Finance - Rules for affluent parents and productive children

1. Never tell children that their parents are wealthy - As children was constantly told their parents are wealthy, they tend to think they should live the high-status/high-consumption life-style.
2. No matter how wealthy you are, teach your children discipline and frugality - Teach them by example. Children are exposed to good role models whose lives are characterized by discipline and frugality.

The King's Rule poster:
i) Be tough ... life is. In other words, there is no promise of a rose garden.
ii) Never say "poor me" .. [or] feel sorry for yourself. Stay positive.
iii) Don't walk on the back of your shoes ... Waste not, want not. In other words, don't abuse your belongings. They will last longer.
iv) Close the front door ... Don't waste your parents' money letting the heat out.
v) Always put things back where they belong.
vi) Say "yes" to those who need help before they ask.

3. Assure that your children won't realize your're affluent until after they have established a mature, disciplined, and adult-life style and profession - Set up trust to distribute money to the children until they are forty years of age or older.
4. Minimize discussions of the items that each child and grandchild will inherit or receive as gifts - Never make light of verbal promises: "Billy, you will get the house; Bob, the summer cottage; ..." especially in a group setting. This will create expectation for the child to get the heritage for free.
5. Never give cash or other significant gifts to your adult children as part of a negotiation strategy.
6. Stay out of your adult children's family matter - Let them run their own lives; ask permission even to give advice.
7. Don't try to compete with your children - Never boast about how much money you have accumulated. This sends a confusing message. Children normally can't compete with their parents on this basis.
8. Always remember that your children are individuals - subsidizing underachievers tends to enhance differences in wealth, not reduce them.
9. Emphasize your children's achievements, no matter how small, not their or your symbols of success - teach your kids to achieve, not just to consume.
10. Tell your children that there are a lot of things more valuable than money - Good health, longevity, happiness, a loving family, self-reliance, fine friends, reputation, respect, integrity, honesty, and a history of achievements. Money is the icing on the cake ... You don't ever have to cheat or steal ... don't have to break the law ... cheat on your taxes.