Over the past year, I have been able to spend more time with my family than ever before. For several months I conducted all of my work from my home office. Which allowed my 3 kids to see more of what I do during the day. This created interesting new opportunities to talk to them about work, business, and making money.
As an entrepreneur and business owner, I couldn’t resist talking to my kids about the challenges the pandemic was causing for businesses. And how toilet paper didn’t grow on trees. (They corrected me). But more importantly, I shared how much opportunity there was for businesses to innovate, solve new problems, and benefit from helping others.
As the stock market went into the toilet like a dooky, I shared that this was an amazing time to invest. My kids asked me if they could invest some of their money. So I helped them buy their first stock.
We also read books on money, investing, and wealth. I was surprised by how interested they were in the topic. And it gave me hope that someday they may be able to afford to put me in the good nursing home.
I was even more surprised when my youngest son Magnus came home one day and told me he wrote a story in school on how to get rich. I was curious to read it. I wanted to know what his 10-year old mind was thinking. When the paper finally came home I was tickled, like Elmo, to read what he wrote. I have reprinted the story here in its entirety with permission from Magnus.
How To Get Rich!
The first thing you need to know to be rich is the difference between what you need and what you want. Another way you can put this is you need to know the difference between an asset and a liability.
A asset is something that makes you money. A liability is something that wastes your money.
Some assets would be starting a business, buying stocks, set up a lemonade stand, or any stand, mow someone’s lawn or sell things.
But buying stock is the most efficient way to make money. Especially at a time like this when all the stocks are down.
If you don’t know what a stock is, it’s something you buy on any device and without doing anything you make money. You can also hold on to your stock and get paid four times a year.
My stock pays me 30 cents four times a year. When I bought the shares of my stock each one cost me $3.75. So in total I paid $37.50. And that stock has went up so high that last time I checked it was worth $120 if I sold it.
You can sell things, but I sometimes wouldn’t recommend it. What my Dad taught me is sell when it is high, buy when it is low.
A book I would recommend to get you started is called, Rich Dad. Poor Dad. That was the first book I read about how to get rich. So after reading this get up and ‘Act Now!’
-Magnus Albrecht 3-9-21
Teach others what you know. By sharing your knowledge you raise the intelligence and confidence of others. Talk to kids about important life lessons and skills, including financial literacy, when they are young. They are like sponges, primed for learning. Make it fun. Make it interesting. And you can make a positive, life-long impact. It may just be the most valuable investment you ever make.
*If you know someone who could benefit from this message please share it with them.