I was raised in a household, where my siblings and I had jobs as early as age 10. On a weekly basis, we rotated dishwashing, bathroom clean-up, sweeping and taking out the trash.
On Saturdays, we deep cleaned – I’m talking dusting, vacuuming, and window washing – to infectious tunes off Michael Jackson’s “Thriller” album.
We happily performed these housekeeping duties for a bi-monthly allowance of $12.
That’s $26.51 in today’s economy to spend on stuff; not materially significant things, but meaningless self-gratifying stuff to bling out skelly tops and make tap-dance kicks out of shell-top Adidas sneakers. I cannot imagine what my childhood salary might look like if my parents charged rent. I’m sure it would suck.
‘There’s rent to be paid’
But for one wealthy entrepreneur, collecting rent from children is a good thing.
He said he plans to collect rent from his 11 year-old twins once they turn 13 and begin earning an allowance. He tells CNBC that he constantly reminds them “that there’s rent to be paid.”
Krause’s company netted $110 million in sales after appearing on ABC’s “Shark Tank” and snagging a $200,000 investment from QVC top dog, Lori Greiner.
Krause’s decision to charge his kids rent is not based on being a money-grubbing landlord.
Rather, it is a way to teach them financial responsibility despite having family wealth.
The successful business man says his children will “understand the fact that living isn’t free.”
Work for what you want
Krause isn’t the only rich dad to instill these particular virtues in his children.
Businessman, investor and philanthropist Warren Buffet did not spoil his children or squander his wealth on them. He provided them an education and encouraged them to make their own way in the world. And, he never rescued them from financial pitfalls.
Krause credits his own parents for his guiding principles. He maintains that it was their work-for-what-you-want ethic that laid the foundation for his own success.
As a kid, washing the family car was a chore that lead him into the car-washing industry, which in turn, lead to his current success with Scrub Daddy sponges. That’s not a terrible road to travel to get to $110 million.
Hmm, taking a few notes from Krause’s parenting playbook might just be an awesome idea after all.