How to raise young entrepreneurs
TEACHING children good money habits should be the top of any parent’s mind. Teaching them how to become budding entrepreneurs puts them on the right path to financial success.
Modern-day parents have often been chastised for giving in to temper tantrums and arguments and in many instances their response is: “I want my child to have the things I didn’t.”
Creative parenting expert and author Nikki Bush has a four-pronged approach on how parents should be putting strategies in place to counter this way of thinking. “We should be teaching our children how not to fall into the debt trap,” she notes.
“Secondly, they need to know they cannot always have everything they want when they want it. They need to learn the value of money and to respect and look after their possessions. And finally, they need to learn how to save and invest because money makes money.”
Bush stresses the final point because she believes it’s a lesson that many adults have failed to learn.
She also urges parents to encourage entrepreneurial ambitions in children from a young age by directing them from afar, but letting them independently come up with ideas and putting them into practise.
“My niece and nephew made themselves R155 on the weekend by selling candyfloss, popcorn and lemonade to the passing neighbours in their estate. They got a bee in their bonnet that they wanted to create a pop-up shop on the verge outside their home.
“Of course the money was split both ways, but on reflection, the workload was also split down the middle and many lessons were learned,” says Bush.
Children don’t learn financial intelligence in a vacuum, adds Bush. She says that they need us to show them how, and making things as real as possible is the only way they can learn about money. Case in point: her niece and nephew’s pavement stall.
She does have a few tips on how to get them started:
Save for big ticket items Children should be encouraged to save towards big ticket items. Get them to agree to save towards something, and you add the equivalent or double. They will appreciate the value of it and will take more care of things that they’ve bought.
Open a bank account Fewer than 25% of South African children have bank accounts. Many parents may argue that there is no need for one, but it’s quite the opposite. The idea is to teach them how to spend and save by becoming a “spaver”.
Spavers know when it is important to spend and how much to save for something.
Invest, invest, invest Teach your children to invest so that they can learn how to make money work for them. This is part of our financial education most of us missed. It’s important for them to understand the magic of compound interest.
Be resourceful Most schools have market days as fund-raising ventures. Brainstorm ideas with them by getting them excited about it. Once they’ve decided on a product to sell, advertising is essential. Help them draw up posters and pin them up around the neighbourhood or school. Teach them to have confidence in their idea – if they don’t believe in it, it won’t sell!
Visit Nikki Bush’s website: http:// nikkibush.com/ or contact her: nikki@ nikkibush.com