Many kids today have caught the make-money-bug.
In fact, the life stories of current world billionaire entrepreneurs often began with the zeal to make money as a kid. Many kicked-off their careers doing simple jobs suited for kids.
This early work experience, in turn, helped them build crucial life skills that translated into huge future successes.
But times are also changing for the typical summer jobs for kids.
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A report by the Pew Research Center reveals a significant decline in the availability of summer jobs for teens. Teen employment is currently 35%, unlike In 1970s when it was put at 58%.
But the good news is that there are new massive opportunities that are not necessarily for the summers, but can help your kid start off making some good money.
Money-Talk: How Much Does Your Child Know?
Do you know that many Americans never receive any money lessons from their parents as kids?
When it comes to handling money, parents should make it a priority to teach children so they can develop money management skills!
So, how exactly should you as a parent educate your kid about money in a way that it sticks with them all their lives and avoid mistakes most parents make?
Here Are Some Great Ways To Teach Kids About Money
1. Let Them Know Where The Money Is Coming From
The attitude of kids towards money can sometimes seem unfair to their hardworking parents. But this isn’t the fault of the kids, especially since they do not know how the money is gotten.
It will however be wrong if they grow with this attitude towards money.
Let your kids understand that the money mom and dad spends, doesn’t just appear in their wallets or purses.
Help them know that a period of work was translated into the money they are able to spend at home.
Finance expert and a co-author of Smart Money Smart Kids, Rachel Cruze says,
“When you’re teaching your kids about money, it’s important to teach them where it comes from. Money does not just come from mom and dad’s wallet,”
Always ensure to continually repeat and demonstrate and demystify the connection between money and work.
Let them know when you work, you get money. And when you don’t work, you don’t get money.
2. Bring On The Kids When Having Talks On Family Budget
The founder and pioneer of Five Year FIRE escape, Kristjansen Leif disclosed that he makes room for family talks before dinner time. Leif often writes about his life on retirement, and he said that he found out that bringing children up while having family budget talks, is one of the best ways to teach them about money.
Leif says that, “They will see how you responsibly handle all of life’s pile of bills and issues. Kids naturally want to emulate their parents so they will start to think about spending and how to minimize it.”
He added that money talks in his own home often involve reminders to pay, check bills, or move some cash into investment account. And his goal is to make every member of the family comfortable with discussions on budgeting without stress or stigma. But then, it is fine if you think you have some kids that are too young to participate.
3. Mention Your Cable Bills While Watching Cable Channels With Your Kids
Teaching your kids about money does not always have to come painful and hard. They love free things. Even you, their parents do. They like to sit and enjoy interesting programs on family cable TV. Explore this golden moment to make them distinguish ‘free’ from ‘paid’ by letting them understand that the cable channels they are able to watch for free are already paid for.
Paid with money earned by their parents.
4. Be Exemplary In Your Own Attitude Towards Money
What you tell your kids versus what you do in their presence must be in unity. Your kids regularly watch if you do what you tell them to do. You can not afford to go spending above your means while teaching your kids how to be prudent and frugal.
Your kids will find it easier to do what you do than do what you say. So…it is better to teach them by showing them. They will learn a thousand times faster when you demonstrate great ways to handle money, such as in saving, giving, and spending.
Rachel Cruze said in her book that if you are always stressing about money, or have the scarcity mentality when money is involved, your kids are more likely to grow up to be that way too. And if you spend above your earnings, they may think it is normal. As their parent, guide, and teacher you should mirror what exactly you want your kids to learn about handling money.
5. Give Allowances That Counts
Your kids will be in need of money for sports activities, hangouts, festive gifts, or a field trip. Giving them money for these interests is good, but making the allowances you give them count is great! It would give them a good idea of what it means to earn money.
For instance, Andela’s thirteen-year-old daughter, Nina completes a task which is not a part of her regular daily chores. Andela gives her a tip as a personal allowance for completing the task. Nina is not expected to be paid for getting her own room clean, or the dishes, or doing her own laundry. Instead, she can pick up jobs suitable for kids and make extra money.
These chores should be non-negotiable, at least you do not want your kid to start exclusively associating regular chores with earning money.
She should contribute to the family just as everyone else.
So, give your kids allowances but ensure to make them count. Co-owner of Secure Retirement Solutions, Kevin Klug, says it is a great idea to consider some allowances for your kid after completing a set of daily or weekly chores. In his own words, he added, “They now owe you [money] for every chore not completed.”
When your kids have the right attitude towards money, they will be able to handle money – capital, loss, gross, profit, net profit, and all necessary business terms that would become very important. Learning how to make money on their own will give your kids life lessons that would become valuable and indispensable. Don’t we all say, ‘experience is the best teacher?’ Your kids will have valuable life experiences that will stick with them.
Here Are Some Great Ways Your Kids Can Make Money
1. Give Music Lessons
Have you ever seen your kids play a musical instrument very well? Then he/she should offer to teach others for a small fee! Music lessons can be quite expensive, and when your kid already acquired the skills in playing a musical instrument well, then that is a gold mine. This is one of the best ways your kids can make money.
You can guide your kid in setting low rates for other kids who would be interested in receiving music lessons. Ensure that they offer moderate and considerable charges while starting off, and can increase them gradually later on.
It becomes easier when you already have an instrument, to begin with. They can reach out to friends or interested peers in their school or neighborhood school. These music students will be expected to come for classes with their own instruments. In essence, the startup cost is low. Doing this will help the kids become better with handling such an instrument, and also help the parents save some money for other things.
2. Watering Plants
People will normally want to handle watering their plants themselves. But what happens when they are away on work trips or vacation? Your kids can offer to fill in this gap for them for a fee.
