Money Lessons for Kids | enterpriseforkids.com

Enterprising Dinner Table Conversations

Enterprise For KidsTeam Money Lessons for Kids, Raising Entrepreneurial Kids September 12, 2020April 28, 2026crypto for kids, Ecommerce for kids, Enterprise for Kids, enterprising kids, Howitt family, Instagram money making ideas, making money with instagram 0 Comment

What do you think the Howitt’s talk about when around the dinner table?

It always begins with each member of the family sharing a gratitude, then usually the events of the day are told and achievements celebrated; however, what quite often happens next is that topics of business, enterprise, finance and investing govern the conversation.

Flynn Howitt taking his photography to another level. Check out his facebook blog and see what he can do! — Film making and photography have been the key to Flynn’s success in building his social media following

Lately, the topics of interest have been Instagram money making strategies, crypto assets and eCommerce.

Let’s look at these individually and look at how these present opportunities for kids to be entrepreneurial…

Instagram

Our older children, Kaitlin (now 24), Jai (now 22), Flynn (now 20) and Amber (now 18) all discovered social media when they were in their mid-teens. It started with facebook, then Instagram and now Tic Toc and Snap Chat. They discovered how to grow a true following of people by using regular posts of quality content about their lives. It helped living on a paradise Tropical Island atoll in the middle of the Indian Ocean- photos and videos here always look fabulous!

Kaitlin Howitt co-creating inspirational workshops with like minded people. Enterprising teen to entrepreneur. — Creating workshops that inspire has become Kaitlin passion.

As their following grew, so did their opportunities for enterprise. It began with something called ‘shoutouts’. Here other people/companies would pay cash for the enterprising kids to mention them in a post. This helps these people/companies grow their followers or promote their wares… and my kids were happy for the cash!

Next came real products. Companies would send them clothing, watches, surf gear and jewellery to wear and share on their Instagram accounts. The kids would get to keep the gear!

Following that, companies would not only send the gear, but also pay for the promotions. My enterprising teens were stoked with these opportunities!

As time went by and their social media followings grew and grew and their creative juices began to flow, real, much larger opportunities presented themselves.

Humble beginnings for Jai where he learnt to navigate the world of entrepreneurialism from his shared bedroom. — Jai building his enterprise from his bedroom a few years ago.

Handing over the keys to his new warehouse where he creates media content for international clients.

Kaitlin, along with Tully her husband, have built multiple streams of income using social media. Businesses that include coaching, MLM, and online courses. We’ll share more about this in a later blog post.

It’s taken Jai a few years, but now he has a thriving business where he creates content for international clients for their social media marketing. He uses his social influence through Instagram, Tic Toc and Facebook to generate leads for his very successful enterprise.

Crypto

You would have all heard about Bitcoin, but I’d say not many of people fully understand what it actually is. In a nutshell, Bitcoin is a block chain digital software developed in 2008 to be a currency. It is limited in supply, therefore very rare like gold. Other than its rarity, people like it for many reasons:

Decentralised, thus not controlled by one bank (centralised).
Cheap and quick to buy, sell and send.
Easy to store and secure.
A hedge against other asset classes.
Block chain technology is at its infancy and likely to become huge.
It is borderless. Can be traded and used in all countries.
Used as a currency.

There are thousands of different crypto currencies, although Bitcoin is by far the largest by market cap. Many of the crypto coins are based on block chain digital technologies (programs) that have real life applications. They are part of real bricks and mortar businesses. For example, Power Ledger is a renewable energy technology allowing people who have solar panels on their homes to be able to sell their excess energy to other people for a premium, rather than selling back to the to the Energy company for very pittance. People can buy the Power Ledger Coin. If the company continues to grow and expand and make profits, it will push the value of the coin up.

Block chain technology (crypto) is very new, and people are only just beginning to realise its potential. The infrastructure to utilise the technology is still being put into place. As mainstream companies, banks, fund managers and investors see the real benefits of block chain technology and recognise crypto currencies as being a strong asset class, the value of these rare assets will continue to rise.

