Success

Teaching Kids About Money

Teaching Kids About Money

Money Maroon

One of the most important things that you can do in life is teaching your kids about money. Teaching kids about money is a proactive way to ensure that the next generation is financially literate. It may seem like another thing on the list to do as a parent, however, teaching kids about money can be as easy as playing a game or just including them in day to day activities. To teach your kids about money, take your kids on your daily money adventures.

Teaching Kids About Money Must Start Early

Having a financial foundation is all about starting early. While you may quickly accumulate wealth in some instances, the magic of compounding requires time. As such, start saving early. 

The easiest avenue to teaching kids about money is to start saving early. Yes, the good ole piggy bank. This is one of the earliest and easiest ways to get your kids to think about money.  Even kids love to see their money grow.

The piggy bank provides for a lot of teaching opportunities. For example, the piggy bank can be used to teach the concept of saving toward a goal. If your kid wants to buy something, have them understand how long it will take for them to save that amount based on their standard allowance. It need not be a big purchase, for example, if they want to buy candy, you can mention that they will need to save/take an amount from their piggy bank. This will no doubt trigger an internal conflict of money vs candy. They will have to decide whether or not the candy is really worth their money.

But most importantly, the piggy bank forces kids to adapt a habit of saving. Saving is a habit that can be beneficial if learned early.

Teaching kids about money
Our kids are the future

Making Purchases

Your kids like new gadgets, so does everyone. How do you pay for it? Typically with a credit card? Teaching kids about money involves teaching them about your purchases. Show them the bill and how much things costs. Show them how you purchased it, cash or credit. If you are using a credit card, this is the perfect time to discuss interest rates.  You can further venture into the concept of paying off credit card bills early such that you do not have to pay interest payments.  The magic of compounding and how this can work to your benefit in saving but to your detriment on money you owe will no doubt hold their attention. Importantly, the concept of not purchasing things that you cannot afford will be a natural progression.

Going To The Bank

Like many other things as a parent, get your kids involved in your financial decisions. They may not understand, however, the act of going through the process will be built in. When old enough, they will begin to understand. Teaching kids about money is about sparking financial curiosity and planting a financial seed that will flourish and pay dividends in the future.

For example, on each journey to the bank, consider taking your child. Kids are curious creatures and they will ask numerous questions about the bank. Why are you going to the bank? Why are you depositing money? Where did you get the money from? Do you get it back? These are all questions that will spark a conversation with regard to earning money, using money, and saving money.

These early conversations with your 3-5 year old will begin to inform their concept of money. Have you ever taken money from your kids piggy bank and try to deposit it in the bank? If you have not, this process is likely to create a mental break down for any child. They become very attached to their money. However, this process provides the perfect opportunity to have a discussion with regard to the function of a bank, interest rates, and possibly inflation. No kid wants to have their money taken away. By explaining why their money will earn more if it is put to work (in the bank/investment account) will put them at ease and be a great benefit in the future.

Monopoly Money

Teaching kids about money at times can be a simple matter of playing a game. In many ways, monopoly is the perfect game. Monopoly can accomplish multiple things. Monopoly is not only a fun game for family time. Playing monopoly can also help kids learn to add, subtract, and also teach your child to handle or at the very least begin to get an appreciation of money.

Think about it, where else would a kid learn about charging rent, bankruptcy, going to jail, getting paid a scheduled salary, trading property, and transacting with a bank? Monopoly teaches simple concepts in game form. (1) If you own property, you can charge rent. (2) If you invest in your property, by building a hotel, you can charge even more. (3) If you over extend yourself financially, you can go bankrupt. The concepts are all there, and your kids will learn them all without trying.

Conclusion

One of the most important things that you can do is teaching your kids about money. Teaching kids about money is a proactive way to ensure that the next generation is financially literate. It may seem like another thing on the list to do as a parent, however, teaching kids about money can be as easy as playing a game or just including them in day to day activities. To teach your kids about money, take your kids on your daily money adventures. Help your kids get on the journey to financial independence early.

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Adding Value

You Are Paid For Adding Value, Not Effort

Money Maroon

Who would not like to be paid more? No one, we would all like to be paid more for the tasks we perform. So how do we get paid more? For that matter, why are some employees let go during a slow down while others are retained? The answer is a simple one. While some talk the talk, very few walk the walk. While some add value, others act as if they do. Never forget, in any profession, you are being paid for adding value. Adding value in everything that you do is the key to true wealth generation.

Becoming Indispensable

Be Indispensable

In any profession, you are being paid for what you are bringing to the table. The more value you add, the more indispensable you become to an organization as an entrepreneur or an employee. This is a simple fact that so many forget or just simply do not recognize.

For any organization, while things are going well financially, it is very easy to hide inadequate, bland or sub par work. But once the financials become more difficult in view of market conditions, it becomes more difficult to hide the mediocre. In tough market conditions, the mediocre is likely removed or replaced. To stay at any company and be promoted, you must add value. 

Yes, favoritism can get you far, but actually being good at what you do and being an integral team member will always bring you farther. We all know that person who is indispensable, the person with the ideas, the glue that holds everyone together. Remember, for each position, if you are performing tasks that can easily be filled by someone else, you are dispensable.

Make yourself indispensable by finding ways to add value in whatever role you are currently in. You need not be in a top position, really any position will do. Even in the mail room. 

Effort vs value

Do not conflate effort and adding value. For many, when we say add value, they believe this is a matter of increasing effort. It is not. You can add more effort, but effort does not always translate into added value. Remember, “work smarter not harder.” Working harder does not necessarily result in added value. If you work harder but does not add value, what is the purpose? You will be tired and frustrated because your added effort will not be rewarded.

