7 Ways to Teach Your Kids About Money This Summer
Steve Siebold, author of How Rich People Think, and a self-made multi-millionaire who has interviewed more than 1,200 of the world’s wealthiest people over the past 30 years, offers this advice for teaching kids about money this summer:
- No entitlement mentality allowed. It’s okay to help your children out financially, but giving them every dollar for everything teaches children to have an entitlement mentality. Help your children out, but encourage them by the age of 15 to find a part time job to teach them they have to earn money and not just expect it. You can also start early by tying an allowance to chores.
- Teach your kids about money from objective reality. It’s a nice thought to say everyone, regardless of financial status, has access to all the good things in life. It’s also naïve and untrue. Explain how a small percentage of the people own the majority of the wealth, and that most people settle for less than their share. This isn’t an elitist way of thinking. You’re teaching your kids to see the world through the eyes of objective reality, the way society really is.
- Wealth brings privilege. Right or wrong, wealth offers privileges, and the sooner kids know it, the more likely they are to do something about it. When you dangle that carrot in front of the rabbit long enough, he’s going to find a way to get it.
- Make it grow. Teach your kids how to make their money work for them. Teach them that money is a dynamic medium of exchange for goods and services that should circulate and grow. Teach them that saving is good, but finding ways to make their existing money grow is even better. Teach them that the best way to make more money is to find problems to solve.
- Get excited about money. Teach kids that money is something to look forward to and to look at it from a consciousness of freedom, possibility, opportunity and abundance, not something to dread or be frightened of. Teach your kids to set their expectations high when it comes to money because you often get what you expect. If you expect to make $30,000 a year, that’s what you’ll make. But if you expect to make $500,000, you might not make exactly $500,000 but you’ll be thinking big and in the right frame of mind to make a lot of money.
- Money doesn’t equal happiness. Having money won’t make you a better person; it just gives you more opportunities. If you’re not happy without money, you’re not going to be happy with money.
- Any child can strike it rich. Above all else, the most important belief parents can instill in their kids this summer is that they are smart enough to earn all they desire. Regardless of their education level, IQ score, or performance in school, they have everything it takes to become a millionaire. No sweeter words were ever uttered from a parent to a child than “I believe in you” and “you can do it.”