I love the energy my kids give me.  They can run faster than me and longer than I can.  They have an endless energy that shows me how much life and potential they are full of.  Everything is a game for them which reminds me of the limitation of being an adult.  And nothing is impossible, especially when you are three.

This is a story that many of you parents will be able to share your version of, I’m sure.  I am absolutely certain that every child shares this joy with their parents at some stage in their pre-school years.  The question is “Do you hold on to that memory?”

One of the experiences I love with my kids is to stretch their imagination.  When Grace was just three years old I started to get down on my knees and look her in the eyes and use the words “imagine if you could…”  And her reaction was priceless.

She would always respond the same way.  Her eyes would glaze over as she left the physical limitations of her natural body and entered into the “everything is possible” world of the imagination.  She would move her head as if she were watching a movie in her mind, and as the movie finished she would look deep into my eyes with her own eyes now the size of dinner plates.  She would take in a deep breath and say “Yeeeeeeeeeeaaaaaaaaaaaaaaahhhhhhh!” as she imagined it happening.

You see, for her anything was totally possible.

One day we were outside walking beside the river and making up stories about the birds that were flying from tree to tree.  As we paused in our walk I lifted her up so she was level with my eyes and said “Gracie, imagine if you could fly like a bird!”  Her eyes glazed over and I helped give her a four dimensional dream by flying her through the air as we ran across the park.

From that moment she was fascinated with flying and I was often called upon to help her experience the feeling of flying around the yard.  But one day she took it a step further.

I was painting the house that summer and had scaffolding along one side of the house as I worked my way through my goal for the summer.  The kids were allowed to play on the planks as long as Mum or Dad were close by.

One Saturday I was outside working in the garden when all of a sudden I hear Gracie exclaim

“Dad, watch me fly!”

Have you ever heard that as a parent?  Have you experienced that adrenalin rush as you turn your body and send your eyes furiously across the horizon seeking the wannabe bird?  Have you sensed the supernatural strength as you speed in their direction trying to appear calm and in control, all the while burning grass as you move faster than you ever have before?

Fortunately for me I wasn’t out of reach.

As Gracie launched into her first unassisted flight I was close enough to cheer her on.  I called “You’re flying” as she plummeted towards me unaware of the lesson gravity was teaching her.

She landed safely in my arms and turned to me with a beaming smile.  “Dad”, she said out of breath due to her own adrenalin rush.  “I flew.  Did you see me fly?”

At that moment my daughter taught me a very valuable lesson.

How Tightly Do You Hold Their Potential In Your Hand?

When it comes to kids and their dreams they are extremely easy to excite into the world of possibilities, and it is just as easy to push them back down into the world of reality.

You see I had been extremely effective at allowing Gracie to believe in her dreams, so much so that she actually believed she could fly.  While I learned to moderate her dreams in a careful way, (her safety being paramount!), I also understood the power I held in how I encouraged her.

You have the same power of your children, and I mean that in the most positive way possible.

When it comes to your children learning about money I would encourage you to be over the top in allowing them to dream and see how those dreams can be achieved.  I would recommend that you over-compensate them early on with high levels of interest and generous sponsorship of their goals so that they have early success in achieving their financial goals.

Here’s what I mean by that:

a)      When your child is saving for their first goal, why not pay them $2.00 for every dollar they save?  Considering that their goal is going to be less than $20.00 you’re not going to be out of pocket much.  But think of the lesson you will show them about the power of compound interest.  You will probably need to be involved in them earning the money for this goal so it’s important not to over commit yourself!

b)      And later on when the cost of interest gets too high, (or you have eight kids you are bank-rolling), perhaps you could consider how you could sponsor their goals.  We have done this in the past by setting a savings target for the goal and agreeing to fund the final $10.00.  This way your commitment to the goal is capped and you only have to fund your portion when the child reaches their end of the deal.  This is very effective for teenagers.

On the flip side of this key point I want to reinforce how powerful your reactions are when you are not supportive of their goal.  Your “can’t afford it” attitude or lack of support for their goals will speak volumes and have a negative impact on their financial development.

The first principle for you to remember is:

You have the power to build or breakdown your child’s dreams.  Choose to build.

Footnote:  While no-one was harmed in the making of this memory, I do not suggest anyone encourage their child to fly off a building!