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Explaining Business To Kids

Owning a business can be confusing at the best of times, it can be overwhelming at times even for adults, so if we are going to raise a generation of incredible business people, who have all the skills they need to hit the ground running, we need to help them understand exactly what business is and how to manage their money effectively. So how exactly do we help small children understand all about business?

Explaining business to kids - entrepreneurship and family image of young girl at a desk
Photo by pan xiaozhen on Unsplash

Maths

A lot of children may hear the word business and automatically assume it’s all about the numbers and money, and since a lot of children don’t particularly enjoy maths it can be off-putting, but it’s essential to make sure children are enthusiastic about trying business. Many teens are making money currently from using their entrepreneurial skills already, so there’s nothing to say the smaller children can’t start learning the ropes as well, and as long as they know there are tools like corporation tax calculators to help with the tricky finance moments, then there will be less fear around business and what it entails. 

Roleplay

There’s a little bit more about playing ‘shopkeeper’ than having fun and spending £4675674 on a tomato. It teaches kids the very basics of business, it teaches them some skills surrounding sales, and it boosts their communication skills. The next time the pretend shop comes out why not show them how to put a little bit of savings aside for tax and make sure they know their objection handling skills too! Why not help them type a mini CV while you’re at it? 

Do what you love

Encouraging children to try everything they can and find the thing they love the most is a surefire way to put a child on the right path to success, business usually starts with a love for something or a passion, and often that ‘thing’ can be discovered as a child which saves a lot of time and energy later down the line. Of course, there’s no pressure, let them learn and discover new things at their own pace. But It’s also great fun and confidence-building to try new things out! 

Online Marketing

This is a big one, children must know about advertising and the many forms that it takes in 2019, most Youtube videos children watch these days will be making money for a brand or sponsored one way or another, so it’s great for kids to know what they are viewing may not always be as natural as they think, and that companies make a lot of money from toys sold via videos and adverts. It’s also helpful to show kids how that works in business as well, it gives them an insight into marketing, and depending on their age, it helps with realistic expectations too! 

Whichever way you decide to introduce business and how it works to your kids it’s essential to keep it light and age-appropriate, kids don’t need to know about the ins and outs of every detail in business, but they can certainly show an interest and get a good insight from an early age.

Smart Ways to Make Positive Changes in Your Budget

Looking to be a bit more sensible with your finances? Maybe you’re fed up of running out of money mid month- or perhaps you have a new savings goal that you want to reach. You might want to get out of debt, or even just feel more organised. Whatever your motives are, being organised with money is no bad thing- here are some smart ways you can go about making changes. 

Smart Ways to Make Positive Changes in Your Budget - in control of your finance image

Switch bill providers

The companies that you pay your bills to are highly competitive, meaning a little shopping around will snag you the best rates. Every year, run some quotes through price comparison sites, and switch to the company which will provide you with the best rates and overall price- it makes no sense to be loyal to the company you’re with as they make their money from their long term customers. While you’re always going to have to pay for things like electricity, broadband and insurances, you shouldn’t be paying over the odds. A few hours just once a year searching for the best providers can save you a decent amount of money overall. 

Meal plan

Food is one area that just about all of us tend to overspend on. We all need to eat, and so it’s something that everyone should be more organised in, once a week, write up a menu for the next few days and then shop to that list. When you get home from work you know what you’re having and always have the ingredients on hand to make it. You don’t end up buying what you don’t need at the supermarket and you reduce your food waste too. Go on sites like Pinterest and write a list of all of the meals you enjoy eating or want to try. Then when you’re building your menu each week, you can pick meals off the list rather than having to think off the top of your head (which can be harder than it sounds!)

Set a budget for extra or luxury spends

We all enjoy our little luxuries- when you work hard it’s these fun extras that make it all seem worth it. Maybe you enjoy going out for meals in nice restaurants, perhaps clothes are your thing or you might just enjoy a night at home every now and again with a glass of wine, a takeaway and a few dollars to flutter at a slots casino. We all have our little enjoyment and luxuries and it’s nice to have them, but just make sure you’re budgeting for them. Your bills, food, travel and other important expenses should be paid first on payday. It’s only then should you treat yourself to any extras, using money that’s leftover. It can be helpful to have a cap or limit on your treat spends, that way you don’t go overboard and can save anything you have afterwards and put it in a savings account. 

