Making and managing money can be challenging even when you’re an adult. So why do so many of us expect our children to suddenly gain the financial savvy of a banker out of thin air? And how do you make money as a kid? Here are some tips on teaching your children how to take pride in earning their own money.

In the end, the difference between success and failure in the economics lies somewhere in the middle between letting money run our whole lives, and going forth with diligence and letting ourselves be its controllers. After all – the idea of currency is a human-made thing. And we don’t just have to use it. We have to own it. Literally and not.

But what does this have to do with kids? Of course: this is an article about how to make money as a kid!

The Importance of Money in Kids’ Lives

Well, if you’re a financially responsible parent, then you will realize soon enough that the answer is: everything. Money defines the way we raise our child. Money makes us prioritize certain things in their education – be they abstracts or concretes. Money makes us value the world a bit more. It gives us perspective. Where we have a reason to do something, it gives us the power to make that wish come true. And that’s true for your kid as well.

Maybe sending your kid to Space Camp for a week is equally expensive as buying him or her an iMac. Ah, but which one is the wiser decision in the long run? Imagination is key. From the way we spend the bills we make, to the decisions we take about our kid’s present and future. And then to how we talk to our kids about money. How we expose them to the intricacies of spending. How we make them, in the end, feel secure.

Economics for kids is a downplayed version of the economy an adult has to deal with. So – as a kid – there are a few things you need to go over before you start making money. As a parent, it’s your job to explain these things to your kid. For both the kid and you, the parent’s sake, we’ve made a general list of all of these topics. Because making money as a kid also means learning to manage it.

Basic Money Advice for Kids

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Cats don’t know how to money. You shouldn’t give them access to your bank account.

Before a kid begins making money on his own, a kid must understand money. But, to understand money, a kid must first be explained the concept of money. And as you may know – this is a very complicated task. Mostly because the idea that everything has a price is not that easily understood. Parents know in the top three complicated questions that kids ask their parents, this question pops up quite a lot: “What is money.”

What Is Money?

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A man could go up to heaven and trick God with this question. Nobody knows the answer – strangely enough. There is no precise definition of this. The dictionary says it’s something that can be used to pay for different things (goods) and for the work that people do (pay or salary). That’s a basic definition, but it doesn’t encompass all the meanings associated with currency.

What about the people who don’t work but have money? How do you explain those to kids? And of course, many other ambiguous meanings in the world of finances could very well be part of the answer to this question. One can start by answering questions like “what is money made out of?” and then go on from that.

One of the biggest dilemmas in the mind of a kid could well be if the physical bill costs the same to make as the value written on it. Again – a big problem that needs explaining. Obviously, from an economic standpoint, it would be impractical. We tackle this question further here.

Teaching Kids about Money

After you’ve gotten the question of what exactly money is out of the way, it’s time to influence your kids’ behavior around money through positive reinforcement. Never argue about money in front of your kids. Never complain about money problems in front of your kids. And, most importantly, don’t show fear and despair in the case of financial shortages.

Ride the tide! Show your kids a responsible spending attitude and they will mimic that attitude. Adversely, if your spending habits are chaotic, and if your attitude towards money is inconsistent, your kid may receive mixed messages: why is mom spending so much if yesterday she was making economies?

These are the types of things that you should assume your kid is wondering. Explain them to your kids without them asking you too. It will drive out any worry from their minds. Remember, though, that this problem is far more complicated than this. We elaborate on its intricacies here.

Teaching Kids the Meaning of Success

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There’s an odd concept. Success. It’s relative; there’s even an expression saying success is relative. So – what to do to make your kids understand it? Give yourself as an example? As wonderful as that may sound for your ego – maybe it’s not such a good idea. Remember that besides practical advice, your kid also needs a productive education, good taste, and modesty.

Teach your kid moderation in all things, but emphasize that success isn’t only financial. Measure success in dreams and accomplishments. A perfect average between what-you-want, what-you-have-accomplished, and what-you-will-accomplish. Make your kid understand these terms.

Is your child having trouble at school? Make the kids set a goal. Goals help keep your mind orderly – and your kids’ as well. An accomplishment implies that the goal set has been achieved. It’s the simplest way of defining success in a way your kid will understand it. Still, if you want more advice on this, we’ve got a more detailed guide here.

Allowance for Kids

One of the most critical aspects of a kid’s life: the allowance. At first, he’ll take it as something given, but in time, he’ll learn to deal with money more responsibly. The kid will then start keeping safe his allowance, to buy more expensive things that he wants.

