Many thanks to RichDad for sponsoring this post and inspiring me and my family to be financially savvy!
One thing I always promised myself I would do is teach my son how to manage money. Teaching kids about money is usually not something we consciously do. They usually just end up mimicking our own financial habits. I was lucky because my father was an entrepreneur and as I grew up I heard my parents discussing every aspect of our family’s business every day. They taught me everything they knew about business, finances, investing, and saving. This enabled me to make good financial decisions in my life which is something I want to pass along to Tyler.
He has read books, started a savings and investment account, and had a small business all by 11 years old. Now that he’s in high school he’s very involved with his school’s Future Business Leaders of America (FBLA). One great tool that I’ve used to teach him (and some members of the FBLA) how to manage finances is a game called CASHFLOW by Robert Kiyosaki, the author of “Rich Dad Poor Dad.”
CASHFLOW board game is really fun which is the most important part. A kid isn’t going to learn as much if playing is a horrible chore they have to endure. My son begs me to play and his friends love to play when they come over. The game board is made up of two main parts: an income statement and a balance sheet. The income statement is made up of salary, passive income, and expenses. The balance sheet is divided into assets and liabilities. The assets are then divided into securities, real estate, and businesses. Liabilities are made up of borrowed money, credit cards, and mortgages. These are all mostly pictures and include definitions so are easy to understand. The whole point of the game is to eventually get more passive income than expenses so your money is working for you instead of you working for your money.
It’s amazing how quickly Tyler caught on and now uses these business terms in everyday conversation. This game is also one of the reasons he decided he wanted to save $500 to start a Scottrade investment account so he could begin to earn passive income by investing in dividend stocks.
I’m pretty proud of all my son has taken away from the game but I have to admit it also reinforces everything I learned from my parents and business school. I remember I should be making my money work for me instead of working for money just so I can blow it on things that don’t matter.
The best part of this whole learning experience? Ty now understands when he wants something and I say my money would be better used on something else. Usually, he agrees with me and tells me to invest it! Teaching kids about money has never been easier or more fun!
Teach your kids how to be financially savvy: Buy the CASHFLOW board game for your family today and get 10% off using the promo code CASHFLOW!
UPDATE: Tyler played the some member of the FBLA and we are now going to incorporate CASHFLOW into one of the meetings so they can have fun while learning about business and investing!