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15 Things To Teach Your Child about Money (Part 1)

27 September 2020

Here Are 15 Lessons to Help Your Kids Become Wise About Their Pennies.

Hello Aluxers, many of you are already parents and for those of you who aren’t there yet, it’s not that far into the future. For many families, money is a taboo subject..

Why is that considering that most of us will have to use this tool for the rest of our lives? Most parents don’t teach their kids about money because they don’t know much about it themselves.

As an Aluxer, you’re already way ahead of the curve of everyone else so in this Sunday motivational article, we decided to give you a hand and break down 15 Things To Teach Your Child about Money and even better, part 2 is already live on our NewParents channel with another 15, once you’re done with this.

But let’s go through it shall we?

Time is money and reading this article is going to cost some. You can instead watch our quick and glowing YouTube video on this topic:

With that sold, let’s move on to our article and learn about the first thing your little one needs to learn about their piggy bank.

1

There Are No Ceilings to How Much One Can Earn

Many grow up with this idea that the pie is limited; that there’s a limited amount just enough to go around and if you take a bit more, then someone else gets a little bit less.

This is one of the scars of the agricultural and industrial age: this land can bare this fixed amount of crops.. You could never 10, 100, or 1000X the production based on the same raw input.

Today, we create value by solving idea problems. Your child will grow up in the world of the internet 2.o, where his opportunities will be dramatically different than the ones you had for yourself.

Teach him or her early that there are no ceilings but the ones we set for ourselves!

2

The More People You Help the More Money You’ll Make

It used to be that money was a linear outcome. You chopped wood for 10 hours, you got paid for 10 hours of chopping wood… linear.

Your child could write a piece of code, write a book, create a song, create the next uber, airbnb or amazon, and the result will be non-linear.

Money is the reward people give you for helping them overcome a problem!

The more help you can provide, the more money the market will give you as thanks.

3

Money Doesn’t Solve All Your Problems, but It Solves All Your Money Problems

Teach your child to not have an emotional relationship with money and see it for what it really is: a tool.

Tools solve problems they were designed for. Money solves money problems, like paying the bills and buying other material things.

Only a fool would expect money to make him happy, to buy him quality friends or aid him in finding his life purpose. This doesn’t mean you shouldn’t want money, for there are many problems where money is the perfect fix.

In the words of Kendrik:

Money trees is the perfect place for shade.

4

You Will Be Rewarded Based on Result Not Your Effort

Effort and intentions are not enough, and if you’re a smart parent you will instill this in your child early on.

If hard work was all it took to be happy and successful, then the kids mining for cobalt in the Congo so you can have the new iphone would be the richest of us all.

You won’t get ahead without working hard, without effort, but just as important is the direction you’re heading in.

Spend half of your time figuring out where you want to go and the other half walking towards it!

5

Money Doesn’t Buy Happiness, It Buys Freedom

And the truth is, no-one can be happy unless they’re free.

Only once one achieves freedom they can begin to work on happiness.

How many times have you seen people with money that are miserable? How many are so obsessed with playing the game for an imaginary high-score that in the process end up sacrificing everything that brought them happiness as collateral damage?

Fundamentally, there are 3 things your child should pursue in life:

  1. Freedom from chains – which in our case comes in the form of money
  2. Happiness – which comes from introspection usually aided by meditation and our understanding of the world
  3. Health – which comes from our understanding of the body and its role in the ecosystem.

Without these 3, one can not have quality relationships, one can not help those in need, one can not make himself or the world better.

If you are looking for the perfect mix of meditation and focus, we recommend you go to alux.com/meditation and check out mind mastery. We designed it for people just like you!

6

Having Money Doesn’t Make You Better Than Those Who Don’t Have as Much as You

Basically, teach your child to not be a dingus. As much as society likes to rank people based on their place in the social hierarchy, your income is not correlated to how decent of a human being you are.

As a parent, you want your child to understand that everyone should be treated with respect, from the janitor to the ceo of the company.

Teach your child to see beyond the curtain people put on display, it will help them tremendously in picking out quality friends that will be there for him when he needs it.

7

Make Money With Your Mind Not With Your Back

Because your mind will give up a lot later than your back.

Society rewards added value: the amount of value you can add with your back will always be limited.

Teach your child early on the importance of using their minds as a competitive advantage.

Ideas are just multipliers for your actions!

8

Some People LOOK Rich and Some People ARE Rich

Teach your child to differentiate between real and pretend. Teach your child to see real value outside of marketing. If done right, your child will never feel the need to play Status games or at least they’ll have the feeling under control.

