Learning Generational Wealth
Nobody is born with the knowledge of how to build passive income and arrive at financial independence. It needs to be learned. Investing for children is a much broader topic than simply shoving money away for your children. It’s also about bringing them on that journey and teaching them the whys and wherefores. So, I’m going to chat about some wealth tips in this article – I believe these wealth tips will start the process of making investing for children much easier for you.
Normally, we all learn about money initially from our families. The formative learnings of wealth are very powerful things and it is often hard to break out of these beliefs, especially if these beliefs are flawed.
My childhood was full of messages like “save money in the bank”, “buy a house first”, “retire at 65 on the pension”, “work is hard” etc. I never questioned these inherited beliefs until I was in my 30s. I just knew there was something wrong with how I was thinking. So, over several years of self-education of how old-money families maintain their wealth, I began to understand the lessons and truths about how these families educated their children. In turn, I started passing on to my children the basics of what I had learned.
Teaching Generational Wealth
I probably became too avid in my approach to educating my children about investing. I took great delight in proffering amusing (?) little one-liners like “20 percent!” (referring to how much we invest each pay check) or responding to stock market news with “Oh look, stocks are cheap – time to buy up” or weaving statements like “An asset is not an asset unless it earns you money” into conversations. The children rolled their eyes or scoffed and eventually, I became convinced I was not getting through.
However, nowadays I hear these concepts being mentioned in conversation by my family and I smile quietly to myself. Some of my children now ask me for budget and investing advice. Others of them get me to help set up automated investing systems. Every now and again, they will quietly drop a dollar-figure of what they have saved up or invested or how many dividends they received, and I must admit, I’m quietly impressed.
Investing For Children – Besides the Money
Encourage your children to be unique, sassy, well educated, confident and smart.
Be open and honest to your children about your bumbling attempts at parenthood and despite this, acknowledge that they have/will turn out to be fine people – unique and significant.
Keeping it real means that when you come to teaching them about money and investing, they’ll be far more open to taking your advice and guidance on board.
Some learnings are just as important as money and investing.
- Encourage your children to gracious, poised and commit to times of personal quietness and reflection.
- Introduce your children to the effectiveness of emotional intelligence and the virtues of being wise as a serpent yet harmless as a dove.
- Also don’t forget to teach your children to be street-smart whilst never losing their dignity.
- Commit to showing your children how to bring the best out in others as this is a much wiser use of their energy than trying to change other people.
- Teach your children to be frugal, yet to seek quality. To be wise, but humble. To include others but rely on none.
- Show your children how to seek contentment punctuated with occasional bursts of happiness as this is very achievable and is the foundation to a good life.
- Very importantly, show your children by example how to be unfailingly kind to each other.
Investing For Children – Show Me the Money!
These five habits of wealth cannot be employed later in life with the same astonishing outcomes as compared to employing them from the outset of our working lives.
Thus, teach your children the power of time and how time does the heavy lifting.
Five habits of wealth are as follows:
1. Invest forever one fifth of every single dollar that comes your way.
2. Actively spend one tenth of your income on your community for its betterment.
3. Spend the rest on living with delight and quality
4. Specialize in your chosen fields of work.
5. Arise with the sun and be mindful of the moon
These five habits will quietly and inevitably make your children unostentatiously wealthy, philanthropic, significant community contributors, discerning consumers, indispensable experts in businesses and motivated healthy achievers.
Wealth is an immeasurably important servant in your children’s lives. As a result, these five habits will make your children worthy and capable administrators their own life and success.
An unwavering application of these five habits will mean their wealth is inevitable.
Investing For Children is a Social Responsibility
I regret having not taught my children these things from early childhood and embedding them soundly into their psyches – but I simply never knew the rules of money back then!
I now hand these five powerful habits across to you – not to talk about, but to do.
Your bit is to actively encourage your children to outwork the five habits into their lives in their own particular ways.
Encourage them and be their biggest champion all the way.
The beautiful thing about these five habits for your children, is that they will not only make them prosperous but all those around them prosperous too.
Wherever they go, these five habits will create growth, significance, empowerment, gratitude, loyalty and improvement for all.
Investing for children ….. there will be astounding outcomes – true story.
Cheers
