Discover the best way to pass on a skill that will bless your children for the rest of their lives. Teach your kids to invest in real estate. Not by force, but with good, old fashioned, parenting that draws the next generation in by getting them to want to learn how to be real estate investors.
Once kids reach a certain age, they recognize that money has value. By explaining how real estate is a better place to spend their piggy bank savings than at the local Toys-R-Us, kids quickly find out that they can buy many more toys when they own rental property because it pays them money each month. This lesson is illustrated through my 6 year old daughter and her first rental property, Alexa's Beach Bungalow. May this inspire you to teach your kids to invest in real estate:
How to Teach Your Kids to Invest in Real Estate
I want to share with you a special message about how to teach your kids to invest in real estate. My daughter recently asked me how much money she had in her piggy bank, because she wanted to buy a new toy from the store. I took this as an opportunity to explain to her that investing the money could buy a lot more toys. Her investments could pay her back the money in her piggy bank if she purchased assets.
My daughter already knew that an asset was something that puts money back in your pocket, so I further explained that Real estate is an asset. I had recently purchased and renovated a house that had a small bungalow on the property that I had considered making into a vacation rental. I was in the process of drawing up the plans to turn it into a one bedroom vacation rental when I had this conversation with my daughter.
Her First Investment
Alexa decided that she wanted to turn her piggy bank into real estate so I decided to take her through the process of real estate investing. We strategized what needed to be done with the property, what the contractor needed to do, as well as the way a closing waits. I also taught her about property management and Alexa became very excited about the entire process.
Make it Fun
The goal should be for the child to WANT to go through the process. My daughter wanted to learn more about how much money she had so she could purchase more toys. I simply mentioned the idea about investing and it was her idea to actually participate in real estate investing. That is the key with kids, they have to want to do it.
The results turned out fantastic as you can see in the video above. Alexa participated and learned every step of the year and it was a truly bonding experience. I am proud to announce that her bungalow is up and running, so if you are interested in staying please visit alexasbeachbungalow.com .