How to raise a rich child, if you yourself are not rich?


Think of how your children relate to money? It is easy to guess what they exactly replicate the behavior of their parents. If you carelessly treat your own finances, you and your children will do the same.

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So if you are used to mindlessly waste my money and forced to live "paycheck to paycheck", it is likely that these problems will be transferred to your children.

Its not so important what you say about money to your children. What matters is what you do.

Exceptionally, for this reason, it is so incredibly difficult to educate in their children the right attitude towards money - after all, not all parents can manage them financially correctly.

Especially, when an avalanche of advertising and propaganda of the cult of consumption falls every day on the fragile children's world perception.

Can not teach, to do

  • If you want a secure life for your children and grandchildren, you should show them how to achieve this from childhood.
  • The only effective method is to do it on your own personal example.

From the foregoing, the question flows smoothly: Where is the best way to begin the financial education of the child ?

Use the following guidelines:

1. There is no ideal age from which to begin teaching children financial literacy. Start right now.

2. What is money?

What is money, how to earn it and to spend it correctly, why should it be saved and invested? The parents should give answers to these questions, otherwise, your child will be brought up on TV and the Internet.

3. Talk to children about money

Only in the course of discussion and joint planning of family finances will your child be able to understand how money flows, how they appear and what they spend. All family members (even the smallest ones) should be invited to the family planning meeting on the distribution of finances (for the coming month and year).

The child knows what he wants. His way to get what he wants is to ask his parents to buy

Children know well what they want. But they have no idea what it takes to get what you want. Therefore, my next recommendation sounds like this.

4.Give the child money

Let him grow practical skills in dealing with finances. Talk to him about his purchases, compare prices, bargain, look at the quality of the product and compare it with the cost. So you will lead the child to an independent decision on the need to purchase or abandon it.

5. Start a piggy bank.

Let your child put his first capital there. Later you will be able to go to the bank with him and open an account in his name (thus demonstrating the importance of the process of saving money, their savings and investment).

Summary:

  1. If you are illiterate with your own finances, your children will do the same. Life in debt is often inherited - both the debts themselves and the habit of taking them.
  2. Tell your child what money is and why they are needed. Discuss with him the family budget and be sure to involve him in planning the upcoming family expenses.