These steps also provide the opportunity to teach your child how to develop goals – saving for next month’s museum visit versus saving for a college education or capital to start their own business. After helping them develop some short term and long term goals, you can sit down and help them devise a plan to meet these goals. Between allowance, earning money by helping others, or perhaps a part-time job, they can begin to realize their goals and appreciate the value of work and accomplishment. There is a helpful website that calculates how to reach certain goals at:
Reach Your Goals by Saving!
http://www.asec.org/ycalcs.htm
We have an older game, called “Stock Market” that we play together as a family. There are many types of games like this available now, teaching the idea of money, finance, risk and wise decisions, all in a game format that the whole family can play together. The two newest on the market are based on Robert Kiyosaki’s Rich Dad Poor Dad, and they are called Cash Flow for Kids and Cash Flow 101. They provide an excellent way to learn the very important basics of sound money management and learn key principles of business. His books and games also encourage education for entrepreneurship, which I also strongly encourage!
When I began writing unit studies for publication, the children were very interested in the publishing process and how the business worked. As they grew older, they would occasionally accompany me to speaking engagements. There, they would help with setting up the tables, selling books, and learning to have fun while working.
Growing up in a homeschooling household also gave our children the opportunity to see just what treasures books can be! They joined in on shopping for special books at garage sales and library sales, and what an education they received from these outings. One of our children developed her own used book business, offering the books for sale on her self-made web page! She experienced success at this business, and learned how to create web pages as part of the process. She then went on to build her own small business developing web pages, and still has this income resource when she finds free time while attending veterinary college.
We are firmly committed to helping each child discover and utilize their unique God-given gifts and talents, and what a blessing this has been! One of our children developed a deep appreciation of the outdoors and plants. While he was still a child, he began reading and learning about plants, wildlife, and life in the country. When we moved to the farm, he finally got to pursue his dream – planting trees for a business of his own. When I walk into his room these days, he is surrounded by all kinds of college-level books on woody ornamental trees, plant propagation, business basics, and botany books. As a senior in high school, his whole life is before him, and he has already moved light-years ahead in preparation for his future.
His business is now on the Internet (www.sheltering-trees.com), and he has been immersed in learning about business law, practices, and financial management. He enjoys reading books by Robert Kiyosaki (Rich Dad, Poor Dad), the Uncle Eric series of books by Richard Maybury, and other books on personal financial management.
Where do you begin with your own family? First, I would recommend that you locate some of the Uncle Eric books, which are written for grades 7 – 12. These books share so much basic knowledge about money, business and economics in a very un-intimidating manner. I’m not sure who has learned more from these books at our house – the parents or the children!
A list of our favorite books on business and finances for the whole family can be found at:
Books to Teach Kids About Money
Next, take some time to read the book Rich Dad, Poor Dad, by Robert Kiyosaki. We found the audio book version of this, also – and listen to it while running errands. Then everyone gets to chime in with their thoughts or ideas. I’ve learned so much from this personally, and I know that the young people around here can stand on their own two feet with most financial decisions that they might face. They have learned about the value of money, the importance of using it wisely, the concept of interest and time-value of money, and so much more.
Whether collecting baseball cards or books, the ideas of business and the wise use of money go hand in hand. The learning adventure, once again, becomes a fun-filled family adventure. With the advent of eBay, the market place for collections and collectibles has made the world of business available to families around the world. EBay offers a free online tutorial in how to use the EBay marketplace. Take the tutorial as a family, and then begin to visit garage sales and library sales, or whatever it is that interests your family or children. This can provide an educational experience as well as a profitable one for the clan. Start with small items, so that the lessons learned are basic, and to make sure that mistakes made in the beginning are small ones.
What do YOU think about money?
How comfortable are you with your knowledge of business, finance, and economics?
Consider forming a family finance education plan for the next few years, taking the children up through high school. Here are a few helpful links:
Teaching Kids About Money
http://www.cccsatl.org/teaching-kids-money.asp
Teaching Kids Economics – Free Federal Reserve Bank Materials Online
http://www.frbsf.org/education/curriculum/
Rich Dad Poor Dad
http://www.richdad.com
Cash Flow 101 and Cash Flow for Kids (click on “Games” on the left hand side)
https://secure.richdad.com/Category.asp
I hope these thoughts and links help you with your own entrepreneur-wannabe kids. The world is waiting for a new generation of ethical, moral and bright entrepreneurs!
Until next time,
Amanda
We played the Stock Market game alot when I was younger. My dad also was a stock broker and played a game with us where he gave us $1000 to invest over a year. We had to go to him to make trades and buy and sell our stocks. The stock pages of the paper were the most in demand part of the paper. At the end of the year who ever had the most money won a prize. Usually dinner out or something like that. It was alot of fun and I learned alot.
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