How To

Ways to Teach Your Children about Building Wealth

When you have young children, you’ll want to make sure you do your part as a parent. Your job is to love, educate and prepare them for the real world. One of the best ways to prepare them to be self-sufficient adults involves teaching them how to build wealth. Money is an essential part of success as an adult. If you don’t know how to manage money well, this will directly impact your quality of life. If you, as an adult, have this issue, you’ll want to rectify this so that you don’t pass it down to your children. Furthermore, you’ll want to become proactive about financial education when they’re young. Consider the following ways you can broaden their perspectives and prepare them for financial freedom in their future. 

Work Ethic & Hard Work 
It’s often stated that hard work is its own reward. This is a very true statement. Unfortunately, there are tons of people who are ridiculously lazy. As a result, their finances suffer. Teach your children that if they’d like to build wealth, they have to know that nothing will be handed to them. They’re going to have to work hard to achieve the goals and build the wealth they desire. While it might not be easy, there’s a certain level of respect that comes with earning your own. Your children will develop a high level of respect for themselves when they fully realize what they’re capable of. If someone handed you a million dollars, you’d definitely appreciate it. However, you’d appreciate it even more if you knew that you had to work for it yourself. You’d spend the money differently, You’d probably invest a certain portion of it as well. Instead of giving your children a million dollars, teach them to develop the work ethic it takes to earn and keep a million dollars. 

Sourcing 
When it comes to building wealth, you must teach your children the importance of buying low to sell high. There are so many people who have a weird relationship to money because their parents never taught them better. As a result, they feel bad for pricing products at high prices. A business is completely different from a ministry. If you were a part of a non-profit, the circumstances would be different. Alternatively, when you’re in business, one of the main goals is to profit. This is why it’s best to help your children understand the power of finding a great deal, sourcing and market value. When they’re able to create buzz and value around a specific product, they can sell it for whatever price they want. Hopefully, you’ll teach your children to avoid scamming practices. However, they should always know that they work hard and deserve to get rewarded well for their labor. This is a mindset shift. 

Systems & Processes 
If you have someone who starts a business as a solo entrepreneur, this is an incredible accomplishment. However, everything falls on them. If they’re running a food business, there’s no way they can scale the business if they’re cooking and preparing everything. This is why it’s important to implement systems and procedures. Eventually, it’ll be important to hire people who can handle the physical labour and take the business further. The process of hiring employees can be a challenging one. This is why it’s important to teach your children the importance of teamwork and getting along with others. When many people can work together to push an initiative forward, they can end up achieving amazing accomplishments from a holistic perspective. It’s also important to make sure your children understand the importance of learning how to use systems like dropshipping to their advantage. Encourage them to read about dropshipping so that they can learn the benefits of hiring someone else to take care of the logistics when it’s time to work on packaging, shipping and processing merchandise. 

Legacy 
If you own your home, once you pay it off, it is your home forever. You can keep the home within the family. Even if the children move away, you can turn the home into a rental property. As tenants rent the home and pay their monthly rent fees, this money can circulate within the family for any other investments or important purchases. As there’s a consistent flow of income from a passive source, this allows the parent to set up a legacy for themselves and their children’s future. If you’d like for the rent payments to go into a trust fund for the children’s education, this can become a part of your legacy. As your children are able to reap the benefits of what it means to establish a financial legacy to pass down, they’re more likely to repeat these practices in order to create a legacy of their own. Whether you earn $1 or $200, it’s incredibly important to become intentional with every dollar you receive. It can feed into what your legacy is for the future.

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