we all get excited about about financial literacy and what they're actually doing about it if he accomplishes one percent of what I think he can accomplish it's going to create Ripple effects that will literally change the game in how families train their kids and the Next Generation after generation give a warm better well welcome to Scott Donald how's that happening all right testing am I on testing Can you guys hear me all right all right all right well uh hi guys my name's Scott uh I learned a lot today this is crazy that's more stats than I'd seen since college but uh it was powerful stuff man so I'm going to talk today about something a little crazy who here has kids grandkids want to be having kids we interviewed that we we searched the globe to figure out to find a hundred Mega wealth families these are multi-millionaire up to billionaire families that did it right with future Generations that is hard to find okay I do come from four generations of Mega wealth that gave it all away my dad my grandpa built inner West Bank it was the number one Bank in America Small Business Bank ended up exiting the Wells Fargo for billions of dollars gave the whole thing to charity to widows and orphans four generations in a row and I couldn't be more thankful I'm gonna explain that today and there's a crazy link between these hundred families we found and interviewed and said how did you do it shirt sleeves the shirt sleeves in three generations anyone ever heard that ninety percent of generational wealth is pissed away by the grandkids why that's what I was trying to figure out so that's what we're going to talk about today I'm going to share the lessons learned from these families and the crazy thing is they all do the same thing and the crazier thing is no one else is here's my quick story I'm probably I don't know someone else said that about me but I'm one of the leading voices in teaching kids money in America I've got about six million families under my belt maybe that's good enough I don't know first company was Apex leadership Co in 2011 my wife was a first grade teacher she spent her whole paycheck on her kids making 38 Grand a year and I was like what are you doing so I started a company to raise money for her school it ended up making that that school fifty thousand dollars it was a fun run who's here is given to a fun run yeah that was me I started that industry basically so we launched uh we've raised hundreds of millions of dollars in exploded Nationwide millions and millions of families 600 employees and I loved it but right off the bat I was like why aren't these kids learning about money why aren't they learning the practical skills to succeed like how how does trigonometry help you with monthly budgeting how does geometry help you with taxes or life insurance or annuities like can we get to the basics first of how to make it out of out of the real world people so started children's business fairs with a good friend of mine Jeff Sandifer he started one in his backyard I ended up expanding it kids come on a Saturday they make products they make 300 bucks a profit in three hours it's incredible training now there's 1500 of them all over the world biggest ones in Guatemala with 5 000 kids super fun and then thousands of parents started emailing me and saying this is the number one thing my kids have ever learned practically forget school for 17 grand a year that the public system spends this thing made them 300 and they're ready for the world they're paying their way through college five years later they're literally got their first six figure job at age 19. it's just like practical skills practical skills and then we started my first sale to turn it online it's like Etsy for kids okay now we've got tens of thousands of kids have gone through this program the guy who's speaking next with family brand Chris Smith his son is here where are you Tay he was one of our first kids to go through my first sale crushed it how much money have you guys made on Creator complain 12 000 bucks killer so kids learn in two ways I'm the expert trust me fun and real life experience you guys follow me it's the only way they learn and when it comes to money you can't homework it that's why everyone rails against the public education system but teachers who don't know this stuff how do you expect them to teach it to kids through homework they can only learn this in the real world and by having fun okay is everybody following all right so that led us to gravy stack gravy stack I'll explain in a minute it's the world's first banking game for kids and families to become completely financially competent with a real bank account and a debit card and a hundred games and real life challenges like these kids are canceling subscriptions and like coupons and playing the next family trip on a budget doing real investing games and then they invest through the account like actual training real life fun you guys follow what we're doing here 50 million kids financially competent and ready to succeed so we launched a book value creation kid it's right here if I uh if I had more room in my bag I'd have brought one for all of you but you can just grab one on Amazon it's a best seller already value creation kid the healthy struggles your children need to succeed it's exploding we sold 3 100 books yesterday so it's just going like parents like holy crap this is the answer tell all your friends and it's the stories of the the 100 multi Legacy millionaires oh and then we have Smart money parenting that's our show all right massive problem 76 of 18 to 25 year olds fail a basic financial literacy test less than one in four 22 year olds is financially independent despite most of their parents