Most people would agree one of the most important things a child can learn is how to responsibly handle money. Solid planning skills, strong impulse control, the capacity to delay gratification, and learning to manage expectations are all aspects of successful money management going beyond math skills. While it is unreasonable to expect the combination of these abilities to guarantee a financially easy life, a person can reasonably assert these learned behaviors to making a positive difference in life that goes beyond finances.
Like any other stereotype, the ‘spoiled rich kid’ is one stereotype the author, and resident financial advisor for Dailyworth.com
, Jocelyn Black Hodes is trying to dismantle by offering ways for wealthy families to raise their children to also become successful adults. In her article “How to Raise Rich (But Not Spoiled) Kids
,” she offers 10 tips for ways to make a difference in the lives of children who come from a different financial background. Most of these tips fall under the category of sound financial advice, but they also address the vital need that even children born into wealth need to be taught how to handle money.
The article includes ideas such as:
Invest in an education savings plan and encourage your children to explore a wide variety of higher educational opportunities
Start teaching children about money early using simple concepts and small amounts then build on these ideas as the child grows
Encourage your teen to take on a job that provides earned income and the eligibility to open a Roth IRA, as well as fostering responsibility and a strong work ethic
Financial literacy and the personal habits associated with success are good things to pass down to each generation. Teaching and encouraging these things in children also brings those benefits to the current and prior generations by reinforcing and modeling good habits. Families and communities learning together grow stronger together.
See a real-life example of parents putting sound money practices to work with their children. Watch this video
to see how children can begin building their own wealth at a young age.