This article aims to delve deeper into the differences in parenting employed by the rich in order to make sure their kids get a better shot at success in the long term. It will benefit you no matter where you find yourself in life because you can still draw tremendous lessons and advise the wealthy share with their kids so much to say that the right piece of advice provided early on or at the right time can make great differences in the long run. Below are 5 lessons rich parents teach their children that the poor don't.
1. Understanding How Money Works While the Poor Remain Financially Illiterate
This might sound basic to some of you but there aren't that many people who ask themselves how people make money, why am I being paid this much money by my employer, what factors determine my salary or revenue, how do taxes work, can that be optimized, what needs to happen to improve my finances?
Rich parents usually make it a priority to discuss the value and importance of money in their household as soon as possible. This familiarizes kids from a young age with the concept of value in exchange for services provided, they're introduced to the household expenses and put in real-life situations where they figure out pretty quickly that money is a lot harder to earn than it seems.
On the other end of the spectrum, the poor never talk about money at home. It's usually a secret how much money the parents earn or how that money is spent, the only time the kids hear about money is when the parents are arguing about not having enough, thus, associating the entire concept with a negative feeling.
2. They Are Not Entitled To Anything
The rich know that the world can take everything away if they're not performing while the poor always look for someone else to take care of them. Being born in a wealthy family definitely has its advantages; you have access to better tools, better resources, you don't have to worry about basic needs, but you also open yourself up to new threats that poor people don't have to worry about.
There's so much to lose if you're not careful so the pressure is always on. The wealthy need to teach their children that despite them getting a head start in life, the journey ahead is just as long and they need to remain focused on growth, not just maintaining the pace. Whether or not they'll be successful in life depends on their own actions, and daddy’s money can only go so far.
Family's fortunes where children feel entitled usually crumble in the third generation. First, there's someone who's really hungry and works incredibly hard to build wealth. Second, their children grow in a sense that all they need to do is maintain the wealth. Lastly, the third generation has lost its hunger, feels entitled to success without work or sacrifice and usually spends it all stupidly.
3. How to Be Sociable and Connect With Other People
You would think that more people would realize how important it is to be able to have a pleasant conversation with others. Successful people socialize their kids before the age of four. Not even kidding here's why; if your child gets socialized that early, other kids will want to play with them. If they behave well with other kids, other parents will want to take care of them when they play with their own children.
This has a massive snowball effect throughout life. If people like you and like being around you, this builds up and doors open up for you that otherwise wouldn't. Teachers will treat you better, you'll get access to better job opportunities, you'll make better friends. So there's an entire tree of benefits that grows from early socialization.
4. The Difference between an Asset and a Liability
The poor never know what a good purchase is and what a bad purchase is, after they earn money, they go ahead and spend it, that's how you stay poor. Let me explain in as simple terms as possible; an asset makes you money while a liability costs you money. The problem here is poor people never realize what counts as a liability, for example, both the car you drive to the town and the house you live in are liabilities, they do not generate any revenue for you but demand money to keep running. The same goes with your new iPhone, fancy clothes, your flat-screen TV and everything else you purchased without thinking while the rich focus all of their time and money on acquiring more assets, buying an apartment that generates rent, writing a book that generates revenue once it's completed, purchasing a part of a business that's doing ok and more.
5. Having Money Doesn't Make You a Better Person, It Just Solves Some of Your Problems
Surprise! Surprise!! When you're thinking of rich kids, you probably picture snotty, arrogant pricks who believe that just because they have money, they're better than everyone else but that's usually not the case. Unless you inherit that money, you probably worked your butt off to get to where you are in life.
On the road to riches, you got to understand how valuable humility can be and most rich people are very humble individuals because they never forget where they came from. These values don't get lost, humility and respect for others are some of the first lessons rich parents teach their children because they know what it feels like to be sitting on the other side.
Thanks for reading. See you in the next article.
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