At some point, a dad who has a goal of being the best dad he can be realizes that neither great dads nor great kids happen by accident. To raise your kids to be successful in life, you must be intentional. This includes all areas, especially their financial life.
“The beginning of your (kids’) financial life was either intentional or accidental.”
The quote above is from an article written by Peter Dunn—a financial planner, radio host, and newspaper columnist. Just like every aspect of our kids’ lives, we must be intentional in training them to be financially stable.
We know teaching kids about money is important. One practical way we’ve helped our kids be intentional in the area of finances is by setting up and running a business each year. The business is a lemonade stand. It’s not a huge money maker by any means, but the benefits they receive from this experience each year are way more valuable. Here are 4 Tangible Benefits of Kid Entrepreneurship.
1. Learning the importance of planning.
Each year, we sit down with our kids and create a business plan. This plan guides them and answers many of their questions and challenges before they are faced with them. It even reduces arguments of where/how they’ll split and spend their profits.
2. Learning that money doesn’t grow on trees.
As they are purchasing supplies, they can see how much simple things like Styrofoam cups and napkins cost. It helps put a perspective on the money they spend on a regular basis. Just like their lemonade budget isn’t limitless, they realize our family budget isn’t either.
3. Learning the value of hard work.
Their lemonade stand is set up for one day for about 4-6 hours. They have to build a stand (that can be transported in our car), make lemonade, create marketing materials, dispose of garbage, and at the end of the day they have to disassemble it all and put it back in storage (our garage). It’s not easy. They work for it and appreciate the money they earn from their work.
4. Learning the value of working together.
Our daughter spearheads most of it all, but our oldest son helps and even our youngest son too (he’s the best sales person you can have…cuteness factor!). Although our daughter would like to do it all, she knows she couldn’t take customer orders, fill lemonade, count money, make change, and make sales all by herself. And our sons realized they couldn’t do it all either. A team is needed, and they value it.
The benefits listed will impact their immediate and distant futures. Whether a profit is made or not, the experience is a valuable one.
Huddle Up Question
Huddle up with your kids tonight and ask: “Do you know what a budget or spending plan is?”