5 Money Challenges Wealthy Parents Face, According to Rachel Cruze
Written by
Nicole Spector
Edited by
Molly Sullivan
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If you’re not wealthy, it’s hard to feel bad for wealthy people. You may even experience a spell of schadenfreude — or joy at their misfortunes — but not much in terms of compassion. But problems are problems, and rich people have them just as those belonging to the middle class and under do. And this includes money problems. We see this profoundly in the realm of parenting as wealthy parents face some unique financial challenges with their kids.
Financial expert Rachel Cruze recently tackled this issue in a YouTube video. What are these challenges and how do you address them in order to raise financially responsible and resilient kids?
Fostering an Environment of Gratitude
In a household where all your needs are fully met and then some, it can be easy for kids to take everything for granted and not experience gratitude.
“This heart of gratitude, of being present where you are, is such a model of your character,” Cruze said. “Teaching our kids that — to be grateful — even like, making them say ‘thank you” and understanding where things are coming from, and the fact that not everyone has what you have.”
It’s up to parents to exemplify gratitude and to encourage their kids to reflect on their good fortune.
Getting Kids To Contribute To Household Chores
Wealthy parents may not need their kids to do things around the house. Perhaps they themselves don’t need to do things around the house to a great extent and can turn to housekeepers and nannies to keep things in order. Cruze believes that kids must be tasked with contributing to the home at a young age.
“There’s something that happens when your kids have a level of responsibility — and it can be something small, like just keeping their room clean,” Cruze said. “When they complete tasks, around the home, there is a level of confidence that actually gets put into your kids.”
Saying ‘No’ Enough
If money isn’t a concern at all, your kids probably have more toys, more extracurricular activities and more opportunities than kids in homes where money is tight. They probably hear “yes” a lot more frequently than they hear “no.” Parents, as Cruze sees it, need to bring some discipline to the home by telling their kids “no” in certain situations.
“When you have the ability to say no and to stand your ground, get the repercussions of the tantrum or whatever the thing is, it is so key, because our kids have to learn boundaries,” Cruze said. “The idea that money is just limitless is not an option.”
Teaching Patience
Most of us in today’s digitally addicted society could benefit from a refresher on patience. And parents need to be teaching their kids that gratification isn’t always an instant thing. We need to model patience by not succumbing to impulse buys, just as we need to discourage our kids from getting whatever they want when they want it.
“Having the patience to save up and pay for something is huge,” Cruze said. “This is true as adults, but your kids should do the same. Have them have a goal of something that they’re saving up for.”
Cruze added that in her home, they do no-spend months. This is a great exercise for parents trying to raise financially responsible and savvy kids.
Learning To Sit in Disappointment
Who wants to sit in disappointment? Not a grownup and certainly not a kid. But sitting in disappointment and accepting, without a fight, that you are not getting what you want, whatever that may be, or that you have failed, is crucial because disappointment is a part of real life. Kids who are, for lack of a better word, spoiled, may not have a lot of opportunity to sit with disappointment because their parents are so quick to clean up every mess and spare their kids from painful consequences.
“A lot of parents are ‘snowplow’ parents, meaning they go through and pave the way so there’s no bumps, no grooves, no ‘oh gosh, am I going to fall down?'” Cruze said. “It’s like this perfect slope for your kids to go down with no issues.”
Life is not a perfect slope, even if you never have to worry about making money or building wealth. Ensure that your kids understand — and personally experience — this reality, otherwise they’ll grow up without knowing how to get back up from a fall, financial or otherwise.
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