During my upbringing, I held both the ambition and the conviction that I would achieve financial success. My initial belief was that a high-paying job as an actuary would pave my path to financial prosperity. However, reality had a different plan in store for me and I did achieve financial success but via a non conventional path.
I believe that the desire for financial success and the belief in achieving it are shared by most young people. However, like my own experience, our education system often neglects to impart financial responsibility skills. Consequently, the responsibility to acquire this knowledge often falls on the individual, either through self-education via research, reading, audiobooks, or guidance from mentors, such as parents.
It comes as no surprise that a significant number of Australians find themselves living paycheck to paycheck, accumulating more debt than assets, and facing the potential loss of their homes during challenging times. Many students pursue higher education and accumulate substantial HECS debt while simultaneously grappling with credit card debt, largely stemming from consumerist habits.
Our children are growing up financially illiterate, which often leads to financial struggles in adulthood. Successful parents who mentor their children impart specific daily habits that set them on the path to financial success.
In the #1 bestselling book, Rich Habits – The Daily Success Habits of Wealthy Individuals written by Tom Corley he uncovered these specific habits that were common among the poor.
1. Not Reading to Learn
In his study, 63% of self-made millionaires were required by their parents to read for learning. They read two or more books each month on various topics, including history, biographies, science, and self-improvement. On the contrary, 97% of the poor were not encouraged to read for learning. Now days reading could easily be replaced with podcast, audiobooks or documentaries.
2. Gambling
While only 6% of the wealthy played the lottery, a whopping 77% of the poor participated. Habits like gambling tend to spread within social networks, making it crucial for parents to set positive examples.
3. Failure to Experiment
A remarkable 82% of self-made millionaires pursued their dreams or passions, compared to just 3% of the poor. Encouraging children to explore various activities during childhood increases the likelihood of them discovering their talents and interests.
4. Eating Unhealthy Food
His study revealed that 21% of the wealthy were overweight by 14 kgs or more, while 66% of the poor fell into this category. Parents can establish healthy eating habits by providing nutritious meals.
5. Too Many Time Wasters
63% of the wealthy spent less than one hour per day on recreational Internet use, compared to 74% of the poor who spent more than an hour. Parents must monitor their children’s activities to combat time-wasting habits.
6. Absentee School Parents
Engaging with teachers and attending school events positively impacts a child’s performance. In the study, 83% of the wealthy attended back-to-school nights, compared to 13% of the poor.
7. Lack of Growth
Encouraging daily self-improvement and learning is vital. While 63% of the wealthy listened to audiobooks during their commute, only 5% of the poor did the same.
8. Spending 100% of Your Money
73% of the wealthy spent less than they earned, long before becoming affluent. Conversely, 95% of the poor were never taught this habit.
9. Toxic Friends
Building positive relationships with like-minded, optimistic individuals is crucial for success. While 79% of the wealthy did so, only 16% of the poor followed suit.
10. Poor Work Ethic
92% of the wealthy created their own good luck through hard work, persistence, and determination. Encouraging part-time jobs helps instill a strong work ethic.
11. Victim Mindset
In the study, 79% of the wealthy believed they were individually responsible for their financial circumstances, whereas 82% of the poor thought external factors were to blame.
12. Lack of Consistent Exercise
Regular aerobic exercise has been shown to improve brain health. Children mimic their parents’ habits, so parents should prioritize physical activity.
13. No Success Mentors
Many self-made millionaires had success mentors who guided them to success. Parents and mentors play a crucial role in instilling good habits.
14. Negative Mindset
Maintaining a positive, optimistic mindset is essential. A negative outlook inhibits certain brain functions and can be passed down to children.
15. Impatience & Cutting Corners
Building wealth rarely involves taking shortcuts or relying on “get-rich-quick schemes.” It requires patience and the passage of time. Children should be taught that through the power of compounding, financial goals can gradually be achieved.
Conclusion
Parents have a significant influence on their children’s habits, and studies show that most habits are formed by the age of nine. Teachers can also play a role in teaching essential habits, such as financial literacy. Structured habit education should become part of the curriculum, covering topics like financial responsibility.
One or two rich habits can transform a life, and they include habits like reading, listening, saving, exercising, building relationships, and maintaining a positive mindset. Additionally, high schools should offer financial education courses to equip students for financial success. Our children’s futures depend on the habits we instill in them, and it’s time for parents and educators to take the lead.
TheBucket 