There are a couple of key concepts that are worth communicating to our children.
- The definition of wealth. This is not about the house you live in, the car you drive or what luxury items you have. The simple definition offered in the book is how long you can sustain your current life style when you stop working.
- The differences between buying assets and buying liabilities. Assets are things that add cash to your networth, such as stock, real estate and investment. Liabilities are things that subtract cash from your networth, such as mortgage, credit card debt and car loan.
The concepts in this book can be understood by most children and will help them make informed decisions on money early on in their lives.