The Howitt’s have investigated several crypto coins and have bought into them, with the intention to hold them for the long term. We believe it is a strong hedge against other asset classes, such as the stock market. We also believe crypto to have tremendous potential.

eCommerce

As a family, we are all studying an eCommerce program called Web Dev. We are learning to build and monetise websites. We are also learning to identify value in websites for sale, buy them and then either renovate and flip them, or hold them for cash flow.

Websites can be monetised in many ways. The more common ways are through affiliating with companies selling real products and services (eg Amazon) or with advertising (AdSense). However; there are many other ways- like creating directory sites or selling digital products.

Building a website yourself from scratch costs very little, so anybody can afford to do so. Perfect for enterprising kids or teens. Buying readymade websites, already making a consistent monthly income can be an excellent investment, arguably better than any other asset class available today. For example, website that makes a $1000 a month can be bought for about $20 000. After costs, this asset will return in excess of 40% p/a. In addition, if you have the skills to improve the website and its income, then the asset will be worth more. Now, where else can you get a 40%+ return on an investment?

Currently, the younger Howitt kids are building websites. Amber has hers up and running. Go check it out www.sustainableperiodproducts.com. Chayse recently bought www.babyclient.com , which he is currently renovating. The other kids’ sites are a work in progress. We’ll keep you posted!

Our dinner table conversations may be a little different to the average family. We gain inspiration from one another through these conversations and through our mentors who support us on our entrepreneurial journeys. We are building skills, gaining knowledge, creating assets and most of all strengthening a mindset for enterprise.

Michael Clouse… How to Balance Money and Time

Enterprise For KidsTeam Mindset, Confidence & Leadership, Money Lessons for Kids March 20, 2013April 28, 2026balance money and time, Isagenix, isagenix convention, isagenix trainer, michael clouse, michael clouse isagenix, mlm marketing, network marketing, network marketing success principles 2 Comments

“Most people are etching out a living and only a handful of people are designing a life”

This is such a powerful statement and one we often don’t take the time to consider that carefully. After many years of etching out a living, we are finally ready to design a life for ourselves and our children. And when we can do it, our children have that example as another way of looking at life and making informed choices about their own pathways in life.

Michael Clouse is an inspiration!

We were fortunate to hear Michael speak at the annual Isagenix Convention on the Gold Coast recently. Michael gave an awesome talk about Leadership.

Before I share his message, I’ll firstly introduce this amazing and very entertaining man.

Michael Clouse is a professional Network Marketer. He is recognised as one of the top twenty Network Marketing Trainers in the world today. His background spans over 25 years in the industry. He is an Author, having written several terrific books. His book “Future Choice” shows readers why Network Marketing may be their best career move (encourage your teenagers to read this one before they head off to Uni!). Michael came from a disadvantaged home, yet has managed to become super successful.

Early in his career, Michael studied the most successful network marketers around the world. He then modelled himself upon their habits and mindsets.

Michael is “time rich” and “money rich”. He now devotes 300 days a year to himself and his family and for 65 days to work and giving back to society.

Michael explains that we all need time and money, and we need these two things in balance. What most people do is they give up time in order to get money. Throughout their lives they work hard in a job or small business, to bring home the bacon. As a result they are very time poor although they may have increasing money. It is only later in life that they increase their time; however, their income drops.

People will argue that they have little choice. They have families to raise, mortgages to pay and expenses. They need to work! In our world, this may be true….but not so in an Entrepreneur’s world.

How is it that many wealthy people have managed to attain this balance? Well, we need to look at how they’ve created “time freedom?”

Wealthy people can buy time. This can include getting the house cleaned, or paying someone to do the accounts, or getting a wonderful cook in……….all to allow them to spend time with the ones they love and share experiences with the ones they love. You get the picture.

It’s quite amazing how many of the wealthy come from humble and often disadvantaged beginnings. Michael Clouse was one of those people! And he, along with others like him had to start somewhere.

