Today, a new generation of children is emerging. Gone are the days when families have children primarily to earn their keep on the farm. Now, children are not happy unless they have the latest and greatest technology such as iPads, iPods, laptops, and iPhones. The value of a dollar has dropped drastically and as parents, it is important to teach children the value of money and that it isn’t always going to be as easily handed out as they think it is.
Why Teach Your Child Money Management Skills?
Teaching your children money management skills and money saving skills is a very important part of being a parent. Giving children an allowance is a good start. Start off at a lower price and give more for each chore that you assign to each child. Once the chore is completed, reward your children with the specified allowance at the end of the week. This will help to teach the value of money while also showing them that you have to put in work in order to reap the rewards.
Encourage your children to brainstorm on ways to make that money stretch. For instance, if you know there is something in particular that your child has been wanting, remind them that if they save up their allowance money, they will be able to purchase the item they want in just a few weeks or months. This will teach your children self-control and will show them that they must work hard for things that they want.
The Benefits of Entrepreneurship for Children
When entrepreneurship is mentioned in relation to children many people think about times when they started their own lemonade stand. Everyone probably remembers getting a fold out card table or box, having their mother make up a batch of lemonade and sitting on the corner for hours, waiting to sell your 25-cent glasses of lemonade. Probably no one made a fortune off of such things but this does help to teach children the benefits of becoming an entrepreneur.
Many factors went into the creation of that lemonade business. First, I am sure the water came from the sink but it cost money to be able to afford the lemons and lemon juice and sugar that the lemonade was made with. While the parents probably covered these costs, children still knew that they had to make a certain amount of money with each pitcher in order to make enough to cover start up costs. This does not include the cost of the cups and materials to create the signs advertising the lemonade.
The lemonade stand is just an example but these days with the help of the Internet, home startup businesses have increased dramatically. Many people are going out on a limb and trying their hand at baking, jewelry making, and crafting. It is important to include your children into any entrepreneurial attempts so that they can learn the value of saving money, working hard for profit, and also how hard it is to not only make your initial startup back, but also exceed that amount to collect a profit.