5 Ways to Wealth Creation for your Child

We often say money can’t buy happiness.

However, many parents worry about their children’s financial future. How ironical is that? Good news: It is possible to prime your children for wealth. The sooner you start, the better.

Here are a few tips to see them through:

• Time management

It is impossible to create sustainable wealth until you learn to manage your time. Author Tom Corley in his book, Rich Kids – How to raise our children to be happy and successful in life writes that you can easily pass on time management skills to your children by teaching them to write to do lists.If your little one can complete at least 70 percent of their daily activities, they are on the right track

• Allowances

  Most parents worry that giving their children money will make them unmotivated. This may be true but giving them a modest amount, teaches them on money value.

Joel Muia, a journalist and a father of two, gives his children aged 5 and 8 a monthly allowance. They are expected to spend, save and give some to a worthy cause.

“I hope that in the long run, these financial habits will stick and they will learn the value of saving,” says Muia.

• Young entrepreneurs

Your child will only be successful if they learn to earn money. Joline Kinya, a software developer, seems to have passed on this lesson to her nine-year-old daughter successfully.

“We sort of stumbled into it. When I realized that she is artistic, I sought art lessons for her. She knits hair accessories and sells them to friends and relatives. She can be very convincing,” she chuckles.

Haven’t you identified your child’s gift? Don’t worry. You can still help them earn money. Get them to help you or our friends with duties. The trick is emphasizing on what can be achieved from earning money, not just the money.

• The law of association

Show me you friends and I will tell you who you are. This turns out to be true even with money matters. Would you like your children to be wealthy? Surround them with mentors who are actively working at improving your life. If your neighborhood lacks such individuals, it is your duty as a parent to link your child with one.

• Bank accounts

Luckily for today’s parent, bank accounts are cheaper and more accessible than before. For a child, a bank account is much more than somewhere they store their money. Junior accounts will help your child save, keep track of their savings, set goals and earn rewards when they reach those goals. That is the same way wealth creation works.