5 Money Habit Strategies Every Kid Should Learn

Parents who mentor their kids by teaching them good daily success habits, set their kids up to achieve far more than 95% of their peers and go on to achieve great success in life. In my study of the daily habits of the rich and the poor (Rich Habits Study – Background on Methodology http://richhabits.net/rich-habits-study-background-on-methodology/) I uncovered certain money habit strategies that the wealthy learned from their parents as children:

  1. Chore Income – Don’t give an allowance. That implies entitlement. Give them money in exchange for doing their chores and explain to them that this is income they earned. Make a list of all of the chores that can be done. The more chores they do, the more income they make. Pay them a bonus when they do chores not on the list. You can expand this Chore Income strategy by paying your kids for certain good behavior, such as reading 30 minutes or more each day, volunteering, limiting TV and Internet use to less than 1 hour a day, getting their homework done by a certain time each day, getting A’s in school, exercising, good etiquette, achieving goals, not eating junk food etc.
  2. Work For Their Stuff – Parents of kids who grew up to become wealthy and successful, made their kids work for what they wanted. In today’s world, that includes computers, ipads, iphones, designer clothes, computer games etc. Having to work for what you want creates a work ethic and helps your kids understand the value of money. A good age to teach this Rich Habit is age 14 and up; the age when kids can work.
  3. The Savings Rule – The majority of the wealthy in my study had a habit of saving. Help your kids form good savings habits by taking 50% of money gifts from your child after they receive the gift. Then put this 50% in a savings account for your kids. What the kids do with their 50% is up to them. This teaches them responsible spending because when the money’s gone their on their own.
  4. 50:50 Budgeting Rule – This rule teaches kids to save for their stuff when they are too young to have a job. When kids reach age 10 parents should start teaching their kids to budget and save for things like iphones, video games, trendy clothes etc. One way to do this is for parents to agree to match whatever their kids save from their Chore Income or their share of their Gifts Savings.
  5. Evils of Credit Cards – Kids need to learn that credit cards are bad and should only be used for emergencies. The wealthy were taught by their parents that if you have to use credit cards for your ordinary living expenses you’re living beyond your means and you will wind up poor. Age 14 and up is a good age to start indoctrinating kids about the evils of credit cards. Once a month reminders should do the trick.

 

Thomas C. Corley About Thomas C. Corley

Tom Corley understands the difference between being rich and poor: at age nine, his family went from being multi-millionaires to broke in just one night, due to a catastrophic fire that destroyed his Dad's thriving business. For fourteen years they struggled with poverty. There were eleven in Tom's family, and they lived in constant fear of losing their home.

Driven by the desire to unlock the secrets to success and failure, Tom spent five years studying the daily activities of 233 rich people and 128 poor people. He discovered there was an immense difference between the habits of the rich and the poor. During his research he identified over 300 daily activities that separated the “haves” from the “have nots.” Tom decided to write a book to share what he learned. That book, Rich Habits: The Daily Success Habits of Wealthy Individuals (1st Edition), went on to become an Amazon Bestseller in the United States forty times over a three year period. To give you some perspective, in order to be a true Amazon Bestseller in the United States, where you actually receive a specific Bestseller designation from Amazon, you need to be in the top 100 of all books sold by Amazon in the United States in a given day. Rich Habits did that for nearly thirty straight days, rising as high as #7, eclipsing such Bestselling authors such as Stephen Covey, Robert Kiyosaki and J.K. Rowlings. Imagine that - an unknown, first-time, self-published author selling more books than J.K. Rowlings!

Tom now travels the world, sharing his Rich Habits and motivating audiences at industry conferences, corporate events, universities, multi-level marketing group events, and global sales organizations’ presentations and finance conferences. He has even spoken on the same stage with famous entrepreneurs and personal development experts, such as Sir Richard Branson, Robin Sharma, Dr. Daniel Amen, and many others.

Tom has shared his insights on various national and international network, cable, and Internet television programs such as CBS Evening News, NBC News, Yahoo Financially Fit, Money.com, India TV, News.com Australia, and a host of others. He has been interviewed on many prestigious nationally syndicated radio shows, including the Dave Ramsey Show, Marketplace Money, and WABC.

Tom has been featured in numerous print magazines—such as Money magazine, Inc. Magazine, SUCCESS Magazine, Entrepreneur magazine, Fast Company magazine, More magazine, Epoca Magazine (Brazil’s largest weekly) and Kiplinger’s Personal Finance magazine—and various online publications, including USA Today, CNN, MSN Money, SUCCESS.com, Inc.com, and the Huffington Post. Tom is a frequent contributor to Business Insider, Credit.com, Bankrate.com and a few other media outlets.

National publicity has garnered international media attention for Tom and his Rich Habits research spanning 23 countries. Broadcast media, online publications, and television throughout Asia, the South Pacific, Europe, the United Kingdom, and Central and South America have shared his powerful message.

In an effort to help parents, grandparents, teachers and adults become success mentors to the younger generation, Tom released his second book, Rich Kids: How to Raise Our Children to be Happy and Successful in Life in 2014. This book was the self-help category winner of the 2015 New York Book Festival and Runner-up in the prestigious 2015 Writer’s Digest Self-Published Book Awards Contest. In 2016 Tom released his third book, Change Your Habits, Change Your Life. This book provides the latest science on habit change as well as more of Tom's unique research on the specific habits that helped transform 177 ordinary individuals into self-made millionaires.

Besides being an author, Tom is also a CPA, CFP, and hold a master’s degree in taxation. As president of Cerefice and Company, CPAs, Tom heads one of the premier financial firms in New Jersey.
 
Phone Number: 732-382-3800 Ext. 103.
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