Teaching Children How To Earn Money:

Allowances

Depending on the family’s situation, it is wise to determine a rough guide as to the amount of money that each child is allowed to earn. Some families set a fixed price for each chore and allow kids to choose which chores they’d like to do, while others use a fixed rate for each age, increasing in increments each year. You can also add to the system by suggesting that chores done without a reminder earn their full value, while chores that are only done after several reminders have a percentage of their monetary value deducted.

Other Ways for Kids to Earn Money

It is important to teach kids other methods of earning money to help them learn about entrepreneurship and to exercise their creativity and business skills. Apart from the age-old lemonade stand, explain to them that they can earn money by offering services to other people, such as mowing grass or babysitting for the neighbors. Alternatively, they could arrange a garage sale with friends (and some adult supervision!). Help them to brainstorm and then go through their ideas to give them some tips and pointers. Older children can be encouraged to get a part-time job at a local store or for a family member’s business. There are many government grants for young entrepreneurs and it’s never too early to start!

Additional Resources

Help kids keep track of their money by setting up a money journal where they log their income, spending and savings. Buying them a piggy bank will help them feel in control of their finances and add to their sense of pride when they continually earn more money. Teach them to save up for items that they were planning on buying, especially those that count as splurges. These can include movie tickets, a new video game or toy and so on.

  • Additional Resources on Allowances and Helping Kids with Spending
  • Helping Kids Understand the Value of an Allowance
  • What Should Kids Be Expected to Pay For?
  • Talking to Your Kids About Money

Children and Money, Part 1

Save Time, Money, & Resources

Categories

Financial News

Contact HMS

Ready for the ultimate credit card processing experience? Ask us your questions here.