Helping your kids start their own business can teach them the value of money and good financial habits
We talk a lot about budgeting, saving and other personal finance concepts here but there’s one financial tool that can teach kids all of these things in one. Building a business means kids will need to budget their income, spend wisely on supplies and learn the tradeoff between spending profits or reinvestment.
Today’s essay is by Sean Tackett, a student at the University of Georgia. He shares how starting a business helped him learn great personal finance habits and financial responsibility.
Check out Sean’s story and please share on social media. The most-shared essay on how parents can teach their kids about money will win our $500 personal finance scholarship, announced August 31st!
Looking for ideas on businesses you can start with your kids? Check out this resource list of work from home jobs to start today!
What Starting My Own Business Taught Me about Financial Responsibility
For me, financial responsibility and independence proudly runs in the genes. In 1968, my great-aunt and great-uncle founded a restaurant and later sold it to my grandparents on my mother's side who managed it for years with my mother. In 1972, my grandfather on my father's side founded and still operates his own heating and air business. In 2010, my parents and older brother founded a hair salon.
Now in 2016, I founded my own video production business. My parents showed me what it takes to start a business of my own, as they have done for my entire life. When I was a baby, they created bank accounts for me and a certificate of deposit because it had a higher interest rate.
I can remember setting money aside to save up for more expensive toys and games since I was nearly six years old. Into my early teens, I began saving up for more expensive video cameras. Now, I focus on working to save up for next semester's tuition, and thankfully, I am able to make money doing what I love to help pay for college.
Personal Finance and Entrepreneurship Go Hand-in-Hand
For many years, I filmed action sports videos for personal pleasure until high school when individuals and organizations began offering me money for my talents. Once I graduated high school, my parents pushed me to build some structure to this brand that I unknowingly created.
In January, I registered my business as a Limited Liability Company and film as many events as I have the opportunity to. When I'm not studying for classes, I am working hard on editing videos with my brother, and growing followers across social media.
If it wasn’t for the brains of my parents, I would not be in the financial situation I am in today or have the necessary knowledge regarding startup businesses. I would not consider myself “well-off” by any means, but thanks to many smart decisions, I am able to make the most from what I do have.
How do I make $80k a year working from home? Learn how to start a blog to make money from home and join the gig-economy.
In our family, we still drive older Volvos not only because they were often ranked the safest of vehicles but are also long-lasting. This way, we are able to save on insurance because they are older and still extremely safe cars. My father has even taught me the essentials ensuring my car is running properly, and I am able to order the parts it needs online and install them myself.
The money that is saved by not taking the car to a shop is later invested back into camera equipment for my business. Being in college, I've learned to pay bills before they’re due, and the consequences of debt that can result if I don’t.
My goal is to graduate college without taking any loans from the federal government or private institutions. I have my parents to thank for teaching me all of these essential skills and always pushing me to succeed. Without them, I would not be nearly as confident in my future, and I hope to instill the same values in my children later in life.
I want to thank Sean for his essay on how to use entrepreneurship to teach your kids financial responsibility and good personal finance habits. Be sure to support Sean by sharing the article through social media and check in August for the winner of the personal finance scholarship.
About the Author
Joseph Hogue is a financial expert and investment analyst. After serving in the Marine Corps, he started his career investing in real estate before becoming an investment analyst for some of the largest private investors. He's appeared on Bloomberg and on CNBC as an investment expert and has published ten books in personal finance. Now he helps investors reach their financial goals and invest in the stock market with some of the same advice he used when working for the rich.