Did you know that it’s estimated that 80-88% of Millionaires are “self-made?” For those of us not born into wealth, it might be hard to understand that our kids are experiencing a much different childhood. While it may seem counterintuitive, becoming wealthy poses its new challenges when it comes to raising financially literate and responsible children. If you have peace around money, could you forget the necessity of teaching your children how to properly manage their finances? You think they will absorb the knowledge through osmosis or learn it in school? Wrong!

Actively and deliberately teaching children how to manage and invest money will help to avoid the possibility that they catch “Affluenza.” Kids may not understand the source of wealth, so it is our job to be diligent in providing guidance and understanding of the value of money.

Focus on your family values and the language you use surrounding money. Allow your children to emulate your actions by focusing ideas such as respect, responsibility, and genuine care for others. Doing so can communicate a more wholesome and healthy approach to money.

Ensure that financial conversations in your family highlight the importance of wealth beyond cash and possessions. Educate them on just how valuable non-material wealth is, emphasizing things like community contribution and mutual respect.

Parents who take the time to volunteer and believe it is important to make their communities healthier and stronger can simultaneously demonstrate to their children what it looks like to stand for something bigger.

One of the best ways to ensure that your child will be able to handle their financial future is to teach them the basics of money management. Financial goals and more importantly, a cash flow plan, are solid foundations they won’t learn anywhere else. We use percentage budgeting to guide decisions, and that investing (instead of impulsive, instant gratification spending) creates infinite returns.

Think back to your first job – there was so much more to it than earning a paycheck, right? What about team sports? Are your children helping around the house? Camps and Mission trips are another great way to instill work ethic and collaboration. Encourage your kids by exposing them to character-building life experiences.

The Bottom Line

Ultimately, the key to raising children with healthy attitudes about money comes down to conscious effort. Pausing our ambitions and daily demands to intentionally educate our kids.

Many of us learned money lessons the hard way or through self-driven education. That isn’t what we want for our children. Taking the time to discuss money with your kids in more compassionate and comprehensive ways while giving them the opportunity to learn important money lessons. No one else is going to ensure they develop solid financial values and that they don’t take their privileged upbringing for granted.  

Download our eBook on “SISS Budgeting for Kids”