At present, it is quite crucial to give your kids a proper education on building wealth, especially if they are teenagers. As a dignified parent, it’s your duty to teach your kids about the process to increase own personal wealth.
Here are the 5 ways you can teach your kids regarding wealth building:
1. Teach delayed gratification - Choose a spare time and sit with your kids. Put a gift or reward in front of them. Let’s say you offer them a big cheese pizza. Tell them that they can have it now, or, if they can wait till you come back from office with some more, they’ll get another large pizza.
Then check what they are up to!!
Your kid(s) may immediately finish their part of the food or, you may also see that they’re sitting there and waiting for you while keeping themselves busy with other work. They’ll wait for the other large pizza. Use this exercise as frequently as possible to teach your kids about delayed gratification, and then wait for real opportunities to apply this important lesson in their lives.
2. Teach to handle own money - We all somehow give our kids a certain amount as pocket money. Let’s say it’s $20 per month. Assign your kids some task, and let them plan for it. Tell them that whoever finishes the task earlier with perfection, they’ll earn extra money as a reward. Treat it like a project work. . The kid(s) who save more than spending should be getting the biggest reward. That’ll teach them the basic importance of saving and budgeting. .
3. Teach how to live within your budget - This is the most important tip parents can give to their kids. Unfortunately, most of us don’t know how to do it. Our culture compels us exactly to do the opposite. We save less and spend way beyond our capacity. So, putting this value in our kids early is very important.
You can teach them the lesson in several ways every day. You just need some opportunities. , , . This may become hard for you as your kid may interact with the same age kid, who is getting everything he/she wants.
4. Teach how to initiate a passive income project - This lesson is very hard for your kids, as it’s a bit abstract in nature. Your children need to be more mature and patient to learn this lesson. For instance, one example of a passive income business could be cool lemonade. Let’s say you buy all the things (lemon, water, glasses, ice, sugar, salt, etc.) for $300 and put the stall in front of your lawn. Ask your kids to find out the cost of each glass of lemonade. How many glasses do you believe they can sell in a day? . Talk to them about how to increase the business. By this way, you can build a business operation mentality among your kids.
5. Teach them with fun! - Teaching your kids about finance management and wealth building may get critical because of these abstract and confusing lessons. So, you need to teach them all that stuff by making it fun filled. You can like The Game of Business, Cashflow for Kids and Monopoly. Or, support them when they’re about to open their first business. Maybe a garage sale, lemonade stand, grass-cutting service and many more! All of these businesses require hard work, proper planning, investment, marketing and execution. If you already have some real estate investments, begin involving your kids in the business.
Teaching our kids about money and wealth building can be critical at an early stage of life. Unfortunately, no educational institutions can teach it to your kids. So, it’s up to us to inform them about building wealth.