If your child is motivated by money or inspired to pursue new ideas, encourage that entrepreneurial spirit. You can take a number of steps to help develop your budding businessperson while teaching valuable lessons about money and management.
Open a bank account
To enable your child to develop as an entrepreneur, visit a bank and open an account. By opening a bank account, your child will learn how to manage money, set a budget and save — all those technical skills that an entrepreneur needs.
Teach money matters
In order to be successful as an entrepreneur, your little tycoon needs a good understanding of some basic money matters. Take the time to explain how banks work. Help your child understand debt and interest. This basic understanding will help a money-motivated child put their own money into perspective.
Support business ventures
Whether it’s the typical lemonade stand or something more inventive, encourage any business venture your child decides to tackle. You can help set up a budget, factor costs, calculate revenues and figure out what to do with the money the venture makes. However, your role is to guide those decisions, not dictate them. Allow your child to make big decisions to practice thinking through and solving problems.
Encourage the right skills
Beyond business and financial skills, there are numerous other skills that factor into an entrepreneurial spirit. Identify and nurture those skills. Look for opportunities to encourage independence. Sign your child up for a sports team so they can learn how to be a team player. Find opportunities to express leadership. These “soft” skills are invaluable to an entrepreneur, so help your child hone them wherever possible.
Encourage your child to read biographies of entrepreneurs and people who overcame obstacles to reach success. Use family movie night to watch inspiring stories that will help your child feel inspired and motivated.
Allow for failure
Most business ventures fail several times before they succeed. Most entrepreneurs struggle before they hit on that winning idea. It’s tempting to protect your child from failing or making mistakes, but allowing your son or daughter to flop every now and again helps them learn what will and won’t work. They’ll actually be learning about proper risk-taking behavior, making good business decisions and finding out when to not pursue a particular idea.
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