There is a solution to this time-money balance…

According to Michael, the solution is Networking Marketing! In fact, many wealthy celebrities agree that Network Marketing is a terrific vehicle for growing a big business on the back of an established Global Company. Robert Kiyosaki, Donald Trump and Warren Buffett are three mega tycoons who talk about network marketing being a terrific vehicle for wealth creation without much outlay. It’s accessible to everyone.

Michael says if you do it right then most people can grow a big business and work less and less time.

“Success leaves clues!” Study success and you will see the game principles. Here is a selection of success principles that Michael understands and uses in his own life. He studied successful people to learn their habits…

Network Marketing Success Principles

Get into the game and then stay in the game.

Figure out what’s in it for you and then commit! You will meet challenges and have to overcome barriers. Being fully committed will get you through.

Focus on the fundamentals.

With a networking business these are:

Connecting with people.

Presenting to people.

When they say yes, take the time to teach them how to run their business.

Learn Network Marketing From the Expert. Click Image to Buy Michael Clouse's Book. — Learn Why Network Marketing May Be Your Best Career Move. Click the Image to Buy Michael Clouse’s Awesome Book!

“Keep the Main Thing the Main Thing!”

Stick to the system that works. That is
Tell your story! Ask yourself today, “How many times am I going to tell my story?”

Use the tools. The company provides all the tools. So use them.

Have an interest in “being better tomorrow than you were yesterday.”

Recognition

Be sincere and recognise every accomplishment publically and privately. Recognise yourself, the company and your team.

Click image to watch Lynn explain the Isagenix Compensation Plan. — Lynn Hagedornyour team and the company.

Praise- “Babies cry for it and men die from it!”

Michael Clouse teaches and uses these simple principles. He himself has built million dollar networking businesses and he has personally mentored people to be networking Millionaires.

Take the amazing Lynn Hagedorn (Isagenix), who went from zero to millionaire in only fourteen months!

This weekend we will again be attending Michael Clouse’s training in Perth. We can’t wait to learn more from this great leader and hilarious speaker!

Kaitlin our eldest daughter, is coming along too! We figure that it is a tremendous opportunity for her to learn about success from a successful person. Network Marketing is a career option worth knowing about.

It simply broadens the choices a young person has.

If you are interested in coming along as well, contact us and we will get you booked in. You don’t need to be an Isagenix Business Builder to see Michael Clouse Speak. In fact, it is open to anyone.

Curious about Isagenix? Watch this video…

Our Money Mastery Mentoring Program Reviewed

Enterprise For KidsTeam Mindset, Confidence & Leadership, Money Lessons for Kids February 15, 2013April 28, 2026dr paul counsel, financial freedom, mentoring program, mentoring program review, mindset, Money Mastery, money mastery mentoring program, money mastery program, Paul Counsel, subconscious, think big 4 Comments

Have you ever had that deep inner desire to want to change the world, or to be a person of significance who has made a real difference to others; yet frustrated, at times, that all your time and energy is channeled into your nine to five job… the job that you need in order to earn the dollars to simply exist and meet the costs of living and raising a family?

Have you wondered what you could do if you had the resources of time, knowledge and money to be that difference?

Children grow up full of potential and excited about their new life and what they wish to accomplish with it. Ideally, we as their parents, want to be their inspiration and show by example that they too can achieve whatever they put their minds to.

Do you ever wonder what worldly achievements and contributions your children will end up doing/being?

Cath and I have huge dreams! We are aiming for the stars! We aspire to achieve, experience and contribute in a grand way. We plan to lead our own children to ‘Think Big’, to experience, and to make a significant difference to the lives of others whilst here on Earth.

This is our “Why” and it is why we began the journey seeking an understanding and the mindset shifts required to achieve Financial Freedom.

This past year has been, by far, the biggest year for us in terms of shift in a mindset around success. Last year, in March, we embarked on a year long Money Mastery Mentoring Program, lead by Dr Paul Counsel.

