Teach your children these lessons that the rich teach their children (part-1)

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Jack: Bro, tell me one thing, why are we getting richer day by day, and on the other side poor, are getting poorer day by day. How are they maintaining their wealth for the to generation?

People often say parents are the first & foremost teachers of any child. &If so, then rich people might be busy earning money, so how do they teach their kids how to be more successful than them, or rather, how to maintain that wealth?

Bob: Hey! hey! You don’t know?  Money bro! money! Expensive schools, expensive MBA, expensive coaching.

Jack: But there are lots of other upper-middle-class people, they also spent huge money on their kid’s education, but they are not? Having said that, books & theories are all the same!  (a+b)2 = a2 + 2ab + b2, same for everyone in the world, regardless of whether you are poor or rich or which part of the world you are in. Same in physics, chemistry, biology, economics & various other subjects. All fundamentals remain the same, sometimes topics change a bit.  Everyone studies the same content in school or college. In spite of that, some are rich & some are poor! why!?  There must be something that the poor don’t know & couldn’t teach their children. What is that?

Hi everyone, have you ever wondered, like Jack or Bob that what rich people teach their kids that the poor don’t, in order to become richer than them? if the answer is yes, then this article will benefit you no matter where you find yourself in life because you can still draw tremendous value from the lessons and advice the wealthy share with their kids.

 Remember –

“THERE IS NO NOBILITY IN POVERTY”

Here are some lessons that the rich teach their kids that the poor don’t. we are not saying you should teach this lesson when they are under 13-14 years.

our purpose of this article is to provide information so that you become aware of things. The rest of it is your choice.

First & most important..

1. They’re not entitled to anything

The rich know that the world can take everything away if they’re not performing, while the poor always look for someone else to take care of them.

Being born in a wealthy family definitely has its advantages. You have access to better tools, to better resources, you don’t have to worry about basic needs, but you also open yourself up to new threats that poor people don’t have to worry about. There is a lot more to lose if you’re not careful, so the pressure is always on.

It’s really important for the wealthy to teach their children that, despite them getting a head start in life, the journey ahead is long and they need to remain focused on growth, not just maintaining the pace. Whether or not they will be successful in life depends on their own actions and daddy’s money can only go so far.

Families’ fortunes where children feel entitled usually crumble in the 3rd generation.

• First, there’s someone who’s really hungry and works incredibly hard to build wealth.
• Second, their children grow up with a sense that all they need to do is maintain their wealth.
• Lastly, the 3rd generation has lost its hunger, feels entitled to success without work or sacrifice and usually spends it all stupidly.

Teaching your kids the lessons from this article will help you avoid this type of downfall.

2. Discipline

Building up from the previous point and we end up with discipline. If you are on social media or the internet, you know that: Success is the sum of small actions repeated over extended periods of time.

No matter how small of a step you make every day, give it enough time and you will reach your destination.

People are not consistent; they don’t run the course, they don’t play the long game and get distracted by shiny objects. Don’t be like them! The temptation is big to jump on a new fad and start over, but even if you start making some progress there, another shiny object will pass you by and you’ll want to follow it. That’s what keeps people from making real progress.

The rich understand this very well; they know if they are able to discipline themselves, the world will be their oyster. Since childhood, they have made their child follow some kind of discipline. Consequently, later on, they get a better shot in life than everyone else. Follow any celebrity’s Instagram story every day, and one day you will get to know.

3. Understanding how money works

This might sound basic to some of you, but there aren’t that many people who have asked themselves some of the basic questions:

• How do people make money?
• Why am I being paid this much by my employer?
• What factors determine my salary or revenue?
• How do taxes work?
• Can that be optimized?
• What needs to happen to improve my finances?

Rich parents usually make it a priority to discuss the value and importance of money in their household as soon as possible. This familiarises kids from a young age with the concept of value in exchange for services provided. They’re introduced to the household expenses and put in real-life situations where they figure out pretty quickly that money is a lot harder to earn than it seems.

On the other end of the spectrum, the poor never talk about money at home, it’s usually a secret how much money the parents earn or how that money is spent. The only time the kids hear about money is when the parents are arguing about not having enough, thus associating the entire concept with a negative feeling; consequently, they feel money is the root cause of all evil. ok, let’s discuss it in next points. That’s why, despite having more money than other people rich never update their iPhone model frequently.

4. Money is a tool, nothing more, nothing less &it’s a Good Thing

How many times have you heard people say, “money is the root cause of all evil”?

Plenty huh?! Think back of the person you heard saying that. Just see

how successful they were? How happy were they with their lives?

Poor people blame their misfortunes on the lack of money in their lives and attribute an element of negativity to the concept of money. This is because even when they get the money, it leads to more and more problems which they don’t know how to tackle.

The rich do the exact opposite. They understand that money is merely a tool, which you use to navigate life. It’s just pieces of paper & plastic with drawings on them which we exchange for material value. Nothing less, nothing more.

Stop taking money so damn personal and use it for what it was created for. Exchange it to make your life better.

It’s super similar to scissors or fire. You can cut hair or you can cook with them or you can stab yourself in the eye or burn down a civilization. Why people choose to do the latter is a major mystery to us.

Once you start thinking of money as a tool, the game suddenly changes and you will stop harming yourself with it.

5. The hardest working person in the world likely lives in poverty; hard work is not key to success 

This is one of these things people in the middle and at the top get wrong about those less fortunate than them. Some people believe all you have to do to escape poverty is work hard, nothing can be further from the truth. Hard work can feed you one day but in order to escape poverty, you need more than that. 

