Why teach kids about money management (balancing a checkbook, using debt correctly, building wealth, giving, etc.)?
Most people think it’s because, “I want my kids to be successful when they grow up.”
I used to only think that also.
But now that is only half the reason.
Did you know that money is only a magnifier?
If you are a jerk and become rich, you’ll just be a rich jerk.
If you are already giving and get wealthy, you’ll become more giving.
Money can ruin some people.
So when you trade correctly for years and build a huge estate to pass down to your children at your death (I know we should not talk about death and taxes… but they are a major part of life) that money will:
Enhance your children
Ruin your children.
See, it’s not just about them being able to make it when they grow up. It’s also about being able to handle the money they will inherit.
Side note: If your kids have nothing to inherit, then it’s time to get on the path to creating wealth. I believe trading is the best path.
Sure you can put a date stamp on the money such as; they get 10% at age 25 and 90% at age 35. But time does not always teach life lessons.
Plus it’s a whole lot harder to teach when you are in the grave.
If you don’t believe me that money can ruin people look at the lottery winners. A very high percentage of them end up in debt or broke years later. And many have said they are “less happy” at the very end (when the money ran out), then before they won.
Money is a magnifier.
I’m not perfect, but I’ve been teaching my 6 children (and one grandchild… nothing like spoiling him and sending him home!) about money management for years.
But recently when I realized just how much each of them would get at my death and that it could ruin them if they did not grasp the concepts I was teaching my intensity rose to a whole new level.
I don’t want to set them up for failure at my death when that extra money I earned from the markets was meant to bless them.
Do you agree?
Let me know your thoughts either way on my blog here (I do read every comment):
Helping you retire on time,
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