Blog Posts for Tag: Calculated Risk
Money management lessons are so important, but if we don't teach kids how to make money - they'll never have any money to manage!
Here are our top 10 activities which will help you teach your kids how to bolster their bank accounts and hone their entrepreneurial skills:
1. Advanced Kids Business: This is our gold standard activity because it helps your kids to effectively plan for and implement their own small business. The business planning sheets lead children through the brainstorming, planning, implementation and evaluation of their business venture. Though the plan is simplified it will still ensure that your children know the process involved in starting up a business of their own, a skill which could ensure their future wealth and success!
2. Host An Event: Planning and hosting an event is fun, less time consuming than running a business over an extended period of time and it helps your child develop important leadership, time management and organizational skills. In this activity kids are encouraged to organize and host an event and charge admission/sell concession/ and or sell t-shirts and accessories. Some great ideas for an event your child could host include: an art show, a talent show, a sports tournament, a skateboard tournament, a play, a rock concert, a dance party, or a martial arts demonstration. Essentially your child picks something he/she loves to do and creates an event around it!
3. Movie in a Field: Another great event your child could plan and implement is hosting a movie in a field. Kids could set up a projector, a screen, a laptop computer, lawn chairs, and a concession stand then make a some money while doing something fun and unique with friends and family!
4. All Terrain Brain: This website has several fun games, activities and resources to encourage and engage your budding entrepreneur. I am a big fan of the Business Builder Tool, this is a simple and attractive spread sheet you can use with your kids to help them build a business, price their products/services, and figure out their break even point. What I also like about All Terrain Brain is that it doesn't just focus on helping your kids start a business it also helps them build confidence, leadership, persistence and creativity; all of which will help your children to be more outgoing and successful in all of their undertakings.
5. Lemonade stand: There is nothing wrong with a classic! This is an idea that most kids will come up with on their own, but why not encourage your children to take it to the next level. They could advertise, locate their stand next to a softball tournament on a hot summer day, they could offer a delivery service, or they could sell hot chocolate/coffee at outdoor sporting events in the spring and fall. Teach your kids to take a look at a classic idea and put a twist on it. This will help them to stand out and to be more creative in their endeavors.
6. Dollar a Glass: This is an online simulation game brought to you by the biz kids. In this game kids start up a virtual lemonade stand and serve this tasty beverage to their customers. Along the way kids will be asked questions and given different scenarios and depending on how they answer they will make a profit for the week or loose money for the week. This game is a lot of fun - and it's pretty addictive!
7. Understanding Profit: From the creator of Rich Dad Poor Dad and Rich Kid Smart Kid, comes this engaging online game. In the game "Jessie's Ice Cream Stand" the main character starts up an ice cream stand and works to create a profit. The game has several different versions for different age groups and teaches things like what is profit, price elasticity and how to operate a small business. The Rich Kid Smart Kid Website also has some great age specific resources in the "Grown Ups" section.
8. Sales Pitch and Elevator Pitch: In these activities kids put together and present a sales pitch and then distill it down and make an elevator pitch. Any business your kids start up will require them to do a little sales. The ability to create a sales pitch is not only invaluable for their business, but it also increases their confidence and public speaking skills.
9. Stone Soup : This is a wonderful book to read to your little entrepreneur. It is the story of how a soldier rallied a whole community to create something from nothing! It is an inspirations folk tale that will help kids focus on the opportunities around them.
10. Be your own boss: This online resource breaks down the steps involved in starting up a dog walking business, a comic book publisher business and a car wash business. It encourages kids to get a partner, get organized, plan, advertise, deal with unhappy clients, and use value added sales.
Making money doesn't have to be a chore, and starting up a business doesn't have to be complicated. By encouraging your kids' inner entrepreneur you are enabling them to always look for an opportunity to serve their community better and then to profit from their efforts!
Summer is rapidly approaching. The weather is heating up and so is your kid's yearning for the latest summer fashion, gaming device, or technological advancement. It is the perfect time to help your kids start their very own summer business so they earn the money they need to buy the thing(s) they want.
What follows are some great ideas on how to help your child decide what summer business to start, plan for their business, implement their business and then analyze their business for greater success next time.
What Business Should They Start?
Summer offers a myriad of season specific start ups. Some examples could include any type of yard work, lawn mowing, gardening or neighborhood cleanup. Kids have two whole months off from school which opens up possibilities for child care, summer day camps and so on. With the nice weather comes hot opportunities for outdoor events and entertainment. Kids could plan and host an event like an outdoor movie, theatrical production, concert, or a skateboard competition.
Don't neglect the old standby - Lemonade Stands! These can be particularly effective if you get your kids to set their stand up near an outdoor sporting event on a hot day! You could also help your kids to put a new spin on an old favorite. Some ways they could accomplish this include: strapping on some roller-blades and offering a delivery service, offering a 2 for 1 deal or coupon, or giving a portion of their proceeds to charity.
If none of these are to your child's liking then use the Discover Your Business worksheet from TrueSmarts.com's Advanced Kid Business activity. This worksheet will help your child use his or her own interests and talents to devise a start up which is tailor made for your child.
How Should Your Child Plan?
I don't think that you need to sit your child down and make him or her crazy with executive summaries and marketing reports, but it is a great idea to have your child complete a basic plan for his or her business. You can make it as simple as answering the following:
- What are you doing?
- When are you doing it?
- How will you get the materials you need?
- How much will you charge?
A thorough answer to all of the above questions will give your kids the bare bones basics for planning their business.
If you would like your child to do a little more planning for their small business. There is a kid's business planning worksheet in the Advanced Kids Business activity called Plan Your Business. Though simplified, these worksheets will help your child create a complete and comprehensive plan for starting his or her business.
How Should Your Child Analyze The Results?
Once your kids have created and run a small business, take some time to perform a retrospective with them. A retrospective could be as simple as a discussion of how their experience went, whether or not they made a profit, if the experience was what they had anticipated and what they learned or would do differently the next time.
If your kids have started one or two smalls businesses in the past you may want to get a little more involved with the analysis portion of your child's business. Take a look at the Analyze and Improve Your Business section of the Advanced Kids Business activity which includes a simplified excel Balance Sheet and Income Statement. This is a great way for your child to begin thinking about how to maximize his or her profits, decide if there was anything to do differently next time, and reflect on his or her experience.
Reward Their Efforts
Regardless of how successful your kid's business was, you should reward their efforts. Positive feedback is an incredibly powerful reward for kids. A simple, "I am so proud that you started up your own business", goes a very long way!
You could also have a tangible reward. Some ideas for a reward could include: an outing to a favorite restaurant, an afternoon doing a favorite activity, getting to pick the movie on movie night, or you could create a small photo album with pictures from the day they ran their business.
Anything that you can do to create a positive memory around creating a business will drastically increase the likely-hood that your child will try to do it again. If you want to foster the courage, ability, and desire to become an entrepreneur in your children, make sure that you take the time to reward any and all efforts your child makes in this direction.
Every Journey Starts With a Single Step
Starting a summer business is a fantastic way for your kids to learn how to assess neighborhood needs, assess their skills and talents, plan a business, advertise, provide a service, create cash flow, budget, analyze a business, and so much more.
It is also a wonderful way to help your kids to be confident, independent, community minded individuals with the daring to step out and take a risk.
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