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QuestionerHey Warren and Charlie, I'm Neil Narona. I'm 13 years old and from San Francisco. I want to know is there any way that kids can develop the delayed gratification skill?
WarrenI'll take that because I'm a specialist in delayed gratification. I've had a lot of time to delay it. And my answer is that they sort of come out of the womb with the delay gratification thing, or they come out of the womb where they have to have everything right now. And I've never been able to change them at all. So we identify it, we don't turn it in. It's interesting, if you think about, we'll take it to a broader point, but if you think of a 30-year government bond paying 3%, and you allow for, as an individual, paying some taxes on the 3% you'll receive, and you'll have the Federal Reserve. have the Federal Reserve Board saying that their objective is to have 2% inflation. You'll really see that delayed gratification, if you own a long government bond, is that, you know, you get to go to Disneyland and ride the same number of rides 30 years from now that you would if you did it now. The low interest rates for people who invest in fixed dollar investments really mean. I mean that you really aren't going to, you know, get, have, eat steak later on if you eat hamburgers now, which is what I used to preach to my wife and children and anybody else that would listen many years ago. So it's, I don't necessarily think that, that for all families in all circumstances, that saving money is, is necessarily the best thing to do in life. I mean, you know, if you really, if you really tell your kids they can, whatever it may be, they never go to the movies or we'll never go to Disneyland or something of the sort, because if I save this money 30 years from now, you know, we'll be able to stay a week instead of two days. I think there's a lot to be said for doing things that bring you and your family enjoyment rather than trying to sever every time. So I advise, delayed gratification is not necessarily an unqualified course of action under all circumstances. I always believed in spending two or three cents out of every dollar I earn, saving the rest. But I really, I always had everything I wanted. I mean, one thing you should understand. If you aren't happy having $50,000 or $100,000, you're not going to be happy if they have $50 million or $100 million. I mean, a certain amount of money does make you feel, and those around you feel better, just in terms of being more secure in some cases. But loads and loads of money, I've probably known as many rich people, was just about anybody. I do not, I don't think they're happier because they get super rich. I think they are happier when they don't have to worry about money. But you don't see a correlation between happiness and money beyond a certain place. So don't go overboard on delayed gratification.