by: Chuck Kuster
If financial education works for wealthy families, won’t it work for the rest of us? Are rich people simply smarter at managing money than the masses? Or, is it something else?
There is no denying the “wealthy” have easier access to education, support systems and capital the middle and lower economic classes do not. But there is nothing in the genetic makeup of the wealthy that makes them smarter. Their big advantage is a tendency to make financial education a family priority.
This became evident to me while visiting with a wealthy friend with teen twins. She shared how their family’s bank assigned her children a “personal banker.” This banker set up the teenager’s accounts, and monitored balances. Parents set boundaries on how much money could be spent per month, and reports were emailed to both the teens and parents. The education included seminars on selecting colleges, basic stock portfolio management, even Internet security.
This bank’s program had to be very expensive for the bank and time-consuming for the family. Obviously, the benefits had to be substantial to justify it.
Parents can be jealous that these so-called rich kids were spoon-fed financial education by their bankers. But with some effort, most of the content is available in most libraries. Genetics has nothing to do with it.
A class envy comment about the “rich” is a Money Moment™. Point out that most people got rich by earning their wealth through wise financial management, hard work and/or risking capital. Then, offer support on how to teach your children about money management.