First, the primary stage-the ability to hold money
Many parents are worried that their children will spend money indiscriminately, thus "depriving" their children of the opportunity to control money. For example, if you want to buy something, ask your parents for it. When children get lucky money, parents will also say "parents keep lucky money for you" and take it back in full. The disadvantage of this is that children will form the habit of reaching out when they want to spend money, and spending it all when they have money, without the planning consciousness of consumption.
The biggest problem facing children is how to spend pocket money. We can look at several rules for dealing with Rockefeller's grandson John's pocket money:
From June 1.5 to June 1, the starting salary of John's pocket money is 50 cents per week 1 USD;
2. Check the accounts every weekend. If John's financial records that week satisfy his father, his pocket money will increase by 10 cents next week.
3. Both parties agree that at least 20% of pocket money will be used for savings;
4. Both parties agree that every expenditure must be clearly and accurately recorded;
Both sides agreed that John could not buy goods or ask his parents for money without their consent.
Parents should guide children who have so much money for the first time. If parents find their children shopping indiscriminately, they should discuss with their children the bottom line of the amount that must be kept in an independent account, and then make short-term savings and consumption goals together.
At the beginning, it can be just a small goal, such as a Barbie doll, a train model and so on. And keep it for a few weeks; Then turn to a bigger goal, you have to save patiently for a few months to achieve it; In the end, it will rise to a bigger goal that needs to be saved for one and a half years to achieve. If during this period, the child is tempted by other things and fails to "hold on", then he should be responsible for his unreasonable expenses. Similarly, there will be thrifty children who pay special attention to the money in their accounts and try to reduce the expenses in their lives. At this time, parents often take some measures to encourage and guide their children to spend boldly, such as suggesting that their children invite friends to the movies, buy a pair of new sports shoes and send a bunch of flowers to their grandparents.
The advantage of doing this is that children can cultivate financial awareness of living within their means from an early age, and at the same time, they should also consider future expenditures and long-term planning. Once good habits are formed, they will benefit for life.
Second, the intermediate stage-earning ability
It is said that open source and throttling are important, and open source is more significant. More accurately, it is to cultivate children's awareness of making money, or to let children know the rules of making money, so that children can learn the rules of wealth circulation from the process of earning income. At work, we can also realize the seemingly simple truth that return is directly proportional to pay. This lesson as a child will bring them great spiritual and material wealth throughout their lives.
Rockefeller received strict family education from childhood and earned pocket money by being an "employee" for his father. He goes to the fields early in the morning to do farm work and sometimes helps his mother milk. He has a small notebook dedicated to bookkeeping. After quantifying his work, he recorded $0.37 per hour, and then settled with his father. He did it seriously and found it sacred and interesting. More significantly, Rockefeller's second, third and even fourth generations strictly followed this rule.
Third, the advanced stage-wealth knowledge
Parents should not only teach their children to spend money reasonably and make money effectively, but also teach their children some basic wealth knowledge and guide them to make some simple investments.
Now many banks have launched "children's accounts" for teenagers, which are favored by many parents. But many people only open accounts in the name of their children, and the business of depositing and withdrawing money is done by parents. In fact, parents may wish to take their children to handle some basic banking business in person, telling them why they should deposit money in the bank, why the interest rates of deposits in different years are different, how to fill in deposit certificates and withdrawal slips, how to send money to grandparents in other places, and so on.
Nowadays, many people advocate opening investment funds for children and even buying stocks, but ignore their participation. Parents can play some games of "rich dad's cash flow" with their children first, and establish the initial impression of investment from the games. Then introduce simple investment knowledge to children, such as taking them to check the net value of the fund in front of the computer and simply telling them what impact the rise and fall of the net value will have on their wealth. Parents who are familiar with stocks can also choose some company stocks that their children know, such as the production companies of televisions and refrigerators at home. These brands are all around children, and they are no strangers. You can take your children to pay attention to the relevant information of the companies you invest in. Let them know what information will make their stock go up or down, and how it will affect the funds they invest. In a subtle way, children will naturally learn simple stock investment principles.