S2-Episode 17 - How We Got Screwed By Not Talking About Money

This podcast episode of "Teach, Lead and Expire" explores the significant impact of the lack of financial education within families, particularly concerning money management and student loans, leading to detrimental long-term financial consequences.

Here's a breakdown of the key points:

• Absence of Financial Conversations: The hosts lament that crucial discussions about money, debt, and financial traps rarely occur at home before individuals enter the workforce. This absence leaves people vulnerable to making poor financial decisions.

• Common Financial Traps:

  • Car Depreciation: A primary example is buying new cars and quickly being "upside down" on loans due to rapid depreciation. The hosts highlight how this cycle of debt is often passed down through generations.

  • Jordan III's Experience: Jordan III shares his personal decision to downgrade a sports car to a truck for practical reasons (living in the country, home maintenance) and improved financial standing (equity in the sports car, lower truck payment).

  • The "Ramsey Rule" for Cars: Dr. Jordan Smith proposes a strategy: pay off a car, save the amount of potential car payments, drive the well-maintained car for years, and then use the savings and trade-in value to pay cash for a 2-year-old (or older) used car, repeating the cycle. This method aims to build a fund to buy new cars every five years for life, all with cash, by avoiding depreciation costs.

• The Student Loan Crisis and Generational Wealth:

  • Viral Post & Motivation: A social media post by Dr. Jordan Smith about veterans being "ripped off" by student loans went viral, reaching nearly 180,000 views organically, motivating him to delve deeper into the issue.

  • Alarming Statistics:

    • The average US teacher carries $58,000 in student loan debt, with 1 in 5 considering quitting their job to pay it off.

    • The average time to pay off student loans is 21 years.

    • Nearly 1 in 5 Americans over 60 still carry student loan debt, either their own or co-signed for family, often facing higher interest rates on parent plus loans.

    • The number of people over 60 with student loan debt has quadrupled in the past 15 years and increased sixfold since 2004, largely due to rising education costs.

    • Unpaid student loans can lead to garnishment of Social Security checks.

  • Impact on Generational Wealth: Dr. Jordan Smith emphasizes that student loan debt prevents older generations from accumulating wealth to pass down. If someone pays $1,500/month for 10 years on a student loan, that's $180,000 that could have been saved or invested, potentially doubling to $360,000 with good investment returns. This lost potential means no inheritance for future generations, trapping them in the same financial struggles.

• "Shattered Chains" - A New Book & Movement:

  • Book 4 in a Series: Dr. Jordan Smith announces his new book, "Shattered Chains," releasing on Monday, which is a raw, realistic fiction addressing student loans and the education system.

  • Raw Language: Inspired by authors like David Goggins ("Can't Hurt Me"), the book uses direct, uncensored language to reflect the reality of conversations in schools and homes, aiming to grab attention.

  • Math Education's Purpose: The book's premise centers on a math teacher who tells students that the main purpose of learning math isn't just to "solve for X," but to understand numbers well enough "to recognize when you're getting screwed" financially.

  • The "Debt Free Playbook": In the book, students create an app called the "Debt Free Playbook" to educate peers on how to avoid financial scams and student loan pitfalls, encouraging side hustles to fund college without debt. This concept is being adopted as the new branding for the podcast's social media channels (Instagram, Facebook, TikTok).

  • Solution-Oriented: Dr. Jordan Smith is developing a webinar and a model system to help people get out of debt quickly, aiming to pay off his own loans within three years.

• Podcast's Mission & Future:

  • The "Teach, Lead and Expire" podcast, along with its growing social media presence (all organic), aims to be a "lifeline" for people, sharing solutions on how to save money and get out of student loan debt.

  • Future plans include an app, monetization of social media channels, and working with "Internet millionaires" to structure the brand and introduce new income opportunities.

  • Download the Teach, Lead, and Inspire App, available on Apple Store, and Google Playstore