Yes I think its true that the kids of rich people don't know how to save money. After all, money comes easily and effortlessly in abundance from parents, sometimes without even the kids asking for it. But poor kids can save, but they often have to pass the 'mental block' to learn the value of investing.
My father was taught about investing from his mother, who when they just migrated to Malaya from Southern China, she was working in the farms and fields as labourers. As you know, Southern Chinese's philosophy is to save, do business and invest. She saved and bought some land and just kept it. In Malaysia, most of the non-residential land are used for plantation - planting oil palms and rubber trees. So the investments became a plantation investment. Later it grew and grew. Our family became upper middle class after that. You can see the vast difference after about 20 years. WHile the families who worked hard but didnt invest, they remained working hard from paycheque to paycheque. Those who invested, or did business, they grew.
My father always tells me, among the immigrants, the pattern is clear- those who did big business and invested climb up financially(after 10, 20 years they are living in mansions and driving expensive cars), while those who remained in a job without investing, or set up a stall selling noodles and never expanded the business, although they are very very hardworking, but even after 60 years they are still riding a bicycle and living in the same place. He told me this comparison not to judge them, but to show me the power of a change in mindset about money and investing.
Since my father was young, his parents were still working class, he was hardworking and worked as a teacher and then manager and invested his own money. Bought land and property here and there.
So since young he kept telling me to invest, can't depend on work to be rich. Don;'t even get a professional job, but be a business person or entreprenuer, because engineers and professional work under business minded people. (I got into a professional job anyway
) Anyway, he's my "Rich Dad" who taught me all these things since I was about 8 years old.
BUT, I couldn't save even in my 20s (Im 30 now). I wasn't a big spender, but I didn't have the saving mentality in me. It was because I grew up with no problems about money. Although I wasn't spoilt,(my parents didnt give us huge pocket money, only enough to get by the month). But they paid for education, accommodation etc for us. Only after I graduated from uni and started working, I told my father not to send me money, as I want to rely on my own abilities. Then I started saving and realized what a feat it was(!). Boy it wasn't easy since my starting salary was very low, i think my starting job it was like $3.75 per hour, and then 2nd job $22,000 per year. Only then I knew to earn your own money, save and invest, its not too easy! Bought a few properties here and there myself, then I know how important it is to have the right training/mentality, and the right experience to show you the value of what you need to do.
