When and how to do it right
It might be a mistake to think that motivating your kids with money will give them a “shark mentality.”
Becoming truly successful requires more than just money.
Many parents—especially those in finance or business—try to motivate their kids with the same incentives that push them to go the extra mile at work.
Why would an adult stay late at the office? Why pursue a graduate degree? Why work weekends on a side hustle? Beyond passion, it’s often because there's an economic reward, which translates to more opportunities, well-being, or indulgences.
That’s valid and good. But is it appropriate to apply the same logic to children?
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The Dilemma Isn’t About Money
I prefer not to give a definitive “yes” or “no” on using money as an incentive for kids, instead think about when and how it might be appropriate.
The real focus of this dilemma should be on motivation, not money.
Motivation is what drives us; it’s the engine of our actions. We want our motivations to be powerful and long-lasting.
Just like in a car, the engine's performance plays a crucial role in determining how fast it can go.
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Motivation is the key
A strong motivation helps us overcome significant challenges that few can achieve or take decisive action without reducing our effort.
At the same time, we need a motivation that is enduring enough to keep us going until we see results. Otherwise, no matter how bold our decisions are, they won’t yield lasting outcomes.
The more brief, changing and temporary the motivation, the less enduring it is.
Conversely, the deeper and less material the motivation, the longer it takes to convince us to act, but it lasts much longer.
Money is a type of passing and shallow motivation.
There will come a point where more money won’t be enough to drive us to take action.
There’s a why…
When and how is it appropriate to use money as motivation for your children?
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