What type of future do you want for your kids?
Recently, my wife Fiona and I were chatting about this and interestingly we didn’t think about what jobs they would have or where they would live. Instead, the words that came up were healthy, happy, confident, independent, kind and thoughtful.
It’s pretty daunting when you think of the responsibility us parents have. Not only do we have to live in the now. We also have to teach our kids as much as we can so they can be independent and thrive.
I am not an expert in child psychology, but as much as we hate to admit it, our kids copy us. The things they see us doing now will be the things they do when they are older. The good and the bad.
So with that in mind, let’s talk money and specifically about some tools we can give them that will last a lifetime. If we do this correctly, they will have an abundant life that allows them to pursue whatever makes them happy, healthy and confident.
One of the main differences between those who have enough money to do what they want and those that don’t is their mindset. Some have an abundance mindset and others have a scarcity one.
An abundance mindset allows the person to be open to all the favourable outcomes. For example, they might be willing to buy a house or business at a time when everyone else is telling them not to. They are not worried that they won’t have enough money. They will look at the $75.6 billion worth of banknotes in circulation in Australia and think how easily it comes to them.
On the other hand, someone with a scarcity mindset often misses opportunities when they come along. They will worry that something will go wrong. They will look at the $75.6 billion and think that’s only $3,000 per person, so best be careful.
Here are four ways you can make sure you have a positive mindset about money. These will not only help you now, but it will also give your kids a great role model to learn from.
- Know your family budget, spend less than you earn and have a good savings plan in place. Have tangible goals that you can tick off along the way. Let your kids see you achieving them.
- Treat yourself, but on things that are important to you. By this, I mean things that you really value, not impulse buys that you don’t end up using.
- Live your own life, not that of your friends, family or co-workers. Often people compare themselves to others. Only yesterday I received an email encouraging me to compare my super to the average superannuation balance for different ages. All this does for the people who are below the average on this one metric is make them feel worthless and envious.
- Stop using phrases such as ‘I’ll never be able to afford that’ or ‘money doesn’t buy you happiness’ or ‘money doesn’t grow on trees.’ What you say influences how you feel, which then changes how you act. Instead, move to positive scripts such as ‘I’ll have to save to get it’ or ‘money gives me the freedom to do what I want’ or ‘money comes easily to me.’
If you are looking for independent financial advice, contact Phil on 0417 034 252 or email at firstname.lastname@example.org