Set up extra sources of income

Even if you already have a full time job, it’s a smart move to set up additional streams of income. Blogging, freelancing, even a home business can generate extra cash- this can make your life easier financially, help towards your savings goals or contribute to paying off your debts depending on your situation. If you ever lose your job then you have at least a little something to fall back on while you look for something new, and it generally provides you with a bit more financial security. 

Sell what you no longer use

Most of us have new things coming into our home all the time, so decluttering needs to be an ongoing process. Not only is this good on a practical level (we can sell what we no longer use to raise money and make space for the things we do) but it’s also great for mental health and wellbeing. Being surrounded by clutter, mess and having a house packed to the rafters can create feelings of stress and unease- research even shows that a messy bedroom can cause sleep problems. Go through your cupboards, drawers, wardrobes and other areas of your life and sell anything that’s still good but that you don’t use any more. Put this money into a savings account or spend it on debt- either is a much better use than having it tied up in items that are simply sitting there collecting dust. 

Day 5

Welcome to Money Quest Day 5

https://thefinancialfairytales.com Money Quest Day 5 - free financial education course for kids

Well done for reaching day 5! I hope you have enjoyed the stories and activities whilst learning a lot more about money.

If you would like the opportunity to have all the activities plus a bundle of stories – we have put together a very special offer.

You can enjoy The Treasure Box – for a limited period of time at a special discounted price.

treasure box image

Inside the Treasure Box is the full 50 page activity book, 3 story books, an audio book and special bonuses. To find out more click here

It’s been a pleasure being on this journey with you. Thanks for all your comments and feedback. Until next time, here are the last of this week’s Money Quest activities

Day 4

Welcome to Money Quest Day 4

financial fairy tales money quest day 4 image

Today we are going to start a brand new story – The Magic Magpie, plus you will enjoy some great new activities to develop your money skills

money quest rainy day fund image

Is There A Credit Gender Gap?

In the US, Moms are 3.6 times more likely than dads to give their kid a credit card, according to a new WalletHub survey released today. Parents can make their child an authorized user on their account and give them their own card tied to the parents’ credit line.

Making a child an authorized user can be good way to teach them responsibility and help them build a credit history before they are old enough to have a credit card account in their own name. However, not all parents decide to give their kids a card. Below are a few key stats from WalletHub’s survey:

Is There A Credit Gender Gap? - teens and credit card image

Key Stats

  • 2.4X more daughters have credit cards than sons.
  • Kids in private school are almost twice as likely to have a credit card.
  • Dads are 3.4 times more likely than moms to monitor their kids’ credit card spending.

Q&A with Odysseas Papadimitriou, CEO of WalletHub:

What is an appropriate age to give one’s child a credit card?

“It’s a good idea to give your child a credit card for emergencies when they are in high school,” said WalletHub CEO Odysseas Papadimitriou. “That’s when young people start to exercise their independence more and more, making access to funds for emergencies increasingly important. Plus, adding your child to your credit card account as an authorized user can help them build some credit history, making it easier for them to get their own account after they turn 18. When they’re eligible to get their own account, set your child up with a secured credit card, and have them fund the security deposit themselves. This will give them good practice without too much risk. But it will be their own money at stake, which is important.”

What explains 2.4X more daughters having credit cards than sons?

“My guess is that parents tend to see their daughters as being responsible enough to handle a credit card at an earlier age than their sons,” said Odysseas. “However, the need for financial literacy is gender-agnostic. And the kids who are least responsible may actually need the most hands-on training.”

Should parents closely monitor their kids’ spending?

“Parents should monitor their kids’ spending, both to keep them safe and because it can provide some valuable learning opportunities. But they shouldn’t try to be sneaky about it,” said WalletHub CEO Odysseas Papadimitriou. “Rather, parents should discuss spending decisions with their children in order to help calibrate how they think about money and improve their financial literacy. Credit cards make this whole process a lot easier than cash.”

A copy of the full report can be found at https://wallethub.com/credit-cards#survey.