thinking they will be by that age two trillion plus student loan debt and growing gen Z is scared to talk about money it's the biggest fight in the home we surveyed a thousand families this is what we found parents we don't know what we're supposed to teach kids we're terrified to talk about money my parents fight about it Sex and Money those are the two biggest ones you're not talking about sex in front of your kids that's in the bedroom but you hear money problems all the time we can't afford this do you know how much that costs money doesn't grow on trees Amy you forgot to pay that bill again right like kids hear this stuff and then they get scared to talk about they're like forget it I'm just gonna like wait till I'm out in the real world I got food shelter clothing I'm gonna play games and hang out and do Sports all right so that's the point schools aren't teaching it Banks don't care sorry if you're in banking in here but most of the financial literacy budgets for banks is like PR okay but Banks make their money when you have deposits kids don't have deposits so banks have kind of left them high and dry and then parents need our help okay they don't have a road map so this is gravy stack just to give you kind of an idea there's all these worlds and maps and you're trying to defeat the greedy Tyrant weasel mob boss and his henchmen uh this is the one of the levels in the game they play 10 games wants and needs money motto games subscription hunt emergency expense water balloon fight with a hyena so they learned 31 emergency expenses to that they have to save for uh there's this is the entire home gig system which I'm going to talk about in a minute everything we learned from these hundred Legacy Millionaires and billionaires we put in the app for everybody okay we want the whole world to take this on oh yeah average kid has saved their parents 547 dollars in the first month of using gravy stack the thing's seven bucks a month so talk about return on investment for your kids this is the money machine we have 30 patents on this anything gaming and banking related we have to show the flow of money kids it's a video it's literally a game like they watch the 10 the last 10 transactions they've done on their debit card goes through their revenue streams into their save spend and share jar automatically split share goes to every non-profit in North America save gets three to four percent interest and they have their wants and needs in their spend jar okay and then this is like investing you can do that I'll I'll talk about that different time but okay you want to hear what the 100 family said you wanna go into that wow you're a lively bunch [Applause] the first lesson Garrett took it good job they create value they help their kids create value not money first money is a store of value that's the point here you don't want to just get your kids to go after money only five percent of kids are like out of the womb how do we get money Mom and Dad those the entrepreneur kids only five percent of kids have the DNA for entrepreneurship the other 95 percent of kids don't and their parents don't want to talk about it because entrepreneurship is another word for losing all your money and going broke they're scared of it so we have to get kids to think about creating value creating value is what entrepreneurs do every day but when you talk about this way it's the fastest way to getting the promotion it's the fastest way to getting the job it's the fastest way to figuring out what the teacher needs it's the fastest way to make your your sister or brother happy to share with somebody else creating value is not just money creating like there's three types of value that we talk about in the book value creation kit material emotional and spiritual value material value is what you create and produce in the world emotional value probably the rarest of all is how you think and feel and help others think and feel and then spiritual value is how you live and love other people all of those create value and I'm a Christian Jesus is like the best spiritual value in the world to me another way thinking about spiritual value we're going to put a man on the moon and return him safely by the end of the 60s think about how that United our country the value that that brought to everybody so if you get a kid to start thinking and looking around how can I create value in every situation how can I make that my lens my core drive like how do we think that way the motivation kids start exploding so we have this value creation cycle healthy struggles not trauma healthy struggles creates capabilities in the kids which creates confidence in the kids which creates value for them and everybody else if you're a parent in this room go through healthy struggles let them skin their knees this is in school in sports in health in learning to change attire and cooking a meal and chopping home gigs everything in the yard you've got to let them grow fail fast Early learn and grow and be there you have to be firm and kind firm and kind that's how you do the the value creation cycle and this is the value creation matrix it's all about building confidence and capability within your kids if you're high capability and high confidence you're one of our favorites you're a value creation kid if you're high capability but you don't have the confidence you're anxious you're a self-doubter you're worried about what other people are going to think a lot of the mental health issues come from this side okay and the other side if you're confident but not capable you're entitled I deserve this I'm it's a lot of arrogance is this like they they deserve they get special treatment and if you're neither you're a lazy victim