kids earning money

Kidpreneurs can learn far more than how to make money. When children start small enterprises, they can also learn generosity, responsibility, confidence, persistence and the importance of using money wisely.

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This article began with a conversation I had with a dear friend. Her children were inspired by our Enterprise for Kids stories, but she raised a thoughtful question: should children be encouraged to make money for themselves, or should enterprise always be connected to giving?

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Kidpreneurs: Can Kids Make Money and Still Be Charitable?

I was talking with a dear friend and asked what she thought of our Enterprise for Kids blog. She said it was very well done and that her kids were inspired by our children’s enterprise experiences.

Her children had read every blog post and watched every video. Then her nine-year-old daughter sat down and planned an enterprise of her own, following many of the lessons we had shared on the blog.

Wow!

That is exactly the kind of inspiration we hoped to encourage, especially with kids. We wanted children to see other children having ideas, taking action, learning from real experiences and discovering that they could create something of their own.

What Happened Next Surprised Me

My friend explained that she liked the idea of enterprise, but she was not comfortable with children having an enterprise where they make money for themselves.

I was a little taken aback when she said this. I had never really thought that some people might believe children should not make money from their own efforts unless it was all being given away.

I was also grateful that my friend was honest enough to share her belief. It helped me better understand her thinking, but it also helped me clarify my own.

Firstly, there is no right or wrong in what people believe or do. Everyone is entitled to their views, and I respect my friend’s view.

After this enlightening conversation, I came to realise how far our own mindset around money had changed since we started searching for economic and personal freedom. It also made me think deeply about something I now call the entrepreneur’s conscience.

Kidpreneurs Need a Healthy Money Mindset

If children are going to become confident, capable and generous, they need a healthy money mindset. That means they need to learn that money is not bad, enterprise is not selfish, and making money does not automatically make someone greedy.

Money is a tool. Like any tool, it can be used well or poorly.

A child who learns to earn money can also learn to save, give, invest, spend wisely and support causes they care about. In fact, earning their own money may give children a stronger understanding of generosity because they know the effort that went into creating it.

That is an important lesson for Kidpreneurs.

Wealthy entrepreneurs often think differently about money. Generally, I would also say that many are not selfish. Of course, some wealthy people are selfish, just as some people without wealth are selfish too.

But many successful entrepreneurial people have persisted with their goals, taken risks, created value, employed people and then used their wealth to support causes they believe in.

It is much easier to be charitable when you have resources. Many people who are struggling to make ends meet simply do not have the time, energy or money to make larger contributions to the world, even if they have a generous heart.

Entrepreneurs and Charitable Giving

Warren Buffett is one example of an entrepreneur and investor who has made philanthropy a major part of his life. On his Giving Pledge page, he states that more than 99% of his wealth will go to philanthropy during his lifetime or at death.

Sir John Templeton is another example. He created the John Templeton Foundation, which supports research and conversations around big questions connected to science, philosophy, theology, character, freedom and human purpose.

These examples matter because they challenge the idea that enterprise and generosity are opposites.

In many cases, enterprise can actually make generosity possible on a much larger scale.

Can Making Money Help Children Become More Generous?

Only last week I was speaking with a new entrepreneur friend who lives in Perth. He had created tremendous wealth developing property, mostly in the Western Australian mining town of Port Hedland.

He explained that he no longer needed to work in the same way and could now channel his energy into his passion. He was planning to take his young family to America, where he had enrolled in a Theology university course. From there, he hoped to do mission work in Africa.

Being a successful entrepreneur was allowing him to follow his charitable dream.

That really stayed with me.

If we teach children that making money is selfish, we may unintentionally close their minds to the possibility that wealth can be used to serve, support, create and give.

However, if we teach Kidpreneurs that enterprise comes with responsibility, we can help them develop both capability and conscience.

The Entrepreneur’s Conscience

It could be argued that entrepreneurs may have more freedom, more time, less stress, better health, more travel and more opportunities for their families than those of us tied tightly to a job and debt.

That is not always true, of course. Many entrepreneurs work extremely hard, especially in the early stages.

But successful enterprise can create options. It can create space. It can create time. It can create resources. And when people have more options, they are often in a better position to make a difference.

So, do successful entrepreneurs have an entrepreneur’s conscience?

Some do, and some do not. But the point for children is this: conscience can be taught alongside enterprise.

We can teach kids how to make money and how to think about others. Those two lessons belong together.

Teaching Kidpreneurs to Give

I would like to thank my friend for helping me consider my views on the entrepreneur’s conscience. I certainly value the importance of teaching kids enterprise, and I also strongly support the idea that enterprising kids should be taught to be charitable.

Our view is that children need to walk before they can run.

For us, it is okay for our kids to begin with a “selfish” goal, because that is often what motivates them at the time to take action and learn the entrepreneurial skills necessary to succeed.

A young child may first want to make money for a toy, a game, a bike, a computer or something else that excites them. That motivation gets them moving.

Then, once they begin learning the skill of earning money, we can help them think about where some of that money could go.

That is exactly the process we taught Chayse, who was four, and Kit, who was seven, when they reset their goals. Their enterprise journey became not only about making money, but also about learning to give.

A Simple Giving Plan for Kidpreneurs

One practical way to teach kids generosity is to create a simple money plan. This does not need to be complicated.

Children can divide their money into a few clear purposes:

• Spend: money for something they want now.
• Save: money for a bigger goal.
• Grow: money for an asset, tool or future enterprise idea.
• Give: money for charity, tithing, community support or someone in need.

This kind of plan teaches children that money has purpose. It is not just something to grab, spend or hoard.

It can be used to enjoy life, build future options and help others.

For Australian families, it can also be useful to talk to children about choosing causes carefully. The Australian Charities and Not-for-profits Commission provides a public charity register families can use when checking registered charities.

The More Values-Based Kidpreneurs We Create, the Better

The more values-based Kidpreneurs we create, the better our world can become.

As we revisit our own children’s entrepreneurial journeys on this blog, we will continue to share the lessons around their entrepreneur’s consciences and how we are teaching them to be charitable.

We do not want children to grow up thinking money is bad. We also do not want them to grow up thinking money is everything.

We want them to understand that enterprise can build confidence, creativity, responsibility and choice. We also want them to understand that with those opportunities comes the chance to contribute.

Key Takeaway: Kidpreneurs Can Earn and Give

Where to Next?

• Read how Kit and Chayse built self efficacy through enterprise and giving
• Read our money lesson on planning, saving and buying assets
• Read about teaching kids assets and liabilities
• Explore more Money Lessons for Kids
• Visit Raise Entrepreneurial Kids

What do you think? Should children be encouraged to make money for themselves, give some away, or both? We would love to hear your thoughts in the comments.