5 Ways to Raise Your Kids to Be Millionaires

These are valuable lessons you need to know.

One of the greatest challenges for parents is raising their kids. Most likely you never took a class on parenting. I think we all missed that class in school. Raising your kids is one of the toughest jobs you’ll probably have as a parent.

First, let me say I am not here to tell you how to raise your kids. I have no parenting certification or written a best seller on parenting. You can ask my kids, I still make mistakes.

Second, you may be teaching your kids perfectly fine. As a parent, you want to do your best for your kid, but learning a tip or two never hurts.

Third, I have high expectations for my kids and want to share five tips you can easily adopt. I probably get this from my mom who always pushed me in school. She wasn’t overbearing but would ask me how come I didn’t get an A when I brought home B’s on my report card in elementary and high school. But if they come home with a B, then that’s fine. It happens sometimes.

Fourth, you may adopt traits that your own parents used as they raised you. Or maybe you had bad parents and want to go in the opposite direction. Your parents never had a parenting class so I’m sure they also made a mistake or two along the way.

These are five tips I used and I’m sure there are many more. These will help give your kids a little edge as schools seem to be more competitive today than when I went to school years ago. Kids have to know more the younger they are. It’s almost as if society wants them to grow up faster.

Financially educate your kids

Finances and money will definitely be part of your kids' future. Whether they use a phone to buy their product or they start to use cryptocurrencies, kids will definitely need to know a little bit about money.

When my son was younger, I used to play a Rich Dad Poor Dad CD in my car as I would take my son to school. At that age, my son didn’t understand every word Robert Kiyosaki said, but he started to understand a little bit that he heard. Occasionally he would ask me a question about something he heard.

Also when he was young, I bought the Cashflow for Kids game. This is another Robert Kiyosaki product but it is geared towards kids. This game is easy to play but you might call it a more advanced version of Monopoly. Real-life concepts are taught in the game and help to increase your child’s financial awareness.

I do also encourage you to play Monopoly as well which is a great game. I played Monopoly a lot when I was a kid.

Finances may be taught in school today but there is still a lot of information kids needs to know. Any little help you can give them will surely help them.

Open a brokerage account for your child

A lot of people talk about opening a 529 college savings plan but what if your child doesn’t go to college? I think opening a stock brokerage account is a great substitution and allows you to access the money regardless if your child goes to college or not.

Many big banks and some stock brokerage accounts offer custodial accounts. A custodial account allows you as the guardian to open an account on behalf of your child. You maintain ownership of the account and the account is in your child’s name. Basically you are the custodian or sponsor for the account even though the investment is for your child.

Encourage your kids to dream big

As a kid, we all had big dreams. Sometimes the dreams are ridiculous. Others' dreams may be possible. These days, anything is possible. If your kid wants to be president of the United States, then let them have that dream. If your kid wants to be a famous sports player, let them dream that dream.

Too often as we become adults, we lose focus on our dreams. Life takes you in a different direction. Sometimes we need to look back and keep that dream alive.

The dream may not come true in a year or two. The dream may take many years.

Let your kid have their dream and encourage them as best as you can. It’s the worst feeling as a kid to hear your parents say that’ll never happen. Don’t be a dream crusher.

Enroll your kids in free technology classes

This summer, with the coronavirus, everyone’s plan was changed. You may have wanted to go on vacation but with limited travel, you may have nixed that vacation this year. This summer my kid’s school had free classes and I enrolled my daughter in a few coding classes.

For me personally, I don’t think I’ll do any coding in my lifetime but for my kid’s this could be their future. Technology is one of the biggest fields right now. For kids, this is their future. They’ll most likely use technology more than you or I will.

Who knows, they may work in a technology company. Tech companies are hiring and they want the best and brightest.

If a technology class isn’t available, search online for free classes. The class may be very basic but the class could spark an interest in your child now or one day in the future.

Teach your kids manners

Today with more kids using technology there is a downfall. Kids have a hard time talking in class since they are used to talking to their computer or phone. Kids may also be hesitant to look at an adult in the eye. This is when you need to teach your kids manners and how to address someone.

It’s too easy for a kid these days to copy what a YouTube influencer is saying. You have to teach your kids the difference between right and wrong. Basically, use the golden rule to treat others how you want to be treated. If your child wants to be treated fairly then they need to talk to their friends and others the same way.

Kids are like sponges and will copy anything they hear. But if they hear or see something that doesn’t sound right, they can ask you to explain it. If your child already knows they should not repeat something, then they’ll know. Most likely you’ll have to continue to explain right from wrong. Kids can be so easily influenced these days so hearing your thoughts will help them in the future. Your kids will get to a point in life where they think they know it all and at that point, they may not listen to you. So start early talking to your kids.

Get your kids a cheap insurance policy

This one is a bonus and not really a tip to help your child but it may help you financially. I have a background in life insurance and in a former life I sold life insurance policies. I no longer am in this field but want to share a valuable tip with you.

Over the past few years, I have seen a lot of fundraisers and Go Fund Me accounts created for children who suddenly passed away. It’s unfortunate this happens and no parent expects their child to die before them. In life, this happens and many times it puts parents in a financial bind.

To avoid having to create fundraisers or a GoFundMe account, get your child a cheap life insurance policy. A term policy would cost around $10 a month. If you can afford more, buy a whole life policy. Your life insurance agent can go into more detail on the best option for you.

I recommend getting a life insurance policy even as early as a child is born. If for some reason, the child develops an uninsurable health condition, your child will be covered. Some life insurance policies will not cover you or your child if they develop an uninsurable health condition. I know this sounds crazy but that’s how the life insurance industry works. There may be some life insurance companies that will cover your child but many will not.

This is a worst-case scenario getting life insurance but life happens. You don’t know what happens. Life tends to throw everyone a detour when we least expect it. You may think this will never happen to you, but no one has a crystal ball and can predict the future. I think it’s best to take this and look at the worst-case scenario. Hopefully, you won’t have to use the policy and your kids outlive you. That’s what we all wish as a parent.

What tip did you like best in this article?