MAGAZINE
K I D S
F I N A N C I A L L Y
S A V V Y
WEALTH
October 2023
5
STEPS TO FINANCIAL SUCCESS
READY, SET, INVEST FLOW BY NICO Young Entrepreneur
October 2023
CONTENTS Nico Bean Owner of FlowByNico
3 Editor's Note 8 Safety First, Business Second 3 critical tips for kids to start to do before starting a business 10 READY, SET, INVEST: Taking Stock This year's promising young writers are about to shine 11 What is the Stock Market Quick video lesson on the stock market 15 5 Steps to Financial Success This year's most-awaited thriller 16 Introduce your Daughter to BHS by BHS 12 MSA Unveils New Learning Centre by Samantha Adams 18 The SCOOP From THE SHARKS
5 Young Emerging Entrepreneur Read up on one of Bermuda’s up and coming entrepreneurs’,
October 2023
Teaching kids about money is important and it isn't as hard as it may seem. It's actually something parents can do every day.
Editor’s Note Turn your day-to-day activities into learning experiences. It’s honestly as simple as that to start. Whether it’s trips to the bank, store, or ATM machine, this can be a perfect opening for a discussion about your values and how you use money. When children are very young, you can work money concepts into your child's imaginary games, like playing pretend store or restaurant. As they get older you can show them how you budget and if you aren’t good at budgeting then it’s something you can learn along with them. Usually, the hardest part of teaching your kids about money is the fact that we find it difficult to talk about because we may not be good with it or have negative thoughts or experiences with it.
Katrina Ball
I encourage you to use the topics in this issue as a way to open discussion with your child and start learning about finances early plus it’s never too late for you to learn and improve your finances too.
Editor-in-Chief
OCTOBER 2023
In this issue we are touching on entrepreneurship, stocks, and investing and getting the scoop from some well-known names in the entrepreneurship world.
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An Interview with young entrepreneur Nico Bean
FLOW BY NICO 1. Can you tell us a little about yourself and your business? I own Flow by Nico, an art business where I create and sell handcrafted, one-of-a-kind paintings and Christmas ornaments. I’m 15 years old, and for the past two years, I’ve been creating and perfecting my acrylic pour techniques, delivering custom paintings and Christmas ornaments to delighted customers in Bermuda and overseas. Each piece tells a different story, and I am meticulous with it, using everyday objects like combs, marbles, beads, hair blow dryers, and paper hand towels.
2. How did you get started with your business? During lockdown in 2020, I started experimenting with different art styles. I did portraits, abstract art, and more. Eventually, I came across acrylic pour art. I loved it and kept creating different pieces and experimenting with new techniques. It wasn’t until one year later when I felt confident enough to sell my first painting. I started by contacting my granny and had her show the painting to her church friends. One of them really liked it and purchased it. When I sold this painting, I realized that people actually like my art and are willing to pay for it. I kept on creating, shared more and more paintings with my granny and her friends and eventually, I started posting my art online on Instagram. It took off from there and now I am selling my art in multiple different places.
3. Who supports you in your business endeavors? My biggest supporter in my business endeavors is my mom. She helped me to get started by purchasing my first canvases and paints, she drives me where I need to get, she helps me with marketing and designs for my business, and she gives me quality advice about entrepreneurship.
4. What do you enjoy most about being an entrepreneur? The thing I enjoy the most about being an entrepreneur is the freedom. I can decide what I want to do, and when I am going to do it, and I can make my own money to save, and spend however, I want to.
FLOW BY NICO 5. How do you balance your business with school and other activities? Balancing my business with school is tough and I need to find a better balance. I attend Somersfield Academy and those who went to Somersfield for High School understand the workload you get. Especially in the second year of High School, the current year I am in. I spent a lot of time over the summer working on my business and developing my merchandise. I also built my website and took an entrepreneurial program with the BEDC to learn all about business, branding, marketing, and more. Now that school has started, I have less time but I use my weekends and holidays to create new paintings and ornaments as I am working towards a few holiday fairs coming up.
6. What advice do you have for other kids who want to start a business? I have five key points of advice for other kids who want to start is business. Firstly, you’re not too young. Don’t tell yourself that you can’t start a business because you’re not even a teenager because that’s not true. When I was ten, I started my entrepreneurial journey with a car washing business washing cars around my neighborhood. Second, do what you love. If you’re just doing something to make money and you don’t get any joy out of it, it’s not going to last. Third, stay consistent. You must stay consistent in business for growth. It takes time, you don’t have to rush it, just don’t stop.
Fourth, maintain a good mindset. In business, it’s important to have a good mindset as this is your drive. If you tell yourself, you will do good, you will achieve your goal, and you will make it big one day, then you actually will. Your mind believes what you say and think. If you say it’s too hard, I can’t do it, you won’t do it. Finally, just go for it. No matter what you want to do, make a start because you never know what can happen.
