we've got to write a book like a brochure to sell the board game. So they wrote this little brochure called Rich Dad Poor Dad. And so that book was actually a brochure for the board game. And so Sharon Lecter wrote that with Robert, and that book has become the number one best selling book around money, but it was the

game that made a difference. So if you can get the board game, you can go to Amazon to type in cash flow board game, you'd be able to buy it there I think it's 80 $90 get it. And when you get it, you can actually add an app on your phone called the cash flow app. And you literally use your app with other people to play the game. And I've played with my niece and nephew. And

the whole idea of the game is to get out of the rat race. So when we play with my niece and nephew, my wife and I play it, they're learning how to manage money with investments and buying assets and getting out of the rat race and using money, they're learning without them even knowing because it is a fun game to get out of the rat race. So that's a more progressive game

than monopoly for them to play. But it doesn't mean you got to play board games to learn you can play games with them without a board game in place. So for example, you can play a game with like who can make the most money this week, you can play games with them, let's save, let's see who can save the most this week. And you can kind of keep score and make things fun for them when it comes to money. You can also get

them doing things when it comes to money. So like instead of you going and using the card to buy things, get them to go to the checkout to buy things. and get them to start playing game of money. Like even if you're gonna give them tasks to do at home to earn their pocket money, show them that if they could do the task themselves, they earn the money, but if they outsource it to their younger sibling, they can make money without doing anything. And that's

teaching in the art of business. There's a ton of games that you can go and play. And if you type into chat GPT, some fun games to play with kids, it'll give you a raft of ones you can play with them, okay? Now, way number four to help your children become millionaires early is sales is how you make money. Sales makes

the world go round. Sales, sales, sales, sales, sales. And sales in most families is a dirty word. If you're in a job, a nine to five job, guess where your wage come from? Someone made a sale in your company. people turn their nose up at it like sales. I'm like, well, you wouldn't be paid if it wasn't for sales. So one of the most effective things you can do is go door to door and sell stuff. I know it's uncomfortable for you as much as it is for them. But this will show them

what it's like to actually sell stuff. So in school, they'll get chocolates to raise money, they'll have a walkathon, they got to sell tickets. lean into that with them and go door to door and start selling things and start to help them understand the art of rejection, the art of perseverance and celebrate with them when they do make a sale. So they have a very positive relationship with making money. And they have a great relationship with getting rejected

too. Because if they can have a great relationship with no and with yes, you're gonna develop an entrepreneur in them. And entrepreneurship is really how you can start making them wealthy from a young age. A friend of mine, he used to a guy I went to school with, he would go to the local markets and he would sell phones that he was so shorts there. He would sell pants there. And he was frightened to do it in the beginning and he went and did

it and he sucked at it and he failed at it. But he kept going back kept going back. And eventually he built a built a company called Culture Kings and he recently sold it for $600 million. And if you go back on our episodes, you'll listen to the interview I did with him at Simon Beard, go listen, but he started out doing basic things in the markets as a kid. And

you look at the value of that over time. It's incredible, right? So way number five and how you can turn your kid into a millionaire is get them earning, get them spending and get them giving the three things with money that brings joy, earning it, spending it and giving it. Now, how do you do that? Well, you can set up some things for them to earn their pocket money. But you can also teach them how to sell things themselves. I remember when I was a kid, we

went to there was a boot sale once we have to have boot sales before the internet. And I remember going around the house and just finding all these old toys only about nine at the time, and finding all these old toys that I never used anymore. So we went around we got all the toys together. We went to the boot sale and my mom said, Hey, you can sell the toys. So I started selling the toys. And I remember I literally, I was negotiating with some of the buyers on

the toy transactions. Like it was 10 bucks, five bucks, eight bucks. And I remember they tried to negotiate and I said, no, no deal. And so they said, okay, and they paid. I'm like, wow, I won the negotiation. So like at a really young age, I was getting these little did I know I was learning some of these skills on how to negotiate. And my mom probably knew that was happening, but I didn't. And so just the subconscious patterns that you develop in them by doing that is amazing.

