I grew up on a farm, and my grandparents were a big influence on my life. I credit much of the financial success I've had since then to the strong work ethic and entrepreneurial spirit I learned from them.
My kids haven't grown up in the same farm environment, but I've definitely tried to help them develop similar habits that I hope will serve them well in their adult lives.
Here's a strategy that I've been using to help my kids develop a stronger work ethic and save for college in the process:
Find jobs in your business that your kids can do that will teach them work ethic, responsibility, and basic money management.
Pay them a fair wage for their work, and then put half of their earnings into a college fund.
Invest the money in a low-cost index fund, such as VOO, which has averaged 10% annual returns over the long term.
If you do this for 8 years, and your kids earn $500/month for their part-time work, they'll have over $35,000 saved for college by the time they turn 18.
This strategy has a few advantages. First, it helps your kids develop good lifelong habits. They learn the value of hard work, responsibility, and saving money. Second, it gives them a decent start on funding college. And third, it's a win-win for everyone involved. You get the help you need around your business, your kids get paid for their work, and they save for their future.
I've been using this strategy with my kids for a few years now, and I've been really happy with the results. They're learning valuable skills, they're saving money, and they're excited about their future.
If you're looking for a way to help your kids develop a strong work ethic and save for college, I encourage you to give this strategy a try. It's a win-win for everyone involved.
These basic life skills were a gift from my grandparents that continue to give long after they have passed, and I’m extremely grateful to them for it. I hope I can do the same for my kids and grandchildren.
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