Pocket Money is not enough!

It is really not enough!

In my last blog, I wrote about the importance that children have to learn how they can recognize opportunities. The European and international stats are talking a very clear language.

If they learn how to save money they have with this only one aspect covered. Children need to get a feeling about what they never want to experience. I like to tell you about the way I chose with my son when he was 6 years old.

The emotional impact

One morning I told my son to prepare for a short trip. Of course, he was curious and asked me where we go but I told him just to prepare. After driving a while we reached a place in the city, he never was yet.

It was this kind of places people only go when they don't have another choice. Shabby houses, a dirty street and those eerie silhouettes vanishing round corners and disappearing again somewhere. I parked the car in front of a restaurant. The broken neon light over the entrance seemed to tell from better times.

Entering a pungent smell of old oil covered us. I could feel that my son didn't feel comfortable. While we were waiting for the ordered food, I was observing my son. He seemed to be completely lost and he asked me: "what happened to this place?".

I looked very long into his eyes and then I told him that this can happen to everyone who is not able to manage his money properly. My words had the desired impact and we ate quietly our meal. It was very oily cooked and had almost no taste.

After paying the bill, we left the restaurant still quiet and in deep thoughts. I could see his brain was in high alert and a million thoughts seemed to run through it.

The option

My son was visibly relieved by being back in our car and his voice came slowly back. While I drove to the next place he asked me a lot of questions about poverty and actions leading to such an uncomfortable situation.

The next place was the absolute opposite. A hotel with a five-star kitchen. A coffee alone was more expensive than the whole meal from the experience before.

We were sitting in elegant armchairs with a wonderful view over the Rhine. All people were so wonderful dressed. Two waiters were there only for us. My son could no longer resist expressing his amazement and he said: "here I like to stay the rest of my life".

I told him that this kind of lifestyle is absolutely possible and that it needs the ability to see the opportunities to make good business. I told him also that it needs a good money management for a lasting cash flow.

Although he was not yet ready to understand all that I told him about money, but I could see that his interest was woken.

The insight

Since this notable day, I could observe that my son started to deal completely different with his pocket money. He spent from time to time to enjoy, he gave sometimes some francs to people in need and he saved money.

There I started my next challenge for him. I told him that I will double every saved amount he brings to his personal account at the bank. So it came that I had to give him sometimes up to 300.-- additional to his 300.-- he brought to the bank. I guess I must not tell you that his account is in a very well condition today.

I like to encourage you to teach your children all about money. If you are struggling yourself then get a mentor who teaches you and then you can give it forward to your children. And if it is their wish you see them buying their own car when they are allowed to drive a car. I wish to you and your children all the best and a solid knowledge about money.

Love, Martin