What Rich Parent's Are Teaching Their Kids About Money

Everybody has different perspectives on money

Everybody has different perspectives on money. Did you know that the majority of your views on money have been taught by your parents? Did you know that there is a big difference between what rich parents are teaching kids about money, versus the middle class?

Rich parents teach different ways for kids to make money, so if you've ever wondered about this then here are a few points that you might find interesting.

Purchase Assets, Avoid Liabilities: Assets always put money in your pocket, Liabilities do not - they take money out of you pocket. I have 2 friends who earn a similar salary, one of them loves to buy the latest gadgets and is always upgrading his car, I asked him how he managed to afford all this and it turns out he buys it all on credit just paying off the minimum interest. The second friend has been driving the same old bomb for years, yet he has focused for years on consistently buying investment properties, his rental income has become big enough that he's just cut down on his work hours.

Its Easier For A Company To Profit, Than An Employee: The way our tax system is set up, firstly companies pay less tax than employees. Secondly companies pay tax after subtracting all their expenditure, whereas employees pay tax before see a single cent of their pay check.

The rich take advantage of this system, by ensuring they own companies. In contrast the poor and middle class, generally will remain employees their whole life. This means that the rich actually pay less tax than the poor which may come as a surprise to many people.

A common them amongst the middle class is what parent's teach their kids: study hard in school, get a college degree, work for a good company. Compare this to rich parents who like to teach their kids to invest in property, shares and start their own companies.

So if you take anything away from this article, please remember this: Pay attention to your own attitudes and behaviour towards money, because your kids will learn most of their own attitudes from you. All parents want the best for their kids, so make sure you are leading by example for their sake.

by: David Rokhan.

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