What Rich Parent’s Are Teaching Their Kids About Money
Everybody has different perspectives on money. Did you know that the majority of your views on money have been taught by your parents? Did you know that there is a big difference between what rich parents are teaching kids about money, versus the middle class?
Rich parents teach different ways for kids to make money, so if you’ve ever wondered about this then here are a few points that you might find interesting.
Buy Assets, Not Liabilities: Assets put money into your pocket, liabilities take money out of your pocket. Owning a rental property puts money into your pocket every week, buying a car on credit takes money out of your pocket every week. If you spend your life focusing on buying assets, you will create a snowball effect that will eventually effortlessly pay you until you do not need to work anymore.
Its Easier For A Company To Profit, Than An Employee: The way our tax system is set up, firstly companies pay less tax than employees. Secondly companies pay tax after subtracting all their expenditure, whereas employees pay tax before see a single cent of their pay check.
The tax system is used to the advantage of the rich. What you’ll find is that the rich hide their money by owning companies, investing in companies, buying their gadgets through their companies. Through the eyes of the government the rich often look like their earning less than the middle class. How is this possible? Its because through companies, the rich can decide how much salary they are actually paid – ie. how much taxes are they going to pay, the rest of their money the keep in their companies.
One of the key lessons that the middle class always tend to teach their kids is to: study hard, go to university, get a secure job. This typically leads them to a life as an employee. Rich parents are different, they encourage their children to start companies, invest in shares and property.
So the moral of the story is this: As a parent, your own attitudes to money are important, very important, because your kids are watching and learning by example. Parents always want the best for their kids, so make sure you are setting the example for them.
David Rokhan advises parents on how to teach kids about money. For more ways for kids to make money visit teaching-kids-about-money.com.
Comments are closed