Making money and loving it !!

My daughter is making money – I can’t believe it.

I shared with you a while back about my endeavors to help my 12 yr old daughter learn about money. One of my goals was to help her understand that she needed to think in terms of being the boss [ a business owner ]. Well, good news, in the short time that she has started her jewelry business has easily earned more than $100. Her goal to “make” $1,000 dollars by Oct 30, 2010 is not that impossible as she first thought.

The money she has earned has been made in the last 2 weeks, the more she sees that she can sell, can make money and with her own business – the more she wants to do. Ofcourse there are still some challenges.

As with any business she has to learn about inventory, price points, sales and returns and so much more. The biggest obstacle was her shift to saving mode. Most of her supplies and materials have been provided to her thru gifts and her biggest investor - me. I tried teaching her that she needs to budget her money and that she needs to use her income to buy her supplies. Boy did that bring on an ugly scene. Right away she was accusing me, dear old dad who has supplied 80 percent of her materials of wanting her to “waste” all her money.

Learning how to run a business is a process

I don’t expect my daughter to understand everything I am trying to teach her. I expect to have to butt heads with her especially when it comes to “motivation”, she is twelve after all. But if I want her to learn what she needs to learn about money in order to be a success – she better stop crying and start listening.

I did take the “I’m your parent” approach for a second and threatened to stop buying her the supplies she needs – then I calmed down and explained to her that I am trying to teach her more, one day dad won’t be around and I need to know she can do it on her own. That helped a bit, but like life – learning is a process and we have to take steps [ in a twelve yrs olds case, it’s baby steps…. ].

Teaching, learning and working together

One of the things I love most about this process is the time we spend together; I even make jewelry with her. It’s a fun way to make money I have to say and I never thought I’d be working for my daughter [ just a joke ].

It’s nice to sit there with her, watch her be creative, talk and just spend time together. Ofcourse I also get the old juices flowing when I start being creative as well – who knew that jewelry making could do so much.

Can you make a profit?

A friend saw the jewelry my daughter was making and asked me if she was making a profit. Yes- ofcourse! Right now the jewelry pieces are priced at $3 or $4 a piece and my daughter is making a killing, especially since I am paying all the bills in this business. But I can not put a price on the time we spend together or the knowledge she is learning.

It may look simple, childish – a small jewelry business run by one child….. But she is learning how to make money, run a business, dealing with customers, filling orders, marketing and so much more. This may be a small operation, but what she is learning, the confidence she is building, the understanding that she is gaining – it’s priceless to this dad.

Steps to teach your child to build wealth rather than just consume

Parents are always faced with the same problem – their children asking for money, acting like if mom and dad are simply atm’s that dispense money when ever they want it. How do you teach your child to value a dollar? How do you teach them that money doesn’t grow on trees? More importantly, how do you teach them not to be just an employee, but to build wealth?

Have them start their own business.
It will require more time, effort and even money from you the parent, but I think you will like the results.

1. Teach your child about money, even if only the basics.
2. Help your child understand that they can make their own money.
3. Help your child find a business [ you decide if it’s a good and profitable business ]
4. Help your child start that business.
5. work with your child [ understand you are not only Mom / dad and child but co-works ]
6. Be extremely patient with your child.
7. Teach through example, be the lead but not the leader [ motivate ].
8. When successful, multiply that success, help them understand how they were successful and help motivate them to repeat it.
9. Face failure correctly, teach perseverance.
10. Make it fun, enjoyable and a hidden learning tool.
11. Give them a real goal, help them want a goal and to desire to accomplish that goal.

The rest is simply you, your child, learn thru experience. And hopefully, what you will treasure most is the time you spent with your child.