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It seems to be human nature that there is an old saying in China, “three generations will not make you rich. The first generation of entrepreneurs cautious and conscientious, hard-working, created a huge industry; The second generation witnessed the hardships of their parents’ entrepreneurship, and influenced by their parents’ education, they were able to keep their family businesses and even develop. And to the third generation, they indulged in wealth since childhood, only know to enjoy, the family foundation naturally to decline.
However, some old names in the United States, such as the Shirley Plantation in Virginia, were established in 1613 and are still operated by the same family. It is the 11th generation.
Towle Silversmiths, which makes silverware for American embassies in various countries, has been a silversmith for generations, dating back to 1690. Americans have a way of preventing “black sheep”, such as raising children to manage their money at an early age.
America is so divided between rich and poor that almost every child feels the magic of money and is curious about it.
Many children ask their parents at an early age:
Why is our house so small and Martin’s so big?
Is our family rich or poor?
Does the family have enough money to spend?
In the face of children’s questions, many American parents will choose to tell their children frankly about their financial background, so that children can experience the whole process of family spending, and learn to grasp the relationship between “giving and receiving”, so that they won’t lose their way in life because of money in the future.
Twenty years ago, Scott Parker, a father in California, wanted his children to know the details of his family’s income and expenses. When he returned home with $10,000 a month in a large canvas bag and set it on the kitchen table, his oldest son, Daniel, 15, thought his father was back from a bank robbery.
The father and the children stared at the pile of money on the table for a while. Then the father explained the concept of tax.
Then put aside money for churches and charities.
Then there’s the monthly mortgage payment, the monthly food purchase, the cost of going out to the movies and soccer games.
Gradually that pile of money gets smaller and smaller, leaving little left over for monthly savings.
His children remembered their father’s lesson.
They knew that father earned a lot of money every month, but almost every penny has its use, can not be used to do luxury things, money must be careful.
They have also witnessed the values behind their parents’ spending: the first amount of money in the family is for tax obligations, and the second is for religious and charitable causes. After leaving these two dials of money first, ability considers the daily necessities of the home and recreational consumption.
The above is a picture of relatively wealthy americans, but financially distressed American parents still communicate their values by letting their children know about their families.
Andrea Dutton moved to a much smaller house with her 7-year-old daughter and 3-year-old son after divorcing her husband in Florida. She candidly explained to the children that sometimes in order to get out of a bad situation, one has to make the right decision, even though the decision is difficult, even though it means a lot to lose financially.
She chose to be blunt with her children about the state of the family’s finances, both to prevent them from worrying unnecessarily about the truth and to teach them that money is not the only measure of happiness.
When parents tell their children about the family background, they also let their children participate in the consumption. Lived in Virginia housewife Trisha Jones sent her 6 and 8, two children to go to a private school, every month to pay tuition fees on the computer always sat next to her two children, helped her to press the “payment” the key, and told them to school tuition is $92.50 per person a day, equivalent to buy a set of advanced plastic building blocks toys.
Her aim is to show children that school is a privilege and must be cherished. Their parents made sacrifices to send them to school.
In the process of participating in consumption decisions, children naturally learn to take reasonable responsibilities. Rebecca Miller Goggins, a mother in Massachusetts, had her daughter’s ballet classes extended when the price of tuition for ballet schools went up.
The mother showed the bill to her daughter and told her she had to make a choice: take fewer ballet classes or spend less. My daughter decided not to reduce her ballet class, but she would work longer hours to share the cost of ballet class.
Every Sunday, the Adams family in Colorado has their two children, ages 10 and 11, review every household expense and participate in decision-making. Children soon learn to make wise choices.
For example, not going to restaurants for dinner means they have more money to spend on going to Disneyland. If it’s free to go to the library and Barnes & Buying books means spending money on books and drinks. Which one do you prefer?
American parents want their children to know the relationship between independence, diligence and money at an early age. They call financial education “a happy life plan from the age of 3”.
The requirements for children’s financial education are: 3 years old can identify COINS and notes, 6 years old with the “own money” consciousness. They have a mantra: “pay to work!” American children sell toys they do not need on their doorsteps for a small income.
It teaches children that even those born into wealthy families should have a desire to work and a sense of social responsibility.
Patrick long’s eldest son Ryan asked for a lawn mower for his 12th birthday, and his wife wisely bought him one.
By the end of that summer, he had made $400 mowing grass. When Patrick long suggested that his son invest some of the money, he decided to buy shares in Nike and became interested in the stock market. He started reading the financial pages of the newspaper and made some money. When Ryan’s 9-year-old brother saw that his brother had made $80 in 10 days, he too started buying and selling stocks. Both now have investments worth $1,800.
The experience of st. Louis’s dawn Richmond: I set up a mutual fund for each of my 11 sons and daughters, and for every dollar they earned, I put 50 cents in the fund.
They show children, mow lawns and do other odd jobs. Older children have now quadrupled their endowments, and six of them have used part of their funds to pay for college.
American parents not only teach their children the concept of consumption, but also cultivate their children’s concept of saving and lay the ideological foundation for their future study of “investment”.
For the child’s pocket money or labor remuneration, parents will help the child to find a bank account to open a savings account, let him put all the money into the account, every six months or a year, and the child sat down to calculate: how much interest this account, and teach them how to roll interest.
Hurun, who created the rich list, once said:
“In China, it’s not easy for a company to stay in business for 10 years. The chances of it surviving to the fourth generation are only 0.1 percent. There are two reasons:
First, with the development of a family, there are more and more descendants, so by the third generation, they hold their own shares, it is difficult to guarantee the core value of an enterprise;
Second, part of the enterprise development model is the first generation of creation, the second generation of management, the third generation of consumption, may be behind, the brand is still there, the value is no longer.
In fact, the secret to the three-generation curse lies in the inheritance model. The next decade will be the peak for the individualistic second generation, which has begun to take equity and management control from the previous generation. How to reasonably arrange the family’s equity and position inheritance, and what should parents leave for their children? A house, a car, a business?
Nothing is more expensive than free in the world, how to transfer wealth, to keep the offspring of wealth “hunger”, without losing the ability to create wealth, apparently only for money is no good, but also teach them the ability to create wealth, protect, and, most importantly, to guide them in wealth, with the healthy, active years of life.
& have spent