I often get the question “Why did you start Next Gen Personal Finance?” It usually comes after I describe an eclectic career which has found me driving shredding trucks, analyzing executive compensation packages and making investment decisions at a mutual fund company. To answer the question, you have to start with the man who would have celebrated his 88th birthday yesterday. He was raised during the Depression and forced to the countryside when the Nazis bombed his home city of London during the Battle of Britain. He didn’t talk much about his childhood yet it was easy to see how these events were seared into his psyche and explained his frugal nature. 

I have something in common with Warren Buffett when I say that I was a winner in the “ovarian lottery.” I was born into a household where sound financial habits were modeled each and every day. My Dad signed me up for a savings account at the United Jersey Bank on Hardenburgh Avenue at the age of 7 so I could deposit my weekly pay of $5 for walking the neighbor’s dog. I remember the sense of accomplishment when the teller stamped by passbook savings account and when my Dad would ask to see it that night.

A rite of passage in our household, I had a newspaper route for two years starting at the age of 12. After earning my first $1,000 in this job, my Dad taught me the magic of compound interest by encouraging me to sign up for a 5 year CD paying around 15% interest (those were the good old days!). I saw the balance in that account double and thought I was getting away with something. This was done at the bank next door to where I had my savings account which taught me the importance of comparison shopping (this was before the internet).

I knew at that time if I wanted to go to college (a degree which had eluded him), I had better become a good saver. He encouraged that behavior with his matching program where he would give me $0.50 for every $1 I would save. Looking back now, I realize there was one thing that he never told me about banks, and that was, you could actually withdraw your money from them. I didn’t get around to doing that until it was time to pay for college.

He hated debt too. Just a mortgage on his house. He paid for his cars with cash and later his employer, Barclays Bank, sprung for his own company car (he splurged with a Chevy Citation). He taught me about work ethic too. I don’t ever recall him missing a day of work and clearly the pressure of feeding and clothing six kids provided that little extra motivation. On the subject of work, he would proudly say “I never really worked a day in my life,” because he loved what he did. I saw how passion and work ethic took my Dad from bank teller to the senior executive ranks over his 40+ year career.

So back to the original question. So as you have probably figured out by now, Next Gen Personal Finance is really a tribute to my Dad, a way to honor his memory. NGPF provides me with a vehicle to serve others by sharing these important financial (and life) lessons that he taught me. 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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