Financial success may or may not be within your realm of possibilities and it’s because of one important factor: your upbringing. Most of the things that you know and believe are because of what your parents, friends, and your neighbors taught you when you were little. What you know about money is usually a result of what you see your parents do or what they taught you about money and if you didn’t grow up with financially savvy parents then here are seven things you need to know!
Number 1: The Value of A Dollar
One of the most uncomfortable conversations in a poor family is any conversation that has to do with money. If you grew up in such a home, you can tell the unease that sets in any time a topic that has to do with money is brought up. That is not the case in a rich family. They are usually more open to talk about money and share their views. One of the things that the rich teach their kids that the poor do not is the value of a dollar.
What does the value of a dollar mean? Are we talking about the current exchange rate of a dollar to another currency or what? The value of a dollar is teaching kids how to earn, manage, and appreciate the value of money at a very early age. This will help them build the foundation that they need to have sound financial knowledge. Teaching kids the value of money will also help them avoid unnecessary spending and they may even learn the importance of saving money and investing.
One of the ways that the rich teach their kids about money is by placing them on an allowance. Kids do not usually know that people work for money before they have it because their parents always provide everything to them. Therefore, the rich avoid this incorrect notion about money by setting certain tasks for their kids to complete in order to earn some money. For example, they may attach a certain amount of money for some chores that their kids complete. They usually increase this amount as they grow older and the chores become more complex — this is to teach them that hard work pays.
Another way the rich teach their children about the value of money is by showing them how to save money. They encourage their kids to set aside a certain amount of their money for savings. They show them the benefits and teach them how to separate needs from wants.
Number 2: Asking For What You Want
If you grew up in a poor home, you might have watched your parents live in fear about everything especially when it comes to issues that have to do with money. Scared that the creditor would call to ask for his or her money, scared they would lose their job or scared that the stock market would crash. Watching them while growing up is a lesson on its own and it can instill the wrong impressions of money on their kids.
The rich on the other hand teach their children how to be bold and ask for what they want. For example, a rich parent may allow their children to listen to their conversations when making a sales call, from there, their children may begin to learn the importance of asking for whatever it is that they need.
The poor may teach their kids that speaking up means they are being rebellious or asking for what they want is just being stubborn. Rich parents teach their kids to always speak up for their rights because life will not give them what they want but what they demand from it. No wonder it is usually easier for a kid from a rich home to stand up in the crowd to make a presentation or boldly request what they want.
If you want to teach kids like the rich, you have to teach them that if they want to make sales, they have to make the sales call and ask for a sale. Make them see that the other person they are talking to is as human as they are and they do not have any reason to be afraid of them. The rich teach their kids to have high self-esteem and how to overcome fear. And this is one of the reasons why rich kids tend to grow up to become rich just like their parents.
Number 3: How To Build Connections
One of the things that the rich thrive on are relationships. They have learned to build solid relationships by making people feel valued and offering value to them as well. The rich teach their kids very early on the value of connection. Their kids see how they relate with others when they go out and watch how their parents make friends with important people. They start learning very early what it means to make friends with people who have influence and can help them in times of need.
The rich take their kids along whenever they are going to an important event. They see how their parents socialize and pick it up from there. When kids of rich people meet and become friends, they open up a potential relationship between their parents. The rich make their kids see this and also encourage them to do so.
Rich parents talk about the importance of having rich friends with their kids. They tell them that the company that they keep will influence the outcome of their life. They show them how to build a relationship with successful people by taking them along to any event they need to attend themselves.
Number 4: To Get Rich You Need To Solve Problems
One would think that the rich will always give their kids whatever they ask for because they have it. This is not always the case. Some rich people show their kids that they cannot always have what they want unless they work hard for it. They explain to them the need to solve problems if they want to become rich. For example, rich parents may ask their kids to perform certain tasks in the house and get paid for doing so. The kids will usually do this because of the reward that is attached and very soon, they learn that in order to receive you must give.
It is usually easy for rich kids to learn these lessons because they can see their parents following the same path. Most rich people become rich by solving problems for other people. Some become rich by solving the problem of transportation. Some are rich because they solve the problems of food while others are rich because they solve problems associated with security. Whatever the case may be, the rich make money by solving problems and they teach their kids to do the same. For instance, Jeff Bezos helps people solve the problem of buying goods online and he is getting rich connecting people to what they need. Mark Zuckerberg of Facebook is connecting people and he is getting rich solving that need. The rich do not only teach their children the importance of solving problems, they also teach them that the more important the problem you solve for people, the more money you will make. If you solve a problem that most people can solve, you may not be paid as much as someone who solves a problem that only a few people can solve.
Number 5: Loving What You Do Will Make The Journey 10X Easier
Rich parents let their children see the importance of loving what they do. They know that this is of the utmost importance. They watch their kids from their infancy and see what they love doing naturally. They help their kids develop the talents that they see them exhibiting from a small age and it becomes easier for their kids to do what they love.
They show their kids how their career affects every day of their life and the reason why they must choose their life path carefully. They also teach their kids that it is difficult to invest your time doing what you don’t have passion for. Poor kids on the other hand learn from their parents that they have to do whatever is available just to make ends meet. They end up taking jobs that they do not have a passion for and perform below their potential. Most people who work at a job but can’t wait to go home fall into this category. They are only doing it because it is helping them pay the bills and not because they love what they are doing. Rich parents teach their kids that they must be excited about going to work every day. They also teach them how to choose the job that will excite them because this is the formula for financial success and fulfillment at their job.
Number #6: Money Will Solve Most Of Your Issues
Rich parents don’t shy away from the truth when it comes to discussing money with their kids. They don’t pretend that money is not important. Poor kids grow up in a house that says that money is the root of all evil but rich kids grow up in a house that says money answers all things. The mindset of a poor kid is that money is evil and naturally, we repel what we believe to be evil. Rich kids who believe that money is important will find it easier to make more money.
Money won’t make you happy but it can help you buy the things that will make you happy. Rich people know the value of money and its importance. Most of the problems that the poor are facing today are money-related. However, they find it difficult to come to terms that money will solve most of their issues.
Money does not only help you get the things that you need, money also helps you to get more money. You need money to start a business or invest. The rich teach their kids these benefits and make them embrace the lessons about money from an early age.
Number #7: Learning How To Go From No To Yes
Most rich people know how to get what they want. They have learned how to go from getting a no to getting a yes so it’s no wonder most of them are rich. They know that people say NO only because you have not given them enough reasons to say yes. They know how to be persuasive and how to use it to sell to others. They teach their kids this integral skill at an early age.
They start teaching their kids these lessons by deliberately saying no to their request until they can give a good reason for it. They start teaching them how to negotiate and how to go from getting a no to a yes. For example, if a rich kid needs some amount to buy something, his or her parent may ask that their kid convince them to give them the money for it. This may help the kid think and be more creative with the request. Over time, they learn to develop the skill of persuasion and sales further and get more yeses than nos.
The rich also teach their kids how to deal with rejection. They teach their kids that when someone rejects them it means that the person does not know their value but that does not make them any less valuable. They teach them how to make others see the value of their offer the same way they see it.
The things that the rich and the poor teach their kids about money is important to their success!