Transitioning from W2 to Entrepreneur
November 14, 2024
Big Bets On Multifamily Real Estate
November 26, 2024Financial Lessons for Kids
Five Practical Teaching Methods
Imagine a world where your 10-year-old child understands savings and tax planning. It looks like a scene from a Hollywood movie, but it has turned into a reality thanks to the easily accessible information provided online and those on digital assets (websites, social media platforms, and mobile applications).
I take my daughter to each of my local properties on at least a monthly basis. We walk through how we purchased it, what we are making as the owners, and equally as importantly the service we are providing to our residents and contractors. This is one of the biggest reasons I invest in real estate, so I can take my family, my investors and their families, and see that value that we are adding to neighborhoods and the lives of the residents.
A report of a 12-year-old named Johnny investing $1,000 in a low-cost index fund and earning $2,400 in profit in just two years reflects how children can make wise investment decisions at a young age.
Or another story where two brothers, ages 11 and 16, purchased and operated the laundry machines for his father’s apartment complex. In 1-year they earned $9,000 on a $2,400 investment. What’d they do next? They began expanding into his father’s network of apartment owners.
Teaching financial literacy helps them make informed decisions about their finances and prepares them for a secure future. Are you looking for ways to teach financial lessons to your children? Well, you are at the right place because we will be looking at five practical teaching methods.
Monetary Games - The Fun Way To Learn
This is a fun and interactive way for adults to impart some financial knowledge to children. The little ones learn best when they’re having fun so incorporating budgeting into a game is possible with these engaging activities.
Adults can create a mini-store at home using items such as toys, snacks, or even old clothes. They can give money to children to spend and budget their “cash” to buy what they want. You can make it more educational by setting the prices of the items and asking the little ones to calculate their spending.
You can use mobile applications which simulate financial situations. They are documented to help children manage their money through virtual transactions and savings goals.
Board games like Monopoly® are known to be effective in teaching children about financial management, savings, and the understanding of the consequences of their decisions. You can discuss strategies used during the game and how they can be helpful in real life.
Turn Chores into Cash Rewards
You can leverage the power of allowance to teach the concept of earning, saving, and spending among your children. For example, you can create a system where you would reward them for doing their chores.
A parent can create a chart that shows the reward for a certain chore. You can also let the little ones decide what they want to do and how much they want to earn from it. Piggy banks and savings jars are still popular savings techniques among children. They can see their savings grow towards their goal. Moreover, you can also teach them about the difference between needs and wants.
Let's say your child wants to purchase a packet of cookies, parents can use the situation to teach their children a lesson or two about spending decisions. They can get the little one to decide whether it's worth spending their money on or better to save it for purchasing which means more.
Financial Literacy Through Storytelling
You can tell fascinating stories and narrate incidents about financial management, which are captivating and informative for children.
You can use storybooks and stories to teach financial lessons in a way that's both entertaining and informative. There are a variety of children’s books on Finance available that teach financial concepts in a way that’s accessible and engaging for the little ones.
Adults can come up with their own stories or scenarios where characters make financial decisions and get rich. For example, a parent can tell a story about a character who has to save money to buy a dress for a ball but faces challenges along the way. This approach would help your child relate to financial concepts on a personal level.
You can create with interactive stories where you create scenarios where your child has to make financial decisions for the characters in the story. You can help them with their choices and the consequences of their decisions.
This helps them understand the impact of financial decisions in an imaginative way.
Get Them Involved in Family Financial Matters
Adults can take advantage of children mimicking and repeating the behavior of the adults around them to their advantage by involving them in financial decisions.
Individuals can hold family meetings to discuss monetary issues such as allocating money for ordering food from restaurants. You should explain how you plan and allocate money for different needs and wants.
This helps children understand how financial decisions are made and encourages them to ask questions. You can impart financial literacy to your children by showing them the final documents and their purposes.
It can be difficult for younger children to understand, but older children may get to know the payment process, how interests affect their spending, and how to manage their finances effectively. Adults can open savings or investment accounts for their children.
Put Them In Real-World Scenarios
Using real-world experience is the most effective way for adults to teach final literature to children. Parents can integrate money management into their child’s everyday life.
Parents can take their children to grocery shopping. They can give a small budget to little ones and teach them how to compare prices, avail discounts, and make purchase decisions depending on the amount they have. This scenario would help manage finances in the real world.
Adults can teach the concept of saving money to make significant purchases later. This concept helps children come up with savings plans and goals. This teaches them about saving along with patience and delayed gratification.
Parents can teach children about entrepreneurship by encouraging them to start a small business. They would get experience teaching them about earning, managing money, and customer service. It's a proactive and entertaining way for them to see how their financial efforts are paying off.
What Lies Ahead?
Keep in mind that passive income isn’t a get-rich-quick scheme. Don’t treat it like a quick fix for all your financial worries. Building a stable passive income source takes time, patience, hard work, and – most importantly –financial planning. But the reward is worth the effort!
There’s no one-size-fits-everyone approach to family bliss; what works for someone else may not work for you. You need to experiment and learn from your experience; find your strategy, something that aligns with your unique skills, goals, and interests. With creativity and tenacity, you can create a life that balances financial security with the joy of family.
Who is Gold MF?
Gold Multifamily is a Leading Real Estate Syndication & Investment firm that invests in premium and value-added multifamily properties. We offer expert syndication and lucrative real estate investment opportunities.
Come explore our comprehensive services in real estate syndication and property management, designed to maximize your investment returns.
Schedule A Meeting With Us
Schedule a call with Gold MF to explore how we can help you achieve your passive income goals through investing in cash-flowing multifamily real estate.
