Children of the celebrity elite. It’s all trust funds and super sweet 16th birthday parties, right? Well, not in all cases. This week Sting has declared he will not be leaving his children a huge trust fund. Instead Sting insists that they work to earn their money.
“All my kids know that and they rarely ask me for anything, which I appreciate. Obviously, if they were in trouble I would help them, but I’ve never really had to do that. They have this work ethic that makes them want to succeed on their own merit.” Sting told The Independent earlier this week.
Quite right Sting. Getting children to understand that they need to earn money is a very important lesson. He’s not the only one dishing out strict guidelines to his children either. Barak Obama and wife Michelle have told their daughters that they need to get a minimum wage summer job this year.
Even the world’s richest man; Bill Gates has been quoted saying “They need to have a sense that their own work is meaningful and important.”
No matter what your circumstances are, there are a few things that everyone can do to teach their children how to manage money (even Sting).
Here are a few ideas for simple exercises to do with your own heir:
Out and about this summer? Whether you’re holidaying in Dubai or Cornwall, get your kids choosing lunch for the whole family. A simple task like this starts to get children comparing prices of different food and understanding what is and isn’t expensive.
Set some long and short term saving goals. Long term goals teach children to be patient and wait for a reward. Short term goals will also teach children to save and be patient, but also enable them to experience the feeling of spending that money. For example, get children saving money for a day out or holiday as a short term goal and saving for a game they want in the long term.
Children and teens are savvy on the web - so why not get them to help out to research and recommend the best deals for holiday purchases? If you collaborate with your children and get them involved in purchasing decisions such as the next television or toaster, they’ll have a greater understanding of the value of money and appreciate the final purchase even more.
Try these simple exercises over this summer and improve your kids understanding of good money management. You’re welcome Sting.