Improve Your Children's Financial Future

Entrepreneur and motivational speaker Pauly Jones talks about how he got his start in the business world, and the simple things parents can do to improve the financial future of their children.

ED GORDON, host:

Graves spoke of the importance of building in the black community. One of the people making that a reality is businessmen Pauly Jones. Jones is an entrepreneur and motivational speaker and says the principles of wealth building should be part of the basic education of African-American children. He's developed what he calls the 60K plan. It's a series workshops designed to help educate young African-American children about the importance of fiscal responsibility.

Mr. PAULY JONES (Entrepreneur and Motivational Speaker): I had the privilege to be around the big NFL football players, and I always looked and I saw how young kids looked up to them. So what I noticed is that when a little kid sees someone drive down the street in a hot car, they're like, wow, look at that, and they played a "that's my car" game, and I realized that we started mentoring people like this, but yet, most of the ones in the community were living a negative lifestyle for the dope dealer, etc., which was going to lead children into the wrong direction. So what I've done is I've gotten together entrepreneurs who are successful, who really did something positive working in business and using our minds that could have been used for wrong, but we used our minds for right, and I said, let's get together and let's teach children - inner city kids - the difference between liabilities and assets, and I believe that that is the whole difference right now why a lot of people are struggling.

When I worked and had a communications franchise, and we were turning people's telephone lines on, and one of the things that we would always notice is that the telephone was in the baby's name, and you know, we all joke and say, hey, the phone is in the baby's name, but the real deal is when they didn't pay that phone bill that that ruined that child's credit. Even though you have a checking account, you may not realize that the credit bureaus: Equifax, Experian and TransUnion are looking at your credit score. They're seeing if you're bouncing checks. They're looking at the balance, if you're keeping your car insurance payment up. Do you make late payments? Did you take the Sears credit card or the first credit card you got--which is okay to take the credit card, but did you max it out that first week and then make the minimal payments, and then they see that you have no credit worthiness, and what happens is--and I always give people this example:

When they go to buy that home, Ed, you can be making, say, $40,000, $50,000 a year. You did everything right. However, you may be living in a home that says you only make $25,000 a year because of your credit score, and the same person who may be working at, side-by-side you at your same job is now living in a house twice the size, living in the same, in a better neighborhood but paying the same on a mortgage because their credit was right, so therefore, they got a better interest rate which got them in there more.

So all I wanted to do is say, instead of teaching people how to get out of debt, I want to teach people, number one, what debt is, and then, therefore, as the child grows up and gets prepared for the world, they'll understand instantly when to write a check, when to charge, what to do, what to save, what a savings is, what a fidelity is, what a IRA is, and that's all it is. Most people don't realize that if you put the right amount of money up, you know, for their children today, that the average person can retire at 40 years old.

GORDON: Well, Pauly Jones, we salute you for not only what you've done as an entrepreneur, but taking a life lesson that benefited you and passing it on to others to benefit them and their families, and we thank you for doing that.

Mr. JONES: I thank you, Ed, and we appreciate your success too and keep up the good work.

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