# Most rich people don't tell their kids how much they make (US survey)



## janus10 (Nov 7, 2013)

http://finance.yahoo.com/news/rich-people-rarely-tell-kids-114100709.html

I would only tell my wife and even she forgets how much I make (plus I am in sales and more than 2/3 of what I make is variable). Just checked with her... Yep, she was clueless and thought I made about 60% of what I did. Which, after taxes, is about right!

I do remember my first job once I got past the probationary period making $500 a week. I was pretty excited and that's probably the last time I told anyone what I made. In fact, the more I made the more guarded I was about it. And I've never been flashy -my first car was a Honda sedan in the late 80's. That was also the last time I bought new - ever since, it's been a used car. 

Maybe that's why my wife doesn't know.


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## dogcom (May 23, 2009)

It makes sense to me because children will run with anything that will make life easier.

Yes you can tell children how much you make but only after they understand the boring story and details of how hard it was to come by.


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## MRT (Apr 8, 2013)

Reminds me of a childhood memory of William Bernstein that he has included in a couple of his books, recounting a time when he asked his father (who was a lawyer) if they were rich:

"Your mother and I are comfortably well to do. You don't have a dime".


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## Daniel A. (Mar 20, 2011)

My kids always knew I made a lot of money but they never had a dollar figure, it wasn't something they could understand or put in perspective. 
Their friends were in the same boat all well off with the only real difference being that I had far more free time to spend with the kids and their friends taking them to places/activities.

Now that I'm retired I don't mind sharing my pension income information with them.


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## sags (May 15, 2010)

Regular folks tell their kids what they earn, because they have to say no a lot more to the kids than rich people do.


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## janus10 (Nov 7, 2013)

MRT said:


> "Your mother and I are comfortably well to do. You don't have a dime".


Lol! I like the cut of his jib.


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## janus10 (Nov 7, 2013)

Daniel A. said:


> Now that I'm retired I don't mind sharing my pension income information with them.


Far in the future I may not share our retirement income stream particulars, but I would want to assure our kids that we won't be a financial burden on them. That is peace of mind they will appreciate as they all might have young families of their own by then.


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## AvidSaver (Jun 24, 2015)

Kevin O'Leary is very much like this. Makes his kids fly coach whilst he flies first class. When asked "Dad, how come you fly first class while we fly coach", his reply was "Because you don't have any money". I thought it was hilarious hearing his recantation of the event.


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## sags (May 15, 2010)

O'Leary should be careful what he wishes for. Kids with no money find ways to get money that sometimes aren't legal.

There was a family near us, where the parents didn't believe in giving their kids any money........hoping they would learn to get their own.

They did..........breaking into cars and selling drugs.

There is always that fine balance that parents have to walk.........between giving the kids too much or not enough.


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## sags (May 15, 2010)

janus10 said:


> Far in the future I may not share our retirement income stream particulars, but I would want to assure our kids that we won't be a financial burden on them. That is peace of mind they will appreciate as they all might have young families of their own by then.


Today I think it is the other way around.

The parents are subsidizing their adult kids.


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## MrMatt (Dec 21, 2011)

sags said:


> Regular folks tell their kids what they earn, because they have to say no a lot more to the kids than rich people do.


Most people don't tell their kids what they earn.
Family financials tend to be a big secret in most cases.


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## fraser (May 15, 2010)

We never told our children what our income was. Still have not.


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## hystat (Jun 18, 2010)

my salary is on the googles


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## peterk (May 16, 2010)

I got the opposite problem. My parents always asking me how much money I make, as I make more than them. Eventually I caved and gave them a number, but I lowballed it. "Just over a hundred thousand", I said.

First thing my mom replied was "does your sister know that you make that much? She'll be jealous" (my sister makes decent money).

Uhg.


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## kcowan (Jul 1, 2010)

I knew how much my Dad made. I was amazed at what he and Mom achieved with so little. I was applying for a means-tested scholarship. He did not want to apply for welfare. I said we will just tell the truth and let them decide. I got the scholarship.

I never told my kids how much I made but I did teach them to be responsible with their own money. Both kids worked in the summer and saved towards their university tuition. One worked part time during the year as well. Neither were allowed to have cars. But we never let them accumulate any debt while at school. And their grandpa gave the $5000 towards their first car when they graduated.

It seems to have worked. Their only debt is a mortgage.


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## londoncalling (Sep 17, 2011)

giving your children financial literacy, work ethic and a sense of responsibility is always > giving them a handout.
I realize I may have gone too far when watching the powerpoint at my sons kindergarten grad this past week. There was a montage of pictures of children holding up a sign with their response to the following question:
"What do you want to do when you grow up?" 

Most kids chose policeman, vet, teacher etc. My son's response was make money. :biggrin: Perhaps we have impressed the responsibility of earning his way in life too greatly. Or perhaps he is in reality Kevin O'Leary's child. :stupid:

Cheers


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## Rusty O'Toole (Feb 1, 2012)

If you know exactly how much you are worth you aren't really rich.


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## birdman (Feb 12, 2013)

Sounds like I am an exception in that I share all my financial information including net worth, investments, asset allocation, future plans, etc with both of my grown children. However, no significant or regular handouts. We are pushing 70 and kids are in their 40's.


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## RCB (Jan 11, 2014)

I was raised in a SAH mom family, where my father worked, and my mother managed the money. I am in the same situation. Income was never a secret in either home, nor were the bills and amounts. Secrecy, I believe, is part of the problem of financial illiteracy in Canada. No handouts to kids in my family, they've had jobs since they were 14 & 15, usually two jobs. The first paid for college by the time she graduated, and will have her "new off the lot" car paid of after 18 months, just in time to move out.


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## jargey3000 (Jan 25, 2011)

"Daddy doesn't MAKE money, honey. He WORKS for it."


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## besmartrich (Jan 11, 2015)

I wouldn't tell kids how much we make although I would love to teach kids how to save and invest wisely.


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## Emjay85 (Nov 9, 2014)

My wife and I just had a baby in February so I am not very experienced at parenting just yet. I am not sure it matters much to me if one day I tell the kids how much we make. One thing they do need to know however is how far (or short) a dollar will go, the value of money and that it takes hard work to earn it so not to take it for granted. Hopefully I figure out a few good ways to do that before its too late!


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## MrMatt (Dec 21, 2011)

Emjay85 said:


> My wife and I just had a baby in February so I am not very experienced at parenting just yet.


Every kid is different, you will have trouble, just do your best and hope for the best.


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## jargey3000 (Jan 25, 2011)

that's good Emjay85... try to lead by example too....actions can often speak as loud as words to your children (this, from a 63 year-old geezer who thinks he reared 2 fairly rational daughters...


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