| If
you had to choose between your kids making money or shaping
your kids values about money, which do you think would have
higher importance? Obviously, making money is important but
how are you establishing your children's values about money?
For our definition values about money are your attitude toward
the acquisition of wealth and the level of importance that you
place on it. The way you teach your kids to value money could
be the difference in them being just over broke to being financially
free.
You may
have heard people say and you may have even said it, I would
love to be rich. This may sound like a "value" but
in reality it's not. The true idea of creating wealth goes
beyond just making a lot of money. In fact, making a lot of
money is often the result of a shift in values that happen
well before you are ever considered wealthy. Let me give you
an example.
Enterprise
Rent-A-Car is one of the largest rent a car companies in the
world, yet it started as a vision by one man Jack Taylor who
saw a need people had for transportation when their car was
being repaired. He set out to fill this need. Early on when
he started the company his family didn't have a lot of money
so they sacrificed many things early in the company's history
and they became very frugal with their expenditures. Basically
they bought only what they needed because he needed every
dollar to keep his company going. Years later, Enterprise
is an overwhelming success and the Taylor family can now buy
whatever they want.
This is
one example of a way to value money, willing to live below
your means today as you build your wealth to a place you can
afford whatever you want. In Jack's case if he didn't believe
he would succeed he would have squandered what little profit
he made early on. So it is with you. If you are not building
towards something bigger than whenever you make a little extra
it will be spent without appreciation for its real value.
When it comes to making money, values and belief always come
before you physically see the increase in your income. The
only exception is if you play the lottery and most of those
people end up broke anyway.
How then
as parents can we teach values to our children? Having our
kids making money is great but how can we help shape their
values? The first thing is to make sure your values are in
the right place. Once you know your values help them identify
their values and begin making the changes if necessary. Below
is a simple exercise to help you determine your values about
money:
Answer
the following question: You have just been given a £5,000
bonus list the top 10 things you will do with this money.
For your children change the scenario to £500 for your
birthday. Write each answer based on the first thought that
pops into your head. Be honest with yourself as that is the
only way to change your situation.
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