There is a huge problem among today’s youth and young adults: they don’t know anything about money!
That’s why you find so many in their early 20′s who are deep in debt and don’t know what to do about it. Is it possible to buck this trend and teach kids how to be rich (even if you aren’t)?
There are some people who think that being rich is just something that gets passed along or that you’re born into. There are other people who think it has to be something you sincerely want for yourself and strive for based on skills you pick up throughout life. There are still others who believe being rich is as much a natural thing as it is a mindset thing.
The evidence, however, speaks for itself. Children and teens who are taught how to manage their money end up more financially secure than those who do not. It also doesn’t matter whether your family is already rich, or if you consider yourselves downright poor. People who are rich on paper can squander their money in no time flat. People who are “poor” can manage their money wisely and end up ahead in life.
One thing is clear, and that’s that we need to teach every single child that managing money is what leads to having a rich lifestyle instead of the money itself. It’s not like our kids don’t want to learn about money either. It seems like they are ready and willing to learn, it’s just up to us to nurture their thirst for knowledge.
Consider this quote:
According to Charles Schwab’s annual Teens & Money Survey, 89% of teens say they want to learn how to make their money grow.
That’s HUGE! It’s not just a matter of throwing some financial textbooks at kids and expecting them to groan about it. Kids actually WANT us to teach them how to manage money.
We all often hear kids complain that what they learn in school won’t actually apply to their lives; now’s our chance to teach something that we know can help them and they want to learn.
A very important message here is that it’s not only the “rich” who should be teaching their kids and teens how to be rich. Every single child out there, wealthy or poor, needs to know how to manage money so they can have a happier future. No, money isn’t everything — but it sure does help!
So, what are the next steps for you and your children?
No, you’re not going to pray that they win the lottery and can support you through retirement. That’s one way to become rich, but it sure doesn’t help you stay rich! You need to teach them as early as possible how to manage their money. If you aren’t sure yourself, it’s time to do the research. Grab some books on personal finance and make it a family affair!
Some Kids & Money Resources:
- 15 Ways to Teach Kids About Money
- Teaching Kids About Money! : “Cool Tools” for Training Tomorrow’s Millionaires!
- Teaching Kids About Money – Forbes.com
While you might not have been born rich yourself, you can teach your children how to be rich. It’s all about having the right mindset and financial skills in place as early as possible. Remember, kids really do want to know this stuff, so get out there and teach ‘em!
We all want our kids to be successful, but what happens when they are more successful than you could have ever imagined, even while they are still kids?
Suddenly, selling those girl scout cookies leads to starting their own bakery business. Having to raise money for a mission trip turns into a project that is so high in demand they have to work their little tails off to fulfill all the orders. Is this really good for our kids?
Before too many people think I want to squash the entrepreneurial spirits of our smallest citizens, I want to be clear that I do think it’s a good thing- with some caveats. Children need to be able to still be children. They need to laugh, learn, play and take the time they need to really grow up. There will always be time to take their entrepreneurial tendencies to the next level when they are older.
With that being said, some of these kids are just plain awesome!
Take 13 year old Leanna. She owns her own website at http://www.leannashair.com. She creates hair formulations based on an old family recipe and sells them to people all over the world. Leanna is able to bring in about $5,000 a month and expects her profits to increase substantially over the next year. Of course, this wonderful success does not come without its downsides.
“Leanna works seven days a week to keep her business going. On weekends, she makes and packages the products at home with her parents’ help.
During the week — after completing her homework — she packs boxes for the orders she receives daily on her website.”
It’s an incredibly good thing that Leanna found her niche at such an early age! It’s amazing even. Still, I can’t help but get a touch of sadness that instead of looking forward to going to ballet class or soccer practice, she often stays home to package boxes.
Obviously, her parents seem to have a good sense of what Leanna wants, and she seems wise beyond her years, but I don’t think it would be a bad thing if the family outsourced more of the packing and production so Leanna could oversee that, but still be a kid at the same time.
Leanna isn’t the only one with a taste for business at an early age. Alexis Holmes is another young girl who has successfully started her own business. Alexis learned how to bake from her Godfather. She got the idea of selling her treats to help raise money for local charities.
This is astounding -within two months of starting her business she generated revenues of $20,000! That’s enough to make struggling adult business owners cry. Alexis cites her mother, anther business woman, as being her biggest inspiration. The good news in this case is that she hires other young people to help out with the business, which is great because these are generally kids in crisis who benefit from having this positive opportunity in their lives.
Yet another young CEO is Christina Pendleton. She started out wanting to raise money for a mission trip. Christina made and sold candy, and business really took off! The orders started pouring in even after she came back from her trip. Christina is a high school senior, so it’s a great thing she’ll have this extra money for college.
All three of these young women have accomplished so much at a young age. Still, it’s important to remember that they have their whole lives ahead of them to be worried about making money. For now, the focus should stay on being young, having fun, and fueling their passions because adulthood will be here before they know it. It’s hard not to get jealous that they have it all figured out at such a young age though.