Don't short-change your kids by giving them too much.

The more dollars adult children receive, the fewer dollars they accumulate, while those who are given fewer dollars accumulate more. This is a statistically proven relationship. Yet many parents still think that their wealth can automatically transform their children into economically productive adults.

They are wrong.

Discipline and initiative can't be purchased like cars or clothing off a rack.

A case in point: A wealthy couple was determined to give their daughter, Ms. BPF, every advantage. So when she expressed some interest in starting a business, they put up all the money for her.

She put up nothing of her own. She never even applied for a loan. Her parents give her $60,000 every year. Her business is not really a success. It is heavily subsidized.

Actually, she has been short-changed by her parents. She may never knowif she could nake it on her own.

The most successful business owners are the ones who put much of their own resources behind their ventures. Many succeed because they have to succeed. It's their money, their product, their reputation. They have no safety net.

Ms. BPF told us she had 12 major fears, including a significant reduction in her standard of living, her business failing and not being wealthy enough to retire in comfort.

How is it possible that a person who is almost completely insulated from financial risk has 4 times more fears than the typical affluent business owner?

Because affluent business owners have overcomed most of their fears.

They have innoculated themselves from many fears by becoming completely self-sufficient.

People who are more confident and more able to deal with adversity are those brought up by parents who rewarded independent thought and behavior.

Excerpted from Dr. Thomas Stanley and Dr. William Danko's bestseller, "The Millionaire Next Door".