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Posted 9 November 2020
Mother or Father, as you are reading this, I must congratulate you for at least thinking of your child’s future. When other parents are trying to come out of debt, here you are planning for your child.
You might have passed through tough times, and you don’t want your child to do the same. It’s alright; you can do things to make sure it doesn’t repeat itself in your child’s life.
1. Have A Plan
Have you asked yourself why the rich keep getting richer? It’s because when a rich man or woman dies, before their death, he/she has already taught their child how to sustain and get more wealth. When the child grows up, he/she quickly takes over the inheritance and tries hard to grow the business.
These people are risk-takers and have learned so much, which means they are very experienced.
There are benefits when you plan early for your child’s future:
This MarketWatch’sarticle shows how a $1 a day investment can turn into $4,185,342 on your child’s 66th birthday. It shows what compound interest can do. Imagine if your child starts working and puts more into the investment.
That’s why you should always teach your children how to manage their finances so that they won’t be strangers to it.
When you’ve shown your child this path, they can quickly achieve financial breakthroughs. Yes, they might graduate with a lot of loans to pay, but they surely will figure out how to pay because you have taught them how to deal with their finances. You can learn how to teach a child about finances in this article by DaveRamsey.
At first, your child might not appreciate what you did, but they will understand it when he/she is of age. All you taught them that worked, they will also teach their children to do the same. It’s precisely how wealthy families transfer all they know to their children, and the ones that inherit the business or properties would just begin to do what their parents taught them. In this article by BNY Mellon, you will learn how to prepare your children for their inheritance.
2. Work With Your Child
We keep hearing “Family Business” everywhere we go. People love family businesses because they know they work hard to satisfy their customers. It might surprise you to know that Walmart is a family business.
It’s good to invest money and give your child when he/she turns eighteen, but the truth is that starting a business will help your child. You need to have something built so that when you die, your child can take over.
At first, you might not have the money to start up a business, but you can save up to invest. Many people think they must invest in their passion, but the actual truth is that you have to invest in something that will make you money. If not, you will be out of business before you know it.
What you should know about starting up a business:
You could be working with your child to get the business going, but the fact is that you are alone. Your child doesn’t know much and is learning from you. You are the one to make the business work. You have to figure out how to get customers that will buy your products.
Companies borrow so much money to keep them going or sell stocks to help raise money. But this strategy is dangerous, especially if you want to build a family business that will last long. I’m not saying your business can’t go public in the future, but you need to focus on growth without having so much debt. You don’t want any shareholder or debt collectors to take your business.
Every small business owner admires big companies and even draws inspiration from them. There’s nothing wrong with that, but you should know that most of these big companies we see today are very old, and they’ve built their customer base for decades.
What are the chances of a startup? The chances of a startup becoming popular or significant are very slim but possible.
When you start up a business, it could take years to spread the message of your physical or online presence, and yes, it could be a gradual or fast process.
These companies everybody admires have big budgets, and they even spend billions of dollars on advertisement.
How can you compete? The only way for you to compete is to start small. You might not have that much budget, but you can still do your advertising with the little money you have.