As your kids get older and start thinking about making money, they may ask you to help them launch a lemonade stand, start a business mowing grass, or offer to babysit siblings in exchange for money. Owning a small business will teach them valuable money lessons about income, expenses, and savings. Children will learn responsibility, money management, and the value of hard work. This will not only improve their financial literacy, but it will lay a solid foundation for a successful financial future as an adult.
You can encourage this entrepreneurial spirit by providing encouragement and instruction and help them create a “business plan.” Help them answer the questions on our worksheet on the next page to focus their plans and choose the right business for them.
You can also ask them the following questions to help get the discussion going.
What are you good at?
Encourage kids to try to make money doing something they love to do or already know how to do. Ask them:
- ➡ Can you make items to sell or sell lemonade, vegetables, or baked goods?
- ➡Can you offer services such as babysitting, yard work, car washing, or cleaning?
Will it cost any money to start your business?
Make sure your children think about the costs associate with starting a business. Ask them:
- ➡ If you’re making a product, how much will it cost to buy materials?
- ➡ Will you need to take any classes in order to offer a service?
Who will your customers be?
Help your children focus their search for customers. Ask them:
- ➡ Do parents need your services?
- ➡ Are you making things for other kids to buy?