How do they earn money. . .or DO they earn money?
One way that kids can earn money is through chores.
Initially, Brittany's family was of the mind that chores were just a part of life-and should be done-which is a belief that many families hold (and how many of us were raised). Over the years, however, she and her husband have pivoted a bit and decided that there are definitely SOME chores that are simply done out of family responsibility, but there are also tasks that can be completed for money-for a really good reason:
Allowing children to earn money beginning at a young age can provide SO many teaching opportunities when it comes to money management-and helps with the goal of raising financially smart adults.
Both our families pay children their age in allowance each week. Brittany's family has a great system (which also teaches responsibility and the importance of a job well done). We'll call it the system of 1/2's. . .
It's ALWAYS a good idea to check kid work (think of yourself as quality control). Brittany emphasizes the idea (once again-because it is brilliant) of asking good questions (in a loving way) when effort is lacking (or if a job hasn't been done).
Then, if a child doesn't complete their chores one day, their pay is cut in half.
If they miss a second day, there goes another half.
By the third missed day-there will be no pay.
On raising entrepreneurs. . .
Brittany's kids have participated in the Children's Business Fair for a few years now and they have learned a TON. This last year, her boys made and sold wooden toys, and her girls sold handmade dolls and paper. Parents help, yes, but the kids purchase supplies, create product ideas, and run their shops on the big day! For more information on Children's Business Fairs, check out:
https://www.childrensbusinessfair.org
After the fair, there is another great opportunity for a teachable moment. . .what to do with the profit!
Earnings are divided as follows. . .
10% is given. Giving is SO important, and when started young, it can become a GREAT lifelong habit.
20% is saved. The only exception to this is when profits (or earnings exceed $100, then savings gets bumped to 30%)
70% is spent! If kiddos work hard to earn all that money, they should get to enjoy it! Now. . .depending on the kid, this can get a bit sticky--literally and figuratively--because we all have that one child who wants to spend $15 on candy! This is another great opportunity to ask good questions and let your kids waste a little money (because when something else comes along later when they have nothing to spend-it will be a great lesson).
As far as savings goes, this is an area where we exercise a bit more parental control, for two reasons. . .1. to teach good habits (because savings is important, and saving little bits over time and not digging into it constantly is a GREAT habit), and 2. both of our families have a parent matching program (where we add the child's age to their savings each month on TOP of what they save themselves.
Kids CAN do big things with their money! Brittany's two oldest saved for and traveled from Florida to ALASKA! She also has another son saving for his own hoverboard right now! Our family was able to help my oldest purchase a new camera for his photography business by saving in this way!
If you aren't interested in chores, and you don't live near an area with a children's business fair-consider encouraging kids to own their own skills. Kids CAN do big things-with a little help and encouragement!
Finally-we would love to hear YOUR ideas! Find us on IG @dirty_moms_talk, @thedeliberateday, and @artfullybydorajayne