School may be out for a few months, but the learning doesn’t have to end when the backpack gets relegated to the closet. Especially the good hands-on learning that offers more memorable experiences that stay with kids for years to come. If your daughter is interested in earning money, it’s time to encourage her rather than stunting her enthusiasm by allowing her to do more household chores to bring in the bucks. Help her start a business that offers better earning potential and more interesting work!
Countless kids have tried lemonade stands with varying levels of success, and although tried-and-true is usually a good thing, see if she can brainstorm a few dozen ideas of businesses that could be run by a person of her age. Instead of lemonade and cookies, maybe she could sell iced lattes and cupcakes. Crafty gals might get some basic headbands and jazz them up with sequins, fabric flowers or glitter and sell them nation-wide on Etsy. Instead of babysitting, maybe she could do offer pet sitting. For more ideas, have her check out Money Crashers.
Teach Money Management
To get the working capital, suggest that your daughter use some of her short-term savings, any recent cash gifts or take out a loan from the Bank of Mom and Dad (if you’re willing). She could also take on some work, such as dog walking, that doesn’t require any investment, to save up for her instant coffee and cupcake mixes. Once she pays back her loan, if any, encourage her to set aside some of the profits, up to half, as retained earnings. This will allow her to buy more supplies so she can continue to grow her business.
Not all business ventures work out. An overwhelming number of small businesses fail within the first few years, and most successful business owners will probably tell you that their current one wasn’t their first business. Explain to your daughter that a failed business venture isn’t a reflection on her: a rainy spell would easily wipe out the success of a car wash or a roadside cafe and a community that’s health conscious isn’t going to be running out to buy her cupcakes no matter how great they are. Help her find lessons in her experience and use those to build upon for her next endeavor. Encourage her to keep going forward and learning. By the time she gets to college, she might be the owner of a six-figure enterprise.
Did you have a business as a kid? Tell us about it in the comments!