Financial Independence: What It Is and How To Raise Financially Independent Adults

Financial Independence is mostly defined as getting to a stage in one’s life where there is enough income to cover one’s current lifestyle, without needing to work.  It requires time, patience, the right mindset, The 10 Millionaire Mindset Money Habits, and a belief that it’s possible.

In his book ‘Rich Habits – The Daily Success Habits of Wealthy Individuals’, Tom Corley found it was the mindset and habits that kept wealthy individuals on track to financial independence.

Everyone starts at a different place on their journey to financial independence, but the goal, the lessons, the habits and the milestones along the way are the same.

The Millionaire Mindset Money System, a simple holistic financial education framework teaches children the 10 Millionaire Mindset Money Habits for financial success and financial independence.

In this article, we’ll have a quick look at five of The 10 Millionaire Mindset Money Habits:

The Gratitude Habit

The Goal Setting and Tracking Habit

The Multiple Streams of Income Habit

The Investing Habit

The Budgeting Habit

Develop these 5 Millionaire Mindset Money Habits in your child. Start as early as you can.

The Gratitude Habit

According to a study in the journal Psychological Science, feelings of gratitude can help delay gratification, reduce impulse spending, and help us feel more content, thus reducing our need to spend.  Gratitude can therefore be a powerful saving strategy.

Some ideas for practicing gratitude:

Go on a gratitude nature walk and role model being thankful “I am grateful for… because…”

Create gratitude, or ‘things that make me smile’ jars.

Design a gratitude tree poster and fill in the leaves with things to be grateful for.

You can find some fun gratitude activities for younger children in 10 SMART MONEY MOVES 6 MONEY JARS ACTIVITY BOOK

And for teen girls, they will find not only gratitude practices, but other powerful mental strategy activities in WRITE YOUR OWN MONEY STORY EBOOK

The Goal Setting and Tracking Habit

Tom Corley who spent five years studying the habits of 233 wealthy individuals found that writing down goals and having one primary life goal to focus on helps keep us on track towards our long-term goal of achieving financial independence. 

Introduce children to financial goal setting with the WOOP method – Wish, Outcome, Obstacle and Plan. WOOP helps children learn how to create a specific and measurable goal, identify potential obstacles, and create an action plan to achieve their goal and prepare for the potential obstacles.

You will find WOOP goal setting templates and trackers in 10 SMART MONEY MOVES 6 MONEY JARS for younger children and WRITE YOUR OWN MONEY STORY for teen girls. The templates are the same for teen boys, the presentation is just different.

The Multiple Steams of Income Habit

Time is our most important resource and children have tons.  It takes time to set up different income streams and for those streams to provide a meaningful income. 

Introducing children early to the idea of earning money not only from a job but also from other sources will help them achieve financial independence more quickly. 

Help them understand the difference between active income and passive income.  Explain active income as money they earn from a job and passive income as money they earn while they sleep.  Encourage children to earn income in different ways as early as possible so it becomes their norm as they grow.

Some ideas:

Jobs (not chores) at home.  Draw up a contract and show them how to invoice.

Start a business like washing cars, a lemonade stand or bundling firewood and pinecones.

Sell in the secondhand economy.

Inspire them to write an eBook or start a YouTube channel.

If their passion is art, help them create and sell NFT’s.

Teach them the investing habit.

Use the money catcher to help younger children earn money and understand the connection between getting money and working. MONEY MOVES FOR SMART KIDS ACTIVITY BOOK has loads of fun earning activities, the favourite being the money catcher.

The Investing Habit

The Investing Habit teaches children to take care of their future selves. Children are blank slates when it comes to their financial habits and money mindset so there’s a good chance this wealth building habit could be their norm as adults.

If you want a step by step guide on how to teach your child The Investing Habit, go to RAISING FINANCIALLY INDEPENDENT ADULTS EBOOK

The Budgeting Habit

Explain a budget as a plan for their money. It’s a tool to help them make their dreams come true and live the life they want to live. 

Many adults have a negative association with a budget. It can be different for your child.

Use the 6 Money Jars, and Saving and Spending Envelopes from 10 SMART MONEY MOVES 6 MONEY JARS ACTIVITY BOOK and before you know it, your child will be budgeting without them even knowing it.

As your child grows, move them from jars to bank accounts and start giving them money to budget for specific items that are important to them. If they love clothes, let them budget for their clothes, if they love surfing, let them budget for their surfing needs.  It may not be helpful for them to budget for items like electricity or insurance as it has no real meaning for them yet.

Normalise financial independence.  Talk about it as casually as you talk about their dreams of becoming a sports star, social media celebrity, astronaut, YouTuber, fireman, author or singer.

Ask questions like “What will you do when you are financially independent?”, “How will you make a difference in the world when you are financially independent”, “What would you do if you had $1million?” “When you are financially independent, where will you live?”. 

If you are looking for a simple holistic financial education framework to teach your child The Investing Habit, The Budgeting Habit and the other eight Millionaire Mindset Money Habits (regardless of their age), RAISING FINANCIALLY INDEPENDENT ADULTS EBOOK takes you step by step through The Millionaire Mindset Money System process.