Ascending to the top of your game is a lot easier compared to actually staying on top. After years of hard work and amassing considerable wealth, successful people are faced with the daunting task of maintaining that wealth. Once they have acquired it, they want to maintain that wealth even as they plan on an inheritance for their children. But many parents have not equipped their children with skills to generate or maintain wealth which is why we constantly see kids of billionaires in the news fighting for property after they have squandered their late parents’ fortunes. In this post we discuss 7 Ways We Can Teach Children The Importance Of Financial Management.
All parents should teach their children important entrepreneurial skills which can help them in managing businesses. You don’t have to wait till you own a few acres in Karen to graduate to the successful people’s club then start giving business lessons to your kids. You can start now. Here’s how you can teach your kids about business.
- Give them the right education
The business world is rapidly evolving. Gone are the days when only formal education would make you successful. What the upcoming generation needs more than anything is an entrepreneurial mindset. Enrolling your kids to good schools is not enough if they are not taught how to spot opportunities, how to recognize problems and come up with their solutions. Enrol them in schools that allow them to be creative and innovative as these are key tenets of successful businesses. Encourage them to read books that offer business advice. There are some very cool videos out there to show kids how to run a business.
2. Let them learn on the job
Children naturally imitate their parents. Tag them along to your work place. As a successful parent, let your kids see how you respond to the customers, how you make decisions, how you handle rogue clients, your work ethic. Parents’ conduct at the work place when the kids are there will automatically shape their work ethic and habits. Let them appreciate the journey instead of just the financial success you have. Let them see what you go through in your pursuit of success.
It is important to start teaching your children about money when they are young. This is the best time to start talking business with them. When they are young and you tell them about taking risks, learning to invest and about value of business ethics, they will grow with that awareness.
4. Teach them about failure
When you, as a parent, are accustomed to success, it is easy to show your kids only the successful part of your life. While this could be good in inspiring them to follow in your steps, let them know the hurdles you have to overcome to reach your success. The financial constraints you face when starting a business venture. Instead of portraying failure as a bad omen, make them understand that failure is not an end in itself but rather a platform to re-evaluate their way of doing things. Show them what it takes to succeed in business.
5. Teach them financial literacy
Schools do not attach much importance to financial literacy. As a parent, take up the role by teaching your kids how to invest. Provide them with money, open a bank account and give them an idea of how to use that money. Ask them to bank the proceeds after a certain period of time, say three months. Monitor their progress in the businesses or investments they start then teach them the importance of investing, saving, ploughing back profit into the business and budgeting.
6. Effective communication
Being able to express yourself is a vital element in life. Business success is majorly pegged on how effectively communicate to customers, partners, the authorities and other stakeholders. With effective communication, your kids will be able to market their products, be able to pitch their ideas to potential investors, get into business partnerships with like-minded business people. You can help your kids to become effective communicators by leading by example, communicating fluently, enrolling them in public speaking clubs like Toastmasters etc.
Teach your kids how to fish rather than always giving them fish. That way, you will have given them the most important gift of all.