When it comes to children, it’s important to develop a way to introduce the concept of preserving wealth early, and build strong foundational financial values at a young age.
Most children receive little formal or experiential education in managing money or household finances until they become adults. These lessons could begin earlier under a 'fail, work, wait' approach.
Fail early
Failure makes a great teacher.
Allow a child to fail and he or she will learn valuable lessons, such as that failing isn’t the end; it’s merely a setback that can be overcome.
Failing forces people to wrestle with and appreciate such indispensable concepts as preparation, execution, logic, analysis, creativity and even problem solving and experimentation. Trial and error often leads to breakthroughs.
As an example: if a child leaves her science project at home, parents shouldn’t rush over to school to deliver it on time; let her learn a painful lesson.
She might be upset at the time, but chances are strong that thereafter she’ll remember to bring what’s important with her. And the experience likely will open new paths toward responsibility and accountability.
Work for it
Nothing teaches the value of a pound like the sweat equity given to earn it.
Children in wealthy households may have a more difficult time coming to this realisation if they are never given the opportunity to work at a young age.
Thus, it behooves families to encourage children to work, and feel the sense of accomplishment a day’s work — even an hour’s work — affords.
Working at a job over the summer teaches youths responsibility, cooperation, diligence and independence, among other lessons. Even teenagers who aren’t yet 16 can find meaningful work.
In the UK, hours and jobs that youths can work are determined by age, days of the week and local bylaws.
Children can also volunteer and learn many of the same values that summer jobs teach. Many organisations in the US and the UK set age restrictions for insurance purposes, but at home and with close parental supervision, children of all ages can help.
As early as two, a child can sort items and fill containers, and thus would be able to pack food for families in need.
Similarly, preschoolers could fill backpacks with school supplies for underprivileged children. In elementary school, children can donate books and start book drives.
By middle school, children can learn to use tools under supervision and assemble bookshelves or other simple projects.
Such projects can build self-esteem and help develop leadership skills. By high school, youths start to find their passions and pursue more meaningful missions such as tutoring, animal welfare or environmental projects.
Wait for it
