The Next Generation: Pass It On
Loral Langemeier
03/20/07 - 11:13 AM EDT
This is the latest article from Loral Langemeier, a financial coach and author. Click here for a list of her articles.
You have to get into action to become a millionaire. Once I made my plan and got into action, I never stopped learning, and that continues to today. That is why I built my coaching and mentoring programs -- to share with others 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.
1.
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.
2.
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.
3.
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.
4.
Be open about the realities of business: If your child's lemonade stand sold $10 but it cost $25 to buy the goods, explain how no profit was made. Then suggest how they might do it differently next time.
5.
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.
6.
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.
These are just for starters. It's amazing to me how easily these concepts come to kids, because they don't start out with the barriers that we grew up with. As they grow older, the discussions will get more in-depth. They will want to know more and more. You will be able share your greater knowledge as you work your way up your own learning curve, and you will find these conversations with your kids rewarding and share in their excitement, as they understand the possibilities for building a life of wealth and opportunity.
My 7-year-old son has been involved in my Millionaire Maker Plan since he was a toddler. He has his own Wealth Accounts, and now he asks every question imaginable about our direct investments. He even suggests certain companies that we should look at, especially if they make cool toys! Now my son is into the laundries we purchased. Once a week, he visits them to get the coins out of the machines and help count the money.
Pass it on. Teach and empower your kids and get them charged up about their own financial futures.
