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