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Did you know that many people retire broke?
It's true. After a lifetime of hard work and having earned
literally hundreds of thousands of dollars, they end up with
nothing.
So where did all their hard-earned cash go? The answer is,
it passed right through their fingers.
While schools are great at teaching algebra, calculus, and
geometry... how many of us learned about the basics of
personal finance and creating financial security for
ourselves?
The truth is, the earlier you learn to handle money, the
more likely you are to manage it properly and live a
prosperous life.
So why not provide a little home schooling for your family
and teach them the basics? Here are 7 important lessons to
instill in your kids about money:
1. Save something of what you earn
Acquiring the savings habit is one of the smartest things
you can ever do.
If you're reading this now as a middle-aged parent, imagine
how much you'd have in the bank today if you'd saved 10% of
everything you'd ever earned.
(It's almost scary to think about, isn't it?)
Teach your kids to save a little of everything they earn.
2. Don't borrow what you can't pay back
Debt is one of the greatest social diseases of our time. The
price to pay for the "have now, pay later" philosophy is
that you certainly will pay later.
Debt imprisons you in a job you don't like, creates stress
and anxiety in your life, and erodes your wealth creation
program.
You will never become rich while you're in debt. Period.
Teach your kids the value of delayed gratification. "If in
doubt, go without".
3. To give is to get
Managing money doesn't mean hoarding it and locking it away
in its own purpose-built high security jail. It simply
means being careful, spending wisely, and acquiring a
regular savings habit.
Teach your kids that donating money to worthwhile causes is
a noble thing to do, and that the money returns to you in
more ways than you can imagine.
4. Money isn't evil
"Money is the root of all evil" and "filthy lucre" are
phrases you'll hear banded around.
Ignore them.
Money actually brings enormous good into the world. For
example:
- Creating wealth helps create jobs for others
- Investing in business helps to bring solutions into
people's lives by way of innovative products and services
- Acquiring a great fortune allows you to donate more money
to charity - or even start your own trust fund
Teach your kids that money is neither good nor bad - it's
what you do with it that makes the difference.
5. If you don't spend much, you can't lose much!
One of the oldest wealth-creation maxims is, "It takes money
to make money".
Unfortunately, it also takes money to lose money.
Teach your kids the value of caution when entering into
financial affairs. And let them know that many self-made
millionaires started with literally nothing.
6. Get the best price for everything you can
Your financial health is really the difference between how
much you earn and how much you spend. It therefore makes
sense not to pay any more money for something than you have
to.
Teach your kids that bargain-hunting doesn't make you a
"miser" - just a sensible individual.
7. The fast buck is your last buck
Sooner or later everyone gets offered a "surefire" method of
making a fortune, whether it's the three-card trick, a
once-in-a-lifetime investment plan, or some time-limited
business opportunity only available to a select few...
Don't fall for too-good-to-be-true scams.
Teach your kids that wealth creation is a simple and
timeless process based on common sense.
If you had learned the above principles when you were 10
years old, and had applied them every day of your life,
would you be financially healthier today?
You betcha!
Teach your kids the timeless truths of acquiring and keeping
wealth.
Knowledge truly is the most precious gift you can give.
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