7. What are your future plans and goals for your business? In the next few months of business, I plan to take my paintings and turn them into merchandise. Specifically, phone cases and notebooks. I plan to sell these online. I will also be attending many Christmas and artisan fairs in the holiday season. To keep track of what I’m doing, follow me on Instagram @flowbynico and view my website at flowbynico.com.
8. Do you have any role models or entrepreneurs you look up to? My biggest role model, my drive, and my inspiration is my mom. I look up to my mom all the time. She’s a full-time entrepreneur and owns two businesses. She gives me great advice and I see what a great life she has created.
Pastel Galaxy (flowbynico.com)
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October 2023
BE INSPIRED BY NICO on MIND YOUR BUSINESS with Jamillah Lodge Use video along with Teaching Tips on page 21
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October 2023
Young Entrepreneurs Quick Tips
SAFETY FIRST, BUSINESS SECOND When you use the internet and social media to build your business, keep safety in mind. Here are some tips. Partner with a parent. Whether you’re starting a storefront locally, or on the internet, get a trusted adult involved.
Push your product to you should start selling to people you know. This way you are safe and learn the metrics of your business and how it works. Don’t advertise any personal information. Protect your name and address. Never bring people to your house to pick up your product.
TRANSPOR TA T
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iculture g r
Defe n se
READY, SET,
INVEST! LEARN ABOUT THE STOCK MARKET AND WHAT IT MEANS TO INVEST Energy Cons tr tion uc
BIOTECH
TAKING STOCK If you’ve ever had a job or done chores to earn an allowance, you know that earning money is hard work. Would’nt it be nice if that money could grow on its own by working hard for you? It can if you invest it. Traders at work on the floor of the New York Stock Exchange, on Wall Street
When you invest, you buy a stock, bond, piece of property, or something else that you believe will grow in value. In general, the longer your money is invested, the more it will grow. That’s why the best time to start is when you are young. Growth separtes investing from saving. If you save $100 in a bank and it earns 1% interst, in 10years, you’ll have $110. But the stock market has historically increased by an average of 10% a year. So, if you invest $100 there, in 10 years, you’ll have about $200. But there is risk. Money in the bank may not grow in value, but it won’t lose value. Stocks and other investments can lose money. Over long periods of time, the stock market has gone up. But during shorter periods, it sometimes goes down. For that reason, only invest money you will not need or at least five years.
If you need that money sooner, you should put it somewhere safer, like a bank. HOW STOCKS WORK Companies - like Apple, Facebook, Disney and locally like BELCO need money to pay workers and produce products. One way they raise money is by selling pieces of their company, called shares or stocks, to the public. When you buy a stock, you become an owner or a shareholder. The stock market is like a store in which you can buy, sell, and trade stocks. Stock markets exist all over the world, but many investors in the U.S. use the New York Stock Exchange or the NASDAQ. If you’re under 18, you need a parent or guardian to help you buy stocks. Your goal is to buy stock, hold onto it while it grows, then sell it for a higher price.
But individual stock prices change, so choosing stocks isn’t easy. One must do their research. Start with companies whose products you know and like ones you have used. Then go online and read about their future plans. There are many opinions, so read several sources. Consider Nintendo’s stock in 2011 one share of Nintendo stock cost about $21. Over time it fell to $12 then in 2015 it climbed to $38. Why? Because Pokemon Go became a huge hit. Today in 2023 it is $10. LOWER YOUR RISK It’s smart to buy many tyoes of stocks at the same time. Spreading your money out over many stocks lowers your risk. Even if one goes down, there’s a good chance others will do better. PAGE 10
LESSON RESOURCES HAVE YOUR CHILD WORK THROUGH THESE STOCK MARKET SIMULATOR LESSONS TO GET A MORE DETAILED UNDERSTANDING OF STOCKS AND MORE FROM THE MONEY INSTRUCTOR
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FIVE
THINGS YOU
NEED TO KNOW ABOUT
MONEY 5 TIPS TO FINANCIAL SUCCESS
October 2023
Here’s a TOP 5 List that’ll never change
Spend less than you make. Earn a decent living. To pay for a nice life, you have to earn enough money. How much is that? The average household income in Bermuda is $115,173 a year by comparison to the US is $67,521 or the UK is $46,552. Where you live plays a major role in how far your money will go. It’s cheaper to live in the US or UK than it is in Bermuda.
Save, then invest, the money you don’t spend. Save money for emergencies and things you’ll need in the next few months or years. Put it in a bank savings account. It will earn a small amount of interest, but you won’t lose any of it. After that, you can invest your money. That means buying stocks, which are small pieces of companies, or mutual funds, which are groups of many stocks and other investments purchased together. You might make a profit when you sell them. But, unlike savings, investments can also lose money. That's why you should only invest money you don’t need for at least five years.
