teach kids about money

Teach Kids About Money

Posted on 25. Apr, 2013 by in ATM Business, Goals and Planning, Home Business, How To's, Kids, kids and money, Passive Income, Real Estate Investing

Teach Kids About Money

When I’m out on the road speaking at events I often will ask the question
“How many of your took passive income 101 in high school or college?”

As you can imagine no one raises their hand but I get a lot of chuckles.

The reality of the world is no one will REALLY teach kids about money
so that’s your job as a parent or sibling or aunt or any important person
in a kids life.

I’m going to give you some fantastic resources at the end of this post but
first let’s get into a couple of basics that you can use to teach kids about
money.

Teach Kids About Money – Active Income

When you teach kids about money you’re going to want to teach them about
active income; which is basically trading your time for dollars. For
example; working a 9 to 5 job and getting paid for that job. Or you can even
teach them about perhaps being a doctor and having their own practice. Again,
that’s active income tho, because if you’re not seeing patience as a doctor
then you’re not making money.

But when you teach kids about money you definitely want to teach them about
active income and if you are in a situation where you receive active income
then you will want to share that with your kid. Including how long you’ve
worked there, how many hours a week your work, how much you get paid per hour
or per week, how long you plan on working there, etc.

Teach Kids About Money – Passive Income

Here’s my favorite part when looking to teach kids about money. Most kids
see their parents working a job (active income.) That’s how they grow up
and that’s all they really see.

But what you want to teach kids about money is that there are other ways to
make money as well. My favorite was is called passive income.

Passive income is an income received on a regular basis with little to no effort
required to maintain it.

Some examples of passive income are a savings account. Simple, easy to understand
example. You deposit money into an account and make interest on it every month.

Another example is rental property. You own a property and rent it to a tenant
who in turn pays you every single month to live there. Obviously, you charge the
tenant more for rent than your mortgage is and that’s your profit.

Keep in mind that most likely that tenant HAS to get up and to work to make
“active income” every single day to pay you that rent payment (which is passive
income for you.)

Another example is owning ATM machines. You own an ATM machine, put cash in it
and charge people a surcharge fee to use the ATM machine and get access to the
cash.

Obviously, you don’t have to be there when someone uses the ATM machine. You just
invest a little bit a time to fill the ATM with cash once a week or month, etc. And
it then provides you with passive income.

It’s very, very important that when you teach kids about money that you do in fact
teach them about passive income. Why? Because they will not learn about it in
school, college or anywhere else for that matter UNLESS they seek out the information
on their own.

And a lot of times, if someone doesn’t know about something, they don’t think to seek
out that information, right? Because they don’t even know the concept exists.

Teach Kids About Money – Life Choices

The main purpose of this post is to teach kids about money in terms of active income
and passive income.

When you do that you are literally planting a major seed in your child’s life. You
are letting them know that they have a choice in life in how they generate money,
invest money and spend the rest of their lives.

Do you know that co-worker who complains all week long and only looks forward to
Friday? Thank God It’s Friday they say……every single week!

Think about this, do you want your child to be in a situation their entire life where
they only look forward to one day a week, ever week. I’m just giving you some information
to help you armed to teach your kids about money so they have better control over their
futures.

You can start young with your children. I have a 12 year old stepson and we’ve been
teaching him about money, business and investing since he was about 8 years old.

Why? They are at the age that they are sponges and they absorb information like crazy.

Sometimes they aren’t interested but guess what? They still hear you and are planting
little seeds in their heads. They will bring it up when they are ready.

So, please teach kids about money and teach them about all aspects of money, business
and investing. Start small, be consistent and welcome all questions and also be patient.

They are listening……they’ll bring it up when they are ready.

Teach Kids About Money – Great Resources

Here are some awesome resources that I highly recommend to you when you are starting to
teach kids about money in your life.

1) Secrets of the Millionaire Mind (Audio version) by T. Harv Eker – this is one of my
all-tie favorite books (and audio cds) ever. I listen to these cd’s personally once
every 3 months or so. Awesome.

I give you the audio version because it may be a little bit easier for a 12 yr. old or
so to digest then reading the book. It’s a good idea for you to listen with them in
little increments when perhaps driving in the car? or before going to bed.

Note: They also have Secrets of the Millionaire Mind flashcards. They are fantastic. I use
them everyday to write a note in Joe’s lunch. They reinforce the information from the book.

2) Rich Dad’s Rich Kid, Smart Kid: Giving Your Kid A Financial Head Start by Robert Kiyosaki – This is basically
a handbook for parents (or other adults) in helping you teach your kids about the importance of money and financial
planning.

3) Rich Dad’s Escape from the Rat Race: How To Become A Rich Kid By Following Rich Dad’s Advice by Robert Kiyosaki – this is a comic book that would be an excellent way to teach kids about money. Kids love comic books, so this is a definitely easy read for them. (Joe read it at least twice!)

4) Rich Dad Poor Dad for Teens: The Secrets About Money – That You Don’t Learn In School! by Robert Kiyosaki – now if you have older kids, teenagers?? then this is an outstanding book that you can use to teach kids about money.

My older stepson Brandon (he’s 21 now) but when he was younger we bought this for him. Whenever I speak to 8th graders or above I try to give out a least a copy of this book to a student and also I try to donate a copy to the school library.

5) Cashflow for Kids – this is an excellent board game that you can play with your kids in order to better teach kids about money, business and investing. This is a board game from Robert Kiyosaki, who’s the author of all the Rich Dad books.

I think this enough awesome information that can help you tremendously with shaping your child’s future by teaching
them about money.

I’ll leave you with one more book and this is the book that started it all for me. But before I give you this book I want
you to know that the book above in example #1 is an excellent one for you to read and listen to! It could change your life.

So, the other book that I’d like to share with you is more for you, perhaps when your child get a bit older they can
read this one or if you were to find it on audio then you can include it for them as it’s a great story about kids, so
they could relate (but it may be a tough one to actually read for them.)

It’s called Rich Dad Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not! – by Robert Kiyosaki. Check it out and then let me know your thoughts. It really is what started a huge change in my life for me.

If you have any other ideas about how to teach kids about money, please list them below.

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