4. Starting the Paycheck to Paycheck Syndrome

If a five-year old child takes a dollar and spends a dollar, the child will do the same at ten, at fifteen, and then at twenty. The habit of spending it all will stay with your children into adulthood, and they will grow up to live paycheck to paycheck. If you make a million and spend a million, you are still poor. Being wealthy has nothing to do with how much you make. It has to do with how much you keep! These habits will set your child up for financial ruin. Explain to your child when you purchase something at the store and spend all you have, the store now has all your money. You have nothing but the item you bought, which may or may not last.

·    Our country is notorious for spending more than they have, and the citizens of this great country are following down the same path, but the problem is we are not allowed to print more money like the government, because it’s called counterfeiting.

·    Just ask your child this simple question, “Would you like to be Wealthy or Poor when you grow up? If your child answers wealthy then, you must teach your child the 10/10/10/70 concept. Children can easily learn this formula and follow it throughout their lives.

·    Give 10% to the charity or cause of choice. When children become givers, they become more aware of others and less selfish. Giving starts the receiving process and is a sound financial habit.

·    Invest 10% in stocks, bonds, mutual funds, businesses, real estate, money markets, CD’s, INGDIRECT Accounts and build your financial security through allowing your money to work for you.

·    Save 10% for you future and emergencies. The savings portion represents the liquid cash necessary for emergencies in case of a job loss, medical expense car repairs ect. Your child does not have to worry about this yet, but they will be prepared for when they go out on their own and have plenty of money saved for emergencies.

·    Spend 70% wisely on what you need and want. Always ask yourself the question, do I need this, will I use it, do I love it, and do I have to have it. If you can answer yes to all these questions then by all means buy it. If you can’t then the item is not worth your money! This is how you become a wise consumer.

·    Creating the habit of dividing your money before you spend is essential to your financial future. Starting your children on the 10/10/10/70 concept will guarantee your child financial security. Because your child will practice giving back, paying themselves first and living within their means. This will become a habit and be the default action your child knows and lives by.
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