As those that invest in real estate already know, purchasing properties can be a game changing investment. Not only can it help to secure passive income, it can give you a solid piece of collateral that can appreciate and eventually, return far more than what you originally paid. And especially if real estate is working for you, the idea of teaching your children about the value of investing can often be a major goal. But real estate is a massive topic, with a plethora of nuances and intricacies.that can range from common sense to ultra-complicated, depending on the scenario. So, when do you start teaching your children about the value of real estate? Where do you start? And more than that, how do you start?
Here’s our take on ways to introduce your children to real estate so that they’re familiar with the concept, and so you’re planting the seeds of a young investor early on.
Teach them to save
You can’t invest in properties if you don’t have the money to invest in the first place. So, first thing’s first. Teach your children the value of saving and help them to integrate important financial habits into their lives early. This can be accomplished in a number of different ways, and obviously depends on the age and comprehension level of your child. But, a great way to start this is with their allowance. Teach them early on that they should save a certain percent, take a percentage out for “play”, and should put another portion away for “bills” or “investments.” This can be a great first step towards teaching complicated concepts early.
Find a fun book
When it comes to teaching littles, books can be a perfect way of sharing important concepts in an easy to understand way. Real estate is no exception. In fact, Amazon has a ton of books on real estate that can help your child to grasp basic real estate ideas, and get them thinking about the process early on. A few examples?
Baby’s First Real Estate Book - This book focuses on teaching kids their ABC’s while also focusing on real estate terms and definitions.
Riley the Real Estate Investor - The story follow Riley, a former real estate agent who goes on to be the most successful woman real estate investor in the United States.
The ABCs of Finance - While not directly real estate, this book will introduce children to the basic concepts of saving and finance that they’ll eventually need if they purchase real estate in the future.
Stock up on all of the real estate books you can (that can relay information to children that are your child’s age, of course) and rotate them into your child’s reading routine. By reading these books along with them, you’ll be able to help answer questions, and explain how these concepts apply to your family based on things your child has seen in real life.
Play Monopoly
Oh, the game that never ends. Let’s be honest – Monopoly is great, but it can sure get long. Why not use that time to help teach your children some important mone and real estate concepts while having a blast? Inherently, Monopoly can help to teach how to purchase real estate, how to manage your money while you do it, and the best way to make money from your properties in the long term. Family board game time and real estate knowledge? Sounds like a win-win to us!
Fill them in on the process
If you’re wanting to teach your children about real estate, chances are that you’re interested or actively participating in acquiring it yourself. So, why not give an understandable explanation of what’s happening (and why) while you’re doing it? Find opportunities to bring your children into the mix, expose them to what it’s actually like to find, purchase, and finalize, and answer any questions they may have along the way.
Teach them where to go for help
Fill your kids in on what their resources are when it comes to real estate questions or advice. That can mean teaching them about any family or friends that are experts in the field, teaching them about the value of having a trusted realtor, books they can read to learn, and so much more.
Real estate can involve some pretty tricky concepts and best practices that can be difficult for anyone to master. That’s why it can be invaluable to teach your kids the basics young, giving them a solid foundation to continue building on in the future (when and if they decide that acquiring real estate is for them). The good news? There are a number of different places you can turn to in order to help your child learn about real estate early. But arguably, none of them come close to learning about the basics by example, especially from you.
