Over the weekend, I was doing an interview with a magazine about creating wealth. They asked some really great questions. One in particular stands out and I wanted to share it and my response with you today. They asked:
What are the top three things parents need to teach their kids about money? And why? So here’s my answer:
1) Money is not evil.
There are so many mind viruses about money being evil floating round the world today that kids need some counterprogramming on this. Money is is a tool. One that can be used for good or bad. Donald Trump was an obnoxious bore before he got rich, and he’s an obnoxious bore now. Bono cared for his fellow man before he got rich, and it’s more apparent now. Money doesn’t change you – it simply reveals who you are.
2) Money and material things don’t buy you happiness.
It’s okay (and probably a good thing) to teach your kids that money doesn’t buy happiness. But make sure you also teach them that poverty doesn’t buy happiness either! Money and material things provide self-expression, which can contribute to your happiness.
3) You control your own prosperity.
This is really the reason I wrote Risky Is the New Safe. So people would really understand - you must take personal responsibility for your own prosperity. Your prosperity is not determined by the government, your boss, markets, or the economy. These things can influence it, but ultimately you control it by the choices you make in response to the situations you face.
It’s never too soon to start teaching your kids about money. And these three lessons are a great place to start.