Elon Musk, Larry Page, Mark Zuckerberg, and Oprah Winfrey are just a few of the billionaires who have built their fortunes from the ground up. Who wouldn't wish for their child to become one of the world's most influential persons deep down in their hearts? As a result, the issue remains: how do you raise a successful person?
I searched the Internet for an answer, and while there is no perfect solution, there are a number of ways you may begin utilizing today to help your children become more prosperous tomorrow.
Talk to your children about money — it’s not something you can do, it’s something you should do
This isn't a sensitive subject. A youngster must understand where money originates from, what it is used for, and how to acquire it from an early age.
Try drawing their attention to the costs at a store. The child will enjoy being a part of the shopping experience. They can select an item from your shopping list and inform you of its price. Then they'll understand why a $5 toothpaste stays on the shelf while an identical one costs $1.20 is added to your cart.
Explain what you and your partner do for a living, why you and your partner go to work every day, and what a pay is.
Discuss a long shopping day or a prospective vacation from a budgetary standpoint over supper.
Send your kid to do some errands.
You don't have to let them go on their own. You can observe from a distance. These types of assignments are easily accomplished by children aged 7 to 9. If they're younger and don't know how to read properly, they can also seek assistance.
Ascertain that your child has the shopping list, understands the aim, and has the necessary funds.
Their mission is to select the things on the list while avoiding temptation. They must also compute the amount of money required and pay the cashier.
Of course, it's preferable to begin with a little project. If you don't want your family to eat nothing but chocolate for the next seven days, don't send your younger son or daughter food shopping for a week.
This form of financial instruction is used in Montessori schools all over the world. Students travel to the store to purchase items for their friends, such as fruit for lunch or ingredients for baking bread later in the day.
This can be wonderful training for parents since they get to practice stepping back and resisting the impulse to help or correct their child. When the child is able to do the work without the assistance of adults, it is considered a success.
Play games associated with the economy.
"Monopoly" and "Cashflow" are excellent board games to play because they allow players to learn about investments, assets, obligations, and taxes in a short amount of time.
If you have tiny children, play "bank," "shop," or any other game that demonstrates how the financial world works to them.
Theme parks where children act as grownups can help you take this game to the next level. Your child can "work" as a cashier, bank manager, or lender there, earning money to spend.
The theory of 3 piggy banks — the first step for setting a budget
This approach is promoted in the works of Robert Kiyosaki, author of Rich Dad, Poor Dad, and Mark Allen, author of The Millionaire Course. Your youngster will require three or four piggy banks, each of which will be used to save money for a specific purpose.
Savings: People are increasingly able to save large sums of money in order to realize their aspirations. Furthermore, the practice of saving money is thought to be beneficial when it comes to taking out future loans.
Expenses: Not many adults can be patient, and some children find it much more difficult. This piggy bank will teach the child the value of treating himself with money he or she has earned over time.
Investments: While children may not have many opportunities to build assets, you can always ask your local bank for an account that would allow them to earn interest on their money.
Charity: This piggy bank is required to teach a child that earning money isn't enough; it's also important to give back. They may, for example, use their money to feed an abandoned kitten or participate in a volunteer program.
It is up to the youngster to decide whether they want to spend or save their money for this assignment.
If this strategy appeals to you, you may begin by giving them $3 every week. They'll progressively replenish their piggy banks this way.
Under no circumstances should you say, “We can’t afford it.”
This remark is sometimes used by parents as an excuse to avoid spoiling their children. When they're standing in the middle of a store and their child begs them to buy a bunch of toys they don't need, they utter it as a last resort. Why is it preferable to leave this expression out?
It has a negative connotation to it. When a youngster hears "We can't afford this," they understand it to suggest that their parents are unhappy with what they have and that money causes them to feel bad.
It promotes passiveness. This phrase conveys the message that parents don’t have control over their lives. A more active position involves deciding whether or not to buy one thing or the other instead of allowing the amount of money in your wallet to control you.
How you should refuse the purchase in this case
"This isn't something we're looking to buy." This response touches on the parents' planning, prioritizing, and firmness.
"I'll bear in mind that you liked this toy when I go shopping for your birthday present." Present it as a gift for another occasion, such as Christmas, the New Year, or good grades, by adding, "I'll absolutely take your wishes into account."
"Let's agree that we'll only buy presents once a week," say on Saturday. It will be easier for them to wait till the weekend in this manner. It's critical to develop patience and create goals, including financial ones, as well as a strategy for achieving them.
"This is more expensive than I anticipated." This is the correct response, demonstrating that an adult budgets ahead of time.
"We'll accept it if you can find it for a lower price." For starters, this method will teach the child that the same item might have varying pricing. Second, it will prevent you from making impulse purchases.
Create a unique learning environment for the child based on their personal taste, favorite smells and sounds.
The “motivational field,” or simply “field” is a concept that was invented in 1951 by psychologist Kurt Lewin. He studied how objects surrounding people influenced their development and future life. Marketers use this term actively, but many educators and psychologists endorse creating a special motivating learning environment.
For example, psychologist Liubov Sgonnik encourages parents to learn about their children's interests and to surround them with those interests during their education. When solving complicated problems in arithmetic homework, for example, kids can eat their favorite fruit as a snack.
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