Adding value translates to anything that impacts the bottom line. Whether that is by implementing new programs to mitigate risks, an action or program that improves the pipeline, directly improving sales through literally selling more or by improving moral such that the team works better and more efficiently. Ask yourself, how do you impact the bottom line? Are others in your current role doing what you are doing? If they are, you have a problem. Find new ways to separate yourself from others and make yourself indispensable.

Adding Value And Doing What Is required

Adding Value

In anything you do, seek to add value. Of course, at a bear minimum, perform your job at a high level and do what is required. If you are not performing at a high level in fulfilling your job requirements, you are in effect not adding value. If you are fulfilling your role, do more. Outside of what is required, find ways to add to the bottom line. Do not be a passive member of your team, always show others that you are thinking outside the box.  Be assertive. This works whether you are working for yourself or employed by others.

When times get lean, if your are easily replaceable you will be replaced by someone that will accept a lower salary. On the other hand, if you are an indispensable asset that is continually adding value, you will be kept and continually promoted. Even if you are not kept and promoted, you will have options. You will be able to find another opportunity because your reputation as a person that adds value will preceded you.  As noted before, favoritism can get you far, but talent, capability and a knack for adding value will get you farther.

Conclusion

Who would not like to be paid more? No one, we would all like to be paid more for the tasks we perform. So how do we get paid more? For that matter, why are some employees let go during a slow down while others are retained? The answer is a simple one. While some talk the talk, very few walk the walk. While some add value, others act as if they do. Never forget, in any profession, you are being paid for adding value. Adding value in everything that you do is the key to true wealth generation. Journey to Financial independence by continually adding value to the world around you.

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Self made lies

Self Made? I Doubt It

Money Maroon

You have heard it all before, pull yourself up by the bootstraps. Typically, the individual telling you to pull yourself up by the bootstraps will refer to themselves as self made. No matter how much you are able to “pull yourself up” the fact is, no one is self made. We all need help from others, but that alone is not enough to succeed. Even with help from others, you must be at the right place at the right time. In other words, to succeed, you must also be lucky. I am not discounting that hard work is necessary to achieve your goals, it is. But do not ever make the mistake of thinking that you are self made. In making that mistake, you are not appreciating or acknowledging the contributions of the people that have helped you along the way. Give them the credit and acknowledgement that they deserve.

Self Made

There are no self made individuals. For that matter, there are no self made millionaires. If you do not believe me, just think about it. Think of any so called self made individuals or millionaires. Yes, those individuals that are labeled self made. Pull back the curtain and look at the individual. Likely, they are very smart, hard working, and have a certain skill set combination that got them to where they are. Their dedication and skill set helped them navigate up, down, over, and around obstacles to become what we know them as today. They are good at what they do. But they did not do it alone. They are in effect, not self made.

You are not self made
You are not self made

The Team

Zoom out from our supposed self made individual and look at their team. Look at the people behind them who have implemented their plans and have mentored them to success. I am not talking about the new person that they have hired to fill a role. Nor am I identifying an easily replaceable employee that can be plugged into a specific role. I mean their team. The group of people who have been around them for years, or even decades. The group of people that have significantly impacted our so called self made millionaire’s life the most. The team could be made up of family members, a mentor or someone who has been a confidant over the years. The team is what give this individual strength. This team is the primary motivator and at times the inspiration from which our so call self made individual draws from.

The Big Break

Now pull back further to the individuals who gave our so called self made person his or her big break. This need not be one significant big break, it could be incremental breaks or transition from one point to the next. Who was that first client for a new business? Who was the first investor to believe in the idea or the employee that left their secure job to start a new company with our so call self made man? Find that person and you will find the catalyst for our self made man’s success.

Early Backers

If you still believe that some folks are self made, look at their childhood. Was it the parents or family members who gave our so call self made man a stable environment? What about their coach who saw the promise of a future star and spent the extra time to help hone his/her skills? Think about the teacher who saw the promise and provided the necessary encouragement. Who paid for the extra classes and tutoring lessons? These are the early backers. The early backers are people who saw promise and invested in our so called self made man’s future. Without the early backers, our self made man would be a shell of who he is today

Luck

Now, let us look at luck. It is difficult for us to admit that we have accomplished goals not by our pure skills and intelligence, but by luck. It is very simple, to be successful, you must have a bit of luck. Success is the intersection of luck, opportunity and skill. The Luck that you won the lottery with parents who may be able to nurture your developing mind. Luck that you had that coach or teacher that believed in you. Luck that you met that friend who profoundly impacted you and pushed you forward. In the simplest case, luck that you did not get hit by a car, affected by a disease or a situation beyond your control that left you ill-equipped to grab your future by the horns and move forward. Luck, you need it, so acknowledge it.

Conclusion

You have heard it all before, pull yourself up by the bootstraps. Typically, the individual telling you to pull yourself up by the bootstraps will refer to themselves as self made. No matter how much you are able to “pull yourself up” the fact is, no one is self made. We all need help from others, but that alone is not enough to succeed. Even with help from others, you must be at the right place at the right time. In other words, to succeed, you must also be lucky. I am not discounting that hard work is necessary to achieve your goals, it is. But do not ever make the mistake of thinking that you are self made. In making that mistake, you are not appreciating or acknowledging the contributions of the people that have helped you along the way. Give them the credit and acknowledgement that they deserve.

Do not be ashamed to acknowledge that your success is not attributed to you alone. Embrace those around you and achieve.

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