They can make up to $25 in a week by watering plants in the mornings or evenings. They would very likely be provided with the materials they need which makes it easy and cheap to begin.
3. Creative Writing
Freelance and creative writers have a lot of opportunities both online and offline. And they do not always have to attain huge qualifications to start out. Your kids who are very good at writing and communication, and have access to a computer and wifi can begin almost immediately.
Individuals and corporations are constantly giving out online and offline content to connect with their audience and also build conversions for their products.
This makes the demand for the service very high. Help your kid connect with clients on social media platforms, and on freelance sites such as Upwork and Fiverr. Your kid will be able to make hundreds of Dollars every month especially when they find long-term clients.
4. Car Washing
Do you think your kid is very hardworking and focused? You may want to help him or her begin a car washing service. You will only need to provide them with soaps, bucket, sponge, and some rough drying clothes.
The service can be rendered at the home of the car owner who will be expected to provide water. And if your home is well situated with good space for the service, it can also be considered. You may want to consider a friend’s place also or rent an open space where your child can begin. Additional workers should be employed and more professional equipment gotten as the business grows.
The startup cost is low and your child can make a few thousands of Dollars yearly. However, ensure to help your kid with a proper survey before starting.
5. Fast Food Worker
Your kid can render some services at a fast-food spot. Get him or her with the sling burger and paper hat for a few hot summer sessions. Help them get work at a neighboring food restaurant.
They are likely to have better chances of starting out at local restaurants rather than large chains.
While you do not have to be too concerned about the nature of work they do at this stage, more focused should be placed on the lessons and experiences they need to gain with work and money.
6. Becoming A Social Media Influencer
Do you already notice that your kid has so much influence on social media? While they may not be aware of the opportunities this advantage opens up for them, you can help them build a brand with their influence.
Your kid will be able to make money promoting other people’s product and make a huge income with what they already love doing.
7. Offer Freelance Services on Upwork or Fiverr
Is your kid good with photo-editing, copy-writing, graphic design, or video production among others? There are numerous opportunities open to them as freelancers on Fiverr, Upwork, and a few other freelancing sites. They will be able to meet and work with so many clients from different parts of the world.
Your smart kid will not only be rendering services and making tons of cash, but they will also be able to improve their skills in what they do and attract higher-paying jobs.
8. Home Cleaning Services
This may not meet the interest of your child at home, but it is a great way your kid can make some money from other homes. They can offer regular domestic chores for neighbors and interested people on weekends or during holidays and get some cash in their pockets.
Services they would be offering can include dusting, vacuuming, wiping off surfaces, sweeping, and mopping. They can bring in interested friends when work becomes so much for them alone. And they can get paid up to $50 per job.
9. Painting Services
Painting is nice for creative kids. And they can begin by offering simple painting services for interested people. Fences, window frames, garages, and many home interiors often need painting. They can get this done with the use of a less expensive electric sprayer.
Home owners see this task as a time-consuming one and would preferably choose to employ someone to get it done for them. Starting out doesn’t require so much too.
10. Start a blog
Blogging is a great way to make money as a kid. There are several popular ways the blogs can be monetized once they start getting good attention online.
Some of the ways your kid will be able to monetize their blogs include selling eBooks or other digital products, running affiliate programs, or signing up for advertising networks such as Google AdSense and many others.
And with this, they will be able to make a few hundreds or thousands of Dollars every month! That is impressive for a kid who is still under a parent.
Learn how to start a blog that makes money here.
11. Get A Part-Time Job For Your Kid
Despite the declining availability of summer jobs, your kids will still be able to make money working in some available part-time jobs around them.
It all depends on how willing and hardworking they are. You can communicate with friends or neighbors for part-time job opportunities they might be aware of. Here are some part-time job opportunities you may love to consider for your kids.
Now that we have considered some impressive ways your kids can make money, what exactly does your kid hope to do with the money they earn?
In addition to teaching your kids about money, there is more they should know when they start making money.
Educate them on the principles of savings, giving and spending.
Finance expert, Rachel Cruze says that giving is one of the most important principles out of the three. She said that giving has to do with helping others, and this is very important for them to be exposed to at their tender age.
As for spending and saving, Cruze says, “Encourage your child to set aside some of their money to savings and some to spend each time they get paid. Remind them that once their money is gone, it’s gone. And yes, your kids will make mistakes, but it’s better that they make those mistakes under the safety of your roof.”
Organize the money they earn in three different piggy banks — savings, giving, and spending. You aren’t going to only give them abstract explanations on how to handle the money, you’ll also show them practical ways to understand the concepts.
So, whenever your child earns money — allowance, gift, wages, etc — teach them to split the money into the three provided piggy banks. You do not have to influence how much exactly they put into each. And this will allow your child to make their own decisions on how to split their earnings.
More importantly, they will be able to demonstrate the relationship between work and money. This also will also create an atmosphere for quality conversations between you and them.
How Much Time Should Your Kid Devote To Work?
Since your kid will be having more on their plate, how much time exactly should they commit to their job?
Remember that your kid already has some things they participate in — academic, sports, and other youth activities. Consider them while they take on a part-time or full-time job.
They will need a strong work ethic for their newly found job, this may come at the expense of their academic achievements or grades which may cost them so much in the future when there is no proper balance.
What Type Of Work Does Your Kid Want?
Educate your kids about what they need to know about having their own source of income, whether it is their own small business or a paid job. Talk about planning, marketing, and getting their jobs done.
Mothers and daughters can also run a business together, and here are mother-daughter business ideas you should consider. Help your kids to know the benefits and challenges of their choice of work.
They need to learn so much on how to make money as a kid. Everything that involve running a business and the financial wisdom they must acquire along their path of entrepreneurship.