you grow up blame everybody else okay so that's number one number two this one is going to hurt some heads especially in this room where okay kids need Heritage not inheritance all right it's more about what you leave in them than what you leave to them this is a critical piece that almost all one of these families live by they care way more about the legacy of their family the mission the vision the values what it means to have their last name family brand is amazing for this with Chris Smith who's talking next creating that family structure of how we show up for each other how we love each other we have a family our values as a family are simple and memorable so that my two-year-old can say them every day Faith Family Fish we love Jesus we care about our family and fish fun and active fun and adventurous integrity service and hard work simple my two-year-old can say it if you have a bunch of stuff that no one remembers why do you have it you put on your walls it's got to mean something to have your last name okay is everybody following along with what these families are doing yeah yeah I'm gonna get way more granular here in a second about the money side okay the last thing I'll say about this it's critical these families have incredible storytelling so if you want to kill if you want to destroy a culture get rid of the chief storyteller so these families have stories of ancestors they have stories of their family they have stories of what they're doing right what they did wrong that they can pass on to their their kids and their grandkids it's about communication and education that's how you prepare your kids for wealth okay these kids and grandkids and great-grandkids of these Legacy families they are kind they're generous they're smart they're driven they're ready for wealth okay what happens here and this is number three money is not evil the love of money is but if you're thinking about money all day every day it's kind of your Idol what these families work on is they don't have a negative view of money in the family they have a positive view it's a tool right it's the store of value so many families especially the wealthier they get and if you fall on both sides poor money is like a necessity we have to like beg borrow and steal to get by okay it's a terror for kids if you're if you're on the wealthier side and I don't mean billionaires I mean like if you're a millionaire okay if you're on the million cusp your net worth the kids don't feel ready for it if you pass it on to them they get guilt fear and shame when they get it that's why it's shirt sleeves to shirt sleeves and three two to three generations they either have guilt because they're not ready for it or shame that they're not like I'm not qualified to have this wealth it's like a lottery ticket winner see this so they do is they just blow it or they give it away they don't like keep it going all right so that's the point here um God gives you the ability to produce wealth Deuteronomy 8. you have to have a positive view of money it's just not the goal okay it's a tool number four allowance is socialism every single parent we talk to in this group did not do allowance all right the three S's socialism salaried employees and servitude here's what happens with allowance socialism you give your kids money for free no kid will ever spend your money the way they would spend their hard-earned money it's literally just blowing it or hoarding it that's what happens with kids all the time with allowance then some parents go no no they do chores I pay him allowance well okay that's a salaried employee that's somebody who's just doing a list of random things and you pay them where they do it or not most the time half those chores should be done for free in our home and the other half you need to pay one off so they understand the value they're creating for each thing they do why am I getting this paid the same for a Dish as I am for an hour and a half of weeds see the difference guys they also need to be doing way more things around the house parents can turn their kids these all these families turn their kids into assets instead of liabilities and here's how they did it oh last thing you need an answer when your kids ask you for money because that's that's a lose-lose situation okay Dad I need 20 bucks okay yes guess what I'm a pushover and I'm slowly spoiling and entitling if I say no I'm the bad guy now I'm the enemy then I gotta use money later on to bribe them coerce them or buy their love back see how you got to remove that issue and here's how all these families do it you ready five money skills earn save spend share and invest they systematically help their kids practice in the real world with real money these five and I underlined share I'm gonna talk about these in the next few but I underline share because that's the true unlock for kids to be financially competent that is the number one by far all these families said we want our kids to be generous at a young age when you do that they have an open hand when you do that they have an abundance mindset bigger pie mindset uh they have the mental excitement around helping and serving and giving to other people the world is much bigger than my budget and what I can do and what I can get you see the difference I want that kid to go into the world ready to create value because there's way more than enough to go around so they focus really heavy on share mission trips giving they talk about what they're giving to have you told your kids what you're giving to and why when was the last time you asked them what are some other cool non-profits or Charities or different things we can give to here's what we're doing what do you guys want to do next