Raise good kids – Build wealth!!! 

Raising kids and saving for the future is a challenging job. Kids often have unreasonable demands, which, from their point of view, are things they cannot do without. Still, as parents, it becomes difficult for us to understand how to raise good kids and teach them how to resist temptation and become responsible in money matters. Therefore, it is essential to start early. 

How To Fix The Challenge? 

Let us look at some solutions:

Tip#1 

Kids should be taught that an expensive vacation should not be a priority; instead, a good family time together or mixing with other cultures for better learning and experience is a great option. 

Tip#2 

They should be made to understand the value of earning while learning. There are many small and easy-to-do jobs that kids can opt for, through which they earn their daily expenses. Some of them include working in petrol pumps, retail stores, cleaning cars, farm work, tutoring, small internships or newspaper delivery. Such jobs increase their confidence and help them to network with people, along with earning. 

Tip#3 

Parents, especially working moms, should initiate a conversation regarding methods to spend and save responsibly, like how to invest the paycheck amount or use credit cards wisely. Kids must understand the value of earning, financial independence, and money management at a young age so that they do not lose interest or confidence in economic matters.

Tip#4 

Both parents and children should be able to estimate their spending capacity. It cannot be the same for all. If you can understand this limit, then life becomes comfortable. In this case, the questions to be dealt with are:

• How much is your earning?

• What are the compulsory expenses?

• Which luxury expenses can be avoided?

• What is your monthly target savings amount?

Be sure to ask these questions while raising kids and planning your finances and make the best effort to stick to the monthly savings amount. It definitely takes time for young kids and teenagers to interpret the family balance sheet. So, detailed conversations involving them are essential rather than considering it a taboo. 

The above is from the kid’s point of view. But what are the steps that a parent can take to accumulate wealth while raising children? 

• The best way is to open a new savings account for the child where small and unexpected earnings will accumulate. 

• As parents are busy with their work schedules and juggling different activities, it is possible to forget or become too lazy to deposit money in the account or even forget to do so. Therefore, automation definitely helps with this. Use a standing instruction facility in which a fixed sum of money, even if it is a minimal amount, will be debited from your account to the kid’s account, ensuring a steady process of depositing without any lag. 

• If the bank pays a reasonable interest rate higher than the standard rate, go for that type of account. 

• Investing some extra funds into high-yield and safe avenues like mutual funds is also a good idea. However, the funds should have good historical performance and a strong portfolio. 

Conclusion:

Last but not least, it is always a good idea to take the advice of professionals who will understand your needs and risk-taking capacity to ensure you are on the right track. However, both parents and children play an equally important role in building family wealth. A little effort and financial knowledge now can take you and your kids a long way towards a secured future. 

Found the advice helpful regarding how to raise good kids? Let me know your thoughts.