We all know of a family who has always been wealthy. A family of “old money” as they call it, money that has been passed down from generation to generation. Grandparents who have worked hard for the wealth that their grandchildren’s grandchildren use to fund their education and their businesses.
Did you know that there is a bank that is funded by a single family’s wealth? These banks are what they call Family Banks. A Family Bank is a bank that offers financing only to members of the family. This is how a family’s resources are put to good use. What generally happens is, senior members of the family deposit or fund the bank and this fund is what the younger generation can use for their business, education, ventures, emergencies, and more.
This banking way is basically to ensure that the family’s hard-earned wealth is safe and put into good use. Of course not everyone has the capacity to fund a bank for their savings and other financing but it is still a wise choice to make sure that the family has a savings account, an emergency account, an education account, and a separate account for each of the parents. What the family should do is they should deposit at least 10 to 20% in each of these accounts depending on how they budget their money. What this does is it ensures that whatever need may arise, there is an account that the family can get their money from. This is how a parent can make sure they can send their kids to school and if anyone is suddenly rushed to the hospital, there is an emergency fund available.
Parents also have to make sure that the kids are well versed in financial literacy as to ensure that their kids are ready for the future. This helps the kids manage their money and it helps them to learn responsibility. You can start with teaching them how to save and how to spend their money.
Once they are old enough, you can move on to teaching them how to handle their own bank accounts. Through this, the children have a sense of responsibility and they understand how it works. So that when they eventually grow up and have their own kids, they are secured with their own saving and their own knowledge of how things work.
Banking is not a difficult task. There are a lot of ways to learn nowadays on how to be financially independent and how to use banking to your advantage. So, take advantage of every resource and make sure that you know how to handle your own money. This is an investment that you will never regret because it ensures you a secure future and it assures you that whatever may happen in the future, you have funds where you can draw from and you can sustain yourself until you get back on your feet again.
I am sure that this might seem like a big hurdle but once you get passed it, this is where your children’s future starts to become secure. With what is happening in our world today, making sure that your family is secure with enough funds for any emergency is a big step towards ensuring that your family is safe.
If you are here and you are starting to think that you might need to start your own bank account, not for your family but for yourself, then I am here to tell you that this is a good decision to make because not every single person is out there and thinking about how they can ensure their future. So this step that you are thinking about taking is a step in the right direction. Whatever doubt or fear you are facing is normal and it may be a difficult thing to handle in the beginning but once you get the hang of it, banking and saving becomes easy to you because you start to see that this is not only for you or your future but it is also for your future family’s future.
We will never know if one day, all this hard work leads you to funding your own bank where your grandchildren get finances from to fund whatever it is that they need. I would much rather have worked hard in my lifetime so I could have left something for my family than spend everything and leave my family with nothing.
So, what are you waiting for? Take that online class or talk to that banker or read that banking for dummies book. It is never a waste of your time to invest in your future so take that step forward and build yourself a better future. You will never regret that decision you made today.