Paul certainly opened our eyes to possibility, has given us the tools to make the inner shifts required to achieve financial freedom; and he has opened our subconscious minds, making the adjustments necessary, that have now put us on the path to achieving our goals.

Our year has literally been like a roller-coaster ride. Many ups and downs and bumps along the way… and it has absolutely been full on with the logistics of sorting kids and maintaining momentum whilst running very busy lives. Without our beautiful friends and family supporting us throughout the year, I’m certain we would not have made it this far.

The Money Mastery program is largely about achieving Financial Freedom; however, it has also been a self discovery mentoring program where we’ve revealed so much about our selves; our deep rooted values; our subconscious thinking and conditioning; and our future realities.

Sadly tomorrow we head up to Perth for our final weekend with Paul and our Money Mastery group of friends from 2012. We haven’t decided if we’ll continue as a new program starts in March 2013. There are many things to weigh up, but one thing for sure is our future is opening up wide before us.

Below is a link that will take visitors to our Full Review of our Money Mastery Mentoring Program. We have reviewed our year with Paul Counsel, shared in depth why we chose to take on such a mentoring program and some of the massive distinctions that have changed our lives forever!

We invite you to read about our journey and experiences (and pass it on to interested friends).

We’re hopeful when you read it, that you gain inspiration and perhaps some real insight into your own lives. We have reflected on some of the reasons why things happen the way they do… and why they don’t!

So go make yourself a cuppa, sit down in a comfy chair and take the time to have a read of our Money Mastery Mentoring Program Review… Oh! …and leave us a comment please!

Here is the link…. Money Mastery Mentoring Program Reviewed

Burekup Country Club Heats up! … a Lesson in Marketing!

Enterprise For KidsTeam Family Enterprise Stories, Money Lessons for Kids January 23, 2013April 28, 2026amber howitt, Burekup Australia day Fare, burekup country club, Chayse Howitt, Enterprise for Kids, enterprising kids, entrepreneurial kids, Flynn Howitt, Isagenix, Jai Howitt, kit howitt, lesson in marketing, marketing, marketing a product, Money Mastery, pain island to pleasure island, Paul Counsel, self effacacy 12 Comments

Last week there was fear and excitement in the small township of Burekup! The Burekup Country Club was on FIRE!!… and the Burekup Australia Day Fair may be cancelled!

Once a year for “Australia Day” Burekup hosts a fun family fare. Everyone in town usually comes along, together with people from the surrounding areas.

This year it has had a little more publicity than normal. The local Burekup Country Club, who are the organisers of the event, had a fire that threatened to burn down the old wooden club house and town hall.

Thankfully the fire crew were able to put it out before it caused too much damage or anyone was hurt!

The newspaper heard about the near disaster and ran a story in the local rag on the fire that almost sabotaged the Burekup Australia Day Fair! The story stimulated fear and interest, which in turn was excellent publicity for the Burekup Fair!

Marketing a product, service or brand can be very challenging, especially if you are not savvy with marketing (like me!). Having very good marketing will sell even a poor product, yet having a very good product won’t sell easily unless you have it well marketed.

Our enterprising kids have all been challenged with marketing their products and brands. Cathy and I have also been challenged with marketing when promoting events or selling our products.

Only last weekend during our Money Mastery Program, our mentor Paul Counsel, shared some excellent insights into how the human brain works and how to target marketing. Some of his suggestions are outlined a little later in this article.

But firstly I’ll share with you the lead up to the Burekup Australia Day Fair and how our family have been crazily preparing for it. We see it as a terrific opportunity to market our brand, as well as the products and services that we have for offer.

Flynn Howitt and his honey pots — Flynn showing his honey pots.

The Howitt Family booked two stalls. One for all our enterprising kids to display and sell their products, and one for ourselves to provide people information about the awesome benefits of nutritional cleansing using the Isagenix system (our home business). Promoting our Enterprise For Kids brand and our Enterprise for Kids blog is also one of our aims!

