Attach value to chores - If you need to get a couple of extra chores done around the house try attaching a value to them. For example, if the dishwasher needs to be emptied you could pay your child $2.00 to empty it. If your child's weekly allowance is $10.00, come up with five $2.00 chores for them to do throughout the week. If the chore is not completed, compensation is not given.
As children mature, their wants tend to become progressively more expensive. It is never too early to talk about where money comes from - it's earned. Even a small child can be asked to do small tasks around the home in return for a weekly allowance. When children are old enough, they may want to supplement their "income" by earning money outside of the home. These jobs may be as simple as helping a neighbour with chores or as ambitious as starting a business.
Discuss how businesses work
This is an interesting family activity that will help a child understand basic business concepts. Have a discussion about how businesses work. What are the pros and cons of running certain kinds of businesses? What is their product? What are their costs to produce and deliver that product? What kinds of people work there? How do these variables affect the consumer? Take a restaurant for example. What do they pay for food and equipment, for cooks and servers, for rent and taxes? How do people get to know about them? How do they decide what to charge for each item? What are you REALLY paying for when you go to a restaurant?
Start a business
Help your child start a small business venture. It's a great opportunity for kids to recognize their personal interests and improve their skills. Decide on a business that will work for your situation. Some options include mowing lawns, shoveling walks, dog walking, plant care and babysitting.
Once the business activity is decided, help your child through the following steps and record your action plan.
- What is needed to start - tools, equipment, etc.? Which of these do you already have and which do you need to purchase?
- Where can you get the best deals on these items? How much will they cost?
- Where will the start-up money come from?
- If parents are lending the money to start the business, what is the repayment plan?
- How are you going to get customers?
- How much do you have to charge to cover expenses and make a profit?