The Next Generation: Pass It On
February 27, 2007 08:30 PM EST
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comments: 14
So, now you have started. Changed your thinking and conversations around money, made those calls to get your team in gear, launched your wealth cycle and now realize—truly believe-- that your financial freedom is going to happen. Right? Once I made my plan and got into action, I never stopped learning—even today. That is why I built my coaching and mentoring programs —to share with others, with you, how I did it, what works and the guidelines that anyone can use to become a millionaire in three to five years. Here’s something many people never even think about: What about your children, or grandchildren? They don’t need your money; they need your knowledge, what you are learning along the way to your financial freedom. Give them a chance to model your behavior, and to learn how the wealthy do it. And they can start earlier than you think. Kids learn to act, lead their lives and think about money through their parents’ actions. Many kids, by the time they are teenagers, believe that credit cards are the be-all and end-all to having money easily and when they need it. It has become part of our culture. This is that cycle of debt we have been talking about here. Let’s spare them that and get them off on the right foot. The sooner we do this—change our children’s thinking and conversations about money-- the better off they will be. Here are a number of exercises you can do with your kids to get them on the road. - Talk with your kids or grandkids about money. Understand where they are coming from, what their mind-set is. And listen. You will be amazed at how much (or how little!) they already know.
- You can’t start their Wealth Accounts too early! Show them how to put a fixed percentage of their allowance, gifts and earnings into their own Wealth Accounts. Establishing this habit at a young age will make it a lifelong habit.
- Speak positively about money. Be sure to share your own positive experiences with money, and never tell your child you can’t afford something. Instead, emphasize that money choices and priorities determine your spending habits.
- Be open about the realities of business. If you child’s lemonade stand sold $10 but it cost $25 dollars to buy the goods, explain how no profit was made. Then suggest how they might do it differently next time.
- Establish “money days”. Set aside one day a month for when your children can talk with you about what they have learned, or want to know, about earning and spending money.
- Take a business trip with the family. If you already own a business or are thinking about creating a family business, then take your kids on a business trip instead of a summer vacation. It’s a tax write-off, and it gets the kids involved in learning about the business and the business world.
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Comments: 14
We've actually considered putting aside a couple thousand in Retirement IRA accounts for each of the children. They're only 8 and 2 ... but putting in that little bit now would amount to much more when they reach retirement than putting aside the same amount over and over twenty years down the line.
What do you think? Shouldn't all parents consider putting aside a small bit for their childrnen's retirement?
She replied, "that wouldn't happen, Dad, because I'd just use a card."
Now she is working in a better paying job and has alreayd tocme to me and asked how to save...
So what's the nest way for an 18 year old to start saving? High yield money market account? IRA? help!