“I made my first investment at age 11. I was wasting my life up until then.”
– Warren Buffet
When designing the Dragon Bank our focus was to create a product that assists parents in teaching their children three simple but important financial habits that a child as young as five could grasp. By following the “Way of the Dragon”, your child will start on the path toward financial health early. Using the steps and tips below, your child will learn how to spend carefully, understand the basics of saving and also experience the joy of giving.
Even as young children we earn money, whether through the tooth fairy, birthdays, holidays or allowances. That is why it is crucial to start your children on this lifelong practice while they’re young to cement these valuable habits. There are three key ways that the Dragon Bank allocates your child’s earnings:
1. Spend- You and your child determine what part of their earnings go to spending on all the cool stuff they want.
2. Save- Together you can also determine how much of their earnings go to long-term savings that can eventually be used as investments that build wealth.
3. Give- Provide the experience of giving to your children by allowing them to send some of their income to a charity or cause of their choice.
Many people believe that they aren’t able to save or give as much money as they’d like because they don’t earn enough… in the majority of cases this is simply not true. The #1 reason why someone doesn’t get around to saving or giving money is because they haven’t formed the habits of doing so.
At enRICHed Academy (creators of Dragon Bank), we’ll see one family, with a household income of $50,000 save $10,000 per year while another family with combined annual income of $500,000 not get around to saving or giving anything and actually fall further in debt. Instead of earning interest on investments, they pay interest on purchases. Why is that?
The reason; because creating the habit of saving a portion of income hasn’t been developed, practiced and ingrained. This habit is the foundation of Dragon Bank.
