Do These 5 Things To Set Up Your Kids For Financial Success & Destroy Generational Curses
End financial struggle for you and your family
I was chatting with two guys the other day and told them the best thing they can do for their kids is set up an investment account for them the day they conceive and contribute monthly.
Maybe you find this radical or weird, but why not set your kids up to be millionaires before they're 18 or 30?
I recommend you not grant your kids access to this money early because teaching them the importance of work ethic, financial independence, and the process of building something on their own is critical.
One of the best things you can do for your kids is to raise them in modest or poor financial and economic circumstances but with enriching financial education to instill a desire to better their financial situation.
The five things below are the five things my parents did for me. If your children, nephews, nieces, or godchildren are already grown, you can still positively impact them—some of these things you might even need to start doing for yourself.
Action 1: Read a finance book at the dinner table.
I didn’t enjoy eating at the dinner table often; it was a chore. I preferred to eat alone in my room. Oh well.
We had to gather as a family and eat dinner together most days, but I’m grateful we did. Family dinner provided meaningful memories, and we always read a book at the dinner table — often about finance.
The benefit of reading finance books at the dinner table:
1: Spend quality time as a family
2: Elevate your family’s financial knowledge.
3: If you don’t know about finance, you can learn with your kids.
Action 2: Invest $25 weekly in a ROTH IRA.
You can create a ROTH IRA (post-tax individual retirement account) for your child as soon as they arrive or before!
The benefit of investing in a ROTH IRA early:
1: When your child reaches the age of 18, if the average return is 12%, you’ll have saved close to 100k, saving as little as $25 per week. If you saved $1,000 a month, your child would have close to $1,000,000 saved.
Suggestion: Once your child starts working, match their contributions. For example, they invest $100, and you invest $100.
2: If your child needs a car or decides to go to college without getting awarded scholarships, they can pay for it with cash.
Maybe they won’t go to school; they could travel, start their own business, or work a regular job and continue saving.
Either way, they’re ahead of the financial ball game.
I Watched My Mother’s Behavior
My mother also started her own investment account, which was even more important than setting us up our accounts.
It was here that I was able to observe the importance of investing in your financial health.
Remember, kids watch what you do, not what you say.
They also watch what you do for yourself.
Are you teaching your kids to prioritize their financial health, or are you teaching them to prioritize living above their means, staying in debt, avoiding financial education, etc.?
Action 3: Promote Entrepreneurship
I started earning income as soon as I understood the concept of money in elementary school.
Here are a few things I did to earn money during elementary school:
House chores
Hair modeling
Writing articles
Sell things on eBay
Lemonade stands @ the pool
Listen to leadership tapes ($5)
Read personal development books ($5)
Clean and do administrative work at my church
Eventually, I had regular jobs, too, like retail and fast food. But my first jobs were always entrepreneurial, which is why I could never stay at regular jobs for long or only work traditional jobs.
My parents strongly encouraged me to start my music teaching business at age 14, which I managed for 10+ years. The start of my music business was a significant turning point in my life because I could taste test financial independence for the first time at such a young age, which impacted my financial future indefinitely.
The benefit of promoting entrepreneurship:
1: Teach your kids to work for themselves (which equates to financial independence) instead of a traditional employer.
The government incentivizes (e.g., fewer taxes) investors and entrepreneurs.
2: Encourage your kids to be business-minded and monetize their talents and skills.
Cultivate your kids’ resourcefulness.
Action 4: Introduce your kids to wealthy people.
Not everybody knows many wealthy people, but you probably know at least one; get your kids around them.
Some people feel out of place around wealthy people; I don’t. I was inspired by wealthy individuals at a young age, thanks to my father.
My Father’s Side Gig Set Me Up For Success
My father had a side business that serviced many wealthy and educated individuals.
Every job with my father offered me more exposure to magnificent homes, luxurious decor, unique and grand artwork, and showerheads I had never seen in my life (I even saw the fanciest urinal to date).
The jobs also exposed me to new ideas, knowledge, and intellectual conversations with wealthy people.
Yes, the stuff was attractive, but what was even more attractive: was how quickly we earned $100–$200+/hour (over a decade ago); working full-time at this rate would equate to close to quarter-million dollars.
Earning this kind of money so quickly and fast at such a young age exposed me to higher levels of thinking. On top of this, I observed how easy it was for our customers to write the check.
Looking back, I ponder how minuscule the amount of money we received was compared to these people’s wealth.
My father's jobs inspired me to think differently about money.
I would never be able to work for meager wages unconsciously and be satisfied.
I knew from this point that you attract the amount of money that aligns with your level of thinking. You don’t have to become obsessed with nice stuff. Still, it’s critical to distinguish between a wealthy lifestyle, a middle-class lifestyle, and a poverty-driven lifestyle.
The benefit of introducing your kids to wealthy people:
1: Expose your kids to higher levels of thinking.
2: Introduce your kids to wealth, so they can be comfortable around it and accumulate it.
You only do as well as your highest level of thinking.
Action 5: Model healthy financial behavior.
At some point, the mask comes off, and your kids will know the truth: whether you’re good with money or bad with money.
Here’s how to model healthy financial behavior to your kids:
Live below your means.
Maintain an emergency fund.
Don’t rely on your kids for money.
Maintain solid financial boundaries.
Have more than one stream of income.
Consistently invest in your financial future (e.g., retirement).
Have open conversations about money; never shun the conversation.
Educate yourself on personal finance so that you can teach your kids.
Never use the words: “We can’t afford that.” or “That’s expensive.”
Encourage your kids to earn money instead of bumming off you all the time.
The benefit of modeling healthy financial behavior:
1: Help end the generational curse of financial ignorance across the globe by showing and teaching your children how to handle money properly.
2: If your children do better than you, hopefully, their children will do better than them, and so on.
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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.
Destiny,
Thanks so much for this article. It’s a reminder of the importance of having an emergency fund, and investing financially in my future. God bless you for sharing your unlimited knowledge and wisdom on financial education.