That doesn’t do justice to the other types of learnings that happen during play. Eventually, their passive income increases beyond their expenses and voila! they’re out of rat race. As they make deals, they update their personal financial statements. Investments are the way players progress. Lesson 3 – Connecting the Dots Through Play If you don’t have cash in the bank to pay your mortgage at the end of the month, you’re in trouble. The personal finance version of this is simpler than running a company but the principles are the same. While their first month looks like a success with $500k in net income, they are actually cash flow negative! They owe their supplier payment before they are going to receive money to pay it. Unfortunately, Kool Kids customers also take 30 days to pay. It takes just one month to sell all of their inventory for $1,000,000! Seems like it’s time to celebrate … $1,000,000 in revenue - $500,000 cost of goods sold = $500,000 in net income.

team are social media ninjas and they know how to market. Their supplier sends them an invoice and gives them 30 days to pay it. They get a great deal to buy $500,000 worth of cool products. live with their parents so they have $0 overhead to run their business. Let’s use payment terms as an example of why this is important: Kook Kids Co. Everyone continues playing until they win. Players win when they have enough cash to buy their dream when they land on it. Players use an extra die so they literally move faster but it’s the amount of money in each transaction which is really different. The Fast Track is the outside track on the board. Once a player has greater PASSIVE INCOME than monthly expenses, he/she is officially out of the Rat Race and moves to Phase II, the Fast Track. Players can also bargain and trade with one another. Players have to assess them individually and make a decision. Instead they have to decide on small deals which will incrementally increase their monthly income until they can go for the big ones. Initially, no one has enough resources to purchase big deals. Players transcribe this information to a personal tracking sheet.Īs players take turns going around the Rat Race, they land on opportunity spaces, “small deals” and ” big deals”. This determines their monthly income and expenses. Each player chooses a profession such as lawyer, teacher, business manager, truck driver, etc. Each player selects a dream by placing their colored cheese piece on one of the options around the board, e.g., see the 7 wonders of the world, open a research center for cancer and aids, run for mayor, etc. The overall goal is to achieve your dream.

Cashflow 101 202 &_for_kids