4 ways to help you children succeed in life

"Be careful to leave your sons well instructed rather than rich, for the hopes of the instructed are better than the wealth of the ignorant." - Epictetus

Here are four basic principles that, if taught and practiced on a regular basis, will give you the desired result – a financially savvy and ready for the real world next generation.

1. Generosity matters.

Generosity is one of the best ways to gain a proper and balanced attitude towards money. Learning contentment and the ability to show gratitude will help your child be better prepared to combat upcoming financial pressures. So how do you practically teach your children the joy of giving and to appreciate what they have? Every time they earn an allowance teach them to set aside a portion for a specific cause. Maybe there is a special project in your community to which they would enjoy giving, or a family in need. Let them own this process!

2. Let them earn it.

Teaching children, even as young as four to six years old, to work for their allowance is a great way to teach them a good work ethic and to have an appreciation for the money they’ve earned. Access to “easy money” may prevent them from learning this valuable lesson. You may decide that certain responsibilities like cleaning their room, making their beds and clearing dishes from the table after dinner are just part of daily life. If they want to earn money there are specific jobs outside of the regular “life routine” they can do. Create your own “job” list, name the price for each job and let them enjoy earning the money, as long as the job is done well.

3. Teach them to save.

This is your opportunity to help them learn delayed gratification. Label three jars as Give, Save, Spend. Every time allowance is earned or birthday money is received, teach them to save a portion of that income. Savings can be used to purchase bigger items they really want but require a much larger sum of money. It can also be used for teaching investment principles.

4. Let them decide.

This is a hard one—allowing your children to make decisions with their earned money. This is only half the battle. You must also allow them to experience the consequences of bad financial decisions. No bailouts allowed! If your child wants to spend their hard-earned money on a silly toy just because they have to have something now, let them, but also teach them that the toy they really wanted can’t be bought until they save for it. This is the only way to help them understand that in life we make choices, and those choices have real consequences.