What You Need To Teach Your Kids For Them To Become Millionaires
February 6, 2019 15:11 By Fabiosa
All parents want their children to be healthy, happy, and successful. But a child needs help to grow up into a wealthy and financially responsible adult. We will tell you what you need to teach your children for them to achieve their goals and become prosperous.
Pocket money – good or bad?
Many parents don’t’ see eye to eye on this. On the one hand, you want to encourage your child, on the other hand, you risk forming a dependency. Parents often use pocket money as a reward for good behavior or good marks at school. However, psychologists believe that this approach may develop a distorted perception of money.
The main idea of pocket money is to teach the child financial responsibility, to explain the purpose and value of money, as well as to teach to plan their own expenses. Pocket money should not be used as a means of manipulation. Instead, money should help a child develop the right attitude towards it in the future.
How to teach your child good budgeting
1. Set a good example
Attitude toward money is formed until the age of 7. Until then, a child is interested in the world and closely watches parents’ behavior. If mum and dad are always fighting about money, the child will definitely notice it. So, start with revising your own attitude toward money.
2. Show the cost of things
You don’t have to lecture about it for hours. It would be better to explain how much, for example, a toy fire truck costs by helping the child get a few banknotes out of a piggy bank, going to the store together, so that the kid can hand the money to the cashier and get the toy in return.
3. Get a transparent money box
It will let the child clearly see it when the amount increases or decreases. A child will learn to understand how much money he or she has and plan expenses accordingly.
4. Teach contentment
Many teenagers compare themselves to others, so your children may want to have something to be like their friends or celebrities. Here comes the importance of a warm and trusting relationship in the family. Only in this atmosphere can you explain to a teenager that his or her bike is fully functional, and the phone is no worse than those of others.
5. Help understand how to make money
Teenagers have a lot of free time. If your child wants money, try to help him or her find a job. With your experience, you can help children turn their hobbies into profit.
Tips from wealthy people
In his book Secrets Self-Made Millionaires Teach Their Kids, Steve Siebold, a tennis player turned professional speaker, revealed what you should teach your children in order to make them rich in adulthood:
- Profitable projects take some to implement. Many people want to get rich now, but instant satisfaction of financial needs won’t make you a millionaire.
- Instill in your children a love for sports that wealthy people like, for example, golf or tennis. The author claims it can help find and establish necessary connections.
- The importance of a positive mindset cannot be emphasized enough. Teach children to enjoy the process, stress out less, and look for their own way.
Do you have your own method?
The material in this article is for informational purposes only and does not replace the advice of a certified specialist.