Sure Start Speke

We all have money habits, different views and opinions on money. What you may not have realised is that most of our habits are taught by our parents when we are kids. Now what this means for society that rich parents teach their children money habits of the rich - poor parents teach their kids money habits of the poor.

Rich parents teach different ways for kids to make money, so if you've ever wondered about this then here are a few points that you might find interesting.

Purchase Assets, Avoid Liabilities: Assets always put money in your pocket, Liabilities do not - they take money out of you pocket. I have 2 friends who earn a similar salary, one of them loves to buy the latest gadgets and is always upgrading his car, I asked him how he managed to afford all this and it turns out he buys it all on credit just paying off the minimum interest. The second friend has been driving the same old bomb for years, yet he has focused for years on consistently buying investment properties, his rental income has become big enough that he's just cut down on his work hours.

Its Easier For A Company To Profit, Than An Employee: The way our tax system is set up, firstly companies pay less tax than employees. Secondly companies pay tax after subtracting all their expenditure, whereas employees pay tax before see a single cent of their pay check.

The rich take advantage of this system, by ensuring they own companies. In contrast the poor and middle class, generally will remain employees their whole life. This means that the rich actually pay less tax than the poor which may come as a surprise to many people.

The poor and middle class have a habit of telling their kids to study hard in school, get good grades, go to college and get a secure job. In contrast to this rich parents encourage their kids to invest in property, start their own companies.

For all parents out there, remember this: Closely monitor your attitudes to money, because your kids are learning all their own money habits from you even if you don't realise it. Be the leader and set the example, if you do this, your children will as successful as you know they will be.