After all, getting what you want is more often than not a simple matter of economy. Saving money is more than a great way to earn enough money for something, it’s also a positive and healthy behavior for someone so young. If the kid fails – then he will understand the dangers of not staying true to your goals. If the kid reaches his goal – then he will realize the importance of saving.

If your kid is a good saver, up his allowance a bit – it will boost his self-confidence. After you’ve given him a bonus, watch to see where those dollars go. It provides important insight into your kid’s psyche. If the extra money spends quickly – the kid may be inclined towards making savings, but also enjoying a few rewards. If the extra money is part of the deposit, your kid is either determined or just likes saving a lot of money. Both behaviors are equally good. More on this over here.

Advanced Money Advice for Kids


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After the basics have been covered and the information there well cemented in your kids’ minds, it’s time for more advanced tips for kids as to spending money in a wise manner. And maybe even on how to make money. For of course, by now, your kid should already be a connoisseur of fine financial matters. And what better way to further his knowledge of financial matters than by teaching him a bit about the economy and how the system works?

Financial Responsibility and Saving for your Kid

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But even before your kid starts being his little entrepreneur, he will have to learn from his parents about financial responsibility. And what better way to make your kid better think about money then by starting to save money for his future?

We on SuperKidz have already tackled the basic types of college saving plans that a parent could apply for early on in the kid’s life. When your kid is old enough to understand, however, you may want to divulge everything about your secret savings. This will make the kid aware of the sacrifices one has to make in order to get what he wants.

A proper education is something important. One of the most important things in a kid’s life, some say. Make sure that your kid gets what he deserves. After all – what good is financial prowess in his early life, if he cannot go on to do great things with it?

Economics Advice for Kids

The issue of how to make money as a kid is starting to take shape. But before your kid literally runs the house, you must make sure that he knows exactly how the economy works. To make him understand this process, there are a few tactics one can adopt.

I would personally favor the whole story-based advice, but there are many other methods by which you can do this. If you opt for the story – you can detail the situation of a shopkeeper. Make your kid understand how businesses run. Try to explain taxes. Try to explain income. Try to explain the things that a successful entrepreneur needs to do to enjoy success in his business (remember the definition of success?).

We’ve got an ever more detailed rundown of the economy for kids right here.

Teaching Kids the Rule of 72

One of the most important things that you can teach your kids. However, sometimes, it’s sadly overlooked. Imagine the thrill of mathematicians and investors worldwide when they found out the magic formula by which they could find out the years it would take for their money to grow to colossal proportions. And it’s such a simple formula! Just divide 72 by the number of the interest rate. That’s all you have to do.

And it’s such a simple rule. Teaching your kids about it should be a piece of cake. And imagine the spark of light in your kid’s eyes when he realizes the amount of money he could be earning were they to invest the little money he earns early on. This could even be a nice continuation to your kid’s money-saving passion,

Still, the rule of 72 has many complicated aspects, despite its initial rudimentary form. To find out more about how you can teach this trick to your kid, we have a whole page on the subject.

Practical Money Advice for Kids

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Smart kids shoot for their goals from a very early age!

We’ve covered the basics. So have the advanced tips for kids to start their own business. Now it’s time for the less-complicated, more-straightforward part. Bear in mind that this is also the most difficult part of how to make money as a kid. After all – few can successfully transpose theory into practice. If you have trouble finding words as to how to motivate your kids, here’s one option:

Presenting the Best Teen Entrepreneurs

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Leanna Archer

Don’t forget that if you want your kid to make his money-making ventures into an enterprise, a great deal of motivation will be necessary. To this extent, present him with the most exceptional examples of teen entrepreneurs the world has ever seen.

Make sure that the kid firmly understands what an enterprise is, what the CEO is, and how an enterprise runs. Then, after you’ve made a complete rundown of the above pieces of advice on how to make money fast as a kid, give him these examples.

Justin Bieber may not be everyone’s favorite artist, but he sure did make a lot of money. And with a bit of advice from his friends, of course, he converted that fame and money into successful business ventures. But making pop music isn’t the only way! Leanna Archer, Nick D’Aloisio, Anshul Samar, and many others are prime examples of what young-age entrepreneurship can bring you. Here’s our article detailing their stories of success.

