Bill and Melinda Gates gave their kids a strict ‘middle-class' upbringing — here's how to set your kids up for success

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3 days ago

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Raising self-reliant children can be challenging, especially for wealthy families. Kids who grow up in households with vast resources may struggle to see the value of personal achievement.
"I went to school with some of those kids at Duke University, and I vowed to myself that if I ever had resources at my disposal, those were not the kind of children I wanted to raise," Melinda Gates said in a New York Times interview, referring to kids whose parents had their names on the side of buildings.
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While most families don't share that level of wealth, all parents can benefit from teaching their children the importance of earning, saving, and managing money wisely.
Provide an allowance to learn good money management
The Gates children, despite their parents' wealth, had limited financial resources and learned to use them wisely.
"They had an allowance," Melinda Gates explained, adding that their kids had to wishlist desired items, which they might receive on special occasions.
Allowances, used by 79% of parents according to a T. Rowe Price survey, help kids understand the value of money and make smarter financial decisions.
While the Gates children may have learned their money lessons young, not all Americans reach adulthood with financial literacy. If managing a budget feels overwhelming to you, Monarch Money's expense tracking system simplifies the process.
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Read more: BlackRock CEO Larry Fink has an important message for the next wave of American retirees —
Help them understand their privilege
If your children are lucky enough to enjoy experiences that many cannot afford, it's important to help them understand that this is a privilege, not everyone has and that being mindful of this matters.
"We said to them from a very early age, you know you really are not allowed to tell other people how we flew on this trip back and forth, otherwise it will separate you from other children," Gates said.
As you work to raise privileged kids with empathy, it's equally as important to make sure they are financially savvy — especially for a distant future when you aren't around. It may be worth laying out succession plans with platforms that make it easy and stress-free.
With Ethos Will & Trust, you can create both a will and living trust online from the comfort of your own home in as little as 20 minutes. All documents created on the platform are vetted by experienced estate-planning attorneys — giving you complete peace of mind.
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You can create a will starting at just $149 and a living trust starting at just $349. And if you're not happy with the results, you're covered by a 30-day money-back guarantee.
By following these tips, you can raise kids with good financial sense so they can build their own success.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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