Each of us have our own attitudes towards money, but what you may know is that most of these views are taught to us by our parents and carry on throughout our entire life. Is there a difference between rich parents and working class parents? You bet there is! The lessons that they teach about ways for kids to make money couldn’t be more different.
Have you ever wondered what sort of ways for kids to make money rich parents teach their kids, that the poor don’t? Here are a few lessons which may interest you.
Buy Assets, Not Liabilities: Assets put money into your pocket, liabilities take money out of your pocket. Owning a rental property puts money into your pocket every week, buying a car on credit takes money out of your pocket every week. If you spend your life focusing on buying assets, you will create a snowball effect that will eventually effortlessly pay you until you do not need to work anymore.
Companies Win, Employees Lose: Modern society is set up to unfairly benefit the rich, and take advantage of the poor. This is obvious when you consider how our tax system is set up. As an employee we pay tax to the government first, and we get to take home the rest. Whereas companies only pay tax on what’s remaining after it has earned and spent whatever it wants.
The tax system is used to the advantage of the rich. What you’ll find is that the rich hide their money by owning companies, investing in companies, buying their gadgets through their companies. Through the eyes of the government the rich often look like their earning less than the middle class. How is this possible? Its because through companies, the rich can decide how much salary they are actually paid – ie. how much taxes are they going to pay, the rest of their money the keep in their companies.
A common them amongst the middle class is what parent’s teach their kids: study hard in school, get a college degree, work for a good company. Compare this to rich parents who like to teach their kids to invest in property, shares and start their own companies.
So if you take anything away from this article, please remember this: Pay attention to your own attitudes and behaviour towards money, because your kids will learn most of their own attitudes from you. All parents want the best for their kids, so make sure you are leading by example for their sake.
David Rokhan gives advise to parents on teaching kids about money. For more ways for kids to make money visit teaching-kids-about-money.com.