What to Teach Kids About Money & Wealth
Passion for Wealth Creation Leads to Abundance and Happiness
Oct 2, 2009
Self-made millionaire Gill Fielding, founder of The Wealth Company and participant in Channel 4’s TV show The Secret Millionaire, said in an interview with Women in Wealth: “I was born in the East End of London with absolutely nothing – no money, no support, no education - but what that gave me was the freedom to love money.”
Why is it Important to Love Money?
The simple answer is that money leads to success, which leads to happiness and abundance which in turn leads to freedom. Children actually need to be taught that wealth creation is an exercise in achieving freedom.
To be able to embrace the concept of wealth creation and financial independence, it is important to approach money as an enabling device. Money is the oil that runs the entrepreneurial spirit.
What do Schools and Parents Teach Children About Money?
From the early years at home and school, parents and teachers teach children to count money, develop an understanding of how money is used in transactions, and perhaps teach the importance of saving and investing money.
In early childhood, kids do not learn about entrepreneurship or accumulation of wealth, the latter of which is considered a sign of greed, miserliness, selfishness and materialism. Negative connotations are traditionally attached with hoarding money.
Couple this with the fact that children almost never see adults earning money; they just see them spending it. At the supermarket, in the toy department, at the restaurant, etc. – all children ever see is a big fat wallet filled with cash or plastic paying for things demanded.
This is all most children ever learn about money: how to count it and how to spend it.
Gill Fielding, in the same interview, reiterates that: “It’s (loving money) something I think every child starts with in life, but most get it knocked out of them through education and social pressure – our whole education system seems to be determined to stop children being entrepreneurial.”
No wonder kids have zero positive associations about money.
Why Should Kids be Taught an Abundant Lifestyle?
Loving money is the first conscious step towards a life of abundance. It is estimated by the IRS that only 6% of the nation’s population holds 96% of its wealth. This is not surprising since educational institutes, religious schools and even parents don’t teach kids to love money and foster the entrepreneurial spirit.
Loving money has two-fold benefits: firstly, children will understand that the process of wealth creation is difficult and therefore to be highly valued, and second that any money earned as a result of hard work, talent and perseverance needs to be treasured and respected.
Once a child starts to develop positive connotations about money, he/she will be encouraged to try and make more of it in a positive healthy way. It is important to teach children that it is not money per se that is of ultimate value but what money enables which should be the goal.
How to Teach Kids to Think About Money in Healthy Positive Ways
- Start by throwing out all negativity associated with money. Quotes such as “money is the root of all evil” or that “money can’t buy happiness” should be discarded from common usage in the household.
- Substitute negative thoughts with positive associations about money. Tell children about the benefits derived with money – such as better health, convenience, more time to spend with family and friends, or the ability to give to those who are needy, to help a charity, and so on.
- Start talking about money in positive ways by substituting jealousy and greed associated with money to a healthy feeling of abundance and joy. When a child sees a peer with a new toy and wants that same toy, teach the child to appreciate the toy instead. Let a child play with the toy, talk about the joy, its features, its colors, its benefits, etc. Take the focus away from the jealousy-greed aspect to the appreciation-of-all-things-in-life aspect.
Let children know in no uncertain terms that earning money, creating wealth, saving and investing money are excellent qualities and in no way shameful or a sign of greed. Do this and establish a new generation whose ideas about money will stem from a positive conscious stream of thought rather than a negative one. In this way children will be naturally inclined to follow their passions on the road to wealth creation and ultimately, financial freedom and happiness.
Related article: How to Help Kids become Debt-Free Adults.
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