The Importance of Teaching Your Kids Some Business Savvy

Those of us who majored in business know that much of what we know now as entrepreneurs didn’t come from the classroom, but from the experience of applying all those theories to real life–from when we actually apprenticed, worked that corporate ladder, and/or set up our businesses. Those of us who didn’t even major in business learned as we went along, and had to learn some things the hard way.

We could save our children some grief over that learning curve by instilling certain principles and mind-sets early on, and giving them a lot of that much-needed experience in business. No matter what careers they end up in, they need that business savvy.

Even superstar athletes, recording stars, and movie and TV celebrities need to learn what to do with their money so that it lasts long after they stop getting those million-dollar contracts. Surgeons and engineers deal with personnel, leases, and expenditures too, and need to be equipped to do so.

Get a Job

Money doesn’t grow on trees; this is a lesson that kids need to learn early on. By having them get jobs while they’re young, you instill in them the connection between work and pay.

Encourage them to apply for that part-time job in the neighborhood store as soon as they’re old enough. For tweens, have them do small jobs to help you or your business such as managing your business’s social media page, typing up letters, tidying up at the office, etc.

It is important to note that chores don’t count as jobs, and that kids should not be paid for doing them; chores are simply part of home life, and thus should be done gratis and with good cheer.

On the other end of the spectrum, allowance is not payment—it is something we as parents are obliged to give our children as part of our responsibility for their sustenance, just as schoolwork is their responsibility to do.

Teach Financial Management

Isn’t this area something we all wish we had down pat by the time we reached our twenties? It’s never too early to teach kids restraint in their spending, as well as budgeting and investing. Give them their allowance for the week, and leave it to them to budget their money.

Open up a savings account for them, and teach them to save at least 10 percent of what they make in their jobs. Teach them to invest at least 20 percent of what they earn in a business of their own. Or you could offer some assistance by putting their money in a long-term investment plan.

Start a Business

Nothing beats the experience of putting up your own business. And this is true for you as well as for your kids.

Running businesses while they’re young is the time for kids to make mistakes and learn from them. The stakes are not so high, and they have their mentors (i.e., you) to guide them as they conceive and birth their first entrepreneurial ventures. Whether it be a lemonade stand, a bake sale, a babysitting service, or lawn mowing business, it could be a venue for learning important business principles.

Expand Their Horizons

Show your kids the world–or at least the world outside your own neighborhood, your own business, and your own circle. This teaches them about life, and about perspective and context. It shows them what’s been done and what’s possible. It awakens passions and ambitions that they may not discover by themselves.

Take them to concerts, take them fishing, or to volunteer at the local shelter. If you work in the art world, show them the sciences. If you work in banking and finance, show them figure skating and pottery making.

Explore Engineering

According to Business Insider, engineering teaches a valuable skill in business; it teaches you to think clearly and break complex processes into smaller and more manageable bites. So bring out the Lego sets. Buy your kids some project kits. Or have them learn some programming language.

Practice Negotiating

Ah, yes. It’s never too early to learn how to make the best bang for your buck. But a lot of us are shy about haggling, afraid that it makes us seem greedy and pushy.

But the art of negotiation is a skill we can develop with practice. Start your kids out with some haggling exercises to get them used to it, both as buyers and sellers. It also gets them used to reading body language

Summing it Up

Hopefully these gives you ideas on how to raise kids with basic business skills so deeply ingrained they become instinctive. We can’t take care of our children forever, so it’s important to teach them how to support themselves and take care of themselves.

The post The Importance of Teaching Your Kids Some Business Savvy appeared first on AllBusiness.com

The post The Importance of Teaching Your Kids Some Business Savvy appeared first on AllBusiness.com.