BLACK MILLIONAIRE TERMS of the WEEK:
To best enable you to engage your children in this discussion, we’re going to start with some basics.
This week’s terms of the week are INCOME STATEMENT & BALANCE SHEET.
In extremely simple terms: an income statement lists the assets and liabilities of an individual or a company. Now, a balance sheet will also show the assets and liabilities of an individual or a company, but it will likely show the total balance, costs, and ownership of all assets and liabilities; whereas, an income statement will likely just show the monthly breakdown of all income, cashflow, and payments for the assets and liabilities of that individual and/or company.
There are many different styles of income statements and balance sheets. In other words, they may look different; but, for the most part, they’ll convey the same type of information. To give you a general and really basic idea of a both, I’ve included a picture of one of my favorite, shall I say…templates, to use in teaching how to learn to read them. If you’ve ever played the Cashflow 101 game, you’ve seen this financial statement before. Look it over, perhaps even print one out, and begin using it to become more ac
custom to using and reviewing balance sheets and income statements.
It’s important to note that there will always be layers to the terms we will discuss in our weekly sessions, so it’s always a good idea to do a little more independent study on these topics. Nonetheless, my job is to bring you closer in familiarity with these concepts to lessen our intimidation levels and give our children the financial education and advantages they’re not getting at school.
Be sure to tune into the Raising Black Millionaires Podcast every Monday and checkout our weekly blog posts, where we wil
l discuss these terms in far more depth, providing you far more leverage to utilize them to aid you in your journeys of #RaisingBlackMillionaires!
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