birthday give your kids 100 bucks and ask them to give it away week before Christmas give them money have them give away by Christmas and share this story this is what jump starts all these families okay I'm going to talk about the rest but all these are in gravy stack there's 10 games in each level on all those as well as online security borrowing creating value skills and traits number six my favorite one the home economy system people do allowance because it's the easy button right I'm giving you your dollar age per week if you're eight years old you get eight bucks a week it's the easy button and this is what all the other debit card companies do for kids all of them this is why I don't like any other debit card companies they just give no kids ever log in and the parents just throw money on the debit card every week that's what's happening it's basically like the piggy bank digital so now they're swiping 30 more than they were before because it does they don't feel the pinch with gravy stack they actually feel the pinch so this is what the home economy system is write this down expectations expenses extra pay expectations here's what you're doing for free I'm not paying you to make your bed brush your teeth get dressed probably take the dog out do best in school and dishes and trash I'm not paying you for that that's your rent number two expenses this is where a lot of parents go wrong starting at age five and six start giving them expenses to cover toys trinkets souvenirs Tech social outings with friends birthday presents for their friends a cavity they have to pay for that I don't know things like that pass off the 12 expenses we have them in gravy stack in a list now that you do that you have hundreds of dollars a month that you were paying for that you can now pay them in extra pay gigs around the house that's number three extra pay we have 55 home gigs that you can do in the kitchen in the bathroom and around the house out in the yard in the garage sweep MO you know pump up tires wash windows make a meal help a sibling with homework whatever it would be you guys follow me here it's the three E's every single one of these families did it and they did it in Spades the more money they could pay their kids every month for doing the job sometimes it was 5 10 20 bucks each right there's those kids now are responsible they're taking ownership they're having delayed gratification they're learning wants and needs they're learning trade-offs I don't want the Air Jordans I'm good with the Adidas that's what you got to do at home you have to match the software and the environment at home that's going to be in the real world the real world will not pay them for brushing their teeth okay that's the setup for the home economy I know I gotta go quick this is by the way the printout that you get in gravy stack once you create all your gigs of EX expected expense and extra pay which is weak it auto repeats by the way that's why this is so awesome it's Auto repeating gigs daily weekly monthly you get a weekly print out you throw it on the fridge and now you have your whole payday gigs weekly system set it's as easy as allowance but no one's ever done it because it's always been hard all right four stages of earning kids need to basically start with home gigs asset flips Community gigs first product or service business in that order it's a concentric Circle they start at home with trust then you sell something on eBay in the in the garage or you go to a garage sale and you flip it I just got word this morning a kid made a thousand dollars a nine-year-old flipping motorcycles from eBay using gravy stack Community gigs go out to trusted family and friends and neighbors and then you're doing your first product or service run small one-offs 10 of something like create or complain right number eight dinner dinner money conversations they bring their kids into all conversations monthly meetings on where you're investing where Mom and Dad are giving dinner conversations this does not happen at school it happens at the dinner table you bring them in on conversation so that's why gravy stack we text the parents right before dinner here's a great question to ask your kids tonight based on how they're playing the game but you could literally chat GPT if you want be like what are 100 great questions I can ask my kids about the 10 categories bring them in more is caught than taught and it's your job to not Outsource parenting okay I know I'm almost done we'll go fast Outsourcing parenting is what a lot of people do you Outsource it to school you Outsource it to church you Outsource it to camps you Outsource it to sports and then the kids grow up and you realize why the relationship's broken why they're not learning what you hoped they would it's communication and education every day in and out okay it's more about what you leave in them than to them number nine paid this is the hard one that I'm about to read off I really hope I'm not pissing you guys off I really want to come back someday the goal think yeah you should get your wife in the game doing the travel planning budget challenge every spouse is like can I get my spouse on that pay to a point then stop okay these are these are Mega wealth families multi-millionaire families up to billionaire but I'm talking like net worth of a million or more 2 million pay to a point then stop your mindset for legacy has to be grandkids all of my decisions even if I don't have them is about grandkids and great grandkids okay so most of these families are doing a double they'll go to the grandkids and say our jobs to help with grandkids College a chunk of it right our jobs to help with a private school if the grandkids are going to go