The problem arises when there is no proper access to the tools required to escape poverty.  If the hard work was all it took to escape poverty, the richest people in the world would be children working in the coal mine to get to your electricity.

Rich teach their kids the difference between hard work & smart work.& use of both in the right time & in the right situation makes them successful.

6.Those who say money doesn’t grow on trees never plant anything :

Fruits & vegetables are the results of someone planting a seed and caring for a tree to grow. this is true in both fiction & nonfiction senses. If you want crops or money you batter plant a seed.

Poor people think it is as 7 days wonder, but finding the right seed, digging in the ground, covering with fertile dirt, watering it & nurturing it every day is as hard as nails. Consequently don’t expect the fruit you haven’t planted.   

Rich teach their kid’s how to plant the right seed in business & in life & then how to nurture it. Cause being rich they have already done it by themselves.

7.The difference between an asset and a liability

The poor never know what is a good purchase and a bad purchase. After poor people earn money, they go ahead and spend it. That’s how you stay poor.

Let us explain in as simple terms as possible:

an ASSET = Makes you money,

while a LIABILITY = Costs you money

The problem here is, poor people never realise what counts as a liability.

For example, both the car you drive to the grocery store and the house you live in are liabilities. They do not generate any revenue for you, but demand money to keep running. Same goes, for your new iPhone, fancy clothes your flat screen tv and everything else you purchased without thinking.

The rich focus all their time and money on acquiring more assets. Buying an apartment that generates rent, writing a book that generates revenue once it’s completed, purchasing a part of a business that’s doing ok and more.

“But most rich people have fancy cars and fancy houses? Isn’t that against what you’re saying?”

Yes, they do own luxuries, but please pay very close attention because this is extremely important:

THE ASSETS pay for the LUXURIES!

Rich people never buy luxuries from their own earnings. Want a new fancy car? Figure out how to buy 2 apartments and use the rent from them to pay for the leasing for the car. That way, when you get rid of the car, you still have money coming in. This is a crucial difference in behaviour. When money starts coming in, focus on buying assets instead of spending it!

8. How to create daily habits that in the long run give them incredible advantages.

Speaking of year, if I do get time how to use it properly?

One of the most valuable skills you can teach your child is How to create a habit for himself.

Habits are amazing and once you realise how valuable they can be your life changes. It normally takes around 21 days to create a new habit & once you push through that 21-day limit, you’re off to the races. That habit becomes a part of you.

You don’t read enough? Transform reading time into a habit!

You want to get fit but never have the motivation to go to the gym. Make a habit out of it!

Same goes for work, if you make it a habit to organise and optimise your workflow large portions of your day open up for other things.

The rich use the power of habit to get ahead in life, while the poor, nurture toxic habits which leads to their lives in ruin. & if you are someone who is struggling with this, there is a book called ATOMIC HABITS by James Clear. you can read that one it’s a good read.

The power of habit is a tool, it magnifies what you feed it. The rich simply choose wealth creation actions as their daily habits, while the poor pick negative routines.

Careful what type of habits you install in your child.

9 Increase income instead of lowering expenses

How many times your dad have told you to save more money, in order to use it in future. Guess what?! “Nobody has ever become rich by saving money”. it’s just impossible!

One of the most valuable lessons a parent can teach their child is how to generate more money.

we all have the same 24 hours. It takes the same amount of effort of work to barely survive or make a fortune.

This might sound peculiar to some of you, but it’s the truth. The difference is in the approach and the knowledge you use to backup that effort.

The smarter you are from a financial perspective the least effort you have to deploy into the real world. That’s why Wall Street brokers earn so much more than miners. Who between these two do you think deploys more effort?

Poor people are always focused on lowering expenses as much as possible; to the point, that life isn’t almost worth living. Do you think the rich care about buying food by seeing the right side of the menu at any restaurant? or any paid subscription ( Netflix, Amazon prime, apple music, Spotify) for them.

Instead, the wealthy put all their attention to increasing the amount of money flowing in. they invest they take risks they always keep experiment while poor are busy figuring out where to save money. however, if you radically increase your income there’s always going to be large amounts of cash left at the end of the month

Poor people teach their kids to lower expenses while the rich focus on increasing their income.

10. How to use good debt instead of bad debt like the poor do

“Rich people got rich by using other people’s money! “

What?! are you crazy? why would other people give money to rich to become richer? but it is the truths folks!

like other thing in the world ,there are two types of debt. good & bad!

Bad debt, makes you poor while Good Debt makes you rich.

Did your parents ever mention this to you when you were growing up? Probably not.

It’s one of those lessons that the rich have figured out a long time ago. Other people and institutions will actually help you get rich quick if you know the difference between those two.

It’s all about the purpose of the debt. Poor people take out loans with the purpose of spending the money on liabilities. They borrow money to get a new car, to get a new phone, to cover necessities.

The rich only borrow money with the purpose of generating more money. Banks and investors love to lend money to this kind of projects, as long as you can clearly explain to them how their money will be safe and you will be able to pay it back.

That’s how people build skyscrapers, they don’t pay out of their own pocket for the building, not even for the land, it’s all borrowed. The bank is certain that you will be able to sell or rent the building and is willing to take that risk with you. Prove that you know what you’re doing and that you’ve done this successfully in the past.

Here are some FAQs.

Now we have covered part 1 of this series, The question we want to leave you with is: What lesson did your parents teach you that served you well in life & what lesson you have already taught your children? Leave it in the comments for other people to benefit from it. we will make sure to reply to those we find most interesting.