A Lesson to Teach Your Kids… and Grandkids
Editor’s Note: In today’s article, Monument Traders Alliance Head Fundamental Tactician Karim Rahemtulla reveals an important lesson to teach your children and grandchildren about finances.
It’s a lesson that Chief Income Strategist Marc Lichtenfeld regularly advocates for as well.
But Karim and Marc don’t just see eye to eye on the importance of financial literacy. They are also both bullish on value stocks…
Karim has been pounding the table that 2022 will be the year of value stocks. Even with the recent market rally, growth stocks are significantly underperforming value stocks. We agree with them that the trend will continue for the rest of the year.
Why? The market remains overpriced. Inflation is everywhere. Many stocks aren’t worth the prices they’re trading at.
– Kyle Wehrle, Assistant Managing Editor
There are few things worse in life than watching your kids struggle as adults.
At some point, all of us will encounter situations where we are helpless when our kids are involved. We try all we can to teach them the right way to do things (according to our own experiences, of course), but there is a point in which stepping back is the best option despite how painful it may be.
I’ve had to learn this the hard way; in the past, I was an enabler.
I knew better. My parents let me fail many times. They never let me fall off the cliff, though – they just let me get really close to the edge. I was also very young – in my late teens and early 20s.
Today, the situation is very different. According to a recent study by Experian, nearly one-third of children are now living at home after college.
There are a million reasons. Rent is too high, we’re still emerging from a pandemic and jobs don’t pay enough. And many are shouldering student debt.
What changed from when we were growing up? We had to repay debt, look for jobs and pay rent. But our priority (and I am generalizing here) was to blow out of Dodge at the first opportunity.
It didn’t matter how crappy our car was if we could pay for gas and insurance. Independence was something to look forward to. It couldn’t get here fast enough!
Today it’s different, and while we can blame kids for laziness, entitlement or failure to launch, it’s really the fault of their parents.
We allowed the debt bonanza to take place by insisting they go to schools no one could afford. We bought them the latest iPhones when they were in high school. And we indulged their sense of what is normal by using home grocery delivery services when we could just as easily go to the store.
We said that it was great for them to spend hours every day in a cocoon of texts, social media and video games. As a result, we have created a generation of humans who may well be the first that couldn’t survive one night in the wild without cellular service!
Teach your kids about debt. Teach them how to balance a checkbook and not just look at their banking app to see whether they have any money left. Teach them how to budget and save instead of accepting recurring “small” monthly charges for things like Netflix as the norm. Teach them that there is a price for convenience: getting less value for your money.
Your kids are not CEOs of major companies who don’t have time… that is pretty much all they do have!
These are things you CAN teach them at home. They will not learn this in school or from their friends in their group chats.
Some of you may be laughing at this diatribe; others are probably shaking your heads. There are no easy answers, but the first place to start with financial literacy is at home when your children are young. This trend toward tech-enabled, entitled sloth must be reversed.
Those of you who are not dealing with this should count yourselves lucky. For others, this is a major epidemic. The result of not dealing with this problem will be a much worse retirement for you.
There is a major catalyst… an announcement coming on May 12… that I believe is going to make this one of the most sought-after stocks in the world.
Now is the opportunity to get in right as the recovery sends it soaring.
If you’re looking for a stock under $2 with 10-bagger potential or better in the years ahead… this is it.
Betty Spears needed help with her medication management. She also simply wanted a kind word. She got both from…