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How to Teach Your Kids to Be Rich

Posted on January 13, 2014

By Bill Sardi

I don’t really like the above title because it speaks of materialism over finding a purpose in life.  There will be those young people who set out, for example, to serve God as a missionary and don’t ever think of becoming rich except with “God’s riches.”  (For those who are confused on this issue, the Bible teaches the love of money, not money itself, is the root of all evil.)

Young people will handle money and it will flitter through their hands if they don’t manage it well.  And their dreams of serving God will be very limited if they don’t learn lessons about how to build and retain wealth.

An article in the Wall Street Journal (WSJ) asks how you will teach your kids to be rich, to retain wealth if your family already has it?

Wealthy parents fear their fortunes may be squandered by their children who aren’t money savvy yet.   A kid who inherits wealth is obviously far different than a self-made man.  The WSJ article cites surveys that say 51-57% of parents don’t think their kids will be ready to handle being rich till they are 25-34 years of age.

The author of the WSJ report recognizes kids have to mature emotionally and brain-wise because handling money involves abstract concepts such as inflation, purchasing power, yield, profit margin.  Those concepts are not taught in school.  But the WSJ article makes no mention of those terms.

Its author suggests kids learn about money by playing board games (Game of Life, Pay Day by Hasbro).  But the problem here is that kids are going to get the childish idea that the financial world plays by the rules.  In the real world, that is far from the truth.

I think if you are trying to teach your kids anything about money it is that there is a lot of sleight of hand going on.

Work ethic versus lifestyle by credit card

The WSJ article mentions a work ethic in passing, but then suggests kids need to learn social media too.  (Huh?)

In case no one told you, social media is a lure where the masses contribute their content (photos, articles, books) for free to websites that the websites then use to drive web traffic that produces click fees and advertising fees.  Those who participate are just pawns in the online game.  I know no one whose fortunes have risen by participation in Facebook or LinkedIn.

Online schemes versus real businesses

I think the lure of the internet and the get-rich schemes online are as deceiving as a 1-lb box of chocolates which a naïve child believes can only add a pound to your weight.

(For the rest of his article, click the link.)

Continue Reading on www.lewrockwell.com

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One thought on “How to Teach Your Kids to Be Rich

  1. Stuart Shepherd says:

    Mr. sardi- Your article is wonderful in both its' overall "heart" and in its' details (which are obviously the most important aspect of its effectiveness and which are beyond me to comment on). Very useful- especially for young people (teens to 20), under the guidance of an articulate parent or counselor. However, I'm going to question some of the finer theological points which, in the end, are ETERNALLY important and not just practically (although practical is good!). The admonition about money was for believers only (I Timothy 6:10- For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs). It does NOT say that the love of money is the root of all evil (in general) as it is commonly interpreted (and I think you agree with this). Satan is the root of all evil, and temptation/lies is how he pulls us into it (evil). Money is one. Debt is definitely one, as well, and Christ said you will not enter the Kingdom of God if you owe even one penny. He also said that it is easier for a camel to enter the eye of the needle (a structure on the city fortress that allowed entry but was quite small) than for a rich man to enter heaven and also gave the example of Lazarus, a poor beggar who kept God's commandments, entering while the rich man did not (in the worst possible way!). These seem the most relevant biblical principles to me. Holiness is most important, no matter what, and, at a minimum that includes working, not going into debt, and giving to God. Beyond that there are no specifics, while your suggestions seem very sensible to me.