Money Experts Julien and Kiersten Saunders: 3 Ways To Raise a ‘Rich’ Kid
Written by
Adam Palasciano
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Chris Cluff
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Being a parent is no easy task, especially when it comes to finances. While parents must stay on top of their finances, it’s equally as important to help your kids stay on track with theirs, too.
A CNBC + Acorns survey indicated that only 16% of parents talk to their children about personal finances once a month, 24% speak to them less often, and 31% never talk to their kids about finances at all.
Since personal finance education isn’t always the norm in the U.S., teaching your kids about personal finance from a young age should be a priority. It can be daunting to have the money conversation with your kids, there’s no doubt about it. But, it’s absolutely crucial. Fortunately, there are some tips and tricks you can follow as a parent to ensure your children’s finances are in order.
Financial gurus Julien and Kiersten Saunders explained in a recent post on their website, Rich & Regular, that there are three key ways to raise a rich kid.
Also see the cheapest states to raise kids in 2024.
Set Limits
Teaching your kids about financial limits early will instill discipline and good habits. Setting spending limits means your child can grow a significant safety net over time. This way, when they reach adulthood, the discipline they’ve developed — plus the safety net they already have in place — will set them on the right track as soon as they become financially independent.
Make Saving Money Normal
As a parent, it’s important to make saving money normal. Starting both savings and investment accounts with money your kid receives as gifts from birth through young adulthood will allow the funds to grow and compound over time. Additionally, developing excellent financial habits yourself will set a good example for your children as they develop their habits.
Invest Early and Often
Investing early and often is the key to long-term wealth accumulation. The earlier you start, the more your money will grow over time. Starting early means that your child will need less money to grow their wealth to the same level as someone who starts saving and investing many years later. Time is on your side when you’re very young, so help your kids take full advantage.
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