“To be able to use this strategy, my kids need to understand the following concepts (not in any particular order):

1. How to save money

2. The idea that you can invest and spend the same dollar at the same time

3. How to take out a loan and pay it back

4. How compounding interest works

To start off, I randomly decided we would work on how to take out a loan and pay it back. I figured this concept can easily be built into one of the oldest of American traditions… the good old-fashioned lemonade stand. This also gave me the ability to teach my sweet, energetic, up-for-anything-three-year-old the main concept of loans and obviously, a ton of little lessons on the way. Here is our story…“

Step 1: Making the plan

As parents we are goofy, silly, and spontaneous, but we try to emphasis the importance of making a plan. We planned out our day and then my daughter helped draw pictures of each step.