5 ways to teach future entrepreneurs about money

There are as many ways to make money as there are ways to spend money. Her teens today could be in the role of an office worker, paid by time, projects or results, earning royalties from property and investments, charging fees for time, knowledge or software. There is a nature. Not only are they more likely to have multiple sources of income at once, but they change throughout their lives. The internet is full of financial advice from various online personalities, but how do young people distinguish the truly helpful advice from the noise, fads, and scams?

Davinia Tomlinson is the founder of Ranchq, a platform that helps people take control of their financial future and live their best financial lives, and her new book Cash is Queen: A Girl’s Guide to Securing Cash, Author of Spending and Stashing Cash. Tomlinson, who launched Rainchq after 15 years in investment management, says women are underrepresented in senior management and women are generally not involved in their own finances. I was getting more and more frustrated. According to Tomlinson, today’s entrepreneur and senior her leader is as young as 7 years old, which is the time when a child’s money habits are forming.

Tomlinson believes that we “haven’t been properly taught about money, so we pick up bad habits and imitate others,” and he believes that future entrepreneurs and business leaders can help them in their future endeavours. We share 5 ways to help you learn useful money skills.

1. Helps you master the gratification of procrastination

Most entrepreneurs struggle to make money from the start. But that doesn’t mean they should stop trying. Moving forward, working harder, and rolling more stones can mark the difference between a founder who achieves great success and one who gives up and chooses a more stable career path. With patience comes delayed gratification.

“Developing the perseverance to achieve goals can be nurtured at a young age to prepare children for entrepreneurial endeavors,” says Tomlinson. Talk about striving to reach a big goal, and help them see how they got there in the end, even if it wasn’t easy. The more difficult it is, the higher the final satisfaction.

“Another way to master delayed gratification is to teach them to divide desires into ‘needs’ and ‘wants’, emphasizing the benefits of waiting before consuming. For example, their first major customer acquisition could lead to purchases of fancy offices, expensive subscriptions, and other things they don’t really need. Teach me to wait until I absolutely need something. “By cultivating delayed gratification, you develop habits that will help you gain an entrepreneurial edge.”

2. Introduce basic financial concepts

Selling millions of dollars in goods may not make you a millionaire, but younger people may not understand it without further explanation. In order for any business to be successful, it must be profitable, not just profitable. Tomlinson believes that talking about money left over, not just money earned, can help teach teens valuable money lessons.

Popular first-time adventures to make money include washing cars, walking dogs, selling cakes, or garage items you no longer need. It’s easy to forget that everything you sell, whether it’s dog treats, cake ingredients, or anything else, has a cost. Plus, it costs your time and your backers. “We need our prospective founders to know their numbers,” he says Tomlinson.

Revenues, profits, taxes, and expenses must be concepts that become second nature when there is a structure for them to memorize, like a school timetable. Practice while on the go, in shops, restaurants, or doing business online. “Learning the skill of setting a solid budget is one of the best ways to help prospective founders manage their own money, rather than their own.” , teenagers have different priorities than startups, but the basic principles are the same, adds Tomlinson.

3. Try 50, 30, 20 methods

Tomlinson teaches the 50, 30, 20 method. This method divides available cash (eg, pocket money) proportionally according to needs, desires, and savings. “A teen’s ‘needs’ could be lunch, bus fare, pet care, a sports club.” increase. For teenagers, savings may be within a bank account, but as they grow up, this could be an investment pot in real estate, index funds, etc.

“In life and in business, we need a framework that not only covers our costs, but also allows us the space to be nimble in a rapidly changing marketplace,” says Tomlinson. “This approach gives teenagers flexibility and allows them to develop money management skills that are critical for a well-managed startup.”

Of course, to have financial freedom, it is necessary that your expenses do not increase in proportion to your income. As their income grows, they secure part-time jobs or start business ventures, move the conversation toward investing and tell them about the beauty of compounding and starting young.

4. Help create a money automation system

In an ideal world, your money would work for you, not the other way around. How do you inspire this idea in teenagers? automation. “Now you can gamify your money with automated investment apps and savings apps,” says Tomlinson, adding that teens can start on a sound financial path by helping them organize their money. We recommend opening a good bank account with “Pot” or similar features. according to different goals.

Tomlinson believes this automation should “automatically dispense money into the savings pot on a fixed day each month.” It exists while sabotaging their future. “Think of this as a payment to your future self. You wouldn’t dream of stealing from yourself, would you?”

To facilitate the system, Tomlinson wants teens to set up ping. ” She said automating some of the financial tasks has clear advantages. occur. ”

5. Introduce visualization practices

Our previous tips have covered how to spend less and keep more, aiming for financial freedom faster than most people. Visualize how money can be used to

Tomlinson said this will start with social media and allow people to use the internet without feeling like they need to have what other people have. Have candid discussions about what they see on social media, such as possessions and luxury surroundings, and discuss what actually constitutes happiness. Help them understand what makes them happy so they don’t get confused: Tomlinson suggests doing this by defining the characteristics of their dream life. , what kind of experience you want to have, how you want to spend your time, etc.

Don’t just talk about doing this, she said. Make exercise fun. “Have them pick up a magazine, print out images they find online, and then use glue, scissors, and a large piece of paper or cardboard to create a collage of their dream life.” Find inspirational phrases and words that describe life. The result is their personal vision board, a snapshot of her one of life’s grand plans. “Have them put the finished board somewhere they see it regularly,” she added Tomlinson.

Many successful entrepreneurs use the power of visualization to achieve their business goals. By practicing this exercise from an early age, these images can become reality much sooner.

Helping teens develop good money habits can help them get on with the rest of their lives. Tomlinson knows, “It’s almost impossible to be good at something without being told how to do it.” She wants to help parents of teenage children build wealth and save it.

Learning delayed gratification, common financial terms, adopting money organizing systems, using automation, and visualizing dream lives can help teenagers dream big and have fun. By doing this, she believes, she helps “separate them from their peers, increase their well-being, reduce their stress, and increase their financial literacy, which benefits them in the world of entrepreneurship.” I’m here.