So I remember saving up from selling my toys, $324. I know it was that much because I went out and bought a Super Nintendo. So then I learned how to make the money, but then I learned how to spend the money on stuff I wanted to spend it on. And I still remember my ability to make the money, even though it was selling old toys and then buying something else. My dad said to me, you know that Super Nintendo was $324. And I looked up to him smugly and said, yeah,

I know I bought it with my own money. And I remember he's like, I don't know where to go with that. The go giver sells more and the person that sells more makes more. And so giving is a big part of actually developing wealth. And you look at all the people who are rich in the world, they actually gave the most value to society and that's how they develop wealth in the first place. So you have to help them give, not just give money, that's one way of doing it, but give their time as well, because

that's also more valuable than their money. So who are they giving their time to? Who are they serving? My mom every year would go to St. Vincent's and she would collect and run this team of all these people bringing all this food for people who are doing it tough during Christmas. So my siblings and I would go to the church, St. Vincent's, with her on the weekend, and

my wife, and we'd go around. and we pack all these bags full of food in the bags and then we would when the people would come we'd give it to them and so that was giving our time rather than money to them because it's what they really needed the most and it was just those things that you learn about how to give and it always weirdly someone said to me once it comes back threefold I was like yeah right it does but it does so

if you give a lot you'll get a lot and so teaching them how to give is important as teaching how to earn and spend Just quickly, if you're ready to take control of your finances but feel stuck on where to start, I have a solution. My book, Money Buys Happiness, simplifies investing and wealth building with practical steps to help you achieve financial peace. Get your copy via the link in the show notes and let's get your money working for

you. Now back to the episode. Then number six. Six, you have to get them investing early or understanding the

process of investing. And in my day, my day back then, there was no easy way to invest in stocks. There was no fun apps like there are now, which we'll share with you in a second. But there was like, there was really no way of really understanding investing. But I do remember when I was about 10 or 11 or 12, my dad would take me to the real estate auctions. And he would sit me down and I would watch these real estate auctions take place like the Ray White

real estate auction. So I'd sit there and listen as people bid on and bought houses. And that was probably as close as I could see to learning how to invest plus playing Monopoly, and so forth, but I really didn't have the tools that young kids have these days, what you can do now you can go and add a simple app on your phone can add a micro investing app like spaceship or raise or acorns depending where you live or money box in the UK, and

you can simply add one of those little apps, you can start with a little as $1. and you can literally open up a child account called Raise for Kids. You can open up an account for them. You can put the money in, you run the account, but you can show them specifically, hey, your money tree's growing because you put a little bit of money in here. Congratulations, it's gonna grow. And just by showing them those simple concepts, they can actually learn how money grows

over time because you're literally showing them from an app. I mean, that's amazing you can even do that on your phone these days, right? So, that's number six. Number seven, get them hanging out with wealthy people, right? Because you become the five people you hang around the most. So, if you don't know wealthy people, start to get to know them. If nothing else, for your children to be able to hang out with people who talk about wealth. Robert Kiyosaki talks about his book, Rich Dad Poor

Dad. He used to hang around his rich dad with his rich dad's son. And he would learn things by being around them. And a friend of mine once said, you know what Lloyd, success is like a virus. You just have to hang out with people sometimes to catch it. And thankfully, when I was younger, my parents understood this. And my dad would, you know, we went to certain schools that allowed me to have conversations with other kids about money. But also, as I grew up, I was attracted

to people who were successful. So I would like to hang out with them more and more and more. hang out with my dad's friends who, you know, were successful. And I avoided, most importantly, hanging out with people who weren't successful, not just with money, but in life. And so if you can, as a parent, just make sure your children are hanging around people who are highly successful, they will also catch the success like a virus, and they will start to mimic and learn and

model some of those behaviors at a young age. And if you don't know where to start with that, get a mentor, pay for proximity or earn your way to proximity somehow, someway, but get your children close to you. to them as well. And number eight, you got to teach them that time is more valuable

than money. What I mean by that is teach your children to actually value their time rather than just value money. How? Well, rather than give them pocket money, perhaps incentivize them to build a skill set and incentivize that with pocket money instead of just giving them money for a task. You don't want to turn them into a task monkey.

