Once a child is old enough to understand the concept of money, they are ready to earn their own money. There are various ways kids can make money. Little jobs can earn money for a child, but don’t let the money itself be the focus. Instead concentrate on helping them learn entrepreneurial and financial skills.
Financial literacy training and entrepreneurial development will help your kids make money and most importantly keep the money they earn. The ideas listed below will show you how your children can earn money and have it work for them.
1) Help your children set some financial goals. Work together to assist them in setting short and long term goals for their money. The long term goals you may need to guide them and give them examples of what that would mean to their life. Short term goals should be easy to set. Have them pick something they want to save for that they can achieve in 6 months to a year. Cut out a picture and post it on their piggy bank. This will help them make the connection between money and having the things they want in life.
2) Give you children the opportunity to earn an allowance for doing extra work around the house. As they earn money then you can begin to teach them about the importance of saving money. Get their bank account open immediately and let them start to see the little bit of interest they earn grow over time.
3) It is essential that we do not focus on short term gains as we teach kids how to generate money. Teach them the power of compounding interest and enroll them in a financial literacy class at a young age. This not only educates them but also provides them needed motivation to continue to save on a regular basis.
4) Support them and encourage entrepreneurial endeavors. There are old school ways that kids can make money like by having bake sales, baby sitting, delivering newspapers or a lemonade stand. Now days we can also teach our kids how to leverage the power of the internet and begin to market items on eBay or other sites. They can also market other products they find online with no out of pocket investment. This affiliate marketing gives them all the tools they need and the experience of starting their own business. One world of caution though – closely monitor their online activity but encourage them to start a business and take a financial literacy class.
5) Encourage your teenager to get a job or start their own business so they can start earning money. Whether they go out and mow lawns in the neighborhood or start a job, it is good for them to get on the road to financial independence at a young age.
There are a multitude of ways children can earn money. With a little creativity, motivation and financial literacy training you will find your kids making and keeping their money.