In today's society money is the great divider, and raising kids to be respectful of all economic levels is important. This article shares a few ideas for families with higher levels of wealth.
Raising children is hard, no matter how much money you earn. But wealthy parents have a unique hurdle: In a household where cash is plentiful and luxuries are commonplace, they must find ways to teach their offspring to respect money, understand budgeting and empathize with non-wealthy peers.
“Money is a finite resource, no matter how much you have,” says Jayne A. Pearl, co-author of the book “Kids, Wealth and Consequences.” “There are a lot of issues [that arise] when children's attitudes about money and entitlement are out of whack.”
For example, wealthy children who don't understand the value of money may lack empathy when confronted with evidence of poverty, suffering and inequality, experts say. These affluent brats may treat the idea of holding down a job as terribly boring and unnecessary. They may find themselves unable to relate to friends from different economic backgrounds or – perhaps, worse – manipulated by freeloaders who recognize an easy target.
On a practical level, these well-heeled slackers may lack the financial literacy required to manage their wealth effectively or direct a team of financial advisors.
While many of the following child-rearing strategies are directed at wealthy parents, experts note that knowing how to teach financial literacy is essential for parents from all socioeconomic backgrounds. Teaching the value of money “isn't just for high-end parents,” says Michele Borba, author of “UnSelfie: Why Empathetic Kids Succeed in Our All-About-Me World” and contributor to the U.S. News For Parents blog. “It's an across-the-ZIP-code issue…”
Read more via: How to Prevent Your Kids From Becoming Rich Jerks | Family Finance | US News