What To Do With Money in the Business

What to do with money: Saving, investing, spending, re-investing in the business

Lesson Details:
August 03, 2020

Video Transcription: Once you've succeeded with having your kids business make some money that's a very exciting juncture because they get to use that money and learn the next steps of what happens with that money this video is brought to you by Appy Pie’s Academy it's not all meant to get spent it's meant to be used intelligently so we're going to talk about in this video saving and having your money make money work for you money making money for you and other things that money does once you have it sometimes it goes away once you have it we'll discuss that too so it's important to now talk to your child about how much money to save versus how much to pay yourself how much to reinvest in the business versus how much it's okay to spend for having fun and that is a lot to discuss it's a lot to learn and consider so you can start teaching about having money make money by introducing your child to something like stocks or even I hate to say it because I know I'm going to get a lot of flack on you know on this point but even crypto currency is like a compelling cooler thing to try then stocks and by the way when you're investing in this invest very small amounts this is just for education so whether you invest in like one share of a stock or one share of a crypto currency or half a share of a crypto currency which is possible you can because you can invest in fractions of them that you know it's just for learning and it's going to even if you buy a tenth of a or hundredth of a Bitcoin.

It's going to open a whole new world for your child because they're going to be checking every day and it's going to be so exciting and but they're going to learn the psychological process of investing their real life implications of investing and actually they're going to learn the information about investing about building portfolios about how to tell if it's good or bad so it's going to open a whole new world of learning and what you can also do is look into more hands-on investments like business cards that you're sorting out business cards baseball cards you can collect other collectors’ items something simple like stamps and maybe buying something and keeping it for the long term and having it be like a longer return on investment there's a lot of very interesting things you can do and so I'd recommend creating once you get your first revenue comes in let's say this first hundred dollars or something maybe sit down and create a breakdown hey we if we can reinvest we can we can buy like a share of some stock or we can buy a share of crypto currency or we can buy more inventory for our business or we can do this or that so that's going to be a very interesting thing because now you're having almost it's investing isn't the business in itself for most people but it's a pseudo business that offers a tremendous amount of learning opportunity about the real world how business works why I stuck or crypto currency goes up why baseball cards go up in value all that stuff is going  to be something that your child will be able to use for the rest of their life and something that they're really going to find useful and you might find useful is actually have them maybe take the family out to something like a restaurant or you know something not too expensive but something that's proportional spending to their earning so that they can see how quickly money disappears so that they start to value earned money because if you just let them save it.

They'll get into process so you know they'll still be in that mode of really living on your money and taking it for granted and just saving their money to their account but if you make them at least once spend it on the family they will learn how quickly money leaves how quickly it just flies away and how hard they had to work for it and next time they'll be asking you for things they will have a frame of reference for that they'll be able to relate for how hard it is for you to earn money and to spend money and they'll appreciate it and they'll maybe ask you for less frivolous spending and mm actually maybe help you save money long-term once then once they are able to be in your shoes so maybe have them spend a little bit of money they'll probably be sad at first but it would be a fantastic learning experience especially if they are young they learn the value of money and these and all these other options are also very really good secondary learning experiences not businesses in themselves but pseudo businesses.

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