I am participating in a Yakezie, the world’s largest network of personal finance writers, blog swap today. The blog swap is a fun way to introduce our readers to other bloggers in the world of personal finance. Each blogger is assigned the same topic. I will link to the other bloggers efforts next week so you can get others’ take on this interesting subject. (Dr Dean)
My post on this subject is at Odd Cents-please check it out too!
How to Rear a Millionaire – Developing Your Child’s Entrepreneurial Aptitude
by Dannielle from Odd Cents
I can’t resist, and I know you can’t! The vision of a young child, peaking over the table with a precious- how can you not spend money here-smile, operating their own lemonade stand is probably my earliest memory of entrepreneurship.
A Lemonade Stand, a budding millionaire at work?
I remember watching television when I was young and seeing kids with their own lemonade stands and being amazed at how cool it was.
That was for me! To this day I grin ear to ear when I run across a stand with a hand painted sign or read one of those Peanut cartoons with Lucy giving advice at her “stand!”
The Lemonade Stand: Model of Entrepreneurship!
The lemonade stand is a great model which contains many themes that are integral to entrepreneurship.
It can be a great tool for explaining the basics:
- of income,
- expenses,
- overhead
- the ins and outs of a business.
There are also those age old lessons of working hard and giving of your best.
Nobody likes bad-tasting lemonade!
What’s even better is the learning experience for all involved: parents, grandparents, your kids, neighbor kids-the more the merrier!
Starting Your Own Business:
I’ve heard several stories of young people who have started their own businesses with the guidance of their parents. One little girl makes friendship bracelets and sells them for a dollar. She uses some of the money earned from her sales to buy gifts for her friends.
Her mother takes the remainder and sets aside a portion of it to buy the materials to make the bracelets and puts another portion in her daughter’s piggy bank.
I know of another youngster who sold baked peanuts to make money to buy a bicycle. It all started when his mother brought home a pound of roasted peanuts. He took that big bag of peanuts and made fifteen small bags-he soon sold out.
The next day he asked his mother to double the peanut order, using the proceeds from the previous day’s sale. The venture soon resulted in a new bike, and money in the bank!
Getting kids involved:
The best way to teach a child about entrepreneurship is to get them involved and excited. Giving them tasks that they can accomplish gives kids a sense of financial responsibility.
There are many lessons to be learned:
- How to make money by earning sales
- Developing goals
- Importance of reinvestment in the business
- Savings for long term
- Customer service
- Importance of hard work and dedication
In those two scenarios above the parents played a key role in initiating and encouraging a child’s entrepreneurial ability. But not taking away the fun!
Encouragement is not necessarily limited to finances. Teaching business ethics is a must, even more important than the dollars and cents.
A child’s interest in entrepreneurship usually starts with awe and wonder when they see other kids having fun, and earning their own money. Be prepared to answer their simple questions. Open that door we call entrepreneurship.
You never know what kind of business your kids, with creativity and ingenuity, might dream up in that grungy garage or yours.
Just show them the way!
Reader questions:
What have you done to encourage, teach, expedite entrepreneurial behavior in your kids? Any recommendations or precautions?
Thanks,
Dannielle
Dannielle writes at the personal finance blog: Odd Cent, A Penny Wise or Pound Foolish. Take a minute and make her feel welcome at The Millionaire Nurse Blog!
Remember my post on the subject of developing entrepreneurial skills in your kids is at Odd Cents today, go check it out!
{Photo credit: pinkpolka c.c.}
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Tags: money skills for children, teaching entrepreneural skills to kids, teaching kids money management skills, teaching money skills to your kids
You are so right. In order to get my son involved I have to get him excited. I am animated enough so that should do it but these lessons are great to reinforce regularly.
Most children learn by observing adults. Take your children to work or have them around other entrepreneurs. Have them do informationl interviews of entrepreneurs. Have them get jobs at an early age. Involve them in investments and your day-to-day finances.
Yep, KC, kids are definitely parrots. Remember that before you use foul language around them, ’cause you will hear that echo for a long time!
I like the idea of kids buying in bulk and selling in small lots. My younger brother took this idea to the extreme one year by selling pages out of a girlie magazine to his schoolmates, page by page. Yep, my parents were called in to see the principal on that one!
101, that is hilarious! He should get on Donald Trump Apprentice with that on his resume!
[...] Dannielle of Odd Cents at The Millionaire Nurse [...]
[...] And last, but not least, Danielle from Odd Cents posts at The Millionaire Nurse, The Millionaire Mind and Your Child! [...]
Love the story about the kid selling peanuts in smaller portions. Did the kid come up with that idea, or did the parents encourage it? Linking back to this post in my millionaire roundup later today.