Lessons Rich Parents Teach Their Kids That The Poor Don’t || The secret to getting rich isn’t in the mechanics of money; but rather, it is in the values and level of thinking that generate it, most wealthy people have a different set of beliefs, philosophies, and strategies than those who are identified as “middle class
The self-made rich aren’t necessarily smarter than anyone else, but they have mastered some important principles that help them get ahead and stay ahead. Most importantly, they treat building wealth as a learnable skill — and it’s one that you can learn, too hence most rich people impart such skills and knowledge to their children. In this article, I am going to share with you 5 lesson rich parents teach their kids that the poor don’t,
#1 understanding the Value of Money
Rich people always come with some ingenious ideas when it comes to business and finding different ways of making money. Most successful people set themselves apart from the ordinary because they strive to nurture a financial growth mindset, for it changes the way you view money and helps you focus on seeing profitable opportunities, hence rich parents usually make it a priority to discuss the value and importance of money in their household as soon as possible and try to impart such valuable knowledge and skills to their kids and ensure they familiarize with all that from a young age.
Unlike the middle class and low-income earners, they never talk about money at home, how much money the parents earn and how that money is spent is usually a secret. The kids only hear about money when parents are arguing for not having enough hence associating the entire concept with a negative feeling.
#2 Creating Multiple Sources of Income
There are two basic forms of income: active income, in which you work for the money you make, and passive income, in which payment isn’t directly tied to the number of hours you work. Passive income includes rental property, dividend stocks, and index funds, writing a book or creating an app, all of which will bring in a steady flow of income from sales or royalties.
Rich people believe in creating many sources of income instead of relying on one source, for this will spread their risks in the case that one source becomes unprofitable, then the other sources will continue to generate some income, unlike the poor and the middle class that heavily rely on their one 9 am to 5 pm job as their only source of income. Rich kids start to learn on how to generate income from multiple sources at a tender age from their parents, and they grow up with a strong entrepreneurship mindset that will enable them to keep reinvesting their parent’s money in many industries, and also the concept of risk management.
Most Poor and middle Class believe in saving money for a rainy day, although it is of prior importance to-do so for you never know what tomorrow brings. Saving means putting money into a safe place until you want to retrieve it, and most savings accounts don’t yield high interest, so this pile of money that basically stays static — it’s not going to grow much beyond what you add.
Unlike the rich, although they know that saving money for a rainy day is of great importance, they believe more in investing their money than saving, for investing is the key to growing finances, smart investments will give you healthy returns, which you can then reinvest, such knowledge is given to rich kids by their parents at a very tender age hence when they grow up they will still remain wealthy
for they are quite aware on how to reinvest their parent’s wealth way before they are 18 years old
#4 Self Improvement
Rich people believe in teaching their kids the concept of self Improvement, 85 per cent of rich people read two or more self-improvement books per month, and only 11 per cent read for entertainment, rich people are usually passionate readers, you rarely find many mindless beach and romantic novels in their bookcases. The rich understand the significance of self-education and pushing themselves to become better in all ways. In fact, if you look at the books piled by their beds, you’ll mostly find titles on self-improvement.
#5, socializing their kids with other Successful families
Successful people socialize their kids before the age of 4. Rich people understand that surrounding themselves with other successful people is of great importance, to their growth and development of talent and most importantly, the potential to become wildly successful. The rich spend time every month getting to know other like-minded people at conferences, events and gatherings, or just grabbing coffee or a drink with someone interesting, they also teach their kids to do the same thing, for they believe it is time wisely invested, as it keeps the minds of their kids focused on success and helps them meet new people who have fresh and thought-provoking ideas.