The best investment you could do is get your kids earning money. Never pay an allowance, you’re going to have tasks that they’re going to do. There’s a base of home chores, just because they live there, they have to do them. But then they’re going to earn money on different tasks.
So, what could they do in the summer? Kids get bored. They get super bored, and you want them to have a lot of experiences. They might want to do something for a little while, and guess what, they’re going to learn, I really don’t like to do that. I want to do more that. So, unless you let them experiment on a lot of little cash machines, I call them, they really don’t know who they really want to be. So, don’t have them do anything for too long.
So, summer jobs, what can you do? Well, one of my favorite stories in Millionaire Maker was a dog walker, and the dog walker then actually grew into owning her own kennel, and then she brought on vets. She’s become a multi-multi-millionaire. So, from walking dogs to babysitting, that could be kind of year-round.
But if kids are super busy, and they’re student athletes, it makes it harder during the school year. So, great summer, pick up some babysitting jobs. By the way, call yourself a nanny, and you’ll make more money. So, there’s yard work. There is car detailing, car washing. Look around your neighborhood. Do your neighbors need things done?
Here’s the fun ones, you want to help re-clean out the garage. As a parent, what would you hire? Cleaning swimming pools. Landscaping is a big one, you can charge a lot more money. Gutter cleaning. There are tons of things. So, just think, what could you do that you’re going to hire? That instead of hiring somebody else, you hire your kids, and let them experiment being in business.
Technical stuff? They’re all on social media. They all know how to do technical stuff. So, they could build birthday cards. They could build anniversary cards, graduation cards, thank you cards, there’s tons of tasks. Just sit down with your kids, make a list of all the tasks they like to do, that they want to do, and start that 21st Century “Lemonade Stand” with them.
Now, in the winter, it gets a little different. I lived in Lake Tahoe, and we had a lot of snow. So, shoveling snow is a great one. De-icing is a great one. My son taught ski lessons for a long time. He was a nationally ranked skier.
What else could you do in the winter? Holiday things, from Christmas wrapping, to putting up and taking down Christmas trees and decorations. Hosting parties and catering.
So, what can your kids do, what can your family do? There’s a lot of things that people get hired to do that are short-term. I hate shopping. I hire somebody around October, November to do all my Christmas shopping. Sit down and put a task together, and you’re going to negotiate what that’s worth. So, your kids can actually make however much they want per month. They don’t have to have an allowance, which is like being an employee on a fixed income.
You want to show your kids proper credit card use. So, what does that mean between 12 and 18, or 14 and 18, whatever year you decide to do this? That means, parents, you or they’re going to get the credit card, and you’re either going to make them an authorized user or you’re going to get the credit card in your name, which then affects your credit. Which means you have to be very responsible and have a plan around this, that the kid can start using the credit card.
Is there a limit on the card? Maybe, maybe not. Their knowledge limit is two to three hundred dollars, and that depends on the month. There’re some months where they need to buy an extra thing at school, or they had a spur of the moment field trip, and they didn’t pay in advance.
And you want your kids to have access to capital, they don’t want to be that person who has no money, and so many institutes and places don’t take cash anymore. So, how are you going to send your kid around safely, getting things they might need? It could either be an authorized user. It can be yours. If it’s a corporate card, and you attach it, I’d be very careful. The other mistake I see a lot of parents doing is, you’re putting them under your company card.
So, when you do the limit every month, you’re going to have to set up a money day. When that statement comes, or you can print it online, you have to make them go through it. Because kids don’t see money, most adults don’t see money. Every month you’ve got to double check your auto pays, and have your child go through it. If they get to spend money, they should get receipts, and even though that’s old school, you got to get that behavior. They have to notice what they’re spending. They’re going to need to pay, and then, however you pay.
If you pay it automatically, you pay from your account, you pay it from your kid’s account, you have to get them in the rhythm. I can promise you, if you don’t, you’ll be sorry. So, if you’re not the responsible parent and teach them, from 12 to 18 or 14 to 18, whatever you decide, you’re sending them out into a very scary world to set their financial base, and typically, it’s a disaster.
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