Capital Investment Advisors

#131 – Instilling Financial Literacy In Younger Generations with Dan Sheeks

Financial literacy is the blueprint to building financial success for the younger generation. In general, that could lead to earning your children early financial independence and increased happiness in retirement. To help us learn more about educating the rising generation regarding their finances, we called on Dan Sheeks, Owner and Founder Of Sheeks Freaks LLC, author, high school business/marketing teacher, personal finance advocate, and real estate investor for this week’s episode.

Dan shares details about his life and his real estate investments along with five takeaways from his book to tell your kids about getting to a million dollars. He also reveals why he never uses the word “retire,” whether or not having a college degree is crucial, and talks through real versus false assets. Additionally, Dan and Wes discuss the difference between income versus wealth, address the happiness curve, and touch on credit cards and retirement accounts.

Watch the full episode!

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Read Show Notes From This Episode (click to expand and read notes from the full interview)
    • Wes and Dan talked about Dan’s life, Dan’s different real estate investments.

      Wes talks about how he went through a lot of Dan’s book. He has a bunch of sticky notes to remember certain parts. Wes talks about the Plateau Effect.

      5 things as a takeaway for people to tell their kids about getting to a million dollars first?

      (Most important) The habit of paying yourself first. Every dollar that comes into your life, a certain percentage goes first to investing or saving.
      Earn more (during summer have a full time job, during school you have a part-time job, side hustle (one person he knows even built yard games and people rent them from him one person he knows has a thing called “couch-flipping” which is finding free or cheap couches to pick up and re-sell, sell things you don’t want – like a guitar, and put this money toward your future self).
      Spend less (this one probably has the least bang for its buck because teenagers don’t spend a ton as it is. The parents are paying most of the bills. But once a teenager gets out of school and gets a legitimate job, if they can keep the low-spending lifestyle it will help a lot. Try to widen the savings gap).
      Save the difference
      Invest your savings wisely

      The average time of a property on the market is 6 months. That’s a lot faster than it used to be. In Denver, the average is more like 1 month. Now it’s falling back to about 6 weeks.

      Dan never uses the word “retire.” He doesn’t even say “personal finance.” He had a personal finance club. Attendance wasn’t that great. Changed the name to the “future millionaire’s club” and BOOM! A lot of people showed up. Wes says “no wonder you’re teaching marketing.”

      There’s a TED Talk Wes asks about. Questions Every Teenager Needs to Be Asked | Laurence Lewars | TEDxDhahranHighSchool

      Wes brings up the “college debate” and asks Dan if people should get a college degree. Dan says goal #1 is “do it without any debt.” Wes asks what that means in terms of going to a big name school because no kid has enough money for that. Dan says it can still happen with scholarships, or if parents have the money, or if a student takes a gap year and saves money, etc. Dan says also, be a commuter if the school is within driving distance. Dan brings up online schools.

      Wes asks how much we should talk to our kids about money. Dan says we should be as open and transparent as possible. And talk about it as much as possible. Dan has a 1-year old son. He says that includes telling kids what your salary is, etc. He doesn’t like the mindset of “money is private, don’t talk about it.” He says if we were all much more open about money we would all be much more intelligent about it.

      Real vs. False Assets.

      Real asset – puts money in your pocket. Example: real estate. Building your wealth, not taking from it.

      False is one that takes money out of your pocket. Example: a car. Every day you own it, the value goes down.

      The difference between income vs. wealth.

      Dan Sheeks talks about the happiness curve. Income can increase to a point as you get more income but then it can go down. You really just need enough plus a little to be lavish once in a while.

      Dan says to get a credit card the day you turn 18. Then another one when you’re 19. Then another one when you’re 20. You don’t have to use it very much but you want to build your credit score by using it and paying it off quickly. You can get a 700 credit score at a very young age.

      Retirement accounts. He talks to his students all the time about this.

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