Just wanted to
Share what we are doing with our kids. We have 4 little chitlens ( ages 5,8,9,13) and we are always trying to teach them about money.
Monopoly and cashflow for kids are the games we play around here.
So when we flipped a house, the kids work and when we sell they get paid $100 for their sweat. But I started thinking, " all we are doing is training them to think like and employee. Work hard and get paid." They can learn that in school ( study hard, get good grades,so you can get a good job, make money) BUT we want to teach them what the schools will never teach them, how to think like an investor and a business owner and make a return. My 9 year old daughter is always asking me how she can make money. I finally told her to start a business. She said " doing what?" I said, your good at cleaning, start a cleaning business" So she did. She picked up a job organizing and cleaning my wife's walk-in closet. She hired her 2 brothers to do the work and would still make a profit. The 8 year old brother quit and the 5 year old brother went on strike! (Dang kid unions) she complained to me and I replied "welcome To my world!!"
Now for the transition
My kids are great savers. So I had an idea to motivate them to work, save and invest.
I called a family meeting and the wife and I explained to them that they were no longer just labor workers on our flips. ( not that we work them like slaves or anything) but they were now going to be partners in the family business. So from now on, whatever they want to invest towards the purchase price of a home will give them a percent of the profit
Example : my 9 year old has $500 saved up from working, good grades, birthdays etc. in her saving account.
Investing $500 on a 81k flip gives her a .006% interest In the profit. When we sell for 160k (50k profit) she will get her $500 back plus $300 in profit. Now she has $800 for the next house!
And she didn't lift a finger. Now this has motivated the kids to help because they want to maximize the houses profit. And do more work around the house and for grandma etc so they have more money to invest. Nobody asks for video games anymore. That takes away from their investing stash! They are thinking like investors and not just employees getting a check for helping on the house. And we make flipping a family event, not just something mom and dad do where they spend all their time at lowes!!!
This is what we are doing and I know their friends aren't investing at 13 years old in rehab jobs. But I believe as investing parents we have an obligation to our kids to teach them what the schools are giving them. Financial education. I want my kids to see money and the world differently that I did growing up.
Please share your thoughts and ideas!!!
