Almost everywhere you go, you can hear parents say: "I want to start teaching my kids about money while they're young, so that maybe they'll grow up and avoid making the same mistakes I did, maybe they'll be both wealthy and grateful." It makes sense that teaching kids about money is on almost every parent's mind.
There are several money gurus for adults (Robert Kiyosaki - "Rich Dad, Poor Dad," David Ramsey - "Total Money Makeover", David Bach - "Automatic Millionaire," to name a few). Of course, most parents with young children who are learning from these gurus eventually get around to wanting to impart this new-found wisdom to their children while they're still young.
Also, there's the huge number of conscientious parents who are in debt and who are on a path of getting rid of their debt. And then, there's the self-aware parents who have become introduced to, and may be continuing on the path of, replacing a poverty-focused mentality with an abundance mentality (e.g. The Secret, Law of Attraction, and various faith-based and secular abundance teachings).
Of course, America is very well-poised to finally leave the poverty mentality of The Great Depression, as the third or fourth generation is being born now. Finally, Americans are extricating themselves, bit by bit, piece by piece, of the deeply embedded beliefs and language of The Great Depression, which are negative and counter-productive to building financial wealth.
Maybe you read "Rich Dad, Poor Dad," and a light bulb went off about how you look at money, and now you are at a loss of how to teach your children about money. Maybe you don't yet know how money works or what ROI means, and don't have the time to go through a long learning curve, but want to capture the opportunity to teach your kids about money now while they're young.
Here are 7 key points that you must know when teaching your kids about money:
1. Financial Wealth is created when your money makes money (rather than you making money).
2. ROI means Return On Investment. It is your Return On Investment - that is, the money that your invested money makes for you - that defines your wealth (rather than your earnings or your capital gains). For more teaching on this topic, read or listen to "Rich Dad, Poor Dad," and/or play "Cash Flow 101," to learn about getting off of the Rat Race.
3. Thinking that you'll get out of debt and become wealthy when you work harder, get a raise, make more money, have greater commissions, or make some landmark profits in your stock trading account, are just lies that the 20st Century American society has created. Wealthy parents know differently. Wealth is created by ROI, which comes from having your money make more money for you.
4. Giving is part of gaining. When you have Returns On Investments, it's important to keep the flow of money circulating - by more investments, more spending and more donating (charitable giving).
5. Good children's banks have 4 parts - Investing, Donating, Spending, Long-term Savings (to buy Christmas/holiday gifts, birthday gifts, Father's/Mother's Day gifts, etc.), and properly take care of money (rather than scrunching up bills and jamming them into a tiny slot). Why 4 parts and not 3? Try dividing up Grandma's $20 bill birthday gift to little Jimmy by 3.
6. Allowance only works if you have a complete plan to teach wealth habits to your children. Allowance alone, without more, won't do it. Allowance and chores are a dangerous combination. Gratitude in children doesn't depend on whether kids have to do chores in order to get an allowance - it depends on a lot of important things, but not that.
7. Children actually ignore you when you start talking to them about money (a.k.a. trying to teach them). Children learn by doing. Children get strong wealth habits by doing the same thing over and over and over - in an interesting and creative way.
If your family's plan for teaching your children about money is lacking in any of these 7 areas, fear not. There are lots of resources on the web and in bookstores to help you get your children on a good financial wealth path.
Find the one that works for you, with your style and where you're at in life. Now you're armed with these 7 essential points to evaluate which tools will be best for you to teach wealth habits to your children, even if you're not (yet) wealthy.
Got Money You Know It
The Secret to longterm income with any Mlm business is to spot something you can get really frenzied about.If you are totally convinced that what you are doing is not only helping you but serving hundreds or even thousands of others you will never lose your enthusiasm for sharing it with everyone who you have contact with.
There are a few significantly important things to consider before smoothing the path into any multi level marketing business.I have a criteria that should be used as a guide to all parts of viability,they are Company,Product,Management,Longevity,whether Publically or Privately held and finally the compensation plan.
