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How do you get your children interested in securing their financial future?
Your children have a massive advantage, time. Time is on their side but, as young adults, they are more likely to be focused on consumption than making the most of the opportunity time presents.
So, how do you get them interested in securing their financial future? After all, no one really wants to hear a money lecture from their parents.
The answer may be to give them a personal finance book. That way, your child will be able to learn the knowledge themselves from an outside party, rather than having it imparted to them by a parent.
Just make sure you choose the right book, like the four excellent reads below. There are thousands of personal finance books out there, but very few good ones.
The Behavior Gap: Simple Ways To Stop Doing Dumb Things With Money
by Carl Richards
This is an easy read, packed full of back-of-the-napkin drawings. Richards reveals why some people repeatedly make bad financial decisions and explains how to change this behaviour. Unlike many other personal finance books, The Behaviour Gap will not tell your kids what to do with their money, rather, it will challenge their thinking, forcing them to question:
- Their relationship with money
- Their financial goals
- How they deal with their finances
The Millionaire Next Door: The Surprising Secrets of America’s Wealthy
by Thomas J. Stanley, William D. Danko
Stanley and Danko spent more than 20 years researching America’s elite before writing this book. Unsurprisingly, they found earning a high income does not guarantee you will become rich. Because if you blow your cash on fancy cars and other status objects, you are more likely to end up in debt.
Instead, the truly wealthy live below their means and increase their net worth through long-term investing. A valuable lesson for your children.
The Richest Man in Babylon
by George S. Clason
While this was written in 1926, it is a timeless classic. The book uses parables set in ancient Babylon to teach readers how to acquire money, keep it, and make it multiply. As a result, it is full of rational financial lessons such as the value of:
- Paying yourself first
- Not living beyond your means
- Controlling your expenses
- Planning for your future financial wellness
The Index Card: Why Personal Finance Doesn’t Have to Be Complicated
By Helaine Olen, Harold Pollack
The premise of this book is simple: everything you need to know about managing money can fit on an index card. It is full of practical advice and is written in an engaging way.
If you would like to have a confidential discussion about your family wealth, speak to Affinity Private Advisors today by calling 1300 769 304, emailing enquiries@affinityprivate.com.au or filling in this online form.
The information contained in this article is current as at 07/06/2022. Any advice or information contained in this report is limited to General Advice for Wholesale clients only.
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