Can we teach our children that it is possible to earn money while not working very hard?
Exchanging our time for money is not the only way of making money. However this is what majority of people know and do.
Warren Buffet famously said "If you don't find a way to make money while you sleep, you will work until you die." Do you teach your child about passive income? I dare to ask and please forgive me, do you know what passive income is?
I had to explain this to some parents as they have never heard of passive income before. This is common. Most of us have never been taught about passive income by our parents or education system. I learned about it from Robert Kiyosaki, who is the author of two bestsellers Rich Dad, Poor Dad and Cashflow Quadrant.
So, what is passive income? Passive income is income that requires little to no effort to earn and maintain. An example would be investment income. If we invest our money smartly, it will work for us and produce income while we sleep. Another example is creating something to help people. Once it is created it will keep earning income with very little involvement or maintenance on our behalf, such as an audio book, an app, etc. Another example is income from a real estate property.
Warren Buffet famously said "If you don't find a way to make money while you sleep, you will work until you die."
I had a conversation about this with my kids. They love video games and they have spent their allowance money on different outfits/skins in the game, because they wanted to look different. I explained that even though the video game was free to join, they are spending money on an outfit/skin that someone created once by computer coding. The programmer that coded this outfit only did the work once, but keeps getting paid for it. That is a passive source of income.
Do you teach your kids about passive streams of income that generate money? If so, you can ask them to give you examples of how they can one day earn passive income.