The first payday!
ROUND ONE – They are now all YOUR employees!
Registers, Reconcile, Remember (ask them what the learned).
Introduce Most Important Rule/Habit of all financially free/wealthy/rich people: Pay Yourself First!
Ask them, “If you want to learn how to do something, should you learn it from someone who knows how to do it or doesn’t know how to do it?” Exactly.
“So, if you want to grow up and have more than enough money than you need, should you do what RICH people do or POOR people do?” Exactly. Rich people.
How many of you want to know the most important thing rich people do to get rich?
Well, they do this thing called Pay Yourself First. Pay yourself __________.
ROUND TWO – Register, Reconcile, Remember
Note: Remind them to pay themselves first BEFORE paying their expenses.
ROUND THREE – Register, Reconcile, Remember
Ask how many have $300? How many will have $300. Great.
Introduce Three Pillars of Wealth – investing (not buying) in assets.
Talk about each type of asset and feel free to mention that there are other things to invest in, like gold and silver, etc. (i.e., commoditites). When explaining the stock market, use the example of you having a company and dividing it into 100 pieces so they could each buy a piece or invest in your company for $10 per share/stock. Talk about what happens if the company makes a lot of money and someone wants to buy the share. Would they sell it for $10 or has the value of the stock gone up? Yes. And then introduce Dividends as you sharing part of your company’s profit with them.
ROUND FOUR – Register, Reconcile, Remember
Car Crash – insurance, deductible, hand in $100. If they don’t have $100, next round is $200 credit card payments.
If you have to use your credit card to pay your deductible during the next round, will you be able to pay yourself first? No. This is how people get into credit card trouble and aren’t able to save and invest. (Alternative: they can use their play jar money during the next round to pay their credit card so they can still pay themselves first).
LESSON: Never Let Your Account Get To $0!
Introduce Passive Income vs. Earned Income – Earned: they trade THEIR time and energy for; passive: their MONEY is doing the work.
Give them $200 for each asset they invest in.
ROUND FIVE – Register, Reconcile, Remember
How you win The Money Game – when passive income from your assets is greater than the expenses of your chosen lifestyle.