Guide To Helping Kids Make Money
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At What Age Is It Okay For Kids To Make Money?
Kids of all ages can think about ways to make money before they enter the official work-force. In fact, it is good to encourage our kids entrepreneurial spirit.
The state of today’s economy has presented a great opportunity for parents to teach their children about money. Everyone knows they need to teach their children the importance of money, and how to make it and save it. But now, there has never been a better time to teach them. In the old days, kids would set up a lemonade stand in front of their homes and sell lemonade to friends and neighbors. Fortunately, lemonade stands will always be a great way for kids to learn about money while they are making some extra money to supplement their allowances.
For one; the ingredients for lemonade are pretty cheap. All you need is some lemons, some sugar and some water. Pick a good recipe that makes quite a bit of lemonade at once and get to work! You can buy paper cups or plastic cups, and the choice is really up to you on that one. If you are concerned about the environment, there are even recycled paper cups that you can buy; however, you may have to charge more for the lemonade in order to recoup some of the cost.
Try this delicious Vanilla-Caramel & Cream Cheese French Toast Casserole to get your kids cooking in the kitchen!
Is It A Good Idea?
The only thing that you will have to worry about when your child has a lemonade stand is supervision. You can stay outside with them or you can watch from inside, but you must always keep an eye on them. Unfortunately, we live in a world in which our children are not always guaranteed to be safe even though they are in their own yards. However, if you simply keep a watchful eye, your child can spend the day making extra money and learning about saving.
Apparently the good old lemonade stand has been made illegal! In fact worse than just getting shut down kids and their families are actually receiving fines if they are caught. Just when you thought there couldn’t possibly be any more silly regulations to be enforced right? So how do you teach your kids about entrepreneurship if they can’t put up a lemonade stand?
There are a couple of schools of thought on paying children for completing chores. When I was growing up, we did chores and we got paid for it. That’s just the way it was.
In this day and age, many experts say this is not the way to teach children about money. Instead you should pay a weekly sum regardless of whether the chores were completed or not.
I still think the best way to handle money and chores is to only pay them if they complete their chores. I think this teaches them a few things.
What You Should Do
First it teaches them how the world works. We work, we get paid. We don’t work, we don’t get paid. If kids learn early that it takes hard work to earn a decent living then this is a major benefit.
Also, be rewarding based on chores, it allows us to teach about saving and giving. When I pay my children, I “encourage” them to set aside 10% or donations and 10% for savings. I tell them whatever is left over is theirs to spend or save for a big ticket item.
I don’t nitpick each chore, but if they just don’t do their chores in a week, they don’t get paid. As long as they’ve made a good effort they get their pay.
I think that rewarding children for doing chores with money is a good thing and teaches them valuable life lessons. This helps them transition into the real world when it’s time and holds them accountable and responsible. No more handing out free money here.
It is clear that with the way the economy is going and the changes we are seeing in the business world that the only way for you to truly equip your children to provide for themselves in the future and have the chance to live a really full life is to teach them entrepreneurship.