The rich minded parents always treat and grow their children differently. Rich parents always teach their children those qualities which help their children become rich and live a happy and prosperous life. In a study, it was found that 90% rich people are born to rich minded parents. In this article, I will be teaching you some lessons that rich parents teach their children.

8 lessons rich parents teach their kids right from their childhood:

1. How money works:

Rich parents always tell their children how much they earn and how much they spend. Whenever rich parents make financial decisions; they include their children with them so that they can learn and grow. On the other hand, poor or middle-class parents never reveal their income to their children and tell them to focus on studies and get good grades.

Watch this video to see how money works:

2. Difference between assets and liabilities:

The poor do not know the difference between assets and liabilities and that’s why they remain poor all their life. The rich know the difference between the two and teach their children accordingly. The simple difference between the two is that assets put money in your pocket and liabilities take money out of your pocket. To know more about assets and liabilities; I suggest you to read the book ‘RICH DAD POOR DAD.’ 

Watch this video that summarizes ‘Rich Dad Poor Dad’: 

3. Stop expecting immediate results:

Poor people expect to get rich quickly. They expect to get a high paying job or to win a lottery. On the other hand, rich parents teach their children to have patience in life. They teach their children to create value in life and money will follow. In a study, it was found that those students who have patience in life are more likely to become rich in future than the students who don’t. 

Patience is bitter, but the fruit is sweet.

4: How to build up habits:

Rich parents teach their children how to build habits that can change their life. Rich parents help their children develop habits that can help their children live a great life.

Humans are creatures of habit. If you quit when things get tough, it gets that much easier to quit the next time. On the other hand, if you force yourself to push through it, the grit begins to grow in you.  – Travis Bradberry

Watch this video on how to develop rich habits. 

5. Money is a good thing:

Poor parents always tell their children that money is the root of all evil. On the other hand, rich parents tell their children that money can never buy you happiness but it can help you solve a lot of your problems in life. Rich parents advice their children that money is like clay; one can make a God or a Devil out of it.

6. Increase income instead of lowering expenses:

Poor people focus on cutting expenses instead of increasing their income. On the other hand, rich people focus on increasing their income. Poor people buy according to their budget. Rich people first decide what they want and accordingly they make money to buy it.

Let’s take an example: there are two people P and R, P is of poor mentality and R is of rich mentality. They are both planning a vacation to Dubai. Now the budget per person for this trip for 7 days is 1 Lac Rs. They both have only 50,000 Rs. In this situation, people like P will shorten the days of the trip or will go to some other place which can be visited under 50,000 Rs. In the same situation, people like R invest their 50,000 Rs. and try to afford the amount of 1 Lac Rs. and only after that, they schedule their Dubai trip.

7. Don’t work for money; let money work for you:

Poor people teach their children to study hard and get good grades for a good job. Rich people, on the other hand, teach their children about how to manage finance. Poor people exchange their time for money and later spend that money on liabilities, rich people use the money they get to create more money. 

Watch this video to learn how to make money work for you:

8. Solving the problem is the quickest way to get rich:

The fundamental difference between what the rich tell their children and what the poor do is getting rich and getting paid. Poor people do basic work that does not require much skills like washing cars, selling things, etc. On the other hand, the rich try to solve problems and they keep on trying new things. Remember that people will pay you money if you solve the problem/problems they are facing.

A wise man once said that if you want to be a billionaire solve a billion dollar problem or a problem of 1 billion people.