However, one thing that’s missing is to teach your children entrepreneurship. Building a business involves all the lessons mentioned above, but having your children understand that they can build a business or see you do it yourself is extremely powerful. Successful businesses provide value, and entreprenuership at its best is about improving people’s lives.

I’m self-employed and have 2 children (my son is 10 and my daughter is 7), and it’s extremely important to me to show my kids that building businesses is something that they can do. It’s important to me because having your own business can give you financial freedom, greater flexibility, and the skills to be financially independent, rather than relying on a job for income.

I started my consulting business over 4 years ago, and it’s truly changed my life as well as my family’s. I’ve seen my kids shift their thinking about what they want to be when they grow up, and now they’re talking more about what kinds of businesses they want to have. That perspective is an amazing gift to be able to give my children.

At least $1.00 for charity (we have a tin in the kitchen just for that)
Some for his piggy bank for lonh-term savings
The rest in his wallet so he can buy something.

I believe this falls in line with this great post, which I will be sharing with my wife.

Thanks!

The most simplest way to start teaching your child is giving them an allowance. This will enable them to start budgeting, saving and planning for the future.

If you are in a position to help, you have an obligation to help.

It took me a while to learn that as a rule of thumb giving money to people doesn’t actually help them. Helping people out of holes they dig themselves into seems to just make them call you next time they dig themselves into a hole. I had a roommate once I needed to get rid of. She couldn’t afford to leave. I coughed up the money for her first month’s rent and security deposit–and I got her out of my house. A month later she called me up. “I got a checking account for the first time in years and I’m overdrawn. Can you help?” That time I flat out said no.

I’ve had many experiences like that, so I just don’t give money to people anymore.

I’m totally game for helping with money other ways, when there’s a surplus. Donating to certain charities seems safe. Volunteering seems safe. Giving food to the food drive seems safe. Teaching the kids to save part of their allowance in the “give to others” box so they can adopt endangered animals seems safe.

Who says this (other than a reference in Atlas Shrugged)?

If you are referring to the Biblical reference it’s worth noting that is the LOVE of money being the root of all evil, not money itself. And those are two very different things.

The LOVE of money is being addressed more by point #2 where money is not a goal. Don’t love money, if you do, it will probably make you do some stupid and crazy things, maybe even some evil things.

But I don’t see much of a belief in the world today that money itself is the root of evil (I am sure you can find a fringe minority who think anything).

The Bush reference wasn’t about money. It was about him getting his position on family name only. Note: “so you won’t get to be President of the United States because it runs in our family.”

And you are correct that could be applied to Kennedy’s as much as Bush. In fact even more so as the concept of being elected running in the family is much more prevalent there. Yet it was Bush who was used, and that was by design.

I think the overall theme is to be ‘intentional’ in training your children, and teach them to be ‘intentional’ with their actions. Being pro-active, rather than reactive, will squash many money problems before they start. Most of your ideas above speak directly to this creed of being ‘intentional’.

I also love your line, “Money does help reveal the nature of a person.” The intentionality of managing your finances is coupled with developing character in your child. Money is an amplifier of their character, and you did an awesome job of pointing that out.

The only thing I would caution my kids on more extensively is the bondage of debt. While you posted an article on when debt might be an okay thing to do, I think a heavy education on the perils of debt should be focused on, rather than focusing on what MIGHT be an okay thing to do. Humans, let alone kids, are almost ingrained to take the easy way out. By focusing on the enslavement qualities of debt, it forces them to come up with alternative solutions to their lack of money FIRST, rather than relying on debt to take care of it. This is especially true with loaning money for cars and education — something I wasn’t well-educated on in years gone by, and am now learning my lesson one student loan payment at a time for the next 3 decades!

Nice article, keep up the great work Flexo!

If you do have children they will certainly reap the rewards of your hard work, and thought beforehand.

ZFarls, I don’t think that’s a jab at the Bushes at all. They DO have a lot of money. Change the name to Rockefeller, or Kennedy, and you still have the same conclusion. We elect the president, and his term is only 4 years, so our kids will have plenty of time to see changes in the government, and their policies/laws. These lessons are bigger than any 4 year term.

I’ve got 2 small children, but as they grow I want to stress the importance of #5. I’d like them to understand that we should be conduits with our money. If we are blessed with money we should be a blessing to others as much as we can.

If they get that being generous will bring them more joy than hoarding it, that will be a great lesson learned!