Most parents want their kids to be successful in life, but never take time to teach their kids about money. Money habits should be taught from a very young age, so they become part of the child even as they grow into adults. The book Rich Dad, Poor Dad sheds some light on how sound financial advice can cultivate your child’s relationship with money into adulthood. Given the dynamic nature of the global economics, we give money lessons you should pass to your children at a young age:
Wanting money is not bad
Most children are taught at a young age that wanting and needing more money equates to greed. While being content is a necessary life skill, it should not be the reason your child settles and reins in their ambitions.
Education does not guarantee money
Most of us were told to work hard in school so we may land good jobs. But every now and again there is a master student carrying a placard in the streets, their last resort to getting a job. The harsh reality is that education does not guarantee jobs anymore. Teach your children how to turn knowledge into money.
Some of the highest earners in the world today looked around at the local problems and came up with creative solutions that they turned into money. Encourage your children to be creative thinkers and problem solvers.
Wants vs Needs
Teach them early to tell the difference between what they need and what they want. This will help them set their financial priorities straight when they grow up. The talk of liabilities and assets might be too confusing for them, but helping them draw a fine line between what needs to be spent on will come in handy.
Most successful people have mastered the art of delayed gratification – the understanding that good things take time. Do not provide every luxury your child needs without showing them how to work for it, and encouraging them to be patient when the things they need are taking time.
Encourage a reading culture
In the February issue of our magazine, the couple we interviewed for the Marriages that Last column let us in on their secret to creating a reading culture in their house.
Their sons are given an allowance for each book they read. It is a very interesting concept. Imagine your child picking a book every time they are broke (and they are constantly broke, these little ones).