How to Raise Your Kids To Be Entrepreneurial

Parents are now realizing more than ever the importance of providing their kids with information about money and business at an early age. In today's economy, we need to raise our kids to be self-reliant. Getting a good job is no longer a guarantee of financial security that it was in the past. Employees, even highly skilled ones, face an uncertain future that is ultimately in the hands of their employer, their geographical area and their industry.

The key concepts that parents should convey ideas that reinforce independence, self-motivation and entrepreneurship. Imagine your child having the freedom to graduate from high school with a secure, passive income source already in place. This lifestyle is possible if you empower them with the necessary tools starting from a very young age.

Here are a few ideas to teach entrepreneurial thinking to your children:

1. Clearly explain basic money facts. The basic ideas about money are simple enough that young children can understand them. You should cover:

* What is money and why do we use it
* How money is earned
* How money should be spent
* The importance of saving money
* Renting versus buying a home
* Assets and Liabilities
* Good and bad debt
* Relevant mathematical concepts like percentages

2. Build good money habits. We all teach our kids habits. We teach them to brush their teeth, to clean up after themselves. We also teach them money habits. Good money habits include providing value in exchange for money, living within your income, saving, investing and managing risk.

3. Require your kids to save a portion of their own pocket money or allowance. Kids learn to save by doing it. If they develop the habit of saving their money and watching it grow while they are young, these skills will extend into their adult lives.

4. Encourage your child pursue activities that they enjoy and have a passion for. Although every child will inevitably have to perform work they do not always like, they should also have work that they are passionate about and consider fun. This will help them develop a strong work ethic and a commitment to their future careers.

5. Talk with your child about your work experiences on a regular basis. Explain to them what you do, how you earn money and the importance of developing a career. Share both the positive and negative aspects of work so that they have a realistic idea of what the professional world is like.

6. Encourage your child to start their own businesses as soon as possible. Lemonade stands, babysitting and lawn maintenance are all great entrepreneurial jobs that your child can start at a young age.

7. Embrace technology with your children. Teach them to use computers, software and the internet as soon as they can walk and talk. There are a wealth of opportunities that technology can offer and the sooner your child has an understanding of technology, the better they will be able to compete.

8. Build a can-do attitude. When you're child says "I Can't", get them to replace this phrase with "I need more practice". When your child is faced with a challenging task, do not complete it for them, even if they ultimately fail. Kids are very good at minimizing the effort the invest in projects, and if they realize that complaining will get somebody else to finish they work for them, they will take advantage of this.

Alero Equities FREE Seminar on How Money Works

HOW MONEY WORKS: 1 Day FREE Seminar Educating Children and Parents How to Become Money Smart

Come join us on June 3rd 2009 for a free seminar on education Children and Parents on How to Become Money Smart.

- We will teach your children everything about how money works;

- We will show parents how to set up a bank account and a Roth IRA for their child;

- We will introduce you and your child to ABC Financial Literacy Project, where your child can learn everything about financial independence.

WHERE
Radisson Hotel
6161 Centinela Ave.
Culver City, CA 90230

WHEN
Wednesday, June 3rd, 2009
Starting at 7pm

I'M INTERESTED!
To request more information on this FREE Seminar or about other offers from ABC Financial Literacy Project, please contact us at (877) 4123-ABC. Or you can email us at info@abclearnmoney.org

WHO SHOULD ATTEND
All Parents and their children who want to learn about money and how to become a financially successfully individual.

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Teaching Your Kids About Money - Part 3

"I want my children to have a good start in life."

Don't we all? No, that doesn't mean spoiling them rotten, though we often wish we could. We want to give them a solid leg up so they can achieve their own financial security.

Fortunately, there is much you can do to help bring that about and to help assure that your children, whether still in a high chair or already in high school, can enjoy a lifetime of financial security.

1. Start young to help them understand the concept of money and how it works. When my daughter was four years old, she'd help me pick out toll money when traveling by car. When we'd go shopping, I'd casually explain why I bought one brand versus another. "By getting this one, we can now afford to go out to lunch with the money we saved."

2. Help them cultivate the savings habit by establishing a savings account at your bank or credit union. Set it up in their name and encourage them to make regular deposits. One way is to match their deposits. Let's say your ten year old son saves $5 a week and you match each deposit dollar for dollar, so a total of $10 goes into the account each week, or $520 a year. When he's ready to buy his first car in a few years, the down payment, if not the whole amount, will be waiting for him.

3. Teach them how to spend money. That also means letting them make mistakes. When I was a kid, I blew a whole dollar on penny candy, one hundred pieces. It sounded like a good decision at the time, until the ice cream truck came down the street that evening and I had no money. No, I didn't get ice cream that day, though my parents did explain how I could have had some candy and some ice cream if I had chosen more wisely. The point: Take a proactive approach to educating your children about money and how to use it wisely.

4. Set up a college fund This link will open an external site in a new browser window. and help them save money for college. If you care about your children and want them to have the best possible opportunity for a financially secure future, make sure they have the opportunity to get at least a four-year college education. Every bit of research done on the subject shows that there is a direct correlation between education and income.

More ideas for helping your children achieve financial security:

• Begin their retirement IRA now. This may sound silly at first — setting up a retirement IRA for your ten-year-old — but it's never too early to start. If they earn an income, your children can begin making IRA contributions at any time. (Or, like many parents, you can make the contribution in their name, provided they have verifiable income.)

Let's say your 15-year-old earns $500 this year doing part-time work. Contributing $500 of your own money into his or her IRA may be a good investment in your child's future. This gets the ball rolling. Eventually, your child makes his or her own contributions. Then imagine 50 years from now: Depending on the average return, he or she could potentially be a millionaire several times over. And it all started this year because you helped set up that IRA.

• Update your life insurance program. As long as your children are minors, they are dependent on you for their financial security. If you die prematurely, all your dreams for them could be jeopardized. That's why you should make sure your life insurance program reflects not only your own needs and current income, but your goals and dreams for your children. How much is enough? That's your call. The best bet is to get good information. Discuss your needs — both current and future — with your agent. And don't put it off. Some things are too important to delay.

• Start their life insurance program by purchasing coverage on children as early as possible. Their rates will never be lower. Many will allow them to increase their coverage at certain key times in their life — such as when they turn 21, marry, graduate from college, or have children of their own. In this way, you are helping carry on the legacy by helping your children protect their children.

The bottom line: If you love your children, hugs and kisses are one way to show it. Another way, one that will stay with them and prove itself day after day for the rest of their lives, is to help them build their own financially secure future.