Learning the value of money is an essential ingredient in the making of a rich person. Raising your kids to be wealthy can begin at an early age, particularly when they start asking about toys or products they see on TV or in the store.
Telling them that money doesn’t grow on trees is a good start, but involving them in your family’s finances helps them learn lessons and understand the whole concept of making money.
The earlier you start them on the path to wealth the better. So here are seven ideas for raising your kids to be wealthy:
- Provide an allowance with rules. This is a good way for children to learn about budgeting. Make no exceptions. If they spend it, let them know they must wait until next week or whenever you set up the allowance. Later, you might consider opening a savings account in their name and introduce them to investing.
- Let them earn it. Whether or not parents provide allowances, kids can learn about money through earning opportunities with household chores. They will understand the time and effort it takes to make money, Northern Trust notes.
- Focus on your kids’ education. Researcher Thomas C. Corley conducted a five-year study of self-made millionaires compared to people struggling with poverty. The rich were far more involved with school. For example, he found that 83 percent of the wealthy subjects attended back-to-school night for their kids while only 13 percent of the poor did.
- Dispute the entitlement mentality. Let them know they do not have a right to something; their wants and needs depend on their efforts. Self-reliance creates their successful future, writes Steve Siebold in the HuffPost.
- Promote the idea that productive people deserve to be rich. Many kids and adults think that wealth occurs only for people born in rich families. A rich kid may have a few more doors open, but the free market allows anyone to become rich through creativity, problem solving, and serving enough people.
- Teach kids to think for themselves. They can achieve whatever they set their minds to. They might be taught what to think by well-meaning people, but that doesn’t necessarily teach them how to be wealthy. Taking their own path and reaching for the stars could run into setbacks, but the lessons learned put them on the road to riches.
- Allow your kids to excel in what they’re good at. You might have your own dreams for them, but forcing them to be something they’re not will only hinder their success, according to Joel Brown, founder of Addicted2Success.com. Pinpoint their strong points and talents, and let them enjoy the activities they love.
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