Income inequality is one of the biggest financial stories in the news today, and we're only going to hear more about it in the days, months and years to come. The rich are getting richer while everyone else is struggling to find their way. U.S. census statistics show that more than half the population is living in poverty.
What if it didn't have to be that way for our children and future generations? What if we could teach our kids to be more self-sufficient and grow up to be as rich as they want to be? It's no pipedream; it can actually happen regardless of your current financial status.
Teaching kids about money is one of the conversations that most middle class parents dread having with their children and often times avoid altogether. The wealthy, on the other hand, look forward to teaching their kids about money, because they know they are the primary creators of their kid's belief systems, and they consciously and carefully craft every belief they pass on, especially when it comes to something as important as money.
Where Parents Go Wrong
The average family unconsciously passes down the same limiting beliefs they were taught about money from generation to generation. These are the beliefs that have kept families at the same level of financial success for dozens, if not hundreds of years. The craziest part is these beliefs are rarely, if ever, questioned before they are handed down.
The majority of us are taught by our parents, teachers, coaches, ministers and other authority figures how to survive while experiencing as little pain as possible. The middle class maxim is: get a good education; find a job; get married; have kids and be grateful for what you have. Not bad advice, but it's not going to set anyone up for world-class success.
How to Raise a Future Millionaire
The most financially aware parents teach their kids the truth about money, starting with how misunderstood it is to the general public. They teach them that it's right to want to be rich; and it's also possible for anyone who thinks big. They explain how a small percentage of the people own the majority of the wealth, and that most people settle for less than their share.
World-class parents never manipulate their kids with money or use it as a weapon, lest the child learns to see money as a tool to lord over others. They educate their kids on how to make money by solving problems and enhancing the quality of other people's lives. This way the child learns to see money as a positive, productive force for good instead of a weapon of the few to use against the many.
Some other ways to teach children about money:
• Teach your kids about money from objective reality, that is the way things really are. It's a nice thought to say everyone, regardless of financial status, has access to all the good things in life. It's also naïve and untrue.
• Teach your children that right or wrong, wealth offers privileges, and the sooner they understand this, the more likely they are to do something about it.
• Teach your kids how to make their money work for them. Teach them that money is a dynamic medium of exchange for goods and services that should circulate and grow.
• Teach kids that money is something to look forward to. Teach your kids to look at money from a consciousness of freedom, possibility, opportunity and abundance. Money is not something to dread or be frightened of.
• Teach your children that having money won't make them a better person. It will however give them more opportunities.
Above all else, the most important belief parents can instill in their kids is that they are smart enough to earn all they desire. Regardless of their education level, IQ score, or performance in school, they have everything it takes to become a millionaire. No sweeter words were ever uttered from a parent to a child than "I believe in you" and "you can do it."
Teaching by Example
Every parent knows that the best way to teach your kids is by example and this especially true when it comes to money. Kids who grow up with working poor parents struggling to stay in the middle class tend to believe this is the way it's supposed to be. Money is supposed to be tough to earn and harder to keep.
Even parents who have not been the most financially successful can set an example by continuing to try and teach their kids about failure and success. Even with all the middle class societal influence raining down on kids every day, parents have an unparalleled level of power with their children that can override years of fear and scarcity programming.
Big thinking parents program their kids to dream lofty dreams and prepare them for the work it's going to take to make them a reality. They assist their kids in identifying their natural talents and interests and help them build the belief that they can create their own futures doing what they love.
In the mind of world-class parents, anything is possible, and they pass on this critical belief to their children. While the masses are content to play it safe, seek comfort and avoid pain, the great ones are living large and teaching their kids to do the same. To them, life is a game to be played boldly and fearlessly, and they always set the example for the little ones who watch their every move.