Thursday, November 17, 2005
The Kid Bank
If you're kids are a little older than I am and are beginning to understand the concept of money (something I hope to be doing soon), I think that you should encourage them to be entrepreneurs. Not only will this teach them basics about money and business at an early age, it will also make it a lot more likely that they can fund their own college education instead of relying on your bank account.
The Kid Bank offers low-interest business loans to children 18 years old and younger. In order to get the loan, you and the child need to complete an application, including the project description, references and a business plan. You also have to figure out projected income and expenses.
The interest rate is "2% below the national rate" and repayment is structured on the projected income. This is a wonderful way to teach kids hands-on about money and business. It's a wonderful opportunity to help your child take a hobby or interest and turn it into a money making venture - something that will be a valuable lesson for his or her entire life.
Posted by savingadvice at 11:54 PM