If your answer to the question 'will your kids grow up to be wealthy?' is one of the following:
"Doubt it" (hopefully you didn't say this one!)
... then you really need to read this blog in full.
Your views on whether or not your kids will become wealthy will be a big factor into whether or not they will actually become wealthy! This is all to do with how your kids brains are being programmed.
Did you know that 95% of your actions are controlled by your subconscious?
This is really important when it comes to your kids and money. Before I go into more detail about why it’s so important in terms of your kids and money, let me give you a bit more detail about the subconscious (geeky bit coming up!!)
The Importance of the subconscious
When we are actively thinking about something we are using the conscious part of our brain. This helps us learn new things and with making important decisions, like ‘what should we have for dinner tonight?’. However, most of the actions and decisions we take are actually controlled by our subconscious. In fact, 95% of actions and decisions are made without us having to ‘think’.
The subconscious controls simple things like our breathing and walking. It can also control much more important things, like driving a car. I’m sure many of you have been driving in your car and been immersed in singing along to your favourite song on the radio. Despite not focusing fully on your driving, i.e. changing gear, braking when needed and steering, you still managed to carry out these actions. Especially if you have driven the same route many times before. This is because your conscious brain has programmed your subconscious brain to take these actions with minimal effort through repetition.
The conscious brain will only be called on when there is change in emotion and a decision is required to be made. For example, if something were to run into the road whilst you were driving, your brain would go back to being fully conscious about driving so you can make a decision about which action to take to avoid harm.
The key part of this is that the conscious part of the brain programs the subconscious and then the subconscious will carry out tasks based on this programming.
What's this got to do with kids and money?
Essentially, how our kids' conscious brain programs their subconscious will determine how they feel about money and this will lead to different actions. These actions can have a material impact on how they manage and look after their money in the future.
This means that kids who believe that they will never have money or be wealthy, will be programming their subconscious to reinforce these beliefs. This means without thinking, they will take actions which will hinder their ability to become wealthy in the future. For example, they are less likely to save money as they see little point in saving. Also, they can see gambling as more attractive as it will appear to them as the only route for them to become rich. This means they are very unlikely to become wealthy in the future.
Conversely, kids that believe they will become wealthy are programming their subconscious to be wealthy. They will take more actions (without thinking) which will reinforce this mindset. For example, they see saving a bit of money now as a stepping stone on their journey to accumulating vast amounts of wealth which they see themselves as having in the future. Also, they might work a little harder at school as they know that to become wealthy they will need to get good grades. All these actions make a big difference over time.
Belief has a big impact
It’s not just about money. Having the right mindset can impact your kid's ability to achieve anything they want. I once heard a story about someone who taught Maths to underprivileged kids on Saturday mornings.
3 of the kids he was teaching, all aged 17, were very good at Maths (i.e. top 5%). He suggested they do the Maths A-level (18+) in a year, not the standard two. He explained it should be easy for them, they just needed to give it a go. If they did it a year early, they could then focus on other subjects.
They were hard-working, wanted to do well, but told him they could not possibly do a two-year course in a year. It didn't happen.
Now, fast-forward to a few years ago, his son got an A in the same exam, aged 11. His son had about the same level of ability as those kids.
The difference was his son believed in himself because his parents gave him that confidence from early on. This belief led their son to take action and soon he was just doing all the right things without thinking too hard about it (although had to work really hard to learn the topics!).
So, what do we, as parents, need to do exactly when it comes to money?
The first thing to do is believe that it is possible for your kids to become wealthy!
Don’t let any fears about your own knowledge of money, or your financial position, stop you from believing that your kids can become wealthy. They can be!
Also, don’t let any fears about your kids' academic talents or behaviours stop you from believing that your kids can become wealthy. They can be!
If you believe they can become wealthy, they are a lot more likely to believe they can be and therefore it is much more likely they will be wealthy.
Many people don’t become wealthy as they put self-limiting thoughts in their heads. This might sound soft but there is a lot of research into this. One of the best-selling personal finance books, ‘Think and grow rich!’, talks all about this.
Don’t get me wrong, just believing they will become wealthy isn’t going to make them wealthy in isolation. Believing they will become wealthy means they will take more actions (some of which will require hard work) and this will increase the chances of them becoming wealthy.
Can your kids really become wealthy?
The answer is YES!!!
To become wealthy, your kids need to believe they can be wealthy and they need to learn to follow the 3 rules of wealth:
Spend less than they receive
Invest the difference
These rules are simple but most adults don’t follow them. A lot of the reasons why they don’t follow these rules is that they don’t believe they can be wealthy and therefore their subconscious mind isn’t fully programmed to follow these rules.
If you train your kids to follow these rules from a young age then they will become wealthy as they grow up. As the third rule implies, they might not become wealthy quickly but they will become wealthy.
There are many stories of people who weren’t from wealthy parents, or didn’t have the highest paying jobs, that followed these rules and have become very wealthy. Two of the most famous stories are:
Ronald Read who grew up in an impoverished farming household in Vermont. He worked as a janitor and gas-station attendant but still amassed over $8 million by following the 3 rules of wealth.
Sylvia Bloom, child of Eastern European immigrants, grew up in Brooklyn during the Great Depression. She worked as a legal secretary and also amassed over $8 million over her long career by following the 3 rules of wealth.
This shows it is possible for anyone to become wealthy. You should believe that your kids will become wealthy too!
If you don’t know about investing (rule #2) then don’t worry, I have written lots of blogs on this topic to help. You can find them here
Remember, the focus is on becoming Wealthy not Rich! If you are not sure of the difference, please read my popular blog, Rich Kids vs Wealthy Kids
ACTION: Have a positive conversation with your kids about money today. Tell them that they can become wealthy when they are old enough if they work hard and follow the 3 rules of wealth.
Your kids can grow up to be wealthy!!!
Make sure you believe that. Then make sure you start telling them that.
Your kids can become wealthy if they work hard (and smart) and follow the 3 rules of wealth:
Spend less than they receive
Invest the difference
Also, make sure you avoid any negative links to money when you are around your kids. Make sure their subconscious brain is being programmed to see money in a positive light. It will then start taking actions to help your kids become wealthy.
All that I have said in this blog also applies to you too! Even if you are struggling with money at the moment. If you start believing you can become wealthy and start to follow the 3 rules of wealth then you too can become wealthy.
Lastly, don’t forget that it’s not just your kids that you can influence when it comes to money. If you have nieces, nephews, godchildren and kids of very close friends you can also give them a massive advantage in life by teaching them about money from an early age.
Let’s make sure the next generation grows up believing they will become wealthy.
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