You want your child to be wealthy, to have more than they’ll ever need so they don’t have to worry, you want your child to be rich in experiences, in friendships, not in the latest off-white sneaker or whatever overpriced bowler hat supreme is trying to get you to buy.

Little money is always loud, while true wealth whispers!

Here are “15 Signs Someone is FAKE RICH,” they don’t lie.

9

You Don’t Want to Be Rich, You Want to Be Wealthy

Expanding on the previous point, did you know you can be paper-rich and still be very close to being broke.

We know people who earn in excess of a million a year and spend almost just as much. These people are rich, but they are not wealthy. If they got hit by a car tomorrow, their family wouldn’t be able to afford their current lifestyle.

Wealth comes from being comfortable outside of your daily activity. Wealth is money coming in while you sleep. Wealth is not having debt breathing down your neck. Wealth is having time to spend with your child because you can afford not to go to work today.

Don’t fall prey to the illusion of wealth disguised in the richness of golden handcuffs!

10

Use the Tools of Your Generation

Teach your child to learn in the age they’re living in. Fundamentally, the educational system has failed because they were simply unable to catch up, much of it still being too stuck in the past to see it. School can’t teach your child to build the next SpaceX or Tesla. Schools have no idea what brilliancy might lie inside the mind of your child and because of it they won’t know how to nurture it to blossom.

We are the first generation to experience both before and after the internet. Your child will grow up in this world AND in virtual worlds. You grew up commuting to work, while your child might never have to set foot in an office cubicle ever in their lives.

In order to build a retail store, you used to have to find a location to rent, invest in the interior design, in the tech, buy products in bulk and then sell it to the local customers. Today you can go to alux.com/sell and before the end of the day you could be selling products to anyone in the world thanks to shopify.

Allow your kid to play video games, for games are the future of media.

Allow your kid to build technology, for what he’s building is the future tech his children will be using.

11

You Want to Be Wealthy and Anonymous Rather Than Famous and Poor

The trap in modern technology lies exactly in this. You have people who have achieved fame that are not wealthy.

You see them everyday in your instagram and tiktok feeds.

Teach your child to build wealth silently and decide for themselves if they want to add fame to the equation.

12

If You’re Going to Dream, Might as Well Dream Big

We read this in one of Trump’s books when we were a lot younger. He’s not the president of the United States… it worked for him.

Taking this idea into actionable insight and we end up with the following:

It takes the same amount of work to make 1 Million per year as it takes to make 100,000 dollars per year.

The leverage comes from your creative ideas and your ability to solve problems.

Keeping up with the previous example, chopping wood has zero creative leverage. Teach your kid to use leverage to achieve bigger goals for the same amount of work.

13

You Can’t Help the Poor If You’re One of Them

When you’re poor you think that if you had a lot of money you would just give it away to those who need it. Then you educate yourself and learn that that is not the case.

As the old tale goes: Give a man a fish and you’ll feed him for a day, teach a man how to fish and you’ll feed him for life.

Money should go towards teaching people how to fish and eventually buying or teaching them how to make their own fishing rods, only then people are free of the trap of uncertainty.

How do you expect to help anyone else when you can’t even help yourself?  Teach them to be better and bring people up with them.

14

The Real Measure of Your Wealth Is How Much You’d Be Worth If You Lost All Your Money

Who are you when you strip away all the glitz and the glam? What is your skill set? What are you really able to do? These are big questions that fundamentally dictate the path a child will take in life.

You want your child to have real skills and abilities.

Nobody can take away what you know how to do!

Teach her to be strong on her own and she’ll take the world by storm.

15

Sometimes, More Money Is Just Too Expensive

Most people never realise just how expensive money is.. Mostly because they never took the time to understand how to value it.

There comes a point in someone’s journey where no matter how much is on the table the cost of getting the money is higher than the payout.

Would you trade a year of your life for 1 million dollars right now?

Maybe you would and that’s ok, because for some of you right now, 1 million would be life changing money, it would dramatically improve your life and that of which you love… but let’s say you already have 200 million in your bank account… would you make the same trade? 1 year for 1 million? Of course not..

Would you trade the relationship with your children for whatever amount of money the market is throwing at you? Would you trade your soul or peace of mind?

Some things are too expensive! Teach your children to understand value versus cost.

Stay tuned for “part 2” of this article, however as mentioned earlier, the video on that topic is already live. Don’t forget to check it out:

Question:

All of these are incredibly valuable which raises the question: How many of these did your parents teach you.. And how many did you have to learn on your own? It would be a great discussion for us to have in the comments.