You’re never too young to learn business skills,

COMMENT You’re never too young to learn business skills

This past summer two girls, aged five and seven, set up shop on an Ottawa bicycle path to sell ice cold lemonade, hoping to raise money for camp. The girls managed to gross $ 52 in a few short hours, but before they could take stock of their good fortune, let alone think about the elementary aspects of budgets, inventory and profit margins, they were promptly shut down by the National Capital Commission, citing lack of proper permits.

Instilling an entrepreneurial mindset in your children through such activities as setting up a lemonade stand or providing services such as lawn- cutting or babysitting, is proven to help them grow into responsible and intelligent adults, able to create opportunities for themselves.

Most parents prefer their children not end up among the 70 per cent of adults who are unaware of typical priorities and strategies for long- term saving or the 80 per cent who have no idea t hat f i nancial priorities change with age, as a survey by the Investor Education Fund found. Indeed, half the people surveyed didn’t know the cost of a 25- year mortgage is higher than a 20-year mortgage. When it comes to understanding and dealing with our finances, most Canadians aren’t getting a passing grade.

November, Financial Literacy Month, offered many excellent opportunities to introduce basic financial principles to young children. One of the most effective ways my son and I discovered is the M is for Money books by Teresa Cascioli, an award- winning entrepreneur.

The series of nine books, follows twins Tessa and Benji, as they explore the rudimentary aspects of money. Along the way, they learn they can receive money in exchange for work, or as a gift.

They can spend it i mmediately or save it f or later. It can buy something you want or to buy a gift for someone, or it can be used to help those who are less fortunate.

With titles like The Little Piggy Bank, A Little Loan, and Counting Comes First, the books grew out of the author’s conviction that financial literacy is a fundamental life skill as important as reading and writing. We read several of these books and they are terrific.

I started my son’s financial literacy journey by taking him to the bank to set up an account, but it was clear more was needed. After a few trips to the bank, I realized I had to burst his belief that the ATM just spit out $ 20 bills if you put in your card.

The books helped him understand why buying everything his friends showed off at school or stopping at every vending machine is not a great idea. It taught him basic concepts behind setting up budgets, taking out loans and investing in things that will pay off later, all essential skills for anybody who might want to one day setting up a business.

Yet, with the prospect of getting shut down by a policeman asking about permits and licences, you might wonder if your child’s entrepreneurial urges should be put on hold.

No one wants their child come face to face with the intimidating realities of the ever-growing bureaucracy.

Helping your children set up their own business teaches them the value of hard work and money. It also gives them a sense of responsibility.

Billionaire and investing guru Warren Buffett often quotes a study on predicting business success later in life. The study concluded that the age at which someone starts their first business will determine how successful they become. Teaching sound financial habits at an early age gives children the opportunity to be a successful adult.

Buffett’s childhood was full of investments and businesses. At 11, he bought his first stock. At 14, he used $ 1,200 he had earned from paper routes to purchase 40 acres of land, which he then leased to farmers. In high school, he and a friend bought a used pinball machine for $25 and set it up in a barber shop. They later put machines in other locations and eventually sold the business.

Your child doesn’t have to be the next Warren Buffett to benefit from a small venture or two. Owning your own business, or at least knowing the skills involved, is about owning your own future.

And, regardless of your potential career, it never hurts to be financially literate.