Financial education

We Loved How to Turn $100 into $1,000,000 and You Will Too

Recently J and I read How to Turn $100 Into $1,000,000 by James McKenna and Jeannine Glista. The book is a goldmine of financial information, written in a sassy, fun and engaging way. Read our summary and enter to win a copy below!

Start with the why

How to Turn $100 Into $1,000,000 starts where I think all books should — with the why. Why do you want to save $1 million? The authors quickly dispel the reason of greed and showing off and instead talk about freedom, having a safety net and helping others.

Chapter 2 is about thinking like a millionaire and the Million-Dollar Mind Set (MDM). Having a good attitude will help turn $100 into $1 million. So, how do you do that? What is the MDM?

  • Make a commitment (and write it down! There are some great worksheets in the book, including a list of “Reasons to Become a Millionaire” and “Your Two-Page Plan to Become a Millionaire”)
  • Know you’re worthy
  • Think like a millionaire
  • Have focus – what’s your goal?
  • Be patient – it will take some time
  • Have confidence – don’t do what everyone else does
  • Learn and gain knowledge – from this book and others
  • Make saving a habit
  • Don’t give up (and don’t be afraid to fail)

Do some planning

The next section talks about setting goals — short-term (now to 1 year), medium-term (1-10 years), long-term (over 10 years) — and the importance of having separate accounts for each. Like with the MDM, you should write goals down and monitor your progress.

It can be hard for kids to have a budget when parents pay for everything, but the book touches on how to do it. The authors also mention increasing your income, cutting back on expenses, doing a little of both and keeping everything simple.

Where will the money come from?

As an adult, you probably already know where your money comes from (most likely your job), but a lot of kids don’t have a job yet. The authors make some great points about where to get money (allowance, working, gifts, interest on investments) as well as passive vs. active income (love this).

Getting a job

The section on getting a job was excellent. It started out by advising kids to decide what they want and then list their strengths and weaknesses. There was some great advice on creating a resume (along with a sample) and how to get and do well in an interview. I know adults who don’t follow this advice, so any kid who did would automatically stand out.

The chapter ends with how to keep and do well at the job and save money from it.

Start a business

For kids who aren’t looking for a typical job, the book devotes a whole chapter to starting a business. I loved that it wasn’t just a list of things that kids could do, but included:

  • A one-page business plan
  • The four Ds of a great idea: different, desirable, dynamic, doable
  • The four Ps of marketing: product, provide, place, promotion
  • Thoughts on whether your idea can make money (or not)
  • Advice on getting a separate account
  • And what to do when things go well (and not well)

Get to work

Now that you know why you’re saving and where the money is coming from — it’s time to actually save! The book makes a case for why saving money is cool. It also talks about how to do it (don’t spend it and keep your income higher than your expenses), learn the difference between wants and needs and make sure to open a savings account. Make a habit to pay yourself first, make it automatic and be consistent.

Kids might not know that you don’t actually have to save up the whole $1 million — especially if you start early and let the money do the rest. Compound interest is the most powerful force in the universe (we love the rule of 72). The authors use a lot of great charts with exponential curves to illustrate the power of starting young vs. starting later.

You’ll really need to think about investing, too, because your savings account isn’t going to earn you that much. There’s a list of what you can invest in (CDs, stocks, bonds, real estate, companies, commodities, art and antiquities) and the authors talk about risk, return, choosing stocks, stock splits, dividends, mutual funds and diversification. (And all in a fun, age-appropriate way.)

From here

Even though the book gives a pretty clear plan on what to do, sometimes you just need to read what not to do for it to stick. Make sure you don’t earn less than you spend, don’t load up on debt, don’t go through life without a plan, don’t gamble and avoid scams!

The authors also encouraged us to take action and keep learning — it’s never too late to start (which I’m sure is meant for all the parents out there).

J and I read this book together, out loud, which really made a difference. He was able to ask questions about words and concepts that he didn’t understand and we had a lot of great discussions that were sparked based on what we read.

Because we loved the book so much, we’re giving a copy away! Enter below and act quick — the deadline is November 21.

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