Three Most Common Ways for Kids to Make Money

As all of us who have bills and financial obligations know, there are two sides to the money equation: income and outgo. It seems like a simple fact, but kids have to realize what is involved in getting money before they can understand the value of budgeting properly and saving their money! Here are three of the most common ways that kids can make money and become entrepreneurs, and some points for parents to remember about each of these.

Kids' money making idea #1: Lemonade stand

It is the oldest trick in the book, and most adults realize that the customers aren’t buying lemonade because they like the taste; they're buying because they want to encourage kids in their first money-making ventures. The kids think they're making money from lemonade -- you know they're making it through cuteness!

Positive: Lemonade stands can be set up right in front of your house, so are a relatively safe way to make money. Lemons or lemonade mix are easily accessible, and kids can be wholly responsible for creating their own product.

Make sure: You teach them about food safety before you let them loose on the public. Citric acid may be a good antibacterial, but grubby hands can contaminate cups and make people sick. The money kids make from a lemonade stand may not be as high in some areas, also -- warn them about disappointment.

Kids' money making idea #2: Car washing

Your kids can either wash your own car for money, or knock on your neighbor's door and offer their services in order to teach your kids about money.

Positive: A nice healthy outdoor activity, and a way to right the karmic balance considering the mess they usually make!

Make sure: They are old enough to be safe. Tell them not to go into anybody's house, even if they seem nice. Help your kids make money fairly, also -- ensure they know enough about quality management (don’t leave streaks or water spots, etc.) to do a good job for the money they charge. Explain how this is in their business's interests.

Kids' money making idea #3: Babysitting

Generally one for older kids, babysitting is an old standby. Your kids can make money babysitting their younger brothers and sisters as well -- better than letting a stranger in the house!

Positives: Offers a very necessary service. Most adults cannot afford adult wages for babysitting, so there is a mutual need for kids to make money form babysitting. Your kids could also be parent's helpers in houses before they are old enough to do babysitting, playing with other children to occupy them while parents get work done.

Make sure: They are old enough and responsible enough to do this properly! Other people's kids are generally pretty important to them, as is their house. Your kids making money is less important than safety or people and property.