Lesson #14: Reviewing the Meaning of Rich
In all our lessons so far in Kids & Money, we’ve focused on helping both us – and our children – define the meaning of rich, as well as other financial life skills along the way that contribute to this goal.
Here’s a summary of the main financial wellness concepts we’ve covered that help us to define the true meaning of “rich”:
- Income needs to be greater than expenses to feel better; i.e., have an emotional benefit.
- Having more stuff isn’t what creates long term emotional benefits.
- Having the margin to afford nice things is what creates Quality of Life.
- Rich is a feeling, not a status.
- Rich is not based on Standard of Living, it’s based on Quality of Life.
- Increased Breathing Room in your finances equals increased Quality of Life.
Anyone! The key point:
Rich is a management issue, not a class issue.
The next set of lessons will cover the meaning of Opportunity Cost, which we’ve touched on earlier. You’ll see some repeat themes, and this material is cumulative. Part of our mission is to always keep the material simple to understand and teach, and we welcome any feedback you have for us!