Years ago, when children worked alongside their parents on a farm or at the family business as soon as they acquired the necessary agility and skills to be helpful, raising hardworking kids came naturally.

Today, especially for families whose children don't need to work for additional income, it's important to start teaching money lessons and setting expectations as soon as possible in order to successfully instill the values of hard work and financial responsibility.

A report by RBC estimates that within a generation nearly US$4 Trillion will be passed down to inheritors in Canada, United Kingdom and United States.

"Hard work is a great teacher," says Joline Godfrey, author of "Raising Financially Fit Kids" and CEO of The Unexpected Table, a gathering place for thriving families to explore important issues. "Kids fully exempted from it will find themselves unprepared for much that life throws at them."

Developing hardworking kids, says Dean Moore, managing director & head of Wealth Planning at RBC Wealth Management in the UK, must be part of the culture of your family.

"There are many examples of kids of wealthy individuals who've not had the right understanding of money and how to make it – yet alone how to keep it. Often because the early experiences of responsibility haven't been had," he says.

Early childhood lessons

Parents sometimes think they don't need to worry about teaching financial responsibility and instilling a work ethic in kids when they're young. But if they don't, it can be challenging to change a 12-year-old's behavior and even more difficult to change a 17-year-old's habits and expectations.

"Encouraging a hunger to achieve as early as possible is how a work ethic is nurtured," Godfrey says.

For example, Godfrey recommends giving kids challenging things to do from their earliest age, such as working with them to assemble a tall tower of blocks. The concept is to intentionally nurture delayed gratification and to not "give in" just to quiet their complaining or frustration.

"The idea is to help children stretch their ability to persist, to try again, to meet the goal," says Godfrey. "By the time they're seven or eight, you can take them on hikes that seem a little too long, or ask them to finish tasks that are a little too hard, such as making their bed or vacuuming the playroom. This is how you prepare them for harder tasks when they're 12, 13 or 14. I wish there was a better way to prepare kids to be hard workers, but the evidence is painfully clear: doing the hard things, from an early age and repeatedly, is how the qualities of persistence and endurance are developed."

While challenging kids to achieve goals is an important element of instilling a work ethic, it's also important for kids to understand the finite resources of money. For example, if your child wants an Xbox, discuss the price, how much the child has saved and what the child could do to earn money to pay for it, such as mowing the lawn six times.

"It's important that kids understand the purpose of earning money with a mindset that they have a plan for spending, saving and giving," says Angie O'Leary, head of Wealth Planning at RBC Wealth Management-U.S. "Parents can help by matching their kids saving and giving plans – amplifying the benefit."

Getting a job instead of a handout

For families that run a business, it can be a natural progression to have the kids participate in various ways, depending on their age.

"Family business should be exactly that, managed by the family – or at least have good oversight," says Moore. "After all, what better exercise on business than to have your kids run it? You can't learn that in school."

For older kids, paid work should be emphasised for life experience, says Godfrey.

"Kids should have at least two or three really boring jobs, so they learn to take pride in their work and to stick with it," says Godfrey. "But, too often, parents tell their kids to get a job and then tell them to take time off to go to Paris with the family in July, or a family gathering in August. That sends a mixed message from the parents and implies that work isn't that important."

Some families believe that academic achievement is more important than a job when it comes to future success. Godfrey believes that hard work, including boring and repetitive work, is essential to learn life skills such as resilience and endurance.

"Being able to stay with the puzzle of developing a code, writing an article, creating an experience or imaging a solution to anything requires focus, endurance and persistence – these are the fruits of hard work," says Godfrey. "Developing resilience, whether for dealing with a loss, a personal disappointment or a change of any significance and becoming resourceful and learning how to solve problems when parents are not easily available to bail them out, is part of the process of maturation."

Working hard should also translate into helping others, adds O'Leary, who has taken her children on several mission trips to Haiti.

"Family mission trips are a great way to spend quality time with your kids while modeling hard work with a more meaningful purpose," she says.

Earning their future

In addition to life skills gleaned from a job and schoolwork, children can be taught to understand the connection between endurance and resilience and financial success.

While it's tempting for parents of means to hand their kids great educational and life experience opportunities on a silver platter, Moore suggests that kids also need to be grounded with realistic money management lessons.

"However small or large your level of wealth, the path your kids take should be instilled with one guiding principle – they own their own success and future," says Moore. "If you can strike the balance of providing your kids with what they need financially - to enable their success without losing their purpose - you've done your very best as a parent."

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