Have you ever wondered how to teach kids about money?
One of the cool things about being actively involved in practicing what you preach, is that ideas & inspiration will come at just the right time and in just the right ways.
A cool little story that perfectly illustrates how to teach kids about money
So yesterday my 2 oldest boys were taking their Karate class.
For whatever reason, every parent decided to show up and watch.
That’s cool, except for the fact that it left me and the 2 little guys no place to sit.
So, we piled in the truck and went for a drive.
On our way to town, Kyson, my 5 year old – Says that he wants to go and buy a Happy Meal.
I’m like, “aaaah dude…. Your mom hates it when i get you that stuff”.
“Dad, I’ll pay for it. I’ve got $6.80 cents.”
SIDE NOTE: As a dad who wants his kids to understand how stuff works, I talk to them about business and money quite a bit.
At the end of last year, the 3 oldest boys got together and started their own mouse trapping business.
The $6.80 that Kyson had in his pocket, was money that he actually earned.
How cool is that!? 😉
So back to the story.
I say to Kyson, “Dude, wouldn’t you rather buy an asset with your money?”
“What’s an asset, dad?” He asks.
How in the HECK to you explain to a 5 year old what an ‘asset’ is?
I’m driving and thinking and driving and thinking then..
It hit me.
I say… “Kyson if you could choose to buy a Goose that lays golden eggs OR a happy meal with your $6.80, which would you choose?”
“I’d buy the goose with the golden eggs.”
Why, I ask.
I then listen & smile as my 5 year old explains to me that the goose would lay golden eggs, that you could then chop up and sell for money.
“And what happens after that?” I ask.
“The goose would keep laying golden eggs” he says.
That’s right son.
“But one problem dad” Kyson says.
“There is no such thing as a goose that lays golden eggs.”
“Ahhh but there is son, and – as a matter of fact – your mommy and daddy just so happen to have one.”
His eyes get wide.
“Really?” he asks.
Yup, would you like to see it?
We proceed to drive over to one of our rental properties.
It just so happens to be the single wide trailer house I used to live in when I hit my first six figure income online.
“Do you know what that is?” I ask.
“Yes, that’s the house we used to live in” he says.
Than I have the chance to explain to my 5 year old, that mommy and daddy bought that property and now we have people living in it who rent it from us.
“That Golden egg – right there – pays mommy and daddy about $700 a month – every month” I tell him.
I can see the wheels turning in his head.
Time to drive the lesson home right?
So I ask him hopefully.
Son, when you get older – what are you going to spend your money on?
He looks at me with a smile on his face and says… “I’m going to buy Geese that lay golden eggs.”
Pretty simple way to teach kids about money right?
This financial stuff is really pretty easy when it’s explained in the right way.
One of the things that drives me nutz, is how the system – does such a great job of keeping people confused about money.
They use big long scientific terms to describe very simple things.
And this seems to do a good job of tricking people into thinking that finances are hard to understand.
It really boils down to understanding the difference between an asset and a liability.
How hard are these 2 things to understand?
An asset makes you money.
A liability costs you money.
Jim Rohn always said that kids should have 2 bikes.
One to ride and one to rent.
If kids can understand this stuff, so can we right?
I think people deserve to understand this stuff so they can at least have a choice.
Another one of my favorites from Jim Rohn…
Ignorance is NOT bliss, what you don’t know WILL hurt you.
I’m forever grateful to be on a mission to free 100 people per year by teaching them the simple rules of money – just as I’m learning them and teaching them to my kids.
Does financial freedom PUMP YOU UP like it does me?
The good news is, the opportunity is HUGE to make a BIG dent in the world.
How many kids are growing up in homes where money isn’t ever talked about?
How many kids are growing up on homes where mom and dad fight over lack of money & therefore get implanted with negative emotions regarding it?
How many kids are being raised by the television where they’re taught it’s bad or evil to have money?
There is room for change in the world my friend and that means – opportunity for you and me.
Will you join me in the crusade to increase financial literacy by teaching people simple concepts like…
- The difference between and asset and a liability.
- The POWER of generating Pipeline Money
- The importance of saving & investing for the future?