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.

How to Define Rich

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.

 

Teaching Kids Money SkillsSo, who can get rich?

Anyone! The key point:

Rich is a management issue, not a class issue.

For Parents:

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!

 Get in touch with Chad at Allen & Co., or see other Kids & Money content here.

 

May 2018