Clarky Davis, The Debt Diva, says the core is about intrinsic lessons learned as it relates to cool cash. "When children earn their own money, they learn to respect and value money as well as stick to a budget and make smart spending choices."
As for how to do it? If your child isn't old enough to buckle up into the driver's seat (literally, as in drive a car), no worries. This doesn't mean he or she won't be able to find little ways to earn spending cash. As the weather warms up, The Debt Diva mentions outdoorsy type events can be lucrative and give the kids a sense of accomplishment.
"Host a neighborhood carwash once a month. Advertise by dropping flyers in each person's mailbox and ask neighbors to schedule an appointment so you know how many people will be dropping by to get their cars cleaned." She also recommends having your kids offer home care services to their neighbors like collecting mail while they're on vacation, disposing of garbage, watering flowers, and feeding and caring for pets.
"If you're child has a favorite past-time like crafting or cooking, your child can host a morning craft or bake sale. He or she could offer homemade jewelry, greeting cards, seasonal holiday decorations, lemonade or brownies."
|If you're child has a favorite past-time like crafting or cooking, your child can host a morning craft or bake sale. He or she could offer homemade jewelry, greeting cards, seasonal holiday decorations, lemonade or brownies.|
Elisabeth Donati, author of The Ultimate Allowance: A Sure-Fire System to Turn Your Kids Into Financial Geniuses, adds the key for young kids earning cash is providing a service via foot or bike or close enough that mom or dad can chauffeur them back and forth. "Providing a service gives them the ability to learn and grow a skill and makes them feel good about not only being paid for their time and energy but doing something good for someone at the same time. This is the greatest combination: getting rewarded for doing good in the world."
If your child is old enough to drive a car, they will have other doors open to them. "Check out local restaurants, coffee shops and eateries that have reasonable operating hours for positions in hosting, serving or cooking," says Clarky. "Book stores, music stores and hobby shops are great options for teens looking for a job."
Whether your kid builds a lemonade stand at the end of your driveway or gets a gig at the local movie theater, it's all a great learning experience. Curtis Arnold, entrepreneur, author of How You Can Profit from Credit Cards, contributor to The Ultimate Allowance and founder of CardRatings.com, says it's important for kids to be exposed to the reality that adults face every day.
"Our pay is based on our performance and good performance is rewarded by salary increases, bonuses and the like," Arnold says. "If our kids can be financially awarded for "going that extra mile" on a chore, for example, then that will typically motivate them to take pride in their work and develop a heightened sense of ownership."
For instance, Curtis instills this sense of ownership with his five children. Over the years he and his wife determined their kids should do chores and be paid based on their age and responsibilities. "The key is to keep the amount small initially and gradually increase the dollar amount as they demonstrate sound money management skills. We strongly encourage our kids to save at least 10% of their allowance and to share 10% of their allowance with a charity (in our case, that is usually accomplished by tithing at our local church)." So, not only are your kids earning money, they're learning how to manage it as well. And that's one to grow on.
Author and money coach Denise Winston gives tips on teaching kids the value of money.
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