Earning Money

Doing some quick sums I discovered that if you saved roughly $480 a month from when your child is 5 until they are 20 with a 2% interest rate, they'll have $100,000.  This changes slightly to around $440 a month at 3% interest.  Given a low interest rate environment, getting kids to save this much money each month might be difficult.  But if they do this it is a nice deposit for a property or a good start for tertiary education.

I guess as parents it is something to keep in mind.  If you have good savings habits, you can contribute to this.  If you'd like them to save themselves then they need to start thinking of ways to earn money.

Apart from the usual getting a job (if they are old enough) or savings their allowance (that is a lot of chores), teaching your kids other ways of earning money is always good practice.  

These could include:
- selling unwanted toys, clothes or games
- upcycling - decorating or renovating toy cars, furniture or the like to sell at a profit. (the Realistic Mama Blog has some good examples)
- make things - artwork, wooden goods, trading card holders - things that they can sell to their friends and family or put an ad online.
- lastly, teach them how to be a little entreprenuerial.  Look at ways they can think of running a small business.  Like the lemonade stand of old, think of ways they can profit from selling goods or something they are good at.  Some examples I've heard of lately is charging girls to do braids or super hairstyles if you are good at this.  Or another family bought a second-hand trailer and his kids are going to hire it out, managing the bookings, payments and cleaning.