When we consider education, we focus on our children being
well-read, able to figure out the area of a triangle, knowing who won the Civil
War, and knowing what Ag stands for
on a periodic table. We provide little
formal education on how to make money and what to do with that money once you
have it. But as a former business
education teacher and a parent, I’d argue that financial literacy is just as
important to our children’s success. Or
least, for us to successfully get them out of our house as functional,
independent adults (the whole goal of parenthood, right?)
What I learned about money (at least before I went to
college and actually majored in finance) was from my parents, with money earned
through part-time jobs and allowance. As
a teenager, I babysat. Many of my
girlfriends did the same; the guys cut grass and shoveled snow. We told people we were available to do the
work, decided the fee, did the work, collected payment, and figured out what to
do with all that money. We didn’t think
about it then, but these tasks are the essentials of being an entrepreneur. I’ve reviewed the same steps with my little
group who are involved in one of the largest youth business operations around –
my Girl Scout troop and their cookies.
Watching Seeds Grow is a guide about entrepreneurship for
young people written by son and father, Keith Greer and Peter Greer (President & CEO of HOPE International), which
offers simple, easy-to-understand lessons for youth about financial management.
The book opens with a few stories of youthful entrepreneurship,
starting with Keith’s (the son) haphazard beginning in business, selling beans
in a Rwandan market when he came across a few handfuls of leftover beans. The stories highlight product-related
businesses (beans, candles, tacos, donuts), but children should also be
reminded that service-related endeavors, such as tutoring, shoveling snow, and
painting friends’ nails, also require the same steps.
The second part of the book lists for parents ten steps of
entrepreneurship. Even for the child who
has no interest in running their own business, they are important lessons which
can be scaled to the appropriate age: understanding finance and the concepts of
hard work, ownership, investment, and generosity.
For instance, Step 2: Start a Savings Account. For the youngest child, the parent can begin
this lesson with a simple bank at home – a jar, a plastic piggy bank, an
envelope – and the discussion of putting away a little bit of whatever money
the child gets for birthdays or holidays or A’s on the report card to save for
the future. Perhaps start with a
tangible goal, like a particular toy or activity that’s relatively expensive,
but reasonable. As the child gets older,
you can discuss more about short-term (that new iPhone) and long-term (college)
savings goals. Additionally, as the
child gets older, parents can introduce them to the process of putting their
money in the bank and earning interest (even if it is just a little bit), and
then later the concept of investing (Greer’s Step 6).
An interesting parenting issue which Greer includes in the
discussion on teaching children the value of hard work, is the debate about
allowance. Should allowance be tied to
chores or other required activities or should it be given, no strings attached? Greer suggests that by relating allowance to
chores, parents teach children the concept of working for their money. Parents
might even offer the opportunity to do additional chores to make a few more
dollars.
The last section of the book is worksheets for the child who
is considering their own business, even as simple as their own lemonade
stand. Applying the ten steps of
entrepreneurship, the worksheets lead the child and parent through developing a
business concept, considering expenses and setting a price, planning marketing
and promotions, and selling the product.
Watching Seeds Grow
is an easy-to-read guide which breaks down information about financial
management into tangible, actionable steps for the young entrepreneur, the kid
working a part-time job, or the kid getting an allowance for taking out the trash.
 |
| Peter and Keith Greer, Authors of Watching Seeds Grow |
A complimentary copy
of Watching Seeds Grow was provided for review; all opinions and comments are my own.
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