Summer jobs are a great way to teach money management for kids. When kids earn their own money, save it for things they want, and then decide how to spend it, they learn the value of money. They also learn how to make choices on how and when it will be spent, which is the real learning experience.

But first, you’ll need help motivating your kids and teens to do more than just sit around and zone out during the summer months.

Understandably, your kids want some time to relax after being in the classroom for the past nine months. Who wouldn’t want to relax?

Now that school is out or about to be, your kids are probably dreaming of all the fun things they’ll do this summer. Depending on their age, thoughts probably include playing video games nonstop, watching TV or YouTube, hanging with friends, going to summer camps, swimming as much as possible, and so much more.

While many parents are lining up countless things for their kids to do during the summer, one of the most important things we can do as parents is help our kids create not only a fun summer but also one where they learn money management for kids and earn the money they’ll manage. And even lean in to that inevitable bout of boredom.

Did you know kids begin learning money habits well before they start kindergarten? That means they are ready to learn money management skills and start earning their own money by the time they are seven or eight.

So while we all want to give our kids more than we had at their age, we need to resist the temptation. Provide them with what they need, and starting as early as seven or eight, have your kids pay for things they want. Read the Raising Families article about needs vs. wants for more on this.

We’re not bad parents when we buy things for our kids…it comes from a good and generous heart.

However, research shows that the abundance we can sometimes buy for our kids beyond what they need can actually damage our kids in the long run by causing them to become entitled.

One of the best approaches we can use is to help our kids earn their own money and then be responsible for making the decisions on how to spend it.

In order to spend it, they need to carry it, keep track of it, and then dole it out when they want to buy something.

You might be thinking, a seven-year-old can do that? The simple answer is YES. Will they make mistakes, lose it, or misspend it? Of course they will. And they will learn from making those mistakes.

Learning how to manage the precious resource of money will make a huge difference in their lives. While not always easy to make the transition from you paying for everything to your kids paying for what they want, the sooner you start, the better off your kids will be as they get older. 

For all of this to work, you need to have a discussion with your kids about your expectations around money.

Here are some talking points you can use to get the conversation going:

• What are the differences between wants and needs?
• Would your kids like to have more control over what they’re allowed to buy?
• Would your kids be willing to work to gain more control?
• What would they like to do to start earning money?
• What things will you pay for? (Most likely the things they need.)
• What will your kids pay for? (Most likely a lot of the things they want outside of their needs.)
• What happens if they want something and don’t have enough money? Will you make up the difference as a loan and have them pay it off over time or will they have to wait until they have the full amount or will it vary with each situation? For an older child, this can lead to a discussion about credit cards and the benefits they provide as well as the dangers.

Parents have the opportunity to steer their children’s behavior by setting the expectation that they can earn money and spend it how they want.

While there is a great debate about whether or not to pay kids for doing chores, our view is that helping kids learn the value of money and what it takes to earn what they want is becoming far more important.

There are a few ideas below for your kids to earn what they want by doing things around the house beyond their normal chores.

Younger kids starting at six- and seven-year-olds can vacuum, dust, do laundry, do yard work, and help wash the car. Will they do it all correctly the first time? No, but they will learn. And as they learn, they earn!

For older kids, there are more options beyond household tasks. They can take a babysitting class so they can start babysitting. They can also let friends know they are willing to pet sit if they need a pet sitter when they go out of town. If they are good students, they can look into tutoring as well.