Kit Howitt and Chayse Howitt — Kit and Chayse sorting lollies.

The Candy Man Enterprise — Lolly bags all set to be sold!

Putting ourselves “out there” in our small community for the first time is a little confronting. Some people know what we’ve been up to, but for many it will be a surprise. Despite the challenge, we do see this as a chance to practice in readiness for bigger and better things to come!

So what products and services will our kids be promoting and selling?

Kit and Chayse will be running their Lolly Bag business. They have bought, sorted and bagged lollies to sell. Chayse also has a small fish tank to sell. He has bred colourful guppies which he will sell with the tank.

Amber Howitt from Enterprise For Kids potting up succulents to sell at the Burekup Australia Day fair. — Amber watering her succulents ready to be sold.

Amber Howitt with a cacti for sale — Amber showing her product.

Amber has been busy all year collecting succulents (cacti like plants) from people’s gardens. She has artistically potted these up into all kinds of unusual pots such as large sea shells, kettles and ceramic plant pots.

She and Flynn also plan to sell aquarium fish that they have bred. They have salvaged and cleaned large glass wine flagons which make terrific fish bowls. They will market their brand “Fish in a Bottle”.

Amber will also sell selected items from her “New from Old” business and she is putting together a Lucky Dip!

Flynn will be selling raw unprocessed honey. His brand is “Howitt’s Honey” and he has a brand new fresh batch to sell! Flynn also bought an excellent set of golf clubs for a very good price, which he intends to sell at the fair.

Jai Howitt and his Icey pole product to be sold at the Burekup Australia Day Fair. — Jai showing his Icey poles.

Jai will be promoting his “Hire a Teenager” service. He already has clients in Burekup who hire him to do work on their properties such as mowing and window cleaning. Jai has also prepared a batch of frozen juice ice-cups on a stick. He has come up with some creative ideas to add value to his product. Jai is also considering promoting “Rent Exercise Equipment”. This business idea is in its infancy and may not quite be ready to run.

Kaitlin Howitt. Eye heART — Kaitlin's Eye heART.

Lastly Kaitlin (Akaisha is a little young to have an enterprise!) will be promoting her new brand “Eye heART”. Being the creative one in the family, she will sell her skills by painting the eye of clients from a photograph. Around the eye she will also paint three things dear to them.

This opportunity for us all to market our brands, services and products will help the Howitt Clan develop self efficacy around being entrepreneurial.

So what does our mentor, Paul Counsel, have to say about marketing?

Well he has a lot more to say than the few little suggestions I have outlined below!

Firstly, you need to show your prospective customer how he/she will go from “Pain Island” to “Pleasure Island” if they buy your product or service. That is, you need to stimulate pain and promise pleasure. The best way to do this is with a before and after picture that is in black and white contrast. For example showing a before and after photo of someone using a product for weight-loss, or a before and after picture of someone receiving treatment for hair loss.

Paul Counsel. Pain Island to Pleasure Island. Understanding Marketing. — Just need the right ship to get them there!

Paul explains that a woman’s brain differs from a man’s brain and what stimulates pain for a man is different to that for a woman. The pre cognitive driver for women is “fear of abandonment” whilst the pre-cognitive driver for men is “fear of servitude” (that is being lower on the totem pole where women won’t choose them).

95% of decisions are made pre-cognitively using the Primal Brain. As a marketer you need to stimulate it into paying attention and speak to it in its own language. Some other ways to stimulate the Primal Brain are…

Targeting the emotions of fear, pleasure and pain and then offer a solution that is real and tangible. Or offer a visual novelty such as Kaitlin’s “Eye heART”, Jai’s fancy icy-poles or Flynn and Amber’s “Fish in a Bottle”.

Now there is so much more that could be said about marketing. Paul will be running a weekend marketing course in Perth on the 23rd and 24th of February if you are interested in really delving into the world of marketing. What he teaches will certainly benefit anyone with something to market..

