9 important money tips every dad should teach his children

By Len Penzo

For the Deseret News

Published: Sunday, June 16 2013 5:25 p.m. MDT

A big part of our financial success is based upon the decisions we make in life. As I see it, there are four key milestones in life: 1) getting a good education, either through college or via on the job training; 2) establishing your career; 3) marriage; 4) kids. If you follow those milestones in order, you’ll greatly increase your odds of achieving financial freedom. However, if you take them out of order, you’ll quickly discover that life not only gets more complicated, but also gets significantly more difficult financially.

7. The harder you work, the luckier you’ll get.

It’s easy to belittle the good fortune of others by attributing their success to luck, and in some cases that may be true. However, the real wellspring of success is found through lots of hard work coupled with a serious passion for whatever you do — so make sure you find a job that you really love. If you’re fortunate enough to do that, the odds are good that you’ll end up making your own luck.

8. You won’t be young forever, so take advantage of youth while you can.

Did you know that thanks to a little thing called compound interest, even folks with modest incomes have a good chance of becoming millionaires? That’s because, given enough time, compound interest becomes a force of monumental proportions; Albert Einstein dared to call it the most powerful force in the universe. Think about it: let’s say you earned $2,500 working a summer job. If you invested that money in an account that managed to earn 8 percent every year it would grow to $117,254 after 50 years! But here’s the rub: after 40 years you’d have almost $63,000 less in that account. That’s why it’s important to start saving as early as you can.

9. Always strive to spend less than you earn.

If you take nothing else away from our little talk today, remember that the easiest path to a life of financial freedom is to always spend less than you earn. Do that, and many of the other lessons I just shared with you will naturally take care of themselves.

Well, that’s it for now, kids. Please, though, don’t tell your mom we had this little chat. Then again, on second thought, go ahead; she knows your dad is right. Well, at least he is this time.