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Tips to Help Your Kids Start on The Right Path to Financial Prosperity

# Buy a piggy bank for your younger children. Allow them to choose whatever colour shape or size they wish. Invite them to put their pennies into their piggy bank. Occasionally they may count their pennies and reward themselves if they want.

# Once they have proved themselves adept to handling their pennies, take them to open their own bank accounts. Most major high street banks and building societies have special savings accounts for kids. Depending on their age group, they may be offered some incentives e.g. fun packs, money-off vouchers for CDs, DVDs, computer games, etc.

# Many kids think, “money grows on trees”. Let them know that YOU working brings about this paper and metal stuff called money. Whether or not you work or you have inherited a large fortune, do not encourage laziness in your child. I am sure there are loads of chores around the house, washing the dishes, cleaning the rooms, etc. Give your kids an allowance but let them work for it. They also need to be able to work for free sometimes to learn the value of hard work.

# Many relatives nowadays tend to give money for birthdays and Christmas especially for the over 10s. At this age, their tastes are constantly changing (what a 12 year old and a 60-year-old see, as being “the in thing” is usually very different!) Encourage them to save 10% of their money gifts. If they are older and have a paper round or something similar, again encourage them to save 10 % of their earnings. This may be only a small amount but it is a good habit to get into. If you are reading this now, as a middle-aged parent, imagine how much you would have in the bank today if you had saved 10% of everything you had ever earned. Scary stuff!

# Managing money does not mean hoarding it and locking it away forever. It simply means being careful, spending wisely, and acquiring a regular savings habit. Teach your kids that donating money to worthwhile causes is a noble thing to do. This could be to the local hospice, the homeless, or to a charity of their choice. This would help them become more rounded, more respectful of others regardless of the situation and become more appreciative of their own lives and their own prosperity. They would learn that the money returns to you in more ways than you could imagine.

# Encourage your child to purchase a journal or a diary where they can record their dreams and desires. This allows them to dream big and look forward to their lives ahead-filled with prosperity. There is nothing wrong with accumulating wealth to fulfil these desires. Money is not evil!

# “Filthy lucre” and “Money is the root of all evil” are phrases you will often hear people say. Ignore them. Money actually brings enormous good into the world. Creating wealth helps create jobs for others. Investing in business helps to bring solutions into people’s lives by way of innovative products and services. Acquiring a great fortune allows you to donate more money to charity – or even start your own trust fund. Therefore, as you can see money is neither good nor bad – it is what you do with it that makes the difference.

# One of the oldest wealth-creation maxims is, “It takes money to make money”. Unfortunately, it also takes money to lose money. Teach your kids the value of caution when entering into financial affairs. Remember the golden rule of any high-risk venture. Only invest what you can afford to lose. Moreover, let them know that many self-made millionaires started with literally nothing.

# Debt is one of the greatest social diseases of our time. The price to pay for the “have now, pay later” philosophy is that you certainly will pay later. Unfortunately, some high street banks have contributed to this philosophy. My own bank had posters in the branch stating “why wait, have it now!” Debt imprisons you in a job you do not like, creates stress and anxiety in your life, and erodes your wealth creation program. You will never become rich while you are in debt. Teach your kids the value of delayed gratification. “If in doubt, go without”.

# Your financial health is really the difference between how much you earn and how much you spend. It therefore makes sense not to pay any more money for something than you have to. Teach your children that bargain hunting does not make you a miser just a sensible individual. If you see the same item in two different shops with a 20 pounds price tag difference, from whom are you going to make the final purchase?

# Eventually everyone is offered a “sure-fire” method of making a fortune, whether it is the three-card trick, an once-in-a-lifetime investment plan, or some time-limited business opportunity only available to a select few… Always check these “opportunities” with a fine toothed comb. Do not part with any money and remember – if it is too-good-to-be-true it is usually is. Teach your kids that wealth creation is a simple and timeless process based on common sense.