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When I travel the country speaking to high school and college students about exactly what they need to do to become financially successful in life, I like to begin my presentation by asking the same three questions: "How many want to be financially successful in life?"
"How many think they will be financially successful in life?"
Almost every time I ask the first two questions, every hand rises in the air. Then I ask the magic third question:
"How many have taken a course in school on how to be financially successful in life?"
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Not one hand rises in the air, ever.
Clearly every student wants to be successful and thinks they will be successful, but none have been taught how. Not by their parents, and not by their teachers.
Is it any wonder that most Americans live paycheck to paycheck? That most Americans accumulate more debt than assets? That many Americans lose their homes when they lose their job? Is it any wonder that most Americans cannot afford college for their children and that student loan debt is now the largest type of consumer debt?
Parents who are success mentors to their children teach them specific, beneficial daily habits. If done right, these habits can put their kids on autopilot for financial success as adults.
In my five-year study, I uncovered specific foundational family habits that tee children up for success as adults.
Sixty-three percent of self-made millionaires in my study were required by their parents to read books in order to learn. Their parents made them read two or more books every month on topics such as history, biographies of successful people, science, and self-improvement.
2. They avoid gambling
Only six percent of the wealthy in my study played the lottery. According to Yale University researcher Nicolas Christakas, habits spread like a virus within your social network. Children are constantly observing what their parents do; and if the parents gamble, their children will very likely gamble as adults.
3. They experiment with passions
A whopping 82 percent of the self-made millionaires in my study pursued a dream or something they loved. By far, the wealthiest in my study were individuals who pursued a dream or something they were good at and enjoyed doing. On average, these millionaires accumulated $7.4 million in net assets in an average of 12 years. Parents who push their children to experiment with different activities during childhood increase the likelihood that their children will discover an innate talent or something they enjoy doing, which could lead to a lifelong vocation. Consider the Boy Scouts and Girl Scouts of America, which institutionalize experimentation through their badge system. This program enables scouts to explore things that interest them so that they can learn valuable marketable skills.
4. They eat healthy food
Just 21% of the wealthy in my study were overweight by 30 pounds or more, while 78 percent of self-made millionaires ate less than 300 junk food calories a day. Children eat what their parents eat; parents can help set the table for a healthy lifestyle, so to speak, by feeding their family nutritious, wholesome food and eschewing junk food as much as possible.
5. They limit screen time
Sixty-three percent of the wealthy in my study spent less than 1 hour per day on recreational internet use. Sixty-seven percent of the wealthy watched less than one hour of TV per day, and only nine percent of the wealthy watched reality TV shows. Other time-wasting habits included using Snapchat, Instagram, and video games. The lesson? To raise kids who turn out wealthier, parents should proactively monitor what their children are doing and become a bulwark against time-wasting, stare-at-a-screen activities like these.
6. They’re involved and supportive
Eighty-three percent of the wealthy in my study attended back to school night for their kids, and 29 percent of the wealthy had one or more children who made the honor roll. When parents are engaged with teachers and the school and when they act as accountability partners with respect to schoolwork, their children take notice of that time investment.
7. They hang onto their money
A good 73 percent of the wealthy in my study forged the habit of spending less than they earned, long before they became wealthy. Not understanding this critical smart money habit at an early age is why so many fall into the credit debt trap as young adults.
8. They choose friends wisely
Nearly 80% of the wealthy people in my study devoted time to building relationships with other like-minded, upbeat, optimistic, people. How well do you know the friends of your children? Do they possess the positive success traits you are trying to instill in your children? Are they like-minded in the habits you want to instill in your children?
9. They strive for a good work ethic
A whopping 92% of the wealthy in my study said they created their own good luck through hard work, persistence, daily practice, determination, and goal achievement. Are your children learning what it takes to have a good work ethic? Are your older kids required to have part-time jobs? Part-time work can strengthen their sense of what hard work and dedication look like — and can lead them to a brighter future.
10. They got exercise
Exercise matters: 95% of self-made millionaires in my study exercised aerobically 30 minutes or more per day, four days a week. Studies have shown that daily aerobic exercise improves brain health, brain efficiency, and IQ. Children mimic the habits of their parents. Do you, as a parent, exercise daily? Do you encourage your children to exercise daily?
11. They have good mentors
Many of the self-made millionaires in my study had some success mentor in life. Success mentors put you on the fast track for success by teaching you through example you what to do and what not to do in order to succeed in life. Typically, these mentors of my millionaires were one of their parents or a mentor who took an interest in them at work. Are your children part of any mentoring organizations within your community? You can find good mentors for your kids through the Boy Scouts and Girl Scouts, Big Brothers associations, and other similar organizations.
