Our Kids Have No Idea How Rich We Are

Hi Scott,

My husband and I worked really hard, started a successful business, and are now in a very fortunate position. Every single dollar we have, we have earned ourselves. My question is this: how can we ensure we instil good money values in our three children? At this stage they have no idea of our financial situation. What can we do to ensure they know that money is earnt?

Thanks, Alison

Hi Alison,

Great question!

I’ve thought about this deeply, because my kids are in the same sort of boat.

(The other day my wife was in a shopping mall when our three-year-old said “Look, there’s Daddy!” My wife corrected her — “No, Daddy’s on the farm” — before looking up and seeing my smiling mug on a billboard.)

Here are three things I’ve thought about.

First, and most importantly: our kids won’t be inheriting our investments.

Instead, each of our kids will receive a ‘Barefoot Ladder’ — meaning we’ll match, dollar for dollar, whatever they can save towards a (safe) car or a house deposit. Other than that, they’re on their own.

Second, never talk about your wealth in dollar figures (kids have no context or frame of reference).

Instead, spend time talking about, and showing them, how much you enjoy working hard, and the meaning and purpose you get from the work you do. (That’s why my kids tag along to my book signings.)

Finally, when you boil the parenting thing down, all you really want is for your kids to be hardworking and kind. If they have ‘get up and go’ and are caring human beings, you’ve done your job!

The best way to achieve that isn’t by lecturing them. It’s partly by modelling these behaviours yourself, and partly by providing them with a weekly opportunity to roll up their sleeves and experience working hard, spending wisely, and giving generously.

You Got This!

Scott.