One of the most common ways to teach your kids about making money is the old-fashioned Lemonade or Kool-Aid stand. It goes way beyond making a little spending money; it’s a great lesson in entrepreneurialism.
When my kids organized their Kool-Aid stand, they learned a few valuable business lessons: First, they learned that it was best to operate between the hours of 5:00 and 6:00 p.m. when people were arriving home from work. The stand was pretty slow before that, so they quickly determined it was a waste of their time.
Secondly, when they ran out of Kool-Aid and wanted to get more with their earnings, they zeroed in on the sale items on the shelf because it would extend their budget of “working capital”. They also learned that if they used smaller cups, they could sell more Kool-Aid from each pitcher. My son even discovered they made the most money when they priced the Kool-Aid low, but put out a “tip jar” for donations. Clever marketing tactic, I’d say!
As a mom, it’s great to see their minds at work learning valuable lessons about money that will serve them well as they grow up.