Yesterday, I told you about the small business and entrepreneurial lessons I taught my children after the impromptu garage sale my son, daughter and a friend had in the driveway last weekend. Today, I want to tell you what happened afterward. At the end of the sale, the 3 new entrepreneurs had collected $26. They were so excited, and so was I.
I've always taught my children the 4 things you can do with money: spend it, save it, invest it or donate it, so I asked them what they wanted to do with their haul. They listed lots of toys, and in my daughter's case, perfume and lotion. I proceeded to explain that if they were grown ups, they'd have to pay taxes and also tithe a portion to worthy causes, so we pulled out a calculator and added up how much they'd have left after earning $26.
Figuring 10% for a tithe and 20% for taxes, their total profit was $18.20. Since they were business partners, they'd have to split that up evenly, for a total profit per person of $6.06. Suddenly, it didn't seem like a lot of money, and it wasn't.
I did this to show them that, even if you make lots of money, you have to pay your taxes, donate to the less fortunate and share a portion with the people who helped you be successful. I'm so excited to be in a position to teach my children these lessons at such an early age.
Unlike my generation, they won't have the bumper crop of year round jobs to choose from. Instead, whether or not they have a traditional job, they will also need a source of income that they control. This little garage sale lesson is the first of many that I hope will set them on the course toward entrepreneurship.
Question: What do you think? Too much information to early? I'd love to hear your thoughts and the creative ways you use your entrepreneurial experiences to teach your children about money. For more tips and inspiration, visit Indiebusinessblog.com.
