Love YNAB, Now I want to be a good uncle and pass this way of thinking to my niece. Whats the best way

I have started using YNAB, and really drinking to kool-aid. I have listened to the book, watched almost every video. Chatted with YNAB great support, and though I am 2 month in. I am a 45 yr old that has his own business, and was in the Marine Corps for 6 years, and YNAB has given so much value to me and is such a game changer. Now, as in the book of jesse, I wanted to pass this on to a 20 yr old that just moved out of the house (and a 16 yr old) that just started working. I feel I want to pass this on to them. Not just the software, but the idea of budgeting. Jesse makes a solid point in the book on not saving for college, but to have the responsibility to teach his kids on what he does for a living (getting people on a budget). But though I believe in it. I wanted to hear if anyone has brought this up to there teenager to get the to start thinking of this and more than anything get the AH ha moment. I have a really good way on what I think would get them to start thinking of doing it, but I dont want to explain and have them tell me "OH my god, BORING!!!". The 20 yr old is living on her own and scares me on how little money she has in the bank (yet I remember when I had just $100 at times in my checking account). Is it a sit down? Is it a book given to them? is it having them go thru my budget and seeing what I do? I feel this is going go to be great practice for my kids (but are only 2 and 6 months) for later down the road. 

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  • Hi, Tan Cleric

    I'm in a similar situation.  One of my nieces is turning 18 this month.  I've come up with a plan to introduce her to the concept of longer-term saving by helping her open her first TFSA (tax-free savings account, which is similar to a ROTH in the US (I think) only there is no penalty/restriction on pulling funds back out). You have to be 18 to open this account.

    I've already done the research on the Cdn Couch Potato site and through MoneySense articles to find a balanced mutual fund with low fees to purchase to get her started on investing for the future, and I plan to give her the initial $500 lump sum to get it started, followed by $50/month for the remainder of the year for monthly contributions, so a total of $1,000 as the gift for her 18th birthday.

    I'm being sneaky. In actuality, the real gift is getting the account open and introducing her to the concept of small, repetitive, automatic, monthly investing.  I have also purchased a copy of Love Your Life, Not Theirs: 7 money habits for living the life you want by Rachel Cruze (Dave Ramsey's daughter), operating on the logic that an introductory book on the subject written by a young woman will seem less "old fuddy-duddy person thinking" and this introductory book will be less intimidating than a discussion with me.

    I have a little speech ready too, about how the biggest mistakes people make with money are done in their 20s, and they're the kind of mistakes that can hold you back for a decade, and to let her know that if she ever has a question or wants to talk about making a big decision, she'll get a nonjudgmental straight answer from me.  Once I have established a pattern of transferring the monthly amount to her for the investing contribution, I plan to also send her a link to YNAB, encourage her to check it out, and offer to pay for the first year's subscription if she finds it to be a valuable resource after using it for the free introductory period.  She's a young university student, and I want to wait on doing that until after her finals.

    I don't have any children, and I'd like to leave a legacy by encouraging my nieces and nephews. I like to imagine that when they are old, they can reminisce about how their crazy aunt got them started so long ago and how that made their lives so much better.

    Reply Like 2
      • Tan Cleric
      • Tan_Cleric.3
      • 4 mths ago
      • Reported - view

      HappyDance  Wow this is great to see we are both in the same boat. I cant agree with you more on leaving something behind way more than money, but how to manage it and be smart about it. Thats something that is way more valuable in my opinion than a bunch of money that they dont know how to manage themselves. I like the idea of saying something like you were going to say on the mistakes I made, I want to pass on what I learned. For me they live out of state and call them daily, though I finally am getting calls back to me (which is the best) as they get older. I was such a nusance, but now, I am the person (after planting that seed for so long) on the person they ask for advice, so I want to use this as a good platform to teach them something. I think tough for me the hardrest part of Ynab is the learning curve, and though I am not a expert at all. I feel I can cut it down ALOT for them to talk with them, but also go thru the process of taking a step back and looking at there finances and what they spend. But also give them some fun stuff on goals (that was mine and my wifes best part) and walking them thru the 4 steps. then sitting down and actually setting up the budget.!!??

      thoughts. If someone gave me ynab today, I would of been like  what is this, its not a set it and forget it, but having someone walk me thru it , I think i would of seen the value. Esp at the age of 20. 

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      • HappyDance
      • YNABing consistently since 2014
      • HappyDance
      • 4 mths ago
      • Reported - view

      Tan Cleric 

      My thinking on the book is that it could open a conversation about what she read. Are there any observations, questions, etc.  This would make it a conversation rather than me coming on super intense about what she should do or asking too many questions.

      Reply Like
    • HappyDance This is amazing! Thank you for sharing. I hope to do something similar for my nieces and nephews one day!

      Reply Like 2
  • I have done two things with my teens: First, I sent them this video and asked them to watch and be ready to discuss. Its a 15 minute video, so I didn't have to twist their arms too hard to invest the time.

    https://www.youtube.com/watch?v=8VNuE1L4BW8

    The second thing I pointed them to was the one year of free YNAB for students. https://www.youneedabudget.com/landing/students/

    Reply Like 3
      • Tan Cleric
      • Tan_Cleric.3
      • 4 mths ago
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      Louie how have the results been so far? any traction? 

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      • Louie
      • YNAB Newbie
      • Louie
      • 4 mths ago
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      Tan Cleric Some.  It was just last weekend that I sent the info off to them. My middle child who is the most conscientious of the three, watched the video and got excited when I told her about the free student option. The next step is on me with her. My oldest is stuck in this mode of the 17 year old male who knows everything already. Will sit him down this weekend, since he now has a job and is making money.

      Reply Like
      • Tan Cleric
      • Tan_Cleric.3
      • 4 mths ago
      • Reported - view

      Louie  I hear you. I am listening to the book from Jesse and just finished the chpter on talking to kids. And boy. So excited to share. Explain and teach. But when there older (my niece is 20) they feel they know it all. Jesse in the book says start young. Go slow. So with my kids that are 2 and 6months  I have some time. But want some practice with my nieces. If you wouldn’t mind to continue and I will do the same as the conversation continues would be appreciated. 

      Reply Like
    • Ben Khaki Storm
    • YNAB book topics online: https://support.youneedabudget.com/r/q5w48j
    • Khaki_Storm.1
    • 4 mths ago
    • Reported - view

    Thanks for all the good ideas and starting this thread. 

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