Give back. If you want to feel good about your money and have it flow back to you, the best thing you can do is give some of it - or some of your time - to a cause you believe in. How much? That’s up to you.
Life is full of emergencies and small surprises. You get strep throat and have to go to the doctor. You forget your mother’s birthday - oops - and have to buy a last minute gift. If you spend everything you make, you have nothing left to bail you out of these small jams. Learning to do this is difficult, but it’s important. Don’t make excuses. A good rule of thumb is to try to save 15% of every dollar you bring home.
Protect your financial world. There are some emergencies and surprises you can - and should - save for, but others cost too much. That’s why adults should protect themselves by buying insurance to replace things youo couldn’t replace on your own - homeowners’ insurance for your house, renters’ insurance for the belongings in your apartment, car/bike insurance and health insurance in case you end up in the hospital. Adults who have children should buy life insurance. It provides security in case something happens to the adult. PAGE 15
October 2023
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September 2023
THE SCOOP FROM THE SHARKS Reprinted from timeforkids.com
Barbara Corcoran
Turned $1000 into a $5 billion real-estate empire. She struggled through middle school and sees herself as proof that you don’t have to get straight As to build a multibillion-dollar business. She says that learning how to read people and focusing on the kind of person she wanted to be were key to her success. HER ADVICE “It’s smart to sit down as a kid and think of the peer you admire most and make a list of his or her best qualities. You can decide right then and there to build those same qualities in yourself through practice, and then grow up to be a person others admire.” (Do the same exercise for the negative qualities you want to avoid.
Mark Cuban Started making money by selling garbage bags door-to-door at age 12. Today, he owns the Dallas Mavericks basketball team. He says that when you’re starting a business, whether you’re selling a product or developing something high-tech, you often can’t win solely based on the product itself. What can set you apart is you. HIS ADVICE “Being successful in business doesn’t have to be fancy or complicated. It takes hard work, good customer service, and the ability to be nice to people. It’s important to be good to your customers. Thank people when you get paid and when you receive tips.” PAGE 18
October 2023
THE SCOOP FROM THE SHARKS CONT’D Robert Herjavec Was born in Croatia and raised in Canada. He made his fortune in the field of Internet security, which he knew nothing about when he got his first job. That’s why he says that when it comes to running your business, you’re not going to be the best at everything, and that’s okay. HIS ADVICE “”As an entrepreneur, you need to be good at doing a little bit of everything, but it’s okay to recognize where you aren’t quite as strong and ask for help. Whether it’s your parents, a friend, or a professional advisor - no matter who it is, be open to learning from others while you stay true to your vision.
Damyond John Tapped into his entrepreneurial spirit when he was young by learning to use his mother’s sewing machine to make hats that became the successful fashion empire called FUBU. He says one way to be successful is to use your “technology skill set” to help you get ther. He also notes that you shouldn’t be afraid to fail. When you try things that don’t work, what’s important is that you learn from your mistales. HIS ADVICE “The best part of being young is that you have so much ahead of you! Nobody in life has a perfect record, and the quicker you learn that and go out in the world taking big swings, the better!” PAGE 19
September 2023
THE SCOOP CONT’D
Lori Greiner Has invented more than 400 products, including kitchen tools and jewelry organizers, many of which she sells on the TV network QVC. She advises people who want to start a business to focus on their likes and interests. HER ADVICE “Don’t stress about what path you’re going to take. Think about what you like and are good at, and see how you can possibly make that into your career. The key is to love what you do. If you love what you do you’ll be good at it!"
Kevin O’Leary Made his fortune by starting an educational software company that he eventually sold to Mattel. Like many entrepreneurs, he started with no money, so he learned to take advantage of free resources.
HIS ADVICE “Set up an office space in your home, use the computers at your local library, build an online presence, and use social media to build word of mouth around your idea or business instead of spending money on an expensive marketing campaign.” PAGE 20
October 2023
Teaching Tips & Conversations Starters REVIEW KEY CONCEPTS What is an entrepreneur? (A person who starts a business) What might motivate someone to become an entrepreneur?
BUILD COMPREHENSION PROBLEM/SOLUTION Tell your child that new products and businesses are often inspired by problems that need solving. To demonstrate this idea, have them listen to Nico’s interview with Mind Your Business and what were some of the problems he was seeking to solve.
CHARACTER TRAITS Provide your child with a piece of paper. Tell them to write one of the following character traits on each: creative, determined, observant. Have your child listen to Nico in the interview Mind Your Business and see if they can pick out when he displayed the traits written down in starting his business. Discuss your child’s choices. Ask: What other traits would benefit budding entrepreneurs? Why?
EXTENDED LEARNING Design an Ad Have your child think of a business they may want to start. Use these questions to assist in creating an appealing ad: What makes the product unique or desirable? Who are the customers? What is the best way to reach them?
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