Can we take steps that teach children how to make money? Is it a skill that can be taught. Many schools and parents leave this important skill to chance and just expect the child to do the right things like go to school, graduate, get a job and earn a living. However we have seen that the successfully wealthy people seem to know something. They do not only make money they make wealth and usually when you dig further they had someone, either a parent or a mentor who taught them how to think about money. Read on for some tips on raising children to make money.
- Teach them to be good at what they do – Children need to learn the art of excellence and being good at what they do. They need to learn the importance of doing as well as they can and to be encouraged to be happy and satisfied that they did just that. You can help your child on the path to self-reliance and self-esteem by having the right attitude when they take on a task whether school work, extra curricular or personal projects.
- What do your actions about wealth show – The way you view and feel about money and wealth will translate to your child. Do you see money as a necessary evil, a means to an end or a be it all in itself? How you feel about money will affect the way your child sees money and will frame her concept of wealth. Examine your thoughts and attitude to money as you will invariably pass this on to your child. You have a responsibility to raise your child to be financially responsible.
- Teach them the importance of saving – Saving is one way of making money. You earn money and you must save to make it grow. At the right age you can introduce children to the various tools available for saving. Ideally you have been doing this so it is easy to share real life examples where you can show children that saving a percentage of your money or investing in the stock market or real estate yielded results over the years. Children can not grow up believing that you spend all you earn, this is a dangerous pattern to emulate. Teach them about investments and the miracle of compound interest.
- Teach them the right role of money – Money does not buy happiness, money in itself is not to be worshipped. A hardworking man who uses his talents and skills towards his job or business should be compensated. Money enables you to provide for yourself and your family, however the pursuit of money in place of other important accomplishments should not be encouraged. We all know about several very wealthy people who loose everything in one day, or turn out to be rich and unhappy. Therefore money must be seen for what it is, a necessary tool to transact in the world but not in itself a goal to pursue over all else.
- Teach your child importance of education – Getting good grades is a basic starting point to get on the ladder to earn well. We all need to get trained and be good at what we do whether it is through a traditional or a vocational school.
- Encourage them to start a business – Starting a business is one of the sure ways to make money and build wealth. From when the child is old enough teach them and encourage them to start a small business where they can make some money. If your child likes to paint, encourage her to paint nice drawings and sell it to make money. They can spend part of it but must also save a portion of it. It teaches them early to be creative, develop marketing kills in selling and exposure to earning.
- Tell them stories – it is always helpful to share the grass to grace stories about money, tell them about your humble beginnings. Share good stories about money and share bad money lessons as well. You can tell them about Granduncle Sola who had a lot of money but spent it all, saved very little and at the end of the day had run out of money. Stories are still the best ways to teach a principle.
photo source: incultureparents, 92y.org, 123rf.com