Κυριακή 6 Ιανουαρίου 2019

What do the rich (upper class) teach their kids that the middle class don't teach?

I grew up middle class surrounded exclusively by middle class people. As an adult, I am surrounded by upper middle class professionals (doctors, lawyers, engineers, consultants, accountants, etc.). They are basically the same as middle class people but with bigger paychecks, homes and mortgages. Occasionally, I will come across someone who is likely very wealthy but doesn’t flaunt it. This is what I’ve learned from the wealthy.

  1. Time (not money) is our most precious resource; the kids (and parents) have a packed calendar at a relatively early age (my parents never scheduled or planned anything for me other than doctor’s appointments).
  2. They teach long-term thinking. What sports would you like to play next year? Where do you want to go on vacation this summer? Which college and what’s your plan for getting there? (my parents did everything last minute).
  3. There is more to becoming wealthy than getting good grades (my parents had me focus on my grades).
  4. Education is important but the wealthy invest in tutors, extracurricular activities, educational toys, privates schools and their own time to create a well-rounded and unique child .
  5. There are more career options than doctor, lawyer, or engineer (my family gave me these 3 choices). Most wealthy people that I know have nebulous titles like founder, investor, advisor leaving you wondering what they do exactly.
  6. They teach their kids about money management and investing (my parents would hide their finances from each other and me; they didn’t want me to worry about money).
  7. They stress the importance of networking (my parents emphasized working hard).
  8. Their focus is on managing and growing wealth—very different from trying to become rich (my parents stressed making a good living).
  9. They teach them about the world by showing them the world (my family vacations were mostly limited to 8 hours drive time and the occasional domestic flight).
  10. They demonstrate that money, if nurtured properly, can grow tremendously. It’s much easier to pick fruit from a mature tree than trying to plant something from a seed, but one also needs to be continuously planting new seeds. (My parents taught me to save rather than invest).
Here's a good and a simple way you can start teaching your children how to appreciate the money.

When a new movie comes out that they want to see,  ask them whether they want to see it badly enough to 1) pay $48 (for a family of 4) for a movie theater, 2) buy the DVD for $16 (on sale), or 3) rent it on Netflix for $2.50?  Discuss the pros and cons. There is value in the theater group experience and big screen. With a DVD you own it and can watch it repeatedly but you need to wait 4 months. With Netflix you are saving a ton of money. If they pick no3 you are obviously on a good way!

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