I am curious to hear from successful investors who have trained their children to develop an interest in REI. Do you have any tips?
I have played the Cash Flow for Kids board game and Monopoly with my kids. Perhaps they are still too young, but they do not want anything to do with real estate right now. I am sure it has nothing to do with the looooong hours spent in a construction zone with not too much for them to do :-)
We really want to train them while they are young, teach them the benefits of investing so that they don't have to be in the "rat race".
Any tips, suggestions, or good ideas?
Lead by example.
The rest will follow if they like what they see that you are doing.
If they do not like what they see that you are doing, you will not get them interested.
When they are old enough to write a contract, help them do a wholesale flip. They will learn how to make money on demand without all the other hassles associated with real estate.
Keep bringing them to your properties and engage them in what's going on. Both of my parents were agents and did that with my brother and I, he now has his liscense, and well, I'm posting here. They'll get the bug eventually!
Pay them to help clean up or do chores around the properties. Have them put 50% into a roth and let them spend the rest. Invest the roth $ in stocks they know and show them how it's growing.
You have to show them "what's in it for me"
Great ideas posted already. When my kids know they can earn some cash, they take an immediate interest in whatever the endeavor may be!
Some kids are more financially minded at a young age. I think they are easy to engage. Others may have zero interest at their particular stage in life and they will take more time.
I was driving home the other night talking to my 12 year old about a property I had just sold. I handed him a $12,000 proceeds check and he became quite intersted and immeditely had more questions.
I drag my kids to our projects every weekend. They hate it. I've considering giving them some sort of percentage of the profits (although very small) or something to give them an incentive. My son who is 8 loves doing stuff, so maybe he can do a little work to make him feel that he is part of it as well. we replaced our counter tops and he was so excited to have a "demo day" like they do on HGTV.
@Beth L. This is a great thread! My wife and I plan to have a child soon and the sooner you introduce your child to the magic of real estate investing the better. I found out about real estate investing and passive income on my own terms. The advantage to grow up in real estate investing would have been huge! Thanks for creating this thread!
There was a story on the BP podcast about an investor who made an offer to their 16 year old son. The offer stated that if the son saved up for a down payment on a house, the parent would fund the rest of the purchase, and that house would be held and managed by the son (with the help of parents, of course). I love this idea, as it seems a great way to teach the benefits and risks of investing.
In the meantime, I believe that force-feeding much of anything to our kids will not yield much fruit. The best we can do is make ourselves available, and engage our kids' minds in our endeavors as much as possible.
Instead of trying to make your kids into RE investors like yourselves, teach them the concepts of pursuing passions, setting goals, and making deliberate choices to attain those goals. Your success as an investor should frame your kids' understanding of success in whatever fields they ultimately choose.
I wish you all the best with your ventures, and with inspiring your children to pursue their passions. Cheers!
A hammer , a paint brush and a tool belt would go a long way at an early age .Chores and having to earn money is also a great tool but as @Joshua Feit
says you can't force them or instill great values
Thanks everyone for your input!!!
@Ryan Billingsley I started into real estate in my early 30's and my only regret is that I didn't do it sooner. I wish I had been taught earlier in life about the value of REI (of course they don't teach these things in school), so I really want my children to have that advantage.
I had a teacher in high school that dedicated one day per semester to teaching about investing (money, not RE). I had him for 3 years, so had a handful of lessons. They weren't fun and I didn't much care, but now I realize that what he did allowed me to see the bigger picture. Teach them weather they like it or not, but don't hound them.
I find that my daughter LOVES to be around when I'm doing stuff, but only when she thinks she is necessary. I spent a couple of summers building a campervan in Europe and she would sit on a stool, ask questions, and get tools for me as long as she thought she was "part" of it. She is now the same with my investing. Find a way to give them responsibility (different than chores) that ensures they know they have a part. They'll soak everything else up like a sponge just by proximity. My 6-yr old is currently learning about rents and ownership vs. tenancy plus helping (more like slowing) with repairs.
If you come up with a good idea, let me know! I'm always looking for ways to help shape my child to become amazing at whatever she does.
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