Blog | Entrepreneurship

The Importance of Introducing the Concept of Entrepreneurship to Kids

And Why I Teach It to My Own Kids

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Schools teach kids that their only choice in life is to be a good employee. But that’s not the only path that’s available to them.

I like to teach and educate kids in all four areas of the CashFlow® Quadrant – employee, self-employed, business owner and investor.

It's about giving them choices. It’s not fair to assume that kids want to be employees. What if their personalities are not suited for the employee path? Are we to let them fail? This is a huge topic that Robert Kiyosaki likes to talk about; how the traditional school systems are failing our kids.

It’s a huge problem that I am passionate about. It’s why I continue to teach my kids the bigger picture. I have educated my kids on the options that they have via the CashFlow® Quadrant, and I’m letting them decide what they want for their future. They don’t have to be employees if they don’t want to be. But if they choose to be, that’s great! As long as they chose that path, understanding completely the financially implications of their choice. I’m all about kids being financially educated and knowing that their financial well-being is up to them. I want them to understand money and investing because it’s important for their future.

I’ll give you an example. My daughter Haley wants to be an FBI Agent. She understands that if she chooses that career, she will be an employee. So, we’ve talked about other ways she can make passive income on the side. That way he has the best of both worlds. She can have a job that she loves and is passionate about but won’t be dependent on that income for her financial well-being.

Fostering Creativity and Entrepreneurship

From a young age, both my children have had an eye for business.

My son, Jake, is 12 years old and has his own vending machine business with his business partner, Taytum. The company is called 911 Vending. They are responsible for inventory, maintenance and controls. They take a small percentage each week as an income, and the rest goes towards expenses, loan repayment, and in an account for future investments.

Being an entrepreneur myself, it was fun watching them when it all started. They had to figure out how much they were going to give themselves each week in income and calculate all their expenses themselves. Thinking that they were teenage boys who would be money hungry, I was surprised when they came back to me with conservative amounts.

We didn’t help them out very much at the beginning, we wanted it to be a true learning experience. But as some time went by, we started guiding them and giving them advice.

Haley had her own business at one time. It was an MLM jewelry business and she enjoyed it for a while. But with her being a teen and having a boyfriend (yikes!), she's in a different space right now. But we continue to talk to her about her about business and continue to give her that choice. For example, she is driving but does not own a car. I propositioned her with an option. She can come up with the down payment for the car and then take out a loan from her trust (that would have to be paid back) for the rest. But when she decides she wants a car bad enough, she will figure it out. We are not just handing her one. However, her and her boyfriend have started a car detailing business. They’ve hired “employees” right away and give them a % of every job.

I tell you all of this because kids usually learn by doing. It’s one of the most powerful learning tools there is, real experience.

Encourage your kids to see the big picture. It’s never too early or too late to start learning. And it’s never too late or too early to have them start planning for their financial well-being. Happy Holidays!

Original publish date: January 07, 2019

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