Years back, I read a book titled "Rich Dad, Poor Dad" by Robert Kiyosaki. That book transformed my thinking radically on issues pertaining to wealth creation and how to create generational wealth by teaching and modeling the right financial life to children. I think you should get a copy of that book and read it.
Through that book, I discovered wealth can be generational not by inheritance only but by modeling and teaching the right financial knowledge to children and helping them understand financial prudence.
I discovered that poverty can be passed from one generation to the next when the wrong financial habits and knowledge are modeled to children. It should be noted that poverty is not lack of money but lack of financial education and intelligence coupled with bad spending habits.
The bad financial habits of some adults and lack of financial wisdom is as a result of what was modeled to them while growing. They caught it from their models and now they are living it. Their children are seeing it and learning, then the poverty cycle continues.
Some saw dad spending on luxury, go clubbing and even neglect his basic financial responsibilities at home. He owed school fees and children sent home from school, owed rent and other bills. Often, he was broke before month end and he'll go borrowing. He lives from pay check to pay check. No sense of investment, just consuming resources.
Some girls grew up seeing mum lack restraint in matters of clothing, jewelries and shoes. She bought everything that was good to her eyes and was in every party with friends who forced her to buy over priced "Aso Ebi"( party uniform) while the children were suffering. No sense of investment, savings or financial plan.
Now in adulthood, they are living like their dad and mum. Theirs is even worse because of the bad economy. One wonders why some adults are wreckless in spending and lack basic financial education to know the difference between assets and liability, when they have deficit and living beyond their means.
Dearest, If you lack basic financial education, go get it now so you don't transfer financial ignorance and poverty mentality to your children. Learn from experts, consult those who know and read books.
Develop sound financial habits and model it to your children. Let them see that you run a family budget and do not buy things on impulse. Raise them to know that money comes by creating something of value (selling of goods, providing services or monetizing their skills) that people are willing to pay for not by magic.
Teach them to know the difference between assets and liabilities. Let them know that ponzi scheme is not investment neither is wealth gotten quick but a long term process requiring intentionality. Let financial education be part of your training curriculum for them. No one teaches these things in school but they can learn it from you. As you teach it, model it to them.