Business Ideas for Kids

So: your kid got his answer to the question of “what is money”; he also got his vocabulary straight on the definitions of success, economy, enterprise, the rule of 72, as well as financial success. That’s great! But, probably, now your child is left wondering: “what good is this advice if I don’t know how to apply it correctly?” – and quite rightly so. Your kid has every reason to think about this.

But, on the other hand, he shouldn’t be worrying about this. At all. There are so many business ideas out there that cool, smart, and bold kids could take up, I don’t even know where to begin. From finding a way to market your grandmother’s homemade hair products (likewise Leanna Archer did) to franchising your lemonade stand concept – there are many ideas out there for the taking.

But, for those of you who are less imaginative, or would like a clear list of promising things that could work, we’ve put together one such list over here. If you’re too lazy, however, to go through that whole list, and would just like to peak your kid’s interest, here are the top 3 business ideas for kids we could find.

Want an answer to how to make a lot of money as a kid? Try this:

Paper Routes

Paper routes are the go-to business for all smart pre-teens and teens before they start their businesses. The famous example here is obviously Warren Buffett – the man who managed to raise so much cash from delivering newspapers every morning, that he eventually bought a piece of land totaling 40 acres. He subsequently rented that land to some farmers. If that’s not smart thinking, I don’t know what is. And to think that he did all this by the time he was 14!

Blogs & Social Media

Kids are knowledgeable about computers. If he or she is old enough to write on the computer, then he or she is old enough to make money. Kids usually have all sorts of wild ideas when it comes to writing. It may just be that some of those ideas are well-put-together. Keeping a blog, an Instagram account, or a YouTube vlog is not just about good content, however. Make sure that your kid knows how to monetize that content.

There are quite a few cases of teenagers gone viral on YouTube. Or of Instagram accounts with hundreds of thousands of followers. Do you think that those people get nothing back from what they’re doing? Think again!

Accessories, Accessories, and more Accessories

I know that you’ve probably heard this a thousand times. However, it’s worth pointing out that making handmade accessories can turn in a great profit. And if  your child likes to make something neat, then by all means – let them do it.

There are a lot of things that kids can manufacture. Your daughter can make bracelets, necklaces, or earrings. Your son can make more boy-ish stuff: if you live in a forested area, maybe he can make bows and arrows for the neighborhood boys. This is not to say that the roles can be reversed! After all, we are living in the 21st century.

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Warren Buffett: Hard to imagine at what an early age this man began his rise to success.


Other Fun Money Advice for Kids

There are more ways to get your kids interested in the financial times (not the newspaper). And some of these are far more fun than making them understand the implications of the national economy. Or teaching them the rule of 72. We’ve got some ideas:

Money Games for Kids

Why bother giving your kid money advice and tutoring when you can just get an app for that? Well, of course, there’s an app for that! There’s an app for everything you could imagine these days. And If you don’t find one, be sure that it’s in the making.

But I’m not talking only about digital games! Although the good guys from EA Games have made digital versions of it, Monopoly is an instant classic for kids above the age of 8. It’s a pretty easy game, after you get the hang of it, so it’s probably also playable by bright 7-year-olds. I would argue that Monopoly is THE best game that kids can use to up their entrepreneurial prowess. So what are you waiting for?

More money games for kids over here.

Stock Market Games for Kids

On to more complicated realms, stock market games are, indeed, far more difficult than your traditional money games. If your kid has understood the rule of 72, then he probably is ready for this challenge. If he hasn’t, then go on playing the easier games until they reach this level.

Stick market games, on the other hand, can be addictive. If your kid becomes obsessed with the game, you should step in and take charge of the situation. One cool way you can do this is by showing the kid a real stock market. Make him excited and maybe he/she will start saving real money for an investment.

Find out more about stock market games for kids – we have them on this page.

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These may look cute, but they may end up being too cute.


Making Money as a Kid: Conclusion

It’s the end of this article. You should, by now, know exactly what you need to do. We’ve answered questions related to how to make money as a kid, how to make money fast as a kid, how to make money online, and even how to make money at home.

BONUS TIP: Get Your Kid a Cool Piggy Bank

However, we’ve one last tip: gift your kid a piggy bank. As soon as he or she is old enough to start saving from his weekly allowance, give the kid a piggy bank. But hold on! Not just any piggy banks for kids are good. If you’re serious about money, I don’t suggest giving the kid an actual pig piggy bank. Go for something that’s a mix of seriousness and playfulness. You don’t want your kid feeling ashamed once he grows a bit older.

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