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Growing up rich has many perks, but it can also hinder a person from learning essentialmoney lessons.
Read below for their insights onmoney lessons they wish they had learned.
When I first left home and lived alone, I struggled to balancemy expenses and income.
Nischay Rawal, CPA, founder and managing partner ofNR Tax & Consulting, shared a similar experience.
Money was always there for whatever I needed or wanted.
As a result, I didnt developkey financial skillsthat most people gain from an early age.
Thefirst few yearswere a crash course in Finance 101.
I made many mistakes that could have been avoided if I had a better grasp of basic money management.
Investing Wisely
While I had the money, I never learned how to invest early.
I lost the basis for generating wealth through investment, Hilton said.
Learning investment principles and how to build wealth is crucial, according to Hilton.
How to invest wisely is a critical lesson for long-term financial growth, he said.
Financial Independence
Financial security during childhood is typically already wealth-dependent, Hilton said.
I wish somebody had taught me about financial independence very early.
My parents wealth afforded me opportunities but didnt give me a sense of direction or fulfillment.
I had to discover my own passions and work toward building something meaningful, he said.
The satisfaction of accomplishing goals through hard work was completely new to me.
Rawal added that he wasnt set up for long-term success.
But going through that process gave me amuch healthier perspectiveon money and a deeper appreciation for what really matters.
True success comes from within, he said.
Financial Literacy Based on Modeling
I grew up in a fairly wealthy family.
What I generally found is that my parents modeled great behavior.
They saved and invested, so I saved and invested.
They owned real estate, so I purchased real estate.
They ran their own businesses, so I ran my own business.
While I think my parents modeled great behavior, they often didnt tell me the exact how.
It wasnt until later that Grumet realized the lessons he didnt learn.
The same goes for owning a business.
My parents provided me with the path but never really taught me how to traverse it.
Now that Grumet is a parent, hes trying to teach his children theseessential money lessons.
Modeling: They see me earning, investing and creating wealth.
Grumet said teaching is equally important.
I use didactic methods to sit them down and explain exactly what I am doing and why.
And finally, he noted that experiential learning is vital to teach kids.
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