Teaching Work Values to Children of Wealth

Steven D. Hayworth, chief executive of Gibraltar Private Bank and Trust, is thrilled that his daughter will be working this summer at a women’s clothing store before heading to college in the fall. It is not the particular job that pleases Mr. Hayworth. Rather, he is hoping his daughter will make the connection between how much she earns each day and what that will buy.


“As a parent who has worked his whole life and has had a little bit of success in my career, one of the huge life lessons I learned early on is the value of a dollar,” said Mr. Hayworth, whose bank is based in Coral Gables, Fla. “Particularly for children of upper-middle-class and affluent families, there’s no perspective on value. When the new Range Rover pulls into the driveway, there’s no concept of how many hours of hard work went into owning that vehicle.”


Unlike many collegebound children today, Mr. Hayworth’s daughter would have had no worries if she had not been able to find a job. She could have spent the summer by the pool knowing her parents had the money to put her through college.


But the fact that she does not have to work is exactly what worries Mr. Hayworth and many other affluent parents. The recession and tight job market have made it imperative to teach their children the value of work. They worry about that, it seems, more than about any short-term swings in their portfolios.


More: http://www.nytimes.com/2010/05/29/your-money/29wealth.html?src=me&ref=general

I once read about a very interesting study -- basically, the researchers took a group of very young children [4ish] and gave them a choice: two marshmallows now or four later? Fast forward 25 or 30 years, and the correlation between successful adults and the kids who were able to delay gratification [ie: chose four marshmallows later] was striking.

My parents were pretty well off, but they just didn't give me money. When I was a teen and in my early twenties, I got the Swedish state student stipend, a measly sum of HK$ 2000 or so per month, and I lived at home for free. If I wanted to buy something for myself I had to work. There was never really a question in my mind about the thing.


So I fully agree with Mr. Hayworth. Teach your kids how much it takes to pay for the Range Rover.

I love this thread...my son will turn 14 years old this Month on the 18th. When he turned 13th last year, I gave him a nintendo game unit that he wished to have before his birthday. This time he wished for an iphone and a new PSP. I check how much it cost. Told him the price and how much I earn a day. He was shock with the cost and how much I have to sweat for this gadgets... But I was more than shocked when he opened a box full of coins and a couple of 20 dollar notes. Asked him where these money came from and he said from a news papers and magazines he sold with our helper. These are newspapers and magazines I brought home everyday from work. Our helper compiled it for him and they both sold it in a stall near our apartment. He said that our helper told him once, when I was sick that she pitied me for working so hard for him. And heard me talked with a friend over the phone that his future lies only in my hand that's why I need to work hard. He counted the money from the box and said he earned $455.00 for for one year from the newspapers and magazines that I used put in the bin and added not enough for his iphone and psp. More shocking for me, he called my sister if she needs help in her restaurant that he can be paid off for him to buy his iphone and psp. Thanks to my helper! So with this I agree with Mr. Hayworth. These are but just one example to teach our children how we earn money or wealth. Thanks Ed for ppsting this.

Here's a friendly link [ie: non-academic] link to the marshmallow test.


http://www.newyorker.com/reporting/2009/05/18/090518fa_fact_lehrer

That sounds like quite a young man and a good helper to boot!

I can't agree with the concept more. I applaud those that made it through college/university with their part time and summer jobs. When kids are old enough to spend money on their own they should "work" for their spending money via responsibilities in the house. Teaching the concepts of saving, investing, budgeting and giving will pave the way for them to know the value of money and managing it.

Daddy's Little Money Pits


http://online.wsj.com/article/SB10001424052748703961204575280522927340504.html?mod=WSJ_hp_editorsPicks_2