Have Your Kids Making Money And Get It Working For Them
Parents, you finally got your kids making money and you are thinking what is the
next step in the process? Most people spend their lives working for money without ever understanding how to get their money working for them. I want to give you as parents some benefits that will come from teaching your children how to get their money working for them.Let's start with a definition. What does it mean to have your money working for you? That simply means when money you have earned goes out and starts to earn money for you without you having to do any additional work. Great idea but why should I teach my children this? The first reason is because it is what financially responsible parents do. Have you ever wondered why wealth in some families travels down from generation to generation? Think of the Kennedy's or Rockefeller's. Part of that is, parents teaching their children properly about money but also by creating streams of income that continue to pay them long after they have done the work. This is the only way to sustain wealth so teaching your kids this value can be creating wealth for generations.
The second reason is that even though money is really an unlimited resource, time is not. Most people exchange time for money. Think of your kids making money. Let's say they work 3 hours and get paid $10 per hour. After 3 hours they have made $30. What happens the other 21 hours in the day. They are not getting paid. In this scenario there are 2 ways to earn more money, work more hours or increase your hourly wage. Though you can increase your earnings this way it can't be done forever. There really are only so many hours you can work in a day and most jobs have ceilings on how much money you can make. This is not how wealth is built. True wealth building doesn't exchange time for money. It exchanges money for money.
Let's explain. If I have an investment that earns a 5% return, that means that 24 hours a day, 365 days a year my money is earning money, whether I work or not, that is how wealth is built. What then are some vehicles that kids can use to help their money earn money? To begin you can use simple things like savings accounts and CD's. These aren't the highest earning interest vehicles but will provide a safe place for money to grow. Once you have done this then you can grow into more aggressive vehicles like stocks, IRA's or other retirement vehicles. I know you 're saying, my kids making money and he's young why do I have to worry about retirement? Simple remember the real objective isn't retirement but building wealth and the sooner your children learn this the better of they will be.
by: Nicole Clemow Understanding The Role Experience Plays For Kids Making Money Benefits Of Teaching Kids About Money How Your Beliefs Impact Teaching Kids About Money What Is Hyper Activity Disorder And How Can You Save Your Children From It? Our New Baby Will Look Great In Pink! Making The Replacement To Home School For Your Child Young Children's Growth & Emotional Development Car Travel Games for Kids A Road Trip with the Children Wholesale Baby Clothes-perfect Baby Clothing Kids Best Toys For All Ages What Items To Set In The Christening Gift Basket For Baby Trying To Conceive Baby Girl - How to Increase Your Chances of Conceiving a Baby Boy