Elon Musk, Larry Page, Mark Zuckerberg, and Oprah Winfrey – The world is full of stories of billionaires who started from scratch and achieved incredible success!
Who would not hope, deep down in their heart, that their kid would become one of the most powerful people in the world? So the question remains: how does a person rise to success?
We searched the internet for an answer, and while there is no perfect solution, there are many techniques you can start using today to help your kids be more prosperous tomorrow.
7. Talk To Your Children About Money — It’s Not Something You Can Do, It’s Something You Should Do
This is not a taboo subject. From an early age, the child must know where the money comes from, what it is used for, and how it can be earned.
In a store, try to focus your attention on prices. The child will be happy to be an active part of the purchase process. They can choose something from their shopping list and say how much it costs. So, they’ll understand why, for example, a $ 5 toothpaste stays on the shelf while a similar $ 1.20 toothpaste fits into their cart.
Explain what you and your partner do at work, why you go to the office every day, and what the salary is.
Over dinner, talk about a long shopping day or future vacation from a financial perspective.
6. Send Your Kid To Do Some Errands
You don’t have to let them go alone. You can stay and watch. Children between the ages of 7 and 9 can perform these types of tasks effectively. They can also ask for help if they are younger and still cannot read properly.
Make sure your child has the shopping list, knows the goal, and has the money.
Your task is to choose the products from the list and try not to be distracted by temptation. They also need to calculate how much money is needed and pay at the till.
Of course, it is better to start small. Don’t send your youngest son or daughter shopping for an entire week, unless you want your family to eat only chocolate for the next 7 days.
Montessori schools around the world practice this method of financial education. The students go to the store and buy products for the rest of their classmates, such as fruit for lunch or ingredients to make bread at the end of the day.
For parents, this can be excellent training because they practice escaping and avoiding the need to help or correct their children. The task is completed successfully when the child can do everything autonomously, without interference from adults.
5. Play Games Associated With The Economy
“Monopoly” and “Cash flow” are excellent board games, as their participants can quickly learn about investments, assets, liabilities, and taxes.
If you have young children, try playing “bank,” “store,” or any other game that illustrates how the financial world works.
Theme parks where kids pretend to be adults can help you take these types of games to a new level. There, your child can “work” as a teller, bank manager, or creditor and earn money they can spend.
4. The Theory Of 3 Piggy Banks — The First Step For Setting A Budget
Robert Kiyosaki, author of Rich Dad Poor Dad, and Mark Allen, author of The Millionaire Course, promote this concept in their books. Your child will need 3 or 4 piggy banks, each of which will save money for a different purpose.
Savings: progressively, people can save large amounts of money to realize their dreams. In addition, the habit of saving money is considered good practice for taking out future loans.
Expenses: Not all adults know how to be patient, and for some children, it is even more difficult. This piggy bank will allow the child to understand how rewarding it is to deal with the money that he has earned over time.
Investments: Children don’t have much of a chance to build assets, but you can always ask your local bank for an account that allows them to accumulate interest on their savings.
Charity: this piggy bank is necessary to teach a child that earning money is not enough; it is also good to give back. For example, they can use their money to feed an abandoned kitten or help with a volunteer program.
For this task, it is up to the child where he would like to spend or save their money. If this method sounds good to you, start by giving them about $ 3 a week. That way, they will fill their piggy banks gradually.
3. Under No Circumstances Should You Say, “we Can’t Afford It.”
Some parents use this phrase as an excuse to avoid spoiling their children. They say this as a last resort when they are in the middle of a store and your child begs you to buy him a bunch of toys that they don’t need. Why is it better to omit this expression?
It is loaded with negativity. When the child hears: “We can’t afford it,” they interpret that their parents are not satisfied with what they have and that money triggers negative emotions.
It promotes passivity. This phrase conveys the message that parents have no control over their lives. A more active position involves deciding whether or not to buy one thing or another, rather than allowing the amount of money in your wallet to control you.
2. How You Should Refuse The Purchase In This Case
“We are not here to buy this.” This response refers to planning, prioritization, and firmness on the part of the parents.
“I will remember that you liked this toy and will keep that in mind when I go to buy your birthday gift.” Or alternatively present it as a gift for another event like Christmas, New Year, or for good grades, saying, “I will definitely take your wishes into consideration.”
“Let’s agree that we will buy gifts only once a week”, like on Saturday, for example. That way, it will be easier for them to wait until the weekend. It is essential to learn to be patient and set goals, including financial ones, and plan how to reach them.
“It costs more than I planned to spend.” This is the correct answer that proves that the adult plans their expenses in advance.
“If you can find it at a better price, we’ll take it.” First, this approach will help the child understand that the same item may be priced differently. And second, it will allow you to avoid impulse purchases.
1. Allow Yourself To Be A Lazy Parent, At Least Sometimes
The moment you are not making breakfast, following a schedule, or monitoring your child’s homework, you will find a blank that you may want to fill with household chores. Instead, relax.
Let your kids do the work. This will open up new opportunities for them to become independent and take initiative. The older the child, the more complicated tasks they can perform.
Any child between 6 and 7 years old, for example, is perfectly capable of feeding the cat, cleaning their shoes (and yours too), washing clothes, and emptying the dishwasher. It turns out that many parents do not know or believe this is true.
In conclusion, let them do some tasks because independence is one of the essential components of success, especially in financial matters.
What educational secrets do you use to make sure your child thrives in the future? Write it!