Luckily the Fire didn’t burn down the Club and spoil the Burekup Australia Day Fair. But boy was it an excellent way to wake up the Primal Brain by stimulating it with the pain of the fare being cancelled due to fire. This excellent marketing has created plenty of publicity for the event!

In our next blog we will likely have some photos and share our Burekup Australia Day Fair experiences. Hope to see some of you there!

We would love to hear from our readers, so please share your thoughts in the comment box below and if you like our Enterprise For Kids blog we would love for you to pass it around to your friends.

Network Marketing… A Brilliant Wealth Creation Vehicle!

Enterprise For KidsTeam Mindset, Confidence & Leadership, Money Lessons for Kids October 26, 2012April 28, 2026binary compensation plan, break through training, compensation plan, David Wood, david wood's training, donald trump, enterprising business, Isagenix, make-a-wish, network marketing, network marketing businesses, nutritional cleansing program, proven system, residual income, Robert Kiyosaki, warren buffett, wealth creation vehicle 3 Comments

In our last article we shared our awesome, mind blowing experience at David Wood’s Break Through Training. Our article talked about David’s teaching of how to be tremendously successful and happy!

He teaches about attitude, mindset and overcoming fear, but he also explains that you need a vehicle (preferably vehicles) to build wealth. David Wood’s favourite wealth creation vehicle is Network Marketing! He has managed to generate tremendous wealth from Network Marketing, and although he has built several million-dollar Network Marketing businesses, today he is committed to the billion dollar company, Isagenix! David Wood is a professional Network Marketer and an exceptional trainer and mentor.

At the three day training seminar we became friends with many people with awesome energy! As it was primarily an Isagenix training, everyone there were Isagenix business builders. This common ground gave us all plenty to talk about. We had this tremendous belief in the company and the quality products that it has developed and won national awards for. We also saw the tremendous opportunity Isagenix offers for those who want optimal health and those who choose to use it as a vehicle to build wealth.

Network marketing is the business of the future! People referring people to use the products that they themselves are using and believe have excellent benefit. There are no shareholders expecting dividends, middle man taking his cut, or expense through having to run a down town shop. You don’t need to employ anyone, pay for stock or maintain complicated book keeping. Network marketing requires zero start up capital, no franchise fees, and has a unique business structure whereby you help others to build their businesses and become successful, and by doing so it actually builds your own!

Now isn’t that awesome… all you need to become successful is to help your friends become successful!

David Wood explains that finding out about people and what is important to them and how you can be of help to them is the key to being successful. Connecting with people on a genuine and personal level cannot be underestimated.

Network marketing provides a proven system that works, so stick to it and use the tools the system provides. More of David Wood’s wise words…

“Don’t be a tool, use the tools!”… and… “Systems are duplicable, people are not!”

He points out that it is our job to be great leaders… and great leaders aspire to inspire! If people are inspired by you, they will be drawn to your energy.

Network Marketing doesn’t require degrees, or fancy titles, or real expertise… anyone can get involved. What’s more, people can choose how much they want from it, whether it be simply using the products, paying off their car payments or weekly bills, to becoming financially free! There is no cap on income, unlike having a job.

Once you build your business up it will pay a healthy residual income for years to come without requiring giving up time. Really… it is a perfect opportunity for those who are ready for it!

At David Wood’s training there were plenty of everyday people achieving success, with some of them having built profitable businesses in only a matter of a few short months. The sky’s the limit, but it requires dedication, honesty, perseverance and hard work, just like any business. It’s just that with network marketing, eventually the residual income will allow freedom of time for you to do the things you want to do. If you are lucky enough to find a product that you believe in and can see make a difference in the lives of everyday people, then it is also a career you will love!

Network Marketing is also an excellent wealth creation vehicle for young people leaving school. Rather than getting a job, why not encourage your teenager to become an entrepreneur and build a successful business. By the time their peers have completed their university degrees and entered the workplace with a hex debt, a young network marketer could be making a six figure residual income. It is something we will look at for our own kids.

