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…