Ask any parent and they will tell you that the child’s first years are the most important in its development. Most parents dote over their children and want the best for them. Parents want well rounded children who will grow up to be happy and successful in life. Parents provide sustenance, a chance to improve and develop. They handhold them through their growth and encourage them to move out of their comfort zones and create spaces for them to experiment and improve . Parents plan and provide for their children.
Our money is very similar to the child. Money can be earned but it cannot take care of itself. All children do not turn out to be successes. The money parenting results of some have a similar outcomes too.
A grown child can take care of itself . Nurturing the child in the initial years is what puts it on a road to success. Safeguarding the child, nurturing it with nourishment and providing it safety to mature is what good parenting is all about .
Nurturing your money in the initial years when you’re building a corpus is a first step of money management. Building your wealth through continuous accumulation, allocating it appropriately and ensuring that it is not unduly impacted by market vagaries goes a long way in creating a substantial corpus. A corpus once built can withstand the vagaries of financial environment better.
Some people grow with stunted personalities and never grow out of childhood. Some are unwilling to fulfil their potential and still others grow reckless and at times insular . Our money can take on these personalities too. An unduly conservative approach may make your money frightful and it may never achieve its true potential. Reckless parenting of money by taking undue risk can lead to outcomes that may be irredeemable. A single asset investment approach to the exclusion of others make it insular and unadaptable. Sigmund Freud propounded that adult behaviour is the reflection of the parenting it receives as a child. Your financial outcomes is a reflection of your parenting ability of your Money.
Happy Parenting!
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