they want to think that Legacy like multi-generational okay that's how you bring them in bring everyone together have these shared missions my great grandkids are going to know about faith family and fish you better believe it and 20 stories that they can pass on about our family okay our last name is going to mean something that's the point but it gets more integral most of them paid for a private school as they're growing up and mission trips they would do 50 percent of car not whole car fifty percent they'd match starting at age 10 what the kids are saving they would do 50 of college upon graduation you can pay for the whole thing if they're graduating getting the degree but 56 percent of kids don't graduate college they get the debt they leave no degree see the difference here what I did my parents did you get half of college the rest I had four jobs this summer tons of scholarships work my butt off and guess what I had 16 left over okay and I was fired up ready to go but I had work ethic okay so um last one very interesting and this comes from Hobby Lobby Green family all the way down Coors family all these families they do a 20 age 25 age 35 and age 45 I love you gift that's it enough to make them know you love them not enough to make them Coast when next Generations get enough money they Coast everyone follow me here this is the hardest one to swallow you die this is what most of these families do they put it in a charitable trust they make sure their kids and grandkids have enough to let them know you love them okay some some families that's 10 grand some family that's 100 Grand you give them millions they're coasting this is a hard one to swallow but what you do when you put this in a charitable trust you put five dues and five don'ts here's a trust that my kids and my grandkids are going to help Steward and give away but here's five things we care about our family cares about widows orphans financial literacy anti-trafficking who we don't care about socialism like all these things that we we refuse to give money towards right Ministry causes we refuse to give towards these types of social causes or identity like things that we don't want that's how you can Steward a multi-generational trust does everybody follow this now everyone's bought in and the values are carrying forward okay and then number 10 and I'll be done give them roots and wings best thing I've ever heard for kids this is from Bill high and David Green with Legacy Stone give them roots and wings we don't want to raise our kids to just be independent and leave forever and start their own thing and barely maybe see them on holidays you want interconnection with your kids you want them to be capable confident and connected so they need roots and they need Wings The Roots is the culture that's the values that's the shared stories that's the what it means to be a Donald those people those kids when they rise up then they have wings but they're connected more likely to live near more likely to visit more likely to have absolutely want to have Grandma and Grandpa or great grandma and grandpa calling and FaceTiming all the time come visit whatever you can that's the way to do it you don't just want independence what you want them for 18 years and they're gone forever no you want connection that's the point that's how Legacy transfers all right I can be done you can't take it with you but you can send it on ahead that's the point so here's the last thing before I'll be done okay well okay so there's three ways if you want to support um where we literally launched gravysack we've been in beta for like six months we've been building for 28 months 10 million dollars by the way this thing's crazy there's the app on the left if you have kids or grandkids six to eighteen if you want to be an affiliate we have about 350 Affiliates 375 Affiliates launching in the next like in the next month kind of structured it's just like a 25 payout to thank you for helping us get it out to your audience it's actually a pretty good payout because the conversion's really high but we need Affiliates anybody with an audience like we did an amazing we did an amazing interview at lunch that's a huge way to help man like thank you and I hope it can serve your audience but anybody that has clients um just today I got like 19 emails like from planners Insurance Groups they have a bunch of clients they're like anybody with a family get in here that's the best way to help us and then I got a weird request because I don't know if we want to do this or not uh we have some of the our friends that are talking about doing like a two-day what I just went through with you guys we go like really deep like two days like full-on plan your family's legacy plan out your like system for your kids literally like verbally drafting how to do this all with the family and it's just a two-day thing with couples it's like a grand or two come in we have a couple of like big studs the family coach like and just do a two-day deal I don't know if people are interested in that or not and I don't want to like try to create something unless people actually are interested raise your hand if you want something like that I guess we got to do it you wanna do it with me yeah all right we'll figure it out but I can bring in like Bill high and that whole group will crush like it will you'll walk away being like okay Seven Generations are set so scan that put the HubSpot in and let me put your name in on the on the right hand side and then if we do it we'll put you guys at the front of the list with about 20 other people that said they want to but probably in the fall oh when I do it yeah okay okay I'm done any yeah yeah thank you can I turn this on yeah