Robert Kiyosaki and Donald trump and Network Marketing

Robert Kiyosaki, Bill Gates and Donald Trump all describe Network Marketing as an excellent type of business to be involved in.

Warren Buffett himself invests in three of the top world network marketing companies.

Points to remember when choosing a network company as your wealth creation vehicle…

1. The product must be second to none. You must use it, love it and have had a great result from it, or there is no point trying to make a business.

2. Do your homework on the company. What is it’s annual growth? Who are the leaders in the company, what is their track record and what is their vision for the business?

3. What is the company’s compensation plan? Does it help all of it’s members and give opportunities to all, no matter where they are in the network? There are many differing plans, some much better than others. The “Binary Compensation Plan” is one worth considering.

4. Does the company have a bigger vision to help make a difference in the world. Do they follow through with what they truly believe in and direct some of their profits to the charities they support to make a difference on a global level?

5. Are the products sustainable and likely to be around in the future? Are they well recognised and credible, and is the company continuously developing and improving their products?

May be a book worth reading! To finish off we’ll share some of David Woods quotes… “We don’t stop playing because we turn old, but turn old because we stop playing!” “How I do anything is how I do everything!” “Take 100% responsibility for everything in my life and for everything not in my life.” In our next blog we get back to our own kids journey with becoming entrepreneurs. We will take another look at Kit and Chayse and see how they have grown their enterprising business and helped a charity along the way! Links… Isagenix products. Isagenix entrepreneurs. Isagenix compensation plan. Our Isagenix Business website. Isagenix in the News.

Plan to Buy Gold and Silver!

Enterprise For KidsTeam Money Lessons for Kids October 11, 2012April 28, 2026andrew smith, asset that our kids could buy, assets and liabilities, aussie 2012 gold coin, aussie dollar, buying gold and silver, David Wood, Enterprise for Kids, failing to plan is planning to fail, first gold coin, gold, gold and silver, hyperinflation, Indian Bridal Jewellery, kiyosaki, long term asset investment, perth mint, planning their enterprise, platinum, silver 3 Comments

“Failing to plan is planning to fail!” Robert Kiyosaki

Most people have a plan on how to make their money, but they do not have a plan on what to do with their money when they make it. Kiyosaki points out that often these are the same people who will have a problem with not having enough money.

He also explains that if you have a good plan before you earn it, then your problem will be having too much money! …Now I like that problem!

Kids need an education on how to plan what to do with their money when they earn it.

Kiyosaki goes on to say,

“Poor people don’t have a plan. All they do is earn more money and spend it on bigger liabilities that take more money from their pockets and then they have to earn even more money. Therefore, despite what they earn, they are always short of money.”

The solution is to plan to spend earned money on Assets (things that appreciate over time) to make passive income. Don’t buy liabilities (things that depreciate and lose money over time) with earned income. Then use some of your passive income from the assets you own to buy the liabilities you want.

Our own kids are all busy planning their enterprises and are successfully making themselves money. They have plans to buy liabilities such as nerf guns, Ipods, computers and so forth, but no plan to buy assets. So I thought it was time to have a conversation with my kids about having a plan to buy assets.

We wrote an article about our conversations with the kids about Assets and Liabilities. Here is a link to that article.

Once “Assets” as opposed to “Liabilities” was explained to the kids they were then able to make a plan to buy assets. In the above mentioned article I gave several suggestions of Assets that kids could buy. I would like to elaborate further on why Gold and Silver is an excellent asset that our kids could buy with their earned money.

Subscribers to this blog would have seen the promotion of a Gold and Silver Seminar that we hosted here in Bunbury a few weeks back. Our presenter, Andrew Smith, a mining engineer, investor and businessman, has been intimately involved with the world of Gold and Silver mining for many years. He gave many excellent reasons why Gold and Silver is well worth considering as a long term asset investment. I’ll now explain some of those reasons.

Gold and Silver is recognised world wide as money and can be used to buy products and services just as fiat currencies can. The first gold coin was around in 600BC in Lydia, Asia. The difference being, currencies devalue whilst gold and silver hold their value.

Andrew invented the “Meat Pie Indicator” to show why this is!

aussie gold coin — Aussie Gold 2012 Coin

Let’s see if you can get your head around this explanation of how the Meat Pie Indicator works!!

Back in 1970 you could buy a meat pie for 40c and today the same pie would cost you $4.50. Andrew explains that this indicator shows the Aussie dollar devaluing 350% over a period of 42 years (ie you need 350% more cash to buy the same pie).

What is interesting, is that if you had bought the meat pie with 40c worth of silver back in 1970 when silver was less than $2 an ounce, you would have needed one fifth of an ounce. Yet if you bought the same meat pie today using silver (at $35 an ounce) you would only require about one eighth of an ounce of silver. Silver has increased in value by more than 400% during the same period!
This is a terrific example of the Dollar devaluing due to inflation, whilst Silver (& Gold) gains in value! And no it isn’t just the Aussie Dollar that has devalued! All world currencies have! What’s worse, is that hyperinflation in certain countries have caused their currency to become absolutely worthless. Take Zimbabwe for example. Interestingly though, the people of Zimbabwe are now using gold to buy and sell goods.

If you are interested in understanding more about Hyperinflation and how it could even happen to us down under, then have a look at these videos…
Hyperinflation Nation Part 1

Hyperinflation Nation Part 2

Hyperinflation Nation Part 3

“Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hit man” Ronald Reagan 1980

As you can see, having precious metals is a hedge against inflation and devaluing currencies. Although this in its self is a very good reason to own gold and silver, there are also many more reasons.

Reserve Banks around the world are injecting more and more money into their economies. This money is being created out of thin air! Every time this occurs it dilutes the money supply and makes it more expensive to buy goods and services. It creates inflation, which in turn reduces the buying power of the dollar. What also happens is that more money is needed to buy gold and silver!

It is estimated that there is 80,000 tons of gold in the ground (in the World) and we currently mine 2500 tons a year. At the current rate of mining there is less than 30 years of gold left in the ground. Silver is running out even faster with only 20 years of silver mining remaining. I guess you can see that with gold and silver running out and the ever growing world requiring more and more of it, then you would expect their values to increase.

What’s more, the Indians and Chinese love buying gold and silver, and as they become wealthier, so will their thirst for these metals. There are 2.6 billion Chinese and Indians. Much of the gold is bought as jewellery during the Hindu wedding season and during the Chinese New Year celebrations. It is estimated that there is 18,000 tons of gold jewellery present in India alone today. That is a huge amount considering that 165,000 tons have been mined world wide to date!

The commercial demand for silver in manufacturing products such as mobile phones, solar panels and mirrors means that the silver used with producing such products is not stored, but used up. This demand has been increasing year by year.

Since 2001 the USD gold price has increased by 500%.

Gold Chart — Gold from $300/ounce in 2001 to $1750 today

Silver Chart — Silver from $4 an ounce in 2001 to $34 today

As you can see fundamentally owning gold and silver for the longer term looks to be very promising. So why not introduce your kids to buying this asset class with some of their earned money, or rather than giving them cash for birthday presents, give them silver!

It is very easy to do. The Perth Mint buys and sells gold, silver and platinum. All you need to do is walk in and buy it. Gold at $1750/ounce may be out of their league, but silver at $34/ounce is manageable. They can buy coins or bullion. Bullion will be better value for money, as coins are looked upon as collectables and have an additional cost for minting which greatly inflates the cost to buy the silver.

Our kids now have new goals. There goals are broken up into three parts and they have a plan for each. A part for buying liabilities, a part for buying assets and a part for tithing!

This website is worth a look at if you are keen to further your education on Gold and Silver.

Money Box save spend and donate — $20 Piggy Bank! Click Picture

Cathy and I and a group of our friends are very excited to be heading up to Perth to learn from another Great Master. His name is David Wood and his event will be awesome! So I guess our next blog article will be about what we learn from him!

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