You want to turn them into an entrepreneur and a business owner. So say things like, if you do this, I'll give you this and negotiate with them and teach them to do a lot of their own things because they can leverage chat GPT, YouTube and other technologies that are available to them today to be able to earn money without a lot of time. They weren't available previously. So help them leverage some of these technologies now so they can earn more by

doing less. And in which case you teach them how to delegate how to deploy their capital to make more of it and how to systemize things to be able to create a lot more time which I talk about in my new book that's coming up. become time rich, which is gonna show you exactly what to do with that. So now we come to the crunch. What are the five steps I'm gonna teach you right now to then teach your children or do with your kids for them to literally become

a millionaire, right? This is a tangible step-by-step process to over $2 million. So in effect, you're teaching them how to become multimillionaires. Are you ready? All right, buckle up, because we're gonna get into it. Step number one, get ready. I know you can't wind the clock back, but At their birth, I know, I know, they've already been born, I get it. But at their birth can teach them this to teach their children this. At their birth, invest $1,000 into

a simple index fund. Okay, that's the first step $1,000 into a simple index fund, right? Step number two, Then continue to invest $100 a month, which, think about it, it's $25 a week. It's like, just change how, you know, having a large coffee instead of a small coffee. Like, it's not that much. $100 a month, invest in the same

index fund until the age of 21. Okay, I know that's a long time, 21 years, but if you just put $100 away each month into that index fund, considering it's gonna compound at, say, on average, 10% a year, then step number three is by 21, They'll have 109,000 invested, okay? You want to put in 109,000, but the investment portfolio would be worth about 109,000, okay? That's step number three. Now, step number four is really complex. Oh my God, I don't know how you're gonna get through this. Are you

ready? Do nothing. Let it grow. Just leave it there. You don't have to do anything anymore. It should be called three steps because you've done the three steps. You're done. The next step is to do nothing. Sit on your butt. Let it grow. Be patient. This is a step because a lot of people can't be patient. They need to tinker with it and touch it. You don't have to do anything with it. Just leave it. Step number five, buy 50. Your child is 50. Right? You've only invested $100 a

month for the first 21 years of their life starting with $1,000. That's all you've done. That's it. You haven't added anything more. You let the 109,000 compound until they're 50. And now it should grow to about $2.6 million. Now granted, I know, I know what you're saying. But Lloyd, inflation, it's not gonna be worth the same when they're 52.6 million. So what? It's still better than nothing, which is what they're gonna get if

you don't help them do this or understand this. It's better to have 2.6 million in unadjusted inflation money than nothing. Even if it's worth 800 grand or a million, it's better than nothing. Wouldn't you love it if your parents had a million bucks for you at 50? I bet you would. That'll help you buy a house, invest more, travel more. This is so simple to do, a thousand bucks. Add in 100 each month, stop at 21, let it grow. Imagine if every single family did that. Imagine if

they did that with their kids. And if you're too late to the party, teach them how to teach their children how to do this. I know for certain. that we're going to do this with our kids. I know for certain. So when they're born, boom, boom, boom, boom, boom, boom, boom, boom, boom. I know what you're thinking. But if you do this for them and give them the money, they're not going to learn anything. And you're absolutely

right. But what if you could do both? What if you could show them what you're doing and teach the principles at the same time, so that when they hit 21, they can continue compounding so they can continue to add the $100 a month that you did, because you've taught them the principles and you've given them a bit of a head start, a bit of a leg up, what's wrong with that? And then that money will compound into millions and millions and

millions of dollars. So why can't you do a little bit of both? It's better than you taking the money and spending it somewhere else. Why not show them how to do it and do it with them? Of course, you don't want to just gift them money because we all know what happens there. They become sport brats. But you also don't want to do nothing. All right, because life's going to be harder for them and harder for them because property is more expensive, inflation's up,

wages haven't caught up. I promise you the next generation is going to have a lot tougher when it comes to financial wealth creation. So why not just help them do both? Give them a little bit, teach them along the way and let them teach their children and so forth and break the financial curse that may or may not be on your family after the last few generations. Okay, so hopefully that makes sense. Go forward, do both, teach

them and do with them. And that's how you can turn your child into a multi Now, I'll be able to do another YouTube episode in 50 years and tell you how this went. But I'll be 91 then and I'll still do it. Mark my words, I'll be here. So you better subscribe because we've got a lot to come. Okay, so if you haven't yet, hit the subscribe button, go check out our other videos on YouTube, check out our Spotify podcast, leave a comment below, which step are you at? Or which way

resonates with you the most? Leave it in the comments. I'll come and talk to you then and I'll see you in the next episode. Thanks for listening to Money Grows on Trees. If you enjoyed the episode, leave a five-star review on Apple Podcasts and Spotify and subscribe to us on YouTube so you never miss an episode. And if you're serious about building wealth, make sure to check out the links in the show notes and follow me on all social media platforms, at