Teaching Kids About Value Creation
Value isn't abstract. It's the gap between what you can do and what someone will pay for. Teach your child to find that gap and fill it.
The short answer
Value = solving a problem someone has. The bigger the problem, the more they'll pay. The fewer people who can solve it, the more they'll pay.
The lesson
Core concept: The Value Gap (15 min)
Draw a line. Left end: "what you can do." Right end: "what someone will pay for."
The gap between those two points is where money lives. School teaches you to be good at things. It doesn't teach you to be good at things people will pay for. That's the gap.
Exercise: Find three gaps (20 min)
Together, identify three problems people around you actually have:
- A neighbor, family member, or friend who complains about something regularly
- Something your child sees other kids struggling with
- A problem your child has solved for themselves that others haven't
For each: Who has this problem? How much would they pay to solve it? Could your child solve it?
The key insight (10 min)
"Step 1. Make yourself useful. Step 2. Make yourself scarce."
Useful = you solve a real problem. Scarce = not many people can solve it the way you do. When you're both, you're valuable.
What to read next
The Fundamentals of Value covers the value gap in depth. Free. 34 lessons. Start with "The Value Gap" (lesson 11).
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