With temperatures in the 100’s in Northern California, we can definitely say that summer has arrived. And with summer, I think of lemonade stands and ice cream trucks. Lemonade stands are a great way to allow our kids to be entrepreneurial and make a little money in the summer. It’s also a great opportunity for parents to educate our children on how to run a business, and save some of the profits. This is the time to talk to your kids about money. Recent research by T. Rowe Price shows that two-thirds of parents are reluctant to talk about money with their kids, and many talk about it only when their kids ask about it. It’s important to establish a running dialogue about money throughout their lives. As Jean Chatzky recommends in her book, “Women with Money”, these are the building blocks of financial independence we should be teaching our kids:
- Teach them the difference between wants and needs.
- Teach them to choose.
- Teach them to tell themselves no.
- Teach them to work toward a goal.
- Teach them how to wait.
- Teach them it’s not the end of the world if they fail. (Not every lemonade stand will be profitable!)
Enjoy your summer and encourage your children in their entrepreneurial endeavors!