When I read statistics like that, it really drives home what I hope my legacy for my grandchildren will be… lessons not likely to learned in school or off an iPad:
- The virtues of saving, allowing interest to compound, and accumulating wealth.
- The value of staying out of debt and living within your means.
- The timeworn truth that they cannot trust the government to keep its promises.
- The knowledge that the safest investment they can make is in themselves.
Our grandchildren need to learn how to accumulate capital and make it grow. Then, someday, that money will give them many more cool life choices, like not having to work, particularly in a job they may not like. These are lessons on values and discipline that are unlikely to be taught satisfactorily outside of the home. As grandparents and parents, we must continue to remind ourselves that teaching these lessons is our job.
I have a friend who, every year, gave his children a gift of common stock in a well-known US company. Each year he would sit down with them and explain how much they had earned in dividends, and how the stock had appreciated. His children are now in their 40s, and still own some of that stock today. This friend sure had the right idea.
I urge you to pass this article on to your children and grandchildren; they will thank you for it… eventually. For further learning on investing that could help the next generation, I urge you to read our special reports or, even better, to get a risk-free subscription to Money Forever.
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