I often start my weekly podcast with a simple question to my guests: How did you learn about money as a kid? Who were the role models, what lessons did they teach you and are there any anecdotes that have stuck with you over the years. 

For me, it had to be my job delivering the Bergen Record six days a week in my hometown of Demarest, New Jersey. As the fifth of six children, it was pre-ordained that at the age of 12 through the age of 14, I would take on the responsibility of newspaper carrier (technical term for paper boy) I don't ever recall being coaxed into it by my parents, it just seemed a rite of passage. Each of my older siblings had done it and so would I.

As luck would have it, as the calendar struck January of 1979 and my 12th birthday, my sister Maryanne took early retirement a few months ahead of schedule so I could inherit her route. Thanks Sis! What was lucky about it? The route was large (50 homes), it was in the neighborhood, I knew many of the families and rumor had it there were some good tippers on the route. 

It had been a few years since I had been employed as a dog walker (you can read more about that here), so I was anxious to earn some money. Being a newspaper carrier had a certain routine to it. After school on Monday through Friday, pick up your papers from Mrs. Rooney's garage. Then race around the neighborhood on your bike (a Raleigh with the baskets in the back) to finish and be down at the baseball field or basketball court by 4pm. Each home had instructions on where the paper was to be left (personalized service) and wouldn't tolerate today's delivery techniques (throw newspaper from moving car). Once a week, you had "collections" which meant you had to knock on the customer's door to collect payment while hoping for a small tip too. This was a Wed./Thurs. activity as you had to pay Mrs. Rooney by Friday. 

Oh, and then there was Sunday...the enormity of the Sunday paper made said bicycle with baskets not so effective. This is where Mom and Dad showed their support  big-time. For the cost of a preparing a cup of tea at 6:30am on Sunday morning, I could get my Dad out of bed to drive me on my Sunday rounds. As a parent of two children and someone who enjoys a relaxing Sunday morning, I have a fresh appreciation for what a cool thing this was for my Dad to do. While he encouraged our independence in so many ways, he also found subtle ways to support his young entrepreneurs. 

As I think back this job became a gateway to so many important lessons:

• Importance of setting goals. I was a data geek and thought it would be cool to graph out my weekly profits from my paper route. After a few months, i settled on an annual savings goal of $1,000 which was achieved with the help of my holiday collections where many customers would provide that extra tip! My parents did a great job of setting the expectation at a young age that if we wanted higher education we would need to foot most of the bill. As early as 12...
• Power of compound interest. My dad kept a keen eye on interest rates so when the 5 year CD at the local bank hit 15%, he knew it was time to strike. I recall taking $1,500 of my paper route earnings and watching it double over that five year period. Granted inflation was quite high at that time but let's face it inflation doesn't impact a kid much.
• Customer service. Like the post office, people expected the paper to be delivered come rain or shine. Consistency mattered and tips usually followed. 
• Side hustles. Once a customer deemed you a "reliable, hard working kid interested in earning money," there was no limit to the requests. There were lawns that needed to be cut, weeds that needed to be pulled, leaves to be raked and snow to be shoveled. Four seasons of opportunity! 
• Having parents that are supportive in your endeavors makes all the difference in the world. Whether it was waking up at 6:30 any Sunday morning (and there are some cold ones in January), providing incentives to save by matching $0.50 on the dollar or giving great advice about CDs, I was truly fortunate. 

On that last point, today's my Dad's birthday. He would be 91. I like using his birthday to reflect on all the valuable life lessons he gave me and my siblings.  I started Next Gen Personal Finance as a tribute to him, a way to honor his memory. NGPF provides me with a vehicle to serve others by sharing these important financial lessons that I was fortunate to have been taught at a young age. Thank you Dad and Happy Birthday!

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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