Can wealth be taught?
March 14, 2008 – 4:25 pmToday at lunch, a coworker mentioned that he and his wife decided to take the $300 tax rebate they’ll get for their infant son and invest it for him. I’ve been thinking about this. The situation with the tax rebates will present an opportunity for all American parents to teach their kids something about money and how to manage it.
I know we’re all supposed to go out and immediately spend the rebate on consumer goods. But—what if parents gave their young children the $300 and taught them something about investing and saving? There could be an entire generation of money-savvy Americans and prevent the need for rebates in the future.
In an article featured on MSN titled “Can you teach your kids to be rich?,” Abby Ellin addresses the importance of teaching children to manage money. According to the article, experts believe the desire to amass wealth is a mixture of genes and teachings. The article states, “it is possible to teach your kids behaviors that will increase their wealth—and that it’s never too early to start.”
According to Dr. Gabriela Cora, president of the Executive Health & Wealth Institute, the three key characteristics that most wealthy people possess are: risk-taking, creativity and perseverance. The article also quotes Frank McKinney, a self-made millionaire. He says it’s crucial for kids to see parents budget both their time and money, save money and avoid debt.
So before spending the $300 on unnecessary consumer goods, think of the impact you could have on your children’s financial stability in the future. This is an excellent article for parents. Read “Can you teach your kids to be rich?” here.
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