A Publically held company is always better as its much more transparent and open,i.e you can go on the internet and see the companies financials and who is actually running it,they really can't have anything to hide if anyone can get access to the financials of the company.With Private establishments you have no idea how they or the management are going and most importantly the compensation plan.Some are better than others as some only reward those people who got in first and pay the most to them.Other plans stretch this out evenly across hundreds or even thousands of people meaning you really get paid what you are worth.Put the sweat and hard yards in and you'll get paid that,do just a little and thats what you 'll get paid.VERY LITTLE !!
The best way of scrutinising the compensation plan is this:
There is only ever so much money that can be paid out to associates every week.If I were to ask you which of these is superior I'm sure you'd all respond the same way.Would you rather have a 30% payout or a 70% payout ? pretty easy answer right ? Wrong and this is where so many people get taken for a ride.Let me explain here.Firstly if the company is paying 70% to its members its not going to be in business for very long,industry research has it that around 30-40% is the maximum a company can pay out for any sustained period without going bust or having other fiscal challenges that threaten to remove your income stream.And as there are many example of companies that have failed throughout the last 50 years these stats are very important and relevant.So the next time someone says "you have to join abc company with me as we pay 70 % which is so much more than everyone else" you'll be able to tell them where to go.
Next is another inconspicuous piece of the puzzle.Lets say you find a company that is paying 40%, which is a good payout rate, are they paying millions every week to the top associates of the company or are they sharing that around to all ? This is another booby trap for young players.If the company is paying 80% of all commissions earned to the top 20% of associates there wont be many new people making pay checks when they get started.This creates a large casualty list and means that you need to work even harder to maintain your organisation as it grows.If the company is spreading that 80% across a larger group of associates it allows new people to earn money right out of the gate and keep them motivated longer.The rule of thumb here is that if an associate doesnt make a check in the first 1-3 months they will most likely lose motivation and interest and leave and there is statistics to prove this.I have in fact seen this many times personally in my own business.
When researching a companies products dont use sales statistics to try to prove whether a particular product is better than any other.A friend of mine tried to convince me that a certain companies product was the best because it had $50US Billion worth of sales per year and the second ranked company had only $30 Billion.Sales figures are one thing but what does the science tell us? This was a Nutritional Supplement product that has been around for years and is a highly regarded .But is it better that the rest just because of the sales figures ? NO. Seek out non biased independant scientifically based knowledge not just sales stats or any other fluff that people use to tell you "ours is better".
Longevity is another important piece of the puzzle to.NEVER EVER EVER EVER jump into the latest start up craze company that just launched and everyone is saying "get in at the top or miss out". Most of this is just junk and lies.look for a company with at least 5 years trading record ,look at the share price ,is it growing or declining ?. Is it a field that is set to grow massively in the next ten years ? eg the health and wellness industry is set to grow due to baby boomers aging.History tells us that where ever this group of people have been as they age they have created a need for products and services.Dont join an network marketing company that sells the rubix cube for example as that craze is over.
And finally dont forget to chose an industry or company with unique usable products that people need and want.
If you joined a company selling laptops do you think you'd make millions here ? Probably not, and why ? How often do you buy a new laptop ? probably every 3-4 years. return sales are the backbone to your success in any mlm company.If the product is ordered on the first of every month over and over again you'll be creating a lifetime of residual income in one of the most exciting and changing industries in the world.Good luck and my last tip.Once you have chosen your company.NEVER EVER quit ,follow this and I guarantee 100% you will build a successful business that will be around for years to come if you duplicate that down through your organisation.
Both Theresa Markham & Wealthsuccess are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Theresa Markham has sinced written about articles on various topics from Children. Theresa A. Markham, Esq. is the author of The Kids' Bank Book: How to Teach Wise Money Management to Your Children with Fun, Ease, Smiles and Laughter, an. Theresa Markham's top article generates over 8100 views. Bookmark Theresa Markham to your Favourites.