Every parent wants their children to grow up and hold their own in the big bad world out there. But the world is changing, and kids nowadays need to have a different mentality when it comes to achieving success and financial independence.
Graduating with honors and joining the job hunt isn’t the ultimate dream anymore. That path holds little hope and plenty of frustration as competition for jobs increases while salaries decrease and the economy faces crises after crises. What’s the way to go for the younger generation, then?
The answer is simple – kids need to learn about entrepreneurship, and the earlier they do so, the better. As parents and guardians, it’s our job to foster the principles of entrepreneurship in kids, so they can become the leaders of tomorrow. Here’s what you can do to teach your kids to help them survive and thrive in a seemingly harsh financial environment.
Familiarize kids with the language of money and finance
When you teach kids to be financially literate, they’ll be able to invest and save with confidence. Traditionally, certain financial terms were considered too complex for young minds, but kids can be incredibly fast on the uptake. So encourage your kids to learn about how finances work and how to run numbers if you want to start a business.
Let’s say, for instance, your child wants to start a cookie business; it may motivate them to know and understand that the baking industry racks in not less than $300 billion per year, which makes up around 2% of GDP in the USA. Knowing this information will help encourage them to find out more about how the baking business works and how money is made.
Help your children gain practical experience
Kids should be taught to be competent and responsible so they don’t always rely on their parents to support them. Encourage them to be inquisitive and explore the financial world around them under your watchful gaze. Involve them in financial discussions and activities like budget planning and formulating business ideas. Don’t just hand everything to them on a silver platter.
If your kids continually ask for money or the latest gadget, make them understand that money doesn’t grow on trees or sit around gathering dust in your credit card – it’s earned. To earn money you can either ask your kids to do more chores around the house or start a small project like a lemonade stand or an online store, or whatever their creative mind can come up with.
They will accumulate a ton of real-world experience in the process, including how to navigate the seller market, what profit means and how to break even, the importance of customer service, and even how to spot a scammer from a mile away.
Be fully supportive
Your dream for your kids may not always align with the path they choose for themselves. It’s essential that you encourage them even if their business idea doesn’t fit in with the typical gender stereotypes.
If their talents, passions, and inclinations lie elsewhere, other than what you had in mind, it’s your duty to still invest the time and money needed to develop your kids’ entrepreneurship skills.
Teach your kids to get comfortable with failure
Statistics show that up to 70% of all business partnerships fail. If your child were to learn this and other unfortunate entrepreneurship statistics at an early age, they’ll be better equipped to handle things when they finally mature.
Children need to learn that failure isn’t always bad, and there’s something to learn from it. When you encourage them to keep pushing, they learn resilience, patience, and persistence, which are valuable virtues to have in an entrepreneurial world.
Your kids can also learn a thing or two by watching you in action
More than anything, your kids learn by watching you. So make sure you practice what you preach. Be a source of inspiration and motivation. As a parent, you’re likely the greatest influence your child has, so make it count by practicing the same entrepreneurship principles you teach them.
Traditionally the standard for teaching young people important life skills looks something like this: Wash both your hands with soap and water after you cough, or sneeze. Not to say that’s bad advice but kids need to learn so much more. They need to get up close and personal with entrepreneurship
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