| Right behind the subject of birds and bees, talking to | | | | right now) as absolute and unchangeable. To the |
| kids about money and wealth is one of the most | | | | impressionable mind of a child it may sound as a |
| difficult conversations for parents. Deciding what to tell | | | | permanent reality and imply he comes from a family |
| them about earning, saving and growing cash can be a | | | | coursed with misfortune. It is far better and more |
| difficult task, particularly since many of us were never | | | | productive to avoid comparisons with other people and |
| given money management skills at home and perhaps | | | | establish that your current situation can be changed. |
| still do not know a whole lot about the subject in the | | | | Focus on discussing possible actions that can improve |
| first place. This article will provide you with a | | | | the conditions of the family, such as avoiding |
| framework to discuss money with your kids, and will | | | | unnecessary expenses, reading books about investing, |
| help you establish a foundation to share your own | | | | brainstorming business ideas, etc. |
| values about wealth with them. | | | | "If you want to have money, you have to work hard" |
| The current economic and credit crisis is, at the very | | | | This is my favorite one because it is only partially true, |
| least, anecdotal evidence that our views on money | | | | therefore extremely deceptive. Hard work can |
| need some improvement, specially if we hope our | | | | produce financial rewards and many wealthy people |
| children will not repeat our mistakes and will therefore | | | | worked very hard to build and preserve their fortune. |
| become good earners, savers and stewards of their | | | | However, hard work is another absolute view that |
| own wealth. A recent survey among high school and | | | | negates other possibilities. For example, there are |
| college students revealed kids pick up their views and | | | | many people who worked hard to find the right |
| values about money and finances at home, largely | | | | opportunity and did not have to struggle so much once |
| through observation and by hearing their parents talk | | | | they positioned themselves properly. This is how many |
| about money. In other words, whether we intentionally | | | | fortunes in the Internet era were created. Others were |
| teach them or not, our kids will learn the good and the | | | | lost because some people put their heads down and |
| bad we have to offer regarding financial matters. | | | | worked hard without looking out for changes in the |
| Clearly, it would be a great step for us to make this | | | | horizon. Hard work alone does not create wealth. It is |
| process more deliberate and ensure the way we see | | | | only through a combination of smart work and hard |
| money and what we teach our children about it is | | | | work that we can succeed. Each one of them alone is |
| going to help them in the long run. | | | | not enough, you need both. |
| Money Is Energy: The New Metaphor | | | | "You need money to make money" |
| We live in a great country, where many people have | | | | This is a statement that is probably responsible for |
| started with nothing and built amazing fortunes. Many | | | | stalling the dreams of many people around the world. It |
| others have lost it all overnight due to corporate | | | | is technically true, but is deceptive as well. The |
| failures, fraud or poor judgment. For the rest of us, | | | | technicality is that you need investment funds to launch |
| however, money is what keeps a roof over our | | | | a new business, but the funds do not necessarily have |
| heads, gives us comfort, or even keeps us up at night | | | | to come from you, they can come from investors. If |
| if we do not have what we need. For these reasons, | | | | the creator of a new great business idea does not |
| money is typically a very emotional subject. For some, | | | | have the money, there are ways to obtain it. There |
| money is insecurity, pain, and shame. For others, | | | | are countless examples of people with creative ability |
| money is pride, greed, fun and excitement. None of | | | | who started a business with an idea, and managed to |
| these emotions are ultimately healthy when they are | | | | convince others to invest in them, give them free |
| attached to the way we see money. And whether | | | | advertising, etc. Today, there is a multi-billion dollar |
| we like it or not, we tend to pass on these emotionally | | | | industry of venture capitalists who pour billions every |
| charged views on money as part of our values to our | | | | year, regardless of what the economy is doing, into |
| children during their upbringing. | | | | new business ventures that have potential. Many fail, |
| Would you like to see your children growing up afraid | | | | but they only need a few to succeed to make it worth |
