The Titanic Money Lesson

If you had a choice, would you rather live the life of Rose from the movie Titanic… or her sister who never boarded the ship?

I’ve recently been asking people to imagine that Rose had an identical twin sister.

The sister’s life was almost identical to Rose’s, except for one thing. She never stepped onto the Titanic.

Then I ask a simple question. If you had a choice, would you rather be Rose or her sister?

Take your time to consider this question yourself. Whose life would you choose?

Logically, you might expect most people to say that they would choose the sister’s life. No tragedy. No loss. No heartbreak.

The reality is that everyone I have asked, including my eldest daughter (13), has said they would pick Rose’s life.

People feel that the event, whilst tragic, adds a notch to their life… a story!

[Side note: When I asked ChatGPT this question, it said it would pick the sister’s life.]

What has this got to do with kids and money?

I tell this story because life is about stories.

This is something worth thinking about when you talk to your kids about how to manage money.

When it comes to money, most people fall into one of two camps.

1. Spending camp:

“You Only Live Once. Spend it and enjoy it.”

There is truth in this. Life is for living.

But taken too far, we are more likely to end up financially exposed when life gets tough. In the context of the Titanic, this could be similar to living Jack’s life. Dead in the water.

2. Saving Camp:

“Be responsible. Save for the future. Don’t waste money.”

Again, there is a lot of solid rationale from those in this camp. However, in the extreme, these people are going to end up more like Rose’s twin sister, safe but without a story.

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Finding the balance

If we want our kids to build a life like Rose’s, we need to help them find a balance.

They need to enjoy their money and create experiences, but also build enough financial security to handle whatever life throws at them.

I strongly encourage my daughters to both spend and save. I want them to feel comfortable enjoying their money, whether that is on things or experiences. These moments can lead to new opportunities and memories that stay with them for life.

At the same time, I want them to build a financial foundation that gives them options in the future.

Experiences vs Lifestyle (Spending)

One idea I try to teach my daughters is this:

Treat spending as an experience, not a lifestyle.

Spending on a special meal, a great trip, or something meaningful can create memories that last a lifetime.

But when every meal, every purchase, and every holiday becomes expensive, it stops being special. It becomes normal. And expensive normal is hard to sustain.

I have been lucky enough to enjoy things like a Michelin star restaurant, flying business class, and owning a nice watch. These were great experiences and created lasting memories.

The key is that they were occasional, not every day.

Also, avoid borrowing for these experiences. Debt removes flexibility and can limit future choices.

Making future stories possible (Saving)

I also encourage my daughters to save some money for the future. I want them to have a safety net but also have their money growing. In the future, this will allow them to have more opportunities to create new stories.

My wife and I spent years saving and investing. That gave us the freedom to step away from corporate life for a period and move to Vietnam when our kids were young.

It is one of the best decisions we have ever made, and it would not have been possible without that financial foundation.

I would love my daughters to have similar opportunities when they are older.

Your child’s Titanic money choice

Life is about creating stories, both now and in the future.

The goal is not to choose between spending and saving. It is to teach our kids how to do both well.

They might not have the same short-term excitement as those who spend everything, but over time they will have more opportunities, more flexibility, and more meaningful experiences.

And importantly, they will be better prepared to handle whatever financial challenges (icebergs) come their way.

If you are not already, help your kids follow the 3 Rules of Wealth. These habits can put them ahead of most adults today.

Thanks for reading!

Will

P.S. I really appreciate all the reviews of my book Grandpa’s Fortune Fables. If you have read it, it would mean a lot if you could leave an online review (link). It really does help the book reach more families.