A couple years back I read The Millionaire Next Door. It is a good book to read. There are a number of insightful lessons. I'll have my daughters read it when they are teenagers.
One of the points the authors make is that families which accumulate wealth are very good about teaching their children to spend the money, but almost always they do a very poor job of teaching children how to manage the money. The end result is the children and grandchildren end up eating the golden goose.
The Christian Science Monitor has a good summary of this problem in an article yesterday, How to Beat the Midas Curse. Even if you don't have wealth, it is very important to teach your children how to manage their money. Last year I read The Richest Man in Babylon out loud to my older two daughters. When we were part way through the book, my eldest daughter started putting more money in her savings. This gave me hope that my daughter was learning the basics of money management.
(Hat tip: reddit)
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Technorati tags: money, wealth, manage money, money management, The Millionaire Next Door, The Richest Man in Babylon
2 comments:
I've read the Millionaire Next Door, and I'm ready to be one!
Those two books - The Millionaire Next Door and The Richest man in Babylon - I recommend to all my clients. These books give great examples and stories that stick in minds and change habits.
I read some of the Richest Man stories a few years ago to my older children (10 and 12) and will re-read it to them again soon.
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