| of money, or having an unhealthy attachment to what | | | | their while. If you teach your kids that a good idea is |
| money represents in terms of material things or | | | | worth a fortune (instead of telling them the statement |
| immediate gratification? My guess is you probably | | | | above) you will free them to think and create. Actually, |
| would not. This is why we need a different metaphor | | | | I would like to offer you a better statement: you need |
| when we discuss money. It is nothing to be feared or | | | | salesmanship to make money. This is a lot more |
| pursued obsessively. Money is just energy. Energy is | | | | accurate in the world of business. Many good ideas go |
| neutral and is all around us in the physical world. The | | | | nowhere because the creator does not know how to |
| cash and ATM cards we keep in our pockets are just | | | | convince others on the merits of his or her creation. |
| an expression of it. | | | | The good news is salesmanship is a learnable skill. |
| Imagine that you need a gallon of milk. Getting it is | | | | Make your kids aware of the importance of a good, |
| really simple, you reach into your pocket and use a | | | | persuasive and polished presentation and you may be |
| few dollars to buy your milk at the store. But what | | | | opening for them the golden doors of success. |
| would happen if you could not get anyone to sell you | | | | "Rich People Are Rarely Happy" |
| milk in exchange for your money? You would have to | | | | I like this one because it is true. But wait, poor people |
| put in a lot of hard work to obtain it, perhaps driving to | | | | are rarely happy as well. In fact, human beings are |
| a distant dairy farm or raising a cow yourself! That | | | | rarely happy. Happiness is an emotional skill that is not |
| would certainly take a lot of valuable time and energy | | | | connected to money in any way. It has to do with our |
| from you. | | | | ability to manage our emotions and be well adjusted to |
| In modern times, we do not have to take such drastic | | | | our environment. There are many books written on the |
| measures to procure a simple gallon of milk. We have | | | | subject of happiness and how to obtain it but trust me, |
| figured out that it is far more efficient for each of us to | | | | money is a very small factor. Unless we are talking |
| specialize in our own function (a.k.a. our job), and trade | | | | about dying of an untreated disease or starvation, |
| units of energy (cash) in exchange for our labor and | | | | money is not going to put a durable smile on your face. |
| for what we need (food and shelter). This is a simple | | | | What it will do is give you more choices, offer you |
| formula that works to optimize the flow and use of | | | | interesting experiences, get you peace of mind |
| energy of our society. In other words, money is energy | | | | regarding your bills and hopefully give you a chance to |
| and we get to have an amount that is proportional to | | | | contribute to charitable causes. Do not look for |
| how much of energy we give out to the world. | | | | happiness in money, instead, accept that you like |
| The Properties of Energy, and Money | | | | money and teach your children that it is okay to want |
| Any science book will tell you that energy has four | | | | to have money and the comforts and opportunities it |
| key properties: it can be transferred, it can take | | | | provides. Do not deny the practical benefits of having |
| multiple forms, it can be only converted from one form | | | | money just because it can not give you happiness. |
| to another, and because of that, it can never be | | | | Money and happiness are simply not connected. If you |
| created or destroyed. If you think about it, money has | | | | want more happiness, get to know yourself, work |
| much in common with energy, as it can be transferred | | | | really hard on your personal growth, and teach your |
| and it can be converted into many forms. Now, can | | | | kids to do the same. This is one area where hard |
| money be created or destroyed? Technically, yes. | | | | work is the only way to get ahead, but it is always |
| You could take all your cash and incinerate it in the | | | | worth it and will produce the emotional riches you |
| fireplace, but this is not the right way to think about it. A | | | | always dreamed of for yourself and your children. |
| more logical approach to the indestructibility of money | | | | "I Have No Idea How To Make or Grow My Money" |
| is as follows: imagine you are a frontiersman or | | | | I could not agree with this more! You do not know |
| woman and you arrive to the vast plains of Montana in | | | | before you know. What I mean is that this is something |
| the 1800s. Through much labor and hard work, you | | | | you need to learn. It is not in our genes and it is not |
| convert a big expanse of land into a productive farm | | | | intuitive. Becoming a savvy saver, investor, wealth |
| and as a result, you emerge as a wealthy land owner | | | | generator, etc. are skills that take a lifetime to master. |
| and farmer. You did not destroy the land, you | | | | But do not get discouraged by that. Instead, get used |
| transformed it. Before you arrived, the energy of that | | | | to saying that you do not know it yet, but you will |
| land was serving nature and the animals of the region. | | | | eventually. Many worthwhile skills take a lifetime to |
| Now it belongs to you and you can turn its bounty into | | | | master. Think about parenthood, for example. We do |
| cash and become a rich person. You took the energy | | | | not come into this world with a clear idea of what it is |
| of your work and the gift of nature and transformed | | | | like to be parents, but we learn. Trial and error or |
| them into a cash machine. We can come up with | | | | getting some coaching on the subject can help. We |
| many other examples, including inventions and new | | | | read books about parenting or even articles such as |
| ways of doing business (such as the Internet), but I | | | | this one. But wait, may be could do the same with |
| think you get the point. Energy and money are very | | | | money skills? Just realize it is a learnable skill and that |
| close relatives! | | | | a lot of progress can be made through reading or by |
| The Educational Value of Seeing Money as Energy | | | | finding a good mentor. The sooner you start, the |
| One of the most important milestones in the mental | | | | better. Introduce your child to someone who does well |
| development of children is when they finally make an | | | | with money, or give them a book about financial |
| unequivocal connection between cause and effect in | | | | literacy and you will probably change their lives forever. |
| the key areas of their life. Some popular examples | | | | Your Plan to Teach Your Kids About Money In Action |
| include: if they touch fire, they get burned; if they do not | | | | Remember this, whether you consciously teach your |
| finish their homework, they get a bad grade; if they are | | | | kids about money or not, they are picking up your |
| helpful around the house, they score a nice allowance. | | | | beliefs and values on this subject already, so why not |
| Money is a subject that requires cause and effect | | | | take charge of the process? Take the following simple |
| thinking in order to be understood and mastered. What | | | | steps and see how they work for you: |
| is most important for kids and young people to grasp | | | | - Read this article a couple of times until you get the |
| is that behavior has a direct impact on a person's | | | | principles in it |
| ability to accumulate wealth. There is nothing | | | | - Think about the beliefs you picked up from your own |
| mysterious about it, it is cause and effect in action. In | | | | parents growing up |
| other words, there are certain skills and actions that | | | | - Decide which if these beliefs are helpful to build a |
| attract more money to us (saving, budgeting, investing, | | | | financially free future |
| etc.), and there are others that push money away | | | | - Choose the beliefs you like and let go of those that |
| from us (overspending, abusing credit cards, etc.). It is | | | | are not helping |
| that simple. | | | | - Have a conversation with your kids about money |
| To illustrate this point, here are some common | | | | and share your values with them |
| statements children hear about money. The way | | | | - Offer them a good book and help them find a good |
| these statements are presented is based on emotion | | | | mentor. If you can be the mentor, even better |
| and not on logical or cause-and-effect thinking. These | | | | Remember to think and speak about money as a |
| emotionally charged statements diminish your children's | | | | form of energy. Keep in mind that this is a very |
| ability to think about money logically and are likely to | | | | important and emotional subject for a lot of people. |
| seed in them negative beliefs about wealth, which | | | | This excessive emotion is not helpful and can create |
| could seriously affect them in the future. See if you | | | | long lasting limitations in beliefs and behavior. The |
| can spot the logical flaws before reading the | | | | "money is energy" metaphor will take the excessive |
| explanation: | | | | emotion out of the conversation and will open new |
| "That family has money, we do not" | | | | doors of thinking for you and your kids, hopefully |
| While it is probably true that a particular family may be | | | | leading to a better future of comfort and financial |
| presently wealthier than your own, a statement like this | | | | success. Try it out. |
| presents a relative condition (they have more than us | | | | |