Rychen P. has been learning about investing money... I bet you're not surprised considering Dad's employment. However this was all my idea! Rychen P. spends his money way too much buying toys. I have started talking about saving money and even investing to make more money. A lot of kids are taught to save money, even "for their mission" - but why let cash sit for 10-15 years?? teach the kids to buy and resell. Teach them skills they can use later in life if ever their hourly wage job doesn't work out...(or they end up being a housewife homeschooling mom.. just saying)
It started at a garage sale, I found some Steve Madden heels for $2. I knew I could get at least $10 out of them. I asked Rychen if he wanted to buy them and try it out but he said no. So I said, "Okay fine...but watch and learn." So I had him watch the process of taking pictures and doing an eBay listing. Then we watched the bids over the week and talked about it. They ended up selling for $8 and change BUT it was a buyer in Canada which is a super lucky thing because they pay the worldwide shipping rate when its actually much cheaper to ship to Canada. So with the excess shipping money, and after paying the eBay fees I ended up with $10.80 profit. Of course I rubbed this in Rychen P's face like you wouldn't believe!! So now he understands and is convinced he needs to do it too.
So after that when I was listing my usual stuff, I asked Rychen P if he would like to buy an item from me at cost, and he could do the listing and keep the profits. (This also means if the item doesn't make a profit, he will learn that side of it too and be left with that loss) He chose two items. One we did an auction and the other a buy-it-now, his choice. He set the BIN price at exactly what he would need to make a $6.75 profit because that minus tithing would be enough to buy an Angry Birds watch he has been eyeing at Walmart. (but I think he set his price too high... we will see... he is learning about waiting longer for a sale when price is high)
I presented Rychen P with another opportunity, to invest $100 and sell for $150. Sounds like a great deal but unfortunately he doesn't have a hundred dollars of course. So I was trying to show him that if you put off buying toys and let your capital build up, you can make better returns.
Today we bought a Dwight Shrute bobblehead, hand me down from one of the Bingham boys, $3.00 My first thought was to give it to Rychen for an "office" decoration (he no longer has an office, that's why its in quotes) but then we came home and found out its worth $10-20 so naturally we decided to sell it. (Sorry hon)
YES YOU WANT IT!!!!! :-)
1 comment:
I think this is a great idea. While I understood these similar ideas in tje book Rich Dad, Poor Dad, I didn't like the book because of the emphasis on making money without working and on capitalizing on other people's misfortunes, but what you are teaching Rychen is to me really honest entrepreneurial awareness and skills that I personally would love to have.
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