If you want to see your child as a millionaire in 10 to 15 years of time, then this is the time to do so. You just have to teach your kid so that he/she can learn how to accumulate money and create wealth. There are many options that can help to accumulate wealth like a millionaire. All you need to do is teach those options to your kids that can really help them understand the basics of wealth accumulation.
How to go about wealth accumulation
You learn a lot of things from the lives of millionaires and other successful people. You can impart your enriched knowledge to your kids. This can help them create a niche for themselves and can also understand the importance of having money. Read on to know how you can teach your kids to accumulate wealth and keep it for life:
Tell them the true meaning of wealth
Tell your kids that staying wealthy doesn't mean having lots of money. Being wealthy implies you have a large family, have breaks to spend quality time with your loved ones. Moreover, tell them the true definition of wealth is to live life happily and enjoy the journey joyfully throughout the life.
Say yes to the right occupation
Teach them at first to successfully complete their study and hold the degree without debt burden. Then choose the right occupation to secure your future and build wealth as well. Give them some good books on finance to follow. Try to make them understand that financial independence is root to get an establishment in the society.
Earn for wise investment not for lavish investment
Try to share some financial disaster stories as example to your kids and point out how a reckless life can ruin financial future. Most of people work hard but spend lots of money to pay off debts to maintain their extravagant lifestyle. But the wise people understand the real value of money and make a good investment of their hard earned money to increase their wealth throughout the life.
Save, save and save
Inspire your kids to save money. This is the underlining word that even the millionaires consider as their mantra. To accumulate wealth, they must have money and that can only be possible if they can save ample amount of money. So teach them to save as much as possible so that they can manage the life style and create wealth out of it. Have a good savings account which can really help them from financial disaster in their life and can help to become rich.
Maintain your money
This is really a very important to have a good wealth maintenance mentality. You must try to give lessons to your child to maintain money and keep off unnecessary expenditure. Leading a frugal life can be one of the ways to have a good bank balance. If you can try to cut short your expenses and enjoy life, then your kids will follow you and move forward to become a millionaire quite fast.
Risk takers can be the gainer
Tell them that without taking the chances, they can never reach the peak of success. And teach them how to take risks after knowing the exit strategy beforehand. This is the key to get success of all risk takers. Thus they can increase their wealth and prosperity as well.
Be happy with your old car
Tell your kids that this is really true if you want to create wealth in your life. Flaunting your money is never a sign of wealth creation. Millionaires usually don't have qualms about the car they drive. They love to keep the old car and try to buy one when they feel like. They try to spend money on the things wherein they can get better returns in life. You must also try to do this and leave your car as it is. You can repair your car and use it but if you can use the money to go for some investments, try doing that.
Build equity on your house
This is another way your kids can build wealth for their future. House matters a lot and if they have a mortgage to repay, then tell them to try doing that and build the equity on house side by side. If they default on mortgage payments, then tell them to try to take out a refinance mortgage so that they can build the equity in house and pay off mortgage loans too. Give them useful suggestions such as (a) to repair certain parts of the house and make improvements too so that they can sell it off at higher price in the future (b) leave house as it is and try to invest in profitable investments.
The above points can really help your kids to have a good financial plan as well as a solid bank balance. Just try to work out with your kids at the very initial stage of their life to deliver the knowledge on finance. Be a role model to your kids and show them how to lead life according to a budget so that they can estimate the money they need to pay and the amount they can save.