Usually, parents care about their children too much and try to make their life happy by giving everything they can. However, when kids grow up, the problem of teaching them responsibility arises, especially when it comes to money management. That’s why you should take the time to show teens how to manage money properly using different methods. Of course, own example is the best way to teach them to spend money responsibly. Although, we suggest you trying the Cashflow board game. It’s a great entertaining activity that allows you to develop money management skills and shows that financial freedom is a real thing!
What Is Cashflow?
Cashflow is a highly motivational financial board game that educates you on how to do accounts, make investments, and manage funds in general. The process of learning is really fun, as you play and compete with your family or friends at the same time. The game was coined by Robert Kiyosaki, the successful investor and famous author of Rich Dad Poor Dad, which became the best-selling financial guide of all time, and his wife Kim Kiyosaki, the author of It’s Rising Time.
The game simulates real-life situations and lets you test different strategies without putting your money at risk. You learn priceless lessons and get valuable experience while trying to obtain financial freedom by making the money work for you. It basically teaches you how to get out of the Rat Race and onto the Fast Track, which leads you to a successful future and stable passive income.
You may ask: what is so special about Cashflow? The answer is simple – it not only helps you figure out a proper way of making investment and handling other assets but gives you an opportunity to test yourself in difficult financial situations. So, don’t be afraid to turn upside down your strategy and try investing aggressively, if you always save money. If you prefer risking strategies, become a steady saver. That is just a game but it may bring some fruits in real life when applied reasonably.
Using Cashflow to Teach Money Management
Children love playing games and no other way than board games can be better for educational purposes. Besides, that can become a wonderful family activity for Sunday evening. Gather your kids and start an exciting journey in the financial world. Show them that nothing is impossible and persistent work in combination with an active mind can make anyone successful.
A great advantage of this board game is that you have to get used to real terminology. Don’t worry, there is a special glossary for that purpose. Be a role model for your children by showing your knowledge in the field and help them figure out all unknown terms. Believe us, that will earn you extra points for the best parent award.
Cashflow imitates real-life accurately and makes you keep track of all the details such as salary, loans, savings, and mortgage either in written form or with the help of a mobile app. Each method has its advantages. For example, you know how teens love technologies, so they would be more willing to play the game. On the other hand, younger kids, who have issues with mathematics, may benefit largely from doing everything manually.
Some Playing Tips
First of all, start out with a simple profession, because it helps you get out of the rate race faster. For example, you are a taxi driver with a low income, meaning your expenses will also be minimal and guarantee you a positive cashflow in the first place. In addition, try to choose small deals over big ones in the beginning. Even if they give you less profit, you will have more free money to grasp a huge deal when it comes.
Another advice is that you should avoid borrowing money under any circumstances. Yes, even when a great deal comes, you should stay away, if it requires you to loan more money for it. The bottom line is that monthly payments for such loans are high, so you will end up with negative cashflow eventually. Be patient and wait for a good opportunity rather than settle for average deals. What is a good opportunity? It’s a deal that requires little or no downpayment but produces positive cashflow in the form of return on investments. Skip the deal, if you don’t see all the elements of a good opportunity.
Once you spotted a good deal and invested your money in it, you should take care of insurance. All your funds may vanish into thin air if you don’t protect them properly. While playing the game, you will see that the net worth is less important than cashflow. So, having positive cashflow from passive income should be your main goal.
A World of Opportunity
Cashflow helps you and your children develop a new understanding of money and see investment opportunities in real life. Fear and doubt slowly go away, and good opportunities are finally seen on the horizon. The game appeared to be quite useful for many people, as they were able to change their lives and finally see that the world is full of opportunities. Each new game teaches kids new skills, opens their minds, and drills the lessons of cashflow. Over time, they will memorize such lessons, which can influence their worldview and thinking processes.
Play together and make sure your kids understand that investing is fun and not risky at all when performed accurately. Reasonable investment strategy may set them free from the everyday struggle of earning a living and worrying about money.
Have a habit of playing Cashflow with your family on weekends and show them that managing personal funds may be a pleasant thing to do. You can even treat the winner with real dollars at the end of each game